SEATTLE (Oil Monster): Kinder Morgan, Inc. (KMI) announced financial projections for the upcoming year. According to Kim Dang, the company's CEO, the company's strong growth initiatives across all business segments—particularly in Natural Gas Pipelines and Energy Transition Ventures—should help achieve the projected 4% increase in adjusted EBITDA and 8% increase in adjusted earnings per share (EPS) in 2025.
The company anticipates a net debt-to-adjusted EBITDA ratio of 3.8 times by the end of 2025. In 2025, it aims to produce adjusted EBITDA of $8.3 billion and adjusted EPS of $1.27. It intends to spend $2.3 billion on discretionary capital expenditures, which will include joint venture contributions and investments in expansion initiatives. In 2025, the business also projects an annualized dividend of $1.17, which would provide its stockholders with even more value.
The aforementioned estimates are predicated on the assumption that Henry Hub natural gas and West Texas Intermediate (WTI) crude oil have average yearly prices of $3.00 per MMBtu and $68 per barrel, respectively.
Strong natural gas market fundamentals are anticipated to propel development on current natural gas transportation and storage assets, according to Tom Martin, President of KMI. It also anticipates opening doors for growth.