The business behind the dividend
| Measure | KMI | Median | Formula |
|---|---|---|---|
| Return on equity | 9.8% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 7.5% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $2.48bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $2.89bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 31.1% | 15.0% | Operating income ÷ revenue |
| Net margin | 20.1% | 10.2% | Net income ÷ revenue |
| Debt to equity | 1.03x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 2.61x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 0.64x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.94x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Long-term debt to working capital — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 9.8% | 8.6% | 7.9% | 8.3% | 5.8% | 0.4% | 6.5% | 4.8% | 0.5% | 2.1% | 5.8% |
| Return on capital employed | 7.5% | 7.0% | 6.8% | 6.5% | 4.5% | 2.4% | 7.2% | 5.3% | 4.9% | 4.8% | 5.3% |
| Operating margin | 31.1% | 32.5% | 31.2% | 22.4% | 18.1% | 15.5% | 40.3% | 28.5% | 25.7% | 27.1% | 27.1% |
| Net margin | 20.1% | 19.4% | 17.5% | 14.1% | 11.0% | 1.2% | 18.1% | 12.1% | 1.3% | 5.4% | 12.1% |
| Debt to equity | 1.03x | 1.04x | 1.06x | 1.03x | 1.08x | 1.10x | 1.02x | 1.11x | 1.13x | 1.16x | 1.06x |
| Current ratio | 0.64x | 0.49x | 0.35x | 0.55x | 0.66x | 0.63x | 0.63x | 0.76x | 0.44x | 0.55x | 0.55x |
| Cash conversion | 1.94x | 2.16x | 2.71x | 1.95x | 3.20x | 38.24x | 2.17x | 3.13x | 25.14x | 6.72x | 2.71x |
How it compares in utilities
Among the 57 utilities companies here measured on GAAP earnings, Kinder Morgan pays out less than 7 of them. The median for that group is 61.5%, against this company’s 85.2%.
Closest on GAAP earnings
- Dominion Energy (D) 77.4%
- Avista (AVA) 82.4%
- NorthWestern Energy Group (NWE) 89.8%
- Williams Companies (WMB) 93.5%
Same sector and same denominator, so the figures are comparable. All 58 in utilities →