Kinder Morgan (KMI) and Sunoco LP (SUN) are among the latest midstream companies to provide financial guidance for 2025.
Outlooks for EBITDA and dividend growth provide helpful visibility for investors. Midstream companies are uniquely positioned to provide guidance, due to the segment’s fee-based businesses, cash flow stability, and low sensitivity to commodity prices. Furthermore, midstream’s ability to generate consistent EBITDA growth regardless of oil and natural gas prices is a distinctive advantage relative to the rest of the energy space.
Sunoco is a holding in the Alerian MLP ETF (AMLP ), which provides exposure to energy infrastructure MLPs that earn most of their cash flow from midstream activities.
Sunoco on Monday announced its financial outlook for 2025. The company expects adjusted EBITDA of $1.925 billion at the midpoint, representing a 25% increase from 2024. The increase reflects in part a full-year of contributions from NuStar Energy, which was acquired in May 2024.
Additionally, Sunoco will transition to quarterly distribution increases in January, targeting annual growth of roughly 5%. Last year, Sunoco raised its distribution for the first time since 2016.
Kinder Morgan is a top five holding in the Alerian Energy Infrastructure ETF (ENFR ), a composite of North American midstream energy infrastructure companies.
Kinder Morgan on Monday announced its 2025 financial expectations. The company expects 2025 adjusted EBITDA of $8.3 billion, representing a 4% increase compared to the 2024 forecast of $8 billion.
The company also announced an annualized dividend of $1.17 per share in 2025, representing a 1.7% increase over 2024. This marks Kinder Morgan’s eighth consecutive annual dividend increase.
Other Midstream Names Offer 2025 Guidance
Two other names in ENFR have recently provided 2025 financial guidance.
Enbridge (ENB) expects 2025 adjusted EBITDA of $19.4 billion to $20 billion. The company reaffirmed its 2023 to 2026 outlook of 7–9% EBITDA growth. Enbridge also announced its quarterly common share dividend for 2025 will be increased by 3%.
TC Energy Corporation (TRP) expects 2025 comparable EBITDA to be $10.7 to $10.9 billion, equating to growth of 7–9% relative to the midpoint of 2024 guidance.
The company has guided to a 5–7% compound annual growth rate for comparable EBITDA from 2024 to 2027. It also reaffirmed long-term sustainable dividend growth of 3–5%.
See more: 2 Midstream Names Provide 2025 Guidance on Dividends, EBITDA
For more news, information, and analysis, visit the Energy Infrastructure Channel.
vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for AMLP and ENFR, for which it receives an index licensing fee. However, AMLP and ENFR are not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of AMLP and ENFR.
