Kinder Morgan, Inc. (KMI) Earnings

Kinder Morgan, Inc.

KMI · NYSE

Symbol: KMI
Type: Stock
Sector: Utilities
Industry: Natural Gas Distribution
Country: North America
Exchange: NYSE

Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy infrastructure companies in North America. Access to reliable, affordable energy is a critical component for improving lives around the world. We are committed to providing energy transportation and storage services in a safe, efficient, and environmentally responsible manner for the benefit of the people, communities, and businesses we serve. We own an interest in or operate approximately 78,000 miles of pipelines, 136 terminals, more than 700 Bcf of working natural gas storage capacity, and have renewable natural gas generation capacity of approximately 6.9 Bcf per year of gross production. Our pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO2, renewable fuels and other products, and our terminals store and handle various commodities including gasoline, diesel fuel, jet fuel, chemicals, metals, petroleum coke, and ethanol and other renewable fuels and feedstocks.

Key Issues

Bullish view

Fiscal 2025 revenue rose to $15.2 billion from $13.5 billion, while net income increased to $3.1 billion from $2.6 billion, supporting the case that Kinder Morgan is converting scale and infrastructure demand into growth.

Bearish view

The supplied evidence gives only annual historical results and no 2026 outlook, segment trends or new contracts, so it does not establish that the recent growth rate can continue.

Analyst Consensus

See all

Hold

19 analysts

$33

Current

—

Low

$38

Average

—

High

Average target implies +15.85% versus the current price.

Earnings History

BeatMissNo estimate

Dec 2026upcoming

Next quarter

Expected to report Jan 20, 2027 — estimated from last year’s reporting date.

Consensus is $0.38 EPS for Dec 2026 across 8 estimates, ranging $0.30 to $0.43.

KMI Sep 2026

Reported Oct 21, 2026 · after the close

: 6.06%
: -0.74%

: $0.33
: $0.35
: —
: $4.18B

Reported results

: $4.18B; from $3.72B
: $1.16B; from $1.06B
: 27.72%; from 28.55%
: $764.00M; from $628.00M
: $0.34; from $0.28

Highlights

Adjusted EPS beat: Kinder Morgan reported adjusted EPS of $0.35 versus consensus of $0.33, a 6.1% surprise; GAAP diluted EPS was $0.34.
Record third-quarter earnings: Net income attributable to KMI was $764 million, up 22% year over year, while adjusted EBITDA rose 9% to $2.18 billion and adjusted EPS increased 21%.
Expansion backlog surged: The project backlog reached $14.4 billion, up $4.7 billion from Q2 after $5.4 billion of additions and $700 million placed in service; natural gas projects account for $13.2 billion.
Two major gas projects advanced: Southeast Connector is designed for up to 2.6 Bcf/d, with KMI’s share of cost estimated at $3.1 billion; Permian Link is designed for 2.8 Bcf/d, with KMI’s share about $1.6 billion.
Growth was broad-based: Adjusted segment EBDA increased year over year in all four businesses; natural gas transport volumes rose 3% and gathering volumes 14%.
2026 outlook is above budget: KMI expects adjusted EBITDA to exceed budget by more than 6% and adjusted EPS by more than 13%; management cited more than $515 million of EBITDA outperformance.
Leverage and dividend: Net debt-to-adjusted EBITDA was 3.5x at quarter-end, versus 3.8x at year-end 2025; the quarterly dividend was raised 2% to $0.2975 per share.

Analysis

Kinder Morgan’s third quarter delivered record results, a modest beat, and a substantial increase in its contracted growth pipeline. Adjusted EPS of $0.35 exceeded the supplied $0.33 consensus by 6.1%; GAAP diluted EPS was $0.34. Revenue was $4.53 billion, up 9% from $4.15 billion a year earlier, while operating income rose 9% to $1.16 billion and net income attributable to KMI increased 22% to $764 million. Adjusted EBITDA grew 9% to $2.18 billion. Compared with Q2, revenue increased from $4.10 billion, but operating income declined from $1.35 billion, net income from $867 million, and GAAP EPS from $0.39 to $0.34, tempering the sequential picture.

The defining development was the backlog’s rise to $14.4 billion, including a record $13.2 billion of natural gas projects, led by Southeast Connector and Permian Link. All four segments delivered higher adjusted earnings year over year, with natural gas demand and growth in terminals and CO2 supporting the advance; Products Pipelines’ adjusted result also benefited from excluding $138 million of legal, environmental, and other accruals. Management raised its full-year outlook relative to budget, while noting that roughly $225 million of unusual items and $175 million from commodity prices contributed to 2026 outperformance. Leverage remained at the low end of its target range.

Record earnings

Third-quarter revenue was $4.531 billion, compared with $4.146 billion a year earlier. Operating income increased to $1.160 billion from $1.063 billion, and net income attributable to KMI rose to $764 million from $628 million. Adjusted net income was $792 million, up 22%. Adjusted EBITDA reached $2.18 billion, 9% above the prior-year quarter, and adjusted EPS rose 21% to $0.35. Management said results were also ahead of internal expectations: EPS was 15% above budget and adjusted EBITDA 6% above budget.

Natural gas backlog

KMI added $5.4 billion of projects net of $700 million placed in service, lifting its backlog from $9.6 billion at Q2-end to $14.4 billion. Natural gas accounts for $13.2 billion, and more than 75% of the total backlog supports power generation and local distribution company demand. Management described a $13.7 billion portion as stable, primarily take-or-pay cash flows, with an expected aggregate first-full-year Project EBITDA multiple of about 5.7x.

Southeast Connector: SNG’s project has reached FID, is backed by long-term take-or-pay agreements, and is designed to transport up to 2.6 Bcf/d. KMI’s expected share of cost is $3.1 billion; service is planned in phases from late 2030 through 2032. Management said additional commitments could support scaling capacity to 3.5 Bcf/d.
Permian Link: NGPL’s approximately $4.2 billion project, with KMI’s share about $1.6 billion, is designed for 2.8 Bcf/d and has long-term take-or-pay support, including an A-rated hyperscaler. It is expected to enter service in Q3 2030.
Longer runway: Management said the two projects extend visible growth beyond the prior concentration of backlog EBITDA expected online by the end of 2025; the company cited about $2.5 billion of potential EBITDA from the total backlog once projects are built.

Segment performance

Natural Gas Pipelines: Adjusted segment EBDA rose to $1.489 billion from $1.403 billion. Transport volumes increased 3% and gathering volumes 14%, with KinderHawk gathering up 40%, supported by LNG deliveries on TGP and demand on Texas intrastate systems.
Products Pipelines: Adjusted segment EBDA was $313 million versus $288 million, including the add-back of $138 million in legal, environmental, and other accruals. Refined-product volumes fell 3% and crude and condensate volumes 11%; the company cited the Double H conversion and lower Bakken gathering, among other factors.
Terminals: Adjusted segment EBDA increased to $314 million from $274 million, reflecting expansion contributions, pricing and stronger coal and petroleum coke handling. Houston Ship Channel export docks handled a record 427,000 barrels per day, up 39% year over year.
CO2: Adjusted segment EBDA grew to $184 million from $136 million, with higher commodity prices and volumes. Net oil production rose 8%, including an 11% increase at SACROC; NGL sales volumes increased 9%.

2026 outlook

KMI’s budget called for $8.6 billion of adjusted EBITDA and $1.36 of adjusted EPS. The company now expects to exceed those targets by more than 6% and 13%, respectively; management described the EBITDA outperformance as more than $515 million. It cautioned that about $225 million of the year’s outperformance came from items that may not recur—including winter weather, a terminal contract buyout, a FERC rate true-up and a favorable Waha-to-Houston spread—while higher commodity prices contributed another $175 million. Management said 2026 will be difficult to replicate, and did not preview 2027 guidance.

Cash and leverage

For the first nine months, cash flow from operations was $5.041 billion, capital expenditures were $2.831 billion, and free cash flow after dividends was $226 million. Net debt was $32.229 billion and net debt-to-adjusted EBITDA was 3.5x at September 30, down from 3.8x at year-end 2025. KMI expects to finish 2026 at 3.6x versus a budgeted 3.8x. The board declared a $0.2975 quarterly dividend, or $1.19 annualized, 2% above the year-ago rate; the 2026 dividend budget is $1.19 per share.