Kinder Morgan Reports Record Third Quarter 2026 Financial Results

Announces $5.4 Billion of Additions to Expansion Project Backlog
Largest Natural Gas Project Backlog in Company’s History
Earnings per share (EPS) and Adjusted EPS both 21% higher than 2025

HOUSTON--(BUSINESS WIRE)--Kinder Morgan, Inc.’s (NYSE: KMI) board of directors today approved a cash dividend of $0.2975 per share for the third quarter ($1.19 annualized), payable on November 16, 2026, to stockholders of record as of the close of business on November 2, 2026. This dividend is a 2% increase over the third quarter of 2025.

KMI is reporting all-time record third quarter results:

• Third quarter net income attributable to KMI of $764 million. This was up from $628 million in the third quarter of 2025. Adjusted Net Income Attributable to KMI, which excludes Certain Items, was $792 million, 22% higher than the third quarter of 2025.
• Adjusted EBITDA of $2.18 billion, up 9% versus the third quarter of 2025.
• EPS of $0.34, up 21% versus the third quarter of 2025, and Adjusted EPS of $0.35, also up 21% versus the third quarter of 2025.
• Largest natural gas expansion project backlog in company history, at $13.2 billion of an overall $14.4 billion project backlog.

Executive Chairman Richard D. Kinder said, “Our record-setting performance is firmly grounded in our long-standing business model. We enjoy a strategically located network of assets and a portfolio of long-term, fee-based contracts with financially strong customers, providing stable and predictable cash flows.

“Our natural gas business in particular is benefiting from increasing LNG exports, rising power demand, and industrial expansion and is capitalizing on significant opportunities for investment across our footprint,” said Kinder. “We expect those investments to generate attractive returns, driving future earnings and cash flows to support a growing dividend and maintain a strong balance sheet, all while helping meet growing energy demand in the United States and the world.”

Chief Executive Officer Kim Dang said, “This quarter we increased our expansion project backlog to $14.4 billion, including the largest natural gas project backlog in company history at $13.2 billion. Two new major projects in the backlog include Southern Natural Gas Company’s (SNG) Southeast Connector and Natural Gas Pipeline Company of America’s (NGPL) Permian Link. Each project is designed to transport over 2.5 billion cubic feet per day (Bcf/d) of natural gas and will be among the largest natural gas pipeline projects to be constructed in decades. The Southeast Connector Project is especially transformative in that it will deliver abundant Marcellus/Utica supply to the Southeast, one of the fastest growing demand centers in the country.

“Along with the August announcement of our Western Gateway Pipeline Project, which will deliver refined products to Arizona and, for the first time via pipeline, to California, these projects will optimize energy flows in multiple regions of the U.S. We are proud to be leading that effort.

“We are equally proud of the financial and operational excellence that resulted in a record third quarter. Strong financial contributions from our business segments delivered third quarter 2026 net income attributable to KMI of $764 million, 22% higher than the third quarter of 2025, while Adjusted EPS and Adjusted EBITDA were 21% and 9% higher, respectively, than the third quarter of 2025.”

Dang continued, “Throughout the year we have continued to internally fund high-quality capital projects while generating stable cash flow from operations of $5 billion and free cash flow, after capital expenditures and dividends, of $230 million. Our balance sheet remains healthy, as we ended the quarter with a Net Debt-to-Adjusted EBITDA ratio of 3.5 times, at the low end of our targeted range.

“As noted above, the expansion project backlog at the end of the third quarter was $14.4 billion, up $4.7 billion from the second quarter of 2026, with $5.4 billion of additions net of $700 million in projects placed in service. More than 75% of the total backlog is associated with projects supporting power generation and local distribution company demand. As our record-setting performance indicates, the strong interest from our customers in developing additional natural gas infrastructure continues to grow.

“In calculating backlog Project EBITDA multiples, we exclude both the capital and EBITDA from our CO₂ enhanced oil recovery projects and our gathering and processing projects where first-full-year multiples are more favorable, but the earnings are more uneven than with our other business segments. The larger $13.7 billion portion of the backlog represents stable, primarily take-or-pay cash flows. When those projects are realized, we expect them to generate an aggregate first-full-year Project EBITDA multiple of approximately 5.7 times.”

2026 Outlook

For 2026, KMI budgeted net income attributable to KMI of $3.1 billion, Adjusted EPS of $1.36, declared dividends of $1.19 per share, Adjusted EBITDA of $8.6 billion, and year-end Net Debt-to-Adjusted EBITDA of 3.8 times. KMI currently expects to be more than 6% favorable to budget on an Adjusted EBITDA basis and more than 13% favorable to budget on an Adjusted EPS basis for the year. KMI also expects to end the year with a Net Debt-to-Adjusted EBITDA ratio of 3.6 times, which is 0.2 times favorable to KMI’s budget.

This press release includes Adjusted Net Income Attributable to KMI, Adjusted EPS, Adjusted Segment EBDA, Adjusted EBITDA, Net Debt, FCF, and Project EBITDA, all of which are non-GAAP financial measures. For descriptions of these non-GAAP financial measures and reconciliations to the most comparable measures prepared in accordance with generally accepted accounting principles, please see “Non-GAAP Financial Measures” and the tables accompanying KMI’s preliminary financial statements.

Overview of Business Segments

KMI President Dax Sanders stated, “The Natural Gas Pipelines business segment’s financial performance was up in the third quarter of 2026 relative to the third quarter of 2025, on higher contributions from the El Paso Natural Gas Pipeline (EPNG), KinderHawk gathering system, Tennessee Gas Pipeline (TGP), and our Texas Intrastate system.

“Natural gas transport volumes were up 3% compared to the third quarter of 2025, primarily due to LNG deliveries on TGP and increased demand for services on our Texas Intrastate system.

“Natural gas gathering volumes were up 14% from the third quarter of 2025, primarily on our KinderHawk system.”

Sanders added, “While the Products Pipelines business segment had favorable contributions compared to the third quarter of 2025, primarily due to favorable commodity pricing, these were more than offset by legal, environmental, and other expense accruals, which are treated as Certain Items.

“Total refined products volumes were down 3% compared to the third quarter of 2025, due to a higher commodity price environment over the quarter. Crude and condensate volumes were down 11% compared to the third quarter of 2025, due to lower gathered volumes in the Bakken and the conversion of our Double H pipeline to natural gas liquids service.”

Sanders continued, “Terminals business segment earnings were up compared to the third quarter of 2025 on higher liquids contributions from expansion projects placed into service, higher commodity prices, increased strength in our coal and petroleum coke handling activities, and higher rates on our Jones Act tanker fleet.

“CO₂ business segment earnings, which include the Energy Transition Ventures group, were up compared to the third quarter of 2025, due primarily to higher commodity prices and higher crude and NGL volumes. Volumes at SACROC, our largest field, were up 11% compared to the prior year period, and NGL sales volumes were up 9%.”

Other News

Corporate

• On August 6, 2026, KMI issued $1.15 billion of 5.55% senior notes due August 2036 and $600 million of 6.15% senior notes due August 2056. The proceeds were used to repay outstanding commercial paper and maturing debt and for general corporate purposes.

Natural Gas Pipelines

• SNG has reached a final investment decision to proceed with the Southeast Connector Project (SEC Project) after securing sufficient long-term, take-or-pay transportation agreements with shippers. The SEC Project is designed to transport up to 2.6 Bcf/d of natural gas and includes approximately 470 miles of new pipeline and new and expanded compression infrastructure to serve growing markets in the Southeast. The project can be scaled further with additional customer commitments. The KMI share of the total project cost is expected to be $3.1 billion, though final capacity and capital expenditure levels will be determined depending on the ultimate project scope. Subject to the timely receipt of all required permits and approvals, the SEC Project is expected to be placed in service in phases beginning in the fourth quarter of 2030.

• NGPL has reached a final investment decision to proceed with its Permian Link Project. The approximately $4.2 billion project (KMI-share approximately $1.6 billion) is designed to provide approximately 2.8 Bcf/d of natural gas transportation capacity through the construction of approximately 434 miles of new pipeline and related compression, metering, and interconnect facilities. The project will serve new power generation for an A-rated hyperscaler and is supported by long-term, take-or-pay transportation agreements. Subject to the timely receipt of all required permits and approvals, the Permian Link Project is expected to be placed in service in the third quarter of 2030.

• KMI has sanctioned a $95 million second phase and $55 million third phase of its Creekside Lateral Project following the execution of additional long-term, take-or-pay agreements with data center and industrial customers. Upon completion of all phases, this approximately $235 million intrastate project is expected to provide more than 750 million cubic feet per day of contracted natural gas transportation to serve growing demand in Central Texas. The project has capacity to transport approximately 1.3 Bcf/d, with future expansion potential above 2 Bcf/d. Subject to the timely receipt of all required permits and approvals, KMI expects to place the projects in service in phases, first in the fourth quarter of 2026 and then in the fourth quarter of 2027.

• SNG and TGP have reached a final investment decision to proceed with the Bear Creek Storage Expansion Project. The approximately $160 million project (KMI-share approximately $120 million) includes a base natural gas conversion and facility expansion that will support the leasing of approximately 10 Bcf of storage capacity to TGP for which TGP has secured long-term binding agreements. Subject to the timely receipt of all required permits and approvals, the project is expected to be placed in service in April 2029.

• The Plantation North Expansion Project on KMI’s KinderHawk gathering system is nearing completion. The more than $500 million project, backed by life-of-lease acreage dedications, supports projected production growth from the Haynesville Basin and increasing LNG demand along the Gulf Coast. The project is expected to be completed by year-end 2026.

Products Pipelines

• On August 11, 2026, KMI, Phillips 66, and HF Sinclair announced a final joint venture agreement and reached a final investment decision to move forward with the proposed Western Gateway Pipeline. With a design capacity of approximately 230,000 barrels per day, the approximately 1,300-mile refined products pipeline system would create a new fuel supply path from the Midwest and Gulf Coast regions to markets in Arizona and California, with connectivity to Las Vegas, Nevada, via KMI’s CALNEV Pipeline. The partners continue to advance the project and pursue the necessary permits, with an expected in-service date in 2029, subject to the receipt of all permits and regulatory approvals. Under the joint venture, Phillips 66, KMI, and HF Sinclair will own 49.9%, 35.1%, and 15% of the system, respectively.

Terminals

• In the third quarter of 2026, KMI completed the sale of three dry bulk terminals in Tampa, Florida to affiliates of Watco Companies LLC (Watco). Total consideration for the $139 million transaction consisted of cash and additional preferred equity interests in Watco.

• KMI continues to advance the expansion of its industry-leading storage, connectivity, and logistics offering at its Houston Ship Channel refined products hub. Enhancements to in-tank blending capabilities for butane and other gasoline components are underway, while permitting and right-of-way acquisition efforts associated with two new dedicated refined products pipelines connecting KMI’s Pasadena Terminal with a nearby major refinery continue to progress. The approximately $139 million project is supported by a long-term storage and volume commitment with a major national oil company and is expected to be placed in service in the third quarter of 2027.

• KMI continues to advance the expansion of its 1.5-million-barrel Kinder Morgan Export Terminal on the Houston Ship Channel. The approximately $30 million project is supported by a long-term storage commitment with a major international trading company and is expected to be placed in service in the first quarter of 2027.

All expected in-service dates for projects described above assume timely receipt and continued effectiveness of all necessary permits and approvals.

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, more than 130 terminals, over 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. Learn more about our work advancing energy solutions on the lower carbon initiatives page at www.kindermorgan.com.

Please join Kinder Morgan, Inc. at 4:30 p.m. ET on Wednesday, October 21, at www.kindermorgan.com for a LIVE webcast conference call on the company’s third quarter earnings.

Non-GAAP Financial Measures

As described in further detail below, our management evaluates our performance primarily using Net income attributable to Kinder Morgan, Inc. and Segment earnings before DD&A expenses (EBDA), along with the non-GAAP financial measures of Adjusted Net Income Attributable to Common Stock, in the aggregate and per share, Adjusted Segment EBDA, Adjusted Net Income Attributable to Kinder Morgan, Inc., Adjusted earnings before interest, income taxes, DD&A expenses (EBITDA), and Net Debt.

Our non-GAAP financial measures described below should not be considered alternatives to GAAP net income attributable to Kinder Morgan, Inc. or other GAAP measures and have important limitations as analytical tools. Our computations of these non-GAAP financial measures may differ from similarly titled measures used by others. You should not consider these non-GAAP financial measures in isolation or as substitutes for an analysis of our results as reported under GAAP. Management compensates for the limitations of our consolidated non-GAAP financial measures by reviewing our comparable GAAP measures identified in the descriptions of consolidated non-GAAP measures below, understanding the differences between the measures and taking this information into account in its analysis and its decision-making processes.

Certain Items, as adjustments used to calculate our non-GAAP financial measures, are items that are required by GAAP to be reflected in net income attributable to Kinder Morgan, Inc., but typically (1) do not have a cash impact (for example, unsettled commodity hedges and asset impairments), (2) by their nature are separately identifiable from our normal business operations and in most cases are likely to occur only sporadically (for example, certain legal settlements, enactment of new tax legislation and casualty losses), or (3) align the timing of cash impacts from natural gas inventory hedges with the future associated physical withdrawals from inventory. (See the accompanying Tables 2, 3, 5, and 6.) We also include adjustments related to joint ventures (see “Amounts associated with Joint Ventures” below).

The following table summarizes our Certain Items for the three and nine months ended September 30, 2026 and 2025.

Adjusted Net Income Attributable to Kinder Morgan, Inc. (KMI) is calculated by adjusting net income attributable to Kinder Morgan, Inc. for Certain Items. Adjusted Net Income Attributable to Kinder Morgan, Inc. is used by us, our investors, and other external users of our financial statements as a supplemental measure that provides decision-useful information regarding our period-over-period performance and ability to generate earnings that are core to our ongoing operations. We believe the GAAP measure most directly comparable to Adjusted Net Income Attributable to Kinder Morgan, Inc. is net income attributable to Kinder Morgan, Inc. (See the accompanying Tables 1 and 2.)

Adjusted Net Income Attributable to Common Stock is calculated by adjusting Net income attributable to Kinder Morgan, Inc., the most comparable GAAP measure, for Certain Items, and further for net income allocated to participating securities and adjusted net income in excess of distributions for participating securities. We believe Adjusted Net Income Attributable to Common Stock allows for calculation of adjusted earnings per share (Adjusted EPS) on the most comparable basis with earnings per share, the most comparable GAAP measure to Adjusted EPS. Adjusted EPS is calculated as Adjusted Net Income Attributable to Common Stock divided by our weighted average shares outstanding. Adjusted EPS applies the same two-class method used in arriving at basic earnings per share. Adjusted EPS is used by us, our investors, and other external users of our financial statements as a per-share supplemental measure that provides decision-useful information regarding our period-over-period performance and ability to generate earnings that are core to our ongoing operations. (See the accompanying Table 2.)

Adjusted Segment EBDA is calculated by adjusting segment earnings before DD&A, general and administrative expenses and corporate charges, interest expense, and income taxes (Segment EBDA) for Certain Items attributable to the segment. Adjusted Segment EBDA is used by management in its analysis of segment performance and management of our business. We believe Adjusted Segment EBDA is a useful performance metric because it provides management, investors, and other external users of our financial statements additional insight into performance trends across our business segments, our segments’ relative contributions to our consolidated performance, and the ability of our segments to generate earnings on an ongoing basis. Adjusted Segment EBDA is also used as a factor in determining compensation under our annual incentive compensation program for our business segment presidents and other business segment employees. We believe it is useful to investors because it is a measure that management uses to allocate resources to our segments and assess each segment’s performance. (See the accompanying Table 3.)

Adjusted EBITDA is calculated by adjusting net income attributable to Kinder Morgan, Inc. for Certain Items and further for DD&A, including the amortization of basis differences related to our joint ventures, income tax expense, and interest. We also include amounts from joint ventures for income taxes and DD&A (see “Amounts associated with Joint Ventures” below). Adjusted EBITDA (on a rolling 12-months basis) is used by management, investors, and other external users, in conjunction with our Net Debt (as described further below), to evaluate our leverage. Management and external users also use Adjusted EBITDA as an important metric to compare the valuations of companies across our industry. Our ratio of Net Debt-to-Adjusted EBITDA is used as a supplemental performance target for purposes of our annual incentive compensation program. We believe the GAAP measure most directly comparable to Adjusted EBITDA is net income attributable to Kinder Morgan, Inc. (See the accompanying Tables 2 and 5.)

Amounts associated with Joint Ventures - Certain Items and Adjusted EBITDA reflect amounts from unconsolidated joint ventures (JVs) and consolidated JVs utilizing the same recognition and measurement methods used to record “Earnings from equity investments” and “Noncontrolling interests (NCI),” respectively. The calculation of Adjusted EBITDA related to our unconsolidated and consolidated JVs includes the same adjustments (DD&A, including the amortization of basis differences related to joint ventures only, and income tax expense) with respect to the JVs as those included in the calculation of Adjusted EBITDA for our wholly-owned consolidated subsidiaries; further, we remove the portion of these adjustments attributable to non-controlling interests.

Dave Conover
Media Relations
Newsroom@kindermorgan.com

Investor Relations
(800) 348-7320
km_ir@kindermorgan.com