Results
KINDER MORGAN REPORTS RECORD THIRD QUARTER 2026 FINANCIAL RESULTS
Announces $5.4 Billion of Additions to Expansion Project Backlog
Management commentary
Largest Natural Gas Project Backlog in Company’s History
Results
4Earnings per share (EPS) and Adjusted EPS both 21% higher than 2025
Capital return
HOUSTON, October 21, 2026 - 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.
Results
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.
3Adjusted EBITDA of $2.18 billion, up 9% versus the third quarter of 2025.
7EPS 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.
1Largest natural gas expansion project backlog in company history, at $13.2 billion of an overall $14.4 billion project backlog.
Management commentary
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.”
2Chief 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
Results
$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.
Management commentary
“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.
Results
“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.”
Management commentary
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.
Results
6“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.
Management commentary
“In calculating backlog Project EBITDA multiples, we exclude both the capital and EBITDA from our CO 2 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.”
Outlook
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.
5KMI 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.
Overview of Business Segments
Management commentary
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.
Results
“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.”
Management commentary
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.
Results
“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.”
Management commentary
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.
Results
“ CO 2 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%.”
Corporate events
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.
8SNG 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.
Management commentary
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.
Results
Products Pipelines
Corporate events
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.
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.
Management commentary
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.
Corporate events
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.
(3)Amounts for three and nine-month periods ended September 30, 2026 reflect a gain recognized on the sale of certain assets in our Terminals business segment.
Results
(5)Amounts for the periods ended September 30, 2026 and 2025 include $(1) million for each of the three-month periods and $(2) million and $(1) million for the nine-month periods, respectively, reported within “Earnings from equity investments” on the accompanying Preliminary Consolidated Statement of Income of "Risk management activities."
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