Kinder Morgan (KMI) K3 2026 Financial Results Summary
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Kinder Morgan (KMI) Q3 2026: Record Earnings and Expansion Backlog — Strongly Positive
Kinder Morgan, Inc. (NYSE: KMI) reported a record third quarter for 2026, with net income attributable to KMI reaching $764 million, an increase of $136 million or 22% compared to $628 million in Q3 2025. This robust performance is underscored by a significant rise in both earnings per share (EPS) and adjusted EPS, both up 21% year-over-year.
Key Financial Metrics:
- Net Income: $764 million, up from $628 million (+22% YoY)
- Adjusted Net Income: $792 million, up 22% YoY
- Adjusted EBITDA: $2.18 billion, up 9% YoY
- EPS: $0.34, up 21% YoY
- Adjusted EPS: $0.35, up 21% YoY
- Cash Dividend: $0.2975 per share, a 2% increase from Q3 2025
This quarter's results are undoubtedly positive for shareholders, reflecting not only strong operational performance but also a commitment to returning value through dividends. The increase in the dividend to $1.19 annualized signals confidence in future cash flows and earnings growth.
Expansion and Future Outlook
Kinder Morgan's expansion project backlog has reached an all-time high of $14.4 billion, with $5.4 billion added in this quarter alone. This includes the largest natural gas project backlog in the company's history, totaling $13.2 billion. The company is advancing several major projects, including:
- Southeast Connector Project: Designed to transport over 2.5 Bcf/d of natural gas.
- Permian Link Project: Expected to provide approximately 2.8 Bcf/d of transportation capacity.
These projects are strategically positioned to meet the growing demand for natural gas, particularly in the Southeast U.S., which is experiencing rapid industrial expansion and increasing LNG exports.
Financial Health
Kinder Morgan's financial health remains strong, with stable cash flows from operations of $5 billion and free cash flow after capital expenditures and dividends of $230 million. The company ended the quarter with a Net Debt-to-Adjusted EBITDA ratio of 3.5 times, at the low end of its targeted range, indicating a solid balance sheet.
Guidance and Market Position
For the full year 2026, Kinder Morgan expects:
- Net Income: $3.1 billion
- Adjusted EPS: $1.36
- Adjusted EBITDA: $8.6 billion
- Net Debt-to-Adjusted EBITDA: 3.8 times
The company anticipates being more than 6% favorable to budget on an Adjusted EBITDA basis and more than 13% favorable on Adjusted EPS.
Conclusion
Investors should remain optimistic about Kinder Morgan's trajectory as it capitalizes on its record backlog and strong demand for natural gas infrastructure. The upcoming quarters will be crucial as the company progresses on its major projects and continues to deliver on its financial commitments. Key catalysts to watch include the advancement of the Southeast Connector and Permian Link projects, as well as any updates on further expansions in response to market demand.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In millions)
Note: All amounts are in thousands.
| Three Months Ended September 30, | 2026 | 2025 | Nine Months Ended September 30, | 2026 | 2025 |
|---|---|---|---|---|---|
| Revenues | $4,386 | $4,081 | Revenues | $13,162 | $11,927 |
| Operating expenses | 2,232 | 2,186 | Operating expenses | 6,056 | 5,622 |
| General and administrative expenses | 278 | 297 | General and administrative expenses | 962 | 946 |
| Depreciation, depletion, and amortization | 623 | 617 | Depreciation, depletion, and amortization | 1,857 | 1,836 |
| Total costs and expenses | 3,133 | 3,100 | Total costs and expenses | 8,875 | 8,404 |
| Operating income | 1,253 | 981 | Operating income | 4,287 | 3,523 |
| Interest income | 20 | 15 | Interest income | 48 | 44 |
| Interest expense | (116) | (117) | Interest expense | (338) | (355) |
| Other income (expense), net | 2 | (2) | Other income (expense), net | (10) | 8 |
| Income before income taxes | 1,159 | 877 | Income before income taxes | 3,987 | 3,220 |
| Income tax expense | 395 | 215 | Income tax expense | 1,383 | 1,038 |
| Net income attributable to KMI | $764 | $628 | Net income attributable to KMI | $2,604 | $2,182 |
CONDENSED CONSOLIDATED BALANCE SHEETS (In millions)
Note: All amounts are in thousands.
| September 30, 2026 | December 31, 2025 |
|---|---|
| Cash and cash equivalents: $918 | Cash and cash equivalents: $63 |
| Other current assets: $2,552 | Other current assets: $2,691 |
| Property, plant, and equipment, net: $40,892 | Property, plant, and equipment, net: $39,331 |
| Investments: $7,836 | Investments: $7,532 |
| Goodwill: $20,075 | Goodwill: $20,084 |
| Deferred charges and other assets: $3,124 | Deferred charges and other assets: $3,047 |
| Total assets: $75,397 | Total assets: $72,748 |
| Short-term debt: $1,726 | Short-term debt: $1,226 |
| Other current liabilities: $3,453 | Other current liabilities: $3,096 |
| Long-term debt: $31,445 | Long-term debt: $30,597 |
| Debt fair value adjustments: -98 | Debt fair value adjustments: 180 |
| Other: $6,044 | Other: $5,200 |
| Total liabilities: $42,570 | Total liabilities: $40,299 |
| Other stockholders' equity: $31,757 | Other stockholders' equity: $31,117 |
| Accumulated other comprehensive loss: -162 | Accumulated other comprehensive loss: 45 |
| Total KMI stockholders' equity: $31,595 | Total KMI stockholders' equity: $31,162 |
| Noncontrolling interests: $1,232 | Noncontrolling interests: $1,287 |
| Total stockholders' equity: $32,827 | Total stockholders' equity: $32,449 |
| Total liabilities and stockholders' equity: $75,397 | Total liabilities and stockholders' equity: $72,748 |
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