Key financial results
- Quarterly growth: Adjusted EPS increased by 21% and adjusted EBITDA grew by 9% in the third quarter of 2026 compared to the third quarter of 2025.
Adjusted EPS increased by 21%, adjusted EBITDA grew by 9%
- Net income and EPS: Net income attributable to KMI was $764 million, with EPS of $0.34 and adjusted EPS of $0.35.
- Adjusted EBITDA: Adjusted EBITDA for the quarter reached $2.18 billion, supported by contributions from all four business segments.
Adjusted EBITDA grew by 9% to $2.18 billion for the quarter.
- Full year expectations: For the full year, management expects adjusted EPS growth to exceed budget by more than 13% and adjusted EBITDA to exceed budget by more than 6%.
For the full year, we expect adjusted EPS growth to exceed budget by more than 13% and EBITDA to exceed budget by more than 6%.
- Year-to-date results: Year-to-date results showed EBITDA growth of 13% and adjusted EPS up 32% compared to the first nine months of 2025.
Year-to-date versus 2025, EBITDA has grown 13% and adjusted EPS is up 32%.
Business segment results
- Natural gas: Natural gas transport volumes were up 3% and gathering volumes were up 14%, driven by increased LNG feed gas deliveries on Tennessee Gas Pipeline and higher volumes on the KinderHawk system.
transport volumes were up 3% in the quarter versus the third quarter of 2025.
- Products pipeline: Refined products volumes were down 3% and crude condensate volumes were down 11% in the products pipeline segment, partly due to the removal of H from service for an NGL conversion.
refined products volumes were down 3% in the quarter compared to the third quarter of 2025 and crude condensate volumes were down 11%.
- Terminals: Terminals segment liquids lease capacity remained high at almost 93%, while utilization of key hubs on the Houston Ship Channel and Carteret reached just under 96%.
liquids lease capacity remained high at almost 93%, and Market conditions continue to remain supportive
- Terminals exports: Export terminals in the Houston Ship Channel moved an all-time record 427,000 barrels a day across 11 docks, an increase of 39% over the third quarter of 2025.
we saw 427,000 barrels a day move across our 11 docks, which represented an increase of 39%
- CO2: CO2 segment net oil production volumes were 8% higher led by an 11% increase at SACROC, while NGL volumes rose 9% and CO2 volumes fell 3%.
The CO2 segment saw 8% higher net oil production volumes compared to Q3 2025
- RNG: Renewable natural gas volumes increased 18% due to improved operations delivering greater uptime and hydrocarbon recovery.
RNG volumes increased 18% as the significantly improved operations that are driving both greater uptime
Capital allocation
- Dividend: Kinder Morgan declared a quarterly dividend of $0.2975 per share, representing an annualized rate of $1.19 per share and a 2% increase over 2025.
declaring a quarterly dividend of $0.2975 per share, which is $1.19 per share annualized and an increase of 2% over 2025.
- Leverage: Net debt to adjusted EBITDA ended the quarter at 3.5x, with expectations to end the year at 3.6x.
ended the quarter at approximately 3.5x debt-to-EBITDA
- Backlog: During the quarter, the project backlog increased significantly with $5.4 billion in additions and $700 million of projects placed into service, bringing the total backlog to $14.4 billion.
We added $5.4 billion in new projects and placed $700 million of projects into service.
- New FIDs: Major backlog additions included the SNG Southeast Connector and NGPL Permian Link joint venture projects, representing approximately $4.7 billion in KMI share.
Kinder Morgan's share of these projects is approximately $4.7 billion.
- CapEx outlook: Run rate capital expenditures are expected to be around $4 billion annually for the next few years.
run rate, I think the -- it's probably going to be around $4 billion-ish for the next few years in terms of the CapEx
Industry trends and dynamics
- Global LNG: Shell projects global LNG demand to grow nearly 750 million tons per year by 2050, representing a 65% increase from 2025.
- Power demand: The North American Electric Reliability Corporation predicts peak electricity demand in the United States will grow by 225 to 245 gigawatts by 2035.
- Wood Mac projections: Wood Mackenzie projects North American natural gas demand to increase by approximately 46 Bcf a day by 2035 driven by LNG exports and power generation.
Wood Mackenzie projects North American natural gas demand to increase by approximately 46 Bcf a day by 2035
- Network scale: Kinder Morgan delivers about 40% of all natural gas in America, including 40% of LNG feed gas and over 50% of gas exports to Mexico.
we deliver about 40% of all the natural gas in America, including approximately 40% of all LNG feed gas and over 50% of gas exports to Mexico.
Competitive landscape
- Footprint advantage: Management highlighted that the company's large national midstream footprint allows it to offer diversified connectivity to customers seeking alternative supply sources.
That footprint, which we are constantly expanding and extending allows us to offer more diversified connectivity to our customers
- Contract quality: Projects are supported by long-term take-or-pay agreements with creditworthy entities such as investment-grade utilities and A-rated hyperscalers.
Both projects are supported by at least 20-year take-or-pay contracts with creditworthy shippers
Macroeconomic environment
- Non-recurring items: Several non-recurring items contributed approximately $225 million to 2026 outperformance, including winter storm Fern, an extended cold Northeast winter, a terminals contract buyout, a FERC rate true-up, and a Waha to Houston Ship Channel spread.
Collectively, these items contribute approximately $225 million to our outperformance in 2026.
- Commodity prices: Favorable commodity prices contributed an additional $175 million versus the budget, based on a budgeted WTI price of $60 per barrel.
favorable commodity prices have contributed an additional $175 million versus our budget. If you recall, our budgeted WTI price was $60 per barrel.
Growth opportunities and strategies
- Runway extension: The $5.4 billion in project additions includes the Southeast Connector and Permian Link, extending the visible growth runway into the 2030 to 2032 period.
With Permian Link and Southeast Connector entering service between 2030 and 2032 we have meaningfully extended the period of high-quality cash flow growth
- Western Gateway: The Western Gateway project reached a final investment decision in the third quarter with Kinder Morgan investing a total of $300 million to deliver clean products to the Desert Southwest and Southern California by 2029.
- Backlog EBITDA: The $14.4 billion backlog is expected to generate approximately $2.5 billion of additional EBITDA once completed.
returns expected on this $14.4 billion of backlog. That's $2.5 billion of additional EBITDA.
Financial guidance and outlook
- 2027 outlook: Management declined to provide a preview of the 2027 financial guidance during the call.
we're going to avoid given previewing the 2027 guide for right now.
- Segment guidance: Management did not give detailed quarterly segment profit figures on the call.
Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Net income attributable to KMI | $764 million | 22% higher than Q3 2025 |
| Earnings per share | $0.34 | 21% higher than Q3 2025 |
| Adjusted EPS | $0.35 | 21% higher than Q3 2025 |
| Adjusted EBITDA | $2.18 billion | 9% higher than Q3 2025 |
How management sounded
Balanced (+40 on our -100 to +100 scale). Management highlighted record quarterly results, outperformance against budget, and a historic increase in the project backlog driven by robust long-term demand for natural gas. Management sounded more upbeat than on 62% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- Progress and customer contract finalization for the TGP 2019 South and Southeast Connector projects.
- Permitting and construction developments for the Western Gateway project.
- Leverage levels and capital funding execution across joint ventures.
Earlier calls
- Q2 2026 (Jul 22, 2026), tone Balanced: Kinder Morgan reported a record second quarter with strong growth across all business segments and raised its full year guidance.
