Kinder Morgan reported third-quarter net income attributable to the company of $764 million, up from $628 million a year earlier, and lifted its expansion project backlog to $14.4 billion. Of that, $13.2 billion is natural gas, the largest gas backlog in the company's history.
Per-share earnings were $0.34, up 21% from the third quarter of 2025. Adjusted EPS was $0.35, also up 21%. Adjusted EBITDA came in at $2.18 billion, up 9%. The board approved a dividend of $0.2975 per share ($1.19 annualized), a 2% increase over a year ago, payable November 16, 2026 to holders of record on November 2.
Third-quarter results
| Measure | Q3 2026 | Change vs Q3 2025 |
|---|---|---|
| Net income attributable to KMI | $764 million | from $628 million |
| Adjusted net income | $792 million | up 22% |
| Adjusted EBITDA | $2.18 billion | up 9% |
| EPS | $0.34 | up 21% |
| Adjusted EPS | $0.35 | up 21% |
CEO Kim Dang said operating cash flow was $5 billion and free cash flow, after capital spending and dividends, was $230 million. Net debt to adjusted EBITDA ended the quarter at 3.5 times, at the low end of the company's target range. On August 6, 2026, Kinder Morgan issued $1.15 billion of 5.55% senior notes due August 2036 and $600 million of 6.15% senior notes due August 2056, using the proceeds to repay commercial paper and maturing debt and for general corporate purposes.
A backlog built on gas
The backlog rose $4.7 billion from the second quarter. That is $5.4 billion of additions, net of $700 million of projects placed in service. More than 75% of the total is tied to power generation and local distribution company demand.
Two new projects drove the additions. Southern Natural Gas's Southeast Connector and Natural Gas Pipeline Company of America's Permian Link are each designed to move more than 2.5 billion cubic feet per day. Dang said they will be among the largest gas pipeline projects built in decades, and that the Southeast Connector will bring Marcellus/Utica supply to the Southeast.
Southern Natural Gas has taken a final investment decision on the Southeast Connector after securing enough long-term, take-or-pay transportation agreements. The project is designed for up to 2.6 Bcf/d and includes about 470 miles of new pipeline plus new and expanded compression. Kinder Morgan's share of the cost is expected to be $3.1 billion. Subject to permits and approvals, service is expected to begin in phases in the fourth quarter of 2030. The company says the project can be scaled with more customer commitments.
Dang also pointed to the Western Gateway Pipeline Project, announced in August, which would deliver refined products to Arizona and, for the first time by pipeline, to California.
The company excludes its CO2 enhanced oil recovery and gathering and processing projects when it calculates backlog multiples. The remaining $13.7 billion is primarily take-or-pay cash flow, and Kinder Morgan expects it to earn a first-full-year Project EBITDA multiple of about 5.7 times once built.
Segment volumes
Natural gas transport volumes rose 3% from a year earlier, mainly on LNG deliveries on Tennessee Gas Pipeline and stronger demand on the Texas Intrastate system. Gathering volumes rose 14%, mostly on the KinderHawk system.
In products pipelines, refined products volumes fell 3%, which President Dax Sanders tied to a higher commodity price environment. Crude and condensate volumes fell 11%, on lower gathered volumes in the Bakken and the conversion of the Double H pipeline to natural gas liquids service. Favorable pricing in that segment was more than offset by legal, environmental and other expense accruals, which the company treats as Certain Items.
Terminals earnings rose on liquids contributions from expansion projects, higher commodity prices, coal and petroleum coke handling, and higher Jones Act tanker rates. In the CO2 segment, volumes at SACROC, the largest field, rose 11% and NGL sales volumes rose 9%.
2026 outlook
Kinder Morgan's 2026 budget calls for net income of $3.1 billion, adjusted EPS of $1.36, adjusted EBITDA of $8.6 billion, dividends of $1.19 per share and year-end net debt to adjusted EBITDA of 3.8 times. The company now expects to finish more than 6% ahead of budget on adjusted EBITDA and more than 13% ahead on adjusted EPS. It also expects a year-end leverage ratio of 3.6 times, 0.2 times better than budget.
