Kinder Morgan (NYSE: KMI) reported record third-quarter results, with net income attributable to KMI of $764 million against $628 million in the third quarter of 2025. Earnings per share were $0.34 and adjusted EPS was $0.35, both up 21% from a year earlier. The company also raised its expansion project backlog to $14.4 billion, including $13.2 billion of natural gas projects, the largest gas backlog in its history.
Quarterly results
| Measure | Q3 2026 | Change vs Q3 2025 |
|---|---|---|
| Net income attributable to KMI | $764 million | up from $628 million |
| Adjusted net income attributable to KMI | $792 million | up 22% |
| Adjusted EBITDA | $2.18 billion | up 9% |
| EPS | $0.34 | up 21% |
| Adjusted EPS | $0.35 | up 21% |
The board approved a third-quarter dividend of $0.2975 per share, or $1.19 annualized, a 2% increase over the third quarter of 2025. It is payable on November 16, 2026, to holders of record on November 2, 2026.
Backlog grows by $4.7 billion
The backlog rose $4.7 billion from the second quarter. That reflects $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. Chief Executive Officer Kim Dang said customer interest in new gas infrastructure keeps growing.
Two new major projects joined the backlog: Southern Natural Gas Company's Southeast Connector and Natural Gas Pipeline Company of America's Permian Link. Each is designed to move more than 2.5 Bcf/d of natural gas. Dang said the Southeast Connector will deliver Marcellus and Utica supply to the Southeast.
Southern Natural Gas has reached a final investment decision on the Southeast Connector after securing enough long-term, take-or-pay transportation agreements with shippers. The project is designed to carry up to 2.6 Bcf/d over about 470 miles of new pipeline, plus new and expanded compression. KMI's share of the cost is expected to be $3.1 billion. Subject to permits and approvals, phased service is expected to begin in the fourth quarter of 2030.
Dang also pointed to the Western Gateway Pipeline Project announced in August, which would carry refined products to Arizona and, by pipeline for the first time, to California.
Of the backlog, $13.7 billion is primarily take-or-pay. Kinder Morgan expects that portion to produce a first-full-year Project EBITDA multiple of about 5.7 times once the projects are complete.
Cash flow and balance sheet
Dang said the company generated $5 billion of cash flow from operations this year and $230 million of free cash flow after capital spending and dividends. 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, KMI 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.
Segment performance
Natural gas transport volumes rose 3% from a year earlier, mainly on LNG deliveries on Tennessee Gas Pipeline and higher demand on the Texas Intrastate system. Gathering volumes rose 14%, mostly on the KinderHawk system.
In Products Pipelines, favorable commodity pricing was more than offset by legal, environmental and other expense accruals, which the company treats as Certain Items. Refined products volumes fell 3%. 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.
Terminals earnings rose on liquids expansion projects placed in service, higher commodity prices, coal and petroleum coke handling, and higher rates on the Jones Act tanker fleet. CO2 segment earnings also rose, helped by higher commodity prices and volumes. SACROC volumes were up 11% and NGL sales volumes were up 9%.
2026 outlook
KMI's 2026 budget calls for net income of $3.1 billion, adjusted EPS of $1.36, Adjusted EBITDA of $8.6 billion and dividends of $1.19 per share. The company now expects to finish more than 6% above budget on Adjusted EBITDA and more than 13% above on Adjusted EPS. It expects year-end Net Debt-to-Adjusted EBITDA of 3.6 times, 0.2 times better than the 3.8 times budgeted.
We reported earlier that Kinder Morgan posted a record third quarter as its project backlog reached $14.4 billion.
