Kinder Morgan (KMI) Q3 2026 earnings summary

Executive summary

• Record Q3 net income attributable was $764 million, up from $628 million year over year; adjusted net income rose 22%.

• Adjusted EBITDA increased 9% to $2.18 billion, and adjusted EPS rose 21% to $0.35; all four segments delivered higher adjusted earnings.

• Expansion backlog reached a record $14.4 billion, including $13.2 billion in natural gas projects; $5.4 billion of additions exceeded $700 million placed in service.

• Long-term, fee-based contracts and a strategically located asset network underpin stable cash flows and investment-led growth.

Financial highlights

• Q3 revenue was $4.531 billion versus $4.146 billion year over year; operating income was $1.160 billion versus $1.063 billion.

• Nine-month revenue was $13.836 billion versus $12.429 billion; net income attributable rose 27% to $2.607 billion.

• Nine-month adjusted EBITDA rose 13% to $6.918 billion and adjusted net income increased 32% to $2.676 billion.

• Q3 adjusted EBITDA was 6% above budget and EPS was 15% above budget; nine-month operating cash flow was $5.041 billion versus $4.225 billion.

• 2026 outperformance included ~$225 million from weather, a terminals contract buyout, a FERC rate true-up and Waha-to-Houston spreads, plus $175 million from commodity prices versus budget.

Outlook and guidance

• 2026 adjusted EBITDA is expected to exceed budget by >6% and adjusted EPS by >13%, representing >$515 million of additional EBITDA versus budget.

• 2026 budget is $8.6 billion adjusted EBITDA, $1.36 adjusted EPS, $3.1 billion net income attributable and $1.19 per share in declared dividends.

• The $14.4 billion backlog is expected to add $2.5 billion of EBITDA when built; projected EBITDA would reach $11.5–$12 billion.

• Expected CapEx run rate is ~$4 billion annually for the next few years; long-term growth remains strong, with annual growth varying by project timing.

• Year-end net debt-to-adjusted EBITDA is expected at 3.6x, below the 3.8x budget; the expansion backlog’s stable, primarily take-or-pay portion has a ~5.7x first-full-year Project EBITDA multiple.