Kinder Morgan (KMI) Wolfe Research Utilities, Midstream & Clean Energy Conference 2026-Virtual summary

Industry environment and growth opportunities

• Natural gas infrastructure development is at its strongest in decades, driving significant growth opportunities and full network utilization, especially during disruptions and weather events.

• LNG and power generation demand are fueling new projects and incremental EBITDA growth.

• The Southeast is experiencing substantial power generation demand, with advanced utility load requests exceeding 50 GW, translating to potentially 8 BCF/day of gas demand if fully realized.

• Data center build-out and population migration are contributing to sustained utility demand, with contractual protections in place even if some data center projects are delayed.

• Texas, the desert Southwest, and the upper Midwest are also seeing growth, with projects like Permian Link and NGPL positioned to meet regional demand.

Project backlog, capital allocation, and funding

• The sanctioned project backlog is robust, with over 90% of capacity under contract and most projects under construction; shadow backlog projects are progressing well in negotiations.

• At least $1 billion in new projects are expected to be sanctioned by year-end, with both small and large projects contributing.

• Southeast Connector and South System 4 expansions are underway to address surging Southeast utility demand, with open season results expected by the next earnings call.

• Funding for growth projects is primarily from internal cash flow, with $3–3.5 billion per year available and additional balance sheet capacity up to $6–7 billion annually; external capital is not anticipated unless a major acquisition occurs.

• Return requirements are reviewed annually and currently remain stable despite rising debt costs, with a significant cushion above the cost of capital.

Asset strategy, M&A, and market dynamics

• The focus remains on natural gas, which comprises 60–65% of the business and is expected to grow as a share of the portfolio.

• Refined product pipelines benefit from regulatory protections, with gasoline demand projected to increase for the next 15–20 years before leveling off.

• M&A is considered opportunistic and additive, with recent tuck-in acquisitions like NET Mexico and Monument enhancing system integration and customer service.

• The company is prioritizing organic growth but remains open to accretive acquisitions that offer commercial synergies.

• Outperformance in the current year is attributed to $225 million in non-recurring events and $100 million from higher oil prices, with most market-driven gains expected to continue next year.