Kinder Morgan Announces 2026 Financial Expectations

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adjusted eps financial

Adjusted earnings per share (adjusted eps) is a measure of a company's profit per share that has been modified to exclude certain one-time or unusual items, such as costs from restructuring or asset sales. It provides a clearer picture of the company’s core performance by removing events that may distort the usual earnings. Investors use adjusted eps to better understand a company's ongoing profitability and compare it more accurately over time.

adjusted ebitda financial

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

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Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

12/08/2025 - 04:05 PM

$1.37 Adjusted EPS (up 8% versus third quarter guidance); nearly $8.7 billion Adjusted EBITDA; 3.8x leverage at year-end 2026; and $1.19 dividend per share

HOUSTON--(BUSINESS WIRE)-- Kinder Morgan, Inc. (NYSE: KMI) today announced its preliminary 2026 financial projections. “We expect approximately 4% growth in Adjusted EBITDA and 8% growth in Adjusted EPS compared to the 2025 guidance we provided on the third quarter earnings call, driven by continued execution on expansion projects in our Natural Gas Pipelines business segment,” said Kim Dang, KMI Chief Executive Officer.

“We are projecting an annualized dividend of $1.19 for 2026, marking the ninth consecutive year of dividend increases. Our year-end 2026 Net Debt-to-Adjusted EBITDA ratio is forecast at 3.8 times, remaining at the low end of our 3.5x–4.5x target range and preserving flexibility for opportunistic investments,” Dang concluded.

“We expect to continue benefiting from strong natural gas market fundamentals, supporting growth on our existing transportation and storage assets and creating expansion opportunities. Our base business remains stable, with growth primarily driven by expansion projects in our Natural Gas Pipelines segment,” said Tom Martin, KMI President.

Summary of KMI’s Expectations for 2026:

Generate $1.37 of Adjusted EPS, up 8% versus the guidance issued in the third quarter for full-year 2025.
Produce nearly $8.7 billion of Adjusted EBITDA, up 4% versus the guidance issued in the third quarter for full-year 2025.
Invest almost $3.4 billion in discretionary capital expenditures, including expansion projects and contributions to joint ventures, substantially funded from internally generated cash flow.
Return additional value to shareholders through an anticipated declared annualized $1.19 per share dividend.
End 2026 with a Net Debt-to-Adjusted EBITDA ratio of 3.8 times.

This press release includes budgeted Adjusted EPS, Adjusted EBITDA, and Net Debt, all of which are non-GAAP financial measures. For descriptions and reconciliations to the most comparable GAAP measures, please see “Non-GAAP Financial Measures” below.

The KMI board of directors has preliminarily reviewed the 2026 budget and will take formal action at its January meeting, expected to coincide with the issuance of fourth-quarter 2025 earnings on January 21, 2026. The 2026 budget will serve as the standard by which KMI measures performance next year and will be a factor in determining employee compensation. Kinder Morgan has posted a presentation that includes a brief overview of the 2026 budget to the Investor Relations page on its website and expects to publish a detailed 2026 Business Update presentation in late January.

About Kinder Morgan, Inc.

Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy infrastructure companies in North America. Access to reliable, affordable energy is a critical component for improving lives around the world. We are committed to providing energy transportation and storage services in a safe, efficient, and environmentally responsible manner for the benefit of the people, communities and businesses we serve. We own an interest in or operate approximately 79,000 miles of pipelines, 139 terminals, more than 700 billion cubic feet (Bcf) of working natural gas storage capacity and have renewable natural gas generation capacity of approximately 6.9 Bcf per year of gross production. Our pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO2, renewable fuels and other products, and our terminals store and handle various commodities including gasoline, diesel fuel, jet fuel, chemicals, metals, petroleum coke, and ethanol and other renewable fuels and feedstocks. Learn more about our work advancing energy solutions on the lower carbon initiatives page at www.kindermorgan.com.

Important Information Relating to Forward-Looking Statements

This news release includes forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. Generally, the words “expects,” “believes,” anticipates,” “plans,” “will,” “shall,” “estimates,” and similar expressions identify forward-looking statements, which are generally not historical in nature. Forward-looking statements in this news release include express or implied statements pertaining to KMI’s expectations for 2025 and 2026, including expected Adjusted EPS, Adjusted EBITDA, Net Debt-to-Adjusted EBITDA, anticipated dividends, discretionary capital expenditures, KMI’s financing and capital allocation strategy, and the financial performance of growth projects. Forward-looking statements are subject to risks and uncertainties and are based on the beliefs and assumptions of management, based on information currently available to them. Although KMI believes that these forward-looking statements are based on reasonable assumptions, it can give no assurance as to when or if any such forward-looking statements will materialize nor their ultimate impact on our operations or financial condition. Important factors that could cause actual results to differ materially from those expressed in or implied by these forward-looking statements include: the timing and extent of changes in the supply of and demand for the products we transport and handle; commodity prices; regulatory and policy changes; delays or cost overruns affecting expansion projects; and the other risks and uncertainties described in KMI’s reports filed with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year-ended December 31, 2024 (under the headings “Risk Factors” and “Information Regarding Forward-Looking Statements” and elsewhere) and its subsequent reports, which are available through the SEC’s EDGAR system at www.sec.gov and on our website at ir.kindermorgan.com. Forward-looking statements speak only as of the date they were made, and except to the extent required by law, KMI undertakes no obligation to update any forward-looking statement because of new information, future events or other factors. Because of these risks and uncertainties, readers should not place undue reliance on these forward-looking statements.

Non-GAAP Financial Measures

Our non-GAAP financial measures described below should not be considered alternatives to GAAP net income attributable to Kinder Morgan, Inc. or other GAAP measures and have important limitations as analytical tools. Our computations of these non-GAAP financial measures may differ from similarly titled measures used by others. You should not consider these non-GAAP financial measures in isolation or as substitutes for an analysis of our results as reported under GAAP. Management compensates for the limitations of our consolidated non-GAAP financial measures by reviewing our comparable GAAP measures identified in the descriptions of consolidated non-GAAP measures below, understanding the differences between the measures and taking this information into account in its analysis and its decision-making processes.

Certain Items, as adjustments used to calculate our non-GAAP financial measures, are items that are required by GAAP to be reflected in net income attributable to Kinder Morgan, Inc., but typically either (1) do not have a cash impact (for example, unsettled commodity hedges and asset impairments), or (2) by their nature are separately identifiable from our normal business operations and in most cases are likely to occur only sporadically (for example, certain legal settlements, enactment of new tax legislation and casualty losses) We also include adjustments related to joint ventures (see “Amounts associated with Joint Ventures” below).

Adjusted EPS is calculated as Adjusted Net Income Attributable to Common Stock divided by our weighted average shares outstanding. Adjusted Net Income Attributable to Common Stock is calculated by adjusting Net income attributable to Kinder Morgan, Inc., the most comparable GAAP measure, for Certain Items, and further for net income allocated to participating securities and adjusted net income in excess of distributions for participating securities. We believe Adjusted Net Income Attributable to Common Stock allows for calculation of adjusted earnings per share (Adjusted EPS) on the most comparable basis with earnings per share, the most comparable GAAP measure to Adjusted EPS. Adjusted EPS applies the same two-class method used in arriving at basic earnings per share. Adjusted EPS is used by us, investors and other external users of our financial statements as a per-share supplemental measure that provides decision-useful information regarding our period-over-period performance and ability to generate earnings that are core to our ongoing operations.

Adjusted EBITDA is calculated by adjusting net income attributable to Kinder Morgan, Inc. for Certain Items and further for DD&A, amortization of basis differences related to our joint ventures, income tax expense and interest. We also include amounts from joint ventures for income taxes and DD&A (see “Amounts associated with Joint Ventures” below). Adjusted EBITDA (on a rolling 12-months basis) is used by management, investors and other external users, in conjunction with our Net Debt (as described further below), to evaluate our leverage. Management and external users also use Adjusted EBITDA as an important metric to compare the valuations of companies across our industry. Our ratio of Net Debt-to-Adjusted EBITDA is used as a supplemental performance target for purposes of our annual incentive compensation program. We believe the GAAP measure most directly comparable to Adjusted EBITDA is net income attributable to Kinder Morgan, Inc.

Net Debt is calculated by subtracting from debt (1) cash and cash equivalents, (2) debt fair value adjustments, and (3) the foreign exchange impact on Euro-denominated bonds for which we have entered into currency swaps to convert that debt to U.S. dollars. Net Debt, on its own and in conjunction with our Adjusted EBITDA (on a rolling 12-months basis) as part of a ratio of Net Debt-to-Adjusted EBITDA, is a non-GAAP financial measure that is used by management, investors, and other external users of our financial information to evaluate our leverage. Our ratio of Net Debt-to-Adjusted EBITDA is also used as a supplemental performance target for purposes of our annual incentive compensation program. We believe the most comparable measure to Net Debt is total debt. 2026 budgeted Net Debt is calculated as budgeted total debt of $32.7 billion, less cash and cash equivalents, which are expected to be immaterial; 2026 budgeted Net Debt does not include budgeted debt fair value adjustments or the budgeted foreign exchange impact on our Euro denominated debt, as these amounts are impractical to predict and are expected to be immaterial.

Amounts associated with Joint Ventures - Certain Items and Adjusted EBITDA reflect amounts from unconsolidated joint ventures (JVs) and consolidated JVs utilizing the same recognition and measurement methods used to record “Earnings from equity investments” and “Noncontrolling interests,” respectively. The calculation of Adjusted EBITDA related to our unconsolidated and consolidated JVs include the same adjustments (DD&A, amortization of basis differences, and income tax expense) with respect to the JVs as those included in the calculation of Adjusted EBITDA for our wholly owned consolidated subsidiaries; further, we remove the portion of these adjustments attributable to non-controlling interests. Although these amounts related to our unconsolidated JVs are included in the calculation of Adjusted EBITDA, such inclusion should not be understood to imply that we have control over the operations and resulting revenues, expenses, or cash flows of such unconsolidated JVs.

Table 1
Kinder Morgan, Inc. and Subsidiaries
Reconciliation of Projected Net Income Attributable to Kinder Morgan, Inc. to Projected Adjusted EBITDA
(In billions, unaudited)

	2025 Forecast			2026 Budget
Net income attributable to Kinder Morgan, Inc. (GAAP)	$	2.9		$	3.1
Total Certain Items (1)		—			—
DD&A		2.4			2.5
Income tax expense (2)		0.8			0.9
Interest, net (2)		1.8			1.8
Amounts associated with joint ventures
Unconsolidated JV DD&A (3)		0.4			0.4
Remove consolidated JV partners' DD&A		(0.1	)		(0.1	)
Unconsolidated JV income tax expense (4)		0.1			0.1
Adjusted EBITDA	$	8.3		$	8.7

Table 2
Kinder Morgan, Inc. and Subsidiaries
Reconciliation of Projected Net Income Attributable to Kinder Morgan, Inc. to Projected Adjusted Net Income Attributable to Common Stock
(In billions, unaudited)

	2025 Forecast		2026 Budget
Net income attributable to Kinder Morgan, Inc. (GAAP)	$	2.9	$	3.1
Total Certain Items (1)		—		—
Net income allocated to participating securities and other (1)(5)		—		—
Adjusted Net Income Attributable to Common Stock (6)	$	2.9	$	3.1

Notes
(1)	Aggregate adjustments are currently estimated to be less than $100 million.
(2)	Amounts are adjusted for Certain Items.
(3)	Includes amortization of basis differences related to our JVs.
(4)	Includes the tax provision on Certain Items recognized by the investees that are taxable entities associated with our Citrus, NGPL and Products (SE) Pipe Line equity investments.
(5)	Participating securities consist of unvested stock awards issued to employees and non-employee directors. These awards receive dividend equivalents but do not share in net losses or distributions in excess of earnings. Other includes Adjusted net income in excess of distributions for participating securities.
(6)	Adjusted Net Income Attributable to Common Stock is used to calculate Adjusted EPS.