Kinder Morgan Reports First Quarter 2026 Financial Results
Key Terms
liquified natural gas (lng) technical
free cash flow (fcf) financial
net debt-to-adjusted ebitda financial
take-or-pay financial
draft environmental impact statement (deis) regulatory
federal energy regulatory commission (ferc) regulatory
certificate of public convenience and necessity regulatory
billion cubic feet (bcf) technical
Substantial financial outperformance in the quarter
Earnings per share (EPS)
KMI is reporting:
-
First quarter net income attributable to KMI of
$976 million $717 million $1,063 million 39% higher than the first quarter of 2025. -
Adjusted EBITDA of
$2,539 million 18% versus the first quarter of 2025. -
Earnings per share (EPS) of
$0.44 38% versus the first quarter of 2025; and Adjusted EPS of$0.48 41% versus the first quarter of 2025.
“The geopolitical landscape became even more turbulent this quarter, with conflict in the
“We believe we will continue to thrive as a company by remaining disciplined and committed to our original strategy—owning high‑quality midstream energy assets supported by long‑term, take‑or‑pay, fee‑based contracts with creditworthy customers,” Kinder said. “This foundation gives us confidence in our ability to continue delivering consistent cash flows, attractive growth, and long‑term shareholder value for many years to come.”
“For the quarter all of our business segments were well up, excluding Certain Items, versus the first quarter of 2025. Our Natural Gas Pipelines segment drove the bulk of that outperformance, benefiting from winter storm Fern and extended cold weather. The company delivered first quarter 2026 net income attributable to KMI of
“In the first quarter, we continued to internally fund high-quality capital projects while generating cash flow from operations of
“We were also pleased this quarter to receive an upgrade from Moody’s, which joined the other two rating agencies in classifying the company as the equivalent of BBB+. This is a recognition of the work so many in the company have done over the years to achieve robust earnings, strong projected growth, and a very healthy balance sheet,” continued Dang.
“While our expansion projects and backlog receive quite a bit of attention, and deservedly so, this quarter’s outperformance is also a testament to the strength of our base business, particularly natural gas. With more than 65,000 miles of natural gas pipelines connected to all major basins and demand centers, along with more than 700 billion cubic feet (Bcf) of working gas storage capacity, we are well poised to support demand growth across the country. Indeed, the growth in utilization of our five major natural gas pipeline systems has been astounding. In 2016, the annual average utilization of those systems was
“Reflecting that high utilization and the robust demand we see coming, our project backlog at the end of the first quarter of 2026 was
“In calculating backlog Project EBITDA multiples, we exclude both the capital and EBITDA from our CO2 enhanced oil recovery projects and our gathering and processing projects, where first-full-year multiples are more favorable, but the earnings are more uneven than with our other business segments. We expect the remaining
2026 Outlook
For 2026, KMI budgeted net income attributable to KMI of
This press release includes Adjusted Net Income Attributable to KMI, Adjusted EPS, Adjusted Segment EBDA, Adjusted EBITDA, Net Debt, FCF, and Project EBITDA, all of which are non-GAAP financial measures. For descriptions of these non-GAAP financial measures and reconciliations to the most comparable measures prepared in accordance with generally accepted accounting principles, please see “Non-GAAP Financial Measures” and the tables accompanying our preliminary financial statements.
Overview of Business Segments
“The Natural Gas Pipelines business segment’s financial performance was up in the first quarter of 2026 relative to the first quarter of 2025, on higher contributions from our Texas Intrastate system, largely due to cold winter weather,” said KMI President Dax Sanders.
“Natural gas transport volumes were up
“Contributions from the Products Pipelines business segment were up compared to the first quarter of 2025 due to higher commodity prices benefiting our transmix business, the recovery of retroactive rate increases following a favorable court decision, and the impact in the first quarter of 2025 of a turnaround at our condensate processing facility.
“Total refined products volumes were down
“Terminals business segment earnings were up compared to the first quarter of 2025. The increase was led by our liquids terminals business, which benefited from higher rates and ancillary fees at our Houston Ship Channel hub facilities, as well as the recognition of payments to be received in connection with the early termination of certain storage agreements in 2026. Earnings from our bulk terminals and Jones Act tanker fleet, which remains fully contracted under term charter agreements, were also up versus the prior year period,” continued Sanders.
“CO2 business segment earnings, which include Energy Transition Ventures (ETV), were up compared to the first quarter of 2025, excluding Certain Items, due primarily to contributions from the renewable natural gas business and lower power costs in our CO2 operations. These were partially offset by lower realized crude oil and NGL prices compared to the prior year period,” said Sanders.
Other News
Corporate
- On March 12, 2026, Moody’s upgraded Kinder Morgan’s senior unsecured credit rating to Baa1 with a stable outlook from Baa2 with a positive outlook, citing reduced financial leverage, disciplined capital allocation, and a visible backlog of expansion projects. The company is now rated the equivalent of BBB+ at all three agencies.
-
After 35 years with Kinder Morgan, the last six years as KMI Chief Operating Officer (COO), James Holland has announced his intention to retire effective September 4, 2026. Ken Grubb, KMI Vice President and Chief Project Officer since March 2025, will succeed Mr.
Holland as COO. Prior to his work as COO, Mr.Holland held multiple positions within the Products Pipelines business segment, including President. Mr. Grubb has had various roles during his more than 35-year career, including most recently Chief Operating Officer of the Natural Gas Pipeline business segment and prior to that as Vice President of Operations for the Natural Gas Pipeline business segment’s Western Region.
Natural Gas Pipelines
-
KMI has agreed to acquire Monument Pipeline, a natural gas pipeline system serving
Houston and the surrounding metropolitan area, for$505 million Texas intrastate natural gas pipeline network. The purchase price represents an expected medium-term investment-to-EBITDA multiple of less than 8.0 times, reflecting contracted growth under existing commercial agreements. The transaction is expected to close in the second quarter of 2026, subject to customary closing conditions. -
Natural Gas Pipeline Company of America (NGPL) is advancing development of its Amarillo Expansion project, which is designed to support growing demand in the Texas Panhandle. The expansion is expected to provide incremental firm transportation capacity of up to approximately 550,000 dekatherms per day. The approximately
$200 million $75 million -
KMI has commenced work to build the LAHA Header Project, a 750,000 Mcf/d of capacity intrastate natural gas pipeline with compression in
Louisiana near the KinderHawk gathering system to provide firm transport service on a long-term demand charge basis. The approximately$100 million -
KMI is advancing development of its Creekside Lateral project, an approximately 11.2-mile, 42-inch pipeline that will further expand natural gas delivery capabilities in
Central Texas . The approximately$85 million -
On January 30, 2026, the Federal Energy Regulatory Commission (FERC) issued a Draft Environmental Impact Statement (DEIS) on Southern Natural Gas (SNG) and Elba Express (EEC) Companies’ South System Expansion 4 (SSE4) project, and the public comment period on the DEIS has since concluded. The FERC has indicated that it expects to issue an order granting a certificate of public convenience and necessity for this project in July 2026. The approximately
$3.5 billion $1.8 billion -
On January 30, 2026, the FERC also issued a DEIS on TGP’s approximately
$1.7 billion -
KMI is continuing construction on the approximately
$1.8 billion Texas . The roughly 219-mile, 2 Bcf/d project is designed to provide natural gas transportation service fromKaty, Texas , to the industrial corridor nearPort Arthur, Texas . KMI expects to place the first phase of the project in service in the first quarter of 2027. Due to staggered contract start dates, Trident is expected to generate approximately30% of its full run-rate contracted Project EBITDA in 2027. KMI expects the second phase to be placed in service in the fourth quarter of 2028. -
Florida Gas Transmission (FGT) completed open seasons on its
South Florida and Phase IX projects. FGT added additional volume in its Phase IX open season, demonstrating strong market demand. Together, these projects are expected to result in capital expenditures of more than$700 million -
KMI has completed construction operations on its approximately
$165 million Williston Basin producers and midstream companies with pipeline capacity to key market hubs. The pipeline is undergoing line-fill operations, and the project is anticipated to be in service by the middle of the second quarter of 2026. -
On February 25, 2026, Colorado Interstate Gas Company placed in service an expansion of its Totem Storage facility, increasing storage deliverability and improving late season withdrawal capability for customers along Colorado’s Front Range. The approximately
$80 million $40 million Colorado and supports electric demand associated with weather conditions and renewable generation.
Products Pipelines
-
On April 20, 2026, KMI and Phillips 66 announced the successful close of their second open season for the proposed Western Gateway Pipeline system with sufficient customer commitments to advance the project, subject to execution of definitive transportation service agreements, joint venture agreements, and respective board approvals. The refined products pipeline system would connect Midwest and Gulf Coast refinery supplies to
Phoenix, Arizona andCalifornia markets with connectivity toLas Vegas, Nevada , via Kinder Morgan’s CALNEV Pipeline. The project is targeted for completion by mid-2029. -
On April 1, 2026, KMI placed in service its most recent SFPP East Line expansion project to
Tucson, Arizona . The project created an additional 2,500 barrels per day of diesel capacity toTucson . The project is fully supported by long-term, take-or-pay customer commitments for all of the additional capacity.
Terminals
-
On January 2, 2026, KMI and a major Houston Ship Channel refining customer executed various contractual amendments effectuating the early termination of terminal service agreements at KMI’s Kinder Morgan Export Terminal (KMET) and its
Pasadena, Texas terminal in exchange for a series of lump sum payments. The early terminations facilitated the advancement of two accretive back-fill opportunities for KMI, discussed below, strategically re-contracting the entirety of the released storage position on a long-term basis at attractive rates:-
KMI is expanding its industry-leading storage, connectivity, and logistics offering in its Houston Ship Channel refined products hub. The scope of work includes the construction of two dedicated refined products pipelines connecting KMI’s
Pasadena terminal with a nearby major refinery, as well as various intra-terminal piping and tank modifications, including enhanced in-tank blending capabilities for butane and other gasoline components. The approximately$139 million -
KMI is expanding the connectivity and capabilities of its 1.5-million-barrel KMET terminal on the Houston Ship Channel. The scope of work includes the reconfiguration of two existing bi-directional refined products pipelines between KMET and KMI’s
Pasadena terminal and various piping and tank modifications enhancing the in-tank blending capabilities at KMET. The approximately$30 million
-
KMI is expanding its industry-leading storage, connectivity, and logistics offering in its Houston Ship Channel refined products hub. The scope of work includes the construction of two dedicated refined products pipelines connecting KMI’s
All expected in-service dates for projects described above assume timely receipt and continued effectiveness of all necessary permits and approvals.
Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy infrastructure companies in
Please join Kinder Morgan, Inc. at 4:30 p.m. ET on Wednesday, April 22, at www.kindermorgan.com for a LIVE webcast conference call on the company’s first quarter earnings.
Non-GAAP Financial Measures
As described in further detail below, our management evaluates our performance primarily using Net income attributable to Kinder Morgan, Inc. and Segment earnings before DD&A expenses (EBDA), along with the non-GAAP financial measures of Adjusted Net Income Attributable to Common Stock, in the aggregate and per share, Adjusted Segment EBDA, Adjusted Net Income Attributable to Kinder Morgan, Inc., Adjusted earnings before interest, income taxes, DD&A expenses (EBITDA), and Net Debt.
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 (1) do not have a cash impact (for example, unsettled commodity hedges and asset impairments), (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), or (3) align the timing of cash impacts from natural gas inventory hedges with the future associated physical withdrawals from inventory. (See the accompanying Tables 2, 3, 5, and 6.) We also include adjustments related to joint ventures (see “Amounts associated with Joint Ventures” below).
The following table summarizes our Certain Items for the three months ended March 31, 2026 and 2025.
|
Three Months Ended March 31, |
||||||
|
|
2026 |
|
|
|
2025 |
|
|
(In millions) |
||||||
Certain Items |
|
|
|
||||
Risk management activities (1)(2) |
$ |
113 |
|
|
$ |
84 |
|
Income tax Certain Items (3) |
|
(26 |
) |
|
|
(35 |
) |
Total Certain Items (4)(5) |
$ |
87 |
|
|
$ |
49 |
|
Notes |
|
(1) |
Includes changes in fair value of unsettled derivatives, of which gains or losses are reflected within non-GAAP financial measures when realized. |
(2) |
Includes natural gas inventory hedges, of which gains or losses are reflected within non-GAAP financial measures when the associated physical gas is withdrawn from inventory. |
(3) |
Represents the income tax provision on Certain Items plus discrete income tax items. Includes the impact of KMI’s income tax provision on Certain Items affecting earnings from equity investments and is separate from the related tax provision recognized at the investees by the joint ventures which are also taxable entities. |
(4) |
Amount for the period ended March 31, 2025 includes |
(5) |
Amount for the period ended March 31, 2025 includes |
Adjusted Net Income Attributable to Kinder Morgan, Inc. (KMI) is calculated by adjusting net income attributable to Kinder Morgan, Inc. for Certain Items. Adjusted Net Income Attributable to Kinder Morgan, Inc. is used by us, investors, and other external users of our financial statements as a 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. We believe the GAAP measure most directly comparable to Adjusted Net Income Attributable to Kinder Morgan, Inc. is net income attributable to Kinder Morgan, Inc. (See the accompanying Tables 1 and 2.)
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 is calculated as Adjusted Net Income Attributable to Common Stock divided by our weighted average shares outstanding. 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. (See the accompanying Table 2.)
Adjusted Segment EBDA is calculated by adjusting segment earnings before DD&A, general and administrative expenses and corporate charges, interest expense, and income taxes (Segment EBDA) for Certain Items attributable to the segment. Adjusted Segment EBDA is used by management in its analysis of segment performance and management of our business. We believe Adjusted Segment EBDA is a useful performance metric because it provides management, investors, and other external users of our financial statements additional insight into performance trends across our business segments, our segments’ relative contributions to our consolidated performance, and the ability of our segments to generate earnings on an ongoing basis. Adjusted Segment EBDA is also used as a factor in determining compensation under our annual incentive compensation program for our business segment presidents and other business segment employees. We believe it is useful to investors because it is a measure that management uses to allocate resources to our segments and assess each segment’s performance. (See the accompanying Table 3.)
Adjusted EBITDA is calculated by adjusting net income attributable to Kinder Morgan, Inc. for Certain Items and further for DD&A, including the 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. (See the accompanying Tables 2 and 5.)
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 (NCI),” respectively. The calculation of Adjusted EBITDA related to our unconsolidated and consolidated JVs includes the same adjustments (DD&A, including the amortization of basis differences related to joint ventures only, 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. (See Tables 2, 5 and 6.) 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.
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
Project EBITDA is calculated for an individual capital project as earnings before interest expense, taxes, DD&A, and general and administrative expenses attributable to such project, or for JV projects, consistent with the methods described above under “Amounts associated with Joint Ventures,” and in conjunction with capital expenditures for the project, is the basis for our Project EBITDA multiple. Management, investors, and others use Project EBITDA to evaluate our return on investment for capital projects before expenses that are generally not controllable by operating managers in our business segments. We believe the GAAP measure most directly comparable to Project EBITDA is the portion of net income attributable to a capital project. We do not provide the portion of budgeted net income attributable to individual capital projects (the GAAP financial measure most directly comparable to Project EBITDA) due to the impracticality of predicting, on a project-by-project basis through the second full year of operations, certain amounts required by GAAP, such as projected commodity prices, unrealized gains and losses on derivatives marked to market, and potential estimates for certain contingent liabilities associated with the project completion.
FCF is calculated by reducing cash flow from operations for capital expenditures (sustaining and expansion), and FCF after dividends is calculated by further reducing FCF for dividends paid during the period. FCF is used by management, investors, and other external users as an additional leverage metric, and FCF after dividends provides additional insight into cash flow generation. Therefore, we believe FCF is useful to our investors. We believe the GAAP measure most directly comparable to FCF is cash flow from operations. (See the accompanying Table 6.)
Important Information Relating to Forward-Looking Statements
This news release includes forward-looking statements within the meaning of the
Table 1 |
||||||||||
Kinder Morgan, Inc. and Subsidiaries |
||||||||||
Preliminary Consolidated Statements of Income |
||||||||||
(In millions, except per share amounts, unaudited) |
||||||||||
|
|
|
|
|
|
|||||
|
Three Months Ended March 31, |
|
% change |
|||||||
|
|
2026 |
|
|
|
2025 |
|
|
||
Revenues |
$ |
4,828 |
|
|
$ |
4,241 |
|
|
|
|
Operating costs, expenses, and other |
|
|
|
|
|
|||||
Costs of sales (exclusive of items shown separately below) |
|
1,749 |
|
|
|
1,476 |
|
|
|
|
Operations and maintenance |
|
711 |
|
|
|
711 |
|
|
|
|
Depreciation, depletion, and amortization |
|
633 |
|
|
|
610 |
|
|
|
|
General and administrative |
|
184 |
|
|
|
187 |
|
|
|
|
Taxes, other than income taxes |
|
114 |
|
|
|
112 |
|
|
|
|
Other income, net |
|
(7 |
) |
|
|
— |
|
|
|
|
Total operating costs, expenses, and other |
|
3,384 |
|
|
|
3,096 |
|
|
|
|
Operating income |
|
1,444 |
|
|
|
1,145 |
|
|
|
|
Other income (expense) |
|
|
|
|
|
|||||
Earnings from equity investments |
|
254 |
|
|
|
220 |
|
|
|
|
Interest, net |
|
(430 |
) |
|
|
(451 |
) |
|
|
|
Other, net |
|
20 |
|
|
|
15 |
|
|
|
|
Income before income taxes |
|
1,288 |
|
|
|
929 |
|
|
|
|
Income tax expense |
|
(287 |
) |
|
|
(186 |
) |
|
|
|
Net income |
|
1,001 |
|
|
|
743 |
|
|
|
|
Net income attributable to NCI |
|
(25 |
) |
|
|
(26 |
) |
|
|
|
Net income attributable to Kinder Morgan, Inc. |
$ |
976 |
|
|
$ |
717 |
|
|
|
|
Class P Shares |
|
|
|
|
|
|||||
Basic and diluted earnings per share |
$ |
0.44 |
|
|
$ |
0.32 |
|
|
38 |
% |
Basic and diluted weighted average shares outstanding |
|
2,225 |
|
|
|
2,222 |
|
|
— |
% |
Declared dividends per share |
$ |
0.2975 |
|
|
$ |
0.2925 |
|
|
2 |
% |
Adjusted Net Income Attributable to Kinder Morgan, Inc. (1) |
$ |
1,063 |
|
|
$ |
766 |
|
|
39 |
% |
Adjusted EPS (1) |
$ |
0.48 |
|
|
$ |
0.34 |
|
|
41 |
% |
Notes |
|
(1) |
Adjusted Net Income Attributable to Kinder Morgan, Inc. is Net income attributable to Kinder Morgan, Inc. adjusted for Certain Items. Adjusted EPS calculation uses Adjusted Net Income Attributable to Common Stock. See Table 2 for reconciliations. |
Table 2 |
||||||||||
Kinder Morgan, Inc. and Subsidiaries |
||||||||||
Preliminary Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Kinder Morgan, Inc., to Adjusted Net Income Attributable to Common Stock and to Adjusted EBITDA Reconciliations |
||||||||||
(In millions, unaudited) |
||||||||||
|
|
|
|
|
|
|||||
|
Three Months Ended March 31, |
|
% change |
|||||||
|
|
2026 |
|
|
|
2025 |
|
|
||
Net income attributable to Kinder Morgan, Inc. |
$ |
976 |
|
|
$ |
717 |
|
|
36 |
% |
Certain Items (1) |
|
|
|
|
|
|||||
Risk management activities |
|
113 |
|
|
|
84 |
|
|
|
|
Income tax Certain Items |
|
(26 |
) |
|
|
(35 |
) |
|
|
|
Total Certain Items |
|
87 |
|
|
|
49 |
|
|
78 |
% |
Adjusted Net Income Attributable to Kinder Morgan, Inc. |
$ |
1,063 |
|
|
$ |
766 |
|
|
39 |
% |
|
|
|
|
|
|
|||||
Net income attributable to Kinder Morgan, Inc. |
$ |
976 |
|
|
$ |
717 |
|
|
36 |
% |
Total Certain Items (2) |
|
87 |
|
|
|
49 |
|
|
|
|
Net income allocated to participating securities and other (3) |
|
(6 |
) |
|
|
(4 |
) |
|
|
|
Adjusted Net Income Attributable to Common Stock |
$ |
1,057 |
|
|
$ |
762 |
|
|
39 |
% |
|
|
|
|
|
|
|||||
Net income attributable to Kinder Morgan, Inc. |
$ |
976 |
|
|
$ |
717 |
|
|
36 |
% |
Total Certain Items (2) |
|
87 |
|
|
|
49 |
|
|
|
|
DD&A |
|
633 |
|
|
|
610 |
|
|
|
|
Income tax expense (4) |
|
313 |
|
|
|
221 |
|
|
|
|
Interest, net (5) |
|
430 |
|
|
|
449 |
|
|
|
|
Amounts associated with joint ventures |
|
|
|
|
|
|||||
Unconsolidated JV DD&A (6) |
|
91 |
|
|
|
100 |
|
|
|
|
Remove consolidated JV partners' DD&A |
|
(16 |
) |
|
|
(15 |
) |
|
|
|
Unconsolidated JV income tax expense (7) |
|
25 |
|
|
|
26 |
|
|
|
|
Adjusted EBITDA |
$ |
2,539 |
|
|
$ |
2,157 |
|
|
18 |
% |
Notes |
|
(1) |
See table included in “Non-GAAP Financial Measures—Certain Items.” |
(2) |
For a detailed listing, see the above reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Kinder Morgan, Inc. |
(3) |
Other for the period ended March 31, 2026 includes Adjusted net income in excess of distributions for participating securities of |
(4) |
To avoid duplication, adjustments for income tax expense for the periods ended March 31, 2026 and 2025 exclude |
(5) |
To avoid duplication, adjustments for interest, net for the period ended March 31, 2025 exclude |
(6) |
Includes amortization of basis differences related to our JVs. |
(7) |
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. The impact of KMI’s income tax provision on Certain Items affecting earnings from equity investments is included within “Certain Items” above. |
Table 3 |
|||||
Kinder Morgan, Inc. and Subsidiaries |
|||||
Preliminary Reconciliation of Segment EBDA to Adjusted Segment EBDA |
|||||
(In millions, unaudited) |
|||||
|
|
|
|
||
|
Three Months Ended March 31, |
||||
|
2026 |
|
2025 |
||
Segment EBDA (1) |
|
|
|
||
Natural Gas Pipelines Segment EBDA |
$ |
1,711 |
|
$ |
1,453 |
Certain Items (2) |
|
|
|
||
Risk management activities |
|
86 |
|
|
80 |
Natural Gas Pipelines Adjusted Segment EBDA |
$ |
1,797 |
|
$ |
1,533 |
|
|
|
|
||
Products Pipelines Segment EBDA |
$ |
320 |
|
$ |
273 |
Certain Items (2) |
|
|
|
||
Risk management activities |
|
5 |
|
|
1 |
Products Pipelines Adjusted Segment EBDA |
$ |
325 |
|
$ |
274 |
|
|
|
|
||
Terminals Segment EBDA |
$ |
329 |
|
$ |
275 |
Certain Items (2) |
|
|
|
||
Risk management activities |
|
1 |
|
|
— |
Terminals Adjusted Segment EBDA |
$ |
330 |
|
$ |
275 |
|
|
|
|
||
CO2 Segment EBDA |
$ |
168 |
|
$ |
181 |
Certain Items (2) |
|
|
|
||
Risk management activities |
|
21 |
|
|
1 |
CO2 Adjusted Segment EBDA |
$ |
189 |
|
$ |
182 |
Notes |
|
(1) |
Includes revenues, earnings from equity investments, operating expenses, other (income) expense, net, and other, net. Operating expenses include costs of sales, operations and maintenance expenses, and taxes, other than income taxes. The composition of Segment EBDA is not addressed nor prescribed by generally accepted accounting principles. |
(2) |
See “Non-GAAP Financial Measures—Certain Items.” |
Table 4 |
|||||||
Segment Volume and CO2 Segment Hedges Highlights |
|||||||
(Historical data is pro forma for acquired and divested assets, JV volumes at KMI share (1)) |
|||||||
|
|
|
|
||||
|
Three Months Ended March 31, |
||||||
|
|
2026 |
|
|
|
2025 |
|
Natural Gas Pipelines |
|
|
|
||||
Natural gas transport volumes (BBtu/d) |
|
49,475 |
|
|
|
45,978 |
|
Natural gas sales volumes (BBtu/d) |
|
3,893 |
|
|
|
2,598 |
|
Gathering volumes (BBtu/d) |
|
4,319 |
|
|
|
3,758 |
|
NGL transport (MBbl/d) |
|
44 |
|
|
|
32 |
|
Products Pipelines (MBbl/d) |
|
|
|
||||
Gasoline (2) |
|
912 |
|
|
|
933 |
|
Diesel fuel |
|
340 |
|
|
|
336 |
|
Jet fuel |
|
293 |
|
|
|
302 |
|
Total refined product volumes |
|
1,545 |
|
|
|
1,571 |
|
Crude and condensate |
|
420 |
|
|
|
476 |
|
Total delivery volumes (MBbl/d) |
|
1,965 |
|
|
|
2,047 |
|
Terminals |
|
|
|
||||
Liquids leasable capacity (MMBbl) |
|
78.7 |
|
|
|
78.8 |
|
Liquids utilization % (3) |
|
93.5 |
% |
|
|
94.3 |
% |
Bulk transload tonnage (MMtons) |
|
12.1 |
|
|
|
12.2 |
|
CO2 (MBbl/d) |
|
|
|
||||
SACROC oil production |
|
20.24 |
|
|
|
19.26 |
|
Yates oil production |
|
5.66 |
|
|
|
5.94 |
|
Other |
|
1.05 |
|
|
|
1.10 |
|
Total oil production - net (MBbl/d) (4) |
|
26.95 |
|
|
|
26.30 |
|
NGL sales volumes - net (MBbl/d) (4) |
|
9.73 |
|
|
|
9.28 |
|
CO2 sales volumes - net (Bcf/d) |
|
0.313 |
|
|
|
0.310 |
|
RNG sales volumes (BBtu/d) |
|
13 |
|
|
|
8 |
|
Realized weighted average oil price ($ per Bbl) |
$ |
65.42 |
|
|
$ |
68.38 |
|
Realized weighted average NGL price ($ per Bbl) |
$ |
30.02 |
|
|
$ |
35.36 |
|
CO2 Segment Hedges |
Remaining 2026 |
|
2027 |
|
2028 |
||||||
Crude Oil (5) |
|
|
|
|
|
||||||
Price ($ per Bbl) |
$ |
64.54 |
|
$ |
63.63 |
|
$ |
65.37 |
|||
Volume (MBbl/d) |
|
23.15 |
|
|
17.30 |
|
|
6.50 |
|||
NGLs |
|
|
|
|
|
||||||
Price ($ per Bbl) |
$ |
42.61 |
|
$ |
45.80 |
|
|
||||
Volume (MBbl/d) |
|
3.97 |
|
|
0.25 |
|
|
||||
Notes |
|
(1) |
Volumes for acquired assets are included for all periods. However, EBDA contributions from acquisitions are included only for periods subsequent to their acquisition. Volumes for assets divested, idled and/or held for sale are excluded for all periods presented. |
(2) |
Gasoline volumes include ethanol pipeline volumes. |
(3) |
The ratio of our tankage capacity in service to liquids leasable capacity. |
(4) |
Net of royalties and outside working interests. |
(5) |
Includes West Texas Intermediate hedges. |
Table 5 |
|||||||
Kinder Morgan, Inc. and Subsidiaries |
|||||||
Preliminary Consolidated Balance Sheets |
|||||||
(In millions, unaudited) |
|||||||
|
|
|
|
||||
|
March 31, |
|
December 31, |
||||
|
|
2026 |
|
|
|
2025 |
|
Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
72 |
|
|
$ |
63 |
|
Other current assets |
|
2,635 |
|
|
|
2,691 |
|
Property, plant, and equipment, net |
|
39,699 |
|
|
|
39,331 |
|
Investments |
|
7,651 |
|
|
|
7,532 |
|
Goodwill |
|
20,084 |
|
|
|
20,084 |
|
Deferred charges and other assets |
|
2,931 |
|
|
|
3,047 |
|
Total assets |
$ |
73,072 |
|
|
$ |
72,748 |
|
Liabilities and Stockholders' Equity |
|
|
|
||||
Short-term debt |
$ |
2,186 |
|
|
$ |
1,226 |
|
Other current liabilities |
|
2,996 |
|
|
|
3,096 |
|
Long-term debt |
|
29,719 |
|
|
|
30,597 |
|
Debt fair value adjustments |
|
151 |
|
|
|
180 |
|
Other |
|
5,437 |
|
|
|
5,200 |
|
Total liabilities |
|
40,489 |
|
|
|
40,299 |
|
Other stockholders' equity |
|
31,459 |
|
|
|
31,117 |
|
Accumulated other comprehensive (loss) income |
|
(137 |
) |
|
|
45 |
|
Total KMI stockholders' equity |
|
31,322 |
|
|
|
31,162 |
|
Noncontrolling interests |
|
1,261 |
|
|
|
1,287 |
|
Total stockholders' equity |
|
32,583 |
|
|
|
32,449 |
|
Total liabilities and stockholders' equity |
$ |
73,072 |
|
|
$ |
72,748 |
|
|
|
|
|
||||
Net Debt (1) |
$ |
31,798 |
|
|
$ |
31,716 |
|
|
|
|
|
||||
|
Adjusted EBITDA Twelve Months Ended (2) |
||||||
Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Last Twelve Months Adjusted EBITDA |
March 31, |
|
December 31, |
||||
|
2026 |
|
|
|
2025 |
|
|
Net income attributable to Kinder Morgan, Inc. |
$ |
3,315 |
|
|
$ |
3,056 |
|
Total Certain Items (3) |
|
(119 |
) |
|
|
(157 |
) |
DD&A |
|
2,476 |
|
|
|
2,453 |
|
Income tax expense (4) |
|
926 |
|
|
|
834 |
|
Interest, net (4) |
|
1,768 |
|
|
|
1,788 |
|
Amounts associated with joint ventures |
|
|
|
||||
Unconsolidated JV DD&A (5) |
|
381 |
|
|
|
391 |
|
Less: Consolidated JV partners' DD&A |
|
(63 |
) |
|
|
(63 |
) |
Unconsolidated JV income tax expense |
|
88 |
|
|
|
89 |
|
Adjusted EBITDA |
$ |
8,772 |
|
|
$ |
8,391 |
|
|
|
|
|
||||
Net Debt-to-Adjusted EBITDA |
|
3.6 |
|
|
|
3.8 |
|
Notes |
|
(1) |
Amounts calculated as total debt, less (i) cash and cash equivalents; (ii) debt fair value adjustments; and (ii) the foreign exchange impact on our Euro denominated debt of |
(2) |
Reflects the rolling 12-month amounts for each period above. |
(3) |
See table included in “Non-GAAP Financial Measures—Certain Items.” |
(4) |
Amounts are adjusted for Certain Items. See “Non-GAAP Financial Measures—Certain Items” for more information. |
(5) |
Includes amortization of basis differences related to our JVs. |
Table 6 |
|||||||
Kinder Morgan, Inc. and Subsidiaries |
|||||||
Preliminary Supplemental Information |
|||||||
(In millions, unaudited) |
|||||||
|
|
|
|
||||
|
Three Months Ended March 31, |
||||||
|
|
2026 |
|
|
|
2025 |
|
KMI FCF |
|
|
|
||||
Net income attributable to Kinder Morgan, Inc. |
$ |
976 |
|
|
$ |
717 |
|
Net income attributable to noncontrolling interests |
|
25 |
|
|
|
26 |
|
DD&A |
|
633 |
|
|
|
610 |
|
Deferred income taxes |
|
281 |
|
|
|
167 |
|
Earnings from equity investments |
|
(254 |
) |
|
|
(220 |
) |
Distribution of equity investment earnings (1) |
|
150 |
|
|
|
185 |
|
Working capital and other items |
|
(320 |
) |
|
|
(323 |
) |
Cash flow from operations |
|
1,491 |
|
|
|
1,162 |
|
Capital expenditures (GAAP) |
|
(804 |
) |
|
|
(766 |
) |
FCF |
|
687 |
|
|
|
396 |
|
Dividends paid |
|
(654 |
) |
|
|
(642 |
) |
FCF after dividends |
$ |
33 |
|
|
$ |
(246 |
) |
Notes |
|
(1) |
Periods ended March 31, 2026 and 2025 exclude distributions from equity investments in excess of cumulative earnings of |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260422945497/en/
Dave Conover
Media Relations
Newsroom@kindermorgan.com
Investor Relations
(800) 348-7320
km_ir@kindermorgan.com
Source: Kinder Morgan, Inc.