Kinder Morgan Reports Fourth Quarter 2025 Financial Results
Key Terms
adjusted ebitda financial
free cash flow (fcf) financial
net debt-to-adjusted ebitda ratio financial
ferc regulatory
non-gaap financial measures financial
Achieves Record Annual Net Income and Adjusted EBITDA
2025 Earnings per share (EPS)
KMI is reporting:
-
Fourth quarter net income attributable to KMI of
$996 million $667 million $866 million 22% higher than the fourth quarter of 2024. -
Adjusted EBITDA of
$2,271 million 10% versus the fourth quarter of 2024. -
Earnings per share (EPS) of
$0.45 50% versus the fourth quarter of 2024; and Adjusted EPS of$0.39 22% versus the fourth quarter of 2024.
“Few would have predicted that the war in
“It is particularly gratifying to maintain leadership in our sector by staying true to our original vision: owning midstream energy assets anchored by long-term, take-or-pay, fee-based contracts with creditworthy customers” Kinder continued. “I have no doubt that we will continue delivering strong growth, reliable performance, and sustained value for many years to come.”
“Led by record-setting performance in our Natural Gas Pipelines business segment, the company delivered its highest ever fourth quarter and full-year net income attributable to KMI and Adjusted EBITDA. For the full year, net income attributable to KMI was
“In the fourth quarter, we continued to internally fund high-quality capital projects while generating cash flow from operations of
“Overall, total demand for natural gas is expected to grow by
“In the markets we serve, we expect robust growth in power demand in the coming years, driven both by population growth and data center siting. In fact, approximately
“Reflecting this strong demand, natural gas projects account for approximately
“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
KMI’s 2026 budgeted net income attributable to KMI of
We plan to publish our annual business update, which will provide more detail on our updated 2026 budget, to KMI’s website at: https://ir.kindermorgan.com/events-and-presentations/default.aspx on Thursday, January 29, 2026.
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 a record for the fourth quarter. Growth in the fourth quarter of 2025 relative to the fourth quarter of 2024 was due primarily to higher contributions from our Texas Intrastate system, KinderHawk and Outrigger Energy assets,” said KMI President Tom Martin.
“Natural gas transport volumes were up
“Contributions from the Products Pipelines business segment were up compared to the fourth quarter of 2024 due to higher transport rates in 2025. Total refined products volumes were down
“Terminals business segment earnings were up compared to the fourth quarter of 2024. The increase was led by our liquids terminals business, which benefited from higher rates and ancillary fees at our Houston Ship Channel hub facilities. Earnings from our Jones Act tanker fleet, which remains fully contracted under term charter agreements, were up versus the prior year period, offset by lower earnings from our bulk terminals,” continued Martin.
“CO2 business segment earnings, which include Energy Transition Ventures (ETV), were down compared to the fourth quarter of 2024 due primarily to lower commodity and D3 RIN prices, partially offset by higher D3 RIN volumes generated by increased renewable natural gas sales,” said Martin.
Other News
Corporate
- On January 13, 2026, S&P upgraded its senior unsecured rating of KMI from BBB to BBB+ largely based on KMI’s track record of a strong balance sheet and credit measures as it continues to expand its natural gas franchise. This follows Fitch’s upgrade to BBB+ that occurred on August 11, 2025. Moody’s has KMI’s senior unsecured rating at Baa2 with a positive outlook.
Natural Gas Pipelines
-
On January 16, 2026, Florida Gas Transmission (FGT) initiated open seasons on two projects, each supported by long-term, binding agreements from anchor shippers. The first is the South Florida Project, a new 37-mile lateral to supply the
South Florida area, along with compression and a new meter station. The project will enhance redundancy and minimize otherwise needed maintenance inSouth Florida . The second is the Phase IX Project, which would expand capacity to multiple locations across FGT’s market area for existing shippers. The project will consist of 82 miles of pipeline looping, as well as new and upgraded compressor station turbines. Together, these projects are expected to result in capital expenditures up to$700 million -
On December 31, 2025, the Federal Energy Regulatory Commission (FERC) issued a Notice of Schedule for the certificate order on Southern Natural Gas (SNG) and Elba Express Company’s (EEC) South System Expansion 4 (SSE4) project after the project was added to the Permitting Council’s FAST-41 Dashboard, which requires federal agencies to publish public permitting timelines. In its notice, FERC indicated that it expects to issue the certificate order for SSE4 on July 31, 2026. The approximately
$3.5 billion $1.8 billion -
On December 31, 2025, FERC also issued a Notice of Schedule for the certificate order on Tennessee Gas Pipeline’s (TGP) Mississippi Crossing (MSX) project after the project was added to the Permitting Council’s FAST-41 Dashboard. FERC indicated that it expects to issue the certificate order for the project on July 31, 2026. The
$1.7 billion Greenville, Mississippi , and connect to the existing TGP system and multiple third-party pipelines to provide critical access to natural gas sourced from multiple supply basins for delivery to SNG and the Transco pipeline nearButler, Alabama . With the timely receipt of all permits and approvals, the project is expected to be in service as early as the second quarter of 2028. -
On December 31, 2025, KMI completed a sale of its
25% non-operated interest in BPX (Eagle Ford) Gathering LLC, formerly known as EagleHawk Field Services (EagleHawk), for$396 million 25% interest in EagleHawk, which is an attractive valuation for a non-operated, minority interest in a G&P asset. The transaction resulted in a pre-tax gain on sale of$123 million -
KMI has begun construction on the approximately
$1.8 billion Katy, 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 and the second phase in the fourth quarter of 2028. -
On December 4, 2025, Natural Gas Pipeline Company of America (NGPL) received a FERC certificate order authorizing the construction of the Gulf Coast Storage Expansion Project. The approximately
$96 million $36 million
Products Pipelines
-
On January 16, 2026, KMI and Phillips 66 announced the start of a second open season on their proposed Western Gateway Pipeline system. The Western Gateway Pipeline will connect Midwest and other refinery supply to
Phoenix andCalifornia , with connectivity toLas Vegas, Nevada via Kinder Morgan’s CALNEV Pipeline. The second open season, which concludes on March 31, 2026, is for remaining pipeline capacity, and adds new access to theLos Angeles market via a joint tariff supported by the planned reversal of one of KMI’s existing SFPP lines between Watson andColton, California . In addition to expanding the offered destinations, the second open season adds additional origin points to enable supply diversification and optionality for customers.
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, January 21, at www.kindermorgan.com for a LIVE webcast conference call on the company’s fourth 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, and amortization of basis differences related to our joint ventures (previously known as amortization of excess cost of equity investments) (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 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 and twelve months ended December 31, 2025 and 2024.
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
(In millions) |
||||||||||||||
Certain Items |
|
|
|
|
|
|
|
||||||||
Risk management activities (1)(2) |
$ |
(42 |
) |
|
$ |
40 |
|
|
$ |
(29 |
) |
|
$ |
72 |
|
Gain on divestitures (3) |
|
(123 |
) |
|
|
1 |
|
|
|
(123 |
) |
|
|
(69 |
) |
Income tax Certain Items (4) |
|
39 |
|
|
|
(4 |
) |
|
|
(2 |
) |
|
|
(52 |
) |
Other |
|
(4 |
) |
|
|
4 |
|
|
|
(3 |
) |
|
|
7 |
|
Total Certain Items (5)(6) |
$ |
(130 |
) |
|
$ |
41 |
|
|
$ |
(157 |
) |
|
$ |
(42 |
) |
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) |
Three and twelve-month periods ended December 31, 2025 include the sale of our equity interest in EagleHawk. Twelve-month period ended December 31, 2024 includes a |
(4) |
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. |
(5) |
Amount for the three-month period ended December 31, 2025 includes |
(6) |
Amounts for the periods ended December 31, 2025 and 2024 include |
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, 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 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. (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 December 31, |
|
% change |
|
Year Ended December 31, |
|
% change |
||||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
|
2025 |
|
|
|
2024 |
|
|
||||
Revenues |
$ |
4,508 |
|
|
$ |
3,987 |
|
|
|
|
$ |
16,937 |
|
|
$ |
15,100 |
|
|
|
||
Operating costs, expenses, and other |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Costs of sales (exclusive of items shown separately below) |
|
1,447 |
|
|
|
1,239 |
|
|
|
|
|
5,529 |
|
|
|
4,337 |
|
|
|
||
Operations and maintenance |
|
787 |
|
|
|
761 |
|
|
|
|
|
3,057 |
|
|
|
2,972 |
|
|
|
||
Depreciation, depletion, and amortization |
|
618 |
|
|
|
596 |
|
|
|
|
|
2,453 |
|
|
|
2,354 |
|
|
|
||
General and administrative |
|
186 |
|
|
|
182 |
|
|
|
|
|
744 |
|
|
|
712 |
|
|
|
||
Taxes, other than income taxes |
|
111 |
|
|
|
106 |
|
|
|
|
|
445 |
|
|
|
433 |
|
|
|
||
Other income, net |
|
(5 |
) |
|
|
(5 |
) |
|
|
|
|
(15 |
) |
|
|
(92 |
) |
|
|
||
Total operating costs, expenses, and other |
|
3,144 |
|
|
|
2,879 |
|
|
|
|
|
12,213 |
|
|
|
10,716 |
|
|
|
||
Operating income |
|
1,364 |
|
|
|
1,108 |
|
|
|
|
|
4,724 |
|
|
|
4,384 |
|
|
|
||
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings from equity investments (1) |
|
249 |
|
|
|
215 |
|
|
|
|
|
896 |
|
|
|
840 |
|
|
|
||
Interest, net |
|
(442 |
) |
|
|
(442 |
) |
|
|
|
|
(1,801 |
) |
|
|
(1,844 |
) |
|
|
||
Other, net |
|
134 |
|
|
|
10 |
|
|
|
|
|
173 |
|
|
|
27 |
|
|
|
||
Income before income taxes |
|
1,305 |
|
|
|
891 |
|
|
|
|
|
3,992 |
|
|
|
3,407 |
|
|
|
||
Income tax expense |
|
(284 |
) |
|
|
(197 |
) |
|
|
|
|
(832 |
) |
|
|
(687 |
) |
|
|
||
Net income |
|
1,021 |
|
|
|
694 |
|
|
|
|
|
3,160 |
|
|
|
2,720 |
|
|
|
||
Net income attributable to NCI |
|
(25 |
) |
|
|
(27 |
) |
|
|
|
|
(104 |
) |
|
|
(107 |
) |
|
|
||
Net income attributable to Kinder Morgan, Inc. |
$ |
996 |
|
|
$ |
667 |
|
|
|
|
$ |
3,056 |
|
|
$ |
2,613 |
|
|
|
||
Class P Shares |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic and diluted earnings per share |
$ |
0.45 |
|
|
$ |
0.30 |
|
|
50 |
% |
|
$ |
1.37 |
|
|
$ |
1.17 |
|
|
17 |
% |
Basic and diluted weighted average shares outstanding |
|
2,225 |
|
|
|
2,222 |
|
|
— |
% |
|
|
2,223 |
|
|
|
2,220 |
|
|
— |
% |
Declared dividends per share |
$ |
0.2925 |
|
|
$ |
0.2875 |
|
|
2 |
% |
|
$ |
1.17 |
|
|
$ |
1.15 |
|
|
2 |
% |
Adjusted Net Income Attributable to Kinder Morgan, Inc. (2) |
$ |
866 |
|
|
$ |
708 |
|
|
22 |
% |
|
$ |
2,899 |
|
|
$ |
2,571 |
|
|
13 |
% |
Adjusted EPS (2) |
$ |
0.39 |
|
|
$ |
0.32 |
|
|
22 |
% |
|
$ |
1.30 |
|
|
$ |
1.15 |
|
|
13 |
% |
Notes |
|
(1) |
Includes amortization of basis differences related to our JVs (previously known as and presented separately as amortization of excess cost of equity investments). |
(2) |
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 December 31, |
|
% change |
|
Year Ended December 31, |
|
% change |
||||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
|
2025 |
|
|
|
2024 |
|
|
||||
Net income attributable to Kinder Morgan, Inc. |
$ |
996 |
|
|
$ |
667 |
|
|
49 |
% |
|
$ |
3,056 |
|
|
$ |
2,613 |
|
|
17 |
% |
Certain Items (1) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk management activities |
|
(42 |
) |
|
|
40 |
|
|
|
|
|
(29 |
) |
|
|
72 |
|
|
|
||
Gain on divestitures |
|
(123 |
) |
|
|
1 |
|
|
|
|
|
(123 |
) |
|
|
(69 |
) |
|
|
||
Income tax Certain Items |
|
39 |
|
|
|
(4 |
) |
|
|
|
|
(2 |
) |
|
|
(52 |
) |
|
|
||
Other |
|
(4 |
) |
|
|
4 |
|
|
|
|
|
(3 |
) |
|
|
7 |
|
|
|
||
Total Certain Items |
|
(130 |
) |
|
|
41 |
|
|
(417 |
)% |
|
|
(157 |
) |
|
|
(42 |
) |
|
(274 |
)% |
Adjusted Net Income Attributable to Kinder Morgan, Inc. |
$ |
866 |
|
|
$ |
708 |
|
|
22 |
% |
|
$ |
2,899 |
|
|
$ |
2,571 |
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to Kinder Morgan, Inc. |
$ |
996 |
|
|
$ |
667 |
|
|
49 |
% |
|
$ |
3,056 |
|
|
$ |
2,613 |
|
|
17 |
% |
Total Certain Items (2) |
|
(130 |
) |
|
|
41 |
|
|
|
|
|
(157 |
) |
|
|
(42 |
) |
|
|
||
Net income allocated to participating securities and other (3) |
|
(4 |
) |
|
|
(4 |
) |
|
|
|
|
(15 |
) |
|
|
(14 |
) |
|
|
||
Adjusted Net Income Attributable to Common Stock |
$ |
862 |
|
|
$ |
704 |
|
|
22 |
% |
|
$ |
2,884 |
|
|
$ |
2,557 |
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to Kinder Morgan, Inc. |
$ |
996 |
|
|
$ |
667 |
|
|
49 |
% |
|
$ |
3,056 |
|
|
$ |
2,613 |
|
|
17 |
% |
Total Certain Items (2) |
|
(130 |
) |
|
|
41 |
|
|
|
|
|
(157 |
) |
|
|
(42 |
) |
|
|
||
DD&A |
|
618 |
|
|
|
596 |
|
|
|
|
|
2,453 |
|
|
|
2,354 |
|
|
|
||
Income tax expense (4) |
|
245 |
|
|
|
201 |
|
|
|
|
|
834 |
|
|
|
739 |
|
|
|
||
Interest, net (5) |
|
441 |
|
|
|
452 |
|
|
|
|
|
1,788 |
|
|
|
1,849 |
|
|
|
||
Amounts associated with joint ventures |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Unconsolidated JV DD&A (6) |
|
95 |
|
|
|
101 |
|
|
|
|
|
391 |
|
|
|
409 |
|
|
|
||
Remove consolidated JV partners' DD&A |
|
(16 |
) |
|
|
(15 |
) |
|
|
|
|
(63 |
) |
|
|
(62 |
) |
|
|
||
Unconsolidated JV income tax expense (7) |
|
22 |
|
|
|
20 |
|
|
|
|
|
89 |
|
|
|
78 |
|
|
|
||
Adjusted EBITDA |
$ |
2,271 |
|
|
$ |
2,063 |
|
|
10 |
% |
|
$ |
8,391 |
|
|
$ |
7,938 |
|
|
6 |
% |
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 periods ended December 31, 2025 and 2024 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 December 31, 2025 and 2024 exclude |
(5) |
To avoid duplication, adjustments for interest, net for the periods ended December 31, 2025 and 2024 exclude |
(6) |
Includes amortization of basis differences related to our JVs which was previously presented separately as amortization of excess cost of equity investments. |
(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 December 31, |
|
Year Ended December 31, |
|||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
2025 |
|
|
|
2024 |
|
Segment EBDA (1)(2) |
|
|
|
|
|
|
|
|||||||
Natural Gas Pipelines Segment EBDA |
$ |
1,800 |
|
|
$ |
1,383 |
|
$ |
6,080 |
|
|
$ |
5,393 |
|
Certain Items (3) |
|
|
|
|
|
|
|
|||||||
Risk management activities |
|
(42 |
) |
|
|
46 |
|
|
(39 |
) |
|
|
75 |
|
Gain on divestiture |
|
(123 |
) |
|
|
— |
|
|
(123 |
) |
|
|
(29 |
) |
Other |
|
(4 |
) |
|
|
— |
|
|
(4 |
) |
|
|
— |
|
Natural Gas Pipelines Adjusted Segment EBDA |
$ |
1,631 |
|
|
$ |
1,429 |
|
$ |
5,914 |
|
|
$ |
5,439 |
|
|
|
|
|
|
|
|
|
|||||||
Products Pipelines Segment EBDA |
$ |
307 |
|
|
$ |
299 |
|
$ |
1,157 |
|
|
$ |
1,164 |
|
Certain Items (3) |
|
|
|
|
|
|
|
|||||||
Risk management activities |
|
— |
|
|
|
— |
|
|
1 |
|
|
|
— |
|
Products Pipelines Adjusted Segment EBDA |
$ |
307 |
|
|
$ |
299 |
|
$ |
1,158 |
|
|
$ |
1,164 |
|
|
|
|
|
|
|
|
|
|||||||
Terminals Segment EBDA |
$ |
294 |
|
|
$ |
281 |
|
$ |
1,143 |
|
|
$ |
1,099 |
|
Certain Items (3) |
|
|
|
|
|
|
|
|||||||
Risk management activities |
|
— |
|
|
|
1 |
|
|
— |
|
|
|
— |
|
Terminals Adjusted Segment EBDA |
$ |
294 |
|
|
$ |
282 |
|
$ |
1,143 |
|
|
$ |
1,099 |
|
|
|
|
|
|
|
|
|
|||||||
CO2 Segment EBDA |
$ |
146 |
|
|
$ |
157 |
|
$ |
612 |
|
|
$ |
685 |
|
Certain Items (3) |
|
|
|
|
|
|
|
|||||||
Risk management activities |
|
(1 |
) |
|
|
3 |
|
|
(4 |
) |
|
|
2 |
|
Gain on divestitures |
|
— |
|
|
|
1 |
|
|
— |
|
|
|
(40 |
) |
CO2 Adjusted Segment EBDA |
$ |
145 |
|
|
$ |
161 |
|
$ |
608 |
|
|
$ |
647 |
|
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) |
Effective January 1, 2025, amortization of basis differences related to our joint ventures (previously known as amortization of excess cost of equity investments) is included within “Earnings from equity investments” in our accompanying consolidated statements of income for the periods ended December 31, 2025 and 2024, and therefore is included within Segment EBDA. As a result, Segment EBDA for the periods ended December 31, 2024 has been adjusted to conform to the current presentation which decreased Segment EBDA for the three-month period by |
(3) |
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 December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
Natural Gas Pipelines |
|
|
|
|
|
|
|
||||||||
Transport volumes (BBtu/d) |
|
48,353 |
|
|
|
44,507 |
|
|
|
46,603 |
|
|
|
44,252 |
|
Sales volumes (BBtu/d) |
|
4,045 |
|
|
|
2,664 |
|
|
|
3,302 |
|
|
|
2,627 |
|
Gathering volumes (BBtu/d) |
|
4,513 |
|
|
|
3,792 |
|
|
|
4,025 |
|
|
|
3,862 |
|
NGLs (MBbl/d) |
|
42 |
|
|
|
40 |
|
|
|
38 |
|
|
|
38 |
|
Products Pipelines (MBbl/d) |
|
|
|
|
|
|
|
||||||||
Gasoline (2) |
|
955 |
|
|
|
981 |
|
|
|
970 |
|
|
|
980 |
|
Diesel fuel |
|
358 |
|
|
|
357 |
|
|
|
359 |
|
|
|
352 |
|
Jet fuel |
|
299 |
|
|
|
306 |
|
|
|
307 |
|
|
|
300 |
|
Total refined product volumes |
|
1,612 |
|
|
|
1,644 |
|
|
|
1,636 |
|
|
|
1,632 |
|
Crude and condensate |
|
423 |
|
|
|
461 |
|
|
|
465 |
|
|
|
471 |
|
Total delivery volumes (MBbl/d) |
|
2,035 |
|
|
|
2,105 |
|
|
|
2,101 |
|
|
|
2,103 |
|
Terminals |
|
|
|
|
|
|
|
||||||||
Liquids leasable capacity (MMBbl) |
|
78.7 |
|
|
|
78.6 |
|
|
|
78.7 |
|
|
|
78.6 |
|
Liquids utilization % (3) |
|
92.9 |
% |
|
|
95.2 |
% |
|
|
94.1 |
% |
|
|
94.6 |
% |
Bulk transload tonnage (MMtons) |
|
11.8 |
|
|
|
12.6 |
|
|
|
49.5 |
|
|
|
53.7 |
|
CO2 (MBbl/d) |
|
|
|
|
|
|
|
||||||||
SACROC oil production |
|
19.11 |
|
|
|
19.00 |
|
|
|
18.70 |
|
|
|
19.01 |
|
Yates oil production |
|
5.94 |
|
|
|
6.26 |
|
|
|
5.95 |
|
|
|
6.13 |
|
Other |
|
1.11 |
|
|
|
1.10 |
|
|
|
1.11 |
|
|
|
1.17 |
|
Total oil production - net (MBbl/d) (4) |
|
26.16 |
|
|
|
26.36 |
|
|
|
25.76 |
|
|
|
26.31 |
|
NGL sales volumes - net (MBbl/d) (4) |
|
8.54 |
|
|
|
8.74 |
|
|
|
8.97 |
|
|
|
8.56 |
|
CO2 sales volumes - net (Bcf/d) |
|
0.312 |
|
|
|
0.318 |
|
|
|
0.297 |
|
|
|
0.322 |
|
RNG sales volumes (BBtu/d) |
|
13 |
|
|
|
11 |
|
|
|
11 |
|
|
|
9 |
|
Realized weighted average oil price ($ per Bbl) |
$ |
66.34 |
|
|
$ |
67.24 |
|
|
$ |
67.51 |
|
|
$ |
68.46 |
|
Realized weighted average NGL price ($ per Bbl) |
$ |
31.10 |
|
|
$ |
35.08 |
|
|
$ |
32.43 |
|
|
$ |
30.83 |
|
CO2 Segment Hedges |
|
2026 |
|
|
2027 |
|
|
2028 |
Crude Oil (5) |
|
|
|
|
|
|||
Price ($ per Bbl) |
$ |
64.34 |
|
$ |
64.13 |
|
$ |
64.51 |
Volume (MBbl/d) |
|
21.60 |
|
|
12.20 |
|
|
4.00 |
NGLs |
|
|
|
|
|
|||
Price ($ per Bbl) |
$ |
42.60 |
|
|
|
|
||
Volume (MBbl/d) |
|
2.56 |
|
|
|
|
||
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) |
|||||||
|
|
|
|
||||
|
December 31, |
|
December 31, |
||||
|
|
2025 |
|
|
|
2024 |
|
Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
63 |
|
|
$ |
88 |
|
Other current assets |
|
2,691 |
|
|
|
2,433 |
|
Property, plant, and equipment, net |
|
39,331 |
|
|
|
38,013 |
|
Investments |
|
7,532 |
|
|
|
7,845 |
|
Goodwill |
|
20,084 |
|
|
|
20,084 |
|
Deferred charges and other assets |
|
3,047 |
|
|
|
2,944 |
|
Total assets |
$ |
72,748 |
|
|
$ |
71,407 |
|
Liabilities and Stockholders' Equity |
|
|
|
||||
Short-term debt |
$ |
1,226 |
|
|
$ |
2,009 |
|
Other current liabilities |
|
3,096 |
|
|
|
3,092 |
|
Long-term debt |
|
30,597 |
|
|
|
29,779 |
|
Debt fair value adjustments |
|
180 |
|
|
|
102 |
|
Other |
|
5,200 |
|
|
|
4,558 |
|
Total liabilities |
|
40,299 |
|
|
|
39,540 |
|
Other stockholders' equity |
|
31,117 |
|
|
|
30,626 |
|
Accumulated other comprehensive loss |
|
45 |
|
|
|
(95 |
) |
Total KMI stockholders' equity |
|
31,162 |
|
|
|
30,531 |
|
Noncontrolling interests |
|
1,287 |
|
|
|
1,336 |
|
Total stockholders' equity |
|
32,449 |
|
|
|
31,867 |
|
Total liabilities and stockholders' equity |
$ |
72,748 |
|
|
$ |
71,407 |
|
|
|
|
|
||||
Net Debt (1) |
$ |
31,716 |
|
|
$ |
31,725 |
|
|
|
|
|
||||
|
Adjusted EBITDA Twelve Months Ended (2) |
||||||
Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Last Twelve Months Adjusted EBITDA |
December 31, |
|
December 31, |
||||
|
2025 |
|
|
|
2024 |
|
|
Net income attributable to Kinder Morgan, Inc. |
$ |
3,056 |
|
|
$ |
2,613 |
|
Total Certain Items (3) |
|
(157 |
) |
|
|
(42 |
) |
DD&A |
|
2,453 |
|
|
|
2,354 |
|
Income tax expense (4) |
|
834 |
|
|
|
739 |
|
Interest, net (4) |
|
1,788 |
|
|
|
1,849 |
|
Amounts associated with joint ventures |
|
|
|
||||
Unconsolidated JV DD&A (5) |
|
391 |
|
|
|
409 |
|
Less: Consolidated JV partners' DD&A |
|
(63 |
) |
|
|
(62 |
) |
Unconsolidated JV income tax expense |
|
89 |
|
|
|
78 |
|
Adjusted EBITDA |
$ |
8,391 |
|
|
$ |
7,938 |
|
|
|
|
|
||||
Net Debt-to-Adjusted EBITDA |
|
3.8 |
|
|
|
4.0 |
|
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 which was previously presented separately as amortization of excess cost of equity investments. |
Table 6 |
|||||||||||||||
Kinder Morgan, Inc. and Subsidiaries |
|||||||||||||||
Preliminary Supplemental Information |
|||||||||||||||
(In millions, unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
KMI FCF |
|
|
|
|
|
|
|
||||||||
Net income attributable to Kinder Morgan, Inc. |
$ |
996 |
|
|
$ |
667 |
|
|
$ |
3,056 |
|
|
$ |
2,613 |
|
Net income attributable to noncontrolling interests |
|
25 |
|
|
|
27 |
|
|
|
104 |
|
|
|
107 |
|
DD&A |
|
618 |
|
|
|
596 |
|
|
|
2,453 |
|
|
|
2,354 |
|
Deferred income taxes |
|
268 |
|
|
|
193 |
|
|
|
780 |
|
|
|
647 |
|
Earnings from equity investments |
|
(249 |
) |
|
|
(215 |
) |
|
|
(896 |
) |
|
|
(840 |
) |
Distribution of equity investment earnings (1) |
|
220 |
|
|
|
223 |
|
|
|
805 |
|
|
|
823 |
|
Working capital and other items |
|
(186 |
) |
|
|
19 |
|
|
|
(385 |
) |
|
|
(69 |
) |
Cash flow from operations |
|
1,692 |
|
|
|
1,510 |
|
|
|
5,917 |
|
|
|
5,635 |
|
Capital expenditures (GAAP) |
|
(820 |
) |
|
|
(772 |
) |
|
|
(3,026 |
) |
|
|
(2,629 |
) |
FCF |
|
872 |
|
|
|
738 |
|
|
|
2,891 |
|
|
|
3,006 |
|
Dividends paid |
|
(654 |
) |
|
|
(642 |
) |
|
|
(2,604 |
) |
|
|
(2,557 |
) |
FCF after dividends |
$ |
218 |
|
|
$ |
96 |
|
|
$ |
287 |
|
|
$ |
449 |
|
Notes |
|
(1) |
Periods ended December 31, 2025 and 2024 exclude distributions from equity investments in excess of cumulative earnings of |
Table 7 |
|||
Kinder Morgan, Inc. and Subsidiaries |
|||
Reconciliation of Projected Net Income Attributable to Kinder Morgan, Inc. to Projected Adjusted EBITDA |
|||
(In billions, unaudited) |
|||
|
2026 Budget (1) |
||
Net income attributable to Kinder Morgan, Inc. (GAAP) |
$ |
3.1 |
|
Total Certain Items (2) |
|
— |
|
DD&A |
|
2.5 |
|
Income tax expense (3) |
|
0.9 |
|
Interest, net |
|
1.8 |
|
Amounts associated with joint ventures |
|
||
Unconsolidated JV DD&A (4) |
|
0.3 |
|
Remove consolidated JV partners' DD&A |
|
(0.1 |
) |
Unconsolidated JV income tax expense (5) |
|
0.1 |
|
Adjusted EBITDA |
$ |
8.6 |
|
Table 8 |
||
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) |
||
|
2026 Budget (1) |
|
Net income attributable to Kinder Morgan, Inc. (GAAP) |
$ |
3.1 |
Total Certain Items (2) |
|
— |
Net income attributable to participating securities and other (2)(6) |
|
— |
Other (5) |
|
— |
Adjusted Net Income Attributable to Common Stock (7) |
$ |
3.1 |
Notes |
|
(1) |
Excludes earnings from our investment in the EagleHawk assets, which were included in our preliminary budget but subsequently divested. |
(2) |
Aggregate adjustments are currently estimated to be less than |
(3) |
Amounts are adjusted for Certain Items. |
(4) |
Includes amortization of basis differences related to our JVs. |
(5) |
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. |
(6) |
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. |
(7) |
Adjusted Net Income Attributable to Common Stock is used to calculate Adjusted EPS. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260121011823/en/
Dave Conover
Media Relations
Newsroom@kindermorgan.com
Investor Relations
(800) 348-7320
km_ir@kindermorgan.com
Source: Kinder Morgan, Inc.
