Record Q2 profit as Kinder Morgan (NYSE: KMI) sees 2026 above budget
Rhea-AI Filing Summary
Kinder Morgan, Inc. reported record second-quarter 2026 results, with net income attributable to KMI of $867 million, up from $715 million a year earlier, and Adjusted Net Income of $821 million, 33% higher. Adjusted EBITDA reached $2,199 million, a record for the quarter and 12% above 2025. EPS was $0.39 and Adjusted EPS $0.37, increases of 22% and 32%, respectively.
The board approved a quarterly cash dividend of $0.2975 per share ($1.19 annualized), 2% above the 2025 level. Cash flow from operations was $1,960 million and free cash flow $978 million, leaving $313 million of free cash flow after dividends. Net Debt-to-Adjusted EBITDA stood at 3.6 times, at the low end of the company’s targeted range. Project backlog was $9.6 billion, and KMI expects 2026 Adjusted EBITDA to be more than 5% above budget and Adjusted EPS more than 12% above budget.
Positive
- Record Q2 profitability with net income attributable to KMI of $867 million and Adjusted EBITDA of $2,199 million, up 21% and 12% versus Q2 2025.
- Per-share performance was strong, with EPS of $0.39 and Adjusted EPS of $0.37, increases of 22% and 32% year over year.
- Robust cash generation: Q2 cash flow from operations of $1,960 million, free cash flow of $978 million, and $313 million of free cash flow after dividends.
- Leverage improved, with Net Debt-to-Adjusted EBITDA at 3.6x, the low end of management’s targeted range, supporting balance sheet flexibility.
- For 2026, management expects Adjusted EBITDA to be more than 5% above budget and Adjusted EPS more than 12% above budget.
Negative
- None.
Filing Explained
Three expansion projects are in service; future backlog additions remain contingent on approvals, separating completed capacity from planned capacity.
The July 22 Form 8-K furnishes preliminary second-quarter results and reports that three expansion projects are already in service, moving those projects from planned capital work into operating assets.
The completed projects are the Cumberland pipeline lateral, Hiland Express, and the Gulf Coast Express expansion, together representing approximately
KMI says its project backlog fell by
A named approval milestone is FERC action expected by the end of
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Revenue: $4,477 million
Net income attributable to KMI: $867 million
Adjusted EBITDA: $2,199 million
+5 more
8 metrics
Revenue
$4,477 million
Three months ended June 30, 2026
Net income attributable to KMI
$867 million
Q2 2026, up from $715 million in Q2 2025
Adjusted EBITDA
$2,199 million
Q2 2026, 12% higher than Q2 2025
EPS
$0.39
Q2 2026, 22% higher than Q2 2025
Adjusted EPS
$0.37
Q2 2026, 32% higher than Q2 2025
Dividend per share
$0.2975
Declared Q2 2026 dividend, 2% above Q2 2025
Free cash flow
$978 million
Three months ended June 30, 2026
Net Debt-to-Adjusted EBITDA
3.6 times
Rolling 12 months ended June 30, 2026
Key Terms
Adjusted EBITDA, Free cash flow (FCF), Net Debt-to-Adjusted EBITDA, Non-GAAP financial measures, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA of $2,199 million was also a record for the second quarter"
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.
Free cash flow (FCF) financial
"free cash flow (FCF), which is after capital expenditures, of $1 billion"
Free cash flow (FCF) is the cash a company generates from its regular business after paying for necessary investments like equipment, buildings, or repairs—think of it as the money left in your wallet after paying bills and fixing the car. Investors watch FCF because it shows how much real, spendable cash a company has to pay dividends, pay down debt, buy back shares, or fund growth, making it a key measure of financial health and flexibility.
Net Debt-to-Adjusted EBITDA financial
"ended the quarter with a Net Debt-to-Adjusted EBITDA ratio of 3.6 times"
Net debt-to-adjusted EBITDA is a leverage ratio that divides a company’s net debt (total debt minus cash and equivalents) by its adjusted EBITDA, which is the company’s operating cash profit after removing one-time or unusual items. It tells investors how many years of that recurring operating cash flow would be needed to pay off current net debt, like estimating how many paychecks it would take to clear a mortgage, and helps gauge financial risk and borrowing capacity.
Non-GAAP financial measures financial
"This press release includes Adjusted Net Income Attributable to KMI ... all of which are non-GAAP financial measures"
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.
Project EBITDA multiple financial
"remaining $8.5 billion of projects ... generate an aggregate first-full-year Project EBITDA multiple of approximately 5.6 times"
Earnings Snapshot
Net income attributable to KMI: $867 million · Guidance included
Quarter ended June 30, 2026
Net income attributable to KMI
$867 million
up 21% versus the second quarter of 2025
Adjusted Net Income attributable to KMI
$821 million
33% higher than the second quarter of 2025
Adjusted EBITDA
$2,199 million
up 12% versus the second quarter of 2025
EPS
$0.39
up 22% versus the second quarter of 2025
Adjusted EPS
$0.37
up 32% versus the second quarter of 2025
Cash flow from operations
$1,960 million
up from $1,649 million in the second quarter of 2025
Free cash flow
$978 million
compared with $1,002 million in the second quarter of 2025
Guidance
For 2026, Kinder Morgan budgeted net income attributable to KMI of $3.1 billion, Adjusted EPS of $1.36, declared dividends of $1.19 per share, and Adjusted EBITDA of $8.6 billion, and currently expects Adjusted EBITDA to be more than 5% and Adjusted EPS more than 12% favorable to budget, with year-end Net Debt-to-Adjusted EBITDA of 3.6 times.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Kinder Morgan (KMI) perform financially in Q2 2026?
Kinder Morgan reported net income attributable to KMI of $867 million and Adjusted EBITDA of $2,199 million. EPS was $0.39 and Adjusted EPS $0.37, representing year-over-year increases of 22% and 32% for the quarter ended June 30, 2026.
What dividend did Kinder Morgan (KMI) declare for the second quarter of 2026?
The board approved a quarterly cash dividend of $0.2975 per share, or $1.19 annualized. It is payable on August 17, 2026 to stockholders of record on August 3, 2026, and represents a 2% increase over the second quarter of 2025.
What is Kinder Morgan’s 2026 outlook and budget versus expectations?
For 2026, Kinder Morgan budgeted $3.1 billion of net income attributable to KMI, $1.36 Adjusted EPS and $8.6 billion Adjusted EBITDA. Based on midyear results, it expects Adjusted EBITDA to be more than 5% and Adjusted EPS more than 12% favorable to budget.
How strong were Kinder Morgan’s cash flow and leverage in Q2 2026?
Kinder Morgan generated $1,960 million of cash flow from operations and $978 million of free cash flow, with $313 million of free cash flow after dividends. Its Net Debt-to-Adjusted EBITDA ratio was 3.6x on a last-twelve-month basis, at the low end of its targeted range.
How did Kinder Morgan’s business segments perform in Q2 2026?
Natural Gas Pipelines delivered higher financial performance with transport volumes up 7% and gathering volumes up 26%. Products Pipelines contributions rose on higher commodity prices despite lower refined products and crude volumes, while Terminals and CO2 segment earnings both increased versus the second quarter of 2025.
What is Kinder Morgan’s project backlog and what major projects are underway?
Kinder Morgan reported a project backlog of $9.6 billion at Q2 2026, down $500 million from Q1. Recent in-service projects include the $235 million Cumberland pipeline, $165 million Hiland Express conversion, and $450 million Gulf Coast Express expansion, with several large FERC-regulated expansions in development.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 22, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of principal executive offices, including zip code)
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. | Results of Operations and Financial Condition | ||||
In accordance with General Instruction B.2. of Form 8-K, the following information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.
On July 22, 2026, Kinder Morgan, Inc. “KMI” issued a press release announcing its preliminary financial results for the quarter ended June 30, 2026 and that it will hold a webcast conference call on July 22, 2026 discussing those results. The press release is furnished as Exhibit 99.1 to this report.
| Item 9.01. | Financial Statements and Exhibits | ||||
(d) Exhibits.
| Exhibit Number | Description | |||||||
| 99.1 | Press release of Kinder Morgan, Inc. issued July 22, 2026. | |||||||
| 104 | Cover page interactive data file pursuant to Rule 406 of Regulation S-T formatted as Inline XBRL. | |||||||
2
S I G N A T U R E
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Kinder Morgan, Inc. | ||||||||||||||
| Registrant | ||||||||||||||
| Dated: July 22, 2026 | By: | /s/ David P. Michels | ||||||||||||||||||
| David P. Michels Vice President and Chief Financial Officer | ||||||||||||||||||||
3
| Exhibit 99.1 | ||||||||||||||
KINDER MORGAN REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS
Achieves Record Second Quarter Net Income and Adjusted EBITDA
Earnings per share (EPS) 22% greater than 2025; Adjusted EPS up 32%
HOUSTON, July 22, 2026 - Kinder Morgan, Inc.’s (NYSE: KMI) board of directors today approved a cash dividend of $0.2975 per share for the second quarter ($1.19 annualized), payable on August 17, 2026, to stockholders of record as of the close of business on August 3, 2026. This dividend is a 2% increase over the second quarter of 2025.
KMI is reporting:
•Second quarter net income attributable to KMI of $867 million, an all-time record high for the second quarter. This was up from $715 million in the second quarter of 2025. Adjusted Net Income Attributable to KMI, which excludes Certain Items, was $821 million, 33% higher than the second quarter of 2025.
•Adjusted EBITDA of $2,199 million was also a record for the second quarter and was up 12% versus the second quarter of 2025.
•Earnings per share (EPS) of $0.39, up 22% versus the second quarter of 2025, and Adjusted EPS of $0.37, up 32% versus the second quarter of 2025.
“Our fee-based business model, strategically located network of assets, and portfolio of long-term contracts with financially strong customers continue to support stable and predictable cash flows,” Executive Chairman Richard D. Kinder said.
“At the same time, demand for natural gas infrastructure continues to grow. Increasing LNG exports, rising power demand, and industrial expansion make our existing highly utilized assets more valuable and create significant opportunities for investment across our footprint.
“The company’s stable cash flows provide the financial flexibility to fund virtually all of our project backlog internally, support a growing dividend and maintain a strong balance sheet,” Kinder said. “We expect those projects to generate attractive returns, driving future earnings and cash flow growth while helping meet the nation's growing energy infrastructure needs.”
“Strong financial contributions from our business segments resulted in a record second quarter. The company delivered second quarter 2026 net income attributable to KMI of $867 million, 21% higher than the second quarter of 2025, while Adjusted EPS and Adjusted EBITDA were
32% and 12% higher, respectively, than the second quarter of 2025,” Chief Executive Officer Kim Dang said.
Dang continued, “In the second quarter, we continued to internally fund high-quality capital projects while generating cash flow from operations of $2 billion and free cash flow (FCF), which is after capital expenditures, of $1 billion. Our balance sheet remains healthy, as we ended the quarter with a Net Debt-to-Adjusted EBITDA ratio of 3.6 times, at the low end of our targeted range.
“We also achieved very strong results from capital expansion project execution this quarter, placing approximately $660 million (KM-share) in expansion projects into service. These included Tennessee Gas Pipeline’s (TGP) Cumberland Project that will serve a new natural gas-fired power plant in Tennessee; Hiland Express, a conversion of our Double H Pipeline system from crude oil to natural gas liquids service; and the eagerly anticipated Gulf Coast Express pipeline expansion to increase natural gas flows from the Permian Basin to South Texas markets. These revenue-generating expansion projects now join our strong base business, adding to our unparalleled network of pipeline and storage assets.
“As a result of placing those large projects into service, our project backlog at the end of the second quarter of 2026 was $9.6 billion, down $500 million from the first quarter of 2026, although the board today provided contingent approval on almost $400 million in projects that are not yet in the backlog. Natural gas projects account for approximately 92% of our project backlog, and more than 60% of the backlog is associated with projects supporting power generation and local distribution company demand. Even beyond the backlog, we continue to see strong interest from our customers in developing additional natural gas infrastructure.
“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 $8.5 billion of projects in the backlog, when realized, to generate an aggregate first-full-year Project EBITDA multiple of approximately 5.6 times.”
2026 Outlook
For 2026, KMI budgeted net income attributable to KMI of $3.1 billion, Adjusted EPS of $1.36, declared dividends of $1.19 per share, Adjusted EBITDA of $8.6 billion, and year-end Net Debt-to-Adjusted EBITDA of 3.8 times. Based on results through the second quarter, KMI currently expects to be more than 5% favorable to budget on an Adjusted EBITDA basis and more than 12% favorable to budget on Adjusted EPS for the year. We also expect to end the year with an improved Net Debt-to-Adjusted EBITDA of 3.6 times.
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 second quarter of 2026 relative to the second quarter of 2025, on higher contributions from our Texas Intrastate system and our gathering assets,” KMI President Dax Sanders said.
“Natural gas transport volumes were up 7% compared to the second quarter of 2025, primarily due to LNG deliveries on TGP, increased demand for services on our Texas Intrastate system, and increased exports to Mexico as well as higher power generation demand in Arizona on El Paso Natural Gas Pipeline.
“Natural gas gathering volumes were up 26% from the second quarter of 2025 across our assets, with our KinderHawk system experiencing the largest growth.
“Contributions from the Products Pipelines business segment were up compared to the second quarter of 2025 due primarily to higher commodity prices.
“Total refined products volumes were down 5% compared to the second quarter of 2025 due to temporary West Coast supply disruptions, as well as a higher commodity price environment over the quarter. Crude and condensate volumes were down 16% compared to the second quarter of 2025, largely due to the conversion of our Double H pipeline to natural gas liquids service,” Sanders said.
“Terminals business segment earnings were up compared to the second 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 favorable commodity pricing. Earnings from our Jones Act tanker fleet, which remains fully contracted under term charter agreements, were also up versus the prior year period on higher average charter rates. Contributions from our bulk terminals business were down despite higher volumes owing to one-time events in the prior year period,” Sanders continued.
“CO2 business segment earnings, which include the Energy Transition Ventures group, were up compared to the second quarter of 2025 due primarily to higher commodity prices and volumes. Volumes at SACROC, our largest field, were up 15% compared to the prior year period,” Sanders said.
Other News
Natural Gas Pipelines
•On June 26, 2026, the Federal Energy Regulatory Commission (FERC) issued a Final Environmental Impact Statement covering both Southern Natural Gas (SNG) and Elba Express (EEC) Companies’ South System Expansion 4 (SSE4) project and TGP’s
Mississippi Crossing (MSX) project. FERC has previously indicated that it expects to issue orders granting certificates of public convenience and necessity for both projects by the end of July 2026. The approximately $3.5 billion SSE4 project (KM-share, including EEC, approximately $1.8 billion) is designed to increase SNG’s South Main Line capacity by roughly 1.3 billion cubic feet per day (Bcf/d). With the timely receipt of all permits and approvals, KMI expects to place the first phase of SSE4 in service in the fourth quarter of 2028 and the second phase in the fourth quarter of 2029. The approximately $1.7 billion MSX project is expected to be placed in service as early as the second quarter of 2028, subject to the timely receipt of all permits and approvals.
•On June 5, 2026, TGP filed an application with the FERC for its South Texas Enhancement Project. The approximately $90 million project is designed to provide incremental firm natural gas transportation to South Texas and Mexico markets and extend existing shippers’ transportation paths to access incremental natural gas supplies. The project includes approximately 1.7 miles of new pipeline, an overpressure protection facility, and a new compressor station. With the timely receipt of all required permits and approvals, TGP expects the project to be placed in service in the second quarter of 2028.
•Natural Gas Pipeline Company of America LLC (NGPL) is continuing to develop its Amarillo Expansion project to support growing demand in the Texas Panhandle, including additional data center development. The expansion is expected to provide incremental firm transportation capacity of up to approximately 550,000 Dth/d. All of the project’s capacity is fully subscribed under a long-term contract. NGPL is preparing to file an application with the FERC for the approximately $200 million project (KM-share approximately $75 million) in the third quarter of 2026. With the timely receipt of all required permits and approvals, NGPL expects the project to be placed in service in the third quarter of 2028.
•On May 26, 2026, TGP placed in service its approximately $235 million Cumberland project, an approximately 32-mile, 30-inch pipeline lateral originating from TGP’s existing 100 Line in Dickson County, Tennessee and terminating at Tennessee Valley Authority’s (TVA) new natural gas-fired power plant in Stewart County, Tennessee. The project provides approximately 245,000 Dth/d of additional natural gas transportation service to support TVA’s commissioning and operation of its new power plant.
•On April 29, 2026, KMI placed in service its approximately $165 million Hiland Express Pipeline project, converting the Double H Pipeline system from crude oil to natural gas liquids service and providing Williston Basin producers and midstream companies with pipeline capacity to key market hubs.
•On June 23, 2026, the approximately $450 million Gulf Coast Express expansion project (KM-share approximately $160 million) was placed in service. The expansion increases natural gas transportation capacity by approximately 570 million cubic feet per day from the Permian Basin to South Texas markets and brings total system capacity to approximately 2.59 Bcf/d.
Products Pipelines
•KMI and Phillips 66 continue to advance the Western Gateway Pipeline project and have started the process of pursuing the necessary permits. As previously noted, the project is subject to the 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, and California markets with connectivity to Las Vegas, Nevada, via KMI’s CALNEV Pipeline.
Terminals
•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 project is supported by a long-term storage and volume commitment with a major national oil company and is expected to be in service in the third quarter of 2027.
•KMI is expanding the connectivity and capabilities of its 1.5-million-barrel Kinder Morgan Export Terminal (KMET) 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 project is supported by a long-term storage commitment with a major international trading company and is expected to be in service in the first quarter of 2027.
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 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 78,000 miles of pipelines, 136 terminals, more than 700 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.
Please join Kinder Morgan, Inc. at 4:30 p.m. ET on Wednesday, July 22, at www.kindermorgan.com for a LIVE webcast conference call on the company’s second 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 and six months ended June 30, 2026 and 2025.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Certain Items | |||||||||||||||||||||||
| Risk management activities (1)(2) | $ | (83) | $ | (95) | $ | 30 | $ | (11) | |||||||||||||||
| Income tax Certain Items (3) | 37 | (2) | 11 | (37) | |||||||||||||||||||
| Other | — | 1 | — | 1 | |||||||||||||||||||
| Total Certain Items (4)(5) | $ | (46) | $ | (96) | $ | 41 | $ | (47) | |||||||||||||||
| 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) | Amounts for the periods ended June 30, 2026 and 2025 include $(1) million and $(2) million for the three-month periods, respectively, and $(1) million for the six-month 2026 period reported within “Earnings from equity investments” on the accompanying Preliminary Consolidated Statement of Income of "Risk management activities." | ||||
| (5) | Amounts for the three and six-month periods ended June 30, 2025 includes $(1) and $1 million, respectively, reported within "Interest, net" on the accompanying Preliminary Consolidated Statement of Income of “Risk management activities.” | ||||
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, our 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, our 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 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 as reconciled in the notes to the accompanying Preliminary Consolidated Balance Sheets in Table 5.
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 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,” “projects,” and similar expressions identify forward-looking statements, which are generally not historical in nature. Forward-looking statements in this news release include, among others, express or implied statements pertaining to: the long-term demand for KMI’s assets and services; KMI’s 2026 expectations; anticipated dividends; KMI’s capital projects, including the regulatory environment for projects and expected costs, completion timing, and benefits of those projects; and proposed joint ventures. 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; trends expected to drive new natural gas demand for electricity generation; commodity prices; counterparty financial risk; changes in tariffs and trade restrictions; repercussions of recent armed conflicts in the Middle East; including commodity price volatility and potential adverse effects on financial and economic conditions; our ability to obtain required permits and approvals for pending expansion projects when expected; KMI’s ability to negotiate terms of the proposed Western Gateway Pipeline joint venture with Phillips 66; 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, 2025 (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.
| CONTACTS | ||||||||
| Dave Conover | Investor Relations | |||||||
| Media Relations | (800) 348-7320 | |||||||
| Newsroom@kindermorgan.com | km_ir@kindermorgan.com | |||||||
| Table 1 | |||||||||||||||||||||||||||||||||||
| Kinder Morgan, Inc. and Subsidiaries | |||||||||||||||||||||||||||||||||||
| Preliminary Consolidated Statements of Income | |||||||||||||||||||||||||||||||||||
| (In millions, except per share amounts, unaudited) | |||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, | % change | Six Months Ended June 30, | % change | ||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||
| Revenues | $ | 4,477 | $ | 4,042 | $ | 9,305 | $ | 8,283 | |||||||||||||||||||||||||||
| Operating costs, expenses, and other | |||||||||||||||||||||||||||||||||||
| Costs of sales (exclusive of items shown separately below) | 1,405 | 1,211 | 3,154 | 2,687 | |||||||||||||||||||||||||||||||
| Operations and maintenance | 806 | 773 | 1,517 | 1,484 | |||||||||||||||||||||||||||||||
| Depreciation, depletion, and amortization | 620 | 616 | 1,253 | 1,226 | |||||||||||||||||||||||||||||||
| General and administrative | 192 | 188 | 376 | 375 | |||||||||||||||||||||||||||||||
| Taxes, other than income taxes | 120 | 111 | 234 | 223 | |||||||||||||||||||||||||||||||
| Other income, net | (12) | (9) | (19) | (9) | |||||||||||||||||||||||||||||||
| Total operating costs, expenses, and other | 3,131 | 2,890 | 6,515 | 5,986 | |||||||||||||||||||||||||||||||
| Operating income | 1,346 | 1,152 | 2,790 | 2,297 | |||||||||||||||||||||||||||||||
| Other income (expense) | |||||||||||||||||||||||||||||||||||
| Earnings from equity investments | 225 | 206 | 479 | 426 | |||||||||||||||||||||||||||||||
| Interest, net | (425) | (452) | (855) | (903) | |||||||||||||||||||||||||||||||
| Other, net | 20 | 13 | 40 | 28 | |||||||||||||||||||||||||||||||
| Income before income taxes | 1,166 | 919 | 2,454 | 1,848 | |||||||||||||||||||||||||||||||
| Income tax expense | (272) | (177) | (559) | (363) | |||||||||||||||||||||||||||||||
| Net income | 894 | 742 | 1,895 | 1,485 | |||||||||||||||||||||||||||||||
| Net income attributable to NCI | (27) | (27) | (52) | (53) | |||||||||||||||||||||||||||||||
| Net income attributable to Kinder Morgan, Inc. | $ | 867 | $ | 715 | $ | 1,843 | $ | 1,432 | |||||||||||||||||||||||||||
| Class P Shares | |||||||||||||||||||||||||||||||||||
| Basic and diluted earnings per share | $ | 0.39 | $ | 0.32 | 22 | % | $ | 0.82 | $ | 0.64 | 28 | % | |||||||||||||||||||||||
| Basic and diluted weighted average shares outstanding | 2,225 | 2,222 | — | % | 2,225 | 2,222 | — | % | |||||||||||||||||||||||||||
| Declared dividends per share | $ | 0.2975 | $ | 0.2925 | 2 | % | $ | 0.595 | $ | 0.585 | 2 | % | |||||||||||||||||||||||
| Adjusted Net Income Attributable to Kinder Morgan, Inc. (1) | $ | 821 | $ | 619 | 33 | % | $ | 1,884 | $ | 1,385 | 36 | % | |||||||||||||||||||||||
| Adjusted EPS (1) | $ | 0.37 | $ | 0.28 | 32 | % | $ | 0.84 | $ | 0.62 | 35 | % | |||||||||||||||||||||||
| Note | |||||
| (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 June 30, | % change | Six Months Ended June 30, | % change | ||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||
| Net income attributable to Kinder Morgan, Inc. | $ | 867 | $ | 715 | 21 | % | $ | 1,843 | $ | 1,432 | 29 | % | |||||||||||||||||||||||
| Certain Items (1) | |||||||||||||||||||||||||||||||||||
| Risk management activities | (83) | (95) | 30 | (11) | |||||||||||||||||||||||||||||||
| Income tax Certain Items | 37 | (2) | 11 | (37) | |||||||||||||||||||||||||||||||
| Other | — | 1 | — | 1 | |||||||||||||||||||||||||||||||
| Total Certain Items | (46) | (96) | 52 | % | 41 | (47) | 187 | % | |||||||||||||||||||||||||||
| Adjusted Net Income Attributable to Kinder Morgan, Inc. | $ | 821 | $ | 619 | 33 | % | $ | 1,884 | $ | 1,385 | 36 | % | |||||||||||||||||||||||
| Net income attributable to Kinder Morgan, Inc. | $ | 867 | $ | 715 | 21 | % | $ | 1,843 | $ | 1,432 | 29 | % | |||||||||||||||||||||||
| Total Certain Items (2) | (46) | (96) | 41 | (47) | |||||||||||||||||||||||||||||||
| Net income allocated to participating securities and other (3) | (4) | (4) | (10) | (8) | |||||||||||||||||||||||||||||||
| Adjusted Net Income Attributable to Common Stock | $ | 817 | $ | 615 | 33 | % | $ | 1,874 | $ | 1,377 | 36 | % | |||||||||||||||||||||||
| Net income attributable to Kinder Morgan, Inc. | $ | 867 | $ | 715 | 21 | % | $ | 1,843 | $ | 1,432 | 29 | % | |||||||||||||||||||||||
| Total Certain Items (2) | (46) | (96) | 41 | (47) | |||||||||||||||||||||||||||||||
| DD&A | 620 | 616 | 1,253 | 1,226 | |||||||||||||||||||||||||||||||
| Income tax expense (4) | 235 | 179 | 548 | 400 | |||||||||||||||||||||||||||||||
| Interest, net (5) | 425 | 453 | 855 | 902 | |||||||||||||||||||||||||||||||
| Amounts associated with joint ventures | |||||||||||||||||||||||||||||||||||
| Unconsolidated JV DD&A (6) | 92 | 100 | 183 | 200 | |||||||||||||||||||||||||||||||
| Remove consolidated JV partners' DD&A | (15) | (16) | (31) | (31) | |||||||||||||||||||||||||||||||
| Unconsolidated JV income tax expense (7) | 21 | 21 | 46 | 47 | |||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 2,199 | $ | 1,972 | 12 | % | $ | 4,738 | $ | 4,129 | 15 | % | |||||||||||||||||||||||
| 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 each of the periods ended June 30, 2026 and 2025 includes Adjusted net income in excess of distributions for participating securities of less than $1 million. | ||||
| (4) | To avoid duplication, adjustments for income tax expense for the periods ended June 30, 2026 and 2025 exclude $37 million and $(2) million for the three-month periods, respectively, and $11 million and $(37) million for the six-month periods, respectively, which amounts are already included within “Certain Items.” See table included in “Non-GAAP Financial Measures—Certain Items.” | ||||
| (5) | To avoid duplication, adjustments for interest, net excludes $(1) million and $1 million for the three and six-month periods ended June 30, 2025, respectively, which amounts are already included within “Certain Items.” See table included in “Non-GAAP Financial Measures—Certain Items.” | ||||
| (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 June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Segment EBDA (1) | |||||||||||||||||||||||
| Natural Gas Pipelines Segment EBDA | $ | 1,520 | $ | 1,436 | $ | 3,231 | $ | 2,889 | |||||||||||||||
| Certain Items (2) | |||||||||||||||||||||||
| Risk management activities | (59) | (89) | 27 | (9) | |||||||||||||||||||
| Natural Gas Pipelines Adjusted Segment EBDA | $ | 1,461 | $ | 1,347 | $ | 3,258 | $ | 2,880 | |||||||||||||||
| Products Pipelines Segment EBDA | $ | 343 | $ | 289 | $ | 663 | $ | 562 | |||||||||||||||
| Certain Items (2) | |||||||||||||||||||||||
| Risk management activities | (4) | — | 1 | 1 | |||||||||||||||||||
| Products Pipelines Adjusted Segment EBDA | $ | 339 | $ | 289 | $ | 664 | $ | 563 | |||||||||||||||
| Terminals Segment EBDA | $ | 310 | $ | 300 | $ | 639 | $ | 575 | |||||||||||||||
| Certain Items (2) | |||||||||||||||||||||||
| Risk management activities | (1) | — | — | — | |||||||||||||||||||
| Terminals Adjusted Segment EBDA | $ | 309 | $ | 300 | $ | 639 | $ | 575 | |||||||||||||||
CO2 Segment EBDA | $ | 226 | $ | 150 | $ | 394 | $ | 331 | |||||||||||||||
| Certain Items (2) | |||||||||||||||||||||||
| Risk management activities | (19) | (5) | 2 | (4) | |||||||||||||||||||
CO2 Adjusted Segment EBDA | $ | 207 | $ | 145 | $ | 396 | $ | 327 | |||||||||||||||
| 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 June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Natural Gas Pipelines | |||||||||||||||||||||||
| Natural gas transport volumes (BBtu/d) | 47,886 | 44,818 | 48,830 | 45,509 | |||||||||||||||||||
| Natural gas sales volumes (BBtu/d) | 3,908 | 2,832 | 3,900 | 2,716 | |||||||||||||||||||
| Gathering volumes (BBtu/d) | 4,637 | 3,692 | 4,479 | 3,725 | |||||||||||||||||||
| NGL transport (MBbl/d) | 52 | 39 | 48 | 35 | |||||||||||||||||||
| Products Pipelines (MBbl/d) | |||||||||||||||||||||||
| Gasoline (2) | 970 | 1,016 | 941 | 975 | |||||||||||||||||||
| Diesel fuel | 357 | 369 | 349 | 353 | |||||||||||||||||||
| Jet fuel | 296 | 325 | 294 | 314 | |||||||||||||||||||
| Total refined product volumes | 1,623 | 1,710 | 1,584 | 1,642 | |||||||||||||||||||
| Crude and condensate | 421 | 503 | 420 | 490 | |||||||||||||||||||
| Total delivery volumes (MBbl/d) | 2,044 | 2,213 | 2,004 | 2,132 | |||||||||||||||||||
| Terminals | |||||||||||||||||||||||
| Liquids leasable capacity (MMBbl) | 78.6 | 78.7 | 78.6 | 78.7 | |||||||||||||||||||
| Liquids utilization % (3) | 93.0 | % | 94.4 | % | 93.2 | % | 94.3 | % | |||||||||||||||
| Bulk transload tonnage (MMtons) | 12.9 | 12.6 | 25.0 | 24.8 | |||||||||||||||||||
CO2 (MBbl/d) | |||||||||||||||||||||||
| SACROC oil production | 21.11 | 18.42 | 20.68 | 18.84 | |||||||||||||||||||
| Yates oil production | 5.88 | 6.01 | 5.77 | 5.98 | |||||||||||||||||||
| Other | 1.05 | 1.09 | 1.05 | 1.09 | |||||||||||||||||||
| Total oil production - net (MBbl/d) (4) | 28.04 | 25.52 | 27.50 | 25.91 | |||||||||||||||||||
| NGL sales volumes - net (MBbl/d) (4) | 9.80 | 9.03 | 9.77 | 9.16 | |||||||||||||||||||
CO2 sales volumes - net (Bcf/d) | 0.306 | 0.291 | 0.309 | 0.301 | |||||||||||||||||||
| RNG sales volumes (BBtu/d) | 13 | 12 | 13 | 10 | |||||||||||||||||||
| Realized weighted average oil price ($ per Bbl) | $ | 73.78 | $ | 67.60 | $ | 69.71 | $ | 67.99 | |||||||||||||||
| Realized weighted average NGL price ($ per Bbl) | $ | 33.38 | $ | 32.08 | $ | 31.71 | $ | 33.74 | |||||||||||||||
CO2 Segment Hedges | Remaining 2026 | 2027 | 2028 | ||||||||||||||
| Crude Oil (5) | |||||||||||||||||
| Price ($ per Bbl) | $ | 64.54 | $ | 63.92 | $ | 67.28 | |||||||||||
| Volume (MBbl/d) | 23.15 | 18.10 | 11.30 | ||||||||||||||
| NGLs | |||||||||||||||||
| Price ($ per Bbl) | $ | 42.42 | $ | 52.33 | |||||||||||||
| Volume (MBbl/d) | 4.18 | 0.99 | |||||||||||||||
| 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) | |||||||||||
| June 30, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 89 | $ | 63 | |||||||
| Other current assets | 2,499 | 2,691 | |||||||||
| Property, plant, and equipment, net | 40,522 | 39,331 | |||||||||
| Investments | 7,705 | 7,532 | |||||||||
| Goodwill | 20,084 | 20,084 | |||||||||
| Deferred charges and other assets | 3,163 | 3,047 | |||||||||
| Total assets | $ | 74,062 | $ | 72,748 | |||||||
| Liabilities and Stockholders' Equity | |||||||||||
| Short-term debt | $ | 2,443 | $ | 1,226 | |||||||
| Other current liabilities | 3,204 | 3,096 | |||||||||
| Long-term debt | 29,701 | 30,597 | |||||||||
| Debt fair value adjustments | 104 | 180 | |||||||||
| Other | 5,731 | 5,200 | |||||||||
| Total liabilities | 41,183 | 40,299 | |||||||||
| Other stockholders' equity | 31,681 | 31,117 | |||||||||
| Accumulated other comprehensive (loss) income | (50) | 45 | |||||||||
| Total KMI stockholders' equity | 31,631 | 31,162 | |||||||||
| Noncontrolling interests | 1,248 | 1,287 | |||||||||
| Total stockholders' equity | 32,879 | 32,449 | |||||||||
| Total liabilities and stockholders' equity | $ | 74,062 | $ | 72,748 | |||||||
| Net Debt (1) | $ | 32,027 | $ | 31,716 | |||||||
| Adjusted EBITDA Twelve Months Ended (2) | |||||||||||
| Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Last Twelve Months Adjusted EBITDA | June 30, | December 31, | |||||||||
| 2026 | 2025 | ||||||||||
| Net income attributable to Kinder Morgan, Inc. | $ | 3,467 | $ | 3,056 | |||||||
| Total Certain Items (3) | (69) | (157) | |||||||||
| DD&A | 2,480 | 2,453 | |||||||||
| Income tax expense (4) | 982 | 834 | |||||||||
| Interest, net (4) | 1,741 | 1,788 | |||||||||
| Amounts associated with joint ventures | |||||||||||
| Unconsolidated JV DD&A (5) | 372 | 391 | |||||||||
| Less: Consolidated JV partners' DD&A | (62) | (63) | |||||||||
| Unconsolidated JV income tax expense | 89 | 89 | |||||||||
| Adjusted EBITDA | $ | 9,000 | $ | 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 $28 million and $44 million as of June 30, 2026 and December 31, 2025, respectively, as we have entered into swaps to convert that debt to U.S.$. | ||||
| (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 June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| KMI FCF | |||||||||||||||||||||||
| Net income attributable to Kinder Morgan, Inc. | $ | 867 | $ | 715 | $ | 1,843 | $ | 1,432 | |||||||||||||||
| Net income attributable to noncontrolling interests | 27 | 27 | 52 | 53 | |||||||||||||||||||
| DD&A | 620 | 616 | 1,253 | 1,226 | |||||||||||||||||||
| Deferred income taxes | 295 | 160 | 576 | 327 | |||||||||||||||||||
| Earnings from equity investments | (225) | (206) | (479) | (426) | |||||||||||||||||||
| Distribution of equity investment earnings (1) | 213 | 212 | 363 | 397 | |||||||||||||||||||
| Working capital and other items | 163 | 125 | (157) | (198) | |||||||||||||||||||
| Cash flow from operations | 1,960 | 1,649 | 3,451 | 2,811 | |||||||||||||||||||
| Capital expenditures (GAAP) | (982) | (647) | (1,786) | (1,413) | |||||||||||||||||||
| FCF | 978 | 1,002 | 1,665 | 1,398 | |||||||||||||||||||
| Dividends paid | (665) | (654) | (1,319) | (1,296) | |||||||||||||||||||
| FCF after dividends | $ | 313 | $ | 348 | $ | 346 | $ | 102 | |||||||||||||||
| Note | |||||
| (1) | Periods ended June 30, 2026 and 2025 exclude distributions from equity investments in excess of cumulative earnings of $50 million and $47 million for the three-month periods, respectively, and $96 million and $92 million for the six-month periods, respectively. These are included in cash flows from investing activities on our consolidated statement of cash flows. | ||||