Kinder Morgan's Gas Bet Delivers Record Earnings and Project Momentum

HOUSTON, TX – July 22, 2026 – Energy infrastructure giant Kinder Morgan, Inc. (NYSE: KMI) today announced record-breaking second-quarter financial results, underscoring the success of its strategic focus on natural gas and the resilience of its fee-based business model. The company posted its highest-ever Q2 net income and adjusted earnings, raised its dividend for the ninth consecutive year, and signaled strong momentum with a massive project backlog aimed at servicing America’s growing appetite for natural gas.

A Record Quarter Fueled by Financial Discipline

Kinder Morgan reported a second-quarter net income attributable to KMI of $867 million, a robust 21% increase from the same period in 2025. On an adjusted basis, which strips out certain non-cash and non-recurring items, the performance was even more striking, with adjusted earnings per share (EPS) climbing 32% to $0.37, comfortably beating analyst consensus estimates. Adjusted EBITDA, a key metric of operational cash flow for the midstream sector, also hit a second-quarter record at $2.2 billion, up 12% year-over-year.

This financial strength translated directly into shareholder returns. The board of directors declared a 2% dividend increase to $0.2975 per share. “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,” said Executive Chairman Richard D. Kinder, highlighting the foundation of the company's performance.

Despite the strong earnings beat, the market reaction was muted, with KMI’s stock remaining largely flat in the hours following the announcement. This suggests that while the results were impressive, they confirmed rather than altered the market's existing positive view. The company's stock has already outperformed the broader market year-to-date, gaining nearly 18%. The firm’s financial stability was further bolstered by a healthy balance sheet, ending the quarter with a Net Debt-to-Adjusted EBITDA ratio of 3.6 times, at the low end of its target range. This strong financial footing, affirmed by a recent credit rating upgrade to Baa1 from Moody’s, provides KMI with the flexibility to pursue its ambitious growth plans.

“Strong financial contributions from our business segments resulted in a record second quarter,” stated Chief Executive Officer Kim Dang. “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.”

The Natural Gas Nexus

The driving force behind Kinder Morgan’s success and its future strategy is the unabated demand for natural gas. The company’s results reveal a significant uptick in activity, with natural gas transport volumes rising 7% and gathering volumes surging 26% compared to the second quarter of 2025. According to company president Dax Sanders, this growth was primarily driven by increasing deliveries to LNG export terminals, rising power generation demand, and higher exports to Mexico.

This performance is not an anomaly but a reflection of a long-term strategic pivot. Approximately 92% of the company’s formidable $9.6 billion project backlog is dedicated to natural gas infrastructure. These projects are designed to connect the prolific supply basins of the United States, like the Permian, to demand centers across North America and, increasingly, the world.

Demand is surging from three key areas: LNG exports, as global markets seek reliable energy sources; domestic power generation, where natural gas provides a crucial backstop for intermittent renewable energy and replaces retiring coal plants; and industrial expansion, where it serves as both a fuel and a feedstock. Kinder Morgan’s expansive network is the circulatory system meeting this demand. As Mr. Kinder noted, “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.”

From Blueprints to Bottom Line

Demonstrating its ability to execute on its strategy, Kinder Morgan placed approximately $660 million worth of capital projects into service during the quarter. These newly operational assets are already contributing to the bottom line and include:

• The Gulf Coast Express (GCX) Pipeline Expansion: This $450 million project increases natural gas transport capacity from the Permian Basin to South Texas markets by approximately 570 million cubic feet per day, directly supporting the region's industrial and LNG export growth.
• The TGP Cumberland Project: A new $235 million, 32-mile pipeline in Tennessee built to supply the Tennessee Valley Authority’s new natural gas-fired power plant, highlighting the symbiotic relationship between pipeline infrastructure and the power grid.
• The Hiland Express Pipeline: This project involved converting the company’s Double H Pipeline from crude oil to natural gas liquids (NGL) service, a move that showcases KMI’s ability to adapt its asset base to capture more valuable market opportunities.

While these completions reduced the size of the project backlog from the prior quarter, the pipeline of future growth remains robust. The board provided contingent approval for nearly $400 million in new projects not yet in the backlog. Major multi-billion-dollar projects like the South System Expansion 4 (SSE4) and the Mississippi Crossing (MSX) project recently received a favorable Final Environmental Impact Statement from federal regulators, with a final certificate expected by the end of July. These projects, when completed, will add billions of cubic feet per day of capacity to the Southeast U.S. As a result of its performance, KMI raised its full-year guidance, now expecting to beat its 2026 budget for Adjusted EBITDA by more than 5% and for Adjusted EPS by more than 12%.

A Diversified and Resilient Portfolio

While natural gas pipelines are the star performer, all of Kinder Morgan’s business segments contributed positively to the record quarter. The Products Pipelines segment saw earnings rise due to higher commodity prices, even as refined product volumes dipped slightly because of the Double H pipeline conversion and temporary supply disruptions on the West Coast. The Terminals business benefited from higher rates at its crucial Houston Ship Channel liquids hub and strong performance from its fully contracted Jones Act tanker fleet. Even the CO2 segment, which includes enhanced oil recovery and emerging energy transition ventures, saw earnings increase on higher commodity prices and a 15% volume increase at its largest field. This diversified portfolio provides multiple streams of cash flow, further cementing the company's financial stability and its capacity to execute on its long-term vision for growth.