Kinder Morgan earnings increased in the quarter ended September 30, 2026, as higher revenue and stronger natural gas operations supported profitability. Results announced on October 21 showed net income attributable to the company of $764 million, up from $628 million a year earlier, alongside a record $13.2 billion natural gas expansion project backlog.
Key Takeaways
- Quarterly revenue rose 9.3% to $4.53 billion, while net income increased about 22%.
- Natural gas projects accounted for $13.2 billion of the company’s $14.4 billion expansion backlog.
- Management expects full-year adjusted earnings and adjusted EBITDA to exceed its original 2026 budget.
Table of Contents
- Kinder Morgan earnings grow alongside operating costs
- Natural gas demand drives a larger project pipeline
- Operating volumes show an uneven business mix
- Full-year outlook remains above the original budget
- Conclusion
Kinder Morgan earnings grow alongside operating costs
Kinder Morgan’s third-quarter 2026 financial results showed revenue of $4.531 billion, compared with $4.146 billion a year earlier. Operating costs, expenses and other rose to $3.371 billion from $3.083 billion, broadly matching the pace of revenue growth.
Adjusted net income attributable to Kinder Morgan reached $792 million, up 22%. The adjusted figure excludes certain items, including legal and environmental accruals, a divestiture gain and tax adjustments. It is distinct from the company’s reported net income.
Executive Chairman Richard Kinder attributed the performance to the company’s asset network and long-term, fee-based contracts. Those agreements provide a measure of cash-flow stability, although they do not eliminate operational, regulatory or commodity-related risks.
| Item | Details |
|---|---|
| Third-quarter reported EPS | $0.34, up 21% year over year. |
| Third-quarter adjusted EPS | $0.35, up 21% year over year. |
| Third-quarter adjusted EBITDA | $2.18 billion, up 9% year over year. |
| Quarter-end net debt to adjusted EBITDA | 3.5 times. |
| Approved quarterly dividend | $0.2975 per share, up 2% from the third quarter of 2025. |
| Dividend schedule | Record date: November 2, 2026; payment date: November 16, 2026. |
Natural gas demand drives a larger project pipeline
The total expansion backlog increased by $4.7 billion from the second quarter to $14.4 billion. That reflected $5.4 billion of additions, partly offset by $700 million of projects placed in service. More than 75% of the backlog was associated with projects supporting power generation and local distribution company demand.
Two major additions were Southeast Connector and Permian Link. Southeast Connector is designed to move up to 2.6 billion cubic feet of natural gas per day, with Kinder Morgan’s share of costs expected to be $3.1 billion. Phased service is expected to begin in the fourth quarter of 2030, subject to permits and approvals.
Permian Link is designed to provide approximately 2.8 billion cubic feet per day of capacity and serve new power generation for a hyperscaler. Kinder Morgan’s share of the approximately $4.2 billion project is about $1.6 billion. Its expected third-quarter 2030 startup also depends on timely approvals.
These investments expand the company’s contracted development pipeline, but the major projects are not yet operating assets or current-quarter earnings contributions.
Operating volumes show an uneven business mix
Natural gas transport volumes rose 3% year over year, supported by LNG deliveries on Tennessee Gas Pipeline and demand on the Texas Intrastate system. Gathering volumes increased 14%, primarily on the KinderHawk system.
Other operations were less uniform. Refined-products volumes fell 3%, while crude and condensate volumes declined 11%. Terminals earnings nevertheless improved, helped by expansion projects already in service, stronger coal and petroleum coke handling, and higher tanker rates.
The contrast shows why the company’s overall earnings growth should not be read as evidence of rising throughput across every business.
Full-year outlook remains above the original budget
Management expects 2026 adjusted EBITDA to finish more than 6% above its $8.6 billion budget and adjusted earnings per share to be more than 13% above its $1.36 budget. These are forward-looking expectations, not completed annual results.
Kinder Morgan also expects year-end net debt to adjusted EBITDA of 3.6 times, compared with its original 3.8-times budget. Adjusted earnings, adjusted EBITDA and the leverage ratio are non-GAAP measures and should be considered alongside reported results.
Conclusion
Kinder Morgan’s stronger quarterly profit came with a substantially larger development backlog, much of which will take years to enter service. The next confirmed shareholder dates are the November 2 dividend record date and November 16 payment, while management’s above-budget expectations remain the benchmark for full-year 2026 results.
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