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A month has gone by since the last earnings report for Kinder Morgan (KMI - Free Report) . Shares have lost about 3.5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Kinder Morgan due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Kinder Morgan, Inc. before we dive into how investors and analysts have reacted as of late.

Kinder Morgan Q2 Earnings Beat EstimatesKinder Morgan reported second-quarter 2026 adjusted earnings of 37 cents per share, beating the Zacks Consensus Estimate of 31 cents by 19.35%. Earnings increased 32.1% from 28 cents in the year-ago quarter.

Revenues increased 10.8% year over year to $4.48 billion from the prior year’s figure of $4.04 billion. Revenues surpassed the consensus estimate of $4.29 billion by 4.43%.

Strong quarterly results benefited from broad-based segment growth, led by higher natural gas transportation and gathering volumes. Natural gas transport volumes rose 7%, while gathering volumes increased 26%.

KMI's Natural Gas Business Leads GrowthNatural Gas Pipelines adjusted segment earnings before depreciation, depletion and amortization (EBDA) expenses increased to $1.46 billion from $1.35 billion a year earlier. Higher contributions from the Texas Intrastate system and gathering assets supported the improvement.

Transportation volumes averaged 47,886 billion British thermal unit per day (BBtu/d) compared with 44,818 BBtu/d in the prior-year quarter. Growth reflected higher LNG deliveries on the Tennessee Gas Pipeline, stronger Texas Intrastate demand, higher export volumes to Mexico and increased power-generation demand in Arizona.

Gathering volumes advanced to 4,637 BBtu/d from 3,692 BBtu/d. KinderHawk volumes rose 54%, supported by increased Haynesville activity. Management noted that the system is effectively full and is adding 1 billion cubic feet per day of treating capacity.

Kinder Morgan's Other Segments AdvanceProducts Pipelines adjusted segment EBDA increased to $339 million from $289 million. Higher commodity prices and stronger butane blending volumes and rates more than offset weaker transportation activity.

Due to a temporary disruption of the West Coast supply and higher commodity prices, total refined product volumes declined 5% to 1.62 million barrels per day (MMBbl/d) from the year-ago figure of 1.71 MMBbl/d. Crude and condensate volumes fell 16% to 421,000 barrels per day (Bbl/d), largely because the Double H system was converted from crude oil to natural gas liquids service.

Terminals adjusted segment EBDA rose to $309 million from $300 million. Higher liquids terminal rates, ancillary fees and favorable commodity pricing supported results. Liquids utilization was 93%, while the Jones Act tanker fleet remained fully contracted for 2026.

CO2 adjusted segment EBDA increased to $207 million from $145 million. Total net oil production increased 10% to 28,040 Bbl/d, driven by a 15% rise in SACROC production. The realized weighted average oil price increased to $73.78 per barrel from $67.60, while the realized weighted average NGL price was $33.38 per barrel, higher than the $32.08 per barrel recorded a year earlier.

KMI's Cost Profile Supports Profit GrowthTotal operating costs, expenses and other expenditures increased 8.3% year over year to $3.13 billion. Costs of sales rose to $1.41 billion from $1.21 billion, while operations and maintenance expenses increased to $806 million from $773 million.

Operating income increased 16.8% to $1.35 billion. The operating margin expanded to 30.1% from 28.5%, reflecting revenue growth that outpaced increases in operating expenses.

Adjusted EBITDA reached a second-quarter record of $2.20 billion, up 12% year over year. Net income attributable to KMI increased 21% to $867 million, while reported earnings rose to 39 cents per share from 32 cents.

Kinder Morgan Expands Project PipelineThe project backlog stood at $9.6 billion at the end of the quarter, down from $10.1 billion sequentially after approximately $660 million of expansion projects entered service. Natural gas projects represented about 92% of the backlog.

The board also granted contingent approval to nearly $400 million of projects that will enter the backlog after contract execution. Management expects to sanction significant additional projects from an opportunity set exceeding $10 billion during the second half of 2026.

Kinder Morgan's Cash Flow & Balance SheetCash flow from operations was $1.96 billion in the quarter. Meanwhile, free cash flow was $978 million and free cash flow after dividends reached $313 million.

As of June 30, 2026, KMI reported $89 million in cash and cash equivalents. Net debt stood at $32.03 billion at quarter-end. The net debt-to-adjusted EBITDA ratio improved to 3.6X from 3.8X at the end of 2025.

KMI Raises 2026 OutlookKinder Morgan expects full-year adjusted earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) to exceed its original $8.6 billion budget by more than 5%. The company also expects adjusted earnings to surpass its initial $1.36-per-share budget by more than 12%.

The revised guidance reflects strong first-half performance across all business segments.

KMI’s Dividend GrowthThe quarterly dividend was raised 2% to 29.75 cents per share, equivalent to $1.19 per share annually. The dividend is payable Aug. 17, 2026, to shareholders of record as of Aug. 3.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in fresh estimates.

VGM ScoresCurrently, Kinder Morgan has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Kinder Morgan has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Key Takeaways Phillips 66 moves ahead with a $5B pipeline project linking refining and marketing operations.Western Gateway will span 1,300 miles with daily capacity of 230,000 barrels.Primarily 10-year take-or-pay contracts are expected to enhance cash-flow visibility for Phillips 66. Phillips 66 (PSX - Free Report) is taking a significant step to strengthen its integrated business model by moving forward with the proposed Western Gateway Pipeline alongside Kinder Morgan, Inc. (KMI - Free Report) and HF Sinclair Corporation (DINO - Free Report) . The partners have made a final investment decision on the approximately $5 billion Western Gateway Pipeline project, with PSX, KMI, DINO holding a 49.9%, 35.1% and 15% stakes, respectively.

For Phillips 66, the project is strategically important because it will create a new refined-products supply route linking the company's Central Corridor and Gulf Coast refining assets with its marketing operations on the West Coast and in the Southwest.

Western Gateway Expands PSX's Market ReachWestern Gateway is expected to span approximately 1,300 miles and have an initial design capacity of 230,000 barrels per day. About 900 miles of new pipeline will connect Borger, TX, with Phoenix, AZ, while KMI will contribute its existing SFPP East and West Line assets. PSX will construct and operate the new-build pipeline, giving PSX a greater role in the infrastructure supporting the movement of its refined products.

The project is also designed for future expansion with limited additional capital and without requiring new pipe, allowing PSX to benefit from rising fuel demand without committing substantial additional investment. This flexibility could improve the company's ability to serve growing markets while strengthening its refining-to-marketing value chain.

Long-Term Contracts Support Phillips 66's Cash FlowA key investment benefit is the project's primarily 10-year, take-or-pay contracts, which should provide greater visibility into future volumes and cash flows once the system enters service. PSX expects to contribute approximately $2.5 billion in cash, while DINO will invest $750 million and KMI approximately $250 million, in addition to KMI’s contribution to existing assets valued at about $1.5 billion.

Sharing the capital burden with KMI and DINO allows PSX to pursue a large-scale infrastructure opportunity while diversifying its investment exposure. The pipeline is expected to improve supply reliability and potentially reduce transportation costs for customers across the Western United States, strengthening PSX's competitive position.

Pipeline Project Enhances PSX's Competitive PositionFor PSX, Western Gateway could provide benefits beyond the direct earnings contribution from the pipeline. The project is expected to enhance market access for PSX's refineries, improve logistics flexibility and create a more efficient connection between its refining and marketing assets.

The long-term contracted structure is expected to support stable cash generation, while scalable capacity could create further growth opportunities. KMI and DINO bring established infrastructure and refining expertise to the venture, helping distribute project execution responsibilities and risk.

Western Gateway Offers Long-Term Value for Phillips 66Targeted for completion in 2029, Western Gateway is a long-term growth investment rather than an immediate earnings catalyst. However, its combination of contracted volumes, strategic market access, scalable capacity and PSX's integrated operating model could strengthen the company's business model and boost cash-flow generation.

The project represents another opportunity for PSX to leverage its refining and marketing footprint, enhance investor appeal and build durable infrastructure-linked earnings, while potentially enhancing long-term shareholder value.

PSX’s Zacks Rank & Key PicksPhillips 66 currently carries a Zacks Rank #3 (Hold).

Another better-ranked refiner in the energy sector is Valero Energy Corporation (VLO - Free Report) .Valero and Kinder Morgan currently carry a Zacks Rank #2 (Buy) each and HF Sinclair sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Valero operates 14 global refineries with a daily refinery throughput capacity of 3 million barrels. The refiner’s ethanol operations are spread across 12 U.S. ethanol plants. During the second quarter of 2026, VLO recorded strong gains in its ethanol sector. Margins expanded to $1.15 per gallon from 52 cents per gallon and operating income rose to 75 cents per gallon compared with 13 cents per gallon a year earlier.

Key Takeaways Kinder Morgan's $9.6 billion backlog is 92% tied to natural gas infrastructure projects.Kinder Morgan is expanding pipeline capacity to meet rising power generation, LNG and data center demand.Kinder Morgan eyes more than $10 billion of additional project opportunities beyond its existing backlog. Kinder Morgan, Inc. (KMI - Free Report) is entering a growth phase shaped by electricity demand, liquefied natural gas development and utility needs rather than a simple commodity-price upswing.

The company’s opportunity centers on contracted infrastructure. Long-term agreements remain the bridge between supply basins and demand centers that need reliable natural gas transportation and storage.

KMI Gains From Power and Utility DemandKinder Morgan’s project backlog stood at $9.6 billion at the end of the second quarter of 2026. Natural gas projects accounted for about 92% of that backlog, keeping the company’s growth agenda focused on its largest infrastructure franchise.

More than 60% of the backlog supports power generation and local distribution company demand. That mix gives KMI a longer-duration channel tied to electric reliability, population growth and the need for additional gas-fired generation.

KMI’s theme overlaps with other midstream names. The Williams Companies, Inc. (WMB - Free Report) offers investors another way to evaluate natural gas infrastructure exposure, while ONEOK, Inc. (OKE - Free Report) brings a broader midstream mix that includes natural gas liquids, gas gathering and processing, pipelines and refined products.

Kinder Morgan Targets Data Center GrowthThe Amarillo Expansion shows how digital infrastructure is becoming part of the gas-transportation story. Natural Gas Pipeline Company of America is developing the project to serve Texas Panhandle demand, including additional data center development.

The project is expected to provide up to about 550,000 dekatherms per day of incremental firm transportation capacity. All capacity is fully subscribed under a long-term contract, and the approximately $200 million project carries a Kinder Morgan share of about $75 million.

KMI Builds Capacity for LNG ExpansionKinder Morgan is also developing projects to serve roughly 3 billion cubic feet per day of additional liquefied natural gas demand. That opportunity sits beside more than 10 billion cubic feet per day of power-sector demand under development across its gas pipeline network.

The company’s Gulf Coast position matters because export-related demand requires both pipeline takeaway and storage flexibility. As liquefied natural gas capacity expands, KMI’s links to supply basins may help turn demand growth into contracted transportation projects.

Kinder Morgan Sees a Large Project FunnelKMI’s opportunity set exceeds $10 billion beyond projects already sanctioned. Management said it expects significant additions before year-end, likely more than offsetting about $1 billion of projects expected to enter service during the second half of 2026.

This prospective funnel is separate from the existing backlog. Projects still need commercial support, and management’s process remains contract-driven, with final investment decisions tied to agreements that support acceptable returns.

KMI Faces a Capital-Intensive Growth CycleHigh demand on Kinder Morgan’s gas systems is a favorable signal, but it also changes the growth equation. When assets are already highly utilized, future volume growth increasingly depends on new construction instead of simply filling unused capacity.

That raises execution risk. The company has discussed more than $3 billion of annual expansion capital spending based on the current backlog, while large projects still face permitting, regulatory, cost-control and timing risks.

Kinder Morgan’s Earnings Outlook and Estimate TrendsKinder Morgan’s earnings outlook is tied to a multi-year growth cycle, with consensus EPS expected to rise from 83 cents in 2026 to $1.33 in 2027. While the current quarter estimate shows a year-over-year decline, estimates for second-quarter 2026 earnings, full-year 2026 earnings and full-year 2027 earnings point to improving earnings expectations as power, utility and LNG-related infrastructure demand builds.

Image Source: Zacks Investment Research

KMI’s Trend Exposure Remains ConcentratedThe bottom line is that power, liquefied natural gas and utility demand may create a multi-year infrastructure cycle for Kinder Morgan. The opportunity is meaningful because it is tied to contracted capacity, not just short-term changes in gas prices.

The concentration also matters. Natural gas projects dominate the backlog, and low-carbon exposure through renewable natural gas and related activities remains limited relative to the scale of the gas buildout.

KMI currently carries a Zacks Rank #3 (Hold). That rank fits a stock with visible upside drivers but enough uncertainty to keep the investment stance measured. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

KMI has a Momentum Score of A, Value Score of C, Growth Score of C and VGM Score of C.

Its Momentum Score of A supports the idea that the stock has favorable near-term trading characteristics, while its Value Score of C, Growth Score of C and VGM Score of C point to a more neutral broader style profile.

The score mix fits the article’s main takeaway. KMI’s infrastructure-cycle thesis has stronger support from momentum than from standout value or growth signals, so investors may want to weigh the backlog opportunity against execution demands and concentrated gas exposure.

For the quarter ended June 2026, Kinder Morgan (KMI - Free Report) reported revenue of $4.48 billion, up 10.8% over the same period last year. EPS came in at $0.37, compared to $0.28 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $4.29 billion, representing a surprise of +4.33%. The company delivered an EPS surprise of +19.36%, with the consensus EPS estimate being $0.31.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Kinder Morgan performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Realized weighted average oil price: $/73.78 versus the two-analyst average estimate of $/72.56.Realized weighted average NGL price: $/33.38 versus the two-analyst average estimate of $/35.64.Terminals - Liquids leasable capacity: 78.60 MMBBL versus the two-analyst average estimate of 78.65 MMBBL.NGL sales volumes - net: 9.8 millions of barrels of oil compared to the 9.73 millions of barrels of oil average estimate based on two analysts.CO2 sales volumes - net: 0.31 Bcf/D versus the two-analyst average estimate of 0.31 Bcf/D.Total oil production - net: 28.04 millions of barrels of oil versus 26.25 millions of barrels of oil estimated by two analysts on average.Terminals - Bulk transload tonnage: 12.90 MMTon versus 12.25 MMTon estimated by two analysts on average.Segment EBDA- Natural gas Pipelines: $1.52 billion versus $1.43 billion estimated by two analysts on average.Segment EBDA- Terminals: $310 million compared to the $293.64 million average estimate based on two analysts.Segment EBDA- Products Pipelines: $343 million versus $305.31 million estimated by two analysts on average.Segment EBDA- CO2: $226 million versus $189.27 million estimated by two analysts on average.View all Key Company Metrics for Kinder Morgan here>>>

Shares of Kinder Morgan have returned -0.7% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

HOUSTON--(BUSINESS WIRE)--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.

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

%

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

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

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Kinder Morgan (NYSE:KMI) Kinder Morgan (NYSE:KMI) is the asterisk pick. It is a reliable dividend grower rather than a true Aristocrat, with roughly 8 to 9 years of increases since the 2015 dividend reset. The case rests on cash flow durability and exposure to two structural tailwinds: LNG exports and data center power demand.

Q1 2026 was a step-change quarter. Revenue of $4.83 billion beat the $4.55 billion consensus, EPS of $0.48 beat the $0.39 consensus, and free cash flow of $687 million was up 73% year over year. Adjusted EBITDA rose 18% to $2.54 billion. The Q1 dividend rose to $0.2975 per share, declared April 22, 2026 and paid May 15, 2026, taking the annualized rate to $1.19, a 2% increase.

CEO Kim Dang highlighted the balance sheet: “We were also pleased this quarter to receive an upgrade from Moody’s, which joined the other two rating agencies in classifying the company as the equivalent of BBB+.” The $10.1 billion project backlog is roughly 92% natural gas, with nearly 60% tied to power generation and LDC demand. Management notes that U.S. natural gas demand is expected to grow 17% through 2030, with LNG feedstock contracts moving from 8 Bcf/d toward 12 Bcf/d by the end of 2028.

At $32.32, KMI yields about 4% on a trailing P/E of 22, after a 23% YTD gain. Per Motley Fool, the company has self-funded capex and dividends for seven consecutive years and generated average free cash flow after dividends of more than $1.04 billion annually over the past five years.

Risk: The Q1 beat was partly weather-driven by winter storm Fern, and refined products volumes fell 2% with crude and condensate down 12%. Permitting delays on the backlog remain the swing factor.

What to Watch Next The setup into the second half is straightforward. JNJ’s Enterprise Business Review on December 8, 2026 will refresh the long-term growth framework. MCD’s next earnings print should test whether the U.S. comp recovery extends past the Q4 2025 +7% spike. KMI’s normalized Q2 results, stripped of winter weather, will show whether the run-rate cash flow trajectory holds. For income-focused portfolios, these are cycle-tested payers worth tracking through year-end.