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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 today announced the publication of its 2025 Sustainability Report.

Key Takeaways KMI expects 2026 adjusted EBITDA over 5% above budget and adjusted EPS over 12% above plan.Natural gas projects make up 92% of KMI's $9.6 billion backlog, with additions expected to outpace burn.KMI has room to fund more projects, with each 0.1 turn of leverage adding about $850 million of capacity. Kinder Morgan, Inc. (KMI - Free Report) used its second-quarter 2026 earnings call to make a forward-looking case centered less on the quarter’s beat and more on the scale of natural gas infrastructure demand ahead.

Management’s message was that rising liquefied natural gas (“LNG”) exports, power demand and data center-related load growth are expanding the company’s project runway while leaving balance sheet flexibility intact.

KMI Raises the Bar for 2026Chief executive officer Kimberly Dang said Kinder Morgan outperformed both last year and its internal budget in the first half, prompting a higher outlook for 2026. The company now expects full-year adjusted EBITDA to finish more than 5% above budget and adjusted EPS to land more than 12% above its original plan.

That updated stance followed adjusted EPS of $0.37, up 32% year over year and above the Zacks Consensus Estimate of $0.31. Revenues rose to $4.48 billion from $4.04 billion and topped the Zacks Consensus Estimate of $4.29 billion.

Chief financial officer David Michels added that second-quarter adjusted EBITDA climbed 12% to $2.199 billion, while net debt to adjusted EBITDA ended the quarter at 3.6 times, below the company’s 3.8 times budget and at the low end of its target range.

Kinder Morgan Sees Demand Outrunning Backlog BurnExecutive chairman Richard Kinder framed the broader story around natural gas demand growth and the need for new midstream infrastructure backed by long-term contracts. He said the company expects to make final investment decisions on substantial additional projects during the rest of 2026.

Dang said the backlog slipped to $9.6 billion from roughly $10.1 billion because Kinder Morgan placed more than $650 million of projects into service, but she also noted nearly $400 million of projects have contingent board approval and are close to contract execution.

She also pointed to an opportunity set above $10 billion and said management expects project additions in the second half to more than offset roughly $1 billion scheduled to enter service in that period. Natural gas projects account for about 92% of the existing backlog.

KMI Leans Into Power and LNG Build-OutPresident Dax Sanders said natural gas transport volumes increased 7% in the quarter, supported by LNG deliveries on Tennessee Gas Pipeline, higher intrastate demand, stronger power demand on El Paso and greater exports to Mexico. Gathering volumes rose 26%, with KinderHawk in the Haynesville up 54%.

Management repeatedly tied future expansion to power generation and LNG. Sanders said Kinder Morgan is developing projects tied to more than 10 Bcf per day of gas demand in power and about 3 Bcf per day in LNG.

Dang also highlighted Wood Mackenzie’s outlook for U.S. gas demand to exceed 160 Bcf per day by 2035, with growth driven mainly by LNG exports and electricity demand. Her emphasis suggested KMI sees structural, not temporary, support for its core franchise.

Kinder Morgan Q&A Focuses on CapEx CapacityA Wells Fargo analyst pressed management on whether Kinder Morgan may need to move beyond its usual roughly $3 billion annual growth capital pace if power-related opportunities keep expanding. Dang answered that the current backlog already drives leverage lower over time and that the company has room to fund incremental spending while staying within its leverage framework.

She quantified that flexibility by saying each 0.1 turn of leverage represents about $850 million of capacity, implying meaningful room to fund more projects before reaching 4 times debt to EBITDA.

That exchange mattered because it showed management is not signaling capital restraint as the main bottleneck. The gating factor appears to be contract timing and customer commitments rather than balance sheet capacity.

KMI Uses Q&A to Sharpen Project TimelineAnalyst questions also drew out more detail on individual growth projects. On Western Gateway, Sanders said Kinder Morgan and Phillips 66 have made significant progress on agreements and could reach FID in the next month or two.

On Permian Link, Natural Gas Pipelines President Sital Mody said customer discussions are continuing and targeted the project for a 2030 in-service date, while stressing that contract support remains the key trigger for sanctioning.

Mody also described Tennessee’s Project 219 South as starting with a smaller brownfield-oriented case that can scale if market demand warrants. That answer showed Kinder Morgan is designing projects with optionality rather than committing immediately to the largest configurations.

Kinder Morgan Leaves an Expansion-First ImpressionThe call’s overall tone was confident and disciplined. Management emphasized that all business segments contributed to growth, but the center of the discussion stayed on gas infrastructure, backlog conversion and the ability to fund expansion internally.

Just as important, executives were careful not to overpromise on timing. Across multiple Q&A exchanges, they stressed the size of the opportunity set while keeping the focus on contract execution, permitting and customer negotiations.

What Zacks Signals Say on KMIKMI carries a Zacks Rank #3 (Hold), along with a Value Score of D, Growth Score of C, Momentum Score of D and VGM Score of D. In Zacks terms, the rank suggests a more neutral near-term earnings revision outlook than a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

The Style Scores point to a mixed profile, with the Growth Score standing above the stock’s Value, Momentum and VGM readings. Zacks’ framework generally favors Rank #1 or #2 stocks paired with an A or B Style Score, while Rank #3 names can be held but do not carry the same expected near-term performance profile. The Zacks Rank can also change as analysts revise estimates following the just-reported results.

High-yield dividend stocks tend to be slower-growing companies. However, that's not the case with Kinder Morgan (KMI +0.34%). The natural gas pipeline giant grew adjusted earnings per share by a brisk 32% in the second quarter, driven by robust gas demand. That's providing plenty of support for its 3.7%-yielding dividend.

That strong growth should continue, fueled by rising power demand to support AI data centers and other catalysts. It should give the pipeline stock ample power to continue growing its high-yielding dividend.

Image source: Getty Images.

Robust results Kinder Morgan recently reported its second-quarter results. The gas pipeline giant posted $867 million of net income, a record for the second quarter. Meanwhile, its adjusted earnings rocketed 32% to $0.37 per share.

The company's gas pipeline segment generated nearly $1.5 billion in earnings before depreciation and amortization, up 8.5% from the prior year. Kinder Morgan benefited from a 7% uptick in volumes, driven by liquefied natural gas (LNG) deliveries, increased exports to Mexico, and higher power generation demand. It also benefited from a 17% increase in product pipeline earnings and a 43% surge in carbon dioxide profitability, both largely driven by higher commodity prices.

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Kinder Morgan's strong start to the year has it on track to significantly exceed its budget. The company initially expected to generate $1.37 per share of adjusted earnings this year, up about 8% from last year. It now expects to exceed that budget by 12%. The company's higher earnings are further strengthening its balance sheet. It now expects to end the year with a leverage ratio of 3.6 times, down from its 3.8 times target and at the low end of its target range.

The pipeline company completed $660 million of growth capital projects during the quarter. Notable ones included the Cumberland Project to serve a new gas-fired power plant in Tennessee and the expansion of its Gulf Coast Express pipeline to increase gas flow from the Permian Basin to markets in South Texas. It ended the quarter with a $9.6 billion backlog of expansion projects, down $500 million from the first quarter. However, the company's board recently provided contingent approval for nearly $400 million in additional projects that aren't currently in the backlog, with the bulk supporting power generation and local distribution company demand. These secured projects provide visibility into growth through 2030.

AI power demand is emerging as a major catalyst for gas demand. There are currently 277 gigawatts of power demand from data centers under development in the U.S., representing 42 billion cubic feet per day of potential natural gas capacity to meet peak demand. While developers won't build all that capacity and gas won't be the only power source, it's a meaningful long-term growth driver for Kinder Morgan. It's currently pursuing more than $10 billion of additional gas infrastructure expansion opportunities beyond its current backlog to further enhance and extend its growth profile.

High-powered total return potential Kinder Morgan has increased its high-yielding dividend for nine straight years. That trend seems likely to continue due to surging gas demand from AI power and other catalysts. This growth and income combo should give Kinder Morgan the fuel to generate high-octane total returns, making it a great way to cash in on the AI boom.

3 Dividend Stocks with Growth on Tap for the Second HalfKinder Morgan NYSE: KMI reported second-quarter 2026 results that executives said exceeded both year-earlier levels and the company’s internal budget, as stronger natural gas volumes, higher commodity-related contributions and broad-based segment performance supported the quarter.

Executive Chairman Rich Kinder said the company’s adjusted EBITDA and earnings per share continued to exceed both prior-year results and Kinder Morgan’s 2026 budget “by significant margins.” He said the company continues to benefit from rising demand tied to LNG exports and natural gas-fired power generation, creating additional opportunities for midstream infrastructure backed by long-term contracts.

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Pipelines and Automation: 2 Energy Plays Built for Any Oil PriceCEO Kim Allen Dang called the quarter “another fantastic quarter” and said adjusted EBITDA increased 12% from the second quarter of 2025, while adjusted earnings per share rose 32%. Dang said every business segment contributed positively to the year-over-year performance.

Kinder Morgan Raises 2026 Outlook Dang said Kinder Morgan is raising its full-year guidance after a strong first half and confidence in the remainder of 2026. The company now expects full-year adjusted EBITDA to be at least 5% above its 2026 budget and adjusted EPS to be at least 11% above the original budget.

Kinder Morgan’s Cash Flow Drives Upside: Potential Swells in Q1CFO David Michels said second-quarter net income attributable to Kinder Morgan was $867 million, with EPS of $0.39. Those figures were up 21% and 22%, respectively, from the second quarter of 2025. Adjusted EPS was $0.37, up 32% year over year, and adjusted EBITDA rose 12%.

Michels said EPS came in more than 24% above budget for the quarter, while adjusted EBITDA was more than 9% above budget. Year to date, he said EBITDA has grown 15% and adjusted EPS has grown 35% compared with 2025.

The company declared a quarterly dividend of $0.2975 per share, or $1.19 annualized, representing a 2% increase over 2025.

Natural Gas Demand Drives Growth Opportunities Dang said the fundamentals supporting Kinder Morgan’s natural gas business “have never been stronger.” Citing Wood Mackenzie’s latest outlook, she said U.S. natural gas demand is expected to exceed 160 billion cubic feet per day by 2035, an increase of about 46 Bcf per day compared with 2025. Dang said the primary drivers are increased LNG export capacity and rapidly growing power demand.

President Dax Sanders said natural gas transport volumes increased 7% from the second quarter of 2025. He cited several drivers, including increased LNG feed gas deliveries on Tennessee Gas Pipeline, higher demand on Kinder Morgan’s intrastate system, increased power demand along the El Paso pipeline and greater exports to Mexico.

Sanders said natural gas gathering volumes increased 26% year over year, with the largest contribution from the KinderHawk system in the Haynesville, where volumes rose 54%.

Sanders said Kinder Morgan is evaluating projects to serve more than 10 Bcf per day of natural gas demand in the power generation sector and about 3 Bcf per day in the LNG sector.

Backlog Remains Near Historic Highs Dang said Kinder Morgan’s project backlog stood at approximately $9.6 billion at the end of the quarter, down from about $10.1 billion. The decline was mainly due to the company placing more than $650 million of projects into service, partly offset by about $200 million of new project additions.

Dang said the board contingently approved nearly $400 million of projects that are in advanced contract negotiations. Those projects will be added to the backlog upon contract execution, which she said would “virtually” offset the quarter’s backlog decline.

Dang also said the company expects to add significant projects from its more than $10 billion opportunity set before year-end, likely more than offsetting the roughly $1 billion of projects expected to enter service during the second half of 2026.

Kinder Morgan’s three largest natural gas expansion projects — Mississippi Crossing, South System Expansion Four and Trident — remain on schedule and on budget, Dang said. Mississippi Crossing and South System Expansion Four received final FERC environmental impact statements in June, and the company expects FERC certificates by the end of the month. Trident is about 60% complete.

During the question-and-answer session, Dang said Kinder Morgan has room to fund additional capital spending while remaining within its leverage targets. She said the company ended the quarter at 3.6 times leverage and could add $3.4 billion of balance sheet capacity if leverage moved to 4.0 times.

Segment Performance Mixed Outside Natural Gas In products pipelines, Sanders said refined product volumes declined 5% compared with the second quarter of 2025. Crude and condensate volumes were down 16% from the first quarter of 2025, mostly due to the removal of Double H from service for an NGL conversion early in the third quarter of 2025. Excluding Double H volumes in both periods, crude and condensate volumes were down about 5% year over year.

Sanders said Kinder Morgan and Phillips 66 continue to move forward on Western Gateway. He said partnership agreements have taken longer than expected because of the complexity of the proposed arrangement, but the company aims to complete documents within the next month or two and, assuming progress continues, move to a final investment decision.

In terminals, Sanders said liquids lease capacity remained high at 93%, and utilization of tanks available for use was about 99% at key hubs on the Houston Ship Channel and at Carteret. He said the tanker fleet remains well contracted, assuming likely options are exercised, with 100% leased through 2026, 97% leased through 2027 and 80% leased through 2028.

The CO₂ segment reported 10% higher net oil production volumes compared with the second quarter of 2025, led by a 15% increase at SACROC. NGL volumes rose 9%, while CO₂ volumes increased 5%. Renewable natural gas volumes increased 8% as improved operations drove higher uptime and hydrocarbon recovery.

Balance Sheet and Capital Allocation Michels said Kinder Morgan ended the quarter with net debt to adjusted EBITDA of 3.6 times, down from 3.8 times at the beginning of the year and below the company’s budget. He said Kinder Morgan now expects to end 2026 at 3.6 times leverage, compared with a budgeted 3.8 times, despite higher spending tied to the Monument acquisition and increased growth capital.

Year to date, Michels said Kinder Morgan generated $3.45 billion of cash flow from operations, paid $1.315 billion in dividends, spent $1.92 billion on total capital and completed the $500 million Monument acquisition. Net debt increased $311 million over that period.

Dang said Kinder Morgan does not currently view itself as capital constrained. She said acquisitions compete with expansion projects for capital, but noted that acquisitions include immediate cash flow, while expansion projects typically involve a timing drag before generating returns.

About Kinder Morgan (NYSE:KMI)Kinder Morgan NYSE: KMI is a large energy infrastructure company that owns and operates an extensive network of pipelines and terminals across North America. Its core activities center on the transportation, storage and handling of energy products, including natural gas, natural gas liquids (NGLs), crude oil, refined petroleum products and carbon dioxide. The company's assets include long-haul and gathering pipelines, storage facilities, and multi-modal terminals that serve producers, refiners, utilities and industrial customers.

Kinder Morgan's operations deliver midstream services such as pipeline transportation, terminaling, storage and related logistics and maintenance.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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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

More News From Kinder Morgan, Inc.

Key Takeaways Kinder Morgan is scheduled to report second-quarter 2026 results on July 22 after the closing bell.KMI's second-quarter revenue are projected to rise 6.2% year over year to $4.29 billion.KMI's natural gas pipeline revenues are expected to rise, while segment earnings may edge lower. Kinder Morgan Inc. (KMI - Free Report) is set to report second-quarter 2026 results on July 22, after the closing bell.

In the last reported quarter, the company’s adjusted earnings of 48 cents per share topped the Zacks Consensus Estimate of 38 cents due to higher contributions from the Natural Gas Pipelines business segment.

The company’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters, while meeting the same twice, delivering an average surprise of 7.93%. This is depicted in the graph below:

Estimate Trend for KMIThe Zacks Consensus Estimate for second-quarter earnings per share of 31 cents has seen one upward revision in the past seven days. The estimated figure indicates a 10.7% jump from the prior-year reported figure.

The consensus estimate for revenues of $4.29 billion implies a 6.2% increase from the year-ago recorded figure.

Factors to Consider Ahead of KMI's Q2 ResultsKinder Morgan is a leading player in the midstream energy sector, with an extensive natural gas pipeline network spanning 58,600 miles. The company transports nearly 40% of the natural gas produced in the United States. A large portion of its contracts are fee-based and structured as take-or-pay agreements. KMI is likely to have generated stable cash flows in the June-end quarter of 2026.

For the second quarter, the Zacks Consensus Estimate points to mixed results across Kinder Morgan's business segments. While natural gas pipeline revenues are projected to increase to $2,718 million from $2,536 million in the prior-year quarter, earnings from this segment are expected to dip slightly to $1,433 million from $1,436 million recorded in the year-ago quarter. Terminal earnings are anticipated to fall to $294 million from $300 million last year. Together, these declines are likely to have hurt the company’s overall earnings.

Earnings WhispersOur proven model does not indicate an earnings beat for KMI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: KMI has an Earnings ESP of 0.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Zacks Rank: Kinder Morgan currently carries a Zacks Rank of 3.

Stocks to ConsiderHere are some stocks that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.

NOV Inc. (NOV - Free Report) has an Earnings ESP of +19.69% and currently has a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

NOV is scheduled to release second-quarter 2026 earnings on July 28, 2026. The Zacks Consensus Estimate for NOV’s earnings is pegged at 16 cents per share, indicating a 44.8% decline from the prior-year reported figure.

Cactus, Inc. (WHD - Free Report) has an Earnings ESP of +7.04% and carries a Zacks Rank of 3 at present. Cactus is scheduled to release second-quarter 2026 earnings on July 29.

The Zacks Consensus Estimate for WHD’s earnings is pegged at 71 cents per share, suggesting a 7.6% improvement from the prior-year reported figure.

HF Sinclair Corporation (DINO - Free Report) has an Earnings ESP of +11.69% and a Zacks Rank of 2. HF Sinclair is scheduled to release second-quarter 2026 earnings on July 28.

The Zacks Consensus Estimate for DINO’s earnings is pegged at $3.93 per share, suggesting a 131.2% increase from the prior-year reported figure.

Kinder Morgan (KMI - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this oil and natural gas pipeline and storage company have returned +2.8% over the past month versus the Zacks S&P 500 composite's +0.5% change. The Zacks Oil and Gas - Production and Pipelines industry, to which Kinder Morgan belongs, has gained 2.5% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Kinder Morgan is expected to post earnings of $0.31 per share, indicating a change of +10.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The consensus earnings estimate of $1.49 for the current fiscal year indicates a year-over-year change of +14.6%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $1.51 indicates a change of +1.2% from what Kinder Morgan is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Kinder Morgan is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Kinder Morgan, the consensus sales estimate for the current quarter of $4.29 billion indicates a year-over-year change of +6.2%. For the current and next fiscal years, $18.17 billion and $19.07 billion estimates indicate +7.3% and +4.9% changes, respectively.

Last Reported Results and Surprise HistoryKinder Morgan reported revenues of $4.83 billion in the last reported quarter, representing a year-over-year change of +13.8%. EPS of $0.48 for the same period compares with $0.34 a year ago.

Compared to the Zacks Consensus Estimate of $4.65 billion, the reported revenues represent a surprise of +3.76%. The EPS surprise was +26.32%.

Over the last four quarters, Kinder Morgan surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Kinder Morgan is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Kinder Morgan. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

13.7.2026 14:09

Výsledková sezóna v USA se tento týden začíná rozbíhat. V centru pozornosti bude především finanční sektor, zejména výsledky velkých amerických bank, jako jsou JPMorgan Chase, Bank of America, Goldman Sachs, Wells Fargo, Citi či Morgan Stanley. Investoři budou sledovat také výsledky správce aktiv BlackRock. Mimo finance budou důležité také výsledky ze segmentu polovodičů, kde reportují ASML a TSMC. Pozornost investorů přitáhne rovněž Netflix, zatímco zdravotnický sektor zastoupí UnitedHealth Group, Johnson & Johnson, Abbott a Intuitive Surgical.

Přehled vybraných společností reportujících své výsledky v tomto týdnu (zdroj: síť X - Earnings Whispers)

Úterý (14. července) USA (před trhem): JPMorgan Chase, Bank of America, Goldman Sachs, Wells Fargo, Citi, Fastenal, Ericsson

Středa (15. července) USA (před trhem): Johnson & Johnson, ASML, Morgan Stanley, BlackRock, Progressive, The Bank of New York Mellon, PNC Financial Services, Elevance Health, Cintas, M&T Bank

USA (po trhu): United Airlines, J.B. Hunt Transport Services

Eurozóna (před trhem): ASML

Čtvrtek (16. července) USA (před trhem): UnitedHealth Group, General Electric, Abbott Laboratories, Prologis, U.S. Bancorp, Kinder Morgan, State Street, Citizens Financial Group

USA (po trhu): Netflix, Intuitive Surgical

Evropa (před trhem): ABB, Nordea Bank

Taiwan: TSMC

Pátek (17. července) USA (před trhem): The Travelers, Truist Financial, Fifth Third Bancorp, Regions Financial

Zdroj: Bloomberg, Earnings Whispers

Marek Krejčiřík
Fio banka, a.s.
Prohlášení

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Volatility can lower the cost of entry into businesses that throw off real cash, even as investors recognize that a low share price alone is no guarantee of a bargain. Heading into the back half of 2026, three blue-chip names trading well below the $45 mark stand out for the same reason: predictable cash flows, defensive betas, and dividend yields that make Treasury bills look pedestrian. For retail investors scanning headlines and watching their screens flicker red and green, these are the kinds of stocks worth pulling up a chair for.

With that in mind, here are three stocks trading under $45 that combine cheap valuations, durable income, and entrenched competitive moats heading into a choppier market.

Pfizer (NYSE: PFE) Pfizer (NYSE:PFE | PFE Price Prediction) is the global pharmaceutical giant behind blockbusters across oncology, vaccines, primary care, and specialty medicines. At a recent $24.29, well under the $45 ceiling, the stock sits roughly mid-range of its 52-week band of $21.97 to $28.28, giving income-focused buyers an accessible entry into a mega-cap dividend payer.

The fundamentals make the case. Pfizer trades at a trailing P/E of 19 and a forward P/E of 8, with a dividend yield of 7.27% backed by a quarterly payout of $0.43 that has been raised every year for more than a decade. Wall Street’s average price target of $29.15 implies meaningful upside from current levels, with 11 buy or strong buy ratings against 15 holds and three sell-side bears. Q1 2026 results showed revenue of $14.45 billion, up 5.4% year over year, and adjusted EPS of $0.75, marking a fifth consecutive earnings beat.

The bull case rests on three pillars. First, the Vyndamax patent settlement extends U.S. exclusivity to June 2031, defusing the loudest patent cliff fears. Second, launched and acquired products grew 22% operationally in Q1, led by Padcev (+39%), Nurtec ODT (+41%), and Abrysvo (+37%). Third, CEO Albert Bourla pointed to roughly 20 pivotal study starts planned for 2026, including 10 obesity assets from the Metsera acquisition, saying the company is “particularly encouraged by what we’re seeing in oncology and obesity.”

The risk worth respecting is COVID-related revenue erosion, with Comirnaty down 59% and Paxlovid off 62%, plus a $1.5 billion loss-of-exclusivity headwind baked into 2026. Even Jim Cramer recently quipped on Mad Money that with Pfizer, “you’re just buying on that dividend yield.” For value and income investors, that may be exactly the point.

AT&T (NYSE: T) AT&T (NYSE:T) is the converged fiber and 5G wireless operator quietly executing one of the cleaner turnaround stories in large-cap telecom. Shares recently traded at $22.72, down 6.5% year to date, which has compressed the valuation to a level rarely seen in dominant U.S. infrastructure plays.

On the numbers, AT&T trades at a trailing P/E of 8 and a forward P/E of 10, with a dividend yield of 4.95% on a $0.2775 quarterly payout that has held steady since 2022. Analysts carry an average price target of $30.25 with 15 buy or strong buy ratings, 10 holds, and zero sell ratings. Q1 2026 brought revenue of $31.51 billion (+2.9% YoY) and adjusted EPS of $0.57, up 11.8% YoY, including the best Q1 ever for Advanced Connectivity internet net adds at 584,000.

The bull case is operational momentum colliding with capital returns. CEO John Stankey called out the “best first quarter ever for Advanced Connectivity internet customer net additions.” The closed Lumen Mass Markets fiber acquisition on February 2, 2026 pushed reach to 37 million-plus fiber locations, with a target of 60 million by 2030. Management reiterated free cash flow of $18 billion-plus in 2026, $19 billion-plus in 2027, and $21 billion-plus in 2028, and committed to $45 billion-plus in shareholder returns from 2026 through 2028, including roughly $8 billion in buybacks this year.

The risk: leverage. Net debt-to-EBITDA sits at 2.71x and rises toward 3.2x post-EchoStar and Lumen, and legacy wireline revenue is still declining 20%+. Reddit sentiment recently flipped, with r/wallstreetbets discussion turning bearish at scores of 33 to 38 on June 26-27 after running bullish earlier in the month on a congressional trade signal flagged on r/stockmarket. For investors who can stomach the leverage, the fiber flywheel and capital returns make the math interesting.

Kinder Morgan (NYSE: KMI) Kinder Morgan (NYSE:KMI) operates one of the largest natural gas pipeline, products pipeline, terminal, and CO2 networks in North America. Shares recently changed hands at $33.19, up 25.37% year to date and 143.8% over the past five years, but still comfortably under the $45 ceiling and within reach of retail-sized positions.

The setup is rare in midstream: real growth tied to secular demand. KMI trades at a trailing P/E of 22 and a forward P/E of 24, with a dividend yield of 3.56% on a $1.19 annualized payout (+2% YoY). Q1 2026 revenue rose to $4.83 billion (+13.5% YoY), adjusted EPS came in at $0.48 versus the $0.39 estimate, a 22.11% beat, and adjusted EBITDA expanded 18% to $2.54 billion. Wall Street’s average price target of $35.33 and 11 buy ratings to 12 holds and zero sells reflect the durability of the cash flow.

The bull case is direct exposure to two of the most-watched demand curves on the planet: LNG exports and U.S. data center power. Management noted long-term contracts to move 8 Bcf/d to LNG facilities today, growing to 12 Bcf/d by end of 2028, with roughly 70% of future data center power demand sitting in KMI-served states. The project backlog stands at $10.1 billion, with about 92% in natural gas, and Moody’s recently upgraded KMI to Baa1, putting all three agencies at BBB+. CEO Kim Dang attributed Q1 to “record-setting performance in our Natural Gas Pipelines business segment.”

The risk worth tracking is commodity and policy exposure: refined products volumes fell 2% and crude/condensate dropped 12%, and tariff or permitting timing can move the needle on the backlog. But with leverage at a manageable 3.6x net debt-to-EBITDA and natural gas demand projected to grow 17% through 2030, KMI looks like the cleanest pure-play infrastructure beneficiary on the list.

The Bottom Line A share price under $45 does not, on its own, make a stock cheap or safe. What earns these three names a spot on a watch list right now is the combination of betas well below 1.0, durable dividend streams, and entrenched moats that historically hold up when the broader market gets choppy. Before adding any of them to a portfolio, readers should weigh their own time horizon, income needs, and tolerance for sector-specific risk, and do their own research on how each business fits the rest of their holdings.

Contact [email protected] for any questions or corrections.

In the latest close session, Kinder Morgan (KMI - Free Report) was up +1.29% at $33.01. This change outpaced the S&P 500's 0.01% loss on the day. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq decreased by 0.46%.

Heading into today, shares of the oil and natural gas pipeline and storage company had gained 1.15% over the past month, outpacing the Oils-Energy sector's loss of 9.23% and the S&P 500's loss of 1.4%.

Market participants will be closely following the financial results of Kinder Morgan in its upcoming release. The company's upcoming EPS is projected at $0.31, signifying a 10.71% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.29 billion, indicating a 6.16% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.49 per share and a revenue of $18.17 billion, signifying shifts of +14.62% and +7.27%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Kinder Morgan. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% decrease. Currently, Kinder Morgan is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Kinder Morgan is currently trading at a Forward P/E ratio of 21.83. This signifies a premium in comparison to the average Forward P/E of 17.84 for its industry.

One should further note that KMI currently holds a PEG ratio of 2.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Production and Pipelines was holding an average PEG ratio of 1.87 at yesterday's closing price.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 104, finds itself in the top 43% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Kinder Morgan remains a "Buy," driven by upside potential in the stock price rather than its dividend yield. KMI's Q1 revenues rose 13.8%, and adjusted EBITDA grew 18%, supported by higher commodity sales and expansion projects. 65% of KMI's cash flow is secured by take-or-pay contracts, providing predictable income amid rising energy demand from AI and data centers.

Key Takeaways Natural gas is expected to supply 40% of U.S. power generation in 2026, per the EIA.Kinder Morgan expects U.S. natural gas demand to rise 27% to 150 Bcf/d by 2031.Natural Gas Services is seeing high fleet utilization, record rental revenue and compression demand. Electricity demand is likely to remain strong, supported by rapidly expanding data centers and growing air-conditioning needs. In the United States, the world’s largest economy, natural gas continues to remain in the spotlight as a key source of power generation.

In this context, let’s take a closer look at two energy players — large-cap Kinder Morgan (KMI - Free Report) and small-cap Natural Gas Services Group, Inc. (NGS - Free Report) — to see whether they offer compelling value.

Natural Gas Dominates U.S. Electricity GenerationNatural gas is a relatively cleaner source of fuel, given its lower emissions of pollutants. Among all the energy sources, natural gas was responsible for 40% of electricity generation in the United States in 2025, per data from the U.S. Energy Information Administration (EIA). In 2026, the proportion will also be 40%, as mentioned in EIA’s latest short-term energy outlook.

By comparison, for this year, the contributions of coal, nuclear, and conventional hydropower are likely to be much lower at 16%, 18%, and 6%, respectively, per EIA’s predictions. Thus, for electricity generation, the United States is still largely dependent on natural gas. Hence, it would be ideal for investors to allocate money toward energy companies that are tied to businesses related to natural gas transportation, compression and production.

Image Source: The U.S. Energy Information Administration

2 Stocks in the Spotlight: KMI, NGSBeing a leading midstream energy company, Kinder Morgan is well-positioned to benefit from the increasing demand for natural gas both in the United States and worldwide. KMI’s assets comprise the largest transportation network of natural gas in the United States and are responsible for transporting roughly 40% of all the gas produced in the domestic market.

KMI, on its first-quarter 2026 earnings call, expressed expectations that U.S. natural gas demand would surge, driven by rising electricity demand from data centers. Kinder Morgan, currently carrying a Zacks Rank #2 (Buy), expects the demand to jump 27% to 150 billion cubic feet per day by 2031 from this year's level. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Growing natural gas consumption for U.S. electricity generation could lead to higher production and greater transportation of gas through energy infrastructure. This should support #2 Ranked Natural Gas Services, as its compression equipment helps gas flow through the system, while the company has also pointed to rising production and midstream expansion as drivers of stronger compression demand.

NGS appears well placed to benefit from this trend. Its fleet is already seeing high utilization and record rental revenue, and the company continues to add large-horsepower units backed by long-term contracts. The Flatrock acquisition further expands its compression capacity and improves its presence in major producing regions, including the Permian and Eagle Ford.

Kinder Morgan (KMI - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this oil and natural gas pipeline and storage company have returned -5.7%, compared to the Zacks S&P 500 composite's +1.4% change. During this period, the Zacks Oil and Gas - Production and Pipelines industry, which Kinder Morgan falls in, has lost 4.2%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, Kinder Morgan is expected to post earnings of $0.31 per share, indicating a change of +10.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.6% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $1.49 points to a change of +14.6% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $1.51 indicates a change of +1.2% from what Kinder Morgan is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Kinder Morgan is rated Zacks Rank #2 (Buy).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Kinder Morgan, the consensus sales estimate of $4.29 billion for the current quarter points to a year-over-year change of +6.2%. The $18.17 billion and $19.07 billion estimates for the current and next fiscal years indicate changes of +7.3% and +4.9%, respectively.

Last Reported Results and Surprise HistoryKinder Morgan reported revenues of $4.83 billion in the last reported quarter, representing a year-over-year change of +13.8%. EPS of $0.48 for the same period compares with $0.34 a year ago.

Compared to the Zacks Consensus Estimate of $4.65 billion, the reported revenues represent a surprise of +3.76%. The EPS surprise was +26.32%.

Over the last four quarters, Kinder Morgan surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Kinder Morgan is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Kinder Morgan. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

Key Takeaways Kinder Morgan's 96% contracted or hedged cash flows anchor dividends and growth investments.Kinder Morgan generated $1.49B in first-quarter operating cash flow as leverage ratio fell to 3.6x.KMI plans about $2.7B in 2026 dividends after a ninth consecutive year of annual dividend increase. Kinder Morgan’s (KMI - Free Report) financial position is anchored by its steady cash flows and highly contracted business model. The company has stated that 96% of its cash flows are either take-or-pay, fee-based or hedged. Notably, 65% of cash flows are tied to take-or-pay contracts and 26% of the cash flow mix comes from fee-based contracts. During the first quarter, Kinder Morgan generated $1.49 billion in cash flow from operations, enabling it to fund dividends, capital expenditures and growth investments.

Additionally, the company’s growing cash flows and disciplined capital allocation approach enabled it to enhance its balance sheet strength and lower its net debt-to-adjusted EBITDA ratio to 3.6x from 3.8x at the beginning of the year. A stronger balance sheet gives the company the financial flexibility to continue investing in growth opportunities while maintaining returns to shareholders.

Kinder Morgan expects to return approximately $2.7 billion to shareholders through dividends in 2026. In the first quarter, KMI declared a quarterly dividend of 29.75 cents per share, implying an annualized dividend of $1.19 and marking the ninth consecutive year of dividend increase. The company has also returned nearly $23 billion to shareholders over the past decade through dividends and share repurchases. This demonstrates the company’s long-term commitment to rewarding shareholders. The combination of financial discipline, predictable earnings and stable cash flows positions Kinder Morgan to continue delivering value to investors across market cycles.

More Energy Sector Players Focus on Shareholder ReturnsSunoco LP (SUN - Free Report) is a wholesale motor fuel distributor in the United States, distributing motor fuels of several brands through long-term distribution agreements with nearly 9,000 distribution facilities, which support steady cash flows. The partnership declared a distribution of 98.99 cents per unit in the first quarter of 2026, marking a sequential increase of 6.25% or a 10% increase from the prior-quarter figure of 89.76 cents per unit. For 2026, the partnership aims to meet its distribution growth target of at least 5%. This reflects the partnership’s strong commitment to returning capital to unitholders.

Antero Midstream (AM - Free Report) provides integrated midstream services to the leading natural gas producer, Antero Resources Corporation, under long-term contracts. This enables the midstream player to generate stable earnings and cash flows. Antero Midstream continues to return capital to shareholders through a combination of dividends and share repurchases. The company repurchased 1.0 million shares under its authorized share repurchase program in the first quarter of 2026. This reflects the company’s commitment to returning capital to shareholders. 

KMI’s Price Performance, Valuation & EstimatesShares of Kinder Morgan have jumped 12.9% over the past year compared with the 18.8% improvement of the composite stocks belonging to the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, KMI trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 14.04X. This is below the broader industry average of 15.04X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for KMI’s 2026 earnings hasn’t seen any revisions over the past seven days.

Image Source: Zacks Investment Research

KMI currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways KMI's highly contracted model supports stable, predictable cash flows across commodity cycles.KMI says 96% of cash flows are take-or-pay, fee-based or hedged, limiting volatility exposure.KMI's $10.1B project backlog is 92% tied to natural gas opportunities as demand expands. Kinder Morgan Inc. (KMI - Free Report) is a leading midstream energy company that owns and operates one of the largest energy infrastructure networks in North America. Its network comprises approximately 78,000 miles of pipelines, 136 terminals and more than 700 billion cubic feet of natural gas storage capacity. The company’s business is highly contracted, which ensures stable and predictable cash flows.

In fact, KMI has highlighted that 96% of its cash flows are either take-or-pay, fee-based or hedged. Notably, 65% of cash flows are tied to take-or-pay contracts, implying that customers pay a capacity reservation fee and the company is entitled to payment, irrespective of the actual throughput. Additionally, 26% of the cash flow mix comes from fee-based contracts, and only 4% of its total cash flows are unhedged and are exposed to commodity price volatility. Kinder Morgan’s business model helps keep it resilient during periods of commodity price volatility and demand fluctuations.

The company has highlighted that incremental demand for natural gas from power generation and liquefied natural gas (LNG) exports is expected to create expansion opportunities across its natural gas transportation network. At the end of the first quarter, KMI’s committed growth project backlog stood at $10.1 billion, of which approximately 92% is allocated to natural gas opportunities. Long-term growth in U.S. natural gas demand is expected to sustain the demand for KMI’s midstream services, enabling it to generate durable cash flows in the future. The resilient cash flows are expected to help the midstream company fund growth projects and maintain competitive shareholder returns across business cycles.

ENB & WMB Have Stable Business ModelsEnbridge Inc. (ENB - Free Report) is a leading North American midstream energy company with an extensive crude oil, liquids and gas transportation pipeline network. It operates an extensive crude oil and liquids transportation network spanning 18,085 miles. ENB’s gas transportation pipeline network spans 19,372 miles across North America, expanding to roughly 70,272 miles when related gas gathering and NGL transmission assets are included, such as those associated with DCP Midstream. The midstream company’s business is highly stable, owing to its contractual nature.

The Williams Companies, Inc. (WMB - Free Report) is another leading player in the midstream energy sector, which operates a widespread pipeline system of more than 33,000 miles, including the Transco and Northwest Pipeline systems. These pipeline systems are among the largest natural gas transportation networks in the United States and are expected to benefit from the rising natural gas demand.

Both companies generate fee-based earnings, resulting in stable cash flows.

KMI’s Price Performance, Valuation & EstimatesShares of Kinder Morgan have jumped 14.6% over the past year compared with the 19.4% improvement of the composite stocks belonging to the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, KMI trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 14X. This is below the broader industry average of 15.07X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for KMI’s 2026 earnings hasn’t seen any revisions over the past seven days.

Image Source: Zacks Investment Research

KMI currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Kinder Morgan transports nearly 40% of U.S. natural gas output through its pipeline network.KMI says over 20% of its $10.1B project backlog is dedicated to rising LNG demand.Kinder Morgan expects LNG facility transport volumes to exceed 12 Bcf/d by the end of 2028. Kinder Morgan (KMI - Free Report) is a leading energy infrastructure company in North America. Its natural gas pipeline network transports nearly 40% of the U.S. natural gas production. The company owns and operates nearly 78,000 miles of pipelines, 136 terminals and more than 700 billion cubic feet (Bcf) of working natural gas storage capacity.

The rising demand for U.S. natural gas, supported by liquefied natural gas (LNG) exports, is expected to benefit Kinder Morgan. In fact, the company has highlighted that its extensive natural gas transmission network will allow it to cater to the rising demand for U.S. LNG exports. KMI also added that more than 20% of its $10.1 billion project backlog is dedicated to serving the growing LNG demand. The company currently has long-term contracts to move 8 Bcf/d of natural gas to LNG facilities, and this is expected to surpass 12 Bcf/d by the end of 2028.

Additionally, the increased power generation needs driven by the shift from coal to gas and the expansion of data centers are creating an incremental demand for natural gas. Data centers utilize sophisticated servers that support high computational workloads for processing data and training models, which requires a significant amount of electricity. These demand trends align well with Kinder Morgan’s business model. Its extensive natural gas transmission network, a growing backlog of expansion projects and infrastructure positioned near key LNG export hubs should enable Kinder Morgan to benefit from the long-term growth in natural gas consumption in the United States.

Energy Sector Players to Benefit From Rising Natural Gas DemandThe rise of data centers and higher gas-fired power demand presents an opportunity for Enbridge Inc. (ENB - Free Report) to capitalize on. Data centers require a huge amount of electricity, which is driving rapid growth in gas demand. The shift from coal to gas for power generation is increasing gas demand. Enbridge is expected to gain from the expansion of its natural gas storage facilities. ENB carries a Zacks Rank #3 (Hold) at present.

Baker Hughes (BKR - Free Report)  is well-positioned to capitalize on the rapid growth in energy demand from data centers. In response to rising data center demand, the company is actively enhancing its capabilities through organic investments in this domain. With nearly $1 billion in data center-related orders registered in 2025, the company is working toward achieving its $3 billion target over the next three years. The rise in power demand is expected to drive energy-infrastructure investments, which, in turn, will contribute to higher demand for Baker Hughes’ IET offerings. BKR has a Zacks Rank #4 (Sell) at present.

KMI’s Price Performance, Valuation & EstimatesShares of Kinder Morgan have jumped 15.3% over the past year compared with the 18.7% improvement of the composite stocks belonging to the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, KMI trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 13.97X. This is below the broader industry average of 15.15X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for KMI’s 2026 earnings hasn’t seen any revisions over the past seven days.

Image Source: Zacks Investment Research

KMI currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Kinder Morgan's 2026-27 EPS estimates rose 7.19% and 2.03% in the past 60 days.Kinder Morgan's debt-to-capital is 49.59% lower than Energy Transfer's 58.23%.Kinder Morgan posts 9.9% ROE, 3.4 TIE and an 18% six-month gain versus 14.8% for its peer. The Zacks Oil & Gas – Production & Pipelines industry remains essential to the nation’s energy security and overall economic stability. The United States depends on a broad and efficient pipeline system to transport hydrocarbons from key producing regions such as the Permian, Bakken and Marcellus basins to refineries, export hubs and end consumers.

The sector’s long-term prospects continue to appear favorable, supported by consistent domestic energy demand, growing liquefied natural gas exports and the ongoing transition from coal to natural gas by utilities. Energy Transfer (ET - Free Report) and Kinder Morgan (KMI - Free Report) rank among the major midstream operators, offering investors exposure to energy transportation and storage businesses along with attractive income-generating potential.

The industry is also expected to benefit from supportive regulatory measures, infrastructure upgrade initiatives and technological advancements designed to improve operational efficiency and reduce emissions. In a period marked by global energy uncertainty, U.S. pipeline infrastructure has become increasingly strategic, especially in helping supply energy to allied nations. Midstream companies generally benefit from stable, fee-based revenue models backed by long-term contracts, which help reduce exposure to commodity price fluctuations.

Energy Transfer owns a diversified portfolio that includes crude oil, NGL, refined products and natural gas pipelines, as well as storage and processing facilities. The company also has a meaningful presence in the Permian Basin. Energy Transfer’s stake in the Dakota Access Pipeline and ownership interests in export terminals further strengthen its operating footprint and cash flow generation capabilities.

Kinder Morgan provides a relatively stable investment proposition supported by its expansive midstream network, which is heavily concentrated in natural gas transportation. Backed by long-term, fee-based contracts, the company generates dependable cash flows. Kinder Morgan’s disciplined approach to capital allocation, solid dividend profile and investments in renewable natural gas projects improve its resilience and support steady long-term growth. Consequently, KMI continues to attract income-focused investors looking for reliable returns with lower sensitivity to commodity price volatility within North America’s essential energy infrastructure market.

As U.S. hydrocarbon production continues to grow, demand for midstream infrastructure and services remains robust. Given this backdrop, let us examine the fundamentals of these two companies to determine which stock currently presents the more compelling investment opportunity.

KMI & ET’s Earnings Growth ProjectionsThe Zacks Consensus Estimate for KMI’s 2026 and 2027 earnings per share have moved up 7.19% and 2.03%, respectively, in the past 60 days.

Image Source: Zacks Investment Research

The same for ET’s 2026 and 2027 earnings per share have gone down 7.43% and 8.18%, respectively, in the past 60 days.

Image Source: Zacks Investment Research

Return on EquityReturn on Equity (“ROE”) is an essential financial indicator that evaluates a company’s efficiency in generating profits from the equity invested by its shareholders. It demonstrates how well management is utilizing the capital provided to increase earnings and deliver value.

KMI’s current ROE is 9.9% compared with ET’s 9.77%.

Image Source: Zacks Investment Research

Debt to CapitalThe Zacks Oil-Energy sector is a capital-intensive one and huge investments are required at regular intervals to upgrade, maintain and expand operations. The usage of new evolving technology also requires investments. Therefore, the companies operating in the sector borrow from the market and add it to their internal cash generation to fund the long-term investments.

 ET’s debt-to-capital currently stands at 58.23% compared with KMI’s 49.59%.

Image Source: Zacks Investment Research

ValuationEnergy Transfer currently appears to be trading at a discount compared with Kinder Morgan on a forward 12-month Price/Earnings basis.

 ET is currently trading at 13.74X, while KMI is trading at 21.47X, both trading at a discount compared with the S&P 500’s 22.18X.

Image Source: Zacks Investment Research

Times Interest Earned RatioThe Times Interest Earned (“TIE”) ratio is a key solvency metric that evaluates a company’s capacity to meet the long-term financial obligations, particularly its ability to cover interest expenses on outstanding debt.

KMI’s current TIE ratio is 3.4, a tad higher than ET’s 2.98. A healthy ratio indicates that both firms can comfortably meet their debt payment obligations.

Price PerformanceET’s units have gained 14.8% in the past six months compared with KMI’s rally of 18% and the industry's return of 25.6%.

Image Source: Zacks Investment Research

Rounding UpEnergy Transfer and Kinder Morgan are utilizing their well-spread-out pipelines and related infrastructure to successfully transfer hydrocarbons from the production region to their end users.

 KMI’s better earnings growth projection, lower usage of debt to run operations, a tad better TIE ratio, stronger price performance and better return make it attractive.

Given the above discussion, KMI, which sports a Zacks Rank #1 (Strong Buy), has a clean edge on ET, which carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank stocks here.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

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Kinder Morgan (NYSE:KMI | KMI Price Prediction) and Williams Companies (NYSE:WMB) just closed the books on record 2025 results, and both pipeline operators are pointing the same firehose of capital at LNG exports and data center power demand. The way they are doing it, however, looks quite different. One is leaning on a $10 billion pipeline backlog. The other is buying into power generation itself.

Records on Both Sides, but the Mix Tells the Story Kinder Morgan delivered adjusted EPS of $0.39 against a $0.37 estimate on $4.51 billion in revenue, up 13.64% year over year. CEO Kim Dang credited “record-setting performance in our Natural Gas Pipelines business segment”, with transport volumes up 9% and gathering volumes up 19%. The CO2 segment was the weak spot, dragged by softer commodity and D3 RIN prices.

Williams, under new CEO Chad Zamarin since July 2025, posted full-year adjusted EBITDA of $7.75 billion, up 9%, and Q4 EPS of $0.55. Transco continues to do the heavy lifting, with Transmission, Power & Gulf adjusted EBITDA of $3.71 billion, a $403 million jump. A $212 million impairment on Mid-Continent gas gathering was a reminder that not every basin is humming.

Business Driver Kinder Morgan Williams FY revenue $16.94B $11.95B FY net income growth +17% +18% Leverage target 3.8x ~4.0x 2026 dividend $1.19 (+2%) $2.10 (+5%) Pipeline Purist vs. Power Operator Kinder Morgan is doubling down on what it already does best. Its $10 billion project backlog is roughly 90% natural gas, with about 60% tied to power generation. Trident Intrastate, SSE4, and Mississippi Crossing are all traditional pipeline projects. Dang says “total demand for natural gas is expected to grow by 17% through 2030, led by LNG exports”, and KMI already moves 8 Bcf/d to LNG facilities, growing to 12 Bcf/d by end of 2028.

Williams is taking a bolder step. Zamarin is putting over $7 billion of capital into power innovation projects, including the newly announced “Socrates the Younger.” The Cogentrix platform, Rimrock and Saber acquisitions, and the Woodside Energy LNG partnership all push Williams further down the value chain than a traditional pipeline operator goes. Investors are paying for that ambition: WMB trades at a 34 P/E versus 23 for KMI.

The Next Test Is Whether the Premium Pays Off WMB shares are up 33.04% year to date and just touched a 52-week high, while KMI has climbed 27.2%.

I will be watching whether Williams’ first power innovation project hits its second-half 2026 commissioning on budget. For Kinder Morgan, the catalyst is FERC certificates on SSE4 and Mississippi Crossing, both expected in July 2026. Analyst targets sit at $81.99 for WMB and $35.33 for KMI, leaving modest implied upside in both names.

Why I Lean Toward Kinder Morgan for Value, Williams for Vision The two stocks frame distinct investor profiles. KMI offers a cleaner valuation, a 3.49% yield, an S&P upgrade to BBB+, and a backlog that is already commercialized, an income-style profile tied to LNG and power gas.

Williams trades at a richer multiple and asks investors to underwrite execution on power plants and acquisitions, a growth-tilted profile with more upside if Socrates works. Steel tariff moves and 2026 power demand forecasts are the key variables that could reshape either thesis.

The PrintWhat The Coverage Number Leaves OutWhere The Self-Funding Doctrine LoosenedThe Metric That Tells The StoryThis is not a prediction — structural assessment.

Source: Kinder Morgan Q1 2026 earnings release and earnings call (April 22, 2026); company investor relations and Form 8-K.

The author holds no position in any security mentioned. Generalized research, not personalized investment advice.

Read the weekly structural income letter at jungmoku.substack.com.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.

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Kinder Morgan (KMI - Free Report) ended the recent trading session at $31.44, demonstrating a +1.91% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.13%. At the same time, the Dow added 0.45%, and the tech-heavy Nasdaq gained 0.03%.

Shares of the oil and natural gas pipeline and storage company have depreciated by 4.99% over the course of the past month, underperforming the Oils-Energy sector's loss of 3.92%, and the S&P 500's gain of 5.25%.

The upcoming earnings release of Kinder Morgan will be of great interest to investors. The company is expected to report EPS of $0.31, up 10.71% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $4.29 billion, indicating a 6.16% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.49 per share and revenue of $18.17 billion, indicating changes of +14.62% and +7.27%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Kinder Morgan. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.94% higher. Kinder Morgan is currently a Zacks Rank #2 (Buy).

Looking at its valuation, Kinder Morgan is holding a Forward P/E ratio of 20.7. This valuation marks a discount compared to its industry average Forward P/E of 20.74.

Investors should also note that KMI has a PEG ratio of 2.57 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Production and Pipelines industry had an average PEG ratio of 1.71 as trading concluded yesterday.

The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 78, positioning it in the top 32% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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EOG Resources (NYSE:EOG | EOG Price Prediction) is the name every oil bull is screaming about as WTI crude spiked to $114.58 in early April 2026 and traders pile into upstream drillers to play the Iran war supply shock.

The EOG Trade Is a Sugar High Geopolitical premium fades. It always does. And when it does, EOG holders get to relive the Q4 2025 income statement: GAAP net income collapsed to $701 million from $1.25 billion year over year, a 43.96% drop, with operating income down 40.77% YoY after the company absorbed $506 million in after-tax impairment charges on Barnett Shale and Woodford Oil Window assets. Realized crude prices fell from $71.66 to $59.54 per barrel in a single year and free cash flow dropped 30.04%. To top it off, total debt ballooned from $4.75 billion to $7.94 billion to fund the Encino deal, and Piper Sandler trimmed its price target citing a less constructive oil macro.

Now look at the chart. EOG is up 31.95% year to date and trading at $136.20, near the upper end of its 52-week range topping at $150.70. The forward multiple of 8x looks cheap only if you assume $110 crude is permanent. It is not.

The Better Trade: Kinder Morgan Redirect your attention to Kinder Morgan (NYSE:KMI), the $73.7 billion fee-based pipeline giant that earns the same toll whether WTI prints $85 or $115. Long-term, fixed-fee take-or-pay infrastructure contracts insulate substantial cash flows, and three things make this the retirement-portfolio trade of the year.

1. A $10 billion contracted backlog. Approximately 90% is tied to natural gas infrastructure and nearly 60% supports power generation, with the $1.8 billion Trident Intrastate Pipeline in service Q1 2027 and the $3.5 billion South System Expansion 4 already locked down. Backlog grew by $912 million in Q4 alone.

2. The LNG and data center tailwind is structural. The EIA projects U.S. LNG export capacity will increase to 27.7 Bcf/d by 2030 from 14.9 Bcf/d in 2025. Kinder Morgan already has long-term contracts to move 8 Bcf/d to LNG facilities, growing to 12 Bcf/d by end of 2028. And roughly 70% of future data center power demand is in states served by KMI assets. Q4 transport volumes rose 9% YoY and gathering volumes jumped 19%.

3. Cash returns are real and growing. Adjusted EBITDA hit $2.27 billion in Q4 2025, up 10% YoY, free cash flow rose 18% to $0.9 billion, and S&P upgraded the senior unsecured rating to BBB+ in January 2026. Management guided 2026 dividends to $1.19 per share, up 2%, and the most recent quarterly payout already stepped up to $0.2975, ex-dividend May 4, 2026.

CEO Kim Dang summed it up plainly: “Led by record-setting performance in our Natural Gas Pipelines business segment, the company delivered its highest ever fourth quarter and full-year net income attributable to KMI and Adjusted EBITDA.”

The Bottom Line EOG is a leveraged bet that geopolitics stays bad. Kinder Morgan gets paid either way, at a 3.48% dividend yield with a backlog stretching past 2029. Investors looking for a supply-shock hedge may want to research KMI alongside the upstream drillers everyone else is crowding into.

Key Takeaways Supply risks and Middle East tensions keep oil near or above $90, supporting dividend energy stocks.Kinder Morgan's take-or-pay pipeline contracts deliver stable, fee-based cash flows amid volatility.Chevron's integrated global model and 90-year dividend streak help sustain its 3.8% yield. The energy market remains highly uncertain, with oil prices moving around geopolitical headlines, supply concerns and changing OPEC+ production plans. Crude prices have recently stayed near elevated levels, as tensions in the Middle East and disruptions around key shipping routes continue to influence investor sentiment.

In this environment, large and established energy names like Chevron Corporation (CVX - Free Report) ), Kinder Morgan (KMI - Free Report) and Canadian Natural Resources Limited (CNQ - Free Report) look attractive. These companies combine strong business models with dependable dividends, making them solid choices for investors seeking income and stability during a volatile energy cycle.

Supply Risks Continue to Support Oil Prices

The current energy setup is being shaped by both supply risks and demand concerns. OPEC+ is expected to raise production targets again, but the actual impact may be limited if some members struggle to increase output because of conflicts and logistical constraints. At the same time, disruptions linked to the Strait of Hormuz continue to keep the market nervous.

Oil prices have moved near or above the $90 level as investors weigh the possibility of supply shortages against signs of softer demand in some major economies. This creates a difficult but opportunity-rich backdrop for energy investors.

The Appeal of Reliable Dividend Payers

When commodity prices swing sharply, dividend-paying energy stocks can offer a useful layer of protection. These companies provide regular income, which can help investors stay patient even when oil prices move unpredictably.

Companies with diversified operations, stable cash-generating assets and disciplined capital allocation are often better positioned to support dividends through different commodity-price cycles. Businesses that combine income generation with financial strength can offer a more balanced way to gain exposure to the energy sector.

The wisdom of buying large energy dividend stocks now lies in their balance of resilience and income. While oil prices may remain sensitive to geopolitical developments, companies with scale, strong cash generation and disciplined capital spending are better positioned to handle uncertainty.

3 Quality Energy Stocks for Investors

For investors looking to stay invested in energy without taking on excessive risk, Chevron offers the benefits of an integrated business model, a strong balance sheet and a long track record of returning cash to shareholders. Kinder Morgan brings stable, fee-based cash flows supported by its extensive pipeline and energy infrastructure network, making it less dependent on day-to-day commodity price swings. Canadian Natural Resources provides exposure to a large, long-life resource base and a history of disciplined capital allocation and shareholder returns. In a market where oil remains volatile but supply risks are still meaningful, these stocks may serve as reliable holdings.

Chevron: Chevron’s global integrated model spans exploration, production, refining and chemicals, creating stability across market cycles. With operations in the United States, Asia-Pacific, Africa, the Middle East and South America, the company’s scale and diversity support consistent free cash flow generation.

Chevron has maintained or raised its dividend for 90 years, underscoring a long track record of resilience. Its 3.8% yield stands above both the sector and the S&P 500’s 1.1% average, and its Zacks Rank #2 (Buy) reflects a bullish near-term earnings outlook. A disciplined approach to capital spending and efficiency continues to strengthen its ability to sustain attractive payouts.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Kinder Morgan: Kinder Morgan oversees one of North America’s largest energy infrastructure networks, including 78,000 miles of pipelines and extensive storage capacity. Its take-or-pay agreements across natural gas, refined products, crude oil, and bulk terminals provide stable, contracted cash flows, largely insulated from commodity price volatility.

The company carries a Zacks Rank of 2. It expects a dividend increase in 2026, which would mark its ninth consecutive annual raise. Its current payout of 29.75 cents per quarter results in a 3.8% yield. With demand for natural gas and LNG infrastructure rising, Kinder Morgan’s asset base positions it well for continued cash flow durability.

Canadian Natural Resources: Canadian Natural Resources operates one of the industry’s strongest long-life, low-decline asset bases, generating reliable production across a diverse mix that includes light and heavy oil, bitumen, synthetic crude and natural gas. Its portfolio spans Western Canada, the North Sea, and offshore West Africa, creating geographic balance and flexibility.

The company has increased its dividend for 26 consecutive years, supported by operational efficiency and consistent earnings performance reflected in its Zacks Rank #2. Its current quarterly dividend of 62.50 Canadian cents equates to a 4% yield, well above the Zacks Oil/Energy sector average of 2.8%. A strong balance sheet and efficient capital deployment reinforce the sustainability of its shareholder returns.

Key Takeaways Venture Global doubles LNG volumes under its agreement with Atlantic-SEE LNG Trade to 1.0 MTPA.The revised contract runs for 20 years beginning in 2030, enhancing visibility into future LNG sales.Venture Global supports European LNG demand through its stake in the Alexandroupolis LNG import terminal. Venture Global, Inc. (VG - Free Report) and Greece-based Atlantic-SEE LNG Trade have strengthened their strategic partnership by expanding the existing long-term liquified natural gas ("LNG") Sales and Purchase Agreement for the purchase of U.S. LNG from the former. The revised contract doubles annual LNG purchases from 0.5 million tons per annum ("MTPA") to 1.0 MTPA for a 20-year term beginning in 2030. The agreement strengthens Venture Global’s long-term revenue visibility and further expands its presence in the European LNG market, where demand for secure and diversified natural gas supplies remains strong.

The expanded contract builds on Venture Global’s broader strategy of supporting European energy security through investments in critical LNG infrastructure. VG previously announced an investment in the Alexandroupolis LNG import terminal in Greece, where it holds approximately 25% of the total capacity. The Alexandroupolis FSRU receiving terminal and the South-North Vertical Corridor serve as a key gateway for delivering U.S. LNG into Central and Eastern Europe through a reliable pipeline network. This infrastructure enhances market access for Venture Global while supporting long-term demand for its LNG exports.

The agreement reinforces Venture Global’s ability to secure long-duration contracts that provide stability to its business model and enhance cash flows. The additional contracted volumes improve the company’s growth outlook. As Europe continues to seek alternatives to secure reliable energy supply, Venture Global is well-positioned to benefit from rising LNG demand through its expanding export platform and strategic infrastructure investments.

Venture Global currently carries a Zacks Rank #3 (Hold).

As global LNG demand surges, companies involved in the extraction and transportation of natural gas are positioned for growth. This benefits W&T Offshore, Inc. (WTI - Free Report) and YPF Sociedad Anónima (YPF - Free Report) , which are engaged in natural gas extraction and production, as well as Kinder Morgan, Inc. (KMI - Free Report) , which is involved in natural gas transportation. WTI and KMI currently carry a Zacks Rank #2 (Buy) each, while YPF sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

W&T Offshore extracts natural gas and oil from a diverse portfolio of offshore assets in the Gulf of America. With approximately 605,000 acres and substantial 1P and 2P reserves, WTI maintains a robust reserve life that is expected to span nearly two decades.

YPF is an integrated energy company that leverages its significant footprint in Argentina’s Vaca Muerta formation to fuel production growth. The company projects increased operational activity in the coming quarters, supporting higher oil and gas output in the second half of 2026.

With around 58,600 miles of transmission pipelines, 6,800 miles of gathering systems and 1,300 miles of NGL pipelines, Kinder Morgan maintains one of the largest natural gas infrastructure networks in North America. KMI transports approximately 40% of U.S. natural gas production and has more than 700 billion cubic feet of storage capacity, representing roughly 15% of the nation's total storage capacity.