Kinder Morgan (NYSE:KMI) Announces Earnings Results

by · The Markets Daily

Kinder Morgan (NYSE:KMI – Get Free Report) posted its earnings results on Wednesday. The pipeline company reported $0.35 earnings per share for the quarter, beating the consensus estimate of $0.33 by $0.02, Zacks reports. The company had revenue of $4.53 billion for the quarter, compared to analyst estimates of $4.37 billion. Kinder Morgan had a net margin of 19.31% and a return on equity of 10.46%. Kinder Morgan’s revenue was up 9.3% on a year-over-year basis. During the same period in the previous year, the business posted $0.29 EPS.

Here are the key takeaways from Kinder Morgan’s conference call:

  • Positive Sentiment: Kinder Morgan reported strong third-quarter results, with adjusted EPS up 21% year over year, adjusted EBITDA up 9% to $2.18 billion, and all four business segments contributing to growth. Management now expects full-year adjusted EPS to exceed budget by more than 13% and EBITDA by more than 6%.
  • Positive Sentiment: The project backlog expanded from $9.6 billion to a record $14.4 billion, including the Southeast Connector and Permian Link. KMI’s share of the two projects is approximately $4.7 billion, backed by at least 20-year take-or-pay contracts, extending the company’s visible growth runway into 2030–2032.
  • Positive Sentiment: Natural gas demand and network utilization remained strong, with transport volumes up 3% and gathering volumes up 14%, led by a 40% increase on KinderHawk in the Haynesville. Management cited LNG exports, power generation, hyperscaler demand, and Southeast load growth as major drivers of additional infrastructure opportunities.
  • Neutral Sentiment: KMI ended the quarter with leverage of approximately 3.5x debt to EBITDA and roughly $3 billion of annual cash flow available for expansion capital, while indicating a likely capital-spending run rate of about $4 billion for the next several years. However, management noted that roughly $225 million of 2026 outperformance came from potentially nonrecurring items, including severe weather, a contract buyout, a FERC true-up, and favorable regional gas spreads.
  • Negative Sentiment: Products pipeline volumes declined, with refined products down 3% and crude and condensate volumes down 11% year over year. Management also cautioned that growth will not be even each year and that some 2026 benefits, including favorable commodity prices, may not repeat in 2027.

Kinder Morgan Trading Up 1.2%

NYSE KMI opened at $33.97 on Thursday. The company has a debt-to-equity ratio of 0.91, a quick ratio of 0.36 and a current ratio of 0.46. Kinder Morgan has a one year low of $25.60 and a one year high of $34.81. The firm has a market cap of $75.65 billion, a price-to-earnings ratio of 21.78, a PEG ratio of 2.36 and a beta of 0.59. The firm has a 50 day simple moving average of $31.82 and a 200-day simple moving average of $32.03.

Kinder Morgan Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 16th. Stockholders of record on Monday, November 2nd will be paid a $0.2975 dividend. The ex-dividend date of this dividend is Monday, November 2nd. This represents a $1.19 annualized dividend and a dividend yield of 3.5%. Kinder Morgan’s dividend payout ratio (DPR) is presently 76.28%.

Key Stories Impacting Kinder Morgan

Here are the key news stories impacting Kinder Morgan this week:

  • Positive Sentiment: Q3 results topped expectations: Kinder Morgan reported adjusted EPS of $0.35, above the $0.33 consensus, while revenue rose 9.3% year over year to $4.53 billion, exceeding the $4.37 billion estimate. EPS increased from $0.29 in the prior-year quarter. KMI Q3 deep dive: natural gas project surge extends growth runway
  • Positive Sentiment: Record project backlog supports future growth: The company added $5.4 billion to its expansion backlog, taking the natural-gas pipeline backlog to a record $13.2 billion. Demand from data centers, power generation and LNG exports is driving new opportunities. Kinder Morgan’s Natural Gas Pipeline Backlog Hits Record $13.2 Billion
  • Positive Sentiment: $4.7 billion of new projects approved: Kinder Morgan reached final investment decisions on the Southeast Connector and Permian Link pipelines, reinforcing expectations for longer-term earnings and cash-flow growth. Kinder Morgan to invest $4.7 billion in two gas pipeline projects as demand surges
  • Positive Sentiment: Analyst sentiment improved: Mizuho raised its price target from $37 to $39 and assigned an “outperform” rating, suggesting further upside based on the company’s growth pipeline.
  • Positive Sentiment: Dividend maintained: Kinder Morgan declared a quarterly dividend of $0.2975 per share, or $1.19 annualized, representing a yield of approximately 3.5%. Kinder Morgan declares $0.2975 dividend
  • Negative Sentiment: Full-year outlook trails expectations: Kinder Morgan expects 2026 adjusted EPS of $1.36, below the FactSet consensus of $1.54, which could limit enthusiasm despite the strong quarter and backlog growth. Kinder Morgan Expects 2026 Adjusted EPS of $1.36
  • Neutral Sentiment: A vice president sold $52,157.50 of stock under a pre-arranged Rule 10b5-1 plan; the relatively small, scheduled transaction is unlikely to materially affect the investment case.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the stock. Wells Fargo & Company restated an “overweight” rating and set a $39.00 price target on shares of Kinder Morgan in a report on Thursday. Morgan Stanley set a $33.00 price objective on Kinder Morgan in a report on Thursday, September 17th. Citigroup reiterated a “neutral” rating and issued a $34.00 price objective (up from $33.00) on shares of Kinder Morgan in a report on Wednesday, July 29th. Royal Bank Of Canada increased their price objective on Kinder Morgan from $35.00 to $36.00 and gave the stock a “sector perform” rating in a research report on Tuesday, September 22nd. Finally, JPMorgan Chase & Co. raised their target price on Kinder Morgan from $34.00 to $36.00 and gave the stock a “neutral” rating in a research note on Friday, September 4th. Eleven research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $35.74.

View Our Latest Report on KMI

Insider Activity at Kinder Morgan

In other news, VP Michael Garthwaite sold 1,550 shares of the company’s stock in a transaction on Friday, October 16th. The stock was sold at an average price of $33.65, for a total transaction of $52,157.50. Following the sale, the vice president owned 47,313 shares of the company’s stock, valued at approximately $1,592,082.45. This represents a 3.17% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 12.72% of the stock is currently owned by company insiders.

About Kinder Morgan

(Get Free Report)

Kinder Morgan, Inc (NYSE: KMI) is an energy infrastructure company that owns and operates pipelines, terminals, and other transportation and storage facilities. Its systems primarily support the movement, processing, and storage of natural gas, crude oil, refined petroleum products, and other energy commodities.

The company’s natural gas business transports and stores natural gas for utilities, power generators, industrial customers, and other energy companies. Kinder Morgan also operates refined products and crude oil pipelines, liquids terminals, and carbon dioxide infrastructure.

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