Kinder Morgan Posts Record $2.9B Net Income and 13% EPS Growth
Kinder Morgan reported record 2025 adjusted net income of $2.9B ($1.30/share), up 13%, and record EBITDA of $8.4B, 6% higher year-over-year, driven by a 9% jump in gas pipeline earnings to $5.9B. It forecasts 2026 EPS of $1.36 (5% growth), a 2% dividend increase, and holds a $10B project backlog.
1. Record 2025 Financial Milestones
Kinder Morgan reported a breakout 2025, delivering a record $2.9 billion of adjusted income (up 13% year-over-year) and $8.4 billion of adjusted EBITDA (up 6%). Its natural gas pipeline segment powered this growth with segment earnings rising nearly 9% to $5.9 billion. During the full year, the company generated $5.9 billion of cash flow from operations, funded over $3 billion in capital expenditures and $2.6 billion in dividends, and exited the year with approximately $300 million of excess free cash flow. On the balance sheet front, Kinder Morgan finished 2025 with a 3.8× leverage ratio, positioning it comfortably within its 3.5–4.5× target range.
2. Strong Quarterly Execution and Volume Gains
In the fourth quarter of 2025, Kinder Morgan exceeded consensus expectations by reporting adjusted earnings of $0.39 per share and revenue of $4.51 billion, compared to Street forecasts of $0.36 and $4.32 billion, respectively. Natural gas transportation volumes increased 9% year-over-year, driven by higher liquefied natural gas deliveries on the Tennessee Gas Pipeline, while gathering volumes jumped 19%, with the KinderHawk system delivering the lion’s share of growth. Quarterly cash flow from operations reached $1.7 billion, and free cash flow after capital expenditures climbed 18% to $0.9 billion.
3. 2026 Outlook Underpinned by Dividend Growth
Looking ahead, Kinder Morgan projects adjusted earnings per share of $1.36 for 2026, representing a 5% increase over 2025, and anticipates adjusted EBITDA of approximately $8.6 billion (up 3%). This performance supports a planned 2% dividend raise—marking the eighth consecutive annual increase—and maintains the quarterly payout on a sturdy financial foundation. The company expects to end 2026 at roughly a 3.8× leverage ratio, bolstered by the recently closed $400 million sale of its 25% interest in BPX Gathering.
4. Robust Backlog Fuels Long-Term Growth
Kinder Morgan entered 2026 with a $10 billion backlog of growth capital projects, spanning completion dates through 2030. In the fourth quarter alone, it added $912 million of new projects, more than offsetting $265 million placed into service. Among these are three large-scale natural gas pipelines slated to commence commercial operations next year. With sustained surges in gas demand—driven in part by AI data center development—the company is well positioned to extend its high-yield dividend and deliver further total‐return potential.