Kinder Morgan Q3 revenue beats estimates, driven by Natural Gas Pipelines segment
KMI•Kinder Morgan reported Q3 revenue of $4.53 billion, above the $4.38 billion consensus, and adjusted EPS of $0.35, above the $0.32 estimate. Its project backlog reached $14.4 billion, and the company expects 2026 adjusted EPS of $1.36 and adjusted EBITDA of $8.6 billion.
1. Quarterly results
Kinder Morgan’s Q3 revenue was $4.53 billion, compared with analyst expectations of $4.38 billion. Adjusted EPS was $0.35 versus the $0.32 consensus, and adjusted net income attributable to the company was $792 million.
2. Pipeline growth
Higher contributions from the El Paso Natural Gas Pipeline, KinderHawk gathering system, Tennessee Gas Pipeline and Texas Intrastate system drove growth in the Natural Gas Pipelines segment. Natural gas transport volumes rose 3% year over year and gathering volumes increased 14%, mainly due to LNG deliveries and higher demand in Texas. The company’s project backlog expanded to $14.4 billion, its largest natural gas backlog in its history.
3. Dividend and outlook
The board approved a 2% dividend increase for Q3; the reported dividend was $0.30. Kinder Morgan expects 2026 adjusted EPS of $1.36, adjusted EBITDA of $8.6 billion and year-end net debt-to-adjusted EBITDA of 3.6 times.
