U.S. natural gas futures at the Henry Hub facility climbed above $5 per MMBtu this week, representing a roughly 60% gain over seven trading days and marking the largest weekly increase on record since 1990. The surge has been driven by an Arctic cold wave stretching across more than 40 states, with national heating demand rising by an estimated 16 Bcf/d on the coldest forecast day. Goldman Sachs analyst Samantha Dart warns that production freeze-offs could reduce supply by up to 15 Bcf/d at peak, creating near-term deliverability risks. For Kinder Morgan, higher cash market prices reinforce strong throughput volumes on its Tennessee Gas and Haynesville pipelines, where daily throughput recently set a record at 1.97 Bcf/d on December 24.

In its fourth quarter, Kinder Morgan reported adjusted EBITDA growth of 10% year-over-year and adjusted earnings per share up 22%, driven by higher natural gas transport and storage fees. Net income attributable to the company reached $996 million, a 49% increase versus the prior year, and GAAP EPS was $0.45, up 50%. Full-year adjusted EBITDA hit an all-time high, surpassing the company’s internal target of 4% growth with a 6% increase over 2024, while adjusted EPS outperformed the 10% budgeted increase by delivering 13% growth.

As of year-end, Kinder Morgan’s secured project backlog stands at $10 billion, up by approximately $650 million during the quarter. New awards totaled $900 million, led by long-term contracts on Florida Gas Transmission, while $265 million of projects were placed in service. Management is also pursuing over $10 billion of additional opportunities, including three major gas pipeline expansions—MSX, South System 4 and Trident—all on budget and on schedule, with FERC certificates anticipated by July and commercial service for Trident expected later this year.

The company ended 2025 with net debt to adjusted EBITDA of 3.8x, down from 4.1x a year earlier despite nearly $3 billion invested in growth projects and the Outrigger acquisition. Operating cash flow reached $5.92 billion, funding $3.15 billion of capital expenditures and $2.6 billion of dividends, while $380 million of divestiture proceeds helped offset investment. Credit rating agencies have upgraded Kinder Morgan’s outlook, with S&P moving to BBB Positive and Fitch to BBB+. Management plans roughly $3 billion of annual CapEx through 2026, expects to maintain leverage below 4.0x and will increase the quarterly dividend by 2%.