Kinder Morgan, Inc.

(New York Stock Exchange)
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Bullish +65

Kinder Morgan stock: Record quarter extends gas project runway

Capacity expansion Dividend Earnings report AI-generated analysis

πŸ“ˆ Kinder Morgan reported record third-quarter net income of $764 million, a significant increase from $628 million a year earlier.

πŸ’° Revenue reached $4.531 billion in the quarter, up from $4.146 billion in the third quarter of 2025.

πŸš€ The expansion project backlog increased by $4.7 billion to reach a total of $14.4 billion at the end of the quarter.

β›½ Natural gas projects now account for $13.2 billion of the backlog, marking the largest such portfolio in the company's history.

πŸ“… Two major additions, the Southeast Connector and Permian Link projects, are expected to begin service in 2030.

πŸ’΅ Management expects full-year adjusted EBITDA to exceed its budget by more than 6% for the current fiscal year.

πŸ“Š Adjusted earnings per share are projected to exceed the budget by more than 13%, reaching $0.35 in the quarter.

🏦 Net debt to adjusted EBITDA was 3.5 times at the end of September, slightly below the budgeted year-end level of 3.8 times.

πŸ’Έ The board approved a quarterly dividend of $0.2975 per share, payable on November 16, 2026.

πŸ”’ More than 75% of the total backlog is tied to power generation and local distribution company demand with take-or-pay terms.

Bullish Signals
  • Kinder Morgan reported record third-quarter net income of $764 million, a substantial increase from $628 million in the same period last year.
  • Revenue reached $4.531 billion in the quarter, demonstrating strong top-line growth compared to $4.146 billion a year earlier.
  • The expansion project backlog grew by $4.7 billion to $14.4 billion, with natural gas projects reaching a historic high of $13.2 billion.
  • Management expects full-year adjusted EBITDA to exceed its budget by more than 6%, indicating strong operational performance.
  • Adjusted earnings per share rose 21% to $0.35, significantly beating the budgeted expectations for the quarter.
  • The board approved a quarterly dividend of $0.2975 per share, which is 2% higher than the corresponding quarter last year.
  • Net debt to adjusted EBITDA was 3.5 times at the end of September, showing improved leverage compared to the budgeted 3.8 times.
  • More than 75% of the total backlog is tied to power generation and local distribution company demand with stable take-or-pay cash flows.
Full Analysis
Kinder Morgan reported record third-quarter results on October 21, 2026, driven by broad contributions across its business segments and stronger demand for gas transportation. Net income attributable to the company rose to $764 million from $628 million a year earlier, while adjusted net income increased 22% to $792 million. Revenue reached $4.531 billion compared with $4.146 billion in the same period last year. The expansion project backlog grew significantly to $14.4 billion at the end of the quarter, an increase of $4.7 billion from the second quarter. Natural gas projects now account for $13.2 billion of this backlog, representing the largest such portfolio in the company's history. More than 75% of the total backlog is tied to power generation and local distribution company demand, providing stable, primarily take-or-pay cash flows. Management expects full-year adjusted EBITDA to exceed its budget by more than 6% and adjusted EPS to exceed budget by more than 13%. The board approved a quarterly dividend of $0.2975 per share, which is 2% above the year-earlier quarter. Key growth drivers include the Southeast Connector and Permian Link projects, both expected to begin service in 2030 pending permits and approvals.