Kinder Morgan Inc has announced adjusted earnings per share (EPS) guidance of $1.37 for 2026, with the North American pipeline operator encouraged by growth in the liquefied natural gas (LNG) and power sectors.
That is an increase of eight percent versus its adjusted EPS forecast for 2025. For 2026 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), Kinder Morgan expects $8.7 billion, up four percent compared to its guidance for 2025.
The outlook reflects “continued execution on expansion projects in our natural gas pipelines business segment”, chief executive Kim Dang said in an online statement.
“We are projecting an annualized dividend of $1.19 for 2026, marking the ninth consecutive year of dividend increases”, Dang added.
“Our year-end 2026 net debt-to-adjusted EBITDA ratio is forecast at 3.8 times, remaining at the low end of our 3.5x-4.5x target range and preserving flexibility for opportunistic investments”.
The Houston, Texas-based owner of oil and gas pipelines and terminals, which also produces oil and renewable natural gas, plans nearly $3.4 billion in discretionary capital next year, “substantially funded from internally generated cash flow”.
Kinder Morgan president Tom Martin said, “We expect to continue benefiting from strong natural gas market fundamentals, supporting growth on our existing transportation and storage assets and creating expansion opportunities”.
For the first nine months of 2025, Kinder Morgan recorded $0.91 in EPS adjusted for nonrecurring items. That was up 10 percent from the same period in 2024, according to its third-quarter report October 22.
Adjusted EBITDA for January-September 2025 totaled $6.12 billion, up four percent year-on-year.
Volumes transported via its gas and liquid pipelines rose year-over-year. Gas transport volumes exceeded 46 trillion British thermal units a day, while it delivered 2.12 million barrels per day of liquids (crude oil, condensate and refined products).
Revenue totaled $12.43 billion, up from $11.11 billion for the first nine months of 2024.
“We are firmly in an era of American global energy leadership”, executive chair Richard D. Kinder said in the quarterly report. “The United States continues to lead the world in natural gas production and in exports of liquefied natural gas, providing enhanced energy security to allies around the world.
“With historic growth in global natural gas demand, a favorable federal regulatory landscape and strong support from permitting agencies, the outlook for our company is exceptionally promising”, Kinder added.
“Our long-standing business model – owning midstream energy assets anchored by long-term, take-or-pay, fee-based contracts with creditworthy customers – positions us to continue delivering reliable performance and sustained value”.
Dang added, “KMI is seeing an opportunity set more robust than at any time in the company’s history. U.S. LNG nameplate capacity is expected to more than double by 2030. We currently have long-term contracts to move almost eight billion cubic feet per day (Bcfd) of natural gas to LNG facilities and, upon completion of projects under construction, that amount is expected to grow to almost 12 Bcfd by the end of 2028. We are also pursuing a substantial number of additional LNG feedgas opportunities”.
“Overall, total demand for natural gas is expected to grow by 20 percent through 2030, led by LNG exports”, Dang said.
“We are also actively exploring more than 10 Bcfd of opportunities to serve the natural gas power generation sector. Approximately 50 percent of our backlog is associated with projects supporting power generation. In the markets we serve, we expect robust growth in power demand in the coming years.
“With 66,000 miles of natural gas pipelines connected to all major basins and demand centers, along with more than 700 Bcf of working gas storage capacity, we are confident that we will secure our share of additional natural gas infrastructure projects supporting demand growth.
“Reflecting this strong demand, natural gas projects account for approximately 90 percent of our project backlog. At the end of the third quarter of 2025, the backlog stood at $9.3 billion, with approximately $500 million of projects placed in service during the quarter offset by a roughly equivalent amount of projects added”.
“Looking ahead, we anticipate meaningful tax advantages that will further strengthen our cash flow profile”, Dang said. “The permanent reinstatement of bonus depreciation and the potential for expanded interest expense deductibility are expected to reduce our cash tax liability starting in 2025, with even greater benefits as new projects come online in 2026 and 2027. Additionally, recent regulatory adjustments to the corporate alternative minimum tax will unlock further savings beginning in 2026”.
To contact the author, email jov.onsat@rigzone.com
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