Kinder Morgan 8-K
PositiveEarningsGuidance raised
Higher natural gas transport and gathering volumes fuel record earnings; FY2026 adjusted EPS and EBITDA outlooks rise.
Filed 2026-07-22 16:09 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with an updated FY2026 outlook. Kinder Morgan reported record second-quarter net income attributable to KMI and adjusted EBITDA. It expects adjusted EBITDA and adjusted EPS to finish more than 5% and 12% above budget, respectively, and year-end leverage to improve from budget.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Revenue | $4.48B | $4.04B | 11% |
| Operating income | $1.35B | $1.15B | 17% |
| Net income attributable to KMI | $867M | $715M | 21% |
| Adjusted Net Income attributable to KMI (non-GAAP) | $821M | $619M | 33% |
| EPS | $0.39 | $0.32 | 22% |
| Adjusted EPS (non-GAAP) | $0.37 | $0.28 | 32% |
| Adjusted EBITDA (non-GAAP) | $2.20B | $1.97B | 12% |
| Cash flow from operations | $1.96B | $1.65B | 19% |
| Free cash flow (non-GAAP) | $978M | $1.00B | -2% |
- Segment contributions were broadly stronger: natural gas transport volumes rose 7% and gathering volumes 26%; higher commodity prices supported Products Pipelines and CO2 results. Refined product volumes fell 5% and crude and condensate volumes fell 16%.
- Expansion projects representing approximately $660M of KMI-share investment entered service. The project backlog was $9.6B, down $500M Q/Q; almost $400M of contingentally approved projects were not yet included. The remaining $8.5B of backlog projects are expected to generate an aggregate first-full-year Project EBITDA multiple of approximately 5.6x.
- Cash flow from operations was $1.96B and free cash flow after capital expenditures was $978M; free cash flow after dividends was $313M. Net debt was $32.0B, with net debt-to-adjusted EBITDA of 3.6x. The board declared a $0.2975/share dividend, up 2% Y/Y, payable 8/17/2026.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Net income attributable to KMI (GAAP) | FY2026 | $3.1B budget | — | — |
| Adjusted EPS (non-GAAP) | FY2026 | More than 12% favorable to $1.36 budget | $1.36 budget | Raised |
| Adjusted EBITDA (non-GAAP) | FY2026 | More than 5% favorable to $8.6B budget | $8.6B budget | Raised |
| Declared dividends per share | FY2026 | $1.19 budget | — | — |
| Net debt-to-adjusted EBITDA | Year-end 2026 | 3.6x | 3.8x budget | Lowered |
Investor Takeaways
- FERC had indicated it expected certificate orders for the South System Expansion 4 and Mississippi Crossing projects by the end of July 2026; permits and approvals remain key to their planned service dates in 2028 and 2029.
- FY2026 adjusted EBITDA, adjusted EPS and year-end leverage versus the updated outlook are the next performance measures to watch.
The summary is written by an AI model reading the filing.
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