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Kinder Morgan's Q4 Earnings Beat on Natural Gas Pipelines Contributions
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Key Takeaways
KMI reported Q4 adjusted EPS of 39 cents, beating estimates, with revenue rising to $4.5 billion.
Kinder Morgan's Natural Gas Pipelines segment posted record Q4 EBDA, driven by higher volumes and key assets.
KMI ended the quarter with a $10B project backlog, with natural gas projects making up about 90%.
Kinder Morgan Inc. (KMI - Free Report) reported fourth-quarter 2025 adjusted earnings per share (EPS) of 39 cents, which beat the Zacks Consensus Estimate of 37 cents. The bottom line also increased year over year from 32 cents.
Total quarterly revenues of $4.5 billion beat the Zacks Consensus Estimate of $4.4 billion. The top line also increased from $4 billion in the prior-year quarter.
The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
Kinder Morgan, Inc. Price, Consensus and EPS Surprise
Natural Gas Pipelines: In the December-ended quarter, adjusted earnings before depreciation, depletion and amortization expenses (EBDA) jumped to $1.63 billion from $1.43 billion a year ago. The segment achieved record financial results in the fourth quarter, primarily driven by higher contributions from the Texas Intrastate system, KinderHawk and Outrigger Energy assets. Natural gas transport volumes and gathering volumes were also higher compared with the fourth quarter of 2024.
Product Pipelines: The segment’s EBDA in the fourth quarter was $307 million, an increase from $299 million recorded a year ago. The increase can be attributed to higher transport rates in the quarter compared with the corresponding period of 2024.
Terminals: Kinder Morgan generated a quarterly EBDA of $294 million from the segment, higher than $282 million reported in the year-ago period. Liquids utilization was at 92.9% in the quarter, lower than 95.2% in the prior-year quarter. The segment was aided by the liquids terminals business, supported by increased rates and ancillary fees at the Houston Ship Channel hub.
CO2: The segment’s EBDA was $145 million, plummeting from the year-ago quarter’s $161 million.
Operational Highlights
Expenses related to operations and maintenance totaled $787 million, up from $761 million registered a year ago. However, the total operating costs, expenses and other expenditures increased to $3.14 billion from $2.88 billion.
KMI’s project backlog was reported at $10 billion by the end of the fourth quarter. The midstream energy major added that natural gas projects comprise approximately 90% of its project backlog.
Balance Sheet
As of Dec. 31, 2025, KMI reported $63 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $30.6 billion.
Outlook
For this year, the midstream player projected net income attributable to KMI at $3.1 billion and estimated adjusted EPS at $1.36 per share. The company also expects the budgeted Adjusted EBITDA for 2026 to be $8.6 billion. Kinder Morgan, currently carrying a Zacks Rank #3 (Hold), anticipates ending 2026 with its net debt-to-adjusted EBITDA at 3.8x.
Stocks to Consider
Cenovus Energy Inc.(CVE - Free Report) is a Canadian integrated energy company with operations spanning the upstream, midstream and downstream sectors. The company is involved in exploration and production from its low-cost oil sands and heavy oil assets in Canada. The strategic MEG Energy acquisition is expected to provide a boost to Cenovus Energy's production levels in 2026. CVE currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Oceaneering International (OII - Free Report) delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth. OII currently sports a Zacks Rank #1.
W&T Offshore (WTI - Free Report) benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s recent acquisition of six shallow-water fields in the Gulf of America boosts its production prospects in the future, which is expected to enhance its revenues. WTI currently carries a Zacks Rank #2 (Buy).
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Kinder Morgan's Q4 Earnings Beat on Natural Gas Pipelines Contributions
Key Takeaways
Kinder Morgan Inc. (KMI - Free Report) reported fourth-quarter 2025 adjusted earnings per share (EPS) of 39 cents, which beat the Zacks Consensus Estimate of 37 cents. The bottom line also increased year over year from 32 cents.
Total quarterly revenues of $4.5 billion beat the Zacks Consensus Estimate of $4.4 billion. The top line also increased from $4 billion in the prior-year quarter.
The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
Kinder Morgan, Inc. Price, Consensus and EPS Surprise
Kinder Morgan, Inc. price-consensus-eps-surprise-chart | Kinder Morgan, Inc. Quote
Segmental Analysis
Natural Gas Pipelines: In the December-ended quarter, adjusted earnings before depreciation, depletion and amortization expenses (EBDA) jumped to $1.63 billion from $1.43 billion a year ago. The segment achieved record financial results in the fourth quarter, primarily driven by higher contributions from the Texas Intrastate system, KinderHawk and Outrigger Energy assets. Natural gas transport volumes and gathering volumes were also higher compared with the fourth quarter of 2024.
Product Pipelines: The segment’s EBDA in the fourth quarter was $307 million, an increase from $299 million recorded a year ago. The increase can be attributed to higher transport rates in the quarter compared with the corresponding period of 2024.
Terminals: Kinder Morgan generated a quarterly EBDA of $294 million from the segment, higher than $282 million reported in the year-ago period. Liquids utilization was at 92.9% in the quarter, lower than 95.2% in the prior-year quarter. The segment was aided by the liquids terminals business, supported by increased rates and ancillary fees at the Houston Ship Channel hub.
CO2: The segment’s EBDA was $145 million, plummeting from the year-ago quarter’s $161 million.
Operational Highlights
Expenses related to operations and maintenance totaled $787 million, up from $761 million registered a year ago. However, the total operating costs, expenses and other expenditures increased to $3.14 billion from $2.88 billion.
KMI’s project backlog was reported at $10 billion by the end of the fourth quarter. The midstream energy major added that natural gas projects comprise approximately 90% of its project backlog.
Balance Sheet
As of Dec. 31, 2025, KMI reported $63 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $30.6 billion.
Outlook
For this year, the midstream player projected net income attributable to KMI at $3.1 billion and estimated adjusted EPS at $1.36 per share. The company also expects the budgeted Adjusted EBITDA for 2026 to be $8.6 billion. Kinder Morgan, currently carrying a Zacks Rank #3 (Hold), anticipates ending 2026 with its net debt-to-adjusted EBITDA at 3.8x.
Stocks to Consider
Cenovus Energy Inc.(CVE - Free Report) is a Canadian integrated energy company with operations spanning the upstream, midstream and downstream sectors. The company is involved in exploration and production from its low-cost oil sands and heavy oil assets in Canada. The strategic MEG Energy acquisition is expected to provide a boost to Cenovus Energy's production levels in 2026. CVE currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Oceaneering International (OII - Free Report) delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth. OII currently sports a Zacks Rank #1.
W&T Offshore (WTI - Free Report) benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s recent acquisition of six shallow-water fields in the Gulf of America boosts its production prospects in the future, which is expected to enhance its revenues. WTI currently carries a Zacks Rank #2 (Buy).