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Kinder Morgan (KMI) Up 5.6% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Kinder Morgan (KMI - Free Report) . Shares have added about 5.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Kinder Morgan due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
Kinder Morgan Q1 Earnings Beat Estimates
Kinder Morgan reported first-quarter 2026 adjusted earnings per share (EPS) of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents.
Total quarterly revenues of $4.83 billion beat the Zacks Consensus Estimate of $4.65 billion. The top line also increased from $4.24 billion in the prior-year quarter.
The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
Segmental Analysis
Natural Gas Pipelines: In the March-ended quarter, adjusted earnings before depreciation, depletion and amortization expenses (EBDA) jumped to $1.80 billion from $1.53 billion a year ago. The segment achieved record financial results in the first quarter, primarily driven by higher contributions from the Texas Intrastate system due to cold weather as well as from the Tennessee Gas Pipeline. Natural gas transport volumes, natural gas sales volumes and gathering volumes were also higher compared with the first quarter of 2025.
Product Pipelines: The segment’s EBDA in the first quarter of 2026 was $325 million, an increase from $274 million recorded a year ago. The increase can be attributed to higher transport benefiting the transmix business, recovery of retroactive rate increases after a favorable court ruling and the recovery from a previous turnaround at the condensate processing facility.
Terminals: Kinder Morgan generated a quarterly EBDA of $330 million from the segment, higher than the $275 million reported in the year-ago period. Liquids utilization was 93.5% in the quarter, lower than 94.3% 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, early termination payments from storage agreements and increased earnings from fully contracted bulk terminals and Jones Act tankers.
CO2: The segment’s EBDA was $189 million, up from the year-ago quarter’s $182 million.
Operational Highlights
Expenses related to operations and maintenance remained flat year over year at $711 million. However, the total operating costs, expenses and other expenditures increased to $3.38 billion from $3.10 billion.
KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.
Balance Sheet
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 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 #2 (Buy), anticipates ending 2026 with its net debt-to-adjusted EBITDA at 3.8X
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
VGM Scores
At this time, Kinder Morgan has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Kinder Morgan has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Kinder Morgan (KMI) Up 5.6% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Kinder Morgan (KMI - Free Report) . Shares have added about 5.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Kinder Morgan due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
Kinder Morgan Q1 Earnings Beat Estimates
Kinder Morgan reported first-quarter 2026 adjusted earnings per share (EPS) of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents.
Total quarterly revenues of $4.83 billion beat the Zacks Consensus Estimate of $4.65 billion. The top line also increased from $4.24 billion in the prior-year quarter.
The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
Segmental Analysis
Natural Gas Pipelines: In the March-ended quarter, adjusted earnings before depreciation, depletion and amortization expenses (EBDA) jumped to $1.80 billion from $1.53 billion a year ago. The segment achieved record financial results in the first quarter, primarily driven by higher contributions from the Texas Intrastate system due to cold weather as well as from the Tennessee Gas Pipeline. Natural gas transport volumes, natural gas sales volumes and gathering volumes were also higher compared with the first quarter of 2025.
Product Pipelines: The segment’s EBDA in the first quarter of 2026 was $325 million, an increase from $274 million recorded a year ago. The increase can be attributed to higher transport benefiting the transmix business, recovery of retroactive rate increases after a favorable court ruling and the recovery from a previous turnaround at the condensate processing facility.
Terminals: Kinder Morgan generated a quarterly EBDA of $330 million from the segment, higher than the $275 million reported in the year-ago period. Liquids utilization was 93.5% in the quarter, lower than 94.3% 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, early termination payments from storage agreements and increased earnings from fully contracted bulk terminals and Jones Act tankers.
CO2: The segment’s EBDA was $189 million, up from the year-ago quarter’s $182 million.
Operational Highlights
Expenses related to operations and maintenance remained flat year over year at $711 million. However, the total operating costs, expenses and other expenditures increased to $3.38 billion from $3.10 billion.
KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.
Balance Sheet
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 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 #2 (Buy), anticipates ending 2026 with its net debt-to-adjusted EBITDA at 3.8X
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
VGM Scores
At this time, Kinder Morgan has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Kinder Morgan has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.