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This article first appeared on GuruFocus.
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Adjusted EBITDA: Increased by 10% compared to Q4 2024.
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Adjusted EPS: Grew 22% compared to Q4 2024.
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Net Income: $996 million, up 49% from Q4 2024.
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EPS: $0.45, 50% above Q4 2024.
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Dividend: $0.2925 per share, annualized at $1.17, up 2% from 2024.
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Project Backlog: Increased by $650 million to $10 billion.
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Natural Gas Transport Volumes: Up 9% in Q4 2025 compared to Q4 2024.
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Natural Gas Gathering Volumes: Up 19% in Q4 2025 compared to Q4 2024.
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Refined Products Volumes: Down 2% in Q4 2025 compared to Q4 2024.
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Crude and Condensate Volumes: Down 8% in Q4 2025 compared to Q4 2024.
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Liquids Lease Capacity: 93% utilization.
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Net Debt to Adjusted EBITDA Ratio: Improved to 3.8 times.
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Cash Flow from Operations: $5.92 billion.
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Capital Expenditures: $3.15 billion, including growth and sustaining CapEx.
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Outrigger Acquisition: $650 million spent.
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Divestitures: $380 million received, primarily from the EagleHawk sale.
Release Date: January 21, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Kinder Morgan Inc (NYSE:KMI) reported a strong fourth quarter with adjusted EBITDA up 10% and adjusted EPS growing 22% compared to the previous year.
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The company has a robust project backlog of $10 billion, with significant new projects added, indicating strong future growth potential.
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S&P upgraded Kinder Morgan Inc (NYSE:KMI) to BBB+, reflecting a strong balance sheet and financial health.
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Natural gas transport volumes increased by 9% in the quarter, driven by increased LNG feed gas deliveries.
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The company declared a quarterly dividend of $0.2925 per share, up 2% from the previous year, indicating a commitment to returning value to shareholders.
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Refined products volumes were down 2% in the quarter compared to the previous year, indicating challenges in that segment.
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Crude and condensate volumes decreased by 8% in the quarter, primarily due to taking Double H out of service for an NGL conversion project.
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The CO2 segment experienced lower production volumes, with oil, NGL, and CO2 volumes all down compared to the previous year.
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The company faces competitive pressures in securing new projects, particularly in the Southeast and Midwest regions.
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There is uncertainty regarding the timing and financial impact of certain projects, such as the Western Gateway Pipeline and Mississippi Crossing, which could affect future earnings.
Q: Can you discuss the opportunities related to data centers and power projects within your $10 billion backlog? A: Kimberly Allen Dang, CEO: About 60% of our backlog is associated with power projects, including data centers. For example, Georgia Power projects 53 gigawatts of power demand by the early 2030s, which could translate to significant natural gas demand. We see similar opportunities across our network, driven by increasing power demand projections.
Q: What are the next steps for the Western Gateway project following the second open season? How do you prioritize capital allocation between this and natural gas projects? A: Kimberly Allen Dang, CEO: We evaluate projects based on risk and return. Western Gateway will likely have long-term contracts with creditworthy parties. We have sufficient capital to fund both this project and our natural gas projects. Our cash contribution will be less than half due to asset contributions in a joint venture with Phillips 66.
Q: How do you plan to maintain leverage levels given multiple CapEx opportunities? A: Kimberly Allen Dang, CEO: We plan to spend about $3 billion per year in CapEx, funded entirely from cash flow. As our $10 billion backlog comes online, our debt-to-EBITDA ratio will decline, creating more balance sheet capacity. We have no intention of leveraging up to the high end of our 3.5 to 4.5 times range.
Q: Can you provide an update on the HH conversion project and its expected impact given the current outlook for the Bakken? A: Kimberly Allen Dang, CEO: The project is expected to come online in late Q1 or early Q2. Phase 1 is well contracted, and we see volumes behind it. We continue to have positive discussions for future phases, and GORs are growing in the Bakken.
Q: Are there more non-core assets you are looking to sell following the EagleHawk sale? A: Kimberly Allen Dang, CEO: The EagleHawk sale was opportunistic, driven by a partner’s decision to sell. We evaluate asset sales based on economic decisions and are comfortable with our current asset portfolio. Our assets are always for sale at the right price, but we are not actively looking to sell more.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.