Kinder Morgan Inc - Class P
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.95%.
Did KMI Beat Earnings? Q1 2026 Results
Kinder Morgan posted a blowout first quarter for 2026, with earnings per share of $0.48 beating the $0.39 consensus estimate by 22.11% and revenue of $4.83 billion topping expectations by 6.19% on 13.5% year-over-year growth. The standout driver was the Natural Gas Pipelines segment, where winter storm Fern and extended cold weather powered the Texas Intrastate system to exceptional performance, lifting Adjusted EBITDA to $2.54 billion, up 18% from a year ago, while GAAP net income attributable to KMI surged 36% to $976 million. Free cash flow climbed 73% to $687 million, reflecting both the weather-related windfall and strong underlying demand. The company is now trending more than 3% favorable to its full-year Adjusted EBITDA budget of $8.6 billion, even as that guidance excludes the recently announced $505 million Monument Pipeline acquisition, which adds roughly 225 miles of natural gas infrastructure serving Houston. With Moody's upgrading KMI's credit rating to Baa1 and a $10.10 billion project backlog weighted heavily toward power generation demand, management enters the remainder of 2026 with considerable momentum.
- Winter storm Fern and extended cold weather driving Natural Gas Pipelines outperformance
- Higher contributions from Texas Intrastate system
- Natural gas transport volumes up 8% driven by LNG deliveries on Tennessee Gas Pipeline
- Natural gas gathering volumes up 15% with KinderHawk leading growth
- Higher commodity prices benefiting transmix business in Products Pipelines
- Favorable court decision enabling recovery of retroactive rate increases
- Higher rates and ancillary fees at Houston Ship Channel hub facilities
- Early termination payments from certain storage agreements in Terminals
- Renewable natural gas contributions and lower power costs in CO2 segment
- Pipeline utilization across five major natural gas systems reached 90% in 2025 vs 74% in 2016
“For the quarter all of our business segments were well up, excluding Certain Items, versus the first quarter of 2025. Our Natural Gas Pipelines segment drove the bulk of that outperformance, benefiting from winter storm Fern and extended cold weather. The company delivered first quarter 2026 net income attributable to KMI of $976 million, 36% higher than the first quarter of 2025 — while Adjusted EPS and Adjusted EBITDA were 41% and 18% higher, respectively, than the first quarter of 2025.”
Kinder Morgan CEO, on the earnings call
Forward Guidance & Outlook
For 2026, KMI budgeted net income attributable to KMI of $3.1 billion, flat to the previous year. Budgeted adjusted net income attributable to KMI is 5% higher than 2025, with Adjusted EPS of $1.36 (up 5% from 2025). The company expects to declare dividends of $1.19 per share for 2026, a 2% increase from 2025. Budgeted 2026 Adjusted EBITDA is $8.6 billion, up 2% versus 2025, with an expected year-end Net Debt-to-Adjusted EBITDA ratio of 3.8 times. KMI is trending more than 3% favorable to budget on Adjusted EBITDA due to Q1 outperformance from colder-than-normal weather. This guidance excludes expected contributions from the Monument Pipeline acquisition.
KMI YoY Financials
KMI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.