Kinder Morgan Expects Earnings and EBITDA Growth in 2026
Kinder Morgan expects stronger financial results in 2026, forecasting an 8% increase in adjusted earnings per share and nearly $8.7 billion in adjusted EBITDA as its natural gas pipeline expansion program continues to underpin growth.
The company’s early guidance outlines Adjusted EPS of $1.37 and Adjusted EBITDA of $8.7 billion, representing year-on-year increases of 8% and 4%, respectively, versus its 2025 guidance issued last quarter. CEO Kim Dang attributed the gains to “continued execution on expansion projects” across its Natural Gas Pipelines segment—still the backbone of KMI’s portfolio as U.S. gas demand remains robust for LNG exports, power generation, and industrial consumption.
Kinder Morgan also plans to raise its annualized dividend to $1.19 per share, marking its ninth consecutive year of increases. The company expects to end 2026 with leverage at 3.8x Net Debt-to-Adjusted EBITDA, keeping it at the low end of its long-term target and signaling headroom for opportunistic investments.
Capex is set at $3.4 billion, focused primarily on natural gas infrastructure expansions and JV contributions. Management emphasized that discretionary spending would be funded largely through internally generated cash flow.
The outlook underscores long-running sector trends: steady North American gas demand growth, strong utilization of existing pipeline and storage assets, and multiyear expansion cycles driven by LNG export capacity additions and winter reliability requirements. For Kinder Morgan, the largest natural gas transmission network operator in the U.S., these fundamentals remain the primary catalyst for organic growth.
President Tom Martin said the company continues to benefit from “strong natural gas market fundamentals,” which support incremental expansions across its system. Kinder Morgan’s vast network—79,000 miles of pipelines and more than 700 Bcf of working gas storage—positions it to capitalize on tightening U.S. gas logistics as new LNG terminals and regional load centers come online through the decade.
The company noted that its board has preliminarily reviewed the 2026 budget, with formal approval expected at the January meeting coinciding with fourth-quarter earnings. A detailed Business Update presentation is scheduled for release later that month.
By Charles Kennedy for Oilprice.com
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