Kinder Morgan Reports Q2 2026 Results: Full Earnings Call Transcript

Kinder Morgan (NYSE: KMI ) released second-quarter financial results and hosted an earnings call on Wednesday.

Read the complete transcript below.

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For comprehensive financial data and transcripts, visit View the webcast at Summary Kinder Morgan Inc. reported strong Q2 2026 results with a 12% increase in adjusted EBITDA and a 32% increase in adjusted EPS compared to Q2 2025, outperforming both previous year and budget expectations.

The company is experiencing significant growth in its natural gas segment, driven by increased LNG exports and power generation demand, leading to new midstream infrastructure opportunities.

Kinder Morgan plans to FID substantial new CapEx projects during 2026, funded primarily through internally generated cash flow, while maintaining a low debt to EBITDA ratio.

The company's backlog decreased slightly due to $650 million of projects going into service, but new projects are poised to replenish it, with $400 million in advanced contract negotiations.

Management increased FY 2026 guidance, expecting adjusted EBITDA to exceed budget by at least 5% and adjusted EPS by at least 12%, citing broad-based performance across all business segments.

Natural Gas transport volumes were up 7%, and gathering volumes increased by 26% year-over-year, driven by demand from LNG exports, power generation, and exports to Mexico.

Western Gateway and other large projects are advancing, with Kinder Morgan seeing significant opportunities in power generation and LNG sectors, indicating a robust future project pipeline.

The company declared a quarterly dividend of $0.2975 per share, up 2% from 2025, maintaining investor returns despite increased capital spending.

Full Transcript OPERATOR Welcome to Kinder Morgan's second quarter 2026 earnings results conference call.

Today's conference is being recorded.

I will now turn the call over to Mr.

Rich Kinder, Executive Chairman of Kinder Morgan.

Rich Kinder, Executive Chairman Thank you, Ted.

Before we begin, as we usually do, I'd like to remind you that KMI's earnings release today and this call include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities and Exchange Act of 1934, as well as certain non-GAAP financial measures.

Before making any investment decisions, we strongly encourage you to read our full disclosures on forward-looking statements and use of non-GAAP financial measures set forth at the end of our earnings release, as well as review our latest filings with the SEC for important material assumptions, expectations and risk factors that may cause actual results to differ materially from those anticipated and described in such forward-looking statements.

My remarks for this investor call can really be summed up in four sentences.

First, the second quarter was another strong quarter for KMI, as both our EBITDA and EPS continued to exceed both prior year and our own budget for 2026 by significant margins.

Second, the natural gas growth story remains very positive, as demand for LNG export volumes and gas for electric generation continues to grow.

Third, this growth is leading to numerous additional opportunities to build new midstream infrastructure supported by long-term contracts with creditworthy customers, and we expect to FID very substantial additional CapEx projects during the remainder of this year.

Finally, and very importantly, we can fund these projects almost completely with our internally generated cash flow while still continuing to pay a solid and growing dividend and maintaining a debt to EBITDA ratio at the lower end of our targeted range.

Now, for some of you, those four sentences may not make a compelling case for investing in Kinder Morgan — not an exciting enough story — but I will remind you that this unexciting company has, over the last 29 years of its existence, grown its enterprise value at a compound annual rate of approximately 22% while also paying out over $40 billion in dividends.

Now, just maybe that gives us, what we say, a little bit of credibility, and with that, I'll turn it over to Kim and the team.

Kim Dang, CEO All right, thank you, Rich.

We're extremely pleased with our second quarter results — another fantastic quarter for Kinder Morgan, one that reflects both the strength of our underlying business and the outstanding execution of our employees across the company.

We significantly outperformed both last year and our budget expectations.

Adjusted EBITDA increased 12% compared to 2Q25, while adjusted earnings per share increased 32%.

Importantly, growth was broad-based, with every one of our business segments contributing positively to the quarter's strong performance.

Given our results through the first half of the year and our confidence in the outlook for the remainder of 2026, we are increasing our guidance.

We now expect full-year adjusted EBITDA to be at least 5% above our ’26 budget, and adjusted EPS to be at least 12% above our original budget.

Turning to growth capital, our backlog remains one of the strongest in our history.

During the quarter, our backlog decreased from approximately $10.1 billion to $9.6 billion.

This decline was primarily the result of successfully placing more than $650 million of projects into service, partially offset by approximately $200 million of new project additions.

While our sanctioned backlog was down modestly this quarter, today the board contingently approved almost $400 million of projects which are in advanced contract negotiations and will be added to the backlog upon contract execution, virtually offsetting this quarter's decline.