Kinder Morgan (NYSE:KMI) executives said the company closed 2025 with record quarterly and full-year results, driven primarily by strength across its natural gas businesses and supported by a growing project backlog and improving credit profile.
Management highlights strong natural gas demand outlook
Executive Chairman Rich Kinder said the company remains bullish on long-term U.S. natural gas demand, citing liquefied natural gas (LNG) feed gas as the “largest and most certain driver” of growth. Kinder Morgan now estimates LNG feed gas demand will average 19.8 Bcf per day in 2026, which would be an all-time record and a 19% increase from the 16.6 Bcf per day daily average in 2025. He also said the company expects demand to rise to more than 34 Bcf per day by 2030.
Fourth-quarter and full-year results set records
Chief Executive Officer Kim Dang said the company delivered a “fantastic” fourth quarter, producing record results for both the quarter and the year. She said fourth-quarter adjusted EBITDA increased 10% versus the fourth quarter of 2024, while adjusted earnings per share grew 22%.
Chief Financial Officer David (as introduced on the call) reported fourth-quarter net income attributable to Kinder Morgan of $996 million and EPS of $0.45, which were 49% and 50% higher, respectively, than the fourth quarter of 2024. He noted the quarter included a gain on an asset sale that the company treats as a “certain item.” Excluding certain items, adjusted net income and adjusted EPS were still up 22% year over year.
Management attributed the quarter’s growth to natural gas expansion projects placed into service, contributions from the Outrigger acquisition, and ongoing demand for natural gas transport, storage, and related services. For the full year, the company said it exceeded its budget, with outperformance driven largely by the natural gas business through greater value on transport capacity and ancillary services. The terminals segment also contributed more than budgeted.
The company said its 2025 adjusted EBITDA and net income were all-time record levels. Management also compared performance to internal targets, noting that while it budgeted adjusted EBITDA growth of 4% and adjusted EPS growth of 10% versus 2024, it achieved adjusted EBITDA growth of 6% and adjusted EPS growth of 13%.
Backlog grows to $10 billion; major projects advance
Dang said Kinder Morgan’s project backlog increased by about $650 million to $10 billion. The company added a little over $900 million in new projects during the period, offset by $265 million of projects placed in service. Dang said the two most significant additions were Florida Gas Transmission projects supported by long-term shipper contracts. Management said the backlog multiple remains below six times and is expected to drive growth over the next few years.
Beyond the approved backlog, Dang said the company is working on more than $10 billion of additional project opportunities, though she cautioned Kinder Morgan “won’t be successful on all of those.” She cited Wood Mackenzie projections showing an incremental 20 Bcf per day of U.S. natural gas demand growth between 2030 and 2035.
On three major projects—MSX, South System 4, and Trident—Dang said construction on Trident began last week. For MSX and South System 4, management said it received a Federal Energy Regulatory Commission scheduling order and that FERC anticipates issuing a final certificate by July 31, a timeline management requested and said was ahead of its original expectation. Management said all three projects are on budget and on or ahead of schedule.
During Q&A, management added that the removal of what it referred to as “871” eliminated a prior five-month waiting period between receiving a FERC certificate and beginning construction, and said the overall FERC process on MSX took roughly 12 months. As a result, management said MSX’s in-service timing moved from the fourth quarter of 2028 to the second quarter of 2028. Executives also cautioned that earlier regulatory progress does not automatically translate into earlier in-service dates, because timing can depend on factors such as equipment availability and customer needs.
Segment performance: gas strength, mixed liquids trends, high terminal utilization
Natural gas performance was a recurring theme throughout the call. Management said transport volumes rose 9% in the fourth quarter versus the year-ago quarter, primarily due to increased LNG feed gas deliveries on the Tennessee Gas Pipeline. For the full year, transport volumes increased 5% versus 2024. Natural gas gathering volumes increased 19% in the quarter year over year across the company’s GNP assets, with the largest impact from its Haynesville system. Management noted Haynesville set a daily throughput record of 1.97 Bcf per day on Dec. 24.
In products pipelines, refined products volumes were down 2% in the quarter versus the fourth quarter of 2024, while full-year refined products volumes were about equal to 2024. Crude and condensate volumes fell 8% in the quarter, which management said was more than entirely due to taking Double H out of service for an NGL conversion project early in the third quarter of 2025. Excluding Double H volumes in both periods, crude and condensate volumes were up 6% year over year for the quarter.
Management also discussed the Western Gateway Pipeline System with Phillips 66. Executives said Kinder Morgan and Phillips 66 launched a second open season on Jan. 16, 2026, which runs through March 31, 2026, for remaining capacity and includes expanded destinations and additional origin points. The project would connect Midwest and other refinery supply to Phoenix and California, with connectivity to Las Vegas via Kinder Morgan’s CalNev pipeline. Management said the second open season includes potential new access to the Los Angeles market via a joint tariff supported by a planned reversal of one of Kinder Morgan’s existing SFPP lines between Watson and Colton, California.
In terminals, the company reported liquid lease capacity remained high at 93%, with utilization of tanks available for use at 99% at its key hubs on the Houston Ship Channel and at Carteret, New Jersey. Management said its Jones Act tanker fleet remains “exceptionally well contracted,” with the fleet 100% leased through 2026, 97% leased through 2027, and 80% leased through 2028.
In CO2, management said the segment experienced 1% lower oil production volumes, 2% lower NGL volumes, and 2% lower CO2 volumes in the quarter versus the fourth quarter of 2024. For full-year 2025, oil volumes were about 2% below 2024, though management said results finished strong in the fourth quarter and were slightly above plan for the year.
Dividend, balance sheet, ratings, and capital allocation
The company declared a quarterly dividend of $0.2925 per share, or $1.17 annualized, which management said is up 2% from 2024.
Executives emphasized balance sheet progress. Net debt-to-adjusted EBITDA improved to 3.8x, down from 3.9x in the prior quarter and down from 4.1x at the end of the first quarter following the Outrigger acquisition. The company said that since the end of 2024, net debt decreased by $9 million despite nearly $3 billion of investments in growth projects and the acquisition. Management provided a cash flow walk, citing $5.92 billion in cash flow from operations, $2.6 billion in dividends, $3.15 billion in total CapEx, about $650 million spent on the Outrigger acquisition, and $380 million received from divestitures, primarily the EagleHawk sale.
Management said credit agencies have recognized its strengthened profile, pointing to an S&P upgrade to BBB Positive and a Fitch upgrade to BBB Plus during summer 2025, along with a positive outlook from Moody’s.
On capital spending, management said it expects to spend roughly $3 billion per year in CapEx and stated it has the ability to fund that out of cash flow. Executives said they do not intend to approach the top end of their 3.5x–4.5x long-term leverage range. In discussing potential additional projects, management said the revised spending outlook is largely based on the current $10 billion approved backlog, with a smaller portion tied to potential projects in the broader opportunity set.
In Q&A on asset sales, management said the EagleHawk divestiture was opportunistic and not planned, describing it as an 8.5x multiple sale of a non-operated minority interest. Executives reiterated that the company is comfortable with its portfolio mix and evaluates asset sales based on economic returns.
About Kinder Morgan (NYSE:KMI)
Kinder Morgan (NYSE: KMI) is a large energy infrastructure company that owns and operates an extensive network of pipelines and terminals across North America. Its core activities center on the transportation, storage and handling of energy products, including natural gas, natural gas liquids (NGLs), crude oil, refined petroleum products and carbon dioxide. The company’s assets include long-haul and gathering pipelines, storage facilities, and multi-modal terminals that serve producers, refiners, utilities and industrial customers.
Kinder Morgan’s operations deliver midstream services such as pipeline transportation, terminaling, storage and related logistics and maintenance.
