Kinder Morgan Inc. (KMI) reported first‑quarter 2026 earnings that beat expectations, delivering an adjusted earnings per share of $0.48 versus the consensus estimate of $0.38, a $0.10 or 26% surprise.
Revenue rose 13.8% to $4.83 billion, driven by a 15% increase in natural‑gas transport volumes and strong demand from LNG export and data‑center customers. The company’s Products Pipelines segment saw a 2% decline in refined‑product volumes and a 12% drop in crude/condensate volumes, offset by the natural‑gas growth.
Operating margin expanded to 29.9% from 27% year‑ago, reflecting a higher mix of fee‑based natural‑gas contracts and disciplined cost management. Net income climbed 36% to $976 million, and the company declared a quarterly dividend of $0.2975 per share, annualized to $1.19, a 2% increase over 2025. CFO David Michels noted, "For the quarter, we're declaring a dividend of $0.2975 per share, which is $1.19 annualized and an increase of 2% over 2025."
Management reaffirmed full‑year guidance, projecting adjusted EPS of $1.36 and adjusted EBITDA of $8.6 billion. The project backlog stood at $10.1 billion, up $145 million from Q4 2025, with $375 million of new projects added and $230 million of projects placed in service. CEO Kimberly Dang said, "Our project backlog at the end of the first quarter of 2026 was $10.1 billion, up $145 million from the fourth quarter of 2025, as we added $375 million of projects while placing $230 million of projects in service."
The results were well received by investors, with Moody’s upgrading Kinder Morgan’s credit rating to Baa1, underscoring the company’s strong financial position and the resilience of its fee‑based model amid geopolitical volatility.
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