Kinder Morgan reported record fourth‑quarter 2025 revenue of $4.51 billion, up 10% from $4.10 billion a year earlier, and adjusted earnings per share of $0.39, beating consensus estimates of $0.37 (or $0.36) by $0.02–$0.03. Net income attributable to the company rose to $996 million, a 49% increase from the same quarter last year, while adjusted EBITDA climbed 10% year‑over‑year to $2.27 billion. The company also raised its quarterly cash dividend to $0.2925 per share, a 2% increase from the prior quarter, and will pay the dividend on February 17 to shareholders of record as of February 2.
The revenue beat was driven largely by the Natural Gas Pipelines segment, which captured higher transport volumes and benefited from favorable pricing in the U.S. and Canadian markets. The segment’s contribution to total revenue grew to $3.90 billion, up 12% from the prior year, while the Products Pipelines and Terminals segments grew modestly, reflecting stable demand for refined products and storage services. The company’s fee‑based, long‑term contract model helped lock in revenue and mitigate price volatility.
Margin expansion was modest but meaningful. Adjusted EBITDA margin rose to 50.2% from 48.9% a year earlier, supported by disciplined cost management and the higher mix of high‑margin natural gas transport. Net income margin increased to 22.1% from 20.5%, reflecting both revenue growth and effective operating leverage. The company’s net debt to adjusted EBITDA ratio improved to 3.8x, underscoring a stronger balance sheet and positioning for future capital projects.
Kinder Morgan’s project backlog reached $10 billion, with 90% concentrated in natural gas pipelines. The company is budgeting $3 billion in growth capital expenditures for 2026 and has received credit rating upgrades to BBB+ from Fitch and BBB positive from S&P, reflecting its improved liquidity and debt profile. Management highlighted the backlog as a key driver of future growth and emphasized continued focus on high‑return projects in the natural gas corridor.
Executive Chairman Richard Kinder said the company remains “confident in the long‑term trajectory of natural gas demand, especially as Europe seeks diversified energy sources.” CEO Kimberly Dang noted that the quarter’s performance “underscores the strength of our fee‑based model and our ability to fund capital projects while delivering solid cash flow.” CFO David Michels added that the company’s cost discipline and operational efficiency “have been critical to sustaining margin expansion in a competitive market.”
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