KMI

Liberty Energy Inc. LBRT reported third-quarter 2026 adjusted earnings of 6 cents per share, missing the Zacks Consensus Estimate of 8 cents by 25%. However, the bottom line improved from the year-ago quarter's adjusted loss of 6 cents. Strong operational execution and modest pricing gains were partially offset by drilling-related delays and cost inflation. LBRT's revenues totaled $1.2 billion, beating the Zacks Consensus Estimate of $1.17 billion by approximately 1.9%. The top line increased 26.3% from $947.4 million a year ago, supported by strong fleet utilization and improved pricing. Liberty Energy Inc. price-consensus-eps-surprise-chart | Liberty Energy Inc. Quote Liberty Energy's adjusted EBITDA was $141.6 million, increasing 10.9% from $127.7 million in the year-ago quarter. However, the figure declined 6.3% sequentially from $151.1 million. Liberty Energy reported total operating costs and expenses of $1.18 billion in the third quarter, increasing 23.9% from $949.8 million in the year-ago period. Cost of services increased 29.3% year over year to $995 million, reflecting inflationary pressures on operations. General and administrative expenses rose to $69.5 million from $58.3 million a year ago. Meanwhile, depreciation, depletion and amortization expenses decreased 7.5% to $113.7 million. Operating income totaled $19.3 million, compared with an operating loss of $2.4 million in the prior-year quarter. During the reported quarter, Liberty Energy continued strengthening its completions business through improved fleet utilization, advanced technologies and modest pricing gains. However, drilling-related delays partially offset the benefits as customers worked to replenish well inventories following accelerated completion activity in the second quarter. The company achieved record natural gas substitution, with natural gas accounting for more than 60% of the total fuel consumed by its fracturing fleets. This translated into annualized fuel savings exceeding $1 billion for customers, supported by continued investments in natural gas-powered equipment and digital optimization technologies. Liberty Power Innovations entered into a strategic development agreement with a leading frontier AI laboratory and a dedicated infrastructure platform to provide 1.2 gigawatts of integrated power services for data center campuses. The agreement includes significant capacity fee prepayments and targets execution of an initial energy service agreement covering approximately 500 megawatts by December 2026. The project envisages phased energization from the fourth quarter of 2027 through the first quarter of 2029. Management indicated that the capacity fee prepayments would amount to hundreds of millions of dollars, supporting the development of large-scale power infrastructure. Liberty Energy also completed advanced grid integration testing in collaboration with the National Laboratory of the Rockies. The testing validated the company's power generation technologies and control systems under simulated real-world grid conditions, strengthening its ability to support complex data center power requirements. As of Sept. 30, 2026, Liberty Energy had approximately $119 million in cash and cash equivalents. Total debt stood at approximately $1.3 billion, primarily comprising senior convertible notes issued during the first quarter. Total liquidity, including availability under its revolving credit facility, amounted to $669 million. The company incurred net capital expenditures of $621.9 million during the reported quarter, compared with $113 million a year ago. Spending included approximately $450 million in power generation deposits and other investments in power generation, alongside digiFleet equipment, capitalized maintenance and related projects. The Zacks Rank #4 (Sell) company distributed approximately $15 million through cash dividends during the quarter. Subsequently, its board approved an 11% increase in the quarterly dividend to 10 cents per share, payable Dec. 18, 2026, to shareholders of record as of Dec. 4. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Management highlighted improving North American completion market fundamentals, supported by stronger producer economics, tightening fracturing capacity and sustained demand for next-generation equipment. Fleet attrition and industry underinvestment have constrained available capacity, creating opportunities for further pricing improvements. Looking ahead, Liberty Energy expects fourth-quarter weather-related and holiday seasonality to be partially offset by continued demand strength and activity deferred from the third quarter. Management also anticipates additional pricing opportunities heading into 2027, although labor inflation and other operating cost pressures remain challenges. In its distributed power business, the company expects accelerating artificial intelligence infrastructure development to drive demand for integrated power solutions. Management is also advancing nonrecourse project-level financing arrangements, with financing activity expected to begin in early 2027 as projects progress. While we have discussed LBRT's third-quarter results in detail, let us take a look at three other key reports in this space. Halliburton Company HAL reported third-quarter 2026 adjusted earnings of 60 cents per share, surpassing both the Zacks Consensus Estimate and the year-ago adjusted earnings of 58 cents. The improvement was supported by stronger drilling activity and international operations. Revenues of $5.7 billion rose 1.8% year over year and surpassed the Zacks Consensus Estimate by 2%. The top-line improvement was driven by Drilling and Evaluation growth, while lower North American stimulation activity remained a headwind. As of Sept. 30, 2026, the company held $1.84 billion in cash and equivalents and $7.1 billion in long-term debt. Total shareholders' equity stood at $11.16 billion. Kinder Morgan, Inc. KMI reported third-quarter 2026 adjusted earnings of 35 cents per share, beating the Zacks Consensus Estimate of 33 cents by 6.1%. Earnings increased 20.7% from 29 cents in the year-ago quarter. Revenues increased 9.3% year over year to $4.53 billion from $4.15 billion. Revenues surpassed the consensus estimate of $4.38 billion by 3.4%. Strong quarterly results benefited from higher natural gas transportation and gathering volumes, alongside improved contributions from the Terminals and CO2 businesses. As of Sept. 30, 2026, cash and cash equivalents totaled $918 million, compared with $63 million at 2025-end. Net debt stood at $32.23 billion. Valero Energy Corporation VLO reported third-quarter 2026 adjusted earnings of $23.90 per share, up 553% from $3.66 a year ago. Reported earnings were $23.89 per share compared with $3.53 in the prior-year quarter. Revenues climbed 43.3% year over year to $46.10 billion from $32.17 billion, while also surpassing the Zacks Consensus Estimate by 23.29%. The results benefited from substantially stronger refining margins and improved profitability across the Renewable Diesel and Ethanol segments. Refining throughput averaged 2.97 million barrels per day, down from 3.09 million barrels per day a year earlier. Valero ended September with $9.84 billion in cash and cash equivalents. Total debt stood at $8.58 billion, while finance lease obligations totaled $2.42 billion. The debt-to-capitalization ratio, net of cash, was 4% at the end of the third quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Liberty Energy Inc. (LBRT) : Free Stock Analysis Report Halliburton Company (HAL) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For the quarter ended September 2026, Kinder Morgan (KMI) reported revenue of $4.53 billion, up 9.3% over the same period last year. EPS came in at $0.35, compared to $0.29 in the year-ago quarter. The reported revenue represents a surprise of +3.52% over the Zacks Consensus Estimate of $4.38 billion. With the consensus EPS estimate being $0.33, the EPS surprise was +6.06%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Kinder Morgan performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: - Realized weighted average oil price: $/68.65 versus the two-analyst average estimate of $/71.4. - Realized weighted average NGL price: $/34.48 versus $/35.06 estimated by two analysts on average. - Terminals - Liquids leasable capacity: 78.70 MMBBL versus the two-analyst average estimate of 78.60 MMBBL. - NGL sales volumes - net: 9.88 millions of barrels of oil compared to the 9.8 millions of barrels of oil average estimate based on two analysts. - CO2 sales volumes - net: 0.27 Bcf/D compared to the 0.30 Bcf/D average estimate based on two analysts. - Total oil production - net: 27.07 millions of barrels of oil versus 28.2 millions of barrels of oil estimated by two analysts on average. - Terminals - Bulk transload tonnage: 13.50 MMTon versus 12.65 MMTon estimated by two analysts on average. - Segment EBDA- Natural gas Pipelines: $1.5 billion versus $1.41 billion estimated by three analysts on average. - Segment EBDA- Terminals: $385 million compared to the $284.75 million average estimate based on three analysts. - Segment EBDA- Products Pipelines: $172 million compared to the $290.54 million average estimate based on three analysts. - Segment EBDA- CO2: $172 million versus the three-analyst average estimate of $195.07 million. View all Key Company Metrics for Kinder Morgan here>>> Shares of Kinder Morgan have returned +7.9% over the past month versus the Zacks S&P 500 composite's -1.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, Oct. 21, 2026 - Executive Chairman - Rich Kinder - Chief Executive Officer - Kim Dang - President - Dax Sanders - Vice President and Chief Financial Officer - David Michels - President, Natural Gas Pipelines - Sital Mody - President, CO2 and Energy Transition Ventures - Anthony Ashley Operator: Good afternoon, and thank you for standing by. Welcome to the Kinder Morgan third quarter 2026 earnings results conference call. Your lines are in a listen-only mode until the question and answer session of today's conference. At that time, you may press star followed by the number one to ask a question. Please unmute your phones and state your name when prompted. Today's conference is being recorded. If you have any objections, you may disconnect at this time. It is now my pleasure to turn the call over to Mr. Rich Kinder, Executive Chairman of Kinder Morgan. Rich Kinder: Thank you, Michelle. Before we begin, as usual, 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. Let me begin by sharing some projections from credible third parties that once again support our belief that the demand for natural gas is destined to dramatically increase both in America and the rest of the world in the coming years and even decades. Shell projects that global LNG demand will grow to nearly 750 million tons per year by 2050, and that's an increase of 65% from 2025. That's an enormous increase and one that we believe will especially benefit the U.S., given the preference of international customers for sourcing their supply here. On the domestic front, the North American Electric Reliability Corporation is predicting that peak demand for electricity in this country will grow by between 225 and 245 gigawatts by 2035, and obviously, much of that astounding growth will be met by natural gas generation. These two estimates just reinforce and strengthen what we believe is a bullish natural gas story. Let me turn to our own story at Kinder Morgan. The third quarter was another good quarter for us, with results exceeding both the comparable period in 2025 and our budget for this year. Perhaps more importantly, we made substantial additions to our backlog of new projects. Our additions constitute one of the largest increases in any one quarter in our corporate history, and our backlog of U.S. natural gas projects now stands at an all-time record. I would add that we expect these new projects to lead to even more expansion opportunities over the coming months and years. In a broader sense, I believe the existing new projects we announced demonstrate the strength that comes from a large national midstream footprint. That footprint, which we are constantly expanding and extending, allows us to offer more diversified connectivity to our customers as they seek alternative and expanded sources of supply. To put the size and utilization of our natural gas network in perspective, I remind you that we deliver about 40% of all the natural gas in America, including approximately 40% of all LNG feed gas and over 50% of gas exports to Mexico. Our network connects almost every producing basin with the great majority of demand locations throughout the country. I am highly confident that our assets will allow us to continue to serve the multifaceted needs of our customers, and at the same time, deliver real and sustainable value to our shareholders. As I have said before, but it certainly deserves repeating, our strategy is not complicated. We have assets that generate large amounts of recurring cash flow. We are in a business that is in need of substantial additional infrastructure. Because of the size and reach of our system, we are in a unique position to capture a substantial portion of that need by developing projects supported by long-term take-or-pay agreements with credit-worthy entities. Our strong cash flow allows us to build that infrastructure by using primarily our own cash without undue leverage. We are able to earn good returns from these investments, thus increasing our EBITDA and EPS in the years ahead. For me, it is hard to think of a better strategy that combines consistent growth with minimal risk. Now let me turn it over to Kim. Kim Dang: Okay. Thanks, Rich. This was another outstanding quarter for Kinder Morgan. Adjusted EPS increased by 21%, adjusted EBITDA grew by 9%, and every one of our business segments contributed to that growth. Those results reflect both the strength of our assets and the outstanding execution of our employees. For the full year, we expect adjusted EPS growth to exceed budget by more than 13% and EBITDA to exceed budget by more than 6%. Our financial position continues to strengthen as well. We ended the quarter at approximately 3.5x debt to EBITDA, the low end of our targeted range. Combined with our roughly $3 billion of annual cash flow available to fund expansion CapEx, we have significant flexibility to fund our organic growth while maintaining a strong balance sheet. That flexibility is important because our project backlog increased from $9.6 to 14.4 billion this quarter. We added $5.4 billion in new projects and placed $700 million of projects into service. The backlog multiple remains very attractive at 5.7x. In the $5.4 billion of additions are two highly strategic joint venture projects, SNG's Southeast Connector and NGPL's Permian Link. Together, Kinder Morgan's share of these projects is approximately $4.7 billion. Both projects are supported by at least 20-year take-or-pay contracts with creditworthy shippers, providing the type of long-term stable cash flow we seek to create. Importantly, Southeast Connector is contracted with strong investment-grade utilities, while Permian Link is contracted with an A-rated hyperscaler. These projects also highlight the quality of opportunities we see in front of us. Southeast Connector is a transformational project that connects diverse supply with one of the fastest-growing natural gas demand regions in the country. Large load interconnection requests across the Southeast now exceed 200 gigawatts, which could represent roughly 8 Bcf a day of natural gas demand if it all came to fruition and if it was all served by gas-fired generation. Southeast Connector is designed to meet that need by delivering approximately 2.6 Bcf a day of natural gas into the region. In addition, we expect this project, like many of our other large projects, to drive future expansion opportunities. Permian Link captures a similar compelling opportunity by moving abundant, low-cost Permian natural gas north to meet growing power demands in the Texas Panhandle. Together, these projects demonstrate how our network is uniquely positioned to connect growing supply basins with growing demand centers. More broadly, as Rich mentioned, the long-term outlook for natural gas remains exceptionally strong. Wood Mackenzie projects North American natural gas demand to increase by approximately 46 Bcf a day by 2035, driven primarily by LNG exports and power generation demand. Projects of this size and quality do not happen by accident. The commercial creativity, customer relationships, project management and legal expertise, and the patience and perseverance required to bring these opportunities together are remarkable, and I could not be more proud of what our team has accomplished. Finally, these projects extend our visible growth runway. Before this quarter, most of our EBITDA from our backlog was expected to be online by the end of 2025. With Permian Link and Southeast Connector entering service between 2030 and 2032, we have meaningfully extended the period of high-quality cash flow growth supported by approved projects with long-term take-or-pay contracts. Simply put, we are delivering strong results today while continuing to build a longer runway for high-quality future growth. With that, I'll turn it over to Dax to give you details on our business performance. Dax Sanders: Thanks, Kim. Starting with the natural gas business unit, transport volumes were up 3% in the quarter versus the third quarter of 2025. The incremental demand was primarily a result of increased LNG feed gas deliveries on Tennessee Gas Pipeline and incremental demand on our intrastate system. Natural gas gathering volumes were up 14% in the quarter from the third quarter of 2025, with most all the increase coming from our KinderHawk system in the Haynesville, which was up 40%. As we've continued to say, demand for gas on our pipes remains high and our system remains highly utilized. While we announced the sanctioning of two very important projects today, looking forward and consistent with Kim's comments, we continue to see significant incremental project opportunities across our natural gas pipeline network, driven primarily by power and LNG, and we will continue to pursue them aggressively. In our products pipeline segment, refined product volumes were down 3% in the quarter compared to the third quarter of 2025, and crude condensate volumes were down 11%. More than half the decline in crude volumes is explained by the removal of Double H from service for the NGL conversion early in the third quarter of 2025, with the remaining decrease resulting from fewer well connects at Hiland Crude. As previously announced, we, along with our partners, were proud to reach a final investment decision on our Western Gateway project during the third quarter. The project, which will fundamentally change the way clean products are delivered to the desert Southwest and Southern California, will ensure the availability of these products to consumers for decades to come. Kinder Morgan's $300 million total cash investment, which includes our $250 million contribution to the JV and a $50 million investment in our non-contributed assets, has been added to our project backlog and is expected to reach in-service in 2029. In our terminals business segment, our liquids lease capacity remains high at almost 93%. Market conditions continue to remain supportive of strong rates, and the utilization of tanks available for use is just under 96% at our key hubs on the Houston Ship Channel and in Carteret, New Jersey. While the temporary Jones Act waiver has added some market uncertainty, our tanker fleet remains exceptionally well contracted. Assuming likely options are exercised, our fleet is 100% leased to the rest of this year, 97% leased through 2027, and 80% leased through 2028. We have opportunistically chartered a significant percentage of the fleet at higher market rates and have an average length of firm contract commitments of almost three years. The worldwide shortage in refined product supplies and the associated price dislocations have both been significant positives for our export terminals in the Houston Ship Channel Hub. In Q3, we saw 427,000 barrels a day move across our 11 docks, which represented an increase of 39% over Q3 2025 and an all-time record. The CO2 segment saw 8% higher net oil production volumes compared to Q3 2025, which was led by an 11% increase in production at SACROC. NGL volumes were 9% higher and CO2 volumes were 3% lower. Finally, RNG volumes increased 18% as the significantly improved operations that are driving both greater uptime and hydrocarbon recovery at our facilities continued in the third quarter. I'll turn it over to David. David Michels: Okay, thank you, Dax. We're declaring a quarterly dividend of $0.2975 per share, which is $1.19 per share annualized, and an increase of 2% over 2025. We delivered a record-setting quarter once again with net income attributable to KMI and adjusted EBITDA reaching record levels for the third quarter. Our third quarter performance was also ahead of internal expectations, with EPS 15% above budget and adjusted EBITDA 6% above our budget. This follows the first half of the year, during which we achieved similar outperformance. Turning to the quarterly financial performance, we had another very strong quarter. For the third quarter, we generated net income attributable to KMI of $764 million and EPS of $0.24. Those are 22% and 21% higher than the third quarter of 2025, respectively. Adjusted EPS was $0.35, so that's 21% up from last year. Adjusted EBITDA grew by 9% to $2.18 billion for the quarter. Importantly, as Kim mentioned, the strength was broad-based, with all four business segments delivering higher adjusted earnings year-over-year. Natural gas saw greater contributions from EPNG, KinderHawk, TGP, and our Texas intrastate system. This performance was driven by greater volume and rates on capacity sales, park and loan contributions, expansion project contributions, and greater gathered volumes. Our products segment benefited from favorable commodity pricing as well as greater butane blending volumes, partially offset by lower crude and refined product volumes. Our terminals segment benefited from expansion projects placed into service, higher commodity prices, stronger coal and petroleum coke handling activity, and higher Jones Act tanker rates. Our CO2 segment benefited from higher commodity prices, strong volume growth, particularly at SACROC, which was up 11% from last year. Stepping back from the quarter, our year-to-date results have been exceptionally strong. Year to date versus 2025, EBITDA has grown 13% and adjusted EPS is up 32%. As Kim mentioned, we now expect our full year adjusted EBITDA to be more than 6% above our budget and adjusted EPS to be more than 13% above our budget. That represents well more than $515 million of additional EBITDA. As we've previously noted, during 2026, we've benefited from a handful of large items that may not be recurring. Winter Storm Fern and extended cold weather in the Northeast, a terminals contract buyout, a favorable FERC rate true-up, an unusually favorable Waha to Houston Ship Channel spread. Collectively, these items contribute approximately $225 million to our outperformance in 2026. In addition, favorable commodity prices have contributed an additional $175 million versus our budget. If you recall, our budgeted WTI price was $60 per barrel. At the same time, tightness continues across our U.S. infrastructure, and that provides opportunities for us to capture additional margin when disruptions occur. We expect those conditions will persist. Moving to the balance sheet, our net debt to adjusted EBITDA ratio ended the quarter at 3.5 times, which is down from 3.8 times at the beginning of the year. Despite spending more this year due to our Monument acquisition and greater-than-budgeted CapEx, we expect to end the year at 3.6 times leverage. That's an improvement from the budget of 3.8 times, driven by the EBITDA outperformance. That puts us well below the midpoint of our leverage target range. Year to date, net debt increased $513 million, and here's a reconciliation of that. We generated $5.04 billion of cash flow from operations. We've spent $1.98 billion in dividends. We've spent $3.07 billion in capital, and that's growth sustaining and our contributions to our JVs. The Monument acquisition was approximately $500 million, and that gets you pretty close to the $513 million debt increase for the year. I'll turn it back to Kim for Q&A. Kim Dang: Okay, Michelle, if you'll come on, we'll take questions. Operator: Thank you. At this time, if you would like to ask a question, you may press star followed by the number 1. To withdraw your question, you may press star two. Please unmute your phones and state your name when prompted. Our first caller is Theresa Chen with Barclays. Your line is open. Theresa Chen: Good afternoon, and congratulations on these major commercial milestones. I want to ask first on TGP. Following a successful non-binding open season for the 219 South project, can you talk about the progress made on solidifying customership or commitments at this point? How are you thinking about the ultimate size and scope for this project, given the elevated amount of interest beyond the half a B offered, as well as the downstream growth opportunities, especially on the heels of the Southeast Connector FID? Do you think TGP will play a meaningful role in serving this incremental demand on SNG? Sital Mody: Theresa, this is Sital. How are you doing? Well, one, I am going to break this question up into a few parts. The open season that we had, the non-binding open season, in terms of interest, over 2 Bcf of interest in that open season. Where we are right now with our customers, clearly, we have been intimating to the market, and you guys that there is a demand equation here, and ultimately, will need to be solved with incremental molecules. We do feel 219, in some form, is going to help contribute to that molecule shortfall. When we think about what the project ultimately looks like, that is going to depend on who signs at the bottom line. One of the things that we are seeing right now is timing. There are some customers that are further along than others. We are managing through that to try and see how we can stage these projects. It may come in multiple forms. If I had to gauge where I see the CapEx landing there, roughly around $1.5 billion. Depending on ultimate interest, we could adjust from there. So strong interest. We do see the need. I think when you think about the downstream Southeast Connector, Tennessee is well positioned to serve that. Not only that, it is also that middle system power corridor that we have that I talked about on the last call. We see that corridor from Ohio, Kentucky, West Virginia to Tennessee, that is a growing demand center. All in all, I think the opportunity set there for incremental supply bodes well. Theresa Chen: Thank you for that detailed answer, Sital. On the Southeast Connector, the press release mentioned that the project can be scaled further with additional customer commitments. What is the realistic upside here beyond the $3.1 billion net to KMI? How much bigger can this project be? Sital Mody: Well, so a little too early. We are in the midst of the open season. I will tell you, we had significant interest in the open season, and this was a binding open season. We are still in the process of working through the precedent agreements, the interest on the commercial side, as well as very important credit, making sure we have the credit behind. We are working through those details. But needless to say, we can scale this up to 3.5, 3.5 Bcf is plausible. Theresa Chen: Thank you, Sital. Kim Dang: Teresa, just for context. We have enough signed commitments today to support going forward in FID-ing the project. There are other customers that came in during the open season that are interested, that we're working with on PAs, and they may come in later, and that would cause us to scale the project. Sital Mody: Ultimately, it depends on who signs, right? I mean, that's always the driver. Theresa Chen: Understood. Thank you. Operator: Thank you. Our next caller is Julien Dumoulin-Smith with Jefferies. Your line is open, sir. Julien Dumoulin-Smith: Hey, good afternoon, team. Nicely done. Got to hand it to you. Impressive here. Let's keep focusing on the Southeast Connector while it's topical here. Maybe just to go back to that point you were bringing up on the middle system here on the power corridor, how do you think about the size and scope of that opportunity, the timeliness here? You allude to having some open seasons pending here, but just what is the scope of contemplated there? You talk about scaling it up to 3.5 Bcf a day a moment ago in parallel, but can you elaborate maybe some other parameters and texture around there? Sital Mody: If you're focused on Southeast Connector, we've got that open season. It'll close. We'll get some clarity around that. As far as the middle system, there are several power projects that have been evaluating capacity, and this is particularly on our 219 South project. Really the timing there is what we're talking about. There are some that are further along than others. What we're going to have to do is really position ourselves to sanction parts of the project to be able to accommodate the immediate demand. The team is still creatively thinking on how we can accommodate the broader interest in terms of incremental scope. That's going to take a few quarters to kind of button up in some form or fashion. Ultimately, as usual, we'll sanction when we get customers that sign to the bottom line. Julien Dumoulin-Smith: Awesome. Excellent. A little bit bigger picture, after adding $5 billion this quarter, how is the greater than $10 billion commentary or opportunity set change? Should investors view the Southeast Connector and Permian Link as conversion from the shadow backlog into a more formal backlog? Or as you just alluded to a second ago, as continued customer activity effectively replenish that funnel? I don't want to put words in your mouth, but I'd love to hear how you kind of frame that shadow today. Kim Dang: The shadow backlog today, there is substantial remaining shadow backlog. I would say that, as we talked about in our comments, adding these big projects leads to further opportunities. We think that, and we have talked about some of them on this call, but as a result of getting these signed up, this project signed up, it will create bottlenecks in other places that we will have to alleviate that will lead to more projects. I think the industry fundamentals in natural gas, as we talked about also in our opening comments, remain very strong. We are confident that there will be meaningful additions, conversions, if you will, into the backlog over time. Julien Dumoulin-Smith: All right. Fair enough. I will leave it. Actually, just quickly, lastly, on Southeast Connector in particular, how does it fit into the broader permitting reform regime? Just quickly, if you can comment on that. Kim Dang: How does it fit into the permitting reform? Julien Dumoulin-Smith: I think. Yeah. Go for it. Kim Dang: The bill that is in Congress? Julien Dumoulin-Smith: Indeed. Kim Dang: Huh? Rich Kinder: He said yes. Kim Dang: Okay. The bill that is in Congress obviously has not passed yet. The current permitting regime, I think we are very comfortable with and had very good success working with the FERC to get MSX and South System 4 both permits from the FERC within a year, which is the fastest in recent time on permits of this size. I think that the current permitting regime, we will be able to get those projects done. No concerns there. I think the permit bill that is in Congress is a good one. I think it does some things that could help on where we have seen certain projects, not ours, run into problems. For one, it eliminates the state's ability to what I will call game the 401 water permit. It eliminates the vacatur as a remedy of the court, and it strengthens the Nationwide Permit 12 program. I think it would be great if it got passed. We think it would be very helpful, and we are very supportive of it, but we are very comfortable completing these projects under the current permit in the current permitting environment. Julien Dumoulin-Smith: Excellent. I appreciate it. Thank you, guys. Nicely done. Operator: Thank you. Our next caller is Jeremy Tonet with JPMorgan. Jeremy Tonet: Hi, good afternoon. Kim Dang: Good afternoon, Jeremy. Jeremy Tonet: I just wanted to follow up on the capital opportunity set as you have been describing here. You announced some pretty sizable projects here. Just wondering, I guess, as you think about what could be coming forward here, do you see other projects of this type of size, or were these kind of the two big ones that you had seen? How do you think about run rate CapEx at this point? Kim Dang: Okay. Let me say, it is hard to project exactly what is going to be coming in, but Sital just talked about another $1.5 billion project. We have talked about other projects that we think will come about as a result of Southeast Connector. I think the reason for the shadow backlog back in the beginning was because people did not believe in the opportunity set that we were seeing on natural gas. We were providing this number to try to help you understand the opportunity set. I think, at this point, with a $14.4 billion backlog, I hope we have established some credibility about being able to bring these things to fruition. With respect to run rate, I think it is probably going to be around $4 billion-ish for the next few years in terms of the CapEx that we would expect to spend. Jeremy Tonet: Got it. That is very helpful there. Thanks. Dave, wanted to pick up, I think, on some of the comments you laid out when looking forward to 2027, some one-time upside optimization that I would imagine is not baked into the guide for next year. It seems as far as major projects coming online, it is more Trident, but that is very late 2027, more 2028 weighted. I know it is premature to ask, but just any other thoughts as we think about 2027 when we are modeling it, the EBITDA? David Michels: Yeah. We are going to avoid giving any previewing the 2027 guide for right now. Yeah, I think it is important to note that some of those items that we experienced this year, it is unlikely that we are going to see those again next year. Winter weather is always hard to predict, but we are not going to budget a colder or more severe winter weather than we normally do. The commodity price uplift piece, that just depends on. You guys all have your own commodity price deck, so you can put that in there. We will give you the sensitivities that we will have in the budget. Kim Dang: Let me just address growth for the longer term other than 2027. As David said, we are in the middle of our budget process. We will get through that. No concerns here about our ability to grow long term over the next 3 to 5 years. As you can see, we have $14.4 billion in projects that will bring in quite a bit of cash flow. But it is true that because those projects do not come on evenly over all the years, the growth is not going to be even every single year. An example of that is Trident, only 30% of the contracted EBITDA comes on in 2027. 2026, because it has some of these items, is going to be a difficult year to replicate, but the underlying business here, all of our underlying businesses here remain very strong. The projects are going to deliver enormous benefits as they come online. Jeremy Tonet: Got it. Thank you. I will leave it there. Operator: Thank you. Our next caller is Praneeth Satish with Wells Fargo. Your line is open, sir. Praneeth Satish: Thanks. Good afternoon, and congrats on an incredible quarter here with project FIDs. Maybe just going back to TGP 219 South. I guess we were a little bit surprised with the $1.5 billion CapEx estimate. Seems lower than we would have thought. Does that $1.5 billion get you all the way to a 2 Bcf per day project, or is that based on the 500 MMcf per day open season that you went out with? I guess, where does this project transition from brownfield to greenfield? Sital Mody: Well, look, it ultimately depends on the shipper receipt deliveries, right? I can tell you, if we scale to a 2 Bcf to 3 Bcf number, it would be higher than the $1.5 billion. We're really focused on, at this point, just the brownfield component, and then ultimately we'll adjust accordingly with incremental volume adds. That's the way I would think about that. Praneeth Satish: Okay, that makes sense. Then maybe switching to the Permian here. So Permian Link adding another 2.8 Bcf per day of takeaway. I guess, how do you think about the risk of overbuilding in the Permian? I know that you're protected on this project because of the take-or-pay contracts, but I guess I'm thinking more about some of the other pipes, some of your older pipes like Gulf Coast Express, and when those come off contract. Do you see any risk there on the recontracting side, or do you think we're all too conservative with our Permian supply growth estimates here on the gas side, and there's going to be enough gas to fill all these pipes? Sital Mody: Here's how I think about those pipes. Our intrastate system, I talked about this on the last call, Permian Highway and GCX, they're in the heart of the demand centers that are coming in and further developing. Our focus has shifted to really focus on these demand pulls. What we see there, especially across our PHP pipeline system, is we see a power demand center corridor forming. To the extent that there's any push pull back by any of the producers that are underpinning the project, we see demand pull. The same thing is out there in our Gulf Coast systems. Both of these pipes were some of the first pipes built, so from a cost perspective, relatively low on the cost spectrum. What we see there is GCX. There's so much incremental LNG demand that is yet to come. I think we feel pretty good about that. Overall, our focus has been on market pull. We see those underpinned by long-term contracts. From a portfolio perspective, we feel pretty good. Kim Dang: Yeah. Sital's point, we've got like 6,000 miles of intrastate pipe and 145 Bcf of storage, and those pipes tie into that, are part of that system, and tie into a lot of demand. We feel good from a demand pull standpoint that those pipes will continue to have opportunities. Praneeth Satish: Understood. Thank you. Operator: Thank you. Our next caller is Manav Gupta with UBS. Manav Gupta: Good afternoon. Just for the record, we always viewed your claims of $10 billion shadow backlog very credibly, and you did say that the two projects add further credibility. Even if they would not have been announced, we would have been very confident that your backlog would end well over $10 billion before year-end. Just wanted to put that out there. Quick question. I wanted to go a little to Trident. There's a lot of gas getting on the Gulf Coast, and you have the ability to eventually move it around. Can you give us an update on what the phase 1 and phase 2 of Trident is looking like and how you'll be able to help other industrial companies and LNG producers by being able to move the gas around Gulf Coast? Kim Dang: Okay. Let me talk. Trident is on time and on budget and should be delivered in February of next year. Sital, you want to talk about the market? Sital Mody: Yeah. Look, we've talked about this when we sanctioned the project. Trident, we saw a need. There's an industrial corridor developing around Trident, both from a power perspective and then on the industrial side. Beyond that, we ultimately pulled. You get down to the LNG corridor, and we saw the need to go from there further west to the Gulf Coast corridor, and we see incremental demand. That coupled with our Texas header, our KMLP header, and the KMLP expansions that we've got, we've got an ability to serve the Texas, Louisiana Gulf Coast, and we see significant demand developing there as well. As Rich alluded to earlier, when you get these stems inside and you get ancillary, secondary, and tertiary expansions off of those stems. We feel pretty good about that, and we think we can help on the demand side as this demand develops. Manav Gupta: Perfect. My quick follow was a little bit just focused on the Florida gas market. It is a steadily growing gas market. If you could comment on it and obviously talk a little bit about your next phase of expansion at FGT, how that is progressing. Thank you. Sital Mody: Well, I will talk broadly. As you know, we are not the operator of FGT. We will let Energy Transfer talk about the details. But I will tell you this. We have been talking about this thematically in the Southeast. We see strong demand in Florida, we do. FGT sanctioned a few projects already. We are obviously in discussions with other customers on future potential expansions. We see the demand profile as being strong. I will just leave it at that. As you know, we are not the operator there. We work with the operator, but we feel pretty good about the asset as well. It is not just SGT, but we have SNG, who also can help serve some of that growing market. Manav Gupta: Thank you so much. Operator: Thank you. Our next caller is Jean Ann Salisbury with Bank of America. Jean Ann Salisbury: Hi. Congrats on the great quarter. Can you speak to whether the anchor hyperscaler of Permian Link is planning to be online prior to when Permian Link starts, and you'll kind of replace it as the gas source? Or if you're planning to ramp together, and so your timing is basically linked to their timing? Sital Mody: Well, without getting into the customer details, I'll tell you, we are trying to accommodate multiple customers on this project. We've got an anchor hyperscaler, but we had significant interest. We're also talking to those other customers. I think the anchor tenant obviously is driving the need for speed. I think one of the benefits that Permian Link brings to the power market as we've talked about before is the link to storage and the flexibility and reliability that helps these hyperscalers achieve their seven nines of reliability. I think that's a real differentiator here. As the next phase, we look at all of our storage facilities to see where we could kind of enhance service and flexibility, and that's what I think differentiates this. Jean Ann Salisbury: That makes sense. Thanks. Then building on Theresa's earlier question, do you anticipate all the gas that's feeding Southeast Connector to, like, will it substantially all originate from Appalachia? If that's the case, would you potentially require even more expansion than just TGP can provide? Sital Mody: Well, so look, one of the beauties of kind of the locations we've picked is we've got access to multiple pipeline corridors, right? Tennessee. Selfishly, we want to grow Tennessee, but we have interconnects with Columbia Gas. We've got interconnects with TETCO. We've got interconnects planned with several other major interstates there. Ultimately, those pipes also have forward haul, back haul capabilities. So when you think about where the supply could come from, we've always said we need incremental molecules to move, not just gas on gas competition. So you basically could get a molecule from the Gulf Coast to that point via all of these major trunk pipes including Tennessee, and then also from the Appalachia, Marcellus, Southwest Utica, down to that point. So it's multiple basins that can kind of serve that takeoff point. That's the beauty of it. Jean Ann Salisbury: That's helpful. Thank you. Operator: Thank you. Our next caller is Brandon Bingham with Scotiabank. Your line is open, sir. Brandon Bingham: Hey, thanks for taking the questions. I wanted to maybe kind of go back to the U.S. Gulf Coast LNG dynamics, and in particular as it relates to Permian and Haynesville as the supply source. Obviously, some puts and takes with both. Just with the rate of change in Permian gas here and maybe not the most favorable price signals for broader Haynesville development, just how do you see those two basins playing out in the fight for U.S. Gulf Coast capacity, and who could be the primary driver there? Sital Mody: Well, we've said all along that we believe it's going to be all of the above. We see the demand profile that Rich started off with. It's significant. That's significant growth, and it's going to take more than those basins to satisfy that growth. We think there's plenty of resource. The key is going to be building that infrastructure in the middle, which we're really focused on. Then ultimately, the price will take care of itself. Kim Dang: Yeah. If you look at Wood Mac numbers, and I think they're pretty similar to our internal numbers. They've got Haynesville growing by 13 Bcf, Permian growing by a little over 10, and Marcellus growing by 13. So those are the three big producing basins that are helping to get that 46 Bcf of growth that we referenced between now and 2035. We need them all. Brandon Bingham: Okay, great. Kim Dang: Yes. Brandon Bingham: No, it's, yeah, absolutely fair. Then just maybe quickly kind of going back to those Wood Mac numbers or just anybody who's kind of put together the longer-dated total gas demand picture, would be kind of curious to hear your commentary and perspective just around like a capture rate to Kinder Morgan of all of that. Looking at the SNG, the comments that you've made and just the projects you have going on in the South. Kim Dang: We move about 40%. Brandon Bingham: Okay. Kim Dang: There's no science behind this other than we move about 40% of the gas in the U.S. market. We move about 50% of the gas to Mexico, 40% going to LNG, and 45% of the power demand across the South. I think that's as good a number as any. Brandon Bingham: Great. Thank you. Operator: Thank you. Our next caller is Keith Stanley with Wolfe Research. Your line is open, sir. Keith Stanley: Hi. Good afternoon. First, wanted to clarify the SEC project you are sanctioning today, does that include the SEC extension line up to the Nashville area? If you could comment at all on the phasing for both SEC and Permian Link. They start up in the fourth quarter of 2030. When would you get to the targeted build multiple by? Kim Dang: Okay. Yes, SEC does include the Greenfield line. On Permian Link, it comes online in 2030, and on SEC, it comes on 2030, 2031, and 2032. It comes on over 3 years. Keith Stanley: Got it. Thank you for that. Second one on Western Gateway. You are investing $250 million and contributing SFPP for your interest, and PSX, I think, is constructing most of it. How does risk sharing work in that JV for the investment in the event there were cost overruns or delays during construction? Would you have to fund your share of that, or is there a separate mechanism given how you are contributing to the JV? Kim Dang: Let me say a couple of things on that. One is, I think we are being very prudent about how we are approaching this project in terms of spending capital until we get more comfort around the ability and make sure we are very confident that we can get built through the states that this has to go through. Secondly, what I will say, and I am not going to go into a lot of detail about it, but we do have certain cost protections against cost overruns on that project. Keith Stanley: That's helpful. Thank you. Operator: Thank you. Our next caller is John Mackay with Goldman Sachs. Your line is open, sir. John Mackay: Hey, team, thanks for the time. I wanted to pick up on kind of the general tone of this, and Kim, you answered it a little bit, and certainly the backlog increase is a bit of an answer. But there has been at least a perceived kind of slowdown in kind of broader contracting activity, some volatility in the markets. I'd love just to hear from you guys, has the tone with customers changed all that much over the last couple of months compared to, let's say, earlier this year? Kim Dang: No. John, we haven't seen a change. I think our customers continue to engage, and we continue to look for our opportunities. I think they see this as we become an increasingly globally connected market. I think there's been more focus on how to handle some of the volatility through our storage assets, and so we've just seen the dialogue continue. It's been good. John Mackay: No, that is great. When we look at the implied returns on these new projects being sub 6 times, or if you look at something like the billions CapEx per Bcf of capacity numbers going up over time, could you just touch a little bit about customer willingness to take some of these higher implied rates, and what that means maybe from looking at a producer side versus the demand side customer? Thank you. Kim Dang: Okay. A couple of things. One, I think what you are referencing is the cost per pipeline mile or whatever has gone up, and that is going to be a function of a couple of things. One, steel prices, slash pipe prices have increased, compression costs have increased. That is what you are seeing in the cost numbers. We have not seen customer pushback. We did not change our return thresholds, right? We are still targeting the same return thresholds. We have not increased those or decreased those, and again, they will vary with risk and return. But we have not seen a lot of customer pushback as a result of the increase in the materials cost that we have seen. John Mackay: Just any comments on customer mix in terms of producer willingness to engage versus the demand side? Thanks. Kim Dang: Well, generally, all the projects we are sanctioning today are demand pull, and that is our preference when we do these projects because I think that demand can be. Basins can come and go to some extent. Now, some of them have been there for a long time, but the demand pull, it is there for decades. We feel very good about the customers on these projects. John Mackay: Appreciate the time. Thank you. Operator: Thank you. Our next caller is Spiro Dounis with Citi. Your line is open, sir. Spiro Dounis: Thanks, operator. Afternoon, team. I want to start first with project timing. You talked about adding cash flow after that 2032 timeframe, but it sounds like you're still filling in some growth for 2029 and 2030. Kim, you also mentioned a $4 billion spending cadence from here, and on my math, TGP 219 South should pretty much get you to that level once it's FID'd. I wanted to understand how you're thinking about, I guess, what's needed to fill out more growth in 2029 and 2030, or if we should expect most of the major project announcements from here, beyond TGP, of course, maybe to be more weighted or added to 2030 plus timeframe. Kim Dang: Well, 2029 and 2030, South System 4 is coming online Q4 of 2028 and Q4 of 2029. That'll drive growth in 2029 and 2030. Then I think MSX, the second phase is mid-year 2028, so that'll drive additional growth in 2029. Then these projects, you'll get fourth quarter, probably, roughly you'll get the Permian link in. As I said, it's not going to be exactly the same growth rate every year. It'll vary year in and year out. With this backlog and a 5.7 times multiple, that's $2.5 billion of cash flow that will be coming our way as soon as we get these things built, because these are, again, backed by take-or-pay contracts with either credit-worthy entities or that have significant collateral posted. Spiro Dounis: Got it. Second question, talk about Trident, but want to go to the other side of the Permian and go to Arizona. Hearing more on the utility side about maybe the potential need for another pipeline, just given some utility plans in Arizona, West Valley, and some data center development there. You, of course, had Copper State Connector at one point. Just curious about maybe the prospects you see to make another move into Arizona. Kim Dang: Well, look, on the western side, we do see opportunities. We have both of our legs, pipeline both to Arizona and Mexico. I would characterize it as we do see significant power demand there. We also see traditional conversion, coal plant conversion as opportunities on the western side. But it's too early to comment on where and how those get to compete. We do have discussions ongoing out west as well. Spiro Dounis: Great. I'll leave it there. Thanks, everyone. Operator: Thank you. Our next caller is Gabe Moreen with Mizuho. Your line is open, sir. Gabe Moreen: Hey, good afternoon, everyone. I am not sure if it is allowed, but I would like to ask some questions on your non-natural gas businesses. Kim Dang: Yes. Gabe Moreen: Right. Kim Dang: Our analysts are here. Gabe Moreen: Right. Kim Dang: They love to answer your questions. Gabe Moreen: Okay. Thank you, Kim. One I was going to ask, just with the forward curve on crude oil has moved up nicely here in 2027 and beyond, whether that puts some CO2 expansions back into play, potentially. Also, I think there may be some inorganic opportunities out there on RNG. I am just curious your thoughts on potentially expanding that business as well. Speaker 17: Company Representative: Yeah. Gabe, thank you for tossing me a bone. Gabe Moreen: No problem. Speaker 17: Company Representative: Yeah, no. As you know, EOR projects take some time to develop, right? The forward curve has come up, but it is still pretty backwardated. I would say yes, we are looking at all of the projects that we can do, and our ability to accelerate, but it is really no different in terms of how we view investment in that business over time. Speaker 17: Company Representative: It is going to be looking at that curve, and we will be sensitizing that curve as well for lower oil prices in case those arise as well. Obviously, the oil prices, there is a lot of geopolitical risk associated with that. There is some concern to extent the war ends, where crude prices end up. But as I said, we are pretty careful in terms of how we look at our EOR investments. Speaker 17: Company Representative: We demand higher returns than we do on fee-based businesses, to take account of that risk. On RNG, I do not think we can really talk about ongoing third-party processes. We are aware of those out there, and we will continue to look at whether it makes sense to grow that businesses. We have had some operational issues in that business. I think we will be careful to extent that we want to step in into a bigger share there, and it will have to come with a higher return as well. Kim Dang: Yeah. The other thing I'd say on the RNG business, we did have some struggles, but we do have a team that has learned and who knows how to operate these at this point. I think we've developed some expertise there. We also have a lot of lessons learned that we would take into account if anything we'd look at. Then, to Anthony's point on the CO2 stuff, when we look at those are long-term projects. We tend to run some kind of fixed oil price to make sure that we get to our return. We don't just jump into projects because the current year goes to $85. Gabe Moreen: Thanks, Anthony. Thanks, Kim. If I could just squeeze one more on the back end, I'm just curious, on a Double H end, how Hiland update, it seems like there's some shifts going on there in the G&P landscape in the back end, just wondering if that makes you more or less inclined to invest more capital up there. Speaker 17: Company Representative: Look, we've invested significant capital up there. I think we're pretty well positioned for what we see coming. We can always adjust if we see the macro environment change a little bit. I think where I would take it is we're sitting in a good spot. We've got the infrastructure we need to accommodate any growth that might. Gabe Moreen: Great. Thanks, everyone. Operator: Thank you. Our next caller is Zack Van Everen with TPH Research. Your line is open, sir. Zack Van Everen: Hi all. Thanks for taking my question. Maybe back on gas supply, whether it's Waha, the Gulf Coast, or the Southeast, it definitely feels like there's a fight for gas. As a part of any of these projects, have you helped customers or was it contingent on them also signing supply agreements with producers just to make sure they could fill their FT? Sital Mody: The answer to your latter question is no. We don't do anything contingent, but look, we explain the macro environment. They have to make their own judgments on this. I think there's plenty of resource. It's a price function. There's a dry gas window, there's an associated gas window, and then there's other basins in and around that can help meet the demand. Once again, it's a function of Supply and demand, and there's other basins that can feed through our networks and ultimately get in to serve the pipelines that we have from different areas. For example, the Eagle Ford can go the other direction as well. That's how I would leave it. I think it's broad enough. I think folks understand that they need to secure a molecule. I think we make sure that's clear, and the rest is up to them. Zack Van Everen: Got it. That makes sense. Maybe a quick clarifying note. When you mention the 200 gigawatts in the Southeast equating to about 8 Bcf a day, is that a risk number? Because that feels a little lower than the general 150 MMCF a day per gigawatt that most people use. Sital Mody: Yeah. To keep my mind simple. We just divide by 5. I say inefficient plants. How's that? Inefficient plants. Kim Dang: Right. Inefficient plants, yeah. Look, Zack Van Everen: Okay that probably likely will all happen, right? That is all the connection requests, assuming they all go, and that is all natural gas. It will be some combination. The point is, there is a huge amount of demand growth in the Southeast, and that is part of what Southeast Connector is addressing. Got it. Appreciate the time. Thanks all. Operator: Thank you. Our next caller is Jason Gabelman with TD Cowen. Your line is open, sir. Jason Gabelman: Yeah. Hey, thanks for taking my question. I wanted to ask about Permian Link and your targeted IRRs. You talk about, I think, mid-teen after-tax IRRs. I wonder, given this project with only one anchor shipper has some perception of higher risk, did that require you to construct the project for a higher IRR, or you feel like the risk profile of this project is similar to your existing business? Kim Dang: Look, we approach this project the same way we approach all of our other projects. What I'll say is this, which is we can move up and down on the risk-return threshold or value proposition. Meaning that if a customer is willing to share in some of the cost, then we can move down the return threshold a little bit. If the customer's not willing to share in cost overrun, we need a higher return. We have some flexibility in how we approach that. As we negotiate, our customers at times have a preference between, "Hey, I don't want to cost share. I want you to take the cost risk," and that's one rate, and we put them one rate. If they're willing to share in the cost risk, there's another rate. The other thing I'd say is Permian Link, it has the ability to upsize by adding compression. We can add more shippers to this over time. That will lead to even higher returns. Sital Mody: Yeah, it's important. When we talk about the scope of this project, we have capabilities to serve incremental. We're talking to incremental customers to basically fill the rest of the basket, if you will. Jason Gabelman: Got it. Thanks for that. My other question is a bit separate. As you pursue connectivity to move more gas from the Marcellus, I'm wondering if there's anything to be gained to move further upstream into Marcellus G&P. Would you get anything? Is there any commercial value for controlling more of the gas upstream from your pipes or not really at this point? Sital Mody: Look, we have some pretty good customers of our own that are very sophisticated in doing that. I think we stick to what we do best, which is build large-scale infrastructure. Very similar to the power story. We're not focused on power. We're focused on building pipeline infrastructure. I think we would collaborate with our customers to do that, and I think that's probably the best course for us. Kim Dang: Yeah. I think there's very established mature players in that. Sital Mody: Yeah. Typically they're going to have an incumbent advantage. Jason Gabelman: Great. Thanks for the time. Operator: Thank you. Our next caller is Harry Mateer with Barclays. Your line is open, sir. Harry Mateer: Hi. Thanks. Good afternoon. Both Southeast Connector and Permian Link are being developed at JVs. I'm curious how you plan to balance contributing capital into those JVs from KMI, at least initially, versus using what I think appears to be pretty decent balance sheet capacity at both those JVs during the construction phase. Kim Dang: Yeah. I think it's going to be a combination of the JV funding a portion of it and us contributing in capital. I think those JVs have nice cash flows that can go to fund a portion of the CapEx. We can take on incremental debt at those JVs. If we do that, though, our plan is to do it in such a way to maintain the existing ratings at those JV pipes. There will be some capital required above that, in which case we will make equity contributions from owners. We also have the flexibility given where our balance sheet is and our cash flow, that if we wanted to or needed to, we can fund that 100%. We could fund that CapEx 100% from KMI. Harry Mateer: Got it. All right. Thank you. Operator: Thank you. Mr. Kinder, at this time, we are showing no further questions, sir. Rich Kinder: Okay. Well, let me just conclude with two remarks. Again, I want to say, and Kim mentioned this number, that if you look at the returns expected on this $14.4 billion of backlog, that's $2.5 billion of additional EBITDA. If you look at that in terms of where we are presently, that pushes us between $11.5 billion, $12 billion of EBITDA. The other thing I would mention is last call, there was some, let me call it skepticism about whether we could really bring these projects along. I think I made the remark, "Well, we have to get the horses in the corral." I just want to say we've got a hell of a lot of those horses in the corral now with the saddles on, but we've got more horses just outside the corral, and I think you're going to see them. Kim Dang: They want to come in. Rich Kinder: They want to come in. That will be the message for the future. Thank you all for your good questions. We appreciate it. It has been a great quarter, and we hope to bring you more good news in the future. Thank you. Operator: Thank you. This concludes today's conference call. You may disconnect at this time, and have a great rest of your day. Before you buy stock in Kinder Morgan, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kinder Morgan wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $370,440!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,330,110!* Now, it's worth noting Stock Advisor's total average return is 924% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 21, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Kinder Morgan. The Motley Fool has a disclosure policy. Kinder Morgan (KMI) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Kinder Morgan, Inc. KMI reported third-quarter 2026 adjusted earnings of 35 cents per share, beating the Zacks Consensus Estimate of 33 cents by 6.1%. Earnings increased 20.7% from 29 cents in the year-ago quarter. Revenues increased 9.3% year over year to $4.53 billion from $4.15 billion. Revenues surpassed the consensus estimate of $4.38 billion by 3.4%. Strong quarterly results benefited from higher natural gas transportation and gathering volumes, alongside improved contributions from the Terminals and CO2 businesses. Natural gas transport volumes rose 3%, while gathering volumes increased 14%. Kinder Morgan, Inc. price-consensus-eps-surprise-chart | Kinder Morgan, Inc. Quote Natural Gas Pipelines adjusted segment earnings before depreciation, depletion and amortization (EBDA) increased to $1.49 billion from $1.40 billion a year earlier. Higher contributions from the El Paso Natural Gas Pipeline, KinderHawk gathering system, Tennessee Gas Pipeline and Texas Intrastate system supported the improvement. Transportation volumes averaged 49,273 billion British thermal units per day (BBtu/d), compared with 47,918 BBtu/d in the prior-year quarter. Growth primarily reflected higher liquefied natural gas deliveries on the Tennessee Gas Pipeline and increased demand for services on the Texas Intrastate system. Gathering volumes advanced to 4,722 BBtu/d from 4,129 BBtu/d, primarily supported by stronger activity on the KinderHawk system. Products Pipelines adjusted segment EBDA increased to $313 million from $288 million. Favorable commodity pricing supported performance, although legal, environmental and other expense accruals weighed on reported segment results. Total refined products volumes declined 3% to approximately 1.60 million barrels per day from 1.65 million barrels per day, reflecting a higher commodity price environment. Crude and condensate volumes decreased 11% to 410,000 barrels per day, primarily due to lower Bakken gathering volumes and the conversion of the Double H pipeline to natural gas liquids service. Terminals adjusted segment EBDA increased to $314 million from $274 million. Higher liquids contributions from expansion projects, stronger coal and petroleum coke handling activities and improved Jones Act tanker rates supported results. Liquids utilization declined to 92.6% from 94.6%. CO2 adjusted segment EBDA rose to $184 million from $136 million. Total net oil production increased to 27,070 barrels per day from 25,040 barrels per day. The realized weighted average oil price increased to $68.65 per barrel from $67.74, while the realized NGL price rose to $34.48 from $31.09. Total operating costs, expenses and other increased 9.3% year over year to $3.37 billion. Costs of sales rose to $1.57 billion from $1.40 billion, while operations and maintenance expenses increased to $949 million from $786 million. Operating income increased 9.1% to $1.16 billion. The operating margin remained relatively stable at 25.6%, reflecting comparable growth in revenues and operating expenses. Adjusted EBITDA reached a third-quarter record of $2.18 billion, up 9% year over year. Net income attributable to KMI increased 22% to $764 million, while reported earnings rose to 34 cents per share from 28 cents. The expansion project backlog reached $14.4 billion at quarter-end, increasing $4.7 billion sequentially. The company added $5.4 billion in projects, partially offset by $700 million of projects placed into service. Natural gas projects accounted for $13.2 billion of the backlog. Major additions included the Southeast Connector and Permian Link projects, designed to transport approximately 2.6 billion and 2.8 billion cubic feet per day of natural gas, respectively. More than 75% of the total backlog supports power generation and local distribution demand, highlighting growing infrastructure requirements. Cash flow from operations increased to $1.59 billion from $1.41 billion in the year-ago quarter. Free cash flow declined to $545 million from $621 million, while free cash flow after dividends was negative $120 million. As of Sept. 30, 2026, cash and cash equivalents totaled $918 million, compared with $63 million at 2025-end. Net debt stood at $32.23 billion. The net debt-to-adjusted EBITDA ratio improved to 3.5 from 3.8 at the end of 2025. Kinder Morgan expects full-year adjusted EBITDA to exceed its original $8.6 billion budget by more than 6%. Adjusted earnings are projected to surpass the initial $1.36-per-share budget by more than 13%. The company also expects its year-end net debt-to-adjusted EBITDA ratio to reach 3.6, compared with the original budget of 3.8. The board declared a quarterly dividend of 29.75 cents per share, up 2% year over year. The dividend is payable Nov. 16, 2026, to shareholders of record as of Nov. 2, 2026. Kinder Morgan currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks from the energy sector that are yet to release their third-quarter 2026 earnings are Baker Hughes Company BKR, ConocoPhillips COP) and Equinor ASA EQNR. BKR, COP, EQNR currently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today's Zacks #1 Rank stocks here. Baker Hughes is scheduled to release third-quarter 2026 earnings on Oct. 27. The Zacks Consensus Estimate for BKR's earnings is pegged at 64 cents per share, suggesting a 5.9% decline from the prior-year reported figure. ConocoPhillips is scheduled to release third-quarter 2026 earnings on Nov. 5. The Zacks Consensus Estimate for COP's earnings is pegged at $2.86 per share, suggesting a 77.6% improvement from the prior-year reported figure. Equinor is scheduled to release third-quarter 2026 earnings on Oct. 28. The Zacks Consensus Estimate for EQNR's earnings is pegged at $1.38 per share, suggesting a 273% improvement from the prior-year reported figure. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report ConocoPhillips (COP) : Free Stock Analysis Report Baker Hughes Company (BKR) : Free Stock Analysis Report Equinor ASA (EQNR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. - Net Income Attributable to KMI: $764 million, up 22% year-over-year. - EPS: $0.34, up 21% year-over-year. - Adjusted EPS: $0.35, up 21% year-over-year; 15% above budget. - Adjusted EBITDA: $2.18 billion, up 9% year-over-year; 6% above budget. - Year-to-Date EBITDA Growth: Up 13% versus 2025. - Year-to-Date Adjusted EPS Growth: Up 32% versus 2025. - Full-Year Guidance: Adjusted EBITDA expected more than 6% above budget (over $515 million additional EBITDA); adjusted EPS more than 13% above budget. - Dividend: Quarterly dividend of $29.75 per share ($1.19 annualized), up 2% over 2025. - Net Debt to Adjusted EBITDA: 3.5 times at quarter end, down from 3.8 times at start of year; full-year expectation of 3.6 times. - Cash Flow from Operations: $5.04 billion year-to-date. - Capital Spending: $3.07 billion year-to-date (growth, sustaining, and JV contributions). - Dividends Paid: $1.98 billion year-to-date. - Net Debt Increase: $513 million year-to-date. - Project Backlog: Increased from $9.6 billion to $14.4 billion; $5.4 billion in new projects added; $700 million placed into service; backlog multiple of 5.7 times. - Natural Gas Transport Volumes: Up 3% year-over-year. - Natural Gas Gathering Volumes: Up 14% year-over-year; KinderHawk (Haynesville) up 40%. - Refined Product Volumes: Down 3% year-over-year. - Crude Condensate Volumes: Down 11% year-over-year. - Terminals Liquids Lease Capacity: Almost 93%; utilization just under 96% at key Houston Ship Channel and Carteret hubs. - Export Terminal Docks: 427,000 barrels per day across 11 docks, up 39% year-over-year and an all-time record. - CO2 Segment: Net oil production volumes up 8% (SACROC up 11%); NGL volumes up 9%; CO2 volumes down 3%; RNG volumes up 18%. - Warning! GuruFocus has detected 9 Warning Signs with KMI. - Is KMI fairly valued? Test your thesis with our free DCF calculator. Release Date: October 21, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Adjusted EPS increased 21% and adjusted EBITDA grew 9% year-over-year, with all four business segments contributing to growth. - Project backlog surged to a record $14.4 billion, adding $5.4 billion in new projects, including two major joint ventures with long-term take-or-pay contracts. - Strong balance sheet with debt-to-EBITDA at 3.5x, the low end of the target range, and approximately $3 billion of annual cash flow available for expansion CapEx. - Natural gas gathering volumes rose 14%, led by a 40% increase on the KinderHawk system in the Haynesville, and transport volumes increased 3%. - Terminals segment performed well with liquids lease capacity at 93% and export docks handling a record 427,000 barrels per day, up 39% year-over-year. - Refined product volumes declined 3% and crude condensate volumes fell 11% in the quarter compared to the prior year. - CO2 volumes decreased 3% year-over-year, partially offsetting production gains. - Full-year 2026 results benefited from approximately $225 million of non-recurring items, such as winter storm Fern and a terminals contract buyout, which are unlikely to repeat. - Growth is expected to be uneven, with 2026 difficult to replicate and major projects like Trident contributing only 30% of contracted EBITDA in 2027. - The temporary Jones Act waiver has introduced market uncertainty for the tanker fleet, though contracts remain well secured. Q: After adding $5.4 billion in new projects this quarter, how should investors view the remaining shadow backlog, and what is the expected run-rate CapEx going forward? A: CEO Kimberly Dang stated that a substantial shadow backlog remains and that sanctioning large projects like Southeast Connector and Permian Link will create bottlenecks elsewhere, leading to further expansion opportunities. She guided to a run-rate CapEx of roughly $4 billion per year over the next few years. Q: Can you provide an update on the TGP 219 South project, including the level of customer interest, expected project size, and CapEx? A: Sital Mody, President of Natural Gas Pipelines, noted the non-binding open season drew over 2 Bcf of interest. He estimates CapEx for the brownfield component at roughly $1.5 billion, but noted the final size and cost will depend on ultimate customer commitments, with potential to scale to 2-3 Bcf. Q: Regarding the Southeast Connector, what is the realistic upside beyond the initial $3.1 billion net to KMI, and how does it fit with the broader power demand opportunity? A: Sital Mody explained that while the project is initially sized at 2.6 Bcf/d, it can plausibly be scaled up to 3.5 Bcf/d depending on additional customer sign-ups from the binding open season. CEO Kimberly Dang added that they have enough commitments to proceed with FID but are working with other interested parties to potentially expand the project. Q: With the Permian Link project anchored by a single hyperscaler, did that risk profile require a higher targeted IRR? A: CEO Kimberly Dang stated that KMI approaches all projects with a flexible risk-return framework. The return threshold can be adjusted based on whether the customer is willing to share in cost overruns. She also noted the project has the ability to be upsized with additional compression, which would lead to higher returns as more shippers are added. Q: How do you view the risk of overbuilding pipeline capacity in the Permian, particularly for older pipes like Gulf Coast Express when they come off contract? A: Sital Mody, President of Natural Gas Pipelines, expressed confidence, noting that KMI's intrastate pipes like Permian Highway and GCX are well-positioned in the heart of growing demand centers. He emphasized a focus on "demand pull" from power and LNG, which underpins long-term contracts and mitigates recontracting risk. Q: Can you comment on the phasing for the Southeast Connector and Permian Link projects and when they will reach their targeted build multiple? A: CEO Kimberly Dang clarified that the Southeast Connector will be phased in over three years, starting in 2030 and completing in 2032. The Permian Link is expected to come online in the fourth quarter of 2030. Q: Given the significant project announcements, what are your thoughts on the growth outlook for 2027 and beyond, especially considering some of the one-time items that benefited 2026? A: CFO David Michels declined to preview the 2027 guidance but noted that items like favorable winter weather and commodity price uplift from 2026 are unlikely to recur. CEO Kimberly Dang added that while growth may not be even every year (e.g., only 30% of Trident's EBITDA comes on in 2027), the long-term outlook over the next three to five years remains strong, supported by the $14.4 billion backlog. Q: How does the Southeast Connector project fit into the broader permitting reform regime currently being discussed in Congress? A: CEO Kimberly Dang stated that KMI is comfortable with the current permitting regime, having recently secured FERC permits for other large projects within a year. She expressed support for the proposed permitting bill, which could help by eliminating states' ability to "game" the 401-water permit process, but noted the company is confident it can complete the projects under existing rules. Q: Can you provide an update on the Trident project and its role in serving the growing industrial and LNG demand along the Gulf Coast? A: CEO Kimberly Dang confirmed that Trident is on time and on budget, with delivery expected in February 2027. Sital Mody added that the project will serve a developing industrial corridor and, through connections to other KMI systems, will help move gas to the LNG corridor and other demand centers along the Texas and Louisiana Gulf Coast. Q: With the forward curve for crude oil moving up, does that put any CO2 expansion projects back into play? A: A company representative explained that while the forward curve has improved, it remains backwardated. KMI is carefully evaluating EOR projects and requires higher returns for these investments to account for oil price volatility and geopolitical risk, rather than just reacting to short-term price movements. Q: How do you plan to balance funding the JV projects like Southeast Connector and Permian Link between KMI and the JVs themselves? A: CEO Kimberly Dang stated that funding will be a combination of capital contributions from KMI and debt at the JV level. The plan is to use the JVs' cash flows and incremental debt capacity while maintaining their existing ratings. However, she noted that KMI has the financial flexibility to fund 100% of the CapEx if needed. Q: Has the tone of conversations with customers changed over the last few months, given some perceived market volatility? A: Sital Mody, President of Natural Gas Pipelines, stated that the tone has not changed and customer engagement remains strong. He noted that as the market becomes more globally connected, customers are increasingly focused on using storage assets to manage volatility, which has kept the dialogue constructive. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Performance outperformance was driven by broad-based segment growth, favorable commodity prices, and high utilization across the natural gas network, which delivers approximately 40% of U.S. natural gas. - The project backlog reached an all-time record of $14.4 billion, fueled by $5.4 billion in new additions this quarter, representing one of the largest quarterly increases in corporate history. - Management attributes the successful project sanctioning to a large national footprint that provides unique connectivity between producing basins and high-growth demand centers. - Strategic positioning is focused on 'demand-pull' projects, specifically targeting the Southeast power corridor and Permian-to-Panhandle power needs, which offer long-term stability via 20-year take-or-pay contracts. - The company is leveraging its strong recurring cash flow to fund infrastructure primarily through internal capital, maintaining a 3.5x debt-to-EBITDA ratio at the low end of its target range. - Operational execution in the RNG segment has improved significantly, with an 18% volume increase driven by better uptime and hydrocarbon recovery at facilities. - Management expects a multi-year growth runway with a projected annual expansion CapEx run rate of approximately $4 billion for the next few years. - The $14.4 billion backlog is expected to generate roughly $2.5 billion in incremental EBITDA as projects come online through 2032, though growth may be uneven year-to-year due to project timing. - Guidance for 2026 assumes a difficult-to-replicate baseline as it includes approximately $225 million in non-recurring benefits from weather events and contract buyouts. - Strategic assumptions for natural gas demand are bullish, citing third-party projections of a 46 Bcf per day increase in North American demand by 2035, driven by LNG and power generation. - Future expansion opportunities are expected to arise from 'bottlenecks' created by current large-scale projects, effectively replenishing the 'shadow backlog' over time. - The 2026 outperformance includes $175 million in favorable commodity price impacts relative to a $60 per barrel WTI budget. - Management expressed confidence in the current FERC permitting environment but noted that proposed federal permitting reform could further mitigate risks related to water permits and court-ordered vacaturs. - The Western Gateway project includes specific cost protections against overruns, reflecting a prudent approach to capital deployment in complex regulatory environments. - A temporary Jones Act waiver has introduced some market uncertainty, though the tanker fleet remains 100% leased for the remainder of 2026. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management confirmed the project can scale from 2.6 Bcf to 3.5 Bcf per day depending on final binding commitments from the open season. - Current FID is supported by signed commitments from investment-grade utilities, with additional interest from customers still working through precedent agreements. - The current $1.5 billion CapEx estimate focuses on brownfield components, but could increase if the project scales to meet the 2 Bcf of interest seen in the non-binding open season. - The project is being staged to accommodate customers at different stages of the power project evaluation process. - Management dismissed oversupply concerns, citing a shift toward 'market-pull' demand from power centers and LNG exports rather than just producer-push. - Existing pipes like GCX and PHP are considered low-cost and well-positioned to capture incremental demand as older contracts expire. - The Permian Link project is anchored by an A-rated hyperscaler seeking 'seven nines' of reliability, which KMI provides through its integrated storage and pipeline flexibility. - The project is designed for speed to meet the specific timelines of data center developers in the Texas Panhandle.

Kinder Morgan (KMI) came out with quarterly earnings of $0.35 per share, beating the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.29 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +6.06%. A quarter ago, it was expected that this oil and natural gas pipeline and storage company would post earnings of $0.31 per share when it actually produced earnings of $0.37, delivering a surprise of +19.35%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Kinder Morgan, which belongs to the Zacks Oil and Gas - Production and Pipelines industry, posted revenues of $4.53 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 3.52%. This compares to year-ago revenues of $4.15 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Kinder Morgan shares have added about 22.1% since the beginning of the year versus the S&P 500's gain of 12.7%. While Kinder Morgan has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Kinder Morgan was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.39 on $4.61 billion in revenues for the coming quarter and $1.56 on $18.34 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Production and Pipelines is currently in the top 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Williams Companies, Inc. (The) (WMB), has yet to report results for the quarter ended September 2026. The results are expected to be released on November 2. This pipeline operator is expected to post quarterly earnings of $0.56 per share in its upcoming report, which represents a year-over-year change of +14.3%. The consensus EPS estimate for the quarter has been revised 0.5% lower over the last 30 days to the current level. Williams Companies, Inc. (The)'s revenues are expected to be $3.19 billion, up 9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Announces $5.4 Billion of Additions to Expansion Project Backlog Largest Natural Gas Project Backlog in Company's History Earnings per share (EPS) and Adjusted EPS both 21% higher than 2025 HOUSTON, October 21, 2026--(BUSINESS WIRE)--Kinder Morgan, Inc.'s (NYSE: KMI) board of directors today approved a cash dividend of $0.2975 per share for the third quarter ($1.19 annualized), payable on November 16, 2026, to stockholders of record as of the close of business on November 2, 2026. This dividend is a 2% increase over the third quarter of 2025. KMI is reporting all-time record third quarter results: - Third quarter net income attributable to KMI of $764 million. This was up from $628 million in the third quarter of 2025. Adjusted Net Income Attributable to KMI, which excludes Certain Items, was $792 million, 22% higher than the third quarter of 2025. - Adjusted EBITDA of $2.18 billion, up 9% versus the third quarter of 2025. - EPS of $0.34, up 21% versus the third quarter of 2025, and Adjusted EPS of $0.35, also up 21% versus the third quarter of 2025. - Largest natural gas expansion project backlog in company history, at $13.2 billion of an overall $14.4 billion project backlog. Executive Chairman Richard D. Kinder said, "Our record-setting performance is firmly grounded in our long-standing business model. We enjoy a strategically located network of assets and a portfolio of long-term, fee-based contracts with financially strong customers, providing stable and predictable cash flows. "Our natural gas business in particular is benefiting from increasing LNG exports, rising power demand, and industrial expansion and is capitalizing on significant opportunities for investment across our footprint," said Kinder. "We expect those investments to generate attractive returns, driving future earnings and cash flows to support a growing dividend and maintain a strong balance sheet, all while helping meet growing energy demand in the United States and the world." Chief Executive Officer Kim Dang said, "This quarter we increased our expansion project backlog to $14.4 billion, including the largest natural gas project backlog in company history at $13.2 billion. Two new major projects in the backlog include Southern Natural Gas Company's (SNG) Southeast Connector and Natural Gas Pipeline Company of America's (NGPL) Permian Link. Each project is designed to transport over 2.5 billion cubic feet per day (Bcf/d) of natural gas and will be among the largest natural gas pipeline projects to be constructed in decades. The Southeast Connector Project is especially transformative in that it will deliver abundant Marcellus/Utica supply to the Southeast, one of the fastest growing demand centers in the country. "Along with the August announcement of our Western Gateway Pipeline Project, which will deliver refined products to Arizona and, for the first time via pipeline, to California, these projects will optimize energy flows in multiple regions of the U.S. We are proud to be leading that effort. "We are equally proud of the financial and operational excellence that resulted in a record third quarter. Strong financial contributions from our business segments delivered third quarter 2026 net income attributable to KMI of $764 million, 22% higher than the third quarter of 2025, while Adjusted EPS and Adjusted EBITDA were 21% and 9% higher, respectively, than the third quarter of 2025." Dang continued, "Throughout the year we have continued to internally fund high-quality capital projects while generating stable cash flow from operations of $5 billion and free cash flow, after capital expenditures and dividends, of $230 million. Our balance sheet remains healthy, as we ended the quarter with a Net Debt-to-Adjusted EBITDA ratio of 3.5 times, at the low end of our targeted range. "As noted above, the expansion project backlog at the end of the third quarter was $14.4 billion, up $4.7 billion from the second quarter of 2026, with $5.4 billion of additions net of $700 million in projects placed in service. More than 75% of the total backlog is associated with projects supporting power generation and local distribution company demand. As our record-setting performance indicates, the strong interest from our customers in developing additional natural gas infrastructure continues to grow. "In calculating backlog Project EBITDA multiples, we exclude both the capital and EBITDA from our CO2 enhanced oil recovery projects and our gathering and processing projects where first-full-year multiples are more favorable, but the earnings are more uneven than with our other business segments. The larger $13.7 billion portion of the backlog represents stable, primarily take-or-pay cash flows. When those projects are realized, we expect them to generate an aggregate first-full-year Project EBITDA multiple of approximately 5.7 times." 2026 Outlook For 2026, KMI budgeted net income attributable to KMI of $3.1 billion, Adjusted EPS of $1.36, declared dividends of $1.19 per share, Adjusted EBITDA of $8.6 billion, and year-end Net Debt-to-Adjusted EBITDA of 3.8 times. KMI currently expects to be more than 6% favorable to budget on an Adjusted EBITDA basis and more than 13% favorable to budget on an Adjusted EPS basis for the year. KMI also expects to end the year with a Net Debt-to-Adjusted EBITDA ratio of 3.6 times, which is 0.2 times favorable to KMI's budget. This press release includes Adjusted Net Income Attributable to KMI, Adjusted EPS, Adjusted Segment EBDA, Adjusted EBITDA, Net Debt, FCF, and Project EBITDA, all of which are non-GAAP financial measures. For descriptions of these non-GAAP financial measures and reconciliations to the most comparable measures prepared in accordance with generally accepted accounting principles, please see "Non-GAAP Financial Measures" and the tables accompanying KMI's preliminary financial statements. Overview of Business Segments KMI President Dax Sanders stated, "The Natural Gas Pipelines business segment's financial performance was up in the third quarter of 2026 relative to the third quarter of 2025, on higher contributions from the El Paso Natural Gas Pipeline (EPNG), KinderHawk gathering system, Tennessee Gas Pipeline (TGP), and our Texas Intrastate system. "Natural gas transport volumes were up 3% compared to the third quarter of 2025, primarily due to LNG deliveries on TGP and increased demand for services on our Texas Intrastate system. "Natural gas gathering volumes were up 14% from the third quarter of 2025, primarily on our KinderHawk system." Sanders added, "While the Products Pipelines business segment had favorable contributions compared to the third quarter of 2025, primarily due to favorable commodity pricing, these were more than offset by legal, environmental, and other expense accruals, which are treated as Certain Items. "Total refined products volumes were down 3% compared to the third quarter of 2025, due to a higher commodity price environment over the quarter. Crude and condensate volumes were down 11% compared to the third quarter of 2025, due to lower gathered volumes in the Bakken and the conversion of our Double H pipeline to natural gas liquids service." Sanders continued, "Terminals business segment earnings were up compared to the third quarter of 2025 on higher liquids contributions from expansion projects placed into service, higher commodity prices, increased strength in our coal and petroleum coke handling activities, and higher rates on our Jones Act tanker fleet. "CO2 business segment earnings, which include the Energy Transition Ventures group, were up compared to the third quarter of 2025, due primarily to higher commodity prices and higher crude and NGL volumes. Volumes at SACROC, our largest field, were up 11% compared to the prior year period, and NGL sales volumes were up 9%." Other News Corporate - On August 6, 2026, KMI issued $1.15 billion of 5.55% senior notes due August 2036 and $600 million of 6.15% senior notes due August 2056. The proceeds were used to repay outstanding commercial paper and maturing debt and for general corporate purposes. Natural Gas Pipelines - SNG has reached a final investment decision to proceed with the Southeast Connector Project (SEC Project) after securing sufficient long-term, take-or-pay transportation agreements with shippers. The SEC Project is designed to transport up to 2.6 Bcf/d of natural gas and includes approximately 470 miles of new pipeline and new and expanded compression infrastructure to serve growing markets in the Southeast. The project can be scaled further with additional customer commitments. The KMI share of the total project cost is expected to be $3.1 billion, though final capacity and capital expenditure levels will be determined depending on the ultimate project scope. Subject to the timely receipt of all required permits and approvals, the SEC Project is expected to be placed in service in phases beginning in the fourth quarter of 2030. - NGPL has reached a final investment decision to proceed with its Permian Link Project. The approximately $4.2 billion project (KMI-share approximately $1.6 billion) is designed to provide approximately 2.8 Bcf/d of natural gas transportation capacity through the construction of approximately 434 miles of new pipeline and related compression, metering, and interconnect facilities. The project will serve new power generation for an A-rated hyperscaler and is supported by long-term, take-or-pay transportation agreements. Subject to the timely receipt of all required permits and approvals, the Permian Link Project is expected to be placed in service in the third quarter of 2030. - KMI has sanctioned a $95 million second phase and $55 million third phase of its Creekside Lateral Project following the execution of additional long-term, take-or-pay agreements with data center and industrial customers. Upon completion of all phases, this approximately $235 million intrastate project is expected to provide more than 750 million cubic feet per day of contracted natural gas transportation to serve growing demand in Central Texas. The project has capacity to transport approximately 1.3 Bcf/d, with future expansion potential above 2 Bcf/d. Subject to the timely receipt of all required permits and approvals, KMI expects to place the projects in service in phases, first in the fourth quarter of 2026 and then in the fourth quarter of 2027. - SNG and TGP have reached a final investment decision to proceed with the Bear Creek Storage Expansion Project. The approximately $160 million project (KMI-share approximately $120 million) includes a base natural gas conversion and facility expansion that will support the leasing of approximately 10 Bcf of storage capacity to TGP for which TGP has secured long-term binding agreements. Subject to the timely receipt of all required permits and approvals, the project is expected to be placed in service in April 2029. - The Plantation North Expansion Project on KMI's KinderHawk gathering system is nearing completion. The more than $500 million project, backed by life-of-lease acreage dedications, supports projected production growth from the Haynesville Basin and increasing LNG demand along the Gulf Coast. The project is expected to be completed by year-end 2026. Products Pipelines - On August 11, 2026, KMI, Phillips 66, and HF Sinclair announced a final joint venture agreement and reached a final investment decision to move forward with the proposed Western Gateway Pipeline. With a design capacity of approximately 230,000 barrels per day, the approximately 1,300-mile refined products pipeline system would create a new fuel supply path from the Midwest and Gulf Coast regions to markets in Arizona and California, with connectivity to Las Vegas, Nevada, via KMI's CALNEV Pipeline. The partners continue to advance the project and pursue the necessary permits, with an expected in-service date in 2029, subject to the receipt of all permits and regulatory approvals. Under the joint venture, Phillips 66, KMI, and HF Sinclair will own 49.9%, 35.1%, and 15% of the system, respectively. Terminals - In the third quarter of 2026, KMI completed the sale of three dry bulk terminals in Tampa, Florida to affiliates of Watco Companies LLC (Watco). Total consideration for the $139 million transaction consisted of cash and additional preferred equity interests in Watco. - KMI continues to advance the expansion of its industry-leading storage, connectivity, and logistics offering at its Houston Ship Channel refined products hub. Enhancements to in-tank blending capabilities for butane and other gasoline components are underway, while permitting and right-of-way acquisition efforts associated with two new dedicated refined products pipelines connecting KMI's Pasadena Terminal with a nearby major refinery continue to progress. The approximately $139 million project is supported by a long-term storage and volume commitment with a major national oil company and is expected to be placed in service in the third quarter of 2027. - KMI continues to advance the expansion of its 1.5-million-barrel Kinder Morgan Export Terminal on the Houston Ship Channel. The approximately $30 million project is supported by a long-term storage commitment with a major international trading company and is expected to be placed in service in the first quarter of 2027. All expected in-service dates for projects described above assume timely receipt and continued effectiveness of all necessary permits and approvals. Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy infrastructure companies in North America. Access to reliable, affordable energy is a critical component for improving lives around the world. We are committed to providing energy transportation and storage services in a safe, efficient, and environmentally responsible manner for the benefit of the people, communities, and businesses we serve. We own an interest in or operate approximately 78,000 miles of pipelines, more than 130 terminals, over 700 Bcf of working natural gas storage capacity and have renewable natural gas generation capacity of approximately 6.9 Bcf per year of gross production. Our pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO2, renewable fuels and other products, and our terminals store and handle various commodities, including gasoline, diesel fuel, jet fuel, chemicals, metals, petroleum coke, and ethanol and other renewable fuels and feedstocks. Learn more about our work advancing energy solutions on the lower carbon initiatives page at www.kindermorgan.com. Please join Kinder Morgan, Inc. at 4:30 p.m. ET on Wednesday, October 21, at www.kindermorgan.com for a LIVE webcast conference call on the company's third quarter earnings. Non-GAAP Financial Measures As described in further detail below, our management evaluates our performance primarily using Net income attributable to Kinder Morgan, Inc. and Segment earnings before DD&A expenses (EBDA), along with the non-GAAP financial measures of Adjusted Net Income Attributable to Common Stock, in the aggregate and per share, Adjusted Segment EBDA, Adjusted Net Income Attributable to Kinder Morgan, Inc., Adjusted earnings before interest, income taxes, DD&A expenses (EBITDA), and Net Debt. Our non-GAAP financial measures described below should not be considered alternatives to GAAP net income attributable to Kinder Morgan, Inc. or other GAAP measures and have important limitations as analytical tools. Our computations of these non-GAAP financial measures may differ from similarly titled measures used by others. You should not consider these non-GAAP financial measures in isolation or as substitutes for an analysis of our results as reported under GAAP. Management compensates for the limitations of our consolidated non-GAAP financial measures by reviewing our comparable GAAP measures identified in the descriptions of consolidated non-GAAP measures below, understanding the differences between the measures and taking this information into account in its analysis and its decision-making processes. Certain Items, as adjustments used to calculate our non-GAAP financial measures, are items that are required by GAAP to be reflected in net income attributable to Kinder Morgan, Inc., but typically (1) do not have a cash impact (for example, unsettled commodity hedges and asset impairments), (2) by their nature are separately identifiable from our normal business operations and in most cases are likely to occur only sporadically (for example, certain legal settlements, enactment of new tax legislation and casualty losses), or (3) align the timing of cash impacts from natural gas inventory hedges with the future associated physical withdrawals from inventory. (See the accompanying Tables 2, 3, 5, and 6.) We also include adjustments related to joint ventures (see "Amounts associated with Joint Ventures" below). The following table summarizes our Certain Items for the three and nine months ended September 30, 2026 and 2025. | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | | (In millions) Certain Items | | | | | | | Legal, environmental, and other accruals | $ | 138 | | | $ | — | | | $ | 138 | | | $ | — | Risk management activities (1)(2) | | 3 | | | | 24 | | | | 33 | | | | 13 | Gain on divestiture, net (3) | | (71 | ) | | | — | | | | (71 | ) | | | — | Income tax Certain Items (4) | | (42 | ) | | | (4 | ) | | | (31 | ) | | | (41 | ) Other | | — | | | | — | | | | — | | | | 1 | Total Certain Items (5)(6) | $ | 28 | | | $ | 20 | | | $ | 69 | | | $ | (27 | ) Notes (1) | Includes changes in fair value of unsettled derivatives, of which gains or losses are reflected within non-GAAP financial measures when realized. (2) | Includes natural gas inventory hedges, of which gains or losses are reflected within non-GAAP financial measures when the associated physical gas is withdrawn from inventory. (3) | Amounts for three and nine-month periods ended September 30, 2026 reflect a gain recognized on the sale of certain assets in our Terminals business segment. (4) | Represents the income tax provision on Certain Items plus discrete income tax items. Includes the impact of KMI's income tax provision on Certain Items affecting earnings from equity investments and is separate from the related tax provision recognized at the investees by the joint ventures which are also taxable entities. (5) | Amounts for the periods ended September 30, 2026 and 2025 include $(1) million for each of the three-month periods and $(2) million and $(1) million for the nine-month periods, respectively, reported within "Earnings from equity investments" on the accompanying Preliminary Consolidated Statement of Income of "Risk management activities." (6) | Amounts for the three and nine-month periods ended September 30, 2025 includes $11 million and $12 million, respectively, reported within "Interest, net" on the accompanying Preliminary Consolidated Statement of Income of "Risk management activities." Adjusted Net Income Attributable to Kinder Morgan, Inc. (KMI) is calculated by adjusting net income attributable to Kinder Morgan, Inc. for Certain Items. Adjusted Net Income Attributable to Kinder Morgan, Inc. is used by us, our investors, and other external users of our financial statements as a supplemental measure that provides decision-useful information regarding our period-over-period performance and ability to generate earnings that are core to our ongoing operations. We believe the GAAP measure most directly comparable to Adjusted Net Income Attributable to Kinder Morgan, Inc. is net income attributable to Kinder Morgan, Inc. (See the accompanying Tables 1 and 2.) Adjusted Net Income Attributable to Common Stock is calculated by adjusting Net income attributable to Kinder Morgan, Inc., the most comparable GAAP measure, for Certain Items, and further for net income allocated to participating securities and adjusted net income in excess of distributions for participating securities. We believe Adjusted Net Income Attributable to Common Stock allows for calculation of adjusted earnings per share (Adjusted EPS) on the most comparable basis with earnings per share, the most comparable GAAP measure to Adjusted EPS. Adjusted EPS is calculated as Adjusted Net Income Attributable to Common Stock divided by our weighted average shares outstanding. Adjusted EPS applies the same two-class method used in arriving at basic earnings per share. Adjusted EPS is used by us, our investors, and other external users of our financial statements as a per-share supplemental measure that provides decision-useful information regarding our period-over-period performance and ability to generate earnings that are core to our ongoing operations. (See the accompanying Table 2.) Adjusted Segment EBDA is calculated by adjusting segment earnings before DD&A, general and administrative expenses and corporate charges, interest expense, and income taxes (Segment EBDA) for Certain Items attributable to the segment. Adjusted Segment EBDA is used by management in its analysis of segment performance and management of our business. We believe Adjusted Segment EBDA is a useful performance metric because it provides management, investors, and other external users of our financial statements additional insight into performance trends across our business segments, our segments' relative contributions to our consolidated performance, and the ability of our segments to generate earnings on an ongoing basis. Adjusted Segment EBDA is also used as a factor in determining compensation under our annual incentive compensation program for our business segment presidents and other business segment employees. We believe it is useful to investors because it is a measure that management uses to allocate resources to our segments and assess each segment's performance. (See the accompanying Table 3.) Adjusted EBITDA is calculated by adjusting net income attributable to Kinder Morgan, Inc. for Certain Items and further for DD&A, including the amortization of basis differences related to our joint ventures, income tax expense, and interest. We also include amounts from joint ventures for income taxes and DD&A (see "Amounts associated with Joint Ventures" below). Adjusted EBITDA (on a rolling 12-months basis) is used by management, investors, and other external users, in conjunction with our Net Debt (as described further below), to evaluate our leverage. Management and external users also use Adjusted EBITDA as an important metric to compare the valuations of companies across our industry. Our ratio of Net Debt-to-Adjusted EBITDA is used as a supplemental performance target for purposes of our annual incentive compensation program. We believe the GAAP measure most directly comparable to Adjusted EBITDA is net income attributable to Kinder Morgan, Inc. (See the accompanying Tables 2 and 5.) Amounts associated with Joint Ventures - Certain Items and Adjusted EBITDA reflect amounts from unconsolidated joint ventures (JVs) and consolidated JVs utilizing the same recognition and measurement methods used to record "Earnings from equity investments" and "Noncontrolling interests (NCI)," respectively. The calculation of Adjusted EBITDA related to our unconsolidated and consolidated JVs includes the same adjustments (DD&A, including the amortization of basis differences related to joint ventures only, and income tax expense) with respect to the JVs as those included in the calculation of Adjusted EBITDA for our wholly-owned consolidated subsidiaries; further, we remove the portion of these adjustments attributable to non-controlling interests. (See Tables 2, 5 and 6.) Although these amounts related to our unconsolidated JVs are included in the calculation of Adjusted EBITDA, such inclusion should not be understood to imply that we have control over the operations and resulting revenues, expenses, or cash flows of such unconsolidated JVs. Net Debt is calculated by subtracting from debt (1) cash and cash equivalents, (2) debt fair value adjustments, and (3) the foreign exchange impact on Euro-denominated bonds for which we have entered into currency swaps to convert that debt to U.S. dollars. Net Debt, on its own and in conjunction with our Adjusted EBITDA (on a rolling 12-months basis) as part of a ratio of Net Debt-to-Adjusted EBITDA, is a non-GAAP financial measure that is used by management, investors, and other external users of our financial information to evaluate our leverage. Our ratio of Net Debt-to-Adjusted EBITDA is also used as a supplemental performance target for purposes of our annual incentive compensation program. We believe the most comparable measure to Net Debt is total debt as reconciled in the notes to the accompanying Preliminary Consolidated Balance Sheets in Table 5. Project EBITDA is calculated for an individual capital project as earnings before interest expense, taxes, DD&A, and general and administrative expenses attributable to such project, or for JV projects, consistent with the methods described above under "Amounts associated with Joint Ventures," and in conjunction with capital expenditures for the project, is the basis for our Project EBITDA multiple. Management, investors, and others use Project EBITDA to evaluate our return on investment for capital projects before expenses that are generally not controllable by operating managers in our business segments. We believe the GAAP measure most directly comparable to Project EBITDA is the portion of net income attributable to a capital project. We do not provide the portion of budgeted net income attributable to individual capital projects (the GAAP financial measure most directly comparable to Project EBITDA) due to the impracticality of predicting, on a project-by-project basis through the second full year of operations, certain amounts required by GAAP, such as projected commodity prices, unrealized gains and losses on derivatives marked to market, and potential estimates for certain contingent liabilities associated with the project completion. FCF is calculated by reducing cash flow from operations for capital expenditures (sustaining and expansion), and FCF after dividends is calculated by further reducing FCF for dividends paid during the period. FCF is used by management, investors, and other external users as an additional leverage metric, and FCF after dividends provides additional insight into cash flow generation. Therefore, we believe FCF is useful to our investors. We believe the GAAP measure most directly comparable to FCF is cash flow from operations. (See the accompanying Table 6.) Important Information Relating to Forward-Looking Statements This news release includes forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. Generally, the words "expects," "believes," "anticipates," "plans," "will," "shall," "estimates," "projects," and similar expressions identify forward-looking statements, which are generally not historical in nature. Forward-looking statements in this news release include, among others, express or implied statements pertaining to: the long-term demand for KMI's assets and services; KMI's 2026 expectations; anticipated dividends; KMI's capital projects, including the regulatory environment for projects and expected costs, completion timing, and benefits of those projects; and proposed joint ventures. Forward-looking statements are subject to risks and uncertainties and are based on the beliefs and assumptions of management, based on information currently available to them. Although KMI believes that these forward-looking statements are based on reasonable assumptions, it can give no assurance as to when or if any such forward-looking statements will materialize nor their ultimate impact on our operations or financial condition. Important factors that could cause actual results to differ materially from those expressed in or implied by these forward-looking statements include: the timing and extent of changes in the supply of and demand for the products we transport and handle; trends expected to drive new natural gas demand for electricity generation; commodity prices; counterparty financial risk; changes in tariffs and trade restrictions; repercussions of recent armed conflicts in the Middle East, including commodity price volatility and potential adverse effects on financial and economic conditions; our ability to obtain required permits and approvals for pending expansion projects when expected; and the other risks and uncertainties described in KMI's reports filed with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year-ended December 31, 2025 (under the headings "Risk Factors" and "Information Regarding Forward-Looking Statements" and elsewhere), and its subsequent reports, which are available through the SEC's EDGAR system at www.sec.gov and on our website at ir.kindermorgan.com. Forward-looking statements speak only as of the date they were made, and except to the extent required by law, KMI undertakes no obligation to update any forward-looking statement because of new information, future events, or other factors. Because of these risks and uncertainties, readers should not place undue reliance on these forward-looking statements. Table 1 Kinder Morgan, Inc. and Subsidiaries Preliminary Consolidated Statements of Income (In millions, except per share amounts, unaudited) | | | | | | | | | | | | Three Months Ended September 30, | | % change | | Nine Months Ended September 30, | | % change | | 2026 | | | | 2025 | | | | | 2026 | | | | 2025 | | Revenues | $ | 4,531 | | | $ | 4,146 | | | | | $ | 13,836 | | | $ | 12,429 | | | Operating costs, expenses, and other | | | | | | | | | | | Costs of sales (exclusive of items shown separately below) | | 1,566 | | | | 1,395 | | | | | | 4,720 | | | | 4,082 | | | Operations and maintenance | | 949 | | | | 786 | | | | | | 2,466 | | | | 2,270 | | | Depreciation, depletion, and amortization | | 628 | | | | 609 | | | | | | 1,881 | | | | 1,835 | | | General and administrative | | 190 | | | | 183 | | | | | | 566 | | | | 558 | | | Taxes, other than income taxes | | 121 | | | | 111 | | | | | | 355 | | | | 334 | | | Other income, net | | (83 | ) | | | (1 | ) | | | | | (102 | ) | | | (10 | ) | | Total operating costs, expenses, and other | | 3,371 | | | | 3,083 | | | | | | 9,886 | | | | 9,069 | | | Operating income | | 1,160 | | | | 1,063 | | | | | | 3,950 | | | | 3,360 | | | Other income (expense) | | | | | | | | | | | Earnings from equity investments | | 231 | | | | 221 | | | | | | 710 | | | | 647 | | | Interest, net | | (430 | ) | | | (456 | ) | | | | | (1,285 | ) | | | (1,359 | ) | | Other, net | | 19 | | | | 11 | | | | | | 59 | | | | 39 | | | Income before income taxes | | 980 | | | | 839 | | | | | | 3,434 | | | | 2,687 | | | Income tax expense | | (190 | ) | | | (185 | ) | | | | | (749 | ) | | | (548 | ) | | Net income | | 790 | | | | 654 | | | | | | 2,685 | | | | 2,139 | | | Net income attributable to NCI | | (26 | ) | | | (26 | ) | | | | | (78 | ) | | | (79 | ) | | Net income attributable to Kinder Morgan, Inc. | $ | 764 | | | $ | 628 | | | | | $ | 2,607 | | | $ | 2,060 | | | Class P Shares | | | | | | | | | | | Basic and diluted earnings per share | $ | 0.34 | | | $ | 0.28 | | | 21 | % | | $ | 1.17 | | | $ | 0.92 | | | 27 | % Basic and diluted weighted average shares outstanding | | 2,227 | | | | 2,224 | | | — | % | | | 2,226 | | | | 2,223 | | | — | % Declared dividends per share | $ | 0.2975 | | | $ | 0.2925 | | | 2 | % | | $ | 0.8925 | | | $ | 0.8775 | | | 2 | % Adjusted Net Income Attributable to Kinder Morgan, Inc. (1) | $ | 792 | | | $ | 648 | | | 22 | % | | $ | 2,676 | | | $ | 2,033 | | | 32 | % Adjusted EPS (1) | $ | 0.35 | | | $ | 0.29 | | | 21 | % | | $ | 1.20 | | | $ | 0.91 | | | 32 | % Note (1) | Adjusted Net Income Attributable to Kinder Morgan, Inc. is Net income attributable to Kinder Morgan, Inc. adjusted for Certain Items. Adjusted EPS calculation uses Adjusted Net Income Attributable to Common Stock. See Table 2 for reconciliations. Table 2 Kinder Morgan, Inc. and Subsidiaries Preliminary Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Kinder Morgan, Inc., to Adjusted Net Income Attributable to Common Stock and to Adjusted EBITDA Reconciliations (In millions, unaudited) | | | | | | | | | | | | Three Months EndedSeptember 30, | | % change | | Nine Months EndedSeptember 30, | | % change | | 2026 | | | | 2025 | | | | | 2026 | | | | 2025 | | Net income attributable to Kinder Morgan, Inc. | $ | 764 | | | $ | 628 | | | 22 | % | | $ | 2,607 | | | $ | 2,060 | | | 27 | % Certain Items (1) | | | | | | | | | | | Legal, environmental, and other accruals | | 138 | | | | — | | | | | | 138 | | | | — | | | Risk management activities | | 3 | | | | 24 | | | | | | 33 | | | | 13 | | | Gain on divestiture, net | | (71 | ) | | | — | | | | | | (71 | ) | | | — | | | Income tax Certain Items | | (42 | ) | | | (4 | ) | | | | | (31 | ) | | | (41 | ) | | Other | | — | | | | — | | | | | | — | | | | 1 | | | Total Certain Items | | 28 | | | | 20 | | | 40 | % | | | 69 | | | | (27 | ) | | 356 | % Adjusted Net Income Attributable to Kinder Morgan, Inc. | $ | 792 | | | $ | 648 | | | 22 | % | | $ | 2,676 | | | $ | 2,033 | | | 32 | % | | | | | | | | | | | Net income attributable to Kinder Morgan, Inc. | $ | 764 | | | $ | 628 | | | 22 | % | | $ | 2,607 | | | $ | 2,060 | | | 27 | % Total Certain Items (2) | | 28 | | | | 20 | | | | | | 69 | | | | (27 | ) | | Net income allocated to participating securities and other (3) | | (4 | ) | | | (4 | ) | | | | | (13 | ) | | | (11 | ) | | Adjusted Net Income Attributable to Common Stock | $ | 788 | | | $ | 644 | | | 22 | % | | $ | 2,663 | | | $ | 2,022 | | | 32 | % | | | | | | | | | | | Net income attributable to Kinder Morgan, Inc. | $ | 764 | | | $ | 628 | | | 22 | % | | $ | 2,607 | | | $ | 2,060 | | | 27 | % Total Certain Items (2) | | 28 | | | | 20 | | | | | | 69 | | | | (27 | ) | | DD&A | | 628 | | | | 609 | | | | | | 1,881 | | | | 1,835 | | | Income tax expense (4) | | 232 | | | | 189 | | | | | | 780 | | | | 589 | | | Interest, net (5) | | 430 | | | | 445 | | | | | | 1,285 | | | | 1,347 | | | Amounts associated with joint ventures | | | | | | | | | | | Unconsolidated JV DD&A (6) | | 92 | | | | 96 | | | | | | 275 | | | | 296 | | | Remove consolidated JV partners' DD&A | | (16 | ) | | | (16 | ) | | | | | (47 | ) | | | (47 | ) | | Unconsolidated JV income tax expense (7) | | 22 | | | | 20 | | | | | | 68 | | | | 67 | | | Adjusted EBITDA | $ | 2,180 | | | $ | 1,991 | | | 9 | % | | $ | 6,918 | | | $ | 6,120 | | | 13 | % Notes (1) | See table included in "Non-GAAP Financial Measures—Certain Items." (2) | For a detailed listing, see the above reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Kinder Morgan, Inc. (3) | Other for each of the periods ended September 30, 2026 and 2025 includes Adjusted net income in excess of distributions for participating securities of less than $1 million. (4) | To avoid duplication, adjustments for income tax expense for the periods ended September 30, 2026 and 2025 exclude $(42) million and $(4) million for the three-month periods, respectively, and $(31) million and $(41) million for the nine-month periods, respectively, which amounts are already included within "Certain Items." See table included in "Non-GAAP Financial Measures—Certain Items." (5) | To avoid duplication, adjustments for interest, net excludes $11 million and $12 million for the three and nine-month periods ended September 30, 2025, respectively, which amounts are already included within "Certain Items." See table included in "Non-GAAP Financial Measures—Certain Items." (6) | Includes amortization of basis differences related to our JVs. (7) | Includes the tax provision on Certain Items recognized by the investees that are taxable entities associated with our Citrus, NGPL, and Products (SE) Pipe Line equity investments. The impact of KMI's income tax provision on Certain Items affecting earnings from equity investments is included within "Certain Items" above. Table 3 Kinder Morgan, Inc. and Subsidiaries Preliminary Reconciliation of Segment EBDA to Adjusted Segment EBDA (In millions, unaudited) | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2026 | | | | 2025 | | | 2026 | | | | 2025 | Segment EBDA (1) | | | | | | | Natural Gas Pipelines Segment EBDA | $ | 1,501 | | | $ | 1,391 | | $ | 4,732 | | | $ | 4,280 | Certain Items (2) | | | | | | | Risk management activities | | (12 | ) | | | 12 | | | 15 | | | | 3 | Natural Gas Pipelines Adjusted Segment EBDA | $ | 1,489 | | | $ | 1,403 | | $ | 4,747 | | | $ | 4,283 | | | | | | | | Products Pipelines Segment EBDA | $ | 172 | | | $ | 288 | | $ | 835 | | | $ | 850 | Certain Items (2) | | | | | | | Legal, environmental and other accruals | | 138 | | | | — | | | 138 | | | | — | Risk management activities | | 3 | | | | — | | | 4 | | | | 1 | Products Pipelines Adjusted Segment EBDA | $ | 313 | | | $ | 288 | | $ | 977 | | | $ | 851 | | | | | | | | Terminals Segment EBDA | $ | 385 | | | $ | 274 | | $ | 1,024 | | | $ | 849 | Certain Items (2) | | | | | | | Gain on divestiture, net | | (71 | ) | | | — | | | (71 | ) | | | — | Terminals Adjusted Segment EBDA | $ | 314 | | | $ | 274 | | $ | 953 | | | $ | 849 | | | | | | | | CO2 Segment EBDA | $ | 172 | | | $ | 135 | | $ | 566 | | | $ | 466 | Certain Items (2) | | | | | | | Risk management activities | | 12 | | | | 1 | | | 14 | | | | (3 | ) CO2 Adjusted Segment EBDA | $ | 184 | | | $ | 136 | | $ | 580 | | | $ | 463 | Notes (1) | Includes revenues, earnings from equity investments, operating expenses, other (income) expense, net, and other, net. Operating expenses include costs of sales, operations and maintenance expenses, and taxes, other than income taxes. The composition of Segment EBDA is not addressed nor prescribed by generally accepted accounting principles. (2) | See "Non-GAAP Financial Measures—Certain Items." Table 4 Segment Volume and CO2 Segment Hedges Highlights (Historical data is pro forma for acquired and divested assets, JV volumes at KMI share (1)) | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Natural Gas Pipelines | | | | | | | Natural gas transport volumes (BBtu/d) | | 49,273 | | | | 47,918 | | | | 49,032 | | | | 46,377 | Natural gas sales volumes (BBtu/d) | | 4,131 | | | | 3,712 | | | | 3,978 | | | | 3,051 | Gathering volumes (BBtu/d) | | 4,722 | | | | 4,129 | | | | 4,561 | | | | 3,861 | NGL transport (MBbl/d) | | 58 | | | | 39 | | | | 51 | | | | 37 | Products Pipelines (MBbl/d) | | | | | | | Gasoline (2) | | 940 | | | | 978 | | | | 941 | | | | 976 | Diesel fuel | | 363 | | | | 373 | | | | 354 | | | | 359 | Jet fuel | | 293 | | | | 301 | | | | 294 | | | | 309 | Total refined product volumes | | 1,596 | | | | 1,652 | | | | 1,589 | | | | 1,644 | Crude and condensate | | 410 | | | | 459 | | | | 417 | | | | 479 | Total delivery volumes (MBbl/d) | | 2,006 | | | | 2,111 | | | | 2,006 | | | | 2,123 | Terminals | | | | | | | Liquids leasable capacity (MMBbl) | | 78.7 | | | | 78.7 | | | | 78.7 | | | | 78.7 | Liquids utilization % (3) | | 92.6 | % | | | 94.6 | % | | | 93.0 | % | | | 94.4 | % Bulk transload tonnage (MMtons) | | 13.5 | | | | 11.5 | | | | 37.5 | | | | 34.8 | CO2 (MBbl/d) | | | | | | | SACROC oil production | | 20.05 | | | | 18.01 | | | | 20.47 | | | | 18.56 | Yates oil production | | 6.00 | | | | 5.90 | | | | 5.85 | | | | 5.95 | Other | | 1.02 | | | | 1.13 | | | | 1.04 | | | | 1.11 | Total oil production - net (MBbl/d) (4) | | 27.07 | | | | 25.04 | | | | 27.36 | | | | 25.62 | NGL sales volumes - net (MBbl/d) (4) | | 9.88 | | | | 9.03 | | | | 9.81 | | | | 9.11 | CO2 sales volumes - net (Bcf/d) | | 0.267 | | | | 0.274 | | | | 0.295 | | | | 0.292 | RNG sales volumes (BBtu/d) | | 13 | | | | 11 | | | | 13 | | | | 10 | Realized weighted average oil price ($ per Bbl) | $ | 68.65 | | | $ | 67.74 | | | $ | 69.35 | | | $ | 67.91 | Realized weighted average NGL price ($ per Bbl) | $ | 34.48 | | | $ | 31.09 | | | $ | 32.65 | | | $ | 32.85 | CO2 Segment Hedges | Remaining2026 | | | 2027 | | | 2028 Crude Oil (5) | | | | | Price ($ per Bbl) | $ | 64.54 | | $ | 64.73 | | $ | 67.72 Volume (MBbl/d) | | 23.15 | | | 19.22 | | | 13.30 NGLs | | | | | Price ($ per Bbl) | $ | 43.40 | | $ | 48.48 | | Volume (MBbl/d) | | 3.88 | | | 2.06 | | Notes (1) | Volumes for acquired assets are included for all periods. However, EBDA contributions from acquisitions are included only for periods subsequent to their acquisition. Volumes for assets divested, idled and/or held for sale are excluded for all periods presented. (2) | Gasoline volumes include ethanol pipeline volumes. (3) | The ratio of our tankage capacity in service to liquids leasable capacity. (4) | Net of royalties and outside working interests. (5) | Includes West Texas Intermediate hedges. Table 5 Kinder Morgan, Inc. and Subsidiaries Preliminary Consolidated Balance Sheets (In millions, unaudited) | | | | September 30, | | December 31, | | 2026 | | | | 2025 | Assets | | | Cash and cash equivalents | $ | 918 | | | $ | 63 | Other current assets | | 2,552 | | | | 2,691 | Property, plant, and equipment, net | | 40,892 | | | | 39,331 | Investments | | 7,836 | | | | 7,532 | Goodwill | | 20,075 | | | | 20,084 | Deferred charges and other assets | | 3,124 | | | | 3,047 | Total assets | $ | 75,397 | | | $ | 72,748 | Liabilities and Stockholders' Equity | | | Short-term debt | $ | 1,726 | | | $ | 1,226 | Other current liabilities | | 3,453 | | | | 3,096 | Long-term debt | | 31,445 | | | | 30,597 | Debt fair value adjustments | | (98 | ) | | | 180 | Other | | 6,044 | | | | 5,200 | Total liabilities | | 42,570 | | | | 40,299 | Other stockholders' equity | | 31,757 | | | | 31,117 | Accumulated other comprehensive (loss) income | | (162 | ) | | | 45 | Total KMI stockholders' equity | | 31,595 | | | | 31,162 | Noncontrolling interests | | 1,232 | | | | 1,287 | Total stockholders' equity | | 32,827 | | | | 32,449 | Total liabilities and stockholders' equity | $ | 75,397 | | | $ | 72,748 | | | | Net Debt (1) | $ | 32,229 | | | $ | 31,716 | | | | | Adjusted EBITDA Twelve Months Ended (2) Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Last Twelve Months Adjusted EBITDA | September 30, | | December 31, | 2026 | | | | 2025 | Net income attributable to Kinder Morgan, Inc. | $ | 3,604 | | | $ | 3,056 | Total Certain Items (3) | | (61 | ) | | | (157 | ) DD&A | | 2,499 | | | | 2,453 | Income tax expense (4) | | 1,025 | | | | 834 | Interest, net (4) | | 1,726 | | | | 1,788 | Amounts associated with joint ventures | | | Unconsolidated JV DD&A (5) | | 369 | | | | 391 | Less: Consolidated JV partners' DD&A | | (62 | ) | | | (63 | ) Unconsolidated JV income tax expense | | 89 | | | | 89 | Adjusted EBITDA | $ | 9,189 | | | $ | 8,391 | | | | Net Debt-to-Adjusted EBITDA | | 3.5 | | | | 3.8 | Notes (1) | Amounts calculated as total debt, less (i) cash and cash equivalents; (ii) debt fair value adjustments; and (iii) the foreign exchange impact on our Euro denominated debt of $24 million and $44 million as of September 30, 2026 and December 31, 2025, respectively, as we have entered into swaps to convert that debt to U.S.$. (2) | Reflects the rolling 12-month amounts for each period above. (3) | See table included in "Non-GAAP Financial Measures—Certain Items." (4) | Amounts are adjusted for Certain Items. See "Non-GAAP Financial Measures—Certain Items" for more information. (5) | Includes amortization of basis differences related to our JVs. Table 6 Kinder Morgan, Inc. and Subsidiaries Preliminary Supplemental Information (In millions, unaudited) | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | KMI FCF | | | | | | | Net income attributable to Kinder Morgan, Inc. | $ | 764 | | | $ | 628 | | | $ | 2,607 | | | $ | 2,060 | Net income attributable to noncontrolling interests | | 26 | | | | 26 | | | | 78 | | | | 79 | DD&A | | 628 | | | | 609 | | | | 1,881 | | | | 1,835 | Deferred income taxes | | 194 | | | | 185 | | | | 770 | | | | 512 | Earnings from equity investments | | (231 | ) | | | (221 | ) | | | (710 | ) | | | (647 | ) Distribution of equity investment earnings (1) | | 212 | | | | 188 | | | | 575 | | | | 585 | Working capital and other items | | (3 | ) | | | (1 | ) | | | (160 | ) | | | (199 | ) Cash flow from operations | | 1,590 | | | | 1,414 | | | | 5,041 | | | | 4,225 | Capital expenditures (GAAP) | | (1,045 | ) | | | (793 | ) | | | (2,831 | ) | | | (2,206 | ) FCF | | 545 | | | | 621 | | | | 2,210 | | | | 2,019 | Dividends paid | | (665 | ) | | | (654 | ) | | | (1,984 | ) | | | (1,950 | ) FCF after dividends | $ | (120 | ) | | $ | (33 | ) | | $ | 226 | | | $ | 69 | Note (1) | Periods ended September 30, 2026 and 2025 exclude distributions from equity investments in excess of cumulative earnings of $42 million and $177 million for the three-month periods, respectively, and $138 million and $269 million for the nine-month periods, respectively. These are included in cash flows from investing activities on our consolidated statement of cash flows. View source version on businesswire.com: https://www.businesswire.com/news/home/20261021891949/en/ Contacts Dave Conover Media Relations [email protected] Investor Relations (800) 348-7320 [email protected]

- Interested in Kinder Morgan, Inc.? Here are five stocks we like better. - Kinder Morgan reported record Q3 results: Adjusted EPS rose 21% year over year to $0.35, adjusted EBITDA increased 9% to $2.18 billion, and the company raised its full-year outlook to more than 13% above budget for EPS and more than 6% above budget for EBITDA. It also increased its quarterly dividend 2% to $0.2975 per share. - The project backlog expanded to $14.4 billion after $5.4 billion of additions, led by the Southeast Connector and Permian Link natural-gas projects. The projects are supported by long-term take-or-pay contracts and are intended to serve rising demand from power generation, LNG exports and data centers. - Kinder Morgan's long-term growth outlook remains centered on natural gas: Management estimates the backlog could generate approximately $2.5 billion in future EBITDA, while transportation, gathering, terminal exports and renewable natural gas volumes all posted growth in the quarter. - Plugging In: How Kinder Morgan Powers Up Profits Kinder Morgan (NYSE:KMI) reported record third-quarter results and expanded its project backlog to $14.4 billion, led by major natural-gas infrastructure investments aimed at serving power generation, LNG exports and growing data-center-related demand. Chief Executive Officer Kim Dang said adjusted earnings per share rose 21% from the third quarter of 2025, while adjusted EBITDA increased 9%. Every business segment contributed to year-over-year growth, she said. The company also raised its expectations for the full year, forecasting adjusted EPS more than 13% above budget and adjusted EBITDA more than 6% above budget. → The AI Sell-Off Continues—These 3 Stocks Keep Raising Guidance Anyway - 3 Dividend Stocks with Growth on Tap for the Second Half "We are delivering strong results today while continuing to build a longer runway for high-quality future growth," Dang said. Chief Financial Officer David Michels said net income attributable to Kinder Morgan totaled $764 million, or $0.24 per share, compared with the prior-year quarter. Adjusted EPS was $0.35, up 21% year over year, while adjusted EBITDA reached $2.18 billion, a 9% increase and a third-quarter record for the company. → Tesla's Roadster Reveal Hints at 2 Much Bigger Moves - Pipelines and Automation: 2 Energy Plays Built for Any Oil Price The company declared a quarterly dividend of $0.2975 per share, equivalent to $1.19 per share on an annualized basis. The dividend represents a 2% increase over 2025, Michels said. Year to date, adjusted EBITDA has risen 13% and adjusted EPS has increased 32% from 2025, according to the company. Michels said Kinder Morgan's 2026 outperformance includes approximately $225 million from several potentially nonrecurring items, including Winter Storm Fern and extended Northeast cold weather, a terminals contract buyout, a favorable Federal Energy Regulatory Commission rate true-up and an unusually favorable Waha-to-Houston Ship Channel pricing spread. Favorable commodity prices added another $175 million versus budget, he said. → Luxury's Middle Market Is Cracking—These 3 Stocks Could Win Kinder Morgan ended the quarter with net debt-to-adjusted EBITDA of about 3.5 times, down from 3.8 times at the beginning of the year. The company expects to finish the year at about 3.6 times leverage despite spending related to the Monument acquisition and higher-than-budgeted capital expenditures. The company added $5.4 billion in projects to its backlog during the quarter and placed $700 million of projects into service. Dang said the backlog increased from $9.6 billion to $14.4 billion and carries an average project multiple of 5.7 times. Two joint-venture projects accounted for most of the additions: Southern Natural Gas' Southeast Connector and Natural Gas Pipeline Company of America's Permian Link. Kinder Morgan's share of the two projects is approximately $4.7 billion. Both are backed by take-or-pay agreements of at least 20 years with creditworthy shippers, management said. - Southeast Connector: Designed to deliver about 2.6 billion cubic feet per day of natural gas into the Southeast, a region Kinder Morgan identified as one of the country's fastest-growing demand areas. Dang said large-load interconnection requests in the region exceed 200 gigawatts, which could equate to roughly 8 Bcf per day of gas demand if fully developed and supplied by gas-fired generation. - Permian Link: Intended to transport Permian Basin gas north to meet increasing power demand in the Texas Panhandle. The project is contracted with an A-rated hyperscaler, according to Kinder Morgan. Dang said Permian Link is expected to enter service in 2030, while Southeast Connector is scheduled to come online in stages from 2030 through 2032. The project timing extends the company's visible growth runway beyond its previously approved developments. During the question-and-answer session, President of Natural Gas and Pipelines Sital Mody said Kinder Morgan received more than 2 Bcf of interest during a nonbinding open season for its Tennessee Gas Pipeline 219 South project. He estimated the project could involve roughly $1.5 billion in capital spending in its initial, primarily brownfield form, though a larger 2 Bcf-to-3 Bcf-per-day project would require more investment. Mody also said Southeast Connector could potentially be expanded to 3.5 Bcf per day, depending on additional signed customer commitments. Dang said Kinder Morgan already has enough signed commitments to move forward with a final investment decision on the project. In the natural gas business, transportation volumes increased 3% from the prior-year quarter, supported by higher LNG feed-gas deliveries on Tennessee Gas Pipeline and increased demand on the company's intrastate system. Natural gas gathering volumes rose 14%, including a 40% increase on the KinderHawk system in the Haynesville. Products pipeline refined-product volumes declined 3%, while crude and condensate volumes fell 11%. More than half of the crude-volume decline resulted from the removal of the Double H pipeline from service for an NGL conversion early in the third quarter of 2025, Mody said. Kinder Morgan also reached a final investment decision during the quarter on the Western Gateway project, which is intended to change how clean products are delivered to the desert Southwest and Southern California. Kinder Morgan's total cash investment of $300 million, including a $250 million contribution to the joint venture and $50 million for non-contributed assets, was added to backlog. The project is expected to enter service in 2029. In terminals, liquids lease capacity remained near 93%, while utilization of available tanks at key Houston Ship Channel and Carteret, New Jersey, hubs stood just below 96%. Export activity at the company's Houston Ship Channel docks reached 427,000 barrels per day, up 39% from the third quarter of 2025 and an all-time record, Mody said. The CO2 segment recorded an 8% increase in net oil production volumes, led by an 11% increase at SACROC. Renewable natural gas volumes rose 18%, which management attributed to improved operating uptime and hydrocarbon recovery. Executive Chairman Rich Kinder pointed to third-party forecasts supporting the company's long-term natural-gas outlook. He cited Shell's expectation that global LNG demand will reach nearly 750 million metric tons per year by 2050, up 65% from 2025, as well as North American Electric Reliability Corp. estimates for 225 gigawatts to 245 gigawatts of U.S. peak electricity-demand growth by 2035. Kinder said the company currently delivers about 40% of U.S. natural gas, including approximately 40% of LNG feed gas and more than half of gas exports to Mexico. He said the $14.4 billion backlog could add roughly $2.5 billion of EBITDA once projects are completed. Kinder Morgan, Inc (NYSE: KMI) is an energy infrastructure company that owns and operates pipelines, terminals, and other transportation and storage facilities. Its systems primarily support the movement, processing, and storage of natural gas, crude oil, refined petroleum products, and other energy commodities. The company's natural gas business transports and stores natural gas for utilities, power generators, industrial customers, and other energy companies. Kinder Morgan also operates refined products and crude oil pipelines, liquids terminals, and carbon dioxide infrastructure. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "What Kinder Morgan (KMI) Said on Its Q3 Earnings Call" was originally published by MarketBeat. 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