Kinder Morgan Q3 Results Buoyed by Robust Growth Outlook

Core Insights - Kinder Morgan (KMI) reported third-quarter results that met consensus expectations, with adjusted EBITDA of $1.991 billion, aligning with the forecast of $1.99 billion, and maintained its dividend [2] - The company highlighted a robust growth outlook, particularly through its "shadow backlog" and the recently announced binding open season for the Western Gateway pipeline project [1][2] Financial Performance - KMI's adjusted EBITDA for the third quarter was $1.991 billion, consistent with market expectations [2] - The company affirmed an expected budget beat for 2025, attributed to its $640 million Outrigger acquisition [2] Project Developments - The Western Gateway pipeline will transport refined products from Texas to Arizona and California, addressing product demand as California refineries close [2] - The project includes new pipeline construction between Borger and Phoenix, connecting to KMI's existing SFPP pipeline, which will reverse flow into California [3] - KMI's project backlog remains steady at $9.3 billion, with a notable "shadow backlog" representing a $10 billion opportunity set, primarily in natural gas investments [4] Market Position and Growth - KMI has contracts to transport 8 billion cubic feet per day (Bcf/d) of natural gas to LNG export facilities, with plans to increase this to 12 Bcf/d by 2028 as U.S. export capacity grows [4] - The company possesses ample free cash flow and leverage capacity, allowing it to pursue growth opportunities without compromising its balance sheet [5]