Kinder Morgan's Q4 Earnings Beat on Natural Gas Pipelines Contributions

Core Insights - Kinder Morgan Inc. (KMI) reported fourth-quarter 2025 adjusted earnings per share (EPS) of 39 cents, exceeding the Zacks Consensus Estimate of 37 cents, and an increase from 32 cents year over year [1] - Total quarterly revenues reached $4.5 billion, surpassing the Zacks Consensus Estimate of $4.4 billion, and up from $4 billion in the prior-year quarter [1] Segmental Analysis - Natural Gas Pipelines: Adjusted earnings before depreciation, depletion, and amortization (EBDA) rose to $1.63 billion from $1.43 billion year over year, driven by higher contributions from the Texas Intrastate system, KinderHawk, and Outrigger Energy assets, with increased natural gas transport and gathering volumes [3] - Product Pipelines: EBDA for the segment was $307 million, up from $299 million a year ago, attributed to higher transport rates [4] - Terminals: Generated quarterly EBDA of $294 million, an increase from $282 million year over year, with liquids utilization at 92.9%, down from 95.2% in the prior-year quarter, supported by increased rates and ancillary fees at the Houston Ship Channel hub [5] - CO2: EBDA decreased to $145 million from $161 million in the year-ago quarter [5] Operational Highlights - Total expenses related to operations and maintenance were $787 million, up from $761 million year over year, while total operating costs increased to $3.14 billion from $2.88 billion [6] - KMI reported a project backlog of $10 billion at the end of the fourth quarter, with natural gas projects comprising approximately 90% of this backlog [6] Balance Sheet - As of December 31, 2025, KMI had $63 million in cash and cash equivalents, with long-term debt amounting to $30.6 billion [7] Outlook - For the current year, KMI projected net income attributable to the company at $3.1 billion and estimated adjusted EPS at $1.36 per share, with a budgeted Adjusted EBITDA for 2026 of $8.6 billion [8] - The company anticipates ending 2026 with a net debt-to-adjusted EBITDA ratio of 3.8x [8]