Core Insights - Kinder Morgan reported a "fantastic" fourth quarter with record results for both the quarter and the year, including a 10% increase in adjusted EBITDA and a 22% growth in adjusted earnings per share compared to the fourth quarter of 2024 [1][5][6] Financial Performance - The company achieved a fourth-quarter net income of $996 million and an EPS of $0.45, representing increases of 49% and 50% year-over-year, respectively [6] - For the full year, Kinder Morgan exceeded its budget, driven primarily by its natural gas business, which saw increased transport capacity and ancillary services [7][8] Growth Drivers - Management remains optimistic about long-term U.S. natural gas demand, particularly from liquefied natural gas (LNG) feed gas, which is projected to average 19.8 Bcf per day in 2026, a 19% increase from 2025 [3][5] - The company’s project backlog grew to $10 billion, with significant contributions from new projects and ongoing demand for natural gas transport and storage [4][9] Capital Expenditure and Financial Health - Kinder Morgan plans to spend approximately $3 billion annually in capital expenditures, funded from cash flow, while maintaining a net debt-to-adjusted EBITDA ratio of 3.8x [19][21] - The company received credit upgrades from S&P and Fitch, reflecting its improved financial profile [20] Segment Performance - Natural gas transport volumes increased by 9% in the fourth quarter year-over-year, with gathering volumes up 19%, driven by strong LNG feed gas deliveries [13] - In the products pipelines segment, refined products volumes decreased by 2%, while crude and condensate volumes fell 8% due to maintenance activities [14] Project Updates - Construction on major projects, including MSX, South System 4, and Trident, is on budget and ahead of schedule, with the timeline for MSX's in-service date moved up to the second quarter of 2028 [11][12] - The company is also exploring additional project opportunities beyond its approved backlog, with potential for significant growth in U.S. natural gas demand projected between 2030 and 2035 [10]