Kinder Morgan(US:KMI)2026-01-21 22:32Financial Data and Key Metrics Changes - For Q4 2025, adjusted EBITDA increased by 10% compared to Q4 2024, and adjusted EPS grew by 22% [5][15] - Net income attributable to Kinder Morgan for Q4 2025 was $996 million, with EPS of $0.45, representing a 49% and 50% increase over Q4 2024 respectively [15] - The net debt to adjusted EBITDA ratio improved to 3.8 times, down from 3.9 times in the previous quarter [16] Business Line Data and Key Metrics Changes - In the natural gas business unit, transport volumes rose by 9% in Q4 2025 compared to Q4 2024, primarily due to increased LNG feed gas deliveries [10] - Natural gas gathering volumes increased by 19% in Q4 2025 from Q4 2024, with a significant contribution from the Haynesville system [10] - Refined products volumes decreased by 2% in Q4 2025 compared to Q4 2024, while crude and condensate volumes were down 8% [11] Market Data and Key Metrics Changes - The company estimates that feed gas demand will average 19.8 BCF per day in 2026, a 19% increase from 2025 [3] - The U.S. natural gas market is projected to grow with an incremental 20 BCF per day of demand growth between 2030 and 2035 [7] Company Strategy and Development Direction - Kinder Morgan's strategy focuses on leveraging its extensive pipeline networks to capitalize on the growing demand for natural gas, particularly for LNG exports [4] - The company has a project backlog of approximately $10 billion, with opportunities beyond that exceeding $10 billion [6] - The company aims to maintain a disciplined approach to capital allocation while pursuing growth opportunities [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong growth of natural gas demand, driven by the need for additional LNG feed gas [3] - The company anticipates continued strong performance in 2026, supported by its natural gas assets and project backlog [4][9] - Management noted that the balance sheet is in great shape, with recent credit rating upgrades reflecting this strength [8][16] Other Important Information - The company completed a significant asset sale, which was not planned but deemed economically beneficial [44] - S&P upgraded Kinder Morgan to BBB Plus, indicating a strengthened financial profile [8][16] Q&A Session Summary Question: Can you discuss the data center opportunities and what you're seeing actively? - Management indicated that about 60% of the $10 billion backlog is associated with power projects, including data centers, and highlighted significant power demand growth projections in states like Georgia [22][23] Question: What is the status of the Western Gateway project? - Management stated that they are evaluating capital allocation based on risk and return, and they expect to fund the project while also pursuing natural gas opportunities [29][30] Question: How meaningful is Continental Resources as a customer? - Management noted that EBITDA from Bakken is about 3% of overall EBITDA, and they do not expect a material impact from Continental's recent announcements [42] Question: Are there more non-core assets that the company is looking to sell? - Management clarified that asset sales are opportunistic and based on economic decisions, with the recent EagleHawk sale being a prime example [44][46] Question: What are the opportunities in the gas transportation market? - Management highlighted that the gas transportation market is tight, and dislocations in supply or demand present opportunities for the company [58][60]