KMI US S&P 500Russell 1000 Earnings call · transcribed from the recording
Kinder Morgan (KMI) · Q3 2026 results and valuation
Share price: $31.59 · 2026-11-11
Kinder Morgan is an American energy infrastructure company. It owns and controls oil and gas pipelines and terminals. Source: Wikipedia
Results Q3 2026 vs Q2 2026 · previous quarter · published 21 Oct 2026 and 22 Jul 2026
Tone in line with last period.
1 · Numbers
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No financial figures for this pair
Outlook given
2 · How management spoke
Unchanged
Language tone vs last period
Language: typical — about as upbeat as in Q2 2026.
3 · What stood out
Kinder Morgan expects the $14.4 billion project backlog to generate $2.5 billion of additional EBITDA.
Valuation
Is Kinder Morgan undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
The projected cash flow doesn't cover the debt, so the price is far above the model's fair value.
Current price
$31.59
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+15.6% for 10 yrs
Fair value / share
$-3.80
Buy below
$-2.85
Price vs fair value
n/a
Price vs buy-below price
n/a
Read between the lines
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Guidance
KMI expects to end the year at 3.6 times leverage, improving from the budget of 3.8 times because of EBITDA outperformance despite higher spending on an acquisition and CapEx.
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Key theme
The $14.4 billion backlog is expected to generate $2.5 billion of additional EBITDA for the company.
Source quote
“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.”
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Figure
Adjusted EPS increased by 21 percent and adjusted EBITDA grew by 9 percent, as every business segment contributed to the growth.
Source quote
“Adjusted EPS increased by 21 percent, adjusted EBITDA grew by 9 percent, and every one of our business segments contributed to that growth.”
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Figure
If you look at that in terms of where Kinder Morgan is presently, that pushes us between $11.5- $12 billion of EBITDA.
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Figure
Both projects are supported by at least 20-year take-or-pay contracts with creditworthy shippers to provide the type of long-term stable cash flow the company seeks to create.
Source quote
“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.”
4 more
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Figure
In Q3, Kinder Morgan saw 427,000 barrels a day move across its 11 docks, which represented an increase of 39% over Q3 2025 and an all-time record.
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Figure
Assuming likely options are exercised, the fleet is 100% leased through the end of this year, 97% through 2027, and 80% through 2028.
Source quote
“Assuming likely options are exercised, our fleet is 100% leased through the rest of this year, 97% leased through 2027, and 80% leased through 2028.”
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Figure
Management stated confidence that the backlog would end well over $10 billion before year end regardless of recent announcements.
Source quote
“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.”
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Key theme
KMI's additions constitute one of the largest increases in any one quarter in corporate history, and the backlog of U.S. natural gas projects now stands at an all-time record.
Source quote
“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.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Typical — about as upbeat as in Q2 2026.
Sentences that drove the tone
“Adjusted EPS increased by 21 percent, adjusted EBITDA grew by 9 percent, and every one of our business segments contributed to that growth.”
“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.”
“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%.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q3 2026not yet filed | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | — | 4.48B | 4.15B | ||
| Operating income | — | 1.35B | 1.06B | ||
| Net income | — | 867.0M | 628.0M | ||
| EPS | — | 0.39 | 0.28 | ||
| P/E today 18.5 | — | 20.6 | — | 23.2 | — |
Topics
Most discussed now
- Kinder Morgan is in the midst of the open season.
- Kinder Morgan doesn't just jump because the current year goes to 80, into projects because the current year goes to $85.
- New 26, because it some of these items is going to be a difficult year to replicate, but the underlying business...
- New You, of course, had Copper State Connector at one point.
- New Kinder Morgan can always adjust if it sees the macro environment change a little bit.
Faded since Q2 2026
- Fading The natural gas growth story remains very positive as demand for LNG export volumes and gas for electric generation...
- Fading This growth is leading to numerous additional opportunities to build new midstream infrastructure supported by long-term contracts with…
- Fading This decline was primarily the result of successfully placing more than $650 million of projects into service, partially offset by...
- Fading Kinder Morgan also had greater gathering and processing volumes as well as increased contributions from park and loan services, growth…
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
Kinder Morgan reported third-quarter net income of $764 million, up from $628 million in 2025, with EPS of $0.34 and Adjusted EPS of $0.35, both up 21% year over year.
- Regulation FD disclosure · SEC 8-K
Kinder Morgan, Inc. announced that representatives will participate in the Wolfe Research Utilities, Midstream & Clean Energy Conference on September 30, 2026, to discuss the company's business and affairs.
- Regulation FD disclosure · SEC 8-K
Kinder Morgan, Inc. announced that representatives will participate in the Barclays Energy-Power Conference on September 9, 2026, to discuss the company's business and affairs.
- Regulation FD disclosure · SEC 8-K
Kinder Morgan, Inc. announced that representatives will participate in the Citi 2026 Natural Resources Conference on August 11-12, 2026, to discuss the company's business and affairs.
- Other events · SEC 8-K
Kinder Morgan, Inc. entered into an underwriting agreement to sell $1,150,000,000 of 5.550% Senior Notes due 2036 and $600,000,000 of 6.150% Senior Notes due 2056 for general corporate purposes.
- Results of operations · SEC 8-K
Kinder Morgan reported second-quarter net income of $867 million, up from $715 million in 2025, with Adjusted EBITDA of $2,199 million, an increase of 12% year over year.
- Material agreement; New financial obligation · SEC 8-K
Kinder Morgan, Inc. entered into an amended revolving credit agreement on May 21, 2026, extending the maturity date from August 20, 2026, to May 21, 2031, and increasing the swingline loan limit from $50 million to $400 million.
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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by 2050
global LNG demand will grow to nearly 750 million tons per year
Source quote
“Shell projects that global LNG demand will grow to nearly 750 million tons per year by 2050, and that's an increase of 65 percent from 2025.”
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by 2035
peak demand for electricity in this country will grow by between 225 and 245 gigawatts
Source quote
“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.”
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in the years ahead
increasing our EBITDA and EPS
Source quote
“We were able to earn good returns from these investments, thus increasing our EBITDA and EPS in the years ahead.”
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For the full year
adjusted EPS growth to exceed budget by more than 13% and EBITDA to exceed budget by more than 6%
Source quote
“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%.”
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by 2035
North American natural gas demand to increase by approximately 46 BCF a day
Source quote
“Wood McKinsey projects North American natural gas demand to increase by approximately 46 BCF a day by 2035, given primarily by LNG exports and power generation demand.”