Energy infrastructure company Kinder Morgan (NYSE:KMI) reported Q3 2026 results topping the market’s revenue expectations , with sales up 9.3% year on year to $4.53 billion. Its non-GAAP profit of $0.35 per share was 6.3% above analysts’ consensus estimates.
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Kinder Morgan (KMI) Q3 2026 highlights:
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Revenue: $4.53 billion vs analyst estimates of $3.73 billion (9.3% year-on-year growth, 21.5% beat)
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Adjusted EPS: $0.35 vs analyst estimates of $0.33 (6.3% beat)
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Operating Margin: 25.6%, in line with the same quarter last year
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Market Capitalization: $75.64 billion
StockStory’s take
Kinder Morgan delivered a third quarter that surpassed market expectations, with management attributing the outperformance to broad-based strength across all business segments and notable project execution. CEO Kim Dang credited the company’s expanding project backlog and solid contributions from natural gas pipelines, especially increased volumes on the KinderHawk system in the Haynesville region. Management also highlighted robust demand for natural gas, with Dang stating, “Our system remains highly utilized,” and described the quarter as one featuring substantial new project additions that meaningfully extend the company’s growth prospects.
Looking ahead, Kinder Morgan’s forward guidance is anchored by the visibility provided from its record project backlog, particularly large-scale natural gas infrastructure projects like the Southeast Connector and Permian Link. Management emphasized that future growth will be driven by long-term contracts with creditworthy customers and continued expansion opportunities tied to rising LNG exports and power generation demand. Dang noted, “These projects extend our visible growth runway,” while CFO David Michels cautioned that some one-time benefits seen in 2026 may not recur, signaling a shift toward more normalized growth rates in subsequent years.
Key insights from management’s remarks
Management attributed the strong Q3 performance to higher natural gas transport and gathering volumes, successful project additions, and favorable market conditions across terminal and CO2 segments.
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Natural gas network utilization: Transport volumes rose, led by a 14% year-over-year increase in gathering volumes on the KinderHawk system in Haynesville. Management attributed these gains to higher LNG feed gas deliveries and persistent demand across the network.
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Project backlog expansion: The addition of $5.4 billion in new projects, including the Southeast Connector and Permian Link joint ventures, pushed the project backlog to a record $14.4 billion. These projects are supported by 20-year take-or-pay contracts, providing long-term revenue visibility.
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Refined products and crude volumes: Refined product volumes declined by 3% and crude condensate volumes by 11%, primarily due to the removal of Double H from service and fewer well connects. However, the Western Gateway project was sanctioned to address future clean product delivery needs in the Southwest.
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Terminal segment momentum: Liquid tank lease utilization at key hubs remained above 90%. Export terminal volumes on the Houston Ship Channel increased 39% year-over-year, benefiting from favorable commodity markets and global supply tightness.
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CO2 and renewable natural gas growth: The CO2 segment saw 8% higher oil production and an 18% increase in renewable natural gas volumes, reflecting improved operations and ongoing optimization efforts in these businesses.
