Key Highlights

  • Kinder Morgan (NYSE:KMI) traded near USD 34.10 on October 26, 2026, down 0.96%, with a market value near USD 75.93 billion, a trailing P/E of 21.17, EPS of USD 1.61 and a 3.43% yield.
  • Third-quarter 2026 net income was USD 764 million, up from USD 628 million, with adjusted EBITDA of USD 2.18 billion, up 9%, reported on October 21, 2026.
  • The project backlog rose USD 4.7 billion from the second quarter to USD 14.4 billion, of which USD 13.2 billion is natural gas, for Kinder Morgan (NYSE:KMI).
  • The company expects 2026 adjusted EBITDA more than 6% above its USD 8.6 billion budget and adjusted EPS more than 13% above its USD 1.36 budget.

What Changed on October 21

Kinder Morgan reported third-quarter earnings per share of USD 0.34, up 21%, and adjusted EPS of USD 0.35. Adjusted EBITDA was USD 2.18 billion, up 9% from the third quarter of 2025. Free cash flow was USD 545 million, which is USD 120 million negative after dividends. Chief executive Kim Dang said the quarter increased the expansion project backlog to USD 14.4 billion. Kinder Morgan (NYSE:KMI) declared a quarterly dividend of USD 0.2975 a share, USD 1.19 annualized, payable November 16, 2026 to holders of record on November 2. Net income attributable to Kinder Morgan was USD 764 million against USD 628 million, an increase of about 22%, simple arithmetic on two reported figures. Budgeted 2026 net income is USD 3.1 billion.

How Oil Fits In

Brent crude changed hands near USD 114.51 (about USD 114) and West Texas Intermediate near USD 101.04 (about USD 100) on October 26, 2026, but Kinder Morgan is a gas-weighted pipeline owner with mostly fee-based income, so its link to crude is indirect. Higher energy prices support producer activity and the case for new capacity, and the USD 13.2 billion of gas projects reflect power and LNG demand rather than oil. Management's budget assumed year-end net debt to adjusted EBITDA of 3.8 times; it now expects 3.6 times, which shows deleveraging alongside growth. Published market data showed the shares down 0.96% in the October 26 session. If adjusted EBITDA exceeds the USD 8.6 billion budget by more than 6%, as management expects, it would be above about USD 9.1 billion, simple arithmetic on the guidance.

Risks and What to Watch

Free cash flow after dividends was negative USD 120 million in the quarter because of heavy growth spending, and a USD 14.4 billion backlog requires execution on time and on budget. A trailing P/E of 21.17 leaves less room for delay than a pure value stock. If crude retreats on a Middle East settlement, the oil-up narrative fades but gas demand fundamentals remain. The next catalysts are the November 2 dividend record date, the full-year results in January and any announcement of new gas pipeline projects.

Where Things Stand

Backlog rose USD 4.7 billion because customers are signing for gas capacity tied to power, industrial and export demand, not because oil is expensive. Kinder Morgan (NYSE:KMI) is therefore an indirect, steady beneficiary of the energy-security backdrop, with guidance above budget and a falling leverage target. The shares are not cheap and cash flow after dividends was negative in the quarter, so execution and project timing are the key checks.