Kinder Morgan Q2 adjusted EBITDA rises 12%

Kinder Morgan reported a record second quarter for 2026, posting adjusted EBITDA of $2.199 billion, a 12% increase from the prior year and above analyst consensus of $2.081 billion. Management raised full-year guidance, projecting adjusted EBITDA to exceed the company’s original 2026 budgets by more than 5%, roughly $430 million.

The company recorded net income of $867 million for the quarter and generated $2 billion in cash from operations. Free cash flow after capital expenditures was about $1 billion. The board approved a cash dividend of $0.2975 per share, a 2% increase versus the prior year.

Kinder Morgan’s official project backlog stood at $9.6 billion, with 92% of projects tied to natural gas and more than 60% focused on power generation and local distribution. Management added roughly $200 million of new projects during the quarter and placed about $660 million of expansion projects into service. Excluding roughly $1.1 billion of CO2 enhanced oil recovery and gathering and processing projects, the backlog implies a project EBITDA multiple of 5.6 times. The company reported a shadow backlog exceeding $10 billion and noted the board gave contingent approval for nearly $400 million of projects not yet in the official backlog. Over the past 12 months Kinder Morgan sanctioned about $2 billion of projects and is targeting at least $1 billion of new additions in the second half of the year.

The company said its three largest natural gas expansion projects remain on schedule and on budget. Mississippi Crossing and South System Expansion 4 received final Federal Energy Regulatory Commission environmental impact statements in June and are expected to receive federal certificates by the end of July. The Trident pipeline is roughly 60% complete. A final investment decision on the Western Gateway system with Phillips 66 is expected within about two months. During the quarter Kinder Morgan completed a $500 million acquisition of the Monument pipeline.

Kinder Morgan reported a net debt-to-adjusted EBITDA ratio of 3.6 times and expects to keep leverage near the low end of its targeted range through year-end. The company cited stronger U.S. natural gas consumption, expanded pipeline capacity and elevated LNG export activity as drivers of demand for midstream infrastructure. Management said it will continue to advance sanctioned projects and evaluate additional opportunities that support gas-fired power and local distribution capacity.