Kinder Morgan, Inc. (KMI) — Agentic Tribune

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Financial statements

data from SEC XBRL filings. Values are as-reported; restatements supersede originals.

From 10-Q filed 2026-04-24 (period ending 2026-03-31).

General and Basis of Presentation

The following discussion and analysis should be read in conjunction with our accompanying interim consolidated financial statements and related notes included elsewhere in this report, and in conjunction with (i) our consolidated financial statements and related notes in our 2025 Form 10-K; (ii) our management’s discussion and analysis of financial condition, and results of operations included in our 2025 Form 10-K; (iii) “Information Regarding Forward-Looking Statements” at the beginning of this report, and in our 2025 Form 10-K; and (iv) “Risk Factors” in Part I, Item 1A in our 2025 Form 10-K.

Acquisition

Following is a recently announced acquisition.

Event			Description			Business Segment
Monument Pipeline acquisition $505 million (Estimated to close second quarter 2026)			Natural gas pipeline system (Monument Pipeline) serving Houston, Texas and the surrounding metropolitan area which includes approximately 225 miles of pipelines and provides transportation and storage services to gas utilities, LNG shippers, and industrial customers.			Natural Gas Pipelines (Midstream)

2026 Dividends and Discretionary Capital

We expect to declare dividends of $1.19 per share for 2026, a 2% increase from the 2025 declared dividends of $1.17 per share. We expect to invest $3.9 billion in expansion projects, acquisitions, and contributions to joint ventures during 2026.

The expectations for 2026 discussed above involve risks, uncertainties, and assumptions, and are not guarantees of performance. Many of the factors that will determine these expectations are beyond our ability to control or predict, and because of these uncertainties, it is advisable not to put undue reliance on any forward-looking statement.

Results of Operations

Overview

As described in further detail below, our management evaluates our performance primarily using Net income attributable to Kinder Morgan, Inc. and Segment earnings before DD&A expenses (EBDA) (as presented in Note 7 “Reportable Segments”), along with the non-GAAP financial measures of Adjusted Net Income Attributable to Common Stock, in the aggregate and per share, Adjusted Segment EBDA, Adjusted Net Income Attributable to Kinder Morgan, Inc., Adjusted earnings before interest, income taxes, DD&A expenses (EBITDA), and Net Debt.

GAAP Financial Measures

Our Consolidated Earnings Results for the three months ended March 31, 2026 and 2025 present Net income attributable to Kinder Morgan, Inc., as prepared and presented in accordance with GAAP, and Segment EBDA, which is disclosed in Note 7 “Reportable Segments” pursuant to FASB ASC 280. The composition of Segment EBDA is not addressed nor prescribed by generally accepted accounting principles. Segment EBDA is a useful measure of our operating performance because it measures the operating results of our segments before DD&A and certain expenses that are generally not controllable by our business segment operating managers, such as general and administrative expenses and corporate charges, interest expense, net, and income taxes. Our general and administrative expenses and corporate charges include such items as unallocated employee benefits, insurance, rentals, unallocated litigation and environmental expenses, and shared corporate services including accounting, IT, human resources, and legal services.

Non-GAAP Financial Measures

Our non-GAAP financial measures described below should not be considered alternatives to GAAP Net income attributable to Kinder Morgan, Inc. or other GAAP measures and have important limitations as analytical tools. Our computations of these non-GAAP financial measures may differ from similarly titled measures used by others. You should not consider these non-GAAP financial measures in isolation or as substitutes for an analysis of our results as reported under GAAP. Management compensates for the limitations of our consolidated non-GAAP financial measures by reviewing our

comparable GAAP measures identified in the descriptions of consolidated non-GAAP measures below, understanding the differences between the measures and taking this information into account in its analysis and its decision-making processes.

Certain Items

Certain Items, as adjustments used to calculate our non-GAAP financial measures, are items that are required by GAAP to be reflected in Net income attributable to Kinder Morgan, Inc., but typically (i) do not have a cash impact (for example, unsettled commodity hedges and asset impairments), (ii) by their nature are separately identifiable from our normal business operations and in most cases are likely to occur only sporadically (for example, certain legal settlements, enactment of new tax legislation, and casualty losses), or (iii) align the timing of cash impacts from natural gas inventory hedges with the future associated physical withdrawals from inventory. (See the tables included in “—Non-GAAP Financial Measures—Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Kinder Morgan, Inc.,” “—Non-GAAP Financial Measures—Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Common Stock,” and “—Non-GAAP Financial Measures—Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted EBITDA” below). We also include adjustments related to joint ventures (see “—Amounts associated with Joint Ventures” below). The following table summarizes our Certain Items for the three months ended March 31, 2026 and 2025, which are also described in more detail in the footnotes to tables included in “—Segment Earnings Results” below.

	Three Months Ended March 31,
		2026		2025
		(In millions)
Certain Items
Risk management activities(a)(b)		$	113	$	84
Income tax Certain Items(c)		(26)		(35)
Total Certain Items(d)(e)		$	87	$	49

(a)Includes changes in fair value of unsettled derivatives, of which gains or losses are reflected within non-GAAP financial measures when realized.

(b)Includes natural gas inventory hedges of which gains or losses are reflected within non-GAAP financial measures when the associated physical gas is withdrawn from inventory.

(c)Represents the income tax provision on Certain Items plus discrete income tax items. Includes the impact of KMI’s income tax provision on Certain Items affecting earnings from equity investments and is separate from the related tax provision recognized at the investees by the joint ventures which are also taxable entities.

(d)2025 amount includes $2 million reported within “Earnings from equity investments” on the accompanying consolidated statement of income of “Risk management activities.”

(e)2025 amount includes $2 million reported within “Interest, net” on the accompanying consolidated statement of income of “Risk management activities.”

Adjusted Net Income Attributable to Kinder Morgan, Inc.

Adjusted Net Income Attributable to Kinder Morgan, Inc. is calculated by adjusting Net income attributable to Kinder Morgan, Inc. for Certain Items. Adjusted Net Income Attributable to Kinder Morgan, Inc. is used by us, investors, and other external users of our financial statements as a supplemental measure that provides decision-useful information regarding our period-over-period performance and ability to generate earnings that are core to our ongoing operations. We believe the GAAP measure most directly comparable to Adjusted Net Income Attributable to Kinder Morgan, Inc. is Net income attributable to Kinder Morgan, Inc. See “—Non-GAAP Financial Measures—Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Kinder Morgan, Inc.” below.

Adjusted Net Income Attributable to Common Stock and Adjusted EPS

Adjusted Net Income Attributable to Common Stock is calculated by adjusting Net income attributable to Kinder Morgan, Inc., the most comparable GAAP measure, for Certain Items, and further for net income allocated to participating securities and adjusted net income in excess of distributions for participating securities. We believe Adjusted Net Income Attributable to Common Stock allows for calculation of adjusted earnings per share (Adjusted EPS) on the most comparable basis with earnings per share, the most comparable GAAP measure to Adjusted EPS. Adjusted EPS is calculated as Adjusted Net Income Attributable to Common Stock divided by our weighted average shares outstanding. Adjusted EPS applies the same two-class method used in arriving at basic earnings per share. Adjusted EPS is used by us, investors, and other external users of our financial statements as a per-share supplemental measure that provides decision-useful information regarding our period-over-

period performance and ability to generate earnings that are core to our ongoing operations. See “—Non-GAAP Financial Measures—Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Common Stock” below.

Adjusted Segment EBDA

Adjusted Segment EBDA is calculated by adjusting segment earnings before DD&A, general and administrative expenses and corporate charges, interest expense, and income taxes (Segment EBDA) for Certain Items attributable to the segment. Adjusted Segment EBDA is used by management in its analysis of segment performance and management of our business. We believe Adjusted Segment EBDA is a useful performance metric because it provides management, investors, and other external users of our financial statements additional insight into performance trends across our business segments, our segments’ relative contributions to our consolidated performance, and the ability of our segments to generate earnings on an ongoing basis. Adjusted Segment EBDA is also used as a factor in determining compensation under our annual incentive compensation program for our business segment presidents and other business segment employees. We believe it is useful to investors because it is a measure that management uses to allocate resources to our segments and assess each segment’s performance. See “—Segment Earnings Results” below.

Adjusted EBITDA

Adjusted EBITDA is calculated by adjusting Net income attributable to Kinder Morgan, Inc. for Certain Items and further for DD&A, including the amortization of basis differences related to our joint ventures, income tax expense, and interest. We also include amounts from joint ventures for income taxes and DD&A (see “—Amounts associated with Joint Ventures” below). Adjusted EBITDA is used by management, investors, and other external users, in conjunction with our Net Debt (as described further below), to evaluate our leverage. Management and external users also use Adjusted EBITDA as an important metric to compare the valuations of companies across our industry. Our ratio of Net Debt-to-Adjusted EBITDA is used as a supplemental performance target for purposes of our annual incentive compensation program. We believe the GAAP measure most directly comparable to Adjusted EBITDA is Net income attributable to Kinder Morgan, Inc. See “—Non-GAAP Financial Measures—Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted EBITDA” below.

Amounts associated with Joint Ventures

Certain Items and Adjusted EBITDA reflect amounts from unconsolidated joint ventures and consolidated joint ventures utilizing the same recognition and measurement methods used to record “Earnings from equity investments” and “Noncontrolling interests,” respectively. The calculation of Adjusted EBITDA related to our unconsolidated and consolidated joint ventures includes the same adjustments (DD&A, including the amortization of basis differences related to joint ventures only, and income tax expense) with respect to the joint ventures as those included in the calculation of Adjusted EBITDA for our wholly-owned consolidated subsidiaries; further, we remove the portion of these adjustments attributable to non-controlling interests. (See “—Non-GAAP Financial Measures—Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted EBITDA” below.) Although these amounts related to our unconsolidated joint ventures are included in the calculation of Adjusted EBITDA, such inclusion should not be understood to imply that we have control over the operations and resulting revenues, expenses, or cash flows of such unconsolidated joint ventures.

Net Debt

Net Debt is calculated, based on amounts as of March 31, 2026, by subtracting the following amounts from our debt balance of $32,056 million: (i) cash and cash equivalents of $72 million; (ii) debt fair value adjustments of $151 million; and (iii) the foreign exchange impact on Euro-denominated bonds of $35 million for which we have entered into currency swaps to convert that debt to U.S. dollars. Net Debt, on its own and in conjunction with our Adjusted EBITDA as part of a ratio of Net Debt-to-Adjusted EBITDA, is a non-GAAP financial measure that is used by management, investors, and other external users of our financial information to evaluate our leverage. Our ratio of Net Debt-to-Adjusted EBITDA is also used as a supplemental performance target for purposes of our annual incentive compensation program. We believe the most comparable measure to Net Debt is total debt.

Consolidated Earnings Results

The following tables summarize the key components of our consolidated earnings results.

	Three Months Ended March 31,
	2026		2025		Earnings increase/(decrease)
	(In millions, except per share amounts and percentages)
Revenues	$	4,828	$	4,241	$	587	14	%
Operating Costs, Expenses and Other
Costs of sales (exclusive of items shown separately below)	(1,749)		(1,476)		(273)		(18)	%
Operations and maintenance	(711)		(711)		—		—	%
DD&A	(633)		(610)		(23)		(4)	%
General and administrative	(184)		(187)		3		2	%
Taxes, other than income taxes	(114)		(112)		(2)		(2)	%
Other income, net	7		—		7		—	%
Total Operating Costs, Expenses and Other	(3,384)		(3,096)		(288)		(9)	%
Operating Income	1,444		1,145		299		26	%
Other Income (Expense)
Earnings from equity investments	254		220		34		15	%
Interest, net	(430)		(451)		21		5	%
Other, net	20		15		5		33	%
Total Other Expense	(156)		(216)		60		28	%
Income Before Income Taxes	1,288		929		359		39	%
Income Tax Expense	(287)		(186)		(101)		(54)	%
Net Income	1,001		743		258		35	%
Net Income Attributable to Noncontrolling Interests	(25)		(26)		1		4	%
Net Income Attributable to Kinder Morgan, Inc.	$	976	$	717	$	259	36	%
Basic and diluted earnings per share	$	0.44	$	0.32	$	0.12	38	%
Basic and diluted weighted average shares outstanding	2,225		2,222		3		—	%
Declared dividends per share	$	0.2975	$	0.2925	$	0.005	2	%

Our consolidated revenues primarily consist of services and sales revenue. Our services revenues include fees for transportation and other midstream services that we perform. Fluctuations in our consolidated services revenue largely reflect changes in volumes and/or in the rates we charge. Our consolidated sales revenues include sales of natural gas (includes natural gas and RNG), products (includes NGL, crude oil, CO2, and transmix), and other (includes RINs). Our consolidated sales revenue will fluctuate with commodity prices and volumes, and the costs of sales associated with purchases will usually have a commensurate and offsetting impact, except for the CO2 segment, which produces, instead of purchases, the crude oil, CO2, and RINs it sells. Additionally, fluctuations in revenues and costs of sales may be further impacted by gains or losses from derivative contracts that we use to manage our commodity price risk.

Below is a discussion of significant changes in our Consolidated Earnings Results for the comparable three-month periods ended March 31, 2026 and 2025:

Revenues

Revenues increased $587 million in 2026 compared to 2025. The increase was primarily due to (i) an increase in natural gas sales of $460 million due to higher commodity prices and volumes; and (ii) an increase in services revenues of $157 million resulting from higher volumes, primarily driven by increased demand for services and expansion projects placed into service, and higher rates partially offset by a decrease in product sales of $34 million driven primarily by lower commodity prices. The

increase in sales revenues was partially offset by a corresponding increase in our costs of sales as described below under “Operating Costs, Expenses and Other—Costs of sales.”

Operating Costs, Expenses and Other

Costs of sales

Costs of sales increased $273 million in 2026 compared to 2025. The increase was primarily due to (i) an increase of $300 million of costs of sales for natural gas primarily due to higher volumes and commodity prices; and (ii) an increase of $20 million related to derivative contracts used to hedge commodity purchases. The increase was partially offset by a decrease of $69 million of costs of sales for products driven by lower commodity prices.

Other Income (Expense)

Interest, net

In the table above, we report our interest expense as “net,” meaning that we have subtracted interest income and capitalized interest from our total interest expense to arrive at one interest amount. Interest, net decreased $21 million in 2026 compared to 2025. The decrease was primarily due to lower interest rates associated with our fixed-to-variable interest rate swap agreements and lower average short-term debt balances partially offset by higher interest rates and average balances on our long-term debt.

Non-GAAP Financial Measures

Reconciliations from Net Income Attributable to Kinder Morgan, Inc.

	Three Months Ended March 31,
		2026		2025
		(In millions, except per share amounts)
Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Kinder Morgan, Inc.
Net income attributable to Kinder Morgan, Inc.		$	976	$	717
Certain Items(a)
Risk management activities		113		84
Income tax Certain Items		(26)		(35)
Total Certain Items		87		49
Adjusted Net Income Attributable to Kinder Morgan, Inc.		$	1,063	$	766
Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Common Stock
Net income attributable to Kinder Morgan, Inc.		$	976	$	717
Total Certain Items(b)		87		49
Net income allocated to participating securities and other(c)		(6)		(4)
Adjusted Net Income Attributable to Common Stock		$	1,057	$	762
Adjusted EPS		$	0.48	$	0.34
Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted EBITDA
Net income attributable to Kinder Morgan, Inc.		$	976	$	717
Total Certain Items(b)		87		49
DD&A		633		610
Income tax expense(d)		313		221
Interest, net(e)		430		449
Amounts associated with joint ventures
Unconsolidated joint venture DD&A(f)		91		100
Remove consolidated joint venture partners’ DD&A		(16)		(15)
Unconsolidated joint venture income tax expense(g)		25		26
Adjusted EBITDA		$	2,539	$	2,157

(a)See table included in “—Overview—Non-GAAP Financial Measures—Certain Items” above.

(b)See “—Non-GAAP Financial Measures—Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Kinder Morgan, Inc.” for a detailed listing.

(c)Other includes Adjusted net income in excess of distributions for participating securities of $1 million for the 2026 period.

(d)To avoid duplication, adjustments for income tax expense for 2026 and 2025 exclude $(26) million and $(35), respectively, which amounts are already included within “Certain Items.” See table included in “—Overview—Non-GAAP Financial Measures—Certain Items” above.

(e)To avoid duplication, adjustments for interest, net for 2025 exclude $2 million which amounts are already included within “Certain Items.” See table included in “—Overview—Non-GAAP Financial Measures—Certain Items,” above.

(f)Includes amortization of basis differences related to our joint ventures.

(g)Includes the tax provision on Certain Items recognized by the investees that are taxable entities associated with our Citrus, NGPL Holdings LLC, and Products (SE) Pipe Line equity investments. The impact of KMI’s income tax provision on Certain Items affecting earnings from equity investments is included within “Certain Items” above.

Below is a discussion of significant changes in our Adjusted Net Income Attributable to Kinder Morgan, Inc. and Adjusted EBITDA:

	Three Months Ended March 31,
		2026		2025
		(In millions)
Adjusted Net Income Attributable to Kinder Morgan, Inc.		$	1,063	$	766
Adjusted EBITDA		2,539		2,157
Change from prior period		Increase/(Decrease)
Adjusted Net Income Attributable to Kinder Morgan, Inc.		$	297
Adjusted EBITDA		$	382

Adjusted Net Income Attributable to Kinder Morgan, Inc. increased $297 million in 2026 compared to 2025. The increase resulted primarily from favorable earnings in our Natural Gas Pipelines, Terminals, and Products Pipelines business segments, which were also the primary drivers of the increase in Adjusted EBITDA of $382 million.

General and Administrative and Corporate Charges

	Three Months Ended March 31,
		2026		2025
		(In millions)
General and administrative		$	(184)	$	(187)
Corporate benefit (charges)		7		(5)
General and administrative and corporate charges		$	(177)	$	(192)
Change from prior period		Earnings increase/(decrease)
General and administrative		$	3
Corporate charges		12
Total		$	15

General and administrative expenses decreased $3 million, and corporate charges decreased $12 million in 2026 compared to 2025. The combined changes primarily include lower legal, corporate development and pension costs partially offset by higher benefit-related and labor costs.

Segment Earnings Results

Natural Gas Pipelines (including reconciliation of Segment EBDA to Adjusted Segment EBDA)

	Three Months Ended March 31,
		2026		2025
		(In millions, except operating statistics)
Revenues		$	3,296	$	2,754
Costs of sales		(1,431)		(1,145)
Other operating expenses(a)		(390)		(362)
Other income		1		1
Earnings from equity investments		225		196
Other, net		10		9
Segment EBDA		1,711		1,453
Certain Items:
Risk management activities		86		80
Certain Items(b)		86		80
Adjusted Segment EBDA		$	1,797	$	1,533
Change from prior period		Increase/(Decrease)
Segment EBDA		$	258
Adjusted Segment EBDA		$	264
Volumetric data(c)
Natural gas transport (BBtu/d)		49,475		45,978
Natural gas sales (BBtu/d)		3,893		2,598
Gathering (BBtu/d)		4,319

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Next expected filings

~2026-07-17 10-Q expected by 2026-08-05 (in 77 days)
~2026-10-23 10-Q expected by 2026-11-11 (in 175 days)
~2027-02-12 10-K expected by 2027-03-02 (in 287 days)
~2027-04-23 10-Q expected by 2027-05-12 (in 357 days)

Predicted from historical filing cadence; not an SEC commitment.

Recent SEC filings

2026-04-24 10-Q Quarterly Report
2026-04-22 8-K Earnings Release; Officer/Director Change; Financial Statements and Exhibits
2026-02-13 10-K Annual Report
2026-01-21 8-K Earnings Release; Financial Statements and Exhibits
2025-10-24 10-Q Quarterly Report
2025-10-22 8-K Earnings Release; Financial Statements and Exhibits
2025-07-18 10-Q Quarterly Report
2025-07-16 8-K Earnings Release; Financial Statements and Exhibits
2025-04-25 8-K Other Events; Financial Statements and Exhibits
2025-04-18 10-Q Quarterly Report
2025-04-16 8-K Earnings Release; Financial Statements and Exhibits
2025-02-27 8-K Officer/Director Change
2025-02-13 10-K Annual Report
2025-01-22 8-K Earnings Release; Financial Statements and Exhibits
2024-10-18 10-Q Quarterly Report

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