Kinder Morgan’s Project Backlog Reaches $14.4 Billion After $4.7 Billion Quarterly Increase
Key Facts
Kinder Morgan reported net income attributable to the company of $764 million in the third quarter of 2026, compared with $628 million in the same period of 2025. Adjusted earnings per share were $0.35, up 21% year over year, according to the earnings release. Adjusted EBITDA was also $2.18 billion, up 9% from the third quarter of the previous year. The results coincided with the company’s project backlog expanding to $14.4 billion at quarter-end. Kinder Morgan said the backlog increased by $4.7 billion compared with the second quarter of 2026.
Third-quarter additions to the project backlog totaled $5.4 billion, after accounting for $700 million in projects that entered service during the period. The reported figure therefore reflects net additions after completed projects were transferred to the operating stage. The company said more than 75% of the total backlog is tied to projects supporting power generation and demand from local gas distribution companies. That puts a large share of its expansion plans toward meeting energy and distribution needs in the U.S. market. The size of the backlog does not mean all projects will enter service at once, as new projects are scheduled through 2030.
The company attributed strength in its natural gas business to higher LNG exports, increased electricity demand and industrial expansion. Natural gas transportation volumes rose 3% in the third quarter compared with the same period of 2025. Kinder Morgan said the increase came primarily from LNG deliveries through the TGP pipeline, along with higher demand for services on its system in Texas. These factors link transportation growth to demand from exports, domestic consumption and industry. The operating performance came alongside an increase in adjusted EBITDA to $2.18 billion.
Among the additions to its expansion plans, the South East Connector reached a final investment decision, backed by long-term, take-or-pay transportation contracts. The project is designed to transport up to 2.6 billion cubic feet of gas per day across about 470 miles of new pipelines. The company expects it to begin entering service in phases starting in the fourth quarter of 2030, subject to approvals. The Permian Link project also reached a final investment decision. Its expected total cost is about $4.2 billion, including Kinder Morgan’s share of about $1.6 billion, with design capacity of nearly 2.8 billion cubic feet per day and service expected to begin in the third quarter of 2030, subject to approvals.
On debt, net debt to adjusted EBITDA stood at 3.5 times on September 30, 2026, compared with 3.8 times at the end of 2025. The company expects to finish 2026 at 3.6 times, or 0.2 times below budget. The update provides another indication of the company’s financial position alongside the expansion of its project backlog. The board also approved a quarterly cash dividend of $0.2975 per share, up 2% from the third quarter of 2025. The dividend is payable to shareholders of record at the close of November 2, 2026, and will be paid on November 16, 2026.
In trading following the results, Kinder Morgan shares closed at $34.43 on October 23, 2026, up 2.15% during the session, according to Google Finance data. The stock move followed the third-quarter earnings announcement and the company’s update on its expansion projects. The results combined year-over-year growth in net income and adjusted earnings per share with increased gas transportation activity and a larger project backlog. The new pipeline projects remain tied to future service dates in 2030 and receipt of approvals. The two dividend dates in November are among the dates specified for shareholders in the company’s announcement.