Kinder Morgan Inc (NYSE:KMI) released its financial outcomes for the fourth quarter following the market's close on Wednesday, exhibiting a performance that outpaced analyst expectations on several fronts. The company reported revenue of $4.51 billion for the quarter, exceeding the consensus estimate of $4.31 billion, as captured by Benzinga Pro data. This increase underlines the company's ability to capitalize on prevailing market conditions and operational efficiencies within its energy infrastructure portfolio.
Adjusted earnings per share (EPS) for the period came in at 39 cents, surpassing the analyst forecast of 37 cents. This beat on the bottom line contributed to investor optimism, reflected in positive share price movement during after-hours trading. Kinder Morgan's net income attributable to the company expanded substantially to $996 million from $667 million in the equivalent quarter of the previous year.
Additionally, adjusted EBITDA rose 10% year-over-year, reaching approximately $2.27 billion. This figure illustrates robust operational cash flow generation, emphasizing the effectiveness of Kinder Morgan's strategic focus on midstream energy assets.
A critical highlight from the report was the company’s backlog, valued at $10 billion. This backlog primarily comprises projects related to natural gas, accounting for roughly 90% of the total project pipeline. This concentration underscores the ongoing demand strength within the natural gas sector and aligns with Kinder Morgan’s strategy to secure fee-based, long-term contracts with dependable counterparties.
Richard Kinder, the company’s executive chairman, articulated satisfaction with the firm’s ability to maintain leadership within its sector by adhering to its foundational vision. He emphasized the company's focus on asset ownership anchored by long-term, take-or-pay contracts tied to creditworthy customers, suggesting confidence in continued growth and value creation over coming years.
On the shareholder returns front, Kinder Morgan’s board authorized a cash dividend increase to $0.2925 per share for the fourth quarter, marking a 2% rise compared with the same period last year. This dividend is scheduled for payment on February 17 to shareholders recorded as of February 2. The company indicated an expectation to declare dividends totaling $1.19 per share throughout 2026, signaling a commitment to sustained shareholder distributions.
Despite the positive quarterly results, Kinder Morgan slightly adjusted its full-year 2026 adjusted earnings outlook downward. The guidance was revised from $1.37 to $1.36 per share, modestly underperforming market estimates pegged at $1.37 per share. Nevertheless, this projected EPS level represents a 5% increase from 2025 results, indicating moderate growth expectations.
The company anticipates net income attributable to Kinder Morgan of approximately $3.1 billion for 2026, a figure unchanged from the prior year due to gains realized on an asset sale. When excluding specific items, adjusted net income is forecasted to rise 5% year-over-year.
Management plans to elaborate on these quarterly results and the accompanying outlook in a conference call scheduled for 4:30 p.m. Eastern Time, providing further insights to investors and analysts.
Following the earnings announcement, Kinder Morgan's stock displayed positive momentum during extended trading hours, advancing by approximately 0.84% to $28.82 according to Benzinga Pro data.