Kinder Morgan Q3 revenue beats estimates driven by Natural Gas Pipelines segment 

By Reuters News


Overview

  • US energy infrastructure firm's Q3 revenue grew and beat analyst expectations, adjusted EPS also beat

  • Company expanded project backlog to $14.4 bln, largest natural gas backlog in its history

  • Board approved a 2% dividend increase for Q3


Outlook

  • Kinder Morgan expects 2026 Adjusted EPS to be $1.36

  • Company expects 2026 Adjusted EBITDA of $8.6 bln

  • Kinder Morgan expects to end 2026 with Net Debt-to-Adjusted EBITDA of 3.6 times


Result Drivers

  • NATURAL GAS PIPELINES - Higher contributions from El Paso Natural Gas Pipeline, KinderHawk gathering system, Tennessee Gas Pipeline, and Texas Intrastate system drove segment growth

  • VOLUME INCREASES - Natural gas transport volumes rose 3% and gathering volumes rose 14% year-over-year, mainly due to LNG deliveries and higher demand in Texas

  • TERMINALS AND CO2 SEGMENTS - Earnings in Terminals and CO2 segments increased, supported by expansion projects, higher commodity prices, and increased volumes


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$4.53 bln

$4.38 bln (9 Analysts)

Q3 Adjusted EPS

Beat

$0.35

$0.32 (16 Analysts)

Q3 EPS

$0.34

Q3 Adjusted Net Income Attributable

$792 mln

Q3 Dividend

$0.30


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the oil & gas transportation services peer group is "buy"

  • Wall Street's median 12-month price target for Kinder Morgan, Inc. is $36.00, about 7.2% above its October 20 closing price of $33.57

  • The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 21 three months ago


Reuters Recommended Reads

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  • Oct 20 - Halliburton Q3 revenue, profit beat estimates on higher drilling services

  • Oct 20 - Enagas on track to meet earnings target after Q3 results


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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