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