Kinder Morgan reported record fourth-quarter and full-year financial results for 2025, underscoring the growing role of U.S. natural gas infrastructure in meeting domestic power demand and global LNG export needs.
The Houston-based midstream operator posted fourth-quarter net income attributable to shareholders of $996 million, up from $667 million a year earlier, while adjusted net income rose 22% year-on-year to $866 million. Adjusted EBITDA reached $2.27 billion in the quarter, a 10% increase, reflecting record performance in the company’s Natural Gas Pipelines segment.
Earnings per share climbed sharply, with reported EPS rising 50% year-on-year to $0.45 and adjusted EPS up 22% to $0.39. For the full year, net income attributable to Kinder Morgan increased 17% compared with 2024, while adjusted EPS and adjusted EBITDA grew 13% and 6%, respectively.
Alongside the results, Kinder Morgan’s board approved a quarterly dividend of $0.2925 per share, or $1.17 annualized, marking a 2% increase from the prior year. The company expects to raise dividends again in 2026 to $1.19 per share.
Management attributed the strong performance primarily to its natural gas business, which benefited from higher transport and gathering volumes, particularly tied to LNG exports. Natural gas transport volumes rose 9% year-on-year in the fourth quarter, driven by increased deliveries to LNG facilities on the Tennessee Gas Pipeline, while gathering volumes jumped 19%.
Kinder Morgan said it now delivers more than 40% of the natural gas feedstock consumed by U.S. LNG export terminals, highlighting its central role in Europe’s energy security as the war in Ukraine enters a fourth year.
Looking ahead, the company expects total U.S. natural gas demand to grow 17% by 2030, led by LNG exports and power generation. Kinder Morgan has long-term contracts in place to move 8 billion cubic feet per day of gas to LNG facilities, a figure projected to rise to 12 Bcf/d by the end of 2028. It is also evaluating more than 10 Bcf/d of potential opportunities linked to gas-fired power generation, including demand from data centers.
At year-end, Kinder Morgan’s project backlog stood at $10 billion, with roughly 90% tied to natural gas projects and nearly 60% supporting power generation. Excluding certain project types, the company expects its remaining backlog to generate a first-full-year EBITDA multiple of about 5.6x.
The company ended the quarter with a net debt-to-adjusted EBITDA ratio of 3.8x, in line with its long-term leverage targets. Cash flow from operations reached $1.7 billion in the fourth quarter, while free cash flow after capital expenditures rose 18% to $0.9 billion.
