KMI earnings analysis
What we found in KMI's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Kinder Morgan delivered a strong Q2, with revenue up 11% to $4.477 billion, GAAP EPS up 22% to $0.39, and operating income up 17% to $1.346 billion. Growth was broad based and led by Natural Gas Pipelines and CO2, while six-month operating cash flow increased $640 million to $3.451 billion. The principal offsets are lower refined-products and crude delivery volumes, gross-margin compression from commodity pass-through costs, and a $1.491 billion widening in the working-capital deficit.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and operating income accelerated
- Q2 revenue increased 11% year over year to $4.477 billion from $4.042 billion. Operating income rose 17% to $1.346 billion, lifting operating margin to 30.06% from 28.50%.
- EPS and net income grew sharply
- GAAP diluted EPS rose $0.07, or 22%, to $0.39 from $0.32; adjusted EPS increased to $0.37 from $0.28. Net income attributable to KMI grew 21% to $867 million.
- Natural gas infrastructure led growth
- Natural Gas Pipelines Segment EBDA increased $84 million, or 6%, to $1.520 billion, driven by Midstream growth of $54 million, completed expansions, and higher demand. Natural-gas transport volumes rose to 47,886 BBtu/d from 44,818 BBtu/d.
- Broad-based segment earnings growth
- All four operating segments expanded EBDA: Products Pipelines rose $54 million to $343 million, Terminals rose $10 million to $310 million, and CO2 rose $76 million to $226 million.
- Operating cash flow funded investment
- Six-month operating cash flow increased $640 million to $3.451 billion. Less $1.786 billion of reported capital expenditures, implied free cash flow was approximately $1.665 billion, while capex represented 51.8% of operating cash flow.
- Growth investment and credit improvement
- KMI acquired the Monument Pipeline system for $503 million in May 2026, adding approximately 225 miles of Houston-area natural-gas pipelines. Moody's upgraded KMI's long-term rating to Baa1 with a stable outlook in March 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Products pipeline volumes declined
- Products Pipelines total delivery volumes declined 8% year over year to 2.044 million MBbl/d from 2.213 million MBbl/d, including a 16% decline in crude and condensate volumes to 421 MBbl/d from 503 MBbl/d.
- Working-capital deficit widened
- Working-capital deficit widened by $1.491 billion to $3.059 billion at June 30, 2026, driven principally by an $878 million increase in senior notes due within 12 months and a $325 million increase in commercial-paper borrowings.
- Near-term debt maturities increased
- Total debt was $32.248 billion at June 30, 2026, while short-term debt increased to $2.443 billion from $1.226 billion at year-end. Available revolver capacity was approximately $3.2 billion under the $3.5 billion facility.
- Commodity pass-through compressed gross margin
- Gross margin compressed to 68.62% from 70.04% as cost of sales increased 16% to $1.405 billion, faster than the 11% increase in revenue. Higher product commodity prices and volumes raised product cost of sales by $245 million.
- Elevated capital-investment execution needs
- Capital investments are expected to total $5.202 billion in 2026, including $4.091 billion of expansion investments. This is substantially above the $2.791 billion invested in the first six months and requires continued project execution and funding discipline.
- No material risk-factor updates
- Item 1A states there were no material changes to risk factors from the 2025 Form 10-K in this June 30, 2026 10-Q; consequently, the filing does not identify a newly added or materially revised risk factor.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.39
- Gross margin
- 68.62%
- Operating margin
- 30.06%
- Segment
- Natural Gas Pipelines: $2.671 billion revenue; $1.520 billion Segment EBDA (+$84 million YoY)
- Segment
- Products Pipelines: $902 million revenue; $343 million Segment EBDA (+$54 million YoY)
- Segment
- Terminals: $558 million revenue; $310 million Segment EBDA (+$10 million YoY)
- Segment
- CO2: $355 million revenue; $226 million Segment EBDA (+$76 million YoY)
What they said about what is next.
The 10-Q provides no numeric revenue or EPS outlook. Management expects 2026 dividends of $1.19 per share, up 2% from $1.17 in 2025, and expects to invest $4.1 billion in expansion projects, acquisitions, and joint-venture contributions during 2026.
The filing reads better than the one before it.
What came before.
- 10-Q · April 24, 2026
- Kinder Morgan reported strong Q1 2026 results: revenue of $4,828 million (up $587 million or 14% vs. Q1 2025) and GAAP diluted EPS of $0.44 (up $0.12 vs. $0.32). Adjusted results also improved: Adjusted EPS was $0.48…
- 10-K · February 13, 2026
- Kinder Morgan’s 2025 10-K emphasizes scale and fee-based cash flows across ~78,000 miles of pipelines, 136 terminals, ~706 Bcf of working gas storage and RNG capacity of ~6.9 Bcf/year, while advancing a multi‑year…
- 10-K · February 13, 2025
- Kinder Morgan’s 2024 10-K emphasizes scale and contracted cash flows: as of December 31, 2024 the company owned or operated ~79,000 miles of pipelines, 139 terminals, ~700 Bcf of working natural gas storage and RNG…
- 10-Q · October 18, 2024
- Kinder Morgan reported total revenue of $3,699 million and operating income of $1,015 million for Q3 2024. Revenue declined versus Q3 2023 ($3,907 million) by $208 million (-5.3%), while net income attributable to…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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