Key Takeaways for Kinder Morgan Stock as of July 2026
- Revenue of $4,477 million came in 11% higher than a year ago, while adjusted EBITDA reached $2,199 million and adjusted EPS rose 32% to $0.37.
- Raising its full-year outlook for the second straight quarter, Kinder Morgan now expects adjusted EBITDA at least 5% above its 2026 budget and adjusted EPS at least 12% above budget, worth $430 million of incremental EBITDA.
- With leverage already at 3.6x EBITDA, Chairman Richard Kinder framed the funding math bluntly on the call: “We can fund these projects almost completely with our internally generated cash flow while still continuing to pay a solid and growing dividend and maintaining a debt-to-EBITDA ratio at the lower end of our targeted range.”
Kinder Morgan stock now carries a raised guide and a $9.6 billion backlog. Check the full growth math on TIKR for free →
KMI Raises Guidance Again as Natural Gas Demand Fuels a $9.6 Billion Backlog
Kinder Morgan (KMI) closed a record second quarter, and management used the July 22 call to raise full-year guidance for the second time in 2026. Revenue reached $4,477 million, up 10.76% from a year ago, while adjusted EBITDA climbed to $2,199 million, an 11.51% gain that stretched the EBITDA margin to 49.12%, up 33 basis points year over year. Every business segment contributed to that growth, from natural gas transport to the CO2 unit’s oil production.
That breadth showed up further down the income statement. Adjusted EPS jumped 32% to $0.37, and GAAP net income attributable to Kinder Morgan hit $867 million, pushing GAAP EPS to $0.39, a 22% increase. Operating cash flow rose 18.86% to $1,960 million even as capital spending climbed 52% to $982 million, and the company still generated $978 million of free cash flow for the quarter.
Management responded to that strength by lifting the outlook again. Kinder Morgan now expects full-year adjusted EBITDA at least 5% above its 2026 budget and adjusted EPS at least 12% above budget, a swing CFO David Michels pegged at more than $430 million of incremental EBITDA.
The growth backlog told a messier story. Sanctioned projects fell from $10.1 billion to $9.6 billion in the quarter as Kinder Morgan placed more than $650 million of work into service, only partly replaced by $200 million of new additions. But the board contingently approved almost $400 million of additional projects still tied up in contract talks, and executives expect at least $1 billion more sanctioned in the back half of the year. Mississippi Crossing and South System Expansion 4 are both nearing their FERC certificates, Trident is 60% complete, and Permian Link and the Western Gateway joint venture with Phillips 66 are moving toward final investment decisions. Investors weighing that $9.6 billion figure against the fuller opportunity set can see the math laid out in Kinder Morgan Stock Has $20B in Pipeline Expansion Ahead, which breaks down utilization above 90% across KMI’s five largest gas lines and the $10 billion in identified projects still sitting beyond the approved backlog.
Funding all of it without stretching the balance sheet is the real test. Executive Chairman Richard Kinder addressed that directly on the Q2 2026 earnings call: “We can fund these projects almost completely with our internally generated cash flow while still continuing to pay a solid and growing dividend and maintaining a debt-to-EBITDA ratio at the lower end of our targeted range.” Net debt to EBITDA sits at 3.6x, down from 3.8x at the start of the year, even after the $500 million Monument acquisition and a step-up in growth spending.
Kinder Morgan stock trades on that combination: rising guidance, falling leverage, and a shadow backlog management says could still grow past $10 billion.
Kinder Morgan’s shadow backlog could push past $10 billion this year. Track the pipeline buildout and backlog trends on TIKR for free →
TIKR Values KMI Stock at $40, Betting on the Natural Gas Buildout
TIKR’s mid-case model values Kinder Morgan at $40 by December 2030, implying a 22% total return from the current price of $32, or 5% annualized over 4.4 years.
That return profile positions Kinder Morgan stock as a lower-volatility, income-oriented holding within the energy infrastructure space, closer to a utility-like compounder than a growth bet.
The target rests on the same growth engine already showing up in the numbers: a backlog approaching $10 billion, three major gas pipeline expansions moving toward completion, and a leverage ratio low enough to keep funding new projects with internally generated cash. That combination is what let management raise guidance twice this year without touching the dividend or the balance sheet.
TIKR’s model puts Kinder Morgan stock at $40, a 22% return by 2030. Compare that target against the growth pipeline on TIKR for free →
Should You Invest in Kinder Morgan, Inc.?e
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
