Kinder Morgan reported record financial results for the fourth quarter and full year 2025, underscoring the growing role of U.S. natural gas infrastructure in meeting domestic energy 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 over year to $866 million. Adjusted EBITDA reached $2.27 billion for the quarter, an increase of 10%, reflecting record performance in the company’s Natural Gas Pipelines segment.
Earnings per share rose sharply, with reported earnings per share up 50% year over year to $0.45 and adjusted earnings per share up 22% to $0.39. For the full year, net income attributable to Kinder Morgan increased 17% compared to 2024, while adjusted EPS and adjusted EBITDA grew 13% and 6%, respectively.
In addition to the results, Kinder Morgan’s board of directors approved a quarterly dividend of $0.2925 per share, or $1.17 annualized, up 2% from the prior year. The company expects to increase dividends again in 2026 to $1.19 per share.
Management attributed the strong performance primarily to its natural gas business, which benefited from higher transportation and gathering volumes, particularly linked to LNG exports. Natural gas transportation volumes increased 9% year over year in the fourth quarter, driven by higher deliveries to LNG facilities on the Tennessee Gas Pipeline, while gathering volumes increased 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 its fourth year.
Looking ahead, the company expects total natural gas demand in the United States to grow 17% by 2030, led by LNG exports and power generation. Kinder Morgan has long-term contracts to move 8 billion cubic feet per day of gas to LNG facilities, a figure expected to increase to 12 Bcf/d by the end of 2028. It is also evaluating more than 10 Bcf/d of potential opportunities related to gas-fired power generation, including demand from data centers.
At the end of the year, Kinder Morgan’s project portfolio amounted to $10 billion, of which approximately 90% were tied to natural gas projects and almost 60% supported power generation. Excluding certain types of projects, the company expects its remaining order book to generate a first full year EBITDA multiple of approximately 5.6 times.
The company ended the quarter with a net debt to adjusted EBITDA ratio of 3.8 times, in line with its long-term leverage goals. Cash flow from operations reached $1.7 billion in the fourth quarter, while free cash flow after capital expenditures increased 18% to $900 million.