Q2 2026 Kinder Morgan Inc Earnings Call Transcript
Key Points
- Kinder Morgan Inc (KMI) reported a strong second quarter with both EBITDA and EPS exceeding prior year and budget expectations for 2026.
- The company is experiencing positive growth in natural gas demand, driven by LNG export volumes and gas for electric generation.
- KMI's financial position is robust, with the ability to fund new projects using internally generated cash flow while maintaining a low debt-to-EBITDA ratio.
- The company's backlog remains strong, with significant projects underway and more expected to be added, indicating a healthy pipeline of future growth opportunities.
- KMI's balance sheet ended the quarter with a leverage ratio of 3.6 times, providing flexibility to fund growth opportunities while maintaining disciplined capital allocation.
- Refined product volumes in the Products Pipeline segment were down 5% compared to the second quarter of 2025.
- Crude and condensate volumes decreased by 16% in the quarter, primarily due to the removal of Double H from service for NGL conversion.
- The process of finalizing partnership agreements for the Western Gateway project has taken longer than anticipated.
- The temporary Jones Act waiver has added market uncertainty, although KMI's tanker fleet remains well contracted.
- There are pressures on timelines for obtaining compression for future pipeline projects, which could impact project economics.
Welcome to Kinder Morgan's second quarter 2026 earnings results conference call. Today's conference is being recorded.
I will now turn the call over to Mr. Rich Kinder, Executive Chairman of Kinder Morgan.
Thank you, Ted. Before we begin, as we usually do, I'd like to remind you that KMI's earnings release today and this call include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities and Exchange Act of 1934, as well as certain non-GAAP financial measures. Before making any investment decisions, we strongly encourage you to read our full disclosures on forward-looking statements and use of non-GAAP financial measures set forth at the end of our earnings release as well as review our latest filings with the SEC for important material assumptions, expectations and risk factors that may cause actual results to differ materially from those anticipated and described in such forward-looking statements.
My remarks
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