Kinder Morgan, the Houston-based pipeline operator, announced strong financial results for the fourth quarter, exceeding Wall Street forecasts. The company attributes this performance to increased volumes of natural gas transported via its extensive pipeline network and ongoing infrastructure expansion.
During the quarter ending December 31, Kinder Morgan moved approximately 48.4 trillion British thermal units (Btu) of natural gas daily, a notable increase from 44.5 trillion Btu per day during the same period last year. This growth was supported by new natural gas expansion projects and the integration of a natural gas gathering and processing system acquired from Outrigger Energy. The company also cited robust demand for associated services as a contributing factor.
Chief Financial Officer David Michels highlighted that Kinder Morgan benefits from the dynamic developments in the U.S. energy sector, including strong production within the Permian Basin, record liquefied natural gas (LNG) exports, and expanding electricity needs driven in part by artificial intelligence infrastructure. Such factors underpin the company’s positive outlook on sustained long-term natural gas demand.
Kinder Morgan's project backlog has risen to $10 billion, up from $9.3 billion in the previous quarter, reflecting continued investments to meet energy market demands. The firm also intends to commence the Hiland Express pipeline conversion project by the end of the first quarter of this year, further expanding its capacity and infrastructure capabilities.
Financially, the pipeline operator posted an adjusted earnings per share of 39 cents for the fourth quarter, surpassing analyst estimates of 37 cents per share. Despite the increase in natural gas volumes, total delivery volumes across all products, including refined fuels such as diesel and jet fuel, declined to 2,035 thousand barrels per day from 2,105 thousand barrels per day recorded a year earlier.
Following the earnings announcement, Kinder Morgan’s shares climbed 1.4%, trading at $28.99 in extended trading sessions.