U.S. pipeline operator Kinder Morgan reported first-quarter adjusted profit that exceeded analyst expectations, with higher natural gas throughput across its network a key contributor to the better-than-expected result.
The Houston-based company said it moved about 49,475 billion British thermal units (Btu) of natural gas per day during the January-March quarter, up from 45,978 billion Btu per day a year earlier. That increase in transported volumes came as U.S. pipeline firms benefited from rising oil and gas production in the Permian Basin and expanding demand for U.S. natural gas.
Management pointed to several demand drivers supporting the market, including record liquefied natural gas (LNG) exports and greater electricity consumption tied to high-power operations such as AI-driven facilities, cryptocurrency mining and data centers. U.S. natural gas futures averaged $9.54 per million Btu in the quarter, a 9.5% increase from the prior year, a level that reflected a surge in spot prices during Winter Storm Fern early in the period.
Executive Chairman Richard Kinder characterized the quarter as one of heightened geopolitical uncertainty, noting that conflict in the Middle East had joined the ongoing war in Ukraine as sources of commodity price volatility. He said those global tensions underscore the case for securing LNG supplies from the United States and that such dynamics can drive incremental demand for the services Kinder Morgan provides to shippers. He also described projections for domestic natural gas demand growth - especially in the power sector - as robust.
For the three months ended March 31, the company reported adjusted earnings of $0.48 per share, compared with the LSEG-compiled analyst estimate of $0.40 per share. At the same time, total delivery volumes that include refined products such as jet fuel and diesel declined to 1,965 thousand barrels per day during the quarter, down from 2,047 thousand barrels per day a year earlier.
Looking ahead, Kinder Morgan issued guidance that included a 2026 net income attributable to the company forecast to be flat at $3.1 billion. The company expects adjusted earnings per share to increase 5% to $1.36 and projected adjusted EBITDA of $8.6 billion for the year. Kinder Morgan operates roughly 79,000 miles of pipelines across North America.
Context and implications
The quarter's results reflected a combination of stronger physical throughput and favorable commodity price dynamics during the period. While natural gas volumes rose, the company also recorded a decline in total delivery volumes that include liquid refined products. Management's guidance provides explicit targets for net income, adjusted EPS and adjusted EBITDA, while highlighting geopolitical and demand-side factors that support continued utilization of U.S. gas infrastructure.