KINDER MORGAN, INC. Q1 FY26 Results

The geopolitical landscape became even more turbulent this quarter, with conflict in the Middle East joining the ongoing war in Ukraine as a source of significant commodity price volatility. As a fee-based midstream energy company with highly creditworthy shippers, we are largely insulated from that volatility. Longer-term, these global conflicts highlight the benefits of securing liquified natural gas (LNG) supplies from the United States, driving incremental demand for the services we provide those shippers. And apart from geopolitics, projections for domestic natural gas demand growth, particularly in the power sector, continue to be robust.

We believe we will continue to thrive as a company by remaining disciplined and committed to our original strategy—owning high‑quality midstream energy assets supported by long‑term, take‑or‑pay, fee‑based contracts with creditworthy customers. This foundation gives us confidence in our ability to continue delivering consistent cash flows, attractive growth, and long‑term shareholder value for many years to come.

For the quarter all of our business segments were well up, excluding Certain Items, versus the first quarter of 2025. Our Natural Gas Pipelines segment drove the bulk of that outperformance, benefiting from winter storm Fern and extended cold weather. The company delivered first quarter 2026 net income attributable to KMI of $976 million, 36% higher than the first quarter of 2025 — while Adjusted EPS and Adjusted EBITDA were 41% and 18% higher, respectively, than the first quarter of 2025

In the first quarter, we continued to internally fund high-quality capital projects while generating cash flow from operations of $1.5 billion and free cash flow (FCF) after capital expenditures of $0.7 billion, up 28% and 73%, respectively, from the prior year period. Our balance sheet remains healthy, as we ended the quarter with a Net Debt-to-Adjusted EBITDA ratio of 3.6 times.

We were also pleased this quarter to receive an upgrade from Moody’s, which joined the other two rating agencies in classifying the company as the equivalent of BBB+. This is a recognition of the work so many in the company have done over the years to achieve robust earnings, strong projected growth, and a very healthy balance sheet

While our expansion projects and backlog receive quite a bit of attention, and deservedly so, this quarter’s outperformance is also a testament to the strength of our base business, particularly natural gas. With more than 65,000 miles of natural gas pipelines connected to all major basins and demand centers, along with more than 700 billion cubic feet (Bcf) of working gas storage capacity, we are well poised to support demand growth across the country. Indeed, the growth in utilization of our five major natural gas pipeline systems has been astounding. In 2016, the annual average utilization of those systems was 74%. In 2025, utilization reached 90%

Reflecting that high utilization and the robust demand we see coming, our project backlog at the end of the first quarter of 2026 was $10.1 billion, up $145 million from the fourth quarter of 2025, as we added $375 million of projects while placing $230 million of projects in service. Natural gas projects account for approximately 92% of our project backlog and nearly 60% of the backlog is associated with projects supporting power generation and local distribution company demand. Even beyond the backlog, we continue to see strong interest from our customers in developing additional natural gas infrastructure.

In calculating backlog Project EBITDA multiples, we exclude both the capital and EBITDA from our CO2 enhanced oil recovery projects and our gathering and processing projects, where first-full-year multiples are more favorable, but the earnings are more uneven than with our other business segments. We expect the remaining $8.9 billion of projects in the backlog, when realized, to generate an aggregate first-full-year Project EBITDA multiple of approximately 5.6 times

The Natural Gas Pipelines business segment’s financial performance was up in the first quarter of 2026 relative to the first quarter of 2025, on higher contributions from our Texas Intrastate system, largely due to cold winter weather.

Natural gas transport volumes were up 8% compared to the first quarter of 2025, primarily due to LNG deliveries on Tennessee Gas Pipeline (TGP). Natural gas gathering volumes were up 15% from the first quarter of 2025 across our assets, with our KinderHawk system seeing the largest growth.

Contributions from the Products Pipelines business segment were up compared to the first quarter of 2025 due to higher commodity prices benefiting our transmix business, the recovery of retroactive rate increases following a favorable court decision, and the impact in the first quarter of 2025 of a turnaround at our condensate processing facility.

Total refined products volumes were down 2% compared to the first quarter of 2025. Crude and condensate volumes were down 12% compared to the first quarter of 2025, due to the conversion of our Double H pipeline to natural gas liquids service, partially offset by higher volumes on Kinder Morgan Crude and Condensate Pipeline

Terminals business segment earnings were up compared to the first quarter of 2025. The increase was led by our liquids terminals business, which benefited from higher rates and ancillary fees at our Houston Ship Channel hub facilities, as well as the recognition of payments to be received in connection with the early termination of certain storage agreements in 2026. Earnings from our bulk terminals and Jones Act tanker fleet, which remains fully contracted under term charter agreements, were also up versus the prior year period

CO2 business segment earnings, which include Energy Transition Ventures (ETV), were up compared to the first quarter of 2025, excluding Certain Items, due primarily to contributions from the renewable natural gas business and lower power costs in our CO2 operations. These were partially offset by lower realized crude oil and NGL prices compared to the prior year period