Kinder Morgan executives said strong customer demand is supporting a record U.S. natural gas project backlog and additional expansion opportunities across the company's pipeline network. Kinder Morgan's overall project backlog grew from $9.6 billion to $14.4 billion during the quarter. Kinder Morgan added $5.4 billion in projects during the quarter. Kinder Morgan also brought $700 million of projects into service.
CEO Kim Dang said creditworthy customers have signed take-or-pay contracts lasting at least 20 years for Southeast Connector and Permian Link. Permian Link is expected to begin operating in 2030. Southeast Connector is scheduled to begin service in stages from 2030 through 2032. Dang said Kinder Morgan favors projects supported by customer demand. Dang said every project currently being sanctioned is demand-driven, and such demand can persist for decades.
Dang said Southeast Connector already has sufficient signed commitments to support proceeding toward a final investment decision. More customers could join Southeast Connector and expand the project's size. Management sees opportunities for additional projects arising from the current construction program. Dang said large projects can produce bottlenecks elsewhere that Kinder Morgan will need to resolve, generating further investment opportunities. Dang said a substantial pool of potential projects remains. Executive Chairman Richard Kinder also described numerous existing opportunities and additional opportunities beyond those already being pursued.
Kinder Morgan released third-quarter results after Wednesday's market close. Revenue reached $4.53 billion, exceeding the $4.38 billion estimate. Adjusted earnings totaled 35 cents per share, above expectations of 32 cents. Kinder Morgan shares rose in Thursday's premarket trading following the results.
Management warned that several factors helping 2026 results may not repeat next year. Those factors include favorable weather, a terminals contract buyout, a favorable Federal Energy Regulatory Commission true-up and unusually favorable natural gas price spreads. Those factors accounted for about $225 million of outperformance in 2026. Commodity prices contributed another $175 million relative to budget. Dang said matching 2026 results will be difficult. However, Dang said Kinder Morgan's underlying businesses remain strong. Dang said the project backlog should support longer-term growth, although annual growth may vary.
Kinder Morgan declared a quarterly dividend of 29.75 cents per share. Kinder Morgan will pay the dividend on November 16 to shareholders recorded on November 2. Benzinga Pro data showed Kinder Morgan shares up 1.56% at $34.50 at the latest check on Thursday.
Kinder Morgan Reports Record $14.4 Billion Gas Project Backlog
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Summary
Kinder Morgan announced a record $14.4 billion gas project backlog, driven by strong customer demand. The project funding news shows a $5.4 billion addition this quarter, with $700 million of projects now in service. CEO Kim Dang highlighted long-term take-or-pay contracts for the Southeast Connector and Permian Link, the latter set for 2030. Q3 revenue hit $4.53 billion, beating estimates, and the company declared a 29.75-cent dividend per share.
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