Kinder Morgan (KMI) has increased by 9.6% since the last earnings report. Can this upward trend continue?

Kinder Morgan (KMI) has seen a significant increase of 9.6% since its last earnings report, outperforming the S&P 500. Investors are now wondering whether this positive trend will continue leading up to its next earnings release, or if Kinder Morgan might experience a pullback. Analyzing the latest earnings report can provide insights into the factors driving the company’s performance.

In the fourth quarter of 2025, Kinder Morgan reported adjusted earnings per share (EPS) of 39 cents, surpassing the Zacks Consensus Estimate of 37 cents. Total revenues for the quarter reached $4.5 billion, exceeding the Zacks Consensus Estimate of $4.4 billion. The company’s strong financial results were primarily driven by the contributions from the Natural Gas Pipelines business segment.

Within the Natural Gas Pipelines segment, adjusted earnings before depreciation, depletion, and amortization expenses (EBDA) saw a significant increase to $1.63 billion from the previous year. This surge was mainly due to improved contributions from assets such as the Texas Intrastate system, KinderHawk, and Outrigger Energy. Additionally, higher natural gas transport volumes and gathering volumes contributed to the segment’s record financial performance.

The Product Pipelines segment also experienced growth, with EBDA for the quarter reaching $307 million, up from $299 million in the previous year. Similarly, the Terminals segment reported a quarterly EBDA of $294 million, showing growth from $282 million in the year-ago period. Despite a slight decrease in liquids utilization, the segment benefited from the liquids terminals business, supported by increased rates and ancillary fees at the Houston Ship Channel hub.

On the other hand, the CO2 segment noted a decline in EBDA to $145 million, down from $161 million in the prior-year quarter. Kinder Morgan’s operational expenses related to operations and maintenance increased, totaling $787 million in the fourth quarter.

Looking ahead, Kinder Morgan projects net income attributable to KMI at $3.1 billion for the year and estimates adjusted EPS at $1.36 per share. The company also anticipates Adjusted EBITDA for 2026 to be $8.6 billion, with natural gas projects comprising approximately 90% of its project backlog. As of December 31, 2025, Kinder Morgan reported $63 million in cash and cash equivalents and long-term debt amounting to $30.6 billion.

Despite some downward revisions in estimates post-earnings release, Kinder Morgan maintains a Zacks Rank #3 (Hold). The company’s VGM Scores indicate subpar performance on various fronts, including growth, momentum, and value. With estimates trending downward, investors can expect the stock to deliver an in-line return in the coming months.