Kinder Morgan, Inc. (NYSE: KMI)
Company Overview
Kinder Morgan closed the book on a record-breaking 2025 yesterday, January 21, 2026, reporting Q4 and full-year results that exceeded expectations across the board. The company posted record adjusted EBITDA of $8.4 billion (up 6% year-over-year) and record adjusted net income of $2.9 billion (up 13%), driven by exceptional performance in its natural gas pipeline segment where earnings surged nearly 9% to $5.9 billion. The timing couldn’t be better, as the company received an S&P credit upgrade to BBB+ on January 13th – just 13 days ago – following Fitch’s similar upgrade in August 2025.
What makes Kinder Morgan particularly compelling right now is the convergence of multiple catalysts. The company handles about 40% of all natural gas produced in the U.S. through its 79,000 miles of pipelines, positioning it perfectly for the AI data center boom that’s driving unprecedented demand for natural gas-fired power generation. Kinder Morgan’s $10 billion project backlog includes three large-scale gas pipelines starting commercial service in 2027, with projects extending through 2030. The company just raised its quarterly dividend by 2% to $0.2925 per share ($1.17 annualized), marking its 8th straight year of increases, while maintaining a fortress balance sheet with a 3.8x leverage ratio at the low end of its target range.
Key Technical and Fundamental Drivers
Fresh Earnings Beat → Reported Yesterday January 21st Q4 results showed adjusted EPS of $0.45 (up 50% year-over-year), with full-year 2025 EBITDA of $8.4 billion beating the company’s 4% budgeted growth and achieving 6% actual growth.
S&P Credit Upgrade → BBB+ Just 13 Days Ago On January 13th, S&P upgraded Kinder Morgan’s senior unsecured rating from BBB to BBB+, citing the company’s strong balance sheet track record and natural gas franchise expansion.
Record Natural Gas Segment → 9% Earnings Growth The natural gas pipeline segment generated record $5.9 billion in earnings (up nearly 9%), driven by strong LNG feedgas volumes and AI data center demand for gas-fired power generation.
9th Consecutive Dividend Increase → $1.17 Annual The company raised its quarterly dividend by 2% and projects a $1.19 annualized dividend for 2026, demonstrating confidence in sustainable cash flow generation with nearly $300 million to spare after capex and dividends.
Massive Project Backlog → $10 Billion Through 2030 Kinder Morgan added $912 million of new projects in Q4, ending 2025 with a robust $10 billion backlog including three large-scale gas pipelines entering service starting next year.
Market Takeaway
Kinder Morgan’s earnings report yesterday validates what energy analysts have been predicting – 2026 will be a breakthrough year for natural gas infrastructure as AI data centers drive unprecedented power demand. The company currently moves almost 8 Bcf/d of gas to LNG facilities, with that figure expected to reach 12 Bcf/d by the end of 2028 as major projects come online. With oil prices remaining subdued near $60 per barrel, the market is rotating toward natural gas plays, and Kinder Morgan sits at the center of this structural shift.
The S&P credit upgrade to BBB+ on January 13th removes a key overhang and validates the company’s disciplined capital allocation strategy. With both S&P and Fitch now rating the company BBB+ (and Moody’s at Baa2 with positive outlook), Kinder Morgan has achieved investment-grade status across all major rating agencies while maintaining the financial flexibility to pursue opportunistic growth. The 3.8x leverage ratio at year-end positions the company at the low end of its 3.5-4.5x target range, providing ample cushion for the $3.4 billion in 2026 capex while still growing the dividend.
The stock has responded well to the positive catalysts, posting an 8.83% return over the past 30 days and 14.81% over 90 days, but analysts see more room to run. With a 4.2% dividend yield providing downside protection and the company projecting 5% EPS growth to $1.36 in 2026, Kinder Morgan offers a compelling combination of income and growth. The key catalysts ahead include the July 31, 2026 expected FERC certificate for the $3.5 billion South System Expansion 4 project and the continued buildout of AI data center infrastructure requiring massive natural gas capacity. As energy companies pivot from oil-focused strategies to gas-fueled growth drivers, Kinder Morgan’s “staying in our lane” approach to fee-based pipeline operations positions it as a pure-play beneficiary of the secular shift toward natural gas demand. With yesterday’s record earnings, recent credit upgrade, and $10 billion project backlog, KMI represents a high-quality energy infrastructure play with visible growth and a rock-solid dividend.