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Home Energy Company News By Charles Kennedy - Oct 21, 2026, 7:55 PM CDT Kinder Morgan reported record third-quarter 2026 earnings on Wednesday and announced $5.4 billion in new expansion projects, bringing its total project backlog to $14.4 billion, including a record $13.2 billion in natural gas infrastructure investments. The Houston-based pipeline operator said its overall project backlog increased by a net $4.7 billion from the second quarter, after accounting for approximately $700 million in projects entering service. The expansion reflects rising demand for natural gas infrastructure across the United States, particularly from power generation, data centers, industrial development, and liquefied natural gas (LNG) exports.
More than 75% of Kinder Morgan's total project backlog is tied to electricity generation and local gas distribution demand. Two major natural gas pipeline projects account for a significant portion of the company's latest investment commitments. The Southeast Connector Project, developed by Southern Natural Gas Company, will transport up to 2.6 billion cubic feet per day (Bcf/d) of natural gas through approximately 470 miles of new pipeline and associated compression infrastructure.
The project will connect Marcellus and Utica shale gas supplies with expanding markets in the southeastern United States. Kinder Morgan expects its share of the investment to reach approximately $3.1 billion, with initial operations scheduled for the fourth quarter of 2030, subject to regulatory approvals. Meanwhile, Natural Gas Pipeline Company of America has approved the Permian Link Project, a roughly $4.2 billion development designed to transport approximately 2.8 Bcf/d of natural gas.
The 434-mile pipeline will support new electricity generation serving a major hyperscale technology customer. Kinder Morgan's share of the investment is estimated at $1.6 billion, with startup targeted for the third quarter of 2030. Both projects have secured long-term transportation agreements, providing contracted revenue streams once operational.
Kinder Morgan is also expanding its Creekside Lateral Project in Central Texas, approving an additional $150 million in development phases following new agreements with data center and industrial customers. The approximately $235 million project is expected to supply more than 750 million cubic feet per day of contracted transportation capacity upon completion. The company's expanding pipeline investment program comes alongside stronger operating performance.
Third-quarter net income climbed 22% to $764 million, compared with $628 million a year earlier. Adjusted earnings per share increased 21% to $0.35, while adjusted EBITDA rose 9% to $2.18 billion. Natural gas transportation volumes increased 3% year over year, supported by higher LNG deliveries and increased demand across the company's Texas pipeline network.
Natural gas gathering volumes climbed 14%, primarily reflecting stronger activity on the KinderHawk system. The company now expects full-year adjusted EBITDA to exceed its original $8.6 billion budget by more than 6%, while adjusted earnings per share are projected to beat the initial $1.36 forecast by more than 13%. Kinder Morgan also maintained its commitment to shareholder returns, declaring a quarterly dividend of $0.2975 per share, representing a 2% increase from the corresponding period last year.
Beyond natural gas, the company is advancing its Western Gateway refined products pipeline alongside Phillips 66 and HF Sinclair. The approximately 1,300-mile project is designed to deliver 230,000 barrels per day of transportation capacity to markets in Arizona and California, with operations targeted for 2029. For investors, Kinder Morgan's growing inventory of contracted pipeline projects highlights the expanding role of natural gas infrastructure in meeting U.S. electricity demand, particularly as hyperscale data centers and industrial facilities drive new requirements for reliable power supplies.
By Charles Kennedy for Oilprice.com More Top Reads From Oilprice.com Saudi Crude Exports Hit Five-Month High as Production Falls to Record Low Mozambique Pitches Sasol and ROMPCO on $250 Million Gas Project Canada's Inflation Rises to 3.1% as Fuel Oil Prices Jump 58% Back to homepage Charles Kennedy Charles is a writer for Oilprice.com More Info EXXON Mobil -0.35 Open 57.81 Trading Vol. 6.96M Previous Vol. 241.7B BUY 57.15 Sell 57.00
