Kinder Morgan · 10-Q · Item 2 MD&A

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

General and Basis of Presentation

The following discussion and analysis should be read in conjunction with our accompanying interim consolidated financial statements and related notes included elsewhere in this report, and in conjunction with (i) our consolidated financial statements and related notes in our 2025 Form 10-K; (ii) our management’s discussion and analysis of financial condition, and results of operations included in our 2025 Form 10-K; (iii) “Information Regarding Forward-Looking Statements” at the beginning of this report, and in our 2025 Form 10-K; and (iv) “Risk Factors” in Part I, Item 1A in our 2025 Form 10-K.

Acquisition

The following acquisition was made during the 2026 period. See Note 2 “Acquisitions” to our consolidated financial statements for further information on this transaction.

Event

Description

Business Segment

T1Monument Pipeline system acquisition

Natural gas pipeline system serving Houston, Texas and the surrounding metropolitan area which includes approximately 225 miles of pipelines and provides transportation and storage services to gas utilities, LNG shippers, and industrial customers.

Natural Gas Pipelines

(Midstream)

2026 Dividends and Discretionary Capital

T2We expect to declare dividends of $1.19 per share for 2026, a 2% increase from the 2025 declared dividends of $1.17 per share. T3We expect to invest $4.1 billion in expansion projects, acquisitions, and contributions to joint ventures during 2026.

The expectations for 2026 discussed above involve risks, uncertainties, and assumptions, and are not guarantees of performance. Many of the factors that will determine these expectations are beyond our ability to control or predict, and because of these uncertainties, it is advisable not to put undue reliance on any forward-looking statement.

Results of Operations

Overview

As described in further detail below, our management evaluates our performance primarily using Net income attributable to Kinder Morgan, Inc. and Segment earnings before DD&A expenses (EBDA) (as presented in Note 7 “Reportable Segments”), along with the non-GAAP financial measures of Adjusted Net Income Attributable to Common Stock, in the aggregate and per share, Adjusted Segment EBDA, Adjusted Net Income Attributable to Kinder Morgan, Inc., Adjusted earnings before interest, income taxes, DD&A expenses (EBITDA), and Net Debt.

GAAP Financial Measures

Our Consolidated Earnings Results for the three and six months ended June 30, 2026 and 2025 present Net income attributable to Kinder Morgan, Inc., as prepared and presented in accordance with GAAP, and Segment EBDA, which is disclosed in Note 7 “Reportable Segments” pursuant to FASB ASC 280. The composition of Segment EBDA is not addressed nor prescribed by generally accepted accounting principles. Segment EBDA is a useful measure of our operating performance because it measures the operating results of our segments before DD&A and certain expenses that are generally not controllable by our business segment operating managers, such as general and administrative expenses and corporate charges, interest expense, net, and income taxes.

Our general and administrative expenses and corporate charges include such items as unallocated employee benefits, insurance, rentals, unallocated litigation and environmental expenses, and shared corporate services including accounting, IT, human resources, and legal services.

Non-GAAP Financial Measures

T4Our non-GAAP financial measures described below should not be considered alternatives to GAAP Net income attributable to Kinder Morgan, Inc. or other GAAP measures and have important limitations as analytical tools. Our computations of these non-GAAP financial measures may differ from similarly titled measures used by others. You should not consider these non-GAAP financial measures in isolation or as substitutes for an analysis of our results as reported under

GAAP. Management compensates for the limitations of our consolidated non-GAAP financial measures by reviewing our comparable GAAP measures identified in the descriptions of consolidated non-GAAP measures below, understanding the differences between the measures and taking this information into account in its analysis and its decision-making processes.

Certain Items

Certain Items, as adjustments used to calculate our non-GAAP financial measures, are items that are required by GAAP to be reflected in Net income attributable to Kinder Morgan, Inc., but typically (i) do not have a cash impact (for example, unsettled commodity hedges and asset impairments), (ii) by their nature are separately identifiable from our normal business operations and in most cases are likely to occur only sporadically (for example, certain legal settlements, enactment of new tax legislation, and casualty losses), or (iii) align the timing of cash impacts from natural gas inventory hedges with the future associated physical withdrawals from inventory. (See the tables included in “—Non-GAAP Financial Measures—Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Kinder Morgan, Inc.,” “—Non-GAAP Financial Measures—Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Common Stock,” and “—Non-GAAP Financial Measures—Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted EBITDA” below).

We also include adjustments related to joint ventures (see “—Amounts associated with Joint Ventures” below). The following table summarizes our Certain Items for the three and six months ended June 30, 2026 and 2025, which are also described in more detail in the footnotes to tables included in “—Segment Earnings Results” below.

Three Months Ended

Six Months Ended

(In millions)

Certain Items

Risk management activities(a)(b)

$

$

$

$

Income tax Certain Items(c)

(2)

Other

—

1

—

1

Total Certain Items(d)(e)

$

$

$

$

(a)Includes changes in fair value of unsettled derivatives, of which gains or losses are reflected within non-GAAP financial measures when realized.

(b)Includes natural gas inventory hedges of which gains or losses are reflected within non-GAAP financial measures when the associated physical gas is withdrawn from inventory.

(c)Represents the income tax provision on Certain Items plus discrete income tax items. Includes the impact of KMI’s income tax provision on Certain Items affecting earnings from equity investments and is separate from the related tax provision recognized at the investees by the joint ventures which are also taxable entities.

(d)Amounts for the periods ended June 30, 2026 and 2025 include $(1) million and $(2) million for the three-month periods, respectively, and $(1) million for the six-month 2026 period reported within “Earnings from equity investments” on the accompanying consolidated statement of income of “Risk management activities.”

(e)2025 amounts for the three and six-month periods include $(1) million and $1 million, respectively, reported within “Interest, net” on the accompanying consolidated statement of income of “Risk management activities.”

Adjusted Net Income Attributable to Kinder Morgan, Inc.

Adjusted Net Income Attributable to Kinder Morgan, Inc. is calculated by adjusting Net income attributable to Kinder Morgan, Inc. for Certain Items. Adjusted Net Income Attributable to Kinder Morgan, Inc. is used by us, investors, and other external users of our financial statements as a supplemental measure that provides decision-useful information regarding our period-over-period performance and ability to generate earnings that are core to our ongoing operations. We believe the GAAP measure most directly comparable to Adjusted Net Income Attributable to Kinder Morgan, Inc. is Net income attributable to Kinder Morgan, Inc. See “—Non-GAAP Financial Measures—Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Kinder Morgan, Inc.” below.

Adjusted Net Income Attributable to Common Stock and Adjusted EPS

Adjusted Net Income Attributable to Common Stock is calculated by adjusting Net income attributable to Kinder Morgan, Inc., the most comparable GAAP measure, for Certain Items, and further for net income allocated to participating securities and adjusted net income in excess of distributions for participating securities. We believe Adjusted Net Income Attributable to Common Stock allows for calculation of adjusted earnings per share (Adjusted EPS) on the most comparable basis with

earnings per share, the most comparable GAAP measure to Adjusted EPS. Adjusted EPS is calculated as Adjusted Net Income Attributable to Common Stock divided by our weighted average shares outstanding. Adjusted EPS applies the same two-class method used in arriving at basic earnings per share. Adjusted EPS is used by us, investors, and other external users of our financial statements as a per-share supplemental measure that provides decision-useful information regarding our period-over-period performance and ability to generate earnings that are core to our ongoing operations. See “—Non-GAAP Financial Measures—Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Common Stock” below.

Adjusted Segment EBDA

Adjusted Segment EBDA is calculated by adjusting segment earnings before DD&A, general and administrative expenses and corporate charges, interest expense, and income taxes (Segment EBDA) for Certain Items attributable to the segment. Adjusted Segment EBDA is used by management in its analysis of segment performance and management of our business. We believe Adjusted Segment EBDA is a useful performance metric because it provides management, investors, and other external users of our financial statements additional insight into performance trends across our business segments, our segments’ relative contributions to our consolidated performance, and the ability of our segments to generate earnings on an ongoing basis. Adjusted Segment EBDA is also used as a factor in determining compensation under our annual incentive compensation program for our business segment presidents and other business segment employees. We believe it is useful to investors because it is a measure that management uses to allocate resources to our segments and assess each segment’s performance. See “—Segment Earnings Results” below.

Adjusted EBITDA

Adjusted EBITDA is calculated by adjusting Net income attributable to Kinder Morgan, Inc. for Certain Items and further for DD&A, including the amortization of basis differences related to our joint ventures, income tax expense, and interest. We also include amounts from joint ventures for income taxes and DD&A (see “—Amounts associated with Joint Ventures” below). Adjusted EBITDA is used by management, investors, and other external users, in conjunction with our Net Debt (as described further below), to evaluate our leverage. Management and external users also use Adjusted EBITDA as an important metric to compare the valuations of companies across our industry. Our ratio of Net Debt-to-Adjusted EBITDA is used as a supplemental performance target for purposes of our annual incentive compensation program.

We believe the GAAP measure most directly comparable to Adjusted EBITDA is Net income attributable to Kinder Morgan, Inc. See “—Non-GAAP Financial Measures—Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted EBITDA” below.

Amounts associated with Joint Ventures

Certain Items and Adjusted EBITDA reflect amounts from unconsolidated joint ventures and consolidated joint ventures utilizing the same recognition and measurement methods used to record “Earnings from equity investments” and “Noncontrolling interests,” respectively. The calculation of Adjusted EBITDA related to our unconsolidated and consolidated joint ventures includes the same adjustments (DD&A, including the amortization of basis differences related to joint ventures only, and income tax expense) with respect to the joint ventures as those included in the calculation of Adjusted EBITDA for our wholly-owned consolidated subsidiaries; further, we remove the portion of these adjustments attributable to non-controlling interests. (See “—Non-GAAP Financial Measures—Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted EBITDA” below.)

Although these amounts related to our unconsolidated joint ventures are included in the calculation of Adjusted EBITDA, such inclusion should not be understood to imply that we have control over the operations and resulting revenues, expenses, or cash flows of such unconsolidated joint ventures.

Net Debt

Net Debt is calculated, based on amounts as of June 30, 2026, by subtracting the following amounts from our debt balance of $32,248 million: (i) cash and cash equivalents of $89 million; (ii) debt fair value adjustments of $104 million; and (iii) the foreign exchange impact on Euro-denominated bonds of $28 million for which we have entered into currency swaps to convert that debt to U.S. dollars. Net Debt, on its own and in conjunction with our Adjusted EBITDA as part of a ratio of Net Debt-to-Adjusted EBITDA, is a non-GAAP financial measure that is used by management, investors, and other external users of our financial information to evaluate our leverage.

Our ratio of Net Debt-to-Adjusted EBITDA is also used as a supplemental performance target for purposes of our annual incentive compensation program. We believe the most comparable measure to Net Debt is total debt.

Consolidated Earnings Results

The following tables summarize the key components of our consolidated earnings results.

Three Months Ended

Earnings

increase/(decrease)

(In millions, except per share amounts and percentages)

Revenues

$

$

$

%

Operating Costs, Expenses and Other

Costs of sales (exclusive of items shown separately below)

%

Operations and maintenance

(4)

%

DD&A

(4)

(1)

%

General and administrative

(4)

(2)

%

Taxes, other than income taxes

(9)

(8)

%

Other income, net

9

3

%

Total Operating Costs, Expenses and Other

(8)

%

Operating Income

%

Other Income (Expense)

Earnings from equity investments

9

%

Interest, net

6

%

Other, net

7

%

Total Other Expense

%

Income Before Income Taxes

%

Income Tax Expense

%

Net Income

%

Net Income Attributable to Noncontrolling Interests

—

—

%

Net Income Attributable to Kinder Morgan, Inc.

$

$

$

%

Basic and diluted earnings per share

$

$

$

%

Basic and diluted weighted average shares outstanding

3

—

%

Declared dividends per share

$

$

$

2

%

Six Months Ended

Earnings

increase/(decrease)

(In millions, except per share amounts and percentages)

Revenues

$

$

$

%

Operating Costs, Expenses and Other

Costs of sales (exclusive of items shown separately below)

%

Operations and maintenance

(2)

%

DD&A

(2)

%

General and administrative

(1)

—

%

Taxes, other than income taxes

(5)

%

Other income, net

9

%

Total Operating Costs, Expenses and Other

(9)

%

Operating Income

%

Other Income (Expense)

Earnings from equity investments

%

Interest, net

5

%

Other, net

%

Total Other Expense

%

Income Before Income Taxes

%

Income Tax Expense

%

Net Income

%

Net Income Attributable to Noncontrolling Interests

1

2

%

Net Income Attributable to Kinder Morgan, Inc.

$

$

$

%

Basic and diluted earnings per share

$

$

$

%

Basic and diluted weighted average shares outstanding

3

—

%

Declared dividends per share

$

$

$

2

%

Our consolidated revenues primarily consist of services and sales revenue. Our services revenues include fees for transportation and other midstream services that we perform. Fluctuations in our consolidated services revenue largely reflect changes in volumes and/or in the rates we charge. Our consolidated sales revenues include sales of natural gas (includes natural gas and RNG), products (includes NGL, crude oil, CO2, and transmix), and other (includes RINs). Our consolidated sales revenue will fluctuate with commodity prices and volumes, and the costs of sales associated with purchases will usually have a commensurate and offsetting impact, except for the CO2 segment, which produces, instead of purchases, the crude oil, CO2, and RINs it sells. Additionally, fluctuations in revenues and costs of sales may be further impacted by gains or losses from derivative contracts that we use to manage our commodity price risk.

Below is a discussion of significant changes in our Consolidated Earnings Results for the comparable three and six-month periods ended June 30, 2026 and 2025:

Revenues

T5Revenues increased $435 million and $1,022 million for the three and six months ended June 30, 2026, respectively, as compared to the respective prior year periods. These increases were primarily due to (i) increases in product sales of $422 million and $388 million, respectively, driven by higher commodity prices and volumes; (ii) increases in services revenues of $138 million and $295 million, respectively, resulting from higher volumes, including expansion projects placed into service, primarily in our Natural Gas Pipelines business segment; and (iii) an increase in the six-month period in natural gas sales of $387 million due to higher volumes and commodity prices. T6These increases in revenues were partially offset by $49 million and $63 million, respectively, for the impacts of derivative contracts used to hedge commodity sales and a decrease in the three-month period in natural gas sales of $73 million, due to lower commodity prices partially offset by higher volumes. The

increases in sales revenues were partially offset by corresponding increases in our costs of sales as described below under “Operating Costs, Expenses and Other—Costs of sales.”

Operating Costs, Expenses and Other

Costs of sales

Costs of sales increased $194 million and $467 million for the three and six months ended June 30, 2026, respectively, as compared to the respective prior year periods. The increases were primarily due to (i) increases of $245 million and $176 million, respectively, in costs of sales for products driven by higher commodity prices and volumes; (ii) increases of $82 million and $103 million, respectively, related to derivative contracts used to hedge commodity purchases; and (iii) an increase in the six-month period of $187 million in costs of sales for natural gas primarily due to higher volumes partially offset by lower commodity prices. The three-month period increase was partially offset by a decrease of $112 million in costs of sales for natural gas due to lower commodity prices partially offset by higher volumes.

Operations and Maintenance

Operations and maintenance increased $33 million for each of the three and six months ended June 30, 2026, respectively, as compared to the respective prior year periods. The increases were primarily driven by greater activity, including labor costs, and inflation.

Other Income (Expense)

Interest, net

In the table above, we report our interest expense as “net,” meaning that we have subtracted interest income and capitalized interest from our total interest expense to arrive at one interest amount. Interest, net decreased $27 million and $48 million for the three and six months ended June 30, 2026, respectively, compared to the respective prior year periods. These decreases were primarily due to higher capitalized interest and lower interest rates associated with our fixed-to-variable interest rate swap agreements. The six-month period decrease was also due to lower average short-term debt balances partially offset by higher interest rates on our long-term debt.

Non-GAAP Financial Measures

Reconciliations from Net Income Attributable to Kinder Morgan, Inc.

Three Months Ended

Six Months Ended

(In millions, except per share amounts)

Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Kinder Morgan, Inc.

Net income attributable to Kinder Morgan, Inc.

$

$

$

$

Certain Items(a)

Risk management activities

Income tax Certain Items

(2)

Other

—

1

—

1

Total Certain Items

Adjusted Net Income Attributable to Kinder Morgan, Inc.

$

$

$

$

Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Common Stock

Net income attributable to Kinder Morgan, Inc.

$

$

$

$

Total Certain Items(b)

Net income allocated to participating securities and other(c)

(4)

(4)

(8)

Adjusted Net Income Attributable to Common Stock

$

$

$

$

Adjusted EPS

$

$

$

$

Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted EBITDA

Net income attributable to Kinder Morgan, Inc.

$

$

$

$

Total Certain Items(b)

DD&A

Income tax expense(d)

Interest, net(e)

Amounts associated with joint ventures

Unconsolidated joint venture DD&A(f)

Remove consolidated joint venture partners’ DD&A

Unconsolidated joint venture income tax expense(g)

Adjusted EBITDA

$

$

$

$

(a)See table included in “—Overview—Non-GAAP Financial Measures—Certain Items” above.

(b)See “—Non-GAAP Financial Measures—Reconciliation of Net Income Attributable to Kinder Morgan, Inc. to Adjusted Net Income Attributable to Kinder Morgan, Inc.” for a detailed listing.

(c)Other for each of the periods ended June 30, 2026 and 2025 includes Adjusted net income in excess of distributions for participating securities of less than $1 million.

(d)To avoid duplication, adjustments for income tax expense for the periods ended June 30, 2026 and 2025 exclude $37 million and $(2) million for the three-month periods, respectively, and $11 million and $(37) million for the six-month periods, respectively, which amounts are already included within “Certain Items.” See table included in “—Overview—Non-GAAP Financial Measures—Certain Items” above.

(e)To avoid duplication, adjustments for interest, net for the three and six-month periods ended June 30, 2025 exclude $(1) million and $1 million, respectively, which amounts are already included within “Certain Items.” See table included in “—Overview—Non-GAAP Financial Measures—Certain Items,” above.

(f)Includes amortization of basis differences related to our joint ventures.

(g)Includes the tax provision on Certain Items recognized by the investees that are taxable entities associated with our Citrus, NGPL Holdings LLC, and Products (SE) Pipe Line equity investments. The impact of KMI’s income tax provision on Certain Items affecting earnings from equity investments is included within “Certain Items” above.

Below is a discussion of significant changes in our Adjusted Net Income Attributable to Kinder Morgan, Inc. and Adjusted EBITDA:

Three Months Ended

Six Months Ended

(In millions)

Adjusted Net Income Attributable to Kinder Morgan, Inc.

$

$

$

$

Adjusted EBITDA

Change from prior period

Increase/(Decrease)

Adjusted Net Income Attributable to Kinder Morgan, Inc.

$

$

Adjusted EBITDA

$

$

T7Adjusted Net Income Attributable to Kinder Morgan, Inc. increased $202 million and $499 million for the three and six months ended June 30, 2026, respectively, as compared to the respective prior year periods. The increases resulted primarily from favorable earnings across all of our business segments, which were also the primary drivers of the increase in Adjusted EBITDA of $227 million and $609 million, respectively.

General and Administrative and Corporate Charges

Three Months Ended

Six Months Ended

(In millions)

General and administrative

$

$

$

$

Corporate benefit (charges)

4

—

(5)

Certain Items(a)

—

1

—

1

General and administrative and corporate charges

$

$

$

$

Change from prior period

Earnings increase/(decrease)

General and administrative

$

(4)

$

(1)

Corporate charges

4

Total

$

—

$

General and administrative expenses increased $4 million and $1 million, and corporate charges decreased $4 million and $16 million for the three and six months ended June 30, 2026, respectively, when compared with the respective prior year periods. The combined change for the three-month period was flat and the decrease for the six-month period primarily includes lower pension, legal, and corporate facility costs partially offset by higher benefit-related and labor costs.

Segment Earnings Results

Natural Gas Pipelines (including reconciliation of Segment EBDA to Adjusted Segment EBDA)

Three Months Ended

Six Months Ended

(In millions, except operating statistics)

Revenues

$

$

$

$

Costs of sales

Other operating expenses(a)

Other income

1

6

2

7

Earnings from equity investments

Other, net

7

Segment EBDA

Certain Items:

Risk management activities

(9)

Certain Items(b)

(9)

Adjusted Segment EBDA

$

$

$

$

Change from prior period

Increase/(Decrease)

Segment EBDA

$

$

Adjusted Segment EBDA

$

$

Volumetric data(c)

Natural gas transport (BBtu/d)

Natural gas sales (BBtu/d)

Gathering (BBtu/d)

NGL transport (MBbl/d)

(a)Other operating expenses include operations and maintenance expenses and taxes, other than income taxes.

(b)See table included in “—Overview—Non-GAAP Financial Measures—Certain Items” above. For the periods ending June 30, 2026 and 2025, Certain Items of (i) $(57) million and $(87) million for the three-month periods, respectively, and $22 million and $(9) million for the six-month periods, respectively, are associated with our Midstream business and (ii) $(2) million for each of the three-month periods and $5 million and none for the six-month periods, respectively, are associated with our East business. See “—Overview—Non-GAAP Financial Measures—Certain Items” above. For more detail of significant Certain Items, see the discussion of changes in Segment EBDA below.

(c)Joint venture throughput is reported at our ownership share. Volumes for acquired assets are included for all periods presented. However, EBDA contributions from acquisitions are included only for the periods subsequent to their acquisition. Volumes for assets sold are excluded for all periods presented.

Below are the changes in Natural Gas Pipelines Segment EBDA:

Three Months Ended

Six Months Ended

(In millions)

Midstream

$

$

$

$

East

West

Total Natural Gas Pipelines

$

$

$

$

Change from prior period

Increase/(Decrease)

Midstream

$

$

East

$

$

West

$

$

The changes in Natural Gas Pipelines Segment EBDA in the comparable three and six-month periods ended June 30, 2026 and 2025 are explained by the following discussion:

•The $54 million (10%) and $256 million (26%) increases, respectively, in Midstream were primarily driven by (i) increased sales margin resulting from higher volumes and increased demand for our services on our Texas intrastate systems; (ii) higher volumes on KinderHawk Field Services LLC; and (iii) higher performance from acquired assets on our Hiland Midstream assets. The increase in the six-month period was further impacted by increased sales margin primarily due to higher commodity prices due to colder winter weather on our Texas intrastate systems. Overall, Midstream’s revenue changes are partially offset by corresponding changes in costs of sales.

In addition, Midstream includes increased costs of sales associated with risk management activities related to non-cash changes in fair value of unsettled derivative contracts and realized gains and losses on settled natural gas inventory hedge contracts, which we treated as a Certain Item.

•The $16 million (2%) and $51 million (4%) increases, respectively, in East were primarily driven by (i) completed expansion projects; (ii) lower pipeline maintenance costs; and (iii) increased demand for our services primarily due to weather partially offset by lower pricing on short-term firm service contracts driven by a decrease in market volatility.

•The $14 million (6%) and $35 million (7%) increases, respectively, in West resulted primarily from higher park and loan activity due to favorable pricing driven by market volatility, and higher capacity sales partially offset by higher pipeline maintenance costs.

Products Pipelines (including reconciliation of Segment EBDA to Adjusted Segment EBDA)

Three Months Ended

Six Months Ended

(In millions, except operating statistics)

Revenues

$

$

$

$

Costs of sales

Other operating expenses(a)

Other income

1

1

1

1

Earnings from equity investments

Segment EBDA

Certain Items:

Risk management activities

(4)

—

1

1

Certain Items(b)

(4)

—

1

1

Adjusted Segment EBDA

$

$

$

$

Change from prior period

Increase/(Decrease)

Segment EBDA

$

$

Adjusted Segment EBDA

$

$

Volumetric data(c)

Gasoline(d)

Diesel fuel

Jet fuel

Total refined product volumes

Crude and condensate

Total delivery volumes (MBbl/d)

(a)Other operating expenses include operations and maintenance expenses and taxes, other than income taxes.

(b)See table included in “—Overview—Non-GAAP Financial Measures—Certain Items” above. For the periods ending June 30, 2026 and 2025, Certain Items of (i) $(3) million and none for the three-month periods, respectively, and $1 million for each of the six-month periods are associated with our Southeast Refined Products business and (ii) $(1) million and none for the three-month periods, respectively, are associated with our Crude and Condensate business. See “—Overview—Non-GAAP Financial Measures—Certain Items” above. For more detail of significant Certain Items, see the discussion of changes in Segment EBDA below.

(c)Joint venture throughput is reported at our ownership share.

(d)Volumes include ethanol pipeline volumes.

Below are the changes in Products Pipelines Segment EBDA:

Three Months Ended

Six Months Ended

(In millions)

Southeast Refined Products

$

$

$

$

Crude and Condensate

West Coast Refined Products

Total Products Pipelines

$

$

$

$

Change from prior period

Increase (Decrease)

Southeast Refined Products

$

$

Crude and Condensate

$

8

$

West Coast Refined Products

$

6

$

The changes in Products Pipelines Segment EBDA in the comparable three and six-month periods ended June 30, 2026 and 2025 are explained by the following discussion:

•The $40 million (53%) and $54 million (36%) increases, respectively, in Southeast Refined Products were primarily the result of higher butane blending spreads on our Southeast Terminals and favorable commodity prices at our Transmix processing operations.

•The $32 million (29%) six-month increase in Crude and Condensate was driven by (i) higher margin from our Crude and Condensate business resulting primarily from increased spreads; (ii) a turnaround in the first quarter of 2025 at our KM Condensate Processing facility; and (iii) on our Bakken Crude assets, higher gathering rates and retroactive rate increases partially offset by lower gathering volumes.

•The $15 million (5%) six-month increase in West Coast Refined Products was primarily due to lower pipeline maintenance costs and increased butane blending activity on our Pacific Operations.

Terminals (including reconciliation of Segment EBDA to Adjusted Segment EBDA)

Three Months Ended

Six Months Ended

(In millions, except operating statistics)

Revenues

$

$

$

$

Costs of sales

Other operating expenses(a)

Other (expense) income

(1)

1

(1)

—

Earnings from equity investments

4

2

7

4

Other, net

1

2

1

2

Segment EBDA

$

$

$

$

Certain Items:

Risk management activities

(1)

—

—

—

Certain Items(b)

(1)

—

—

—

Adjusted Segment EBDA

$

$

$

$

Change from prior period

Increase/(Decrease)

Segment EBDA

$

$

Adjusted Segment EBDA

$

9

$

Volumetric data(c)

Liquids leasable capacity (MMBbl)

Liquids utilization %(d)

%

%

%

%

Bulk transload tonnage (MMtons)

(a)Other operating expenses include operations and maintenance expenses and taxes, other than income taxes.

(b)See table included in “—Overview—Non-GAAP Financial Measures—Certain Items” above. The 2026 Certain Items are associated with our Liquids business. See “—Overview—Non-GAAP Financial Measures—Certain Items” above. For more detail of significant Certain Items, see the discussion of changes in Segment EBDA below.

(c)Volumes for facilities divested, idled and/or held for sale are excluded for all periods presented.

(d)The ratio of our tankage capacity in service to liquids leasable capacity.

For purposes of the following tables and related discussions, the results of operations of our terminals held for sale or divested, including any associated gain or loss on sale, are adjusted for all periods presented from the historical business grouping and included within the Other group.

Below are the changes in Terminals Segment EBDA:

Three Months Ended

Six Months Ended

(In millions)

Liquids

$

$

$

$

Jones Act tankers

Bulk

Other

—

2

—

2

Total Terminals

$

$

$

$

Change from prior period

Increase/(Decrease)

Liquids

$

$

Jones Act tankers

$

5

$

9

Bulk

$

(5)

$

2

Other

$

(2)

$

(2)

The changes in Terminals Segment EBDA in the comparable three and six-month periods ended June 30, 2026 and 2025 are explained by the following discussion:

•The $12 million (7%) and $55 million (17%) increases, respectively, in Liquids were driven by contributions from (i) at our Houston Ship Channel facilities, higher rates and ancillaries partially offset by the effects of a customer’s closure of its refinery in 2025; (ii) favorable commodity pricing; and (iii) expansion projects. The increase in the six-month period was also driven by the recognition of payments to be received in connection with the early termination of certain storage agreements in 2026 related to the refinery closure partially offset by higher maintenance costs.

•The $5 million (8%) and $9 million (8%) increases, respectively, in Jones Act tankers were primarily due to higher average charter rates.

CO2 (including reconciliation of Segment EBDA to Adjusted Segment EBDA)

Three Months Ended

Six Months Ended

(In millions, except operating statistics)

Revenues

$

$

$

$

Costs of sales

Other operating expenses(a)

Other income

1

1

Earnings from equity investments

4

Segment EBDA

Certain Items:

Risk management activities

(5)

2

(4)

Certain Items(b)

(5)

2

(4)

Adjusted Segment EBDA

$

$

$

$

Change from prior period

Increase/(Decrease)

Segment EBDA

$

$

Adjusted Segment EBDA

$

$

Volumetric data

SACROC oil production

Yates oil production

Other

Total oil production, net (MBbl/d)(c)

NGL sales volumes, net (MBbl/d)(c)

CO2 sales volumes, net (Bcf/d)

RNG sales volumes (BBtu/d)

Realized weighted average oil price ($ per Bbl)

$

$

$

$

Realized weighted average NGL price ($ per Bbl)

$

$

$

$

(a)Other operating expenses include operations and maintenance expenses and taxes, other than income taxes.

(b)See table included in “—Overview—Non-GAAP Financial Measures—Certain Items” above. The 2026 and 2025 Certain Items are associated with our Oil and Gas Producing activities. See “—Overview—Non-GAAP Financial Measures—Certain Items” above. For more detail of significant Certain Items, see the discussion of changes in Segment EBDA below.

(c)Net of royalties and outside working interests.

Below are the changes in CO2 Segment EBDA:

Three Months Ended

Six Months Ended

(In millions)

Oil and Gas Producing activities

$

$

$

$

Source and Transportation activities

Subtotal

Energy Transition Ventures

7

Total CO2

$

$

$

$

Change from prior period

Increase/(Decrease)

Oil and Gas Producing activities

$

$

Source and Transportation activities

$

$

Energy Transition Ventures

$

$

The changes in CO2 Segment EBDA in the comparable three and six-month periods ended June 30, 2026 and 2025 are explained by the following discussion:

•The $42 million (40%) and $18 million (8%) increases, respectively, in Oil and Gas Producing activities were driven by higher realized crude oil prices and volumes. The increase in the six-month period was also due to lower power costs primarily resulting from lower prices.

In addition, Oil and Gas Producing activities includes increased revenues for the three-month period and decreased revenues for the six-month period associated with non-cash mark-to-market sales derivative hedge contracts, which we treated as a Certain Item.

•The $16 million (42%) and $19 million (22%) increases, respectively, in Source and Transportation activities were primarily due to higher realized CO2 sales prices.

•The $18 million (257%) and $26 million (108%) increases, respectively, in Energy Transition Ventures includes greater RNG production and RIN sales.

We believe that our existing hedge contracts in place within our CO2 business segment substantially mitigate commodity price exposure in the near-term and to a lesser extent over the following few years. Below is a summary of our CO2 business segment hedges outstanding as of June 30, 2026:

Crude Oil(a)

Price ($ per Bbl)

$

$

$

Volume (MBbl/d)

NGLs

Price ($ per Bbl)

$

$

Volume (MBbl/d)

(a)Includes WTI hedges.

Liquidity and Capital Resources

General

As of June 30, 2026, we had $89 million of “Cash and cash equivalents,” an increase of $26 million from December 31, 2025. Additionally, as of June 30, 2026, we had borrowing capacity of approximately $3.2 billion under our credit facility (discussed below in “—Short-term Liquidity”). As discussed further below, we believe our cash flows from operating activities, cash position, and remaining borrowing capacity on our credit facility is more than adequate to allow us to manage our day-to-day cash requirements and anticipated obligations.

We have consistently generated substantial cash flows from operations, providing a source of funds of $3,451 million and $2,811 million in the first six months of 2026 and 2025, respectively. The period-to-period increase is discussed below in “—Cash Flows—Operating Activities.” We primarily rely on cash provided by operations to fund our operations as well as our debt service, sustaining capital expenditures, dividend payments, and our growth capital expenditures; however, we may access the debt capital markets from time to time to refinance our maturing long-term debt and finance incremental investments, if any. From time to time, short-term borrowings are used to fund working capital and finance incremental capital investments, if any. Incremental capital investments initially funded through short-term borrowings may periodically be replaced with long-term financing and/or paid down using retained cash from operations.

We use interest rate swap agreements to convert a portion of the underlying cash flows related to our long-term fixed-rate debt securities (senior notes) into variable-rate debt in order to achieve our desired mix of fixed and variable rate debt, as detailed below:

(In millions)

Variable rate debt(a)

$

$

Notional principal amount of fixed-to-variable interest rate swap agreements

Debt balances subject to variable interest rates

$

$

(a)Reflects outstanding commercial paper notes.

T8In March 2026, Moody’s Investor Services upgraded our long-term debt rating from Baa2 with a positive outlook to Baa1 with a stable outlook.

Short-term Liquidity

As of June 30, 2026, our principal sources of short-term liquidity are (i) cash from operations and (ii) our $3.5 billion credit facility, with an available capacity of approximately $3.2 billion, and an associated $3.5 billion commercial paper program. The loan commitments under our credit facility can be used for working capital and other general corporate purposes and as a backup to our commercial paper program. Commercial paper borrowings and letters of credit reduce borrowings allowed under our credit facility. We provide for liquidity by maintaining a sizable amount of excess borrowing capacity under our credit facility and, as previously discussed, have consistently generated strong cash flows from operations.

As of June 30, 2026, our $2,443 million of short-term debt consisted primarily of commercial paper borrowings and senior notes that mature in the next twelve months. We intend to fund our debt as it becomes due, primarily through credit facility borrowings, commercial paper borrowings, cash flows from operations, and/or issuing new long-term debt. Our short-term debt as of December 31, 2025 was $1,226 million.

We had working capital (defined as current assets less current liabilities) deficits of $3,059 million and $1,568 million as of June 30, 2026 and December 31, 2025, respectively. The overall $1,491 million unfavorable change from year-end 2025 was primarily due to (i) an $878 million increase in senior notes that mature in the next twelve months; (ii) a $325 million increase in commercial paper borrowings partly used to fund our Monument Pipeline acquisition; and (iii) a $310 million net unfavorable change in our accounts receivables and payables. Generally, our working capital varies due to factors such as the timing of scheduled debt payments, timing differences in the collection and payment of receivables and payables, the change in fair value of our derivative contracts, and changes in our cash and cash equivalents as a result of excess cash from operations after payments for investing and financing activities.

Capital Expenditures

We account for our capital expenditures in accordance with GAAP. Additionally, we distinguish between capital expenditures as follows:

Type of Expenditure

Physical Determination of Expenditure

Sustaining capital expenditures

•Investments to maintain the operational integrity and extend the useful life of our assets

Expansion capital expenditures (discretionary capital expenditures)

•Investments to expand throughput or capacity from that which existed immediately prior to the making or acquisition of additions or improvements

Budgeting of maintenance capital expenditures, which we refer to as sustaining capital expenditures, is done annually on a bottom-up basis. For each of our assets, we budget for and make those sustaining capital expenditures that are necessary to maintain safe and efficient operations, meet customer needs, and comply with our operating policies and applicable law. We may budget for and make additional sustaining capital expenditures that we expect to produce economic benefits such as increasing efficiency and/or lowering future expenses. Budgeting and approval of expansion capital expenditures generally occurs periodically throughout the year on a project-by-project basis in response to specific investment opportunities identified by our business segments from which we generally expect to receive sufficient returns to justify the expenditures.

Assets comprising expansion capital projects could result in additional sustaining capital expenditures over time. The need for sustaining capital expenditures in respect of newly constructed assets tends to be minimal initially and to increase over time as such assets age and experience wear and tear. Regardless of whether assets result from sustaining or expansion capital expenditures, once completed, the addition of such assets to our depreciable asset base will impact our calculation of depreciation, depletion and amortization over the remaining useful lives of the impacted or resulting assets.

Generally, the determination of whether a capital expenditure is classified as sustaining or as expansion capital expenditures is made on a project level. The classification of our capital expenditures as expansion capital expenditures or as sustaining capital expenditures is made consistent with our accounting policies and is generally a straightforward process, but in certain circumstances can be a matter of management judgment and discretion.

Our capital expenditures for the six months ended June 30, 2026, and the amount we expect to spend for the remainder of 2026 to sustain our assets and expand our business are as follows:

Six Months Ended

(In millions)

Capital expenditures:

Sustaining capital expenditures

$

$

$

Expansion capital expenditures

Accrued capital expenditures, contractor retainage, and other

—

—

Capital expenditures

$

$

$

Add:

Sustaining capital expenditures of unconsolidated joint ventures(a)

$

$

$

Investments in unconsolidated joint ventures(b)

Less: Consolidated joint venture partners’ sustaining capital expenditures

(3)

(6)

(9)

Less: Consolidated joint venture partners’ expansion capital expenditures

(4)

(2)

(6)

Less: Insurance reimbursement related to a sustaining capital expenditure

—

Acquisition

—

Accrued capital expenditures, contractor retainage, and other

—

—

Total capital investments

$

$

$

(a)Sustaining capital expenditures by our joint ventures generally do not require cash outlays by us.

(b)Reflects cash contributions to unconsolidated joint ventures. Also includes contributions to an unconsolidated joint venture that are netted within the amount the joint venture declares as a distribution to us.

Our capital investments consist of the following:

Six Months Ended

(In millions)

Sustaining capital investments

Capital expenditures for property, plant, and equipment

$

$

$

Sustaining capital expenditures of unconsolidated joint ventures(a)

Less: Consolidated joint venture partners’ sustaining capital expenditures

(3)

(6)

(9)

Less: Insurance reimbursement related to a sustaining capital expenditure

—

Total sustaining capital investments

Expansion capital investments

Capital expenditures for property, plant, and equipment

Investments in unconsolidated joint ventures(b)

Less: Consolidated joint venture partners’ expansion capital expenditures

(4)

(2)

(6)

Acquisition

—

Total expansion capital investments

Total capital investments

$

$

$

(a)Sustaining capital expenditures by our joint ventures generally do not require cash outlays by us.

(b)Reflects cash contributions to unconsolidated joint ventures. Also includes contributions to an unconsolidated joint venture that are netted within the amount the joint venture declares as a distribution to us.

Off Balance Sheet Arrangements

There have been no material changes in our obligations with respect to other entities that are not consolidated in our financial statements that would affect the disclosures presented as of December 31, 2025 in our 2025 Form 10-K.

Commitments for the purchase of property, plant, and equipment as of June 30, 2026 and December 31, 2025 were $1,499 million and $2,020 million, respectively, decreasing $521 million primarily related to projects advancing in our Natural Gas Pipelines business segment.

Cash Flows

The following table summarizes our net cash flows provided by (used in) operating, investing, and financing activities between 2026 and 2025:

Six Months Ended

Changes

(In millions)

Net Cash Provided by (Used in)

Operating activities

$

$

$

Investing activities

Financing activities

Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Deposits

$

$

$

Operating Activities

Net cash provided by operating activities was higher for the comparable six-month periods ended June 30, 2026 and 2025 driven by greater contributions across all of our business segments.

Investing Activities

$316 million more cash used in investing activities in the comparable six-month periods ended June 30, 2026 and 2025 is explained by the following discussion.

•a $373 million increase in capital expenditures primarily driven by expansion projects in our Natural Gas Pipelines business segment, partially offset by decreases in our Products Pipelines and CO2 business segments; and

•a $73 million increase in cash used for contributions to equity investees driven primarily by higher contributions to Southern Natural Gas Company, L.L.C. and Gulf Coast Express Pipeline LLC; partially offset by

•a $145 million reduction in cash used for acquisitions of assets, net of cash acquired, driven by $503 million of net cash used for the acquisition of Monument Pipeline system in the 2026 period, compared with $648 million of net cash used for the Outrigger Energy acquisition in the 2025 period; See Note 2 “Acquisitions” to our consolidated financial statements for further information regarding these two acquisitions.

Financing Activities

$297 million more cash used in financing activities in the comparable six-month periods ended June 30, 2026 and 2025 primarily driven by a reduction in debt raised for acquisitions.

Dividends

We expect to declare dividends of $1.19 per share on our stock for 2026. The table below reflects our 2026 dividends declared:

Three months ended

Total quarterly dividend per share for the period

Date of declaration

Date of record

Date of dividend

$

The actual amount of dividends to be paid on our capital stock will depend on many factors, including our financial condition and results of operations, liquidity requirements, business prospects, capital requirements, legal, regulatory and contractual constraints, tax laws, Delaware laws, and other factors. See Item 1A. “Risk Factors—Risks Related to Ownership of Our Capital Stock—The guidance we provide for our anticipated dividends is based on estimates. Circumstances may arise that lead to conflicts between using funds to pay anticipated dividends or to invest in our business.” of our 2025 Form 10-K. All of these matters will be taken into consideration by our board of directors when declaring dividends.

Our dividends are not cumulative. Consequently, if dividends on our stock are not paid at the intended levels, our stockholders are not entitled to receive those payments in the future. Our dividends generally will be paid on or about the 15th day of each February, May, August, and November.

Summarized Combined Financial Information for Guarantee of Securities of Subsidiaries

KMI and certain subsidiaries (Subsidiary Issuers) are issuers of certain debt securities. KMI and substantially all of KMI’s wholly owned domestic subsidiaries (Subsidiary Guarantors), are parties to a cross guarantee agreement whereby each party to the agreement unconditionally guarantees, jointly and severally, the payment of specified indebtedness of each other party to the agreement. Accordingly, with the exception of certain subsidiaries identified as subsidiary non-guarantors (Subsidiary Non-Guarantors), the parent issuer, Subsidiary Issuers, and Subsidiary Guarantors (the “Obligated Group”) are all guarantors of each series of our guaranteed debt (Guaranteed Notes). As a result of the cross guarantee agreement, holders of any of the Guaranteed Notes issued by KMI or a Subsidiary Issuer are in the same position with respect to the net assets and income of KMI and the Subsidiary Issuers and Guarantors.

In lieu of providing separate financial statements for the Obligated Group, we have presented the accompanying supplemental summarized combined income statement and balance sheet information for the Obligated Group based on Rule 13-01 of the SEC’s Regulation S-X. Also, see Exhibit 10.1 to this report “Cross Guarantee Agreement, dated as of November 26, 2014, among KMI and certain of its subsidiaries, with schedules updated as of June 30, 2026.”

All significant intercompany items among the Obligated Group have been eliminated in the supplemental summarized combined financial information. The Obligated Group’s investment balances in Subsidiary Non-Guarantors have been excluded from the supplemental summarized combined financial information. Significant intercompany balances and activity for the Obligated Group with other related parties, including Subsidiary Non-Guarantors (referred to as “affiliates”), are presented separately in the accompanying supplemental summarized combined financial information.

Excluding fair value adjustments, as of June 30, 2026 and December 31, 2025, the Obligated Group had $31,462 million and $31,153 million, respectively, of Guaranteed Notes outstanding.

Summarized combined balance sheet and income statement information for the Obligated Group follows:

Summarized Combined Balance Sheet Information

(In millions)

Current assets

$

$

Current assets - affiliates

Noncurrent assets

Noncurrent assets - affiliates

Total Assets

$

$

Current liabilities

$

$

Current liabilities - affiliates

Noncurrent liabilities

Noncurrent liabilities - affiliates

Total Liabilities

Kinder Morgan, Inc.’s stockholders’ equity

Total Liabilities and Stockholders’ Equity

$

$

Summarized Combined Income Statement Information

Three Months Ended

Six Months Ended

(In millions)

Revenues

$

$

Operating income

Net income