KINDER MORGAN, INC. (KMI)

CIK: 0001506307. SIC: 4922 Natural Gas Transmission. Latest 10-K as of: 2026-02-13.

SIC breadcrumb: Transportation, Communications, Electric, Gas, And Sanitary Services > Electric, Gas, And Sanitary Services > SIC 4922 Natural Gas Transmission

SEC company page: https://www.sec.gov/edgar/browse/?CIK=1506307. Latest filing source: 0001506307-26-000011.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-13. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001506307.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

Financial Charts

Macro Cross-References

• CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
• UNRATE - Unemployment Rate
• FEDFUNDS - Federal Funds Effective Rate
• CES0500000003 - Average Hourly Earnings of All Employees, Total Private
• DFEDTARU - Federal Funds Target Range - Upper Limit
• DFEDTARL - Federal Funds Target Range - Lower Limit
• DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
• DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
• DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
• DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
• PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
• PPIACO - Producer Price Index by Commodity: All Commodities
• T10YIE - 10-Year Breakeven Inflation Rate
• U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
• PAYEMS - All Employees, Total Nonfarm
• CIVPART - Labor Force Participation Rate
• EMRATIO - Employment-Population Ratio
• UNEMPLOY - Unemployed
• CE16OV - Employment Level
• ICSA - Initial Claims
• JTSJOL - Job Openings: Total Nonfarm
• JTSQUR - Quits: Total Nonfarm
• GDPC1 - Real Gross Domestic Product
• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
• INDPRO - Industrial Production: Total Index
• TCU - Capacity Utilization: Total Index
• HOUST - New Privately-Owned Housing Units Started: Total Units
• PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
• RSAFS - Advance Retail Sales: Retail Trade
• PCE - Personal Consumption Expenditures
• DSPIC96 - Real Disposable Personal Income
• PSAVERT - Personal Saving Rate
• M2SL - M2
• BOPGSTB - U.S. International Trade in Goods and Services: Balance

Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2026-02-13. Report date: 2025-12-31.

Item 7.  Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis should be read in conjunction with our consolidated financial statements and the notes thereto. We prepared our consolidated financial statements in accordance with GAAP. Additional sections in this report which should be helpful to the reading of our discussion and analysis include the following: (i) a description of our business strategy found in Items 1 and 2. “Business and Properties—Narrative Description of Business—Business Strategy;” (ii) a description of developments during 2025, found in Items 1 and 2. “Business and Properties—General Development of Business—Recent Developments;” (iii) a description of terms for services and commodities we provide, found in Items 1 and 2.

“Business and Properties—Narrative Description of Business—Business Segments;” (iv) a description of risk factors affecting us and our business, found in Item 1A. “Risk Factors;” and (v) a discussion of forward-looking statements, found in “Information Regarding Forward-Looking Statements” at the beginning of this report.

A comparative discussion of our 2024 to 2023 operating results can be found in Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations” included in our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 13, 2025.

General

Acquisition and Divestiture

Following are an acquisition and a divestiture we made during the 2025 reporting period. See Note 3 “Acquisitions and Divestitures” to our consolidated financial statements for further information on these transactions.

Event

Description

Business Segment

EagleHawk divestiture

$382 million

(December 2025)

We sold our 25% equity interest in EagleHawk.

Natural Gas Pipelines

(Midstream)

Outrigger Energy acquisition

$648 million

(February 2025)

Natural gas gathering and processing system in North Dakota from Outrigger Energy II LLC which includes a 0.27 Bcf/d processing facility and a 104-mile, large-diameter, high-pressure rich gas gathering header pipeline with 0.35 Bcf/d of capacity connecting supplies from the Williston Basin area to high-demand markets.

Natural Gas Pipelines

(Midstream)

2026 Dividends and Discretionary Capital

We expect to declare dividends of $1.19 per share for 2026, a 2% increase from the 2025 declared dividends of $1.17 per share. Excluding our recently divested interest in EagleHawk, we also expect to invest almost $3.3 billion in expansion projects and contributions to joint ventures, or discretionary capital expenditures, 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. Please read

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“Information Regarding Forward-Looking Statements” at the beginning of this report and Item 1A. “Risk Factors” for more information.

Critical Accounting Estimates

Critical accounting estimates and assumptions involve material levels of subjectivity and complex judgment to account for highly uncertain matters or matters with a high susceptibility to change, and could result in a material impact to our financial statements. Examples of certain areas that require more judgment relative to others when preparing our consolidated financial statements and related disclosures include our use of estimates in determining (i) revenue recognition; (ii) income taxes; (iii) the economic useful lives of our assets and related depreciation and depletion rates; (iv) the fair values used in (a) assignment of the purchase price for a business acquisition, (b) calculations of possible asset and equity investment impairment charges, (c) calculation for the annual goodwill impairment test (or interim tests if triggered), and (d) recording derivative contract assets and liabilities; (v) reserves for environmental claims, legal fees, transportation rate cases, and other litigation liabilities; (vi) provisions for credit losses; and (vii) exposures under contractual indemnifications. We routinely evaluate these estimates, utilizing historical experience, consultation with experts and other methods we consider reasonable in the particular circumstances. Nevertheless, actual results may differ significantly from our estimates, and any effects on our business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known.

For a summary of our significant accounting policies, see Note 2 “Summary of Significant Accounting Policies” to our consolidated financial statements and the following discussion for further information regarding critical accounting estimates and assumptions used in the preparation of our financial statements. For discussion on our hedging activities and related sensitivities to our estimates, see Note 13 “Risk Management” to our consolidated financial statements and Item 7A. “Quantitative and Qualitative Disclosures About Market Risk,” respectively.

Impairments

In addition to our annual goodwill impairment testing, we evaluate our goodwill, long-lived assets, and equity method investments for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Management applies judgment in assessing whether such triggering events have occurred.

Impairment testing requires estimating fair value, which involves the use of significant estimates and assumptions regarding the timing and amounts of future cash inflows and outflows, commodity prices, discount rates, market multiples, and asset lives, among other items and as applicable. These estimates can be affected by a variety of factors, including external factors such as industry and macroeconomic conditions, and internal factors such as changes in our business strategy and our internal forecasts. We base our fair value estimates on projected financial information which we believe to be reasonable. However, actual results may differ from these projections. An estimate of the sensitivity to changes in underlying assumptions of a fair value calculation is not practicable, given the numerous assumptions that can materially affect our estimates.

Although we did not identify any triggering events during 2025, we may identify factors in the future that require further evaluation, which could lead to future impairment charges that could have a significant effect on our results of operations.

Environmental Matters

With respect to our environmental exposure, we utilize both internal staff and external experts to assist us in identifying environmental issues and in estimating the costs and timing of remediation efforts. Our accrual of environmental liabilities often coincides either with our completion of a feasibility study or our commitment to a formal plan of action, but generally, we recognize and/or adjust our probable environmental liabilities, if necessary or appropriate, following quarterly reviews of potential environmental issues and claims that could impact our assets or operations. In recording and adjusting environmental liabilities, we consider the effect of environmental compliance, pending legal actions against us, and potential third-party liability claims. For more information on environmental matters, see Part I, Items 1 and 2. “Business and Properties—Narrative Description of Business—Environmental Matters.” For more information on our environmental disclosures, see Note 17 “Litigation and Environmental” to our consolidated financial statements.

Legal and Regulatory Matters

Many of our operations are regulated by various U.S. regulatory bodies, and we are subject to legal and regulatory matters as a result of our business operations and transactions. We utilize both internal and external counsel in evaluating our potential exposure to adverse outcomes from orders, judgments, or settlements. Any such liability recorded is revised as better information becomes available. Accordingly, to the extent that actual outcomes differ from our estimates, or additional facts

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and circumstances cause us to revise our estimates, our earnings will be affected. For more information on regulatory matters, see Part I, Items 1 and 2. “Business and Properties—Narrative Description of Business—Industry Regulation.” For more information on legal proceedings, see Note 17 “Litigation and Environmental” to our consolidated financial statements.

Employee Benefit Plans

Our pension and other postretirement benefits (OPEB) obligations and net benefit costs are primarily based on actuarial calculations. A significant assumption we utilize is the discount rate used in calculating our benefit obligations. The selection of assumptions used in the actuarial calculations of our pension and OPEB plans is further discussed in Note 9 “Share-based Compensation and Employee Benefits” to our consolidated financial statements.

Actual results may differ from the assumptions included in these calculations, and as a result, our estimates associated with our pension and OPEB obligations can be, and have been revised in subsequent periods. The income statement impact of the changes in the assumptions on our related benefit obligations are deferred and amortized into income over either the period of expected future service of active participants, or over the expected future lives of inactive plan participants.

The following sensitivity analysis shows the estimated impact of a 1% change in the primary assumptions used in our actuarial calculations associated with our pension and OPEB plans for the year ended December 31, 2025:

Pension Benefits

OPEB

Net benefit cost (credit)

Funded status

Net benefit cost (credit)

Funded status(a)

(In millions)

One percent increase in:

Discount rates

$

(1)

$

118 

$

— 

$

9 

Expected return on plan assets

(16)

— 

(3)

— 

Rate of compensation increase

2 

(10)

— 

— 

One percent decrease in:

Discount rates

9 

(136)

— 

(10)

Expected return on plan assets

16 

— 

3 

— 

Rate of compensation increase

(2)

9 

— 

— 

(a)Includes amounts deferred as either accumulated other comprehensive income (loss) or as a regulatory asset or liability for certain of our regulated operations.

Income Taxes

We make significant judgments and estimates in determining our provision for income taxes, including our assessment of our income tax positions given the uncertainties involved in the interpretation and application of complex tax laws and regulations in various taxing jurisdictions. Numerous and complex judgments and assumptions are inherent in the estimation of future taxable income when determining a valuation allowance, including factors such as future operating conditions and the apportionment of income by state. For more information, see Note 4 “Income Taxes” to our consolidated financial statements.

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 15 “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, and amortization of basis differences related to our joint ventures (previously known as amortization of excess cost of equity investments) (EBITDA), and Net Debt.

Effective January 1, 2025, amortization of basis differences related to our joint ventures (previously known as amortization of excess cost of equity investments) is included within “Earnings from equity investments” in our accompanying consolidated statements of income for the years ended December 31, 2025, 2024, and 2023, and therefore is included within Segment

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EBDA. As a result, Segment EBDA for the year ended December 31, 2024 has been adjusted to conform to the current presentation in the following MD&A tables. The adjustments were not material.

GAAP Financial Measures

The Consolidated Earnings Results for the years ended December 31, 2025 and 2024 present Net income attributable to Kinder Morgan, Inc., as prepared and presented in accordance with GAAP, and Segment EBDA, which is disclosed in Note 15 “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

Our 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 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 years ended December 31, 2025 and 2024, which are also described in more detail in the footnotes to tables included in “—Segment Earnings Results” below.

Year Ended December 31,

2025

2024

(In millions)

Certain Items

Risk management activities(a)(b)

$

(29)

$

72 

Gain on divestitures(c)

(123)

(69)

Income tax Certain Items(d)

(2)

(52)

Other

(3)

7 

Total Certain Items(e)

$

(157)

$

(42)

(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)2025 amount represents a gain on the sale of our equity interest in EagleHawk. 2024 amount represents gains of $40 million and $29 million, respectively, on divestitures of CO2 and Oklahoma midstream assets.

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(d)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.

(e)2025 and 2024 amounts include $13 million and $(5) million, respectively, reported within “Interest, net” on the accompanying consolidated statements 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, and 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

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“Noncontrolling interests,” respectively. The calculation of Adjusted EBITDA related to our unconsolidated and consolidated joint ventures include DD&A, amortization of basis differences, 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 December 31, 2025, by subtracting the following amounts from our debt balance of $32,003 million: (i) cash and cash equivalents of $63 million; (ii) debt fair value adjustments of $180 million; and (iii) the foreign exchange impact on Euro-denominated bonds of $44 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.

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Consolidated Earnings Results

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

Year Ended December 31,

2025

2024

Earnings

increase/(decrease)

(In millions, except per share amounts and percentages)

Revenues

$

16,937 

$

15,100 

$

1,837 

12 

%

Operating Costs, Expenses, and Other

Costs of sales (exclusive of items shown separately below)

(5,529)

(4,337)

(1,192)

(27)

%

Operations and maintenance

(3,057)

(2,972)

(85)

(3)

%

DD&A

(2,453)

(2,354)

(99)

(4)

%

General and administrative

(744)

(712)

(32)

(4)

%

Taxes, other than income taxes

(445)

(433)

(12)

(3)

%

Other income, net

15 

92 

(77)

(84)

%

Total Operating Costs, Expenses, and Other

(12,213)

(10,716)

(1,497)

(14)

%

Operating Income

4,724 

4,384 

340 

8 

%

Other Income (Expense)

Earnings from equity investments

896 

840 

56 

7 

%

Interest, net

(1,801)

(1,844)

43 

2 

%

Other, net

173 

27 

146 

541 

%

Total Other Expense

(732)

(977)

245 

25 

%

Income Before Income Taxes

3,992 

3,407 

585 

17 

%

Income Tax Expense

(832)

(687)

(145)

(21)

%

Net Income

3,160 

2,720 

440 

16 

%

Net Income Attributable to Noncontrolling Interests

(104)

(107)

3 

3 

%

Net Income Attributable to Kinder Morgan, Inc.

$

3,056 

$

2,613 

$

443 

17 

%

Basic and diluted earnings per share

$

1.37 

$

1.17 

$

0.20 

17 

%

Basic and diluted weighted average shares outstanding

2,223 

2,220 

3 

— 

%

Declared dividends per share

$

1.17 

$

1.15 

$

0.02 

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 years ended 2025 and 2024:

Revenues

Revenues increased $1,837 million in 2025 compared to 2024. The increase was primarily due to (i) an increase in natural gas sales of $1,609 million due to higher commodity prices and volumes and (ii) an increase in services revenues of $507 million resulting from higher volumes, primarily driven by increased demand for services and expansion projects placed into service, higher rates, and the Outrigger Energy assets acquired in February 2025. Revenues were further increased by $99 million for the impacts of derivative contracts used to hedge commodity sales. These increases in revenues were partially offset

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by decreased product sales of $423 million, driven by lower commodity prices partially offset by higher volumes, and asset divestitures in 2024. The increase in sales revenues had a corresponding increase 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 $1,192 million in 2025 compared to 2024. The increase, which is net of the impact of our divested assets, was primarily due to higher costs of sales for natural gas of $1,481 million primarily due to higher commodity prices and volumes. The increase was partially offset by (i) lower costs of sales for products of $281 million driven by lower commodity prices partially offset by higher volumes and (ii) a decrease of $51 million related to derivative contracts used to hedge commodity purchases.

Operations and Maintenance

Operations and maintenance increased $85 million in 2025 compared to 2024. Increased costs were primarily driven by greater activity levels, including from expansions, and inflation, including labor costs.

Other Income, net

Other income, net decreased $77 million in 2025 compared to 2024. The decrease was primarily the result of gains on the divestitures of CO2 assets and of Oklahoma midstream assets in 2024.

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 $43 million in 2025 compared to 2024. The decrease was primarily due to lower interest rates associated with our fixed-to-variable interest rate swap agreements partially offset by higher average balances and interest rates on our long-term debt.

Other, net

Other, net increased $146 million in 2025 compared to 2024. The increase was primarily the result of a gain on the sale of our equity interest in EagleHawk in 2025.

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Non-GAAP Financial Measures

Reconciliations from Net Income Attributable to Kinder Morgan, Inc.

Year Ended December 31,

2025

2024

(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.

$

3,056 

$

2,613 

Certain Items(a)

Risk management activities

(29)

72 

Gain on divestitures

(123)

(69)

Income tax Certain Items

(2)

(52)

Other

(3)

7 

Total Certain Items

(157)

(42)

Adjusted Net Income Attributable to Kinder Morgan, Inc.

$

2,899 

$

2,571 

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

Net income attributable to Kinder Morgan, Inc.

$

3,056 

$

2,613 

Total Certain Items(b)

(157)

(42)

Net income allocated to participating securities and other(c)

(15)

(14)

Adjusted Net Income Attributable to Common Stock

$

2,884 

$

2,557 

Adjusted EPS

$

1.30 

$

1.15 

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

Net income attributable to Kinder Morgan, Inc.

$

3,056 

$

2,613 

Total Certain Items(b)

(157)

(42)

DD&A

2,453 

2,354 

Income tax expense(d)

834 

739 

Interest, net(e)

1,788 

1,849 

Amounts associated with joint ventures

Unconsolidated joint venture DD&A(f)

391 

409 

Remove consolidated joint venture partners’ DD&A

(63)

(62)

Unconsolidated joint venture income tax expense(g)

89 

78 

Adjusted EBITDA

$

8,391 

$

7,938 

(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 includes Adjusted net income in excess of distributions for participating securities of $1 million for each of the 2025 and 2024 periods.

(d)To avoid duplication, adjustments for income tax expense for 2025 and 2024 exclude $(2) million and $(52) million, 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 2025 and 2024 exclude $13 million and $(5) 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 which was previously presented separately as amortization of excess cost of equity investments.

(g)Includes the tax provision on Certain Items recognized by the investees that are taxable entities associated with our Citrus, NGPL Holdings, 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.

48

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

Year Ended December 31,

2025

2024

(In millions)

Adjusted Net Income Attributable to Kinder Morgan, Inc.

$

2,899 

$

2,571 

Adjusted EBITDA

8,391 

7,938 

Change from prior period

Increase/(Decrease)

Adjusted Net Income Attributable to Kinder Morgan, Inc.

$

328 

Adjusted EBITDA

$

453 

Adjusted Net Income Attributable to Kinder Morgan, Inc. increased $328 million in 2025 compared to 2024. The increase resulted primarily from favorable earnings in our Natural Gas Pipelines and Terminals business segments partially offset by unfavorable earnings in our CO2 business segment, which were also primary drivers of the increase in Adjusted EBITDA of $453 million.

General and Administrative and Corporate Charges

Year Ended December 31,

2025

2024

(In millions)

General and administrative

$

(744)

$

(712)

Corporate charges

(2)

(24)

Certain Items(a)

1 

7 

General and administrative and corporate charges

$

(745)

$

(729)

Change from prior period

Earnings increase/(decrease)

General and administrative

$

(32)

Corporate charges

22 

Total

$

(10)

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

General and administrative expenses increased $32 million and corporate charges decreased $22 million in 2025 compared to 2024. The combined changes primarily include higher benefit-related and labor costs partially offset by lower pension costs.

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Segment Earnings Results

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

Year Ended December 31,

2025

2024

(In millions, except operating statistics)

Revenues

$

11,009 

$

8,942 

Costs of sales

(4,299)

(2,837)

Other operating expenses(a)

(1,606)

(1,519)

Other income

8 

47 

Earnings from equity investments

817 

748 

Other, net

151 

12 

Segment EBDA

6,080 

5,393 

Certain Items:

Risk management activities

(39)

75 

Gain on divestitures

(123)

(29)

Other

(4)

— 

Certain Items(b)

(166)

46 

Adjusted Segment EBDA

$

5,914 

$

5,439 

Change from prior period

Increase/(Decrease)

Segment EBDA

$

687 

Adjusted Segment EBDA

$

475 

Volumetric data(c)

Natural Gas Transport (BBtu/d)

46,603 

44,252 

Natural Gas Sales (BBtu/d)

3,302 

2,627 

Gathering (BBtu/d)

4,025 

3,862 

NGL Transport (MBbl/d)

38 

38 

(a)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. 2025 and 2024 Certain Items of (i) $(162) million and $46 million, respectively, are associated with our Midstream business and (ii) $(4) million for the 2025 period is 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.

50

Below are the changes in Natural Gas Pipelines Segment EBDA:

Year Ended December 31,

2025

2024

Increase/(Decrease)

(In millions)

Midstream

$

2,278 

$

1,783 

$

495 

East

2,821 

2,660 

161 

West

981 

950 

31 

Total Natural Gas Pipelines

$

6,080 

$

5,393 

$

687 

The changes in Natural Gas Pipelines Segment EBDA in the comparable years of 2025 and 2024 are explained by the following discussion:

•The $495 million (28%) increase in Midstream was primarily driven by (i) on our Texas intrastate systems, completed expansion projects and increased sales margins resulting from higher commodity prices and volumes partially reduced by decreased realized gains on sales hedges; (ii) contributions from the acquired Outrigger Energy assets on our Hiland Midstream assets; and (iii) higher gathering rates on KinderHawk. Overall, Midstream’s revenue changes are partially offset by corresponding changes in costs of sales.

In addition, the increase in Midstream includes a gain on the sale of our equity interest in EagleHawk in 2025 and increased revenues and decreased 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, partially offset by a gain on sale of our Oklahoma assets in the 2024 period, all of which we treated as Certain Items.

•The $161 million (6%) increase in East was primarily driven by, on TGP, (i) completed expansion projects; (ii) higher services demand due to weather and higher LNG exports and power demand; (iii) higher park and loan demand due to market volatility; and (iv) lower legal costs, partially offset by higher pipeline maintenance costs. The increase was further driven by higher equity earnings from (i) MEP resulting from increased rates; (ii) Citrus primarily driven by projects that went into service; and (iii) NGPL primarily as a result of higher volumes and rates and expansion projects, partially offset by an expired customer agreement on our Stagecoach assets and lower equity earnings from SNG primarily driven by higher operating and legal costs.

•The $31 million (3%) increase in West resulted primarily from increased demand for services on CPGPL.

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

Year Ended December 31,

2025

2024

(In millions, except operating statistics)

Revenues

$

2,686 

$

2,955 

Costs of sales

(1,112)

(1,394)

Other operating expenses(a)

(476)

(456)

Other income

1 

1 

Earnings from equity investments

58 

57 

Other, net

— 

1 

Segment EBDA

1,157 

1,164 

Certain Items:

Risk management activities

1 

— 

Certain Items(b)

1 

— 

Adjusted Segment EBDA

$

1,158 

$

1,164 

Change from prior period

Increase/(Decrease)

Segment EBDA

$

(7)

Adjusted Segment EBDA

$

(6)

Volumetric data(c)

Gasoline(d)

970 

980 

Diesel fuel

359 

352 

Jet fuel

307 

300 

Total refined product volumes

1,636 

1,632 

Crude and condensate

465 

471 

Total delivery volumes (MBbl/d)

2,101 

2,103 

(a)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. 2025 Certain Items are associated with our Southeast Refined Products 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:

Year Ended December 31,

2025

2024

Increase/(Decrease)

(In millions)

Crude and Condensate

$

236 

$

280 

$

(44)

West Coast Refined Products

628 

604 

24 

Southeast Refined Products

293 

280 

13 

Total Products Pipelines

$

1,157 

$

1,164 

$

(7)

The changes in Products Pipelines Segment EBDA in the comparable years of 2025 and 2024 are explained by the following discussion:

•The $44 million (16%) decrease in Crude and Condensate was driven by the expiration of legacy crude contracts in

52

advance of the Double H pipeline conversion to NGL service on our Bakken Crude assets, lower margin from our Crude and Condensate business resulting primarily from decreased spreads, and a planned ten-year turnaround in the first quarter 2025 at our KM Condensate Processing facility.

•The $24 million (4%) increase in West Coast Refined Products resulted from higher rates at our West Coast Terminals, and Pacific operations, partially offset by higher pipeline maintenance costs and unfavorable changes in product gains.

•The $13 million (5%) increase in Southeast Refined Products was primarily driven by higher volumes and rates on Central Florida Pipeline LLC and lower prices on costs of sales at our Transmix processing operations.

53

Terminals

Year Ended December 31,

2025

2024

(In millions, except operating statistics)

Revenues

$

2,104

$

2,022

Costs of sales

(50)

(42)

Other operating expenses(a)

(915)

(904)

Other income

4

5

(Loss) earnings from equity investments

(2)

8

Other, net

2

10

Segment EBDA

$

1,143

$

1,099

Change from prior period

Increase/(Decrease)

Segment EBDA

$

44 

Volumetric data(b)

Liquids leasable capacity (MMBbl)

78.7 

78.6 

Liquids utilization %(c)

94.1 

%

94.6 

%

Bulk transload tonnage (MMtons)

49.5 

53.7 

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

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

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

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

Below are the changes in Terminals Segment EBDA:

Year Ended December 31,

2025

2024

Increase/(Decrease)

(In millions)

Jones Act tankers

$

240 

$

195 

$

45 

Liquids

656 

633 

23 

Bulk

247 

267 

(20)

Other

— 

4 

(4)

Total Terminals

$

1,143 

$

1,099 

$

44 

The changes in Terminals Segment EBDA in the comparable years of 2025 and 2024 are explained by the following discussion:

•The $45 million (23%) increase in Jones Act tankers was primarily due to higher average charter rates.

•The $23 million (4%) increase in Liquids was driven by higher rates and ancillary fees at our Houston Ship Channel facilities and contributions from expansion projects, partially offset by lower equity earnings resulting from an impairment of an equity investment in the 2025 period.

•The $20 million (7%) decrease in Bulk was primarily driven by the impact of the 2025 closure of LyondellBasell’s Houston refinery on our petroleum coke handling operations partially offset by decreased demurrage costs at our International Marine Terminal.

54

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

Year Ended December 31,

2025

2024

(In millions, except operating statistics)

Revenues

$

1,170 

$

1,204 

Costs of sales

(94)

(82)

Other operating expenses(a)

(487)

(504)

Other income

— 

40 

Earnings from equity investments

23 

27 

Segment EBDA

612 

685 

Certain Items:

Risk management activities

(4)

2 

Gain on divestitures

— 

(40)

Certain Items(b)

(4)

(38)

Adjusted Segment EBDA

$

608 

$

647 

Change from prior period

Increase/(Decrease)

Segment EBDA

$

(73)

Adjusted Segment EBDA

$

(39)

Volumetric data(c)

SACROC oil production

18.70 

19.01 

Yates oil production

5.95 

6.13 

Other

1.11 

1.17 

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

25.76 

26.31 

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

8.97 

8.56 

CO2 sales volumes, net (Bcf/d)

0.297 

0.322 

RNG sales volumes (BBtu/d)

11 

9 

Realized weighted average oil price ($ per Bbl)

$

67.51 

$

68.46 

Realized weighted average NGL price ($ per Bbl)

$

32.43 

$

30.83 

(a)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. 2025 and 2024 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)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.

(d)Net of royalties and outside working interests.

55

Below are the changes in CO2 Segment EBDA:

Year Ended December 31,

2025

2024

Increase/(Decrease)

(In millions)

Source and Transportation activities

$

155 

$

193 

$

(38)

Oil and Gas Producing activities

414 

447 

(33)

Subtotal

569 

640 

(71)

Energy Transition Ventures

43 

45 

(2)

Total CO2

$

612 

$

685 

$

(73)

The changes in CO2 Segment EBDA in the comparable years of 2025 and 2024 are explained by the following discussion:

•The $38 million (20%) decrease in Source and Transportation activities was driven by lower realized CO2 sales prices and volumes partially offset by, on our Wink pipeline, higher volumes.

•The $33 million (7%) decrease in Oil and Gas Producing activities was driven by a $40 million gain on sale of oil and gas producing fields in the 2024 period and non-cash mark-to-market derivative hedge contracts, which increased revenues, all of which we treated as Certain Items.

In addition, Oil and Gas Producing activities had favorable contributions due to (i) higher realized NGL prices and volumes; (ii) lower power costs; and (iii) assets acquired in June 2024, partially offset by lower crude oil volumes and assets divested in June 2024.

•The $2 million (4%) decrease in Energy Transition Ventures activities was primarily due to lower RIN sales prices and higher operating and maintenance costs offset by higher RIN sales volumes generated from our RNG business.

We believe that our existing hedge contracts in place within our CO2 business segment substantially mitigate commodity price sensitivities in the near-term and to lesser extent over the following few years from price exposure. Below is a summary of our CO2 business segment hedges outstanding as of December 31, 2025.

2026

2027

2028

Crude Oil(a)

Price ($ per Bbl)

$

64.34 

$

64.13 

$

64.51 

Volume (MBbl/d)

21.60 

12.20 

4.00 

NGL

Price ($ per Bbl)

$

42.60 

Volume (MBbl/d)

2.56 

(a)Includes WTI.

Liquidity and Capital Resources

General

As of December 31, 2025, we had $63 million of “Cash and cash equivalents,” a decrease of $25 million from December 31, 2024. Additionally, as of December 31, 2025, we had borrowing capacity of approximately $3,477 million 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 flow from operations, providing a source of funds of $5,917 million and $5,635 million in 2025 and 2024, respectively. The year-to-year 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,

56

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. In aggregate, we repaid $1,500 million and issued $1,850 million of senior notes in 2025.

Our board of directors declared a quarterly dividend of $0.2925 per share for the fourth quarter of 2025, consistent with previous quarters in 2025. The total of the dividends declared for 2025 of $1.17 represents a 2% increase over total dividends declared for 2024.

For additional information about our outstanding senior notes and debt-related transactions in 2025, see Note 8 “Debt” to our consolidated financial statements. For information about our interest rate risk, see Note 13 “Risk Management—Interest Rate Risk Management” to our consolidated financial statements and Item 7A. “Quantitative and Qualitative Disclosures About Market Risk—Interest Rate Risk.”

Short-term Liquidity

As of December 31, 2025, 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 $3,477 million 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 December 31, 2025, our $1,226 million of short-term debt consisted primarily of 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, 2024 was $2,009 million.

We had working capital (defined as current assets less current liabilities) deficits of $1,568 million and $2,580 million as of December 31, 2025 and 2024, respectively. The overall $1,012 million favorable change from year-end 2024 was primarily due to (i) a $425 million decrease in current maturities of senior notes; (ii) a $318 million decrease in commercial paper borrowings partly due to repayments made using proceeds received from our Eaglehawk divestiture in 2025; (iii) a $195 million net favorable change in our accounts receivables and payables; and (iv) a $140 million favorable change in fair value of our short-term derivative contract assets and liabilities. 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 (discussed below in “—Long-term Financing” and “—Capital Expenditures”).

We employ a centralized cash management program for our U.S.-based bank accounts that concentrates the cash assets of our wholly owned subsidiaries in joint accounts for the purpose of providing financial flexibility and lowering the cost of borrowing. These programs provide that funds in excess of the daily needs of our wholly owned subsidiaries are concentrated, consolidated or otherwise made available for use by other entities within the consolidated group. We place no material restrictions on the ability to move cash between entities, payment of intercompany balances, or the ability to upstream dividends to KMI other than restrictions that may be contained in agreements governing the indebtedness of those entities.

Credit Ratings and Capital Market Liquidity

We believe that our capital structure will continue to allow us to achieve our business objectives. We expect that our short-term liquidity needs will be met primarily through retained cash from operations or short-term borrowings. Generally, we anticipate re-financing maturing long-term debt obligations in the debt capital markets and are therefore subject to certain market conditions which could result in higher costs or negatively affect our and/or our subsidiaries’ credit ratings. A decrease in our credit ratings could negatively impact our borrowing costs and could limit our access to capital.

57

The following table represents our debt ratings as of December 31, 2025.

Rating agency

Short-term rating

Long-term rating

Outlook

Standard and Poor’s(a)

A-2

BBB

Positive

Moody’s Investor Services

Prime-2

Baa2

Positive

Fitch Ratings, Inc.

F2

BBB+

Stable

(a)On January 13, 2026, Standard and Poor’s upgraded our long-term rating to BBB+.

Long-term Financing

Our equity consists of Class P common stock with a par value of $0.01 per share. We do not expect to need to access the equity capital markets to fund our discretionary capital investments for the foreseeable future. See also “—Dividends and Stock Buy-back Program” below for additional discussion related to our dividends and stock buy-back program.

From time to time, we issue long-term debt securities, often referred to as senior notes. Our senior notes issued to date, other than those issued by certain of our subsidiaries, generally have very similar terms, except for interest rates, maturity dates, and prepayment premiums. All of our fixed rate senior notes provide that the notes may be redeemed at any time at a price equal to 100% of the principal amount of the notes plus accrued interest to the redemption date, and, in most cases, plus a make-whole premium. In addition, from time to time, our subsidiaries issue long-term debt securities. 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. We and almost all of our direct and indirect wholly owned domestic subsidiaries are parties to a cross guaranty wherein each party guarantees each other party’s debt. See “—Summarized Combined Financial Information for Guarantee of Securities of Subsidiaries.” As of December 31, 2025 and 2024, the aggregate principal amount outstanding of our various long-term debt obligations (excluding current maturities) was $30,597 million and $29,779 million, respectively.

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 but tends 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.

58

Our capital expenditures for the year ended December 31, 2025, and the amount we expect to spend for 2026 to sustain our assets and expand our business are as follows:

2025

Expected 2026(a)

(In millions)

Capital expenditures:

Sustaining capital expenditures

$

951 

$

944 

Expansion capital expenditures

2,030 

2,975 

Accrued capital expenditures, contractor retainage, and other

45 

— 

Capital expenditures

$

3,026 

$

3,919 

Add:

Sustaining capital expenditures of unconsolidated joint ventures(b)

$

175 

$

177 

Investments in unconsolidated joint ventures(c)

215 

376 

Less: Consolidated joint venture partners’ sustaining capital expenditures

(9)

(9)

Less: Consolidated joint venture partners’ expansion capital expenditures

(8)

(6)

Less: Insurance reimbursement related to a sustaining capital expenditure

(14)

— 

Acquisition

648 

— 

Accrued capital expenditures, contractor retainage, and other

(45)

— 

Total capital investments

$

3,988 

$

4,457 

(a)Excludes capital expenditures from our divested EagleHawk assets, which were included in our preliminary budget but subsequently divested.

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

(c)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:

2025

Expected 2026(a)

(In millions)

Sustaining capital investments

Capital expenditures for property, plant, and equipment

$

951 

$

944 

Sustaining capital expenditures of unconsolidated joint ventures(b)

175 

177 

Less: Consolidated joint venture partners’ sustaining capital expenditures

(9)

(9)

Less: Insurance reimbursement related to a sustaining capital expenditure

(14)

— 

Total sustaining capital investments

1,103 

1,112 

Expansion capital investments

Capital expenditures for property, plant, and equipment

2,030 

2,975 

Investments in unconsolidated joint ventures(c)

215 

376 

Less: Consolidated joint venture partners’ expansion capital expenditures

(8)

(6)

Acquisition

648 

— 

Total expansion capital investments

2,885 

3,345 

Total capital investments

$

3,988 

$

4,457 

(a)Excludes capital expenditures from our divested EagleHawk assets, which were included in our preliminary budget but subsequently divested.

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

(c)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.

59

Off Balance Sheet Arrangements

We have invested in entities that are not consolidated in our financial statements. For information on our obligations with respect to these investments, as well as our obligations with respect to related letters of credit, see Note 12 “Commitments and Contingent Liabilities” to our consolidated financial statements. Additional information regarding the nature and business purpose of our investments is included in Note 6 “Investments” to our consolidated financial statements.

Contractual Obligations and Commercial Commitments

The table below provides a summary of our material cash requirements.

Payments due by period

Total

Less than 

1 year

1-3 years

3-5 years

More than

 5 years

(In millions)

Contractual obligations:

Debt borrowings-principal payments(a)

$

31,823 

$

1,226 

$

2,809 

$

4,148 

$

23,640 

Interest payments(b)

20,042 

1,736 

3,291 

2,926 

12,089 

Lease obligations(c)

278 

59 

68 

46 

105 

Pension and OPEB plans(d)

243 

75 

28 

24 

116 

Transportation, volume and storage agreements(e)

1,390 

189 

294 

239 

668 

Other obligations(f)

272 

71 

61 

43 

97 

Total

$

54,048 

$

3,356 

$

6,551 

$

7,426 

$

36,715 

Other commercial commitments:

Standby letters of credit(g)

$

89 

$

86 

$

3 

Capital expenditures(h)

$

2,020 

$

1,305 

$

214 

$

501 

(a)See Note 8 “Debt” to our consolidated financial statements.

(b)Interest payment obligations exclude adjustments for interest rate swap agreements and assume no change in variable interest rates from those in effect at December 31, 2025.

(c)Represents commitments pursuant to the terms of operating lease agreements as of December 31, 2025.

(d)Represents the amount by which the benefit obligations exceeded the fair value of plan assets at year-end for pension and OPEB plans whose accumulated postretirement benefit obligations exceeded the fair value of plan assets. The payments by period include expected pension contributions in 2026 and estimated benefit payments for underfunded plans in all years.

(e)Primarily represents transportation agreements of $935 million and storage agreements for capacity of $395 million.

(f)Primarily includes (i) rights-of-way obligations; and (ii) environmental liabilities related to sites that we own or have a contractual or legal obligation with a regulatory agency or property owner upon which we will perform remediation activities. These environmental liabilities are included within “Other current liabilities” and “Other long-term liabilities and deferred credits” in our consolidated balance sheet as of December 31, 2025.

(g)Represents $51 million under five letters of credit for insurance purposes and a combined $38 million in thirty-one letters of credit supporting environmental and other obligations of us and our subsidiaries.

(h)Represents commitments for the purchase of plant, property and equipment as of December 31, 2025.

60

Cash Flows

The following table summarizes our net cash flows provided by (used in) operating, investing, and financing activities between 2025 and 2024.

Year Ended December 31,

2025

2024

Changes

(In millions)

Net Cash Provided by (Used in)

Operating Activities

$

5,917 

$

5,635 

$

282 

Investing Activities

(3,179)

(2,629)

(550)

Financing Activities

(2,843)

(2,887)

44 

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Deposits

— 

(1)

1 

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

$

(105)

$

118 

$

(223)

Operating Activities

Net cash provided by operating activities was higher for the comparable years of 2025 and 2024 driven by greater contributions from our Natural Gas Pipelines business segment, partially offset by unfavorable changes due to the timing of trade collections in account receivable.

Investing Activities

$550 million more cash used in investing activities in the comparable years of 2025 and 2024 is explained by the following discussion.

•$648 million in cash used for the Outrigger Energy acquisition in the 2025 period; See Note 3 “Acquisitions and Divestitures” to our consolidated financial statements for further information regarding this acquisition; and

•a $397 million increase in capital expenditures primarily driven by expansion projects in our Natural Gas Pipelines and Products Pipelines business segments, partially offset by a decrease in our Terminals and CO2 business segments; partially offset by

•$382 million in cash received from the sale of our equity interest in EagleHawk. See Note 3 “Acquisitions and Divestitures” to our consolidated financial statements for further information regarding this divestiture; and

•a $153 million increase in distributions from equity investments in excess of cumulative earnings primarily due to SNG’s distribution of debt refinancing proceeds that reimbursed prior capital contributions we made to retire debt in a previous period.

Financing Activities

Net cash used in financing activities was relatively flat for the comparable years of 2025 and 2024.

61

Dividends and Stock Buy-back Program

The table below reflects the declaration of dividends of $1.17 per share for 2025:

Three months ended

Total quarterly dividend per share for the period

Date of declaration

Date of record

Date of dividend

March 31, 2025

$0.2925

April 16, 2025

April 30, 2025

May 15, 2025

June 30, 2025

0.2925

July 16, 2025

July 31, 2025

August 15, 2025

September 30, 2025

0.2925

October 22, 2025

November 3, 2025

November 17, 2025

December 31, 2025

0.2925

January 21, 2026

February 2, 2026

February 17, 2026

We expect to continue to return additional value to our shareholders in 2026 through our previously announced dividend increase. We plan to increase our dividend by 2% to $1.19 per common share in 2026. We have a board-approved share buy-back program that authorizes share repurchase of up to $3 billion that began in December 2017. Since December 2017, in total, we have repurchased approximately 86 million shares of our Class P common stock under the program at an average price of $17.09 per share for $1,472 million, leaving a remaining capacity of approximately $1.5 billion. For information on our stock buy-back program, see Note 10 “Stockholders’ Equity” to our consolidated financial statements.

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.” All of these matters will be taken into consideration by our Board 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.

62

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, a holder of any of the Guaranteed Notes issued by KMI or a Subsidiary Issuer is in the same position with respect to the net assets and income of KMI and the Subsidiary Issuers and Guarantors. The only amounts that are not available to the holders of each of the Guaranteed Notes to satisfy the repayment of such securities are the net assets, and income of the Subsidiary Non-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 10.9 to this report “Cross Guarantee Agreement, dated as of November 26, 2014, among KMI and certain of its subsidiaries, with schedules updated as of December 31, 2025.”

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 December 31, 2025 and 2024, the Obligated Group had $31,153 million and $31,052 million, respectively, of Guaranteed Notes outstanding. 

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

December 31,

Summarized Combined Balance Sheet Information

2025

2024

(In millions)

Current assets

$

2,460 

$

2,216 

Current assets - affiliates

779 

735 

Noncurrent assets

64,470 

63,267 

Noncurrent assets - affiliates

782 

813 

Total Assets

$

68,491 

$

67,031 

Current liabilities

$

4,015 

$

4,737 

Current liabilities - affiliates

766 

758 

Noncurrent liabilities

35,589 

34,052 

Noncurrent liabilities - affiliates

1,807 

1,561 

Total Liabilities

42,177 

41,108 

Kinder Morgan, Inc.’s stockholders’ equity

26,314 

25,923 

Total Liabilities and Stockholders’ Equity

$

68,491 

$

67,031 

Summarized Combined Income Statement Information

Year Ended December 31, 2025

(In millions)

Revenues

$

15,523 

Operating income

4,172 

Net income

2,587 

63

Recent Accounting Pronouncements

Please refer to Note 18 “Recent Accounting Pronouncements” to our consolidated financial statements for information concerning recent accounting pronouncements.