Kinder Morgan (KMI) Q2 2026: EPS +22%, Operating Margin 30.1%
Kinder Morgan converted the natural gas demand narrative into reported earnings this quarter, but not primarily through the gas franchise itself. Operating income rose 16.8% to $1,346 million on revenue of $4,477 million (up 10.8% from $4,042 million), lifting the operating margin to 30.06% from 28.50% — the highest operating margin in the four quarters disclosed in this filing, and the only one above 30%. Earnings per share climbed to $0.39 from $0.32, a 21.9% gain achieved with essentially no share count help (2,225 million shares versus 2,222 million). What makes the quarter worth reading closely is where the growth rates came from: CO2 and Products Pipelines — the fastest-growing rather than the largest segments — posted +50.7% and +18.7% EBDA gains, though Natural Gas Pipelines still contributed the single largest absolute increment ($84 million of the $224 million total), while capital spending tilted decisively — 78.8% of first-half capital expenditures — toward natural gas assets that have not yet earned anything.
- Consolidated Balance Sheet
1-1. Principal asset movements
