Kinder Morgan: 1 Number From Q3 Earnings Every Investor Should See

In Kinder Morgan's Q3 earnings report, investors found a significant number that sets it apart from the numerous positive indicators. The company reported a backlog of $14.4 billion in expansion projects, marking a substantial increase from $9.6 billion in the previous quarter. This surge, including a company record $13.2 billion in natural gas projects, is fueled by the company's role as a key transporter of natural gas, carrying 40% of the nation's supply via its extensive pipeline network.

The backbone of this growth is secured by long-term contracts with customers including electric utilities, LNG exporters, and large-scale internet companies, guaranteeing payments for pipeline capacity regardless of actual usage. These contracts, spanning up to 20 years, provide a stable revenue stream, insulating the company from market fluctuations and supporting increased EBITDA.

With these commitments, Kinder Morgan anticipates an additional $2.5 billion in adjusted EBITDA from completed projects, potentially raising its total adjusted EBITDA to between $11.5 billion and $12 billion by 2025, a 37% increase over 2025 levels. The company's dividend, currently yielding 3.47%, is not only strong but has also grown by 138% over the past decade, reflecting its commitment to returning value to shareholders while funding expansion without incurring additional debt.

This combination of growth potential, secure revenue streams, and consistent performance makes Kinder Morgan an appealing investment option.