Kinder Morgan grows net income 17%, sells Eagle Ford JV share
Kinder Morgan Inc. recorded fourth-quarter 2025 net income of $996 million versus $667 million in fourth-quarter 2024. Adjusted net income attributable to KMI, excluding certain items, primarily from a gain on an asset sale during fourth-quarter 2025, was $866 million, 22% higher than fourth-quarter 2024, the company said in an earnings report Jan. 21.
EagleHawk sale
The company ended the year with the sale of its 25% non-operated interest in BPX (Eagle Ford) Gathering LLC, formerly known as EagleHawk Field Services, for $396 million to an undisclosed buyer.
In a call detailing the earnings report, Kinder Morgan chief executive officer Kim Dang said that while the asset wasn’t part of any divestiture plan, “based on the price that we could achieve, it made sense to sell.” The sale resulted in a pre-tax gain of $123 million, the company said.
EagleHawk began as a joint venture of a subsidiary of BPX Energy (75%), a unit of bp plc, and Kinder Morgan (25%), and held Eagle Ford midstream assets.
bp in November 2025 noted an agreement to sell a non-controlling portion of its share to Sixth Street-managed funds.
Fourth-quarter 2025
In the fourth quarter, Kinder Morgan, “led by record-setting performance in [Kinder Morgan’s] natural gas pipelines business segment, the company delivered its highest ever fourth quarter and full-year net income attributable to KMI and Adjusted EBITDA,” Dang noted.
For the full year, net income attributable to KMI was 17% higher than 2024. Cash flow from operations was $1.7 billion and free cash flow (FCF) after capital expenditures was $900 million, up 12% and 18%, respectively, from the prior year period.
“Overall, total demand for natural gas is expected to grow by 17% through 2030, led by LNG exports. We have long-term contracts to move 8 bcfd of natural gas feedstocks to LNG facilities, which is projected to grow to 12 bcfd by the end of 2028. We are also actively exploring more than 10 bcfd of opportunities to serve the natural gas power generation sector,” she said.
Growth in fourth-quarter 2025 relative to fourth-quarter 2024 was due primarily to higher contributions from the Texas Intrastate system, KinderHawk, and Outrigger Energy assets, said KMI president Tom Martin.
“Natural gas transport volumes were up 9% compared to the fourth quarter of 2024 primarily due to LNG deliveries on Tennessee Gas Pipeline. Natural gas gathering volumes were up 19% from the fourth quarter of 2024 across all assets, with our KinderHawk system making the largest contribution,” he continued.