Kinder Morgan plans new pipeline

A Kinder Morgan pipeline under construction. The company said it would build a new 216-mi. intrastate pipeline from Katy, Texas to the LNG and industrial corridor near Port Arthur, Texas. (Image: Kinder Morgan)

Kinder Morgan announced plans for a major new infrastructure initiative with its Trident Intrastate Pipeline project, which is expected to further boost its natural gas transportation capacity.

The annoucement of the pipeline came during the company’s earnings report. The company said it had a strong financial performance for the fourth quarter of 2024, driven by solid contributions from its Natural Gas Pipelines, Products Pipelines, and Terminals business segments. 

The Trident Intrastate Pipeline, a significant part of Kinder Morgan’s growth strategy, will span approximately 216 miles, running from Katy, Texas, to the LNG and industrial corridor near Port Arthur, Texas. Underpinned by long-term contracts, the project will offer around 1.5 billion cubic feet per day (Bcf/d) of capacity. Pending necessary permits and approvals, the pipeline is expected to be operational by the first quarter of 2027, serving growing natural gas demand from LNG facilities and industrial markets in the region.

This announcement comes on the back of a strong fourth-quarter performance, where Kinder Morgan reported earnings per share (EPS) of $0.30, an 11% increase compared to the same period in 2023. Adjusted EPS came in at $0.32, up 14% year-over-year. Net income attributable to the company totaled $667 million, compared to $594 million in Q4 2023, while Adjusted EBITDA rose by 7% to $2.06 billion.

CEO Kim Dang highlighted the company’s robust market fundamentals and commitment to high-quality, internally funded capital projects. “We are continuing to secure long-term transportation agreements, which support projects like the Trident pipeline and other key initiatives,” Dang said. “These projects, combined with our strong financial results, position us for significant future growth.”

The Trident Intrastate Pipeline is part of a broader $5 billion natural gas project portfolio, including the Mississippi Crossing and South System Expansion projects. These initiatives reflect the increasing demand for natural gas, driven by LNG export growth, power generation, and emerging sectors such as data centers and cryptocurrency mining.

Kinder Morgan’s project backlog has surged by nearly 60%, reaching $8.1 billion at the end of 2024, with natural gas projects accounting for around 89% of this total. The company expects continued robust demand for natural gas infrastructure, which is integral to its long-term growth strategy.

For 2025, the company has budgeted net income of $2.8 billion, an 8% increase over 2024, and expects Adjusted EPS to rise by 10% to $1.27. In line with this growth, Kinder Morgan has announced a 2% increase in its quarterly dividend to $0.2875 per share, bringing the annualized dividend to $1.15 per share, payable in February 2025.

Kinder Morgan’s strong balance sheet, with a Net Debt-to-Adjusted EBITDA ratio of 4.0 times, and its continued focus on expanding its natural gas pipeline network, underscore its confidence in future financial performance and shareholder returns.