Kinder Morgan's backlog jumped half in one quarter to a record $14.4 billion

Kinder Morgan▲+3.16% — Kinder Morgan, up 3.16 percent today, the Houston operator of about 78,000 miles of pipelines, put a number on the AI buildout's next layer on October 21 ¹. Third-quarter net income attributable to KMI was $764 million↗, up from $628 million a year earlier, and adjusted EPS rose 21% to $0.35 ¹.

The expansion project backlog jumped half in a single quarter, to $14.4 billion on $5.4 billion of additions net of $700 million placed in service; gas projects are $13.2 billion of it, the largest natural gas backlog in company history, and more than 75% of the total now backs power generation and local gas distribution ¹.

Two new lines, each over 2.5 billion cubic feet a day

Chief Executive Kim Dang sanctioned two final investment decisions, projects management ranks among the largest US gas pipelines built in decades ¹. The Southeast Connector, on Southern Natural Gas, Kinder Morgan's 50/50 venture with the Atlanta utility Southern Company▼−0.35% — Southern Company, down 0.35 percent today ⁶, moves up to 2.6 billion cubic feet a day over roughly 470 new miles into the Southeast; the KMI share is about $3.1 billion, with first phases in service from late 2030 ¹.

The $4.2 billion Permian Link, with a $1.6 billion KMI share, carries about 2.8 billion cubic feet a day to new power generation for a customer described only as an A-rated hyperscaler, from mid-2030 ¹. A $150 million Creekside Lateral expansion in Central Texas follows take-or-pay deals with data-center and industrial customers ¹.

The contracts are signed now; the gas flows in 2030

The returns are fixed before the first mile is welded: the stable, primarily take-or-pay $13.7 billion of the backlog is expected to earn about 5.7 times first-full-year project EBITDA ¹. A year ago the backlog stood at $9.3 billion↗, about half of it tied to power generation ². Take-or-pay means the shipper pays whether or not the gas moves. If demand disappoints in 2030, the cost sits with the hyperscalers and utilities that signed, and, opponents of the contested Mississippi corridor argue, with the ratepayers behind them ⁶.

The other camp had a busy week

Barclays▲+1.43% — Barclays, up 1.43 percent today analyst Tim Long cut Dell, Hewlett Packard Enterprise▲+2.07% — Hewlett Packard Enterprise, up 2.07 percent today and NetApp▲+3.45% — NetApp, up 3.45 percent today on October 16, arguing that enterprise AI strength reflects memory prices more than a durable buildout↗ ⁷. Kinder Morgan's own demand case is in court: its Tennessee Gas subsidiary has sued 141 Mississippi landowners↗ since July to clear the $5.2 billion Mississippi Crossing corridor, and opponents told a federal appeals court on October 1 that its data-center forecast runs more than four times what utility records support ⁶. The company says it scopes projects to customer need and does not overbuild ⁶.

Six straight quarters, and two dates to hold

The bull case is already on the scoreboard: net debt to adjusted EBITDA of 3.5 times, at the low end of target, a dividend up 2%, 2026 adjusted EPS expected more than 13% above budget, gathering volumes up 14%, and six straight quarters of year-over-year net income growth ¹⁸.

Two readings decide whether the record backlog was a step or a ceiling: Southern Company's November 5 results, the first contracted-gigawatt count behind the challenged corridor ⁶, and Kinder Morgan's own fourth-quarter backlog number in January.