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Kinder Morgan Q1 Gas Transport Volumes Rise; Oil, Refined Product Volumes Decline

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Kinder Morgan (KMI) reported Q1 earnings Wednesday, showing total transported natural gas volumes rose to 49,475 billion British thermal units per day over the year, from 45,978 billion Btu/d a year earlier.

Total oil segment delivery volumes declined to 1.97 million barrels per day in Q1 2026, compared with 2.05 million b/d a year earlier.

Within the oil segment, transported volumes of crude and condensate fell to 420,000 b/d in the quarter, down from 476,000 b/d a year earlier.

Total refined product volumes edged lower, with transported volumes at 1.5 million b/d in Q1 2026, compared with 1.6 million b/d a year earlier.

In the Products Pipelines segment, transported gasoline volumes dropped to 912,000 b/d from 933,000 b/d in Q1 2025, and jet fuel volumes also fell to 293,000 b/d from 302,000 b/d a year ago.

In contrast, diesel fuel volumes increased to 340,000 b/d from 336,000 b/d in the year-ago period.

"Our Natural Gas Pipelines segment drove the bulk of that outperformance, benefiting from winter storm Fern and extended cold weather," Chief Executive Officer Kim Dang said.

Executive Chairman Richard D. Kinder said geopolitical uncertainty surrounding the Middle East conflict remained elevated.

"The geopolitical landscape became even more turbulent this quarter, with conflict in the Middle East joining the ongoing war in Ukraine as a source of significant commodity price volatility," Kinder said, adding that the company was "largely insulated from that volatility."

"Longer-term, these global conflicts highlight the benefits of securing liquefied natural gas supplies from the United States, driving incremental demand for the services we provide those shippers," he said, noting that domestic natural gas demand growth projections, particularly in the power sector, continue to be robust.

On April 20, KMI and Phillips 66 (PSX) closed a second open season for the proposed Western Gateway Pipeline system with sufficient customer commitments to advance the project, subject to agreements and respective board approvals.

The refined products pipeline aims to connect Midwest and Gulf Coast refinery supplies to Phoenix, Arizona and California markets with connectivity to Las Vegas, Nevada, via Kinder Morgan's CALNEV Pipeline. Completion is targeted for mid-2029.

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