Kinder Morgan’s fee-based model contrasts with EOG Resources’ 44% net income drop and $7.94 billion debt surge.
Kinder Morgan Inc (KMI) emerges as a stable alternative to EOG Resources (EOG) after EOG reported a 44% year-over-year decline in net income to $701 million for Q4 2025. The drop follows a $506 million after-tax impairment charge and a 40.77% fall in operating income, driven by realized crude prices sliding from $71.66 to $59.54 per barrel.
EOGs total debt nearly doubled to $7.94 billion from $4.75 billion, funding the Encino acquisition, while free cash flow contracted 30.04%. Piper Sandler adjusted its price target amid a less favorable oil macro outlook. EOG shares, up 31.95% year-to-date at $136.20, trade near their 52-week high of $150.70.
KMI, meanwhile, benefits from a $10 billion contracted backlog, an S&P upgrade to BBB+, and expanding LNG export contracts, offering a 3.48% dividend yield. Analysts highlight KMI’s resilience against geopolitical supply shocks compared to upstream drillers like EOG.