KINDER MORGAN, INC.

The following tables summarize the key components of our consolidated earnings results.

Our consolidated revenues primarily consist of services and sales revenue. Our services revenues include fees for transportation and other midstream services that we perform. Fluctuations in our consolidated services revenue largely reflect changes in volumes and/or in the rates we charge. Our consolidated sales revenues include sales of natural gas (includes natural gas and RNG), products (includes NGL, crude oil, CO 2, and transmix), and other (includes RINs). Our consolidated sales revenue will fluctuate with commodity prices and volumes, and the costs of sales associated with purchases will usually have a commensurate and offsetting impact, except for the CO 2 segment, which produces, instead of purchases, the crude oil, CO 2, and RINs it sells. Additionally, fluctuations in revenues and costs of sales may be further impacted by gains or losses from derivative contracts that we use to manage our commodity price risk.

Below is a discussion of significant changes in our Consolidated Earnings Results for the comparable three and six-month periods ended June 30, 2026 and 2025:

Revenues

Revenues increased$435 million and$1,022 million for the three and six months ended June 30, 2026, respectively, as compared to the respective prior year periods. These increases were primarily due to (i) increases in product sales of $422 million and $388 million, respectively, driven by higher commodity prices and volumes; (ii) increases in services revenues of $138 million and $295 million, respectively, resulting from higher volumes, including expansion projects placed into service, primarily in our Natural Gas Pipelines business segment; and (iii) an increase in the six-month period in natural gas sales of $387 million due to higher volumes and commodity prices. These increases in revenues were partially offset by $49 million and $63 million, respectively, for the impacts of derivative contracts used to hedge commodity sales and a decrease in the three-month period in natural gas sales of $73 million, due to lower commodity prices partially offset by higher volumes. The increases in sales revenues were partially offset by corresponding increases in our costs of sales as described below under “Operating Costs, Expenses and Other—Costs of sales.”

Operating Costs, Expenses and Other

Costs of sales

Costs of sales increased$194 million and $467 million for the three and six months ended June 30, 2026, respectively, as compared to the respective prior year periods. The increases were primarily due to (i) increases of$245 million and$176 million, respectively, in costs of sales for products driven by higher commodity prices and volumes; (ii) increases of $82 million and $103 million, respectively, related to derivative contracts used to hedge commodity purchases; and (iii) an increase in the six-month period of $187 million in costs of sales for natural gas primarily due to higher volumes partially offset by lower commodity prices. The three-month period increase was partially offset by a decrease of $112 million in costs of sales for natural gas due to lower commodity prices partially offset by higher volumes.

Operations and Maintenance

Operations and maintenance increased $33 million for each of the three and six months ended June 30, 2026, respectively, as compared to the respective prior year periods. The increases were primarily driven by greater activity, including labor costs, and inflation.

Other Income (Expense)

Interest, net

In the table above, we report our interest expense as “net,” meaning that we have subtracted interest income and capitalized interest from our total interest expense to arrive at one interest amount. Interest, net decreased$27 million and $48 million for the three and six months ended June 30, 2026, respectively, compared to the respective prior year periods. These decreases were primarily due to higher capitalized interest and lower interest rates associated with our fixed-to-variable interest rate swap agreements. The six-month period decrease was also due to lower average short-term debt balances partially offset by higher interest rates on our long-term debt.