Kinder Morgan: Leader in North American Energy Infrastructure Unparalleled and irreplaceable asset footprint built over decades CO2 & transport Largest natural gas transmission network CO2 EOR oil production 6% 4% Natural gas…
Stable, Fee-Based Cash Flow from High Quality Customers Underpinned by multi-year contracts with diversified customer base STABLE CASH FLOWS(a) HIGH QUALITY CUSTOMERS(b) Not rated 4% 5% 11% B- or below 5% 25% 77% Customers 7% BB+…
5.7bn of Commercially-Secured Capital Projects Underway 400 million of new projects added during Q2 2019 & over 1 billion added year-to-date Demand Pull / KMI Capital Estimated (as of 6/30/2019) Supply Push ( billion) In-Service Date…
Global Energy Demand Expected to Grow for Decades to Come More than 650 million people still expected to lack access to electricity in 2030 STEADY GROWTH IN GLOBAL ENERGY DEMAND DEMAND GROWTH DRIVEN BY DEVELOPING ECONOMIES Billion tons…
U.S. is the Largest Oil and Gas Producer in the World Reaching demand markets abroad expected to drive higher utilization of existing infrastructure and expansion opportunities OIL AND NATURAL GAS PRODUCTION Unmatched growth in U.S. oil…
Substantial Growth Projected for U.S. Natural Gas Supply Our network connects key supply basins to multiple demand points along the Gulf Coast KEY BASINS DRIVING U.S. GROWTH 2018 to 2030 growth in Bcfd Additional 38 Bcfd expected…
U.S. Natural Gas Demand is Concentrated in Gulf Coast 70% of forecasted 2018-2030 growth is in Texas and Louisiana, where we have significant assets in place Forecasted Texas and Louisiana demand and export growth between 2018 and…
Leading the Way Out of the Permian Building the first two new natural gas pipelines out of the basin Leveraging existing footprint into new takeaway capacity that reaches Natural Gas Pipelines across Texas and connects into major demand…
Competitively Priced U.S. Natural Gas Drives LNG Opportunity U.S. LNG exports expected to more than quadruple by 2025 NATURAL GAS PRICES(a) PROJECTED U.S. LNG EXPORTS(b) / mmbtu Bcfd 18 18.8 15 16.3 12 Japan 9 European Union…
Supporting the Buildout of U.S. LNG Exports Serving significant liquefaction capacity & well-positioned to capture more third-party LNG terminals Kinder Morgan network advantages: Natural gas leader 70,000 miles of natural gas pipelines…
Attractive Growth in Exports of U.S. Petroleum Liquids Competitive & growing U.S. supplies reach a diverse mix of global customers U.S. EXPORTS OF PETROLEUM LIQUIDS DESTINATIONS OF U.S. PETROLEUM LIQUIDS EXPORTS Millions of barrels per…
Leading Exporter of U.S. Gasoline and Distillates Our Houston Ship Channel exports have grown faster than the broader U.S. market over the last several years U.S. EXPORTS KM EXPORTS FROM GULF COAST TERMINALS Millions of barrels per day…
Largest Independent Refined Products Terminal Hub in the U.S. Handles 15% of U.S. exports of distillates, gasoline & gasoline blendstocks(a) Our unmatched scale and flexibility on the Houston Ship Channel: KM terminals & assets…
Beyond the Backlog Strong long-term fundamentals to drive additional opportunities Northeast natural Storage to support Infrastructure to gas demand and renewable power Grow crude and support U.S. Haynesville 2.0 long-term supply…
Financial Strategy 19
Capital Allocation Priorities Right-sized balance sheet & set dividend target through 2020 Balance Capital Share Dividend Sheet Projects Repurchase Return threshold for new projects well in 4.4bn of available excess of cost of…
Overview of Pembina Acquisition of KML and U.S. Cochin Attractive transaction for all stakeholders KMI to sell U.S. Cochin for 1.546 billion cash Represents 13x expected 2019 Adjusted EBITDA Tax gain expected to be fully offset with…
Cash Flow Generation Machine 5 billion of 2019B distributable cash flow (DCF) = 2 billion for dividends + 3 billion to enhance shareholder value billions Common dividends declared DCF after dividends 2019B dividend coverage of…
A Core Energy Infrastructure Holding Significant cash flow generation & returning significant value to shareholders 40 billion market capitalization One of the 10 largest energy companies in the S&P 500; 15% insider ownership…
KMI: A Compelling Investment Opportunity Strategically-positioned assets generating substantial cash flow with attractive investment opportunities 90% take-or-pay or fee-based earnings(a) 8 billion 2019B Adjusted EBITDA(b) 5%…
Appendix 25
Committed to Being a Good Corporate Citizen Best-in-class safety & long-standing commitment to reducing methane emissions In large part due to replacing coal-fired electricity generation with SUCCESSFUL METHANE EMISSIONS REDUCTIONS(a)…
Prioritizing Environmental, Social and Governance (ESG) Multi-faceted approach to good corporate governance On-going enhancements to disclosures CORPORATE GOVERNANCE ESG RESOURCES Disclosure: 13 independent out of 16 board members -…
Compelling Investment Opportunity Returning value to shareholders via significant dividend growth Attractive valuation DRILL-DOWN OF S&P 500 COMPANIES ENTERPRISE VALUE / 2020E EBITDA Attractive valuation provides upside potential 399…
KMI: 2019 Guidance Published Budget Strong fundamentals and strategic footprint support steady growth in our diversified, fee-based cash flow Key Metrics 2019 Budget from 2018 Notes SIGNIFICANT CASH GENERATION billions Expect to be…
Stable, Multi-Year Fee-Based Cash Flow 96% of 2019B segment cash flow is from take-or-pay and other fee-based contracts or hedged(a) 66% Fee-Based Take-or-Pay: highly dependable cash flow under multi-year contracts Entitled to payment…
Energy Toll Road Cash flow security with 90% from take-or-pay and other fee-based contracts Natural Gas Pipelines Products Pipelines Terminals CO2 2019B EBDA %(a) 61% 15% 14% 10% 76% interstate pipelines(b) 78% liquids Asset Mix 60%…
Averaged 2.5 Billion of Discretionary Capital per Year Since 2008 ANNUAL GROWTH CAPITAL & CONTRIBUTIONS TO JVs(a,b) billions Expansion Average 3.4 3.3 3.2 3.2 3.1 3.0 2.5 2.7 2.3 2.3 1.7 1.4 1.1 2008 2009 2010…
Successfully Achieving Attractive Build Multiples Disciplined steward of capital Competitive advantages: INVESTMENT MULTIPLES: PROJECTS COMPLETED 2015-2018 Capital invested / year 2 Project EBITDA(a) Expansive asset base ability to…
Stable Foundation of Cash Flows through Commodity Cycles 5-year change in Adjusted EBITDA billions 1.7 7.8 7.4 (0.6) (0.5) 0.2 (0.3) (0.1) Helped to fund 8.3 billion Adjusted Net Debt reduction(b) 2014 Adjusted EBITDA…
Distributable Cash Flow (DCF) versus Net Income Largest differences easily explainable and more reflective of cash earnings DEPRECIATION EXPENSE VS. SUSTAINING CAPEX(a) BOOK TAX EXPENSE VS. CASH TAXES billions billions 2.8 2.8 2.7…
KMI Business Risks Summary Regulatory FERC rate cases (Products Pipelines and Natural Gas Pipelines) Provincial, state, and local permitting issues CO2 crude oil production volumes Throughput on our volume-based assets Commodity…
Joint Venture Treatment in Key Metrics KM controls and fully consolidates KM does not control or consolidate (third party portion referred to as noncontrolling interests in financial statements) (KM portion referred to as equity…
Natural Gas Segment Overview Connecting key natural gas resources with major demand centers Asset Summary Natural gas pipelines: 70,000 Miles NGL pipelines: 2,700 Miles U.S. natural gas consumption moved: 40% Working gas storage…
Manageable Natural Gas Re-Contracting Exposure Analysis of existing contract base (as of YE2018) EXPECTED ANNUAL NET RE-CONTRACTING EXPOSURE (KM SHARE): Assumptions % of 8.4bn 2019B Total Segment EBDA(a) Negative figures represent…
FERC-Regulated Interstate Natural Gas Assets Summary statistics, including remaining contract term and rate moratorium dates (where applicable) Transport Storage Avg. Remaining % of 2017 Revenues KM Capacity Capacity Contract Term from…
Terminals Segment Overview Diversified terminaling network connected to key refining centers and market hubs Asset Summary Total Kinder Morgan terminals: 157 Terminals Terminals segment bulk 34 Terminals Terminals segment liquids 56…
CO2 Segment Overview World class, fully-integrated assets CO2 source to crude oil production and takeaway in the Permian Basin KMI Remaining OGIP CO2 Reserves Interest NRI Location Deliverability (tcf) McElmo Dome 45% 37% SW Colorado…
CO2 Free Cash Flow and Attractive Returns Long history of generating high returns and significant CO2 free cash flow with minimal acquisitions CO2 IRR% 2000-2018 SIGNIFICANT CO2 FREE CASH FLOW millions 1,432 1,458 EOR oil…
Non-GAAP Financial Measures and Reconciliations Defined terms Reconciliations for historical periods 46
KMI GAAP Reconciliation in millions Yr. Ended Yr. Ended Reconciliation of DCF 12/31/18 Reconciliation of Adjusted EBITDA 12/31/18 Net Income 1,919 Net Income 1,919 Noncontrolling interests (a) (310) Total Certain Items 501 Preferred…
Reconciliation of CO2 Free Cash Flow in millions Year Ended December 31, Reconciliation of CO2 Free Cash Flow 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Segment EBDA 783 965 1,099 1,322 1,435 1,240 657 827 847 759 Certain…
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