Kinder Morgan: Leader in North American Energy Infrastructure Unparalleled & irreplaceable asset footprint built over decades CO2 & transport Largest natural gas transmission network CO2 EOR oil & gas production Natural gas 6% 4%…
A Core Energy Infrastructure Holding Generating significant cash flow & returning significant value to shareholders 50 billion market capitalization One of the 10 largest energy companies in the S&P 500 15% owned by management…
Key Milestones Reached in 2019 Sold KML & U.S. Cochin pipeline for 2.5 billion Created 1.2 billion balance sheet flexibility by beating leverage target Placed major projects in service GCX & Elba(a) Demonstrated capital discipline…
2020 Guidance Published budget change ADJUSTED EBITDA billions Key Metrics 2020 Budget over 2019 7.6 7.6 7.6 After normalizing for sold assets, Adjusted EBITDA 7.6 billion 0% Adjusted EBITDA has grown Distributable Cash Flow 5.1…
Incremental 2020B Cash Flow Returned to Shareholders Multiple attractive capital allocation opportunities 2.7 billion excess cash flow 5.1 billion of DCF less 2.4 billion of discretionary capital less 25% increase planned for 2020…
Significant & Stable Cash Flow Generation Opportunistic asset monetization enabled meaningful debt reduction Self-funded all capex & all dividends with 19 billion of cash flow from operations since 2016 Borrowing, net Cash from BS…
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% 12% 3% B- or below 7% BB+ to B 27% 78%…
Hydrocarbons Required to Meet Long-Term Global Demand U.S. energy infrastructure will be critical for decades GLOBAL PRIMARY ENERGY DEMAND BY FUEL Broad-based natural gas demand growth across all billion tons oil equivalent sectors…
Developing Economies Drive Energy Demand Growth Energy consumption much more than just power & electric vehicles rest of world non-OECD other industry only 2% of expected growth such as India, China, Sub- agricultural, asphalt,…
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 2019 to 2030 growth in bcfd 12 Additional 32 bcfd expected…
U.S. Natural Gas Demand Growth Driven by Exports 83% of forecasted demand growth 2019 2030 is in the Gulf Coast, where we have significant assets in place Other regions Gulf Coast 17% 83% 28 Bcfd demand growth GULF COAST…
3.6bn of Commercially-Secured Capital Projects Underway 1.3 billion added in 2019 Demand Pull / KMI Capital Estimated (as of 12/31/2019) Supply Push ( billion) In-Service Date Capacity Natural Gas Permian takeaway projects (PHP, TX…
Successfully Achieving Attractive Build Multiples Established track record of leveraging our footprint & project management expertise Competitive advantages: INVESTMENT MULTIPLES: PROJECTS COMPLETED 2015-2019 Capital invested / year 2…
Leading the Way Out of the Permian Successfully completed GCX on time & budget PHP well underway Leveraging existing footprint into new takeaway capacity that reaches Natural Gas Pipelines across Texas & the Desert/Southwest (DSW),…
Supporting the Buildout of U.S. LNG Exports Serving significant liquefaction capacity & well-positioned to capture more Kinder Morgan network advantages: Natural gas transportation leader 70,000 miles of natural gas pipelines Move 40% of…
Beyond the Backlog Strong long-term fundamentals to drive additional opportunities Northeast natural Storage to support Infrastructure to gas demand & renewable power Natural gas for Organic growth support U.S. long-term supply…
Prioritizing Environmental, Social & Governance (ESG) Protecting the public, our employees & the environment Invest millions of dollars each year on integrity SUSTAINALYTICS ESG RISK RATING(a) management & maintenance programs to…
Contributing to a Lower-Carbon Future with Natural Gas Long-standing commitment to reducing methane emissions Ongoing enhancements to ESG disclosures 25+ years of commitment to reducing methane emissions, SUCCESSFUL METHANE EMISSIONS…
U.S. Greenhouse Gas Emissions are Declining Meaningful progress led by natural gas replacing coal-fired power generation U.S. GREENHOUSE GAS EMISSIONS BY ECONOMIC SECTOR billion metric tons of CO2 equivalent Since 1990: 2007 peak 8…
Natural Gas is a Critical Partner to Renewable Energy Evidence shows natural gas is preferred backup for renewables 7 DAYS OF ELECTRICITY GENERATION IN TEXAS (megawatt-hours by source) Natural gas works hand-in-hand with 30,000 nuclear…
Replacing Coal is Critical to Global Emission Reductions Power sector contributes 40% of energy-related CO2 emissions globally Natural gas is a more efficient & lower carbon ELECTRIC POWER SECTOR GENERATION MIX % based on terawatt-hours…
Full Cycle Emissions in Electric Power Generation U.S. LNG is one of the lowest emissions fuels for electricity in Asia & Europe ESTIMATED GREENHOUSE GAS EMISSIONS kg of CO2-equivalent emissions per megawatt-hour based on 100-year global…
Prioritizing ESG Multi-faceted approach to good corporate governance Ongoing enhancements to disclosures ESG RESOURCES CORPORATE GOVERNANCE Disclosure: 13 independent out of 16 board members - 2018 ESG Report - 2C scenario analysis…
Joint Venture Treatment in Key Metrics KM controls & 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 investments…
2020B Assumptions & Highlights YoY EBDA(a) KEY DEVELOPMENTS FROM 2019 Full year contribution from Elba Liquefaction, GCX & Bakken G&P expansions TX Intrastates growth projects & increased margin Sale of Cochin Natural Gas Pipelines…
2020 Budget Sensitivities Limited overall commodity exposure 2020B assumptions Change 2020B DCF impact (full year) CO2 Natural Gas Products Total company 55/bbl WTI 1/bbl WTI 0.8 million NGL 0.8 million 1.2 million 5 million 0.6…
Energy Toll Road Cash flow security with 90% from take-or-pay & other fee-based contracts Natural Gas Pipelines Products Pipelines Terminals CO2 2020B EBDA %(a) 61% 16% 13% 10% Refined Liquids Jones Act CO2 & Interstate / LNG…
Natural Gas Segment Overview Connecting key natural gas resources with major demand centers Asset Summary Natural gas pipelines: 70,000 miles NGL pipelines: 1,200 miles Natural gas transported 40% (U.S. consumption & exports) Working gas…
Manageable Natural Gas Re-Contracting Exposure Analysis of existing contracts that renew during next two years EXPECTED ANNUAL NET RE-CONTRACTING EXPOSURE (KM SHARE): % of 7.8bn 2020B KMI Total Segment EBDA(a) Expiring contracts are…
LNG Contract Overview Contracted capacity (online / to come) & Elba Liquefaction Remaining Contract KM Asset Contracted Capacity (mDthd) KM Capital (mm) Term (yrs) TGP 1,250 281 KMLP 1,545 278 NGPL 1,975 236 Intrastate 740 114…
Key Market: Exports to Mexico Expect to maintain market share of growing Mexico market 55%(a) in 2019 Our extensive footprint delivers diverse supply to multiple interconnections Including 12 direct & 4 indirect connections to Mexico…
Products Segment Overview Strategic footprint with significant cash flow generation Asset Summary Pipelines(a): 9,500 miles 2019 throughput(a) 2.4 mmbbld Terminals: 65 terminals Terminals tank capacity 39 mmbbls Pipeline tank capacity 16…
Products Segment Overview Supplying a diverse mix of feedstock & finished products critical to refining & transportation sectors 2019 DELIVERY VOLUMES(a) Robust economy & consumer preference supports Gasoline demand growth partially…
Consumer Preferences Suggest Product Demand Growth Both U.S & global demand trending higher EV MARKET SHARE SUV MARKET SHARE U.S. TRANSPORTATION DEMAND GLOBAL AIR TRAVEL 2018 global car sales by manufacturer % of sales in key car markets…
Refined Products Assets Generate Stable Cash Flows Steadily growing volumes complemented by indexed tariff structure REFINED PRODUCTS EBDA BY REGION(a) millions Volume growth translates to earnings growth 792 800 771 743 Potential…
Integrated Terminaling Network Focused on Refined Products Irreplaceable collection of assets, capabilities & market-making connectivity Our unmatched scale & flexibility on the Houston Ship Channel: KM terminals & assets refined…
Leading Exporter of U.S. Gasoline & 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 HOUSTON SHIP CHANNEL Millions of barrels per day…
CO2 Segment Overview World class, fully-integrated assets CO2 source to crude oil production & takeaway in the Permian Basin KMI Est. OGIP CO2 Reserves Interest NRI Location (tcf) McElmo Dome 45% 37% SW Colorado 22.0 Doe Canyon 87% 68%…
Enhanced Oil Recovery Process Specializing in the gas injection method of enhanced oil recovery Three phases of oil & gas production PRIMARY SECONDARY TERTIARY RECOVERY RECOVERY (ENHANCED) RECOVERY Reinject CO2 10% 20-40%…
CO2 Free Cash Flow & Attractive Returns Long history of generating high returns & significant CO2 free cash flow with minimal acquisitions CO2 IRR% 2000-2019 SIGNIFICANT CO2 FREE CASH FLOW millions 1,458 Oil & Gas 18% 1,326…
Non-GAAP Financial Measures & Reconciliations Defined Terms Reconciliations for the historical periods 46
GAAP Reconciliations in millions Reconciliation of DCF 2019 Reconciliation of Adjusted EBITDA 2019 Net income available to common stockholders (GAAP) 2,190 Net income (GAAP) 2,239 Total Certain Items (29) Total Certain Items (29)…
GAAP Reconciliations in millions Reconciliation of Adjusted Segment EBDA 2019 Reconciliation of interest, net 2019 Natural Gas Pipelines (GAAP) 4,661 Interest, net (GAAP) (1,801) Certain Items (51) Certain Items (15) Natural Gas…
Reconciliation of CO2 Free Cash Flow in millions Reconciliation of CO2 Free Cash Flow 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Segment EBDA 965 1,099 1,322 1,435 1,240 657 827 847 759 681 Certain items: Non-cash impairments…
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