MARCH 2022 INVESTOR PRESENTATION 1 Altamont gathering right-of-way, Granite Park, Utah
Leader in North American Energy Infrastructure Energy infrastructure, especially natural gas pipelines & storage, has a decades-long time horizon Largest natural gas transmission network Move 40% of U.S. natural gas consumption &…
Strategy Maximize the value of our assets on behalf of shareholders Stable, fee-based Invest in a low Financial Disciplined Enhance assets carbon future flexibility capital allocation shareholder value Core energy Newly formed 4.3x…
Toll Road Strategy Insulates Cash Flow from Industry Cycles Structure long-term contracts that minimize price & volume volatility 69% take- or-pay or 25% fee- hedged based 6% other Avg. remaining 2022B Adjusted Volumes & price are…
Core Holding in Any Portfolio Generating significant cash flow & returning value to shareholders SP500 FREE CASH FLOW YIELDS y-axis represents of SP500 tickers within 35 billion market One of the 10 largest energy the free cash flow…
Proven History of Cash Flow Generation and Shareholder Returns in billions except per share ADJUSTED EBITDA CFFO FREE CASH FLOW NET DEBT DECLARED DIVIDENDS CFFO Capital Expenditures(a) PER SHARE +9% +11% +82% -18% +122% 1.11 0.7…
2022 Budget Summary in billions, except per share 2021 2022 Increase Key metrics 2021 excluding Uri Budget excluding Uri Net income 1.8 0.9 2.5 2.5x Adjusted EBITDA 7.9 6.9 7.2 5% Distributable Cash Flow 5.5 4.4 4.7 8% (DCF)…
1.4 Billion Committed Capital Project Backlog as of 12/31/2021 Expect 51% of backlog capital in service in 2022 and 43% in 2023 million TOTAL LOW-CARBON Natural Gas 628 628 56% for end-use utilities, 34% for G&P Products 111 44 RD…
All Energy Sources Required to Meet Demand Outlook Total energy demand expected to grow 20% 13% GLOBAL TOTAL ENERGY DEMAND BY FUEL Exajoules 2020, 2030, 2040 28% 2020-2040 growth in Exajoules 17% 200 2040 % mix (10) 10 30 50 70 Asia…
U.S. is a Responsible Producer One of the lowest emissions intensity producers in the world & at unmatched scale AVERAGE UPSTREAM METHANE EMISSION INTENSITY 2020 OIL & GAS PRODUCTION mtoe SCALING FACTOR 7 1,600 6 Only 5 countries have…
U.S. Helps Meet Increasing Global Demand Reliable trade partner with price-competitive & responsible production U.S. OIL & LIQUIDS mmbbld U.S. Natural Gas Production Demand bcfd US EU China Japan Production Demand 25 125 25.00 20…
Our Infrastructure is Important to Fueling the Future BENEFITS OF NATURAL GAS LOW EMISSIONS ABUNDANT & LOW COST Natural gas is the cleanest burning fossil fuel with Abundant resources are geographically significantly lower…
U.S. CO2 Emissions Declined Since 2007 while GDP grew 45% Primarily due to converting coal power generation to natural gas generation U.S. ELECTRICITY GENERATION MIX U.S. CO2 EMISSIONS FROM ENERGY CONSUMPTION % of total generation…
Replacing Coal Could Accelerate Emissions Reductions Goals POTENTIAL FOR LOWER GLOBAL EMISSIONS Mt CO2 2,005 Potential Net 6% of 2020 CO2 6,217 Reduction of 24% 18% of 2020 CO2 34,156 25,934 2020 CO2 2020-2050 net change…
Reliable, Long-Duration Storage is Critical in Peak Demand Periods DAILY AVERAGE OF WEEK-OVER-WEEK DAILY POWER EQUIVALENT TWh per day CHANGES IN U.S. WORKING GAS bcfd send-out build 20 0 6 2050 U.S. SDS forecasts only 1 TWh of…
Hydrocarbons are Abundant & Geographically Diverse Increased demand for geographically concentrated energy transition minerals may put energy security at risk, worsen human rights issues, and lead to other unintended consequences MARKET…
Scenarios that Solve for an End-Result Fail to Consider Feasibility more spend to achieve the same growth substantial mineral requirements 2021-2050 GLOBAL INVESTMENT trillions MINERAL REQUIREMENTS FOR CLEAN ENERGY TECHNOLOGIES million…
Positioned for the Future of Energy Our vast network of strategically-located energy infrastructure will continue delivering energy for decades to come Moving fuels of today & the future U.S. is the worlds most responsible producer…
VALUABLE NETWORKS 21 Pipe storage yard at the KM Fairless Hills Terminal, Pennsylvania
Provide High-Value Natural Gas Takeaway in all Major Basins U.S. NATURAL GAS PRODUCTION TGP provides valuable egress for NE producers RELEVANT TO OUR FOOTPRINT bcfd & may soon offer RSG pooling service 39 Northeast +5 bcfd 34 23…
Strong Gulf Coast Footprint Positioned to serve Demand Growth 95% of demand growth is expected to occur in Texas & Louisiana, driven by exports & industrial U.S. NATURAL GAS DEMAND bcfd Intrastates system directly connects to petchem &…
Extensive Storage Capabilities & Premium Service Offerings Provide Valuable Solutions for Variable Demand from Utilities & Exports 700 bcf of storage across NGPL, Highly utilized NGPL serves Acquired Stagecoach to more Intrastates, TGP,…
Our Storage was Integral During Winter Storm Uri February 14 was one of the highest demand KM STORAGE WITHDRAWALS Feb 2021, bcfd days over the past decade; likely would have 8 been higher had freeze-offs and power curtailments not…
Products Segment Overview Refined products pipes deliver transportation fuels from refining centers to key demand markets; crude assets in major basins PRODUCTS SEGMENT Crude G&P and transport (mbbld) Refined Products (mbbld)…
Long Runway for U.S. Refined Products U.S. TOTAL FINAL CONSUMPTION OF LIQUID FUELS IN TRANSPORT SECTOR mmbbld oil implied biofuels 10.7 9.9 9.8 9.1 Even in a lower domestic demand scenario, our refined products pipelines…
Our Integrated Terminal Network on the Houston Ship Channel Critical assets serving Gulf Coast refining center with significant dock capacity available to meet growing export market Providing customers with flexibility & optionality KM…
CO2 EOR & Transport Consistently Generate Free Cash Flow Low cash cost structure yields healthy margins through commodity price cycles Interest in 5 crude CO2 EOR & TRANSPORT FREE CASH fields with 9.2 FLOW millions billion barrels of…
2021 Acquisition of Kinetrex Energy Provides Multi-Year Head Start to Participate in Emerging RNG Market ASSETS & VALUATION Michigan U.S. RNG PRODUCTION bcfd 2 small-scale LNG facilities - 2 MMdth capacity 2.0 1 operational…
ESG LEADER Kinder Morgan Building, Houston, Texas
ESG Strategy Provide energy services in a safe, efficient, and environmentally responsible manner for the benefit of people, communities, and businesses environmental social governance Invest in low carbon future Build & maintain…
As Founding ONE Future Member, Encourage Industry Participation due to Proven Results ONE FUTURE METHANE EMISSION INTENSITY ONE Future uses science-based Transmission & storage Remaining natural gas supply chain technology and methods…
Reducing CO2 Emissions on Houston Ship Channel Adding 5 Vapor Recovery Units at Galena Park & Pasadena terminals 64 million 3Q 2023 in-service Expect project to reduce Scope 1 & 2 emissions by 34,000 metric tonnes CO2e per year, or…
Recognized as an ESG Leader Highly rated by multiple agencies improved MSCI rating to A from BBB & Moodys ranking to 2 from 14 due to enhanced disclosure Sustainalytics 3 MSCI A FTSE 3 of 203 Refiners & Pipelines Oil & Gas Refining,…
New RSG Pooling Service on TGP RSG may trade at a premium due to low emissions production certification New RSG pooling service encourages certified producers to move their gas on TGP Working with ICE to establish trading hubs at 5…
U.S. Production Continues to Recover from Pandemic U.S. NATURAL GAS PRODUCTION bcfd U.S. CRUDE PRODUCTION mmbbld 108 14 Recovers to pre-pandemic levels during 2023 102 13 96 12 90 11 2022 production above 84 pre-pandemic…
Natural Gas Gathering & Processing Assets Across Key Basins Volume recovery ongoing G&P BUSINESS AS % OF 2022B NATURAL GAS SEGMENT G&P VOLUMES SHORT-TERM PRODUCTION OUTLOOK KMI ADJUSTED SEGMENT EBDA bbtud dry gas, bcfd, 2019 2023 4,000…
Products Segment Crude Volume Update Business as % of 2022B KMI Adjusted Segment EBDA: 2% Crude G&P; 3% Crude Transport CRUDE TRANSPORT & G&P VOLUMES mbbld SHORT-TERM PRODUCTION OUTLOOK 2019 2023 crude, mmbld 900 1.5 2023 +15% from…
Products Segments West Coast Renewable Fuels Projects Subsidies & state goals for emissions reductions are driving increased RD volumes Particularly in California where stacked subsidies currently average 4.00/gal Products Pipelines…
Terminals Partnering with NESTE on Renewable Fuels Logistics Leading position in fast growing market Modifying 30 tanks & enhancing rail, truck, and marine HARVEY TERMINAL UTILIZATION capabilities at Harvey for renewable feedstock…
CO2 EOR: Extending Productive Life of Mature Fields Innovation & team work continue to push SACROC decline curve flatter Significant amounts of recoverable oil in place SACROC NET OIL PRODUCTION FORECASTS SACROC is estimated at 2.8…
RNG Demand Markets Provide Diversification Plan to mitigate exposure to RIN volatility through fixed price contracts in the voluntary market REVENUE EXAMPLE per mmbtu D3 RINs can also satisfy D5 & D6 obligations RIN value 38.82…
Opportunity to Capture Carbon from Stationary Sources U.S. CO2 EMISSIONS FROM POINT SOURCES million metric tons capture opportunity 1,900 mmtpa, or 100 bcfd, CO2 emissions landfills associated with facilities that could be candidates…
Net-Zero Scenarios Require Carbon Capture Infrastructure Buildout U.S. CUMULATIVE CO2 STORAGE CAPACITY MMT CO2 POINT SOURCES & PIPELINE INFRASTRUCTURE IN 2050 5000 FIND 4000 3000 2000 1000 0 2020 2025 2030 2035 2040 2045…
CCUS Economics are Improving but Remain Challenged CURRENT ESTIMATED U.S. CARBON CAPTURE COST /tonne 45Q TAX CREDITS 140 Capturer controls the tax credit Additional technological advancements Industry still contemplating economics…
NON-GAAP FINANCIAL MEASURES & RECONCILIATIONS 50 Pipe storage yard at the KM Fairless Hills Terminal, Pennsylvania
GAAP Reconciliations in millions 2021 Certain Items in Segment Adjusted Adjusted EBDA Segment Segment Reconciliation of Adjusted Segment EBDA (GAAP) EBDA EBDA Certain Items 2021 Natural Gas Pipelines 3,815 1,648 5,463 Fair value…
GAAP Reconciliations in millions Reconciliation of DD&A and amortization of excess cost of equity investments for DCF 2021 Reconciliation of income tax expense for DCF 2021 Depreciation, depletion and amortization (GAAP) (2,135)…
Reconciliations of KMI FCF & CO2 Segment FCF in millions Reconciliation of KMI FCF 2017 2018 2019 2020 2021 CFFO (GAAP) 4,601 5,043 4,748 4,550 5,708 Capital expenditures (GAAP)(a) (3,188) (2,904) (2,270) (1,707) (1,281) FCF 1,413…
Reconciliation of DCF and Adjusted EBITDA Excluding Uri in millions 2021 2021 Actual Reconciliation of KMI DCF Excluding Uri Actual Excluding Uri Net income attributable to Kinder Morgan, Inc. 1,784 932 Total Certain Items 1,220 1,220…
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