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December 2022 Investor Presentation – Kinder Morgan, Inc.

Kinder Morgan, Inc. · Dec 30, 2022 · 53 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 1
    DECEMBER 2022 INVESTOR PRESENTATION 1 Altamont gathering right-of-way, Granite Park, Utah
  2. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 2
    Leader in North American Energy Infrastructure Energy infrastructure, especially natural gas pipelines & storage, has a decades-long time horizon moving and storing the energy of today and tomorrow Largest natural gas transmission network…
  3. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 3
    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 Established Energy…
  4. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 4
    2023 Guidance Performance driven by strong market fundamentals and robust demand growth for our existing & expanded services Variance to Key metrics 2023 Budget 2022 Forecast Net income 2.5 billion - Growth offset by higher interest…
  5. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 5
    Highly-Contracted Cash Flows Generally structure long-term contracts that minimize price & volume volatility CONTRACT MIX OF 2022B ADJUSTED SEGMENT EBDA Entitled to payment regardless of throughput Fixed fee collected regardless of…
  6. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 6
    Proven History of Cash Flow Generation and Shareholder Returns in billions except per share ADJUSTED EBITDA CFFO FREE CASH FLOW(a) NET DEBT DECLARED DIVIDENDS PER SHARE +9% +11% +82% -18% +122% 1.11 0.7 7.2 5.3 6.6 3.4 38 4.8…
  7. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 7
    Value Opportunity to Invest in Defensive Cash Flows & Healthy Dividend SP500 FREE CASH FLOW YIELDS y-axis represents of S&P500 tickers SP500 CURRENT DIVIDEND YIELDS y-axis represents of within the free cash flow yield range specified on…
  8. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 8
    ALL-OF-THE-ABOVE ENERGY SOLUTION 9 TransColorado Pipeline compressor station, Mancos, Colorado
  9. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 9
    All Energy Sources Required to Meet Demand Outlook Total energy demand expected to grow 20% GLOBAL TOTAL ENERGY DEMAND BY FUEL Exajoules 2020, 2030, 2040 13% 200 28% 17% 2040 % mix 150 19% 24% 100 Energy diversity is critical…
  10. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 10
    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…
  11. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 11
    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…
  12. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 12
    Energy Production = Security Diversified global production of commodities, like natural gas, is key to strengthening geopolitical stability NATURAL GAS PRODUCTION bcm 2010 2020 2030 1,200 U.S. surpassed Russia as worlds largest…
  13. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 13
    Geographic Diversity is a Key Consideration in the Energy Transition MARKET SIZE & LEVEL OF GEOGRAPHICAL PROCESSING OF SELECT MINERALS & FOSSIL FUELS BY TOP 3 CONCENTRATION 2019 COUNTRIES IN EACH CATEGORY 2019 10 000 Hydrocarbons are…
  14. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 14
    Electricity Prices are Frequently Higher in Countries with Aggressive Energy Transition Policies Cost by Country /MWh WHOLESALE SPOT ELECTRICTY PRICES /MWh U.S. 60.40 60.00 300.00 Germany 229.66 U.K. 254.85 France 276.02…
  15. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 15
    VALUABLE NETWORKS 16 Pipe storage yard at the KM Fairless Hills Terminal, Pennsylvania
  16. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 16
    2.7 Billion Committed Capital Project Backlog as of 9/30/2022 Expect 15% of backlog capital in service in Q422, 60% in 2023, and 25% beyond LOWER million TOTAL CARBON Natural Gas 1,577 1,577 44% for end use, 56% for G&P & other…
  17. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 17
    Provide High-Value Natural Gas Takeaway in all Major Basins U.S. NATURAL GAS PRODUCTION TGP provides valuable egress for NE RELEVANT TO OUR FOOTPRINT bcfd producers & offers PCG pooling service 40 Northeast +5 bcfd 35 26 Permian…
  18. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 18
    Continue to Serve the Permians Growing Gas Takeaway Needs Own interest in 7 bcfd of existing Permian takeaway capacity Highly utilized capacity with long-term contracts Recently built GCX and PHP to address growing gas supply…
  19. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 19
    Strong Gulf Coast Footprint Positioned to serve Demand Growth 90% 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…
  20. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 20
    Transporter of Choice for LNG Facilities due to Supply Diversity, Network Connectivity, & 700 bcf of Total Working Gas Storage U.S. LNG FEEDGAS & KM TRANSPORT POTENTIAL bcfd Previous WM forecast Uplift from October WM forecast KM…
  21. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 21
    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,…
  22. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 22
    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)…
  23. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 23
    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…
  24. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 24
    Terminals Segment Overview Refined products focused; Providing customers with unmatched scale, service-offerings & market-making connectivity of capacity ASSET SUMMARY terminals (mmbbls) Terminals segment Bulk 28 Terminals segment…
  25. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 25
    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…
  26. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 26
    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 billion FLOW(a) millions barrels of…
  27. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 27
    RNG Market Opportunity U.S. RNG PRODUCTION bcfd RNG DEMAND MARKETS transportation market voluntary market 3.2 RNG-based CNG & If RNG volumes are Parties interested in expect landfills to drive growth LNG emit 50-75% consumed by fleets…
  28. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 28
    RNG Portfolio Grows with Recent Acquisitions LANDFILL-RNG ANNUAL PRODUCTION PRIMARILY CONTRACTED IN CAPACITY net to KM TRANSPORTATION MARKET TODAY Potential to grow +0.6 bcf over next decade Long-term contracts in transportation/RIN…
  29. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 29
    Minimum Book Tax High-level example of calculation Net income Add back: Book depreciation Add back: Book federal income tax Subtract: Tax depreciation 2022 budgeted tax depreciation of 5.2 billion Adjusted Financial Statement Income…
  30. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 30
    ESG LEADER Kinder Morgan Building, Houston, Texas
  31. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 31
    ESG Strategy Provide energy transportation & storage services in a safe, efficient, and environmentally responsible manner for the benefit of people, communities, and businesses Environmental Social Governance Invest in low carbon…
  32. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 32
    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…
  33. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 33
    Responsibly Sourced Natural Gas Conventional natural gas produced by companies whose operations meet certain ESG standards Standards focus on management practices TOTAL NATURAL GAS PRODUCTION REPRESENTED BY for methane emissions, water…
  34. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 34
    New PCG Pooling Service on TGP May attract additional volumes to our system New PCG pooling service encourages certified producers to move their gas on TGP Pooling service is now available at all pooling points across the pipeline…
  35. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 35
    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…
  36. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 36
    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 4 MSCI A FTSE 3 of 197 Refiners & Pipelines; Oil & Gas Refining,…
  37. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 37
    APPENDIX Tall Cotton compressor station, Seminole, Texas
  38. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 38
    U.S. Production Continues to Recover from Pandemic U.S. NATURAL GAS PRODUCTION bcfd U.S. CRUDE PRODUCTION mmbbld 108 15 14 Recovers to pre-pandemic levels during 2023 102 13 96 12 90 2022 production above 11 pre-pandemic…
  39. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 39
    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 2024 4,000…
  40. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 40
    Refined Products Volumes Recovering to Pre-Pandemic Levels GASOLINE(a) mbbld DIESEL(a) mbbld JET FUEL(a) mbbld 2019 2022B 2022 2019 2022B 2022 2019 2022B 2022 1,200 1,200 1,200 1,000 1,000 1,000 800 800 800 600 600 600 400…
  41. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 41
    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 2024 crude, mmbld 900 2024 +36% from 2021…
  42. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 42
    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 (RIN+LCFS+BTC) Products…
  43. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 43
    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…
  44. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 44
    Energy Transition Ventures (ETV) Group The group is evaluating commercial opportunities Opportunities for ETV group are outside emerging from the low-carbon energy transition of our existing asset base Business segments will continue…
  45. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 45
    Opportunity to Capture Carbon from Stationary Sources CCUS economics are improving but remain challenged U.S. CO2 EMISSIONS FROM POINT SOURCES CURRENT ESTIMATED U.S. CARBON CAPTURE COST /tonne 140 Other facilities - lower 449 MMTPA,…
  46. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 46
    Contract Strategy Insulates Cash Flow Through Commodity 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…
  47. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 47
    Outperforming 2022 Financial Guidance 2022 Variance to Key metrics Forecast 2022 Budget Net income 2.5 billion +2% Stronger than expected commodity prices Favorable renewals in Natural Gas (Intrastates, NGPL, MEP, TGP) Adjusted…
  48. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 48
    NON-GAAP FINANCIAL MEASURES & RECONCILIATIONS Gulf Coast Express
  49. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 49
    GAAP Reconciliations in millions 2023 2022 2023 2022 Projected Projected 2021 Projected Projected 2021 Guidance Guidance Actual Guidance Guidance Actual Net income attributable to Kinder Morgan, Inc. (GAAP) 2,500 2,500 1,784 Net…
  50. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 50
    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…
  51. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 51
    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…
  52. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 52
    Reconciliation of Adjusted EBITDA, Normalized for Divestitures in millions Reconciliation of Adjusted EBITDA, Normalized for Divestitures 2016 2017 2018 2019 2020 2021 Net income attributable to Kinder Morgan, Inc. (GAAP) 708 183…
  53. December 2022 Investor Presentation – Kinder Morgan, Inc. – slide 53
    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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