NOVEMBER 2022 INVESTOR PRESENTATION
Altamont gathering right-of-way, Granite Park, Utah
Disclosure
Forward-looking statements / non-GAAP financial measures / industry & market data
General - The information contained in this presentation does not purport to be all-inclusive or to contain all information that prospective investors may require. Prospective investors are encouraged to conduct their own analysis and review of information contained in this presentation as well as important additional information through the Securities and Exchange Commission's ("SEC") EDGAR system at www.sec.gov and on our website at www.kindermorgan.com.
Policies and Procedures -This presentation includes descriptions of our vision, mission and values and various policies, standards, procedures, processes, systems, programs, initiatives, assessments,
technologies, practices, and similar measures related to our operations and compliance systems ("Policies and Procedures"). References to Policies and Procedures in this presentation do not represent
guarantees or promises about their efficacy, or any assurance that such measures will apply in every case, as there may be exigent circumstances, factors, or considerations that may cause implementation of other measures or exceptions in specific instances.
Forward-LookingStatements - This presentation includes forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934 ("Exchange Act"). Forward-looking statements include any statement that does not relate strictly to historical or current facts and include statements accompanied by or using words such as "anticipate," "believe," "intend," "plan," "projection," "forecast," "strategy," "outlook," "continue," "estimate," "expect," "may," "will," "shall," and "long-term". In particular, statements, express or implied, concerning future actions, conditions or events, including our Policies and Procedures and their efficacy, long term demand for our assets and services, energy-transition related opportunities, including opportunities related to alternative energy sources, future operating results or the ability to generate revenues, income or cash flow or to pay dividends are forward-looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. There is no assurance that any of the actions, events or results of the forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial condition. Because of these uncertainties, you are cautioned not to put undue reliance on any forward-looking statement. We disclaim any obligation, other than as required by applicable law, to publicly update or revise any of our forward-looking statements to reflect future events or developments.
Future actions, conditions or events and future results of operations may differ materially from those expressed in these forward-looking statements. Many of the factors that will determine these results are beyond our ability to control or predict. These statements are necessarily based upon various assumptions involving judgments with respect to the future, including, among others; commodity prices, including prices for Renewable Identification Numbers under the U.S. Environmental Protection Agency's Renewable Fuel Standard Program; the timing and extent of changes in the supply of and demand for the products we transport and handle; national, international, regional and local economic, competitive, political and regulatory conditions and developments; the timing and success of business development efforts; the timing, cost, and success of expansion projects; technological developments; the condition of capital and credit markets; inflation rates; interest rates; the political and economic stability of oil- producing nations; energy markets; federal, state or local income tax legislation; weather conditions; environmental conditions; business, regulatory and legal decisions; terrorism; cyber-attacks; and other uncertainties. Important factors that could cause actual results to differ materially from those expressed in or implied by forward-looking statements include risks and uncertainties described in this presentation and in our Annual Report on Form 10-K for the year ended December 31, 2021 and our subsequent reports filed with the SEC (under the headings "Risk Factors," "Information Regarding Forward-Looking Statements" and elsewhere). These reports are available through the SEC's EDGAR system at www.sec.gov and on our website at www.kindermorgan.com.
GAAP - Unless otherwise stated, all historical and estimated future financial and other information included in this presentation have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP").
Non-GAAP- In addition to using financial measures prescribed by GAAP, we use non-generally accepted accounting principles ("non-GAAP") financial measures in this presentation. Descriptions of our non- GAAP financial measures, as well as reconciliations of historical non-GAAP financial measures to their most directly comparable GAAP measures, can be found in this presentation under "Non-GAAP Financial Measures and Reconciliations". These non-GAAP financial measures do not have any standardized meaning under GAAP and may not be comparable to similarly titled measures presented by other issuers. As such, they should not be considered as alternatives to GAAP financial measures.
Industry and Market Data - Certain data included in this presentation has been derived from a variety of sources, including independent industry publications, government publications and other published independent sources. Although we believe that such third-party sources are reliable, we have not independently verified, and take no responsibility for, the accuracy or completeness of such data.
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Leader in North American Energy Infrastructure
Energy infrastructure, especially natural gas pipelines & storage, has a decades-long time horizon
Largest natural gas transmission network
- ~71,000 miles of natural gas pipelines move ~40% of U.S. natural gas production
- Own interest in 700 bcf of working storage capacity, >15% of U.S. natural gas storage
Largest independent transporter of refined products
- Transport ~1.7 mmbbld(a) of refined products to West and East Coast demand markets
- ~10,000 miles of refined products and crude pipelines
Largest independent terminal operator
Delivering energy to improve lives & create a better world
- 141 terminals & 16 Jones Act vessels
- Significant provider of refined products storage along the Houston Ship Channel, near the world's most complex refining center
Largest CO2 transport capacity of ~1.5 bcfd
- ~1,500 miles of CO2 pipelines
- Produce CO2 and transport to the Permian where it is used for enhanced oil recovery
Growing Energy Transition Portfolio
- 7.0 bcf(a) of RNG production capacity by early 2024
BUSINESS MIX | NATURAL GAS | PRODUCTS | TERMINALS | CO2 | ||||
Storage | Terminals | Terminals | CO2 source fields | |||||
62% | 16% | 13% | 9% | |||||
Processing | 16 Jones Act tanker | Oil fields | ||||||
Natural gas | Products | Terminals | CO2 | LNG facilities | Operational RNG plants | |||
RNG plants under development | ||||||||
LNG production & fueling facilities | ||||||||
Note: Volumes per 2022 budget. Business mix based on 2022 budgeted Adjusted Segment EBDA. See | Non-GAAP Financial Measures & Reconciliations. | 3 | ||||||
a) KM share. |
Strategy
Maximize the value of our assets on behalf of shareholders
Stable, fee-based assets
Core energy infrastructure
Safe & efficient operator
Multi-year contracts
~94% take-or-pay, hedged, & fee- based cash flows(a)
Invest in a low carbon future
Established Energy
Transition Ventures
Group
$2.7 billion backlog with nearly 80% allocated to lower carbon investments
Investing in natural gas, RNG, and liquid biofuels infrastructure at attractive returns
Financial flexibility
4.3x 2022B expected YE Net Debt / Adjusted
EBITDA
Long-term target remains around 4.5x
Low cost of capital
Mid-BBB credit ratings
Ample liquidity
Disciplined capital allocation
Conservative assumptions
High return thresholds
Self-funding 100% of capex & dividends for last six years
Reduced net debt by over $12 billion since 1Q 2015
Enhance shareholder value
Maintain strong balance sheet
Attractive investments
Dividend growth; +3% YoY
Share repurchases; $367mm YTD
Natural gas storage wellhead, Houston, Texas | |
Note: See Non-GAAP Financial Measures & Reconciliations. | 4 |
a) Based on 2022 budgeted Adjusted Segment EBDA. |
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 commodity price |
Reservation fee for capacity | Volumetric-based revenues |
Commodity-price based
Disciplined approach to managing price volatility
Substantially hedged near-term price exposure
Note: See Non-GAAP Financial Measures & Reconciliations. | 5 |
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Kinder Morgan Inc. published this content on 14 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2022 12:13:12 UTC.