Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Shareholder Meeting (May 2021)
19 slides from Kinder Morgan's shareholder meeting presentation, May 12, 2021
Slide 1: Annual Meeting of Stockholders
ANNUAL MEETING OF STOCKHOLDERS May 2021
Slide 2: Disclosure
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 areencouraged to cond
Slide 3: Strategy
Strategy Maximize the value of our assets on behalf of shareholders Disciplined Enhance Stable, fee- Invest in a low Financial capital shareholder based assets carbon future flexibility allocation value Core energy Newly formed 3.9x-4.0x 2021 Conservative Maintain strong infrastructure Energy Transi
Slide 4: Leader in North American Energy Infrastructure
Leader in North American Energy Infrastructure Unparalleled & irreplaceable asset footprint built over decades Connecting major U.S. natural gas resource plays to key demand centers Largest natural gas transmission network Move ~40% of U.S. natural gas consumption & exports — ~70,000 miles of natura
Slide 5: Relative Stock Price Performance
Relative Stock Price Performance Since beginning of 2020 140% 120% Price indexed to 100 100% 80% 60% 40% 20% 0% KMI Alerian Midstream Energy index SP500 index Alerian MLP index Note: Performance through April 29, 2021. The Alerian Midstream Energy Index (AMNA) is a broad-based composite of North Ame
Slide 6: Updated 2021 Budget
Updated 2021 Budget Committed to maintaining a strong balance sheet & returning value to shareholders Key metrics Updated 2021 Budget Variance to Prior 2021 Budget Net income $2.7 – $2.9 billion $0.6 – $0.8 billion Adjusted EBITDA $7.6 – $7.7 billion $0.8 – $0.9 billion Distributable Cash Flow (DCF)
Slide 7: Self-Funding Capex & Dividends Since 2016
Self-Funding Capex & Dividends Since 2016 Opportunistic asset monetization and free cash flow generation enabled meaningful debt reduction Generated $1.9 billion of free cash flow after dividends over last 5 years Borrowing, net Cash from BS Debt repayment Cash from BS Buybacks Asset sales, Cash to
Slide 8: 2020: a Remarkable Year in Energy
2020: a Remarkable Year in Energy In the last century, only World Wars & the Great Depression have produced larger declines in global energy demand U.S. RIG COUNT DECLINE EVENTS SINCE 1975 Globally, it’s estimated that in 2020: 0% Energy demand declined 5% -10% Natural gas demand dropped 3% 2011-201
Slide 9: Weathered COVID Challenges in 2020 while Improving Shareholder Value
Weathered COVID Challenges in 2020 while Improving Shareholder Value Committed to being disciplined stewards of capital $700 million ~30% reduction in discretionary capital compared to budget $190 million saved in operating costs & sustaining capital $200 million improvement in distributable cash fl
Slide 10: $1.4 Billion Project Backlog as of 3/31/2021
$1.4 Billion Project Backlog as of 3/31/2021 Primarily focused on contracted natural gas opportunities DEMAND SUPPLY CAPITAL ESTIMATED PIPELINE PULL PUSH ($ billion) IN-SERVICE CAPACITY Supply for U.S. power & LDC demand (TGP, FGT, TX intra, SNG) • $ 0.4 Q4 2021 – 2023 0.5 bcfd Supply for LNG export
Slide 11: Newly-Formed Energy Transition Ventures (ETV) Group
Newly-Formed Energy Transition Ventures (ETV) Group Still early days but already evaluating opportunities The group will evaluate commercial opportunities Opportunities for ETV group are outside of emerging from the low-carbon energy transition our existing asset base – Business segments will cont
Slide 12: Compelling Investment Opportunity
Compelling Investment Opportunity Strategically-positioned assets generating substantial cash flow with attractive investment opportunities Stable cash flows with ~72% take-or-pay or hedged earnings(a) ~6% current yield & healthy dividend coverage Top 10 dividend yield in S&P500 Dividends & capex fu
Slide 13: Q&A
q&a
Slide 14: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations Defined Terms Reconciliations for the historical periods 14
Slide 15: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures We use the non-GAAP financial measures of Adjusted Earnings and Distributable Cash Flow (or DCF), both in the aggregate and per share for each; Adjusted Segment EBDA; Adjusted EBITDA; Net Debt; Net Debt to Adjusted EBITDA; Project EBITDA; Free Cash Flow; and CO2 Se
Slide 16: Use of Non-GAAP Financial Measures (Continued)
Use of Non-GAAP Financial Measures (Continued) Adjusted Segment EBDA is calculated by adjusting segment earnings before DD&A and amortization of excess cost of equity investments (Segment EBDA) for Certain Items attributable to the segment. Adjusted Segment EBDA is used by management in its analysis
Slide 17: GAAP Reconciliations
GAAP Reconciliations in millions 2021 Projected 2020 2021 Projected 2020 Guidance Range Actual Guidance Range Actual Net income attributable to Kinder Morgan, Inc. (GAAP) $ 2,700 $ 2,900 $ 119 Net income attributable to Kinder Morgan, Inc. (GAAP) $ 2,700 $ 2,900 $ 119 Total Certain Items (g) - - 1,8
Slide 18: GAAP Reconciliations
GAAP Reconciliations $ in millions 2020 Certain Items in Segment Adjusted Adjusted EBDA Segment Segment Reconciliation of Adjusted Segment EBDA (GAAP) EBDA EBDA Certain Items 2020 Natural Gas Pipelines $3,483 $983 $4,466 Fair value amortization $ (21) Products Pipelines 977 50 1,027 Legal, environme
Slide 19: GAAP Reconciliations
GAAP Reconciliations $ in millions Reconciliation of DD&A and amortization of excess cost of equity investments for DCF 2020 Reconciliation of income tax expense for DCF 2020 Depreciation, depletion and amortization (GAAP) ($2,164) Income tax expense (GAAP) $ (481) Amortization of excess cost of equ