Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Q2 2025 Earnings Presentation
36 slides from Kinder Morgan's earnings presentation, Jul 16, 2025
Slide 1: 2Q 2025 Investor Presentation
2Q 2025 Investor Presentation May Update EPNG Mojave Compressor Station
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 are encouraged to con
Slide 3: Irreplaceable Infrastructure Portfolio
Irreplaceable Infrastructure Portfolio NATURAL GAS Delivering Energy. Improving Lives. One of the Largest U.S. Natural Gas Transmission Networks 65% — ~66,000 miles of natural gas pipelines moving ~40% of U.S. natural gas production — Interest in over 700 bcf of working storage capacity, ~15% of U.S
Slide 4: Driving Long-Term Shareholder Value
Driving Long-Term Shareholder Value Predictable & Natural Gas Balance Sheet High-Returning Returns to Growing Cash Focus Strength Growth Projects Shareholders Flows ~2/3 of cash flows ~69% of cash flows ~3.8x YE 2025B Net Increasing dividend come from are take-or-pay or Debt / Adjusted for 8th strai
Slide 5: Highly Contracted, Predictable Cash Flows
Highly Contracted, Predictable Cash Flows CASH FLOW MIX 95% Take-or-Pay, Fee-Based, or Hedged Cash Flows Unhedged Hedged 5% 5% Take-or-Pay 64% Entitled to payment regardless of throughput Reservation fee for capacity Fee-Based Fee-Based 26% Fixed fee collected regardless of commodity price Volumetri
Slide 6: Strong Business Mix Continues to Improve
Strong Business Mix Continues to Improve BUSINESS MIX Natural Gas Transmission & Storage Natural Gas G&P CHANGES SINCE 2014 CO2 Refined Products Natural Gas Transmission & 27% Steady 26% Storage increased +16% 9% 19% -10% 6% Natural Gas G&P decreased -5% -5% 11% NATURAL GAS CO2 reduced -10% 59% 43%
Slide 7: Growing Our Project Backlog While Maintaining Discipline on Returns
Growing Our Project Backlog While Maintaining Discipline on Returns PROJECT BACKLOG OVER TIME(a) Expansive footprint creates opportunities $ Billion for differentiated returns Natural Gas Segment Other Segments $8.8 $8.1 Natural gas backlog up Every project must meet disciplined return +$5.8 billion
Slide 8: $8.8bn Committed Growth Capital Project Backlog as of 3/31/2025
$8.8bn Committed Growth Capital Project Backlog as of 3/31/2025 ~20% of Backlog Capital in Service During Remainder of 2025 $ million TOTAL Natural Gas (excluding G&P) $7,394 Nearly all serving LNG, Power, and LDC demand Other 137 Primarily refined product projects Subtotal $7,531 Contracted, stable
Slide 9: 2025 Budget Highlights
2025 Budget Highlights Currently Expect to Exceed Budget by at Least the Contributions from the Outrigger Acquisition $ $ Adjusted Adjusted Net Debt / Discretionary Cash EPS EBITDA Adj. EBITDA Capital(a) Returns $1.27 $8.3bn 3.8x $2.3bn $2.6bn ~10% increase ~4% increase -0.2x decrease infrastructure
Slide 10: Demand for U.S. Natural Gas Projected to Grow
Demand for U.S. Natural Gas Projected to Grow U.S. NATURAL GAS DEMAND bcfd KMI Wood Mackenzie 135 +28 bcfd Demand is forecasted to +22 bcfd 130 increase 22 – 28 bcfd by the end of the decade 125 120 115 110 105 2024 2025 2026 2027 2028 2029 2030 Existing Infrastructure is Highly Utilized; New Invest
Slide 11: WoodMac Natural Gas Demand Overview: 2024 – 2030
WoodMac Natural Gas Demand Overview: 2024 – 2030 ~85% of Growth is Expected to Occur in Texas & Louisiana, Driven by LNG Exports & Industrial 2024 U.S. Demand 110 bcfd Increase in demand by 2030 +22 bcfd LNG Feedgas 1 +15 bcfd of Gulf Coast demand growth Well positioned to grow our deliveries over t
Slide 12: LNG Exports Driving Natural Gas Demand Growth
LNG Exports Driving Natural Gas Demand Growth Growth Primarily Along the Texas & Louisiana Gulf Coast with Great Overlap with Our Assets WOODMAC U.S. LNG FEEDGAS FORECAST bcfd KMI has long-term contracts to move ~7 bcfd to facilities today & ~11 bcfd by the end of 2027 Actively pursuing a significan
Slide 13: Growing Power Needs Boosting Demand for Natural Gas
Growing Power Needs Boosting Demand for Natural Gas INCREASING NATURAL GAS FIRED POWER DEMAND DRIVEN BY Population Migration Coal-to-Gas Industrial Renewable Data Center & Economic Growth Conversions Reshoring Backup Demand KMI forecasting 3 bcfd increase in Increases need for Coal plants continue R
Slide 14: Rising Need for Natural Gas Amid Growing Market Volatility
Rising Need for Natural Gas Amid Growing Market Volatility Lower 48 Natural Gas Demand(a) vs. Average Daily Temperature Natural gas demand for a given 2024 2019 2014 2009 degree day continues to increase 145 Increasingly variable demand leads 130 to greater spikes in demand Weather-driven demand spi
Slide 15: WoodMac Natural Gas Supply Overview: 2024 – 2030
WoodMac Natural Gas Supply Overview: 2024 – 2030 2024 U.S. Production 103 bcfd Increase in supply by 2030 +22 bcfd 4 Northeast +7 bcfd from the Marcellus/Utica 1 Production constrained despite ample, low-cost supply 4 Limited infrastructure opportunity despite strong demand 4 1 Permian +7 bcfd of as
Slide 16: Natural Gas Segment Overview
Natural Gas Segment Overview Connecting Key Natural Gas Resources with Major Demand Centers One of the Largest Natural Gas Transmission Networks in the U.S. KMI Transports ~40% of U.S. Natural Gas Production ~45% ~50% ~45% of all feedgas of all U.S. natural of all direct natural deliveries to U.S. g
Slide 17: Rising Demand Benefitting Our Natural Gas Transportation Business
Rising Demand Benefitting Our Natural Gas Transportation Business INCREASED PIPELINE USAGE FACTOR(a) 2016 5-Pipe 2024 5-Pipe Increased Demand Leading To Average Average WOODMAC U.S. NATURAL GAS DEMAND 74% 87% bcfd +20% INCREASED CONTRACT TERMS AND/OR RATES +38% EXAMPLES 8.1 132 7.3 years years 110 5
Slide 18: $8.0 Billion of Approved Natural Gas Projects
~$8.0 Billion of Approved Natural Gas Projects Major Projects Capital(a) Capacity In-Service Date Status Pursuing substantial additional ($bn) (bcfd) opportunities beyond those South System Expansion 4 4Q28, currently in our backlog 1 $1.8 1.3 Permitting SNG & EEC 4Q29 10 2 Mississippi Crossing $1.7
Slide 19: Products Segment & Terminals Segment Overview
Products Segment & Terminals Segment Overview Both Segments Principally Refined Products Focused Nearly $11bn of Adjusted Segment EBDA & $8bn of FCF Generated Over 5 Years (a) TERMINALS & PRODUCTS PIPELINES ADJUSTED SEGMENT EBDA $ Millions NY Harbor Products Segment Terminals Segment $2,263 $2,282 $
Slide 20: CO2 Segment: EOR and CO2 Transport Overview
CO2 Segment: EOR and CO2 Transport Overview World Class, Fully-Integrated Assets Consistently Generating Robust Free Cash Flow CO2 EOR & TRANSPORT FREE CASH FLOW Interest in 3 oil CO2 pipelines $ Millions fields with 8.8 CO2 source fields (a) FCF Capex Acquisitions Adj. Segment EBDA Oil fields billi
Slide 21: CO2 Segment: Energy Transition Ventures (ETV) Group Overview
CO2 Segment: Energy Transition Ventures (ETV) Group Overview Pursuing Commercial Opportunities Emerging from the Lower Carbon Energy Evolution Future RNG CCS Opportunities Established a growing RNG platform Evaluating commercial Up to 6.4 bcf(a) of opportunities across the Renewable Fuels, 6 facilit
Slide 22: Committed to Being a Good Steward
Committed to Being a Good Steward $ Reduce & Leak Safety Continuous Diversity & Investing in Lower Avoid Methane Detection Culture Improvement Inclusion Carbon Fuels Emissions ~8% 100% 42% BB → AAA 33% $8.0bn Reduction in Of our natural gas Reduction in MSCI score Total gender Primarily natural gas;
Slide 23: Highly Rated by Sustainability Ratings Agencies
Highly Rated by Sustainability Ratings Agencies Upgrade by MSCI to AAA in 2024 MSCI AAA Sustainalytics Top 15% SSGA Top 10% Oil & Gas Refining, out of 105 Oil & Gas R-Factor in Marketing, Transportation Storage and Transportation Companies & Oil & Gas – Midstream sector & Storage Industry 191 Refine
Slide 24: Appendix
APPENDIX EPNG McClellan Creek Crossing
Slide 25: Contract Strategy Insulates Cash Flows Through Commodity Cycles
Contract Strategy Insulates Cash Flows Through Commodity Cycles Structure Long-Term Contracts That Minimize Price & Volume Volatility Take-or-Pay or Hedged Fee-Based Commodity- Avg. remaining Volumes & price are Price is fixed, contract term contractually fixed volumes are variable Price Based as of
Slide 26: High-Quality, Natural Gas Focused Cash Flows
High-Quality, Natural Gas Focused Cash Flows G&P 9% Natural Gas Transportation & Storage CASH FLOW MIX(a) – Accounts for 59% of 2025B KMI Adjusted Segment EBDA Remaining KM 35% – 88% take-or-pay cash flows(a) Transportation & Storage – Average remaining contract life: 91% – ~7 years for transportati
Slide 27: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Our non-GAAP financial measures described below should not be considered alternatives to GAAP net income attributable to Kinder Morgan, Inc. or other GAAP measures and have important limitations as analytical tools. Our computations of these non-GAAP financial meas
Slide 28: Use of Non-GAAP Financial Measures (Continued)
Use of Non-GAAP Financial Measures (Continued) Amounts Associated with Joint Ventures - Certain Items, DCF and Adjusted EBITDA reflect amounts from unconsolidated joint ventures (JVs) and consolidated JVs utilizing the same recognition and measurement methods used to record “Earnings from equity inv
Slide 29: Net Income, Adjusted Net Income Attributable to KMI, and DCF
Net Income, Adjusted Net Income Attributable to KMI, and DCF $ in Millions 2025 2024 Change Q1 2025 Budget Actual $ % Actual Net income attributable to KMI $ 2,829 $ 2,613 $ 216 8% $ 717 Certain Items Change in fair value of derivative contracts - 72 (72) (100%) 84 Loss on impairment - (69) 69 100%
Slide 30: 2014 and 2025B Reconciliation of Segment EBDA to Adjusted Segment EBDA
2014 and 2025B Reconciliation of Segment EBDA to Adjusted Segment EBDA $ in Millions 2025 2014 2025 2014 (a) (a) Segment EBDA Budget Actual Segment EBDA Budget Actual Natural Gas Pipelines Segment EBDA $ 5,636 $ 4,288 CO2 Segment EBDA 755 1,248 Certain Items (b) Certain Items (b) Contract early term
Slide 31: 2024 Reconciliation of Recasted Adjusted Segment EBDA
2024 Reconciliation of Recasted Adjusted Segment EBDA $ in Millions 2024 2024 (a) (b) Segment EBDA Actual Adjustment Recasted Natural Gas Pipelines Segment EBDA $ 5,427 $ (34) $ 5,393 Certain Items (c) - Change in fair value of derivative contracts 75 - 75 Loss on impairments, divestitures and other
Slide 32: Reconciliation of Adjusted Net Income Attributable to Common Stock and Adjusted EPS
Reconciliation of Adjusted Net Income Attributable to Common Stock and Adjusted EPS $ in Millions 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025B Net income attributable to KMI $ 708 $ 183 $ 1,609 $ 2,190 $ 119 $ 1,784 $ 2,548 $ 2,391 $ 2,613 $ 2,829 NCI associated with Certain Items (8) - - - -
Slide 33: Reconciliations of KMI FCF and CO2 EOR & Transport FCF
Reconciliations of KMI FCF and CO2 EOR & Transport FCF $ in Millions Reconciliation of KMI FCF 2020 2021 2022 2023 2024 2025B CFFO (GAAP) $ 4,550 $ 5,708 $ 4,967 $ 6,491 $ 5,635 $ 5,899 Capital expenditures (GAAP)(a) (1,707) (1,281) (1,621) (2,317) (2,629) (3,141) FCF 2,843 4,427 3,346 4,174 3,006 2
Slide 34: Reconciliations of Terminals FCF and Products Pipelines FCF
Reconciliations of Terminals FCF and Products Pipelines FCF $ in Millions Reconciliation of Terminals FCF 2020 2021 2022 2023 2024 2025B EBDA for Terminals (b) $ 1,045 $ 908 $ 975 $ 1,039 $ 1,099 $ 1,103 Certain items: Loss (gain) on impairments, divestitures and other write-downs, net (55) 34 - - -
Slide 35: Reconciliation of Adjusted EBITDA, Normalized for Divestitures
Reconciliation of Adjusted EBITDA, Normalized for Divestitures $ in Millions Reconciliation of Adjusted EBITDA, Normalized for Divestitures 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025B Net income attributable to KMI $ 708 $ 183 $ 1,609 $ 2,190 $ 119 $ 1,784 $ 2,548 $ 2,391 $ 2,613 $ 2,829 NCI
Slide 36: Reconciliation of Net Debt
Reconciliation of Net Debt $ in Millions Reconciliation of Net Debt 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025B Current portion of debt $ 2,696 $ 2,828 $ 3,388 $ 2,377 $ 2,558 $ 2,646 $ 3,385 $ 4,049 $ 2,009 $ 1,209 Total long-term debt 37,354 35,015 33,936 31,915 32,131 30,674 28,403 28,067