Slide 1: August 2022 Investor Presentation
AUGUST 2022 INVESTOR PRESENTATION 1 Altamont gathering right-of-way, Granite Park, Utah
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: Leader in North American Energy Infrastructure
Leader in North American Energy Infrastructure Energy infrastructure, especially natural gas pipelines & storage, has a decades-long time horizon Largest natural gas transmission network Delivering energy to improve lives & create a better world — ~71,000 miles of natural gas pipelines move ~40% of
Slide 4: Strategy
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 4.3x 2022B Conservative Maintain strong infrastructure Transition V
Slide 5: Highly-Contracted Cash Flows
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 revenu
Slide 6: Proven History of Cash Flow Generation and Shareholder Returns
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 $31 $1.9 $0.50 2016 2022B 2016 2022B 2016 2022B 2016 2022B 2016
Slide 7: Outperforming 2022 Financial Guidance
Outperforming 2022 Financial Guidance $ in billions, except per share 2022 Updated Key metrics Budget Guidance Net income $2.5 +5% Stronger than expected commodity prices Favorable renewals in Natural Gas (Intrastates, NGPL, MEP, TGP) Adjusted EBITDA $7.2 +5% Favorable G&P volumes Partially offset b
Slide 8: Value Opportunity to Invest in Defensive Cash Flows & Healthy Dividend
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 the x-axis S&P500 tickers within the dividend yield range s
Slide 9: The World Needs Energy Inclusivity
THE WORLD NEEDS ENERGY INCLUSIVITY 9 TransColorado Pipeline compressor station, Mancos, Colorado
Slide 10: All Energy Sources Required to Meet Demand Outlook
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 Diverse energy Diverse power Strengthens mix reduces mix ensures geopol
Slide 11: U.S. is a Responsible Producer
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 1,200 … & the U.S. produces more 5 lower emission intensity than
Slide 12: U.S. Helps Meet Increasing Global Demand
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 20 103 103 100 20 20 19 100 92 $20.00 Implied exports 17 81 Implied expo
Slide 13: Energy Production = Security
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 world’s largest natural gas producer 1,000 800 600 Once a significant producer, Europe
Slide 14: Energy Transition may Enrich & Empower Adversarial Governments
Energy Transition may Enrich & Empower Adversarial Governments IEA Net Zero Scenario suggests mineral requirements for clean energy technologies would need to grow 6x by 2050 MARKET SIZE & LEVEL OF GEOGRAPHICAL PROCESSING OF SELECT MINERALS & FOSSIL FUELS BY TOP 3 CONCENTRATION 2019 COUNTRIES IN EAC
Slide 15: Electricity Prices are Frequently Higher in Countries with Aggressive Energy Transition Policies
Electricity Prices are Frequently Higher in Countries with Aggressive Energy Transition Policies Cost by Country $/MWh WHOLESALE SPOT ELECTRICTY PRICES $/MWh U.S. $48.50 $40.00 $230.00 Germany $167.54 France $199.75 U.K. $211.26 Italy $222.25 Balanced, diversified energy policies help maintain affor
Slide 16: Valuable Networks
VALUABLE NETWORKS 16 Pipe storage yard at the KM Fairless Hills Terminal, Pennsylvania
Slide 17: $2.1 Billion Committed Capital Project Backlog as of 6/30/2022
$2.1 Billion Committed Capital Project Backlog as of 6/30/2022 Expect ~30% of backlog capital in service in 2022, ~50% in 2023, and ~20% in 2024 LOW $ million TOTAL CARBON Natural Gas $ 1,201 $ 1,201 48% for end use, 52% for G&P & other Products 169 69 Renewable diesel projects Terminals 207 129 Ren
Slide 18: Provide High-Value Natural Gas Takeaway in all Major Basins
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 39 Northeast +5 bcfd 34 24 Permian +10 bcfd SNG Haynesville 18 Haynesville +7 bcfd takeaway fully contract
Slide 19: Continue to Serve the Permian's Growing Gas Takeaway Needs
Continue to Serve the Permian’s 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 Advantaged Intrastates network, downstream of GCX and PHP, provides ship
Slide 20: Strong Gulf Coast Footprint Positioned to serve Demand Growth
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 117 & industrial facilities all along the Gulf Coast LNG exports
Slide 21: Transporter of Choice for LNG Facilities
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 28 28 28 Move ~7 bcfd to facilities 25 today & evaluating additional transport opportunities 24 24 21 24 21 19 21 18 15 15 15
Slide 22: Extensive Storage Capabilities & Premium Service Offerings
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, Stagecoach, EPNG, Midwest LDC & power demand flexibly serve NE
Slide 23: Products Segment Overview
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) Adjusted Segment EBDA ($mm) 2,000 $1,400 1,800 $1,200 1,600 1,400 $1,000 C
Slide 24: Long Runway for U.S. Refined Products
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 remain valuable ‒ Can accommodate biofuels ‒ Per regulations, able to recover r
Slide 25: Terminals Segment Overview
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 – Liquids 48 79 Products segment 65 55 Total Terminals 141 134 Jo
Slide 26: Our Integrated Terminal Network on the Houston Ship Channel
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 terminals & assets refined products terminals Colonial million b
Slide 27: CO2 EOR & Transport Consistently Generate Free Cash Flow
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 Original Oil FCF $907 Uri Benefit Capex Acquisitions Adj. Seg
Slide 28: RNG Portfolio Grows with MAS & NANR Acquisitions
RNG Portfolio Grows with Mas & NANR Acquisitions Continue to execute on our disciplined growth strategy U.S. RNG PRODUCTION bcfd KM LANDFILL-RNG FACILITES Landfill facilities are 3.2 3.5 — 2.2 bcf capacity already operational (1.8 bcf net to KM interest) expected to drive RNG 2.8 — Recently acquired
Slide 29: ESG Leader
ESG LEADER Kinder Morgan Building, Houston, Texas
Slide 30: ESG Strategy
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 future Safety-focused culture Risks & opportunities are monitored and
Slide 31: As Founding ONE Future Member, Encourage Industry Participation
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 to 1.44% reduce emissions across the In 2014 ONE Future set a g
Slide 32: Responsibly Sourced Natural Gas
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 usage, & RSG-COMMITTED PRODUCERS, INCLUDES NON-RSG- community
Slide 33: New PCG Pooling Service on TGP
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 ‒ PCG must meet ESG standards that focus on management practices
Slide 34: Reducing CO2 Emissions on Houston Ship Channel
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 ~38% from 2019(a) — Equivalent to CO2 emissions from: 3,860,54
Slide 35: Recognized as an ESG Leader
Recognized as an ESG Leader Highly rated by multiple agencies improved MSCI rating to A from BBB & Moody’s ranking to #2 from #14 due to enhanced disclosure Sustainalytics #3 MSCI A FTSE #3 of 199 Refiners & Pipelines Oil & Gas Refining, of Oil & Gas of 113 Oil & Gas Storage & Marketing, Transportat
Slide 36: Appendix
APPENDIX Tall Cotton compressor station, Seminole, Texas
Slide 37: U.S. Production Continues to Recover from Pandemic
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 level 84 10 78 9 72 8 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 20
Slide 38: Natural Gas Gathering & Processing Assets Across Key Basins
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 2% Eagle Ford 2024 +56% over pre-COVID levels Copano South Tex
Slide 39: Refined Products Volumes Recovering to Pre-Pandemic Levels
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 1,000 800 800 800 600 600 600 400 400 400 200 200 200 0 - - 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2022 YTD: 976 m
Slide 40: Products Segment Crude Volume Update
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 trough 2024 +35% from 2021 trough 1.5 600 1.0 300 0.5 - - 1Q19 2Q
Slide 41: Products Segment's West Coast Renewable Fuels Projects
Products Segment’s 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 (RIN+LCFS+BTC) Refined Product Terminals Proposed Renewable Dies
Slide 42: Terminals Partnering with NESTE on Renewable Fuels Logistics
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 movements 99% 89% 1Q 2023 657 mbbl capacity $65 million capex operati
Slide 43: Energy Transition Ventures (ETV) Group
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 to pursue their own energy transition opportunities on existing as
Slide 44: Opportunity to Capture Carbon from Stationary Sources
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 for carbon capture LNG storage & import / export equipment ‒
Slide 45: Net-Zero Scenarios Require Carbon Capture Infrastructure Buildout
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 2050 Princeton’s Net-Zero America Report estimates that CO2 CO2 pipeline estima
Slide 46: CCUS Economics are Improving but Remain Challenged
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 across the value $120 & government policy could advance chain C
Slide 47: RNG Demand Markets Provide Diversification
RNG Demand Markets Provide Diversification Plan to mitigate exposure to RIN volatility through fixed price contracts as the voluntary market develops REVENUE EXAMPLE $ per mmbtu D3 RINs can also satisfy D5 & D6 obligations RIN value $32.84 (a) revenues must meet or exceed traditional hurdle rates $1
Slide 48: Contract Strategy Insulates Cash Flow Through Commodity Cycles
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 Price is fixed, Commodity- contract life Segment EBDA: contractual
Slide 49: 2022 Budget Sensitivities
2022 Budget Sensitivities Limited overall commodity exposure 2022B assumptions Change Potential Impact to Adjusted EBITDA & DCF (full year) Natural Gas Products Terminals CO2 Total Natural gas G&P volumes 3,033 Bbtu/d +/- 5% $33 million $33 million Refined products volumes (gasoline, diesel & jet fu
Slide 50: Non-GAAP Financial Measures & Reconciliations
NON-GAAP FINANCIAL MEASURES & RECONCILIATIONS 50 Gulf Coast Express
Slide 51: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures The non-GAAP financial measures of Adjusted Earnings and distributable cash flow (DCF), both in the aggregate and per share for each; segment earnings before depreciation, depletion, amortization (DD&A), amortization of excess cost of equity investments and Certain
Slide 52: 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 53: GAAP Reconciliations
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 amortization $ (19) Products Pipelines 1,064 53 1,117 Legal, envir
Slide 54: GAAP Reconciliations
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) Income tax expense (GAAP) $ (369) Amortization of excess cost of eq
Slide 55: Reconciliations of KMI FCF & CO2 Segment FCF
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 2,139 2,478 2,843 4,427 Dividends paid (GAAP)(b) (1,276)
Slide 56: 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 Net income attributable to Kinder Morgan, Inc. (GAAP) $ 708 $ 183 $ 1,609 $ 2,190 $ 119 $ 1,784 Noncontrolling interests certain i
Slide 57: Reconciliation of DCF and Adjusted EBITDA Excluding Uri
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 Adjusted Earnings(a) 3,004 2,152 DD&A and amortization of e