Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Shareholder Meeting (May 2020)
16 slides from Kinder Morgan's shareholder meeting presentation, May 13, 2020
Slide 1: Annual Meeting of Stockholders
Annual Meeting of Stockholders May 13, 2020
Slide 2: Disclosure
Disclosure Forward looking statements / non-GAAP financial measures 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 a
Slide 3: KMI: Overview
KMI: Overview – ~74% take-or-pay or hedged earnings(a) Cash Flow Stability – ~76% net revenues from investment grade customers or with substantial credit support (b) – >$30 billion market capitalization – one of the 10 largest energy companies in S&P500 Significant Scale – ~$7 billion 2020 Forecast
Slide 4: Kinder Morgan: Leader in North American Energy Infrastructure
Kinder Morgan: Leader in North American Energy Infrastructure Unparalleled & irreplaceable asset footprint built over decades CO2 & transport Largest natural gas transmission network CO2 EOR oil & gas production Natural gas 6% 3% pipelines ~70,000 miles of natural gas pipelines Terminals 14% 659
Slide 5: Relative Stock Price Performance
Relative Stock Price Performance Since beginning of 2019 160% 48 140% 42 120% 36 Price Indexed to 100 KMI Volume (mm) 100% 30 80% 24 60% 18 40% 12 20% 6 12/31/2019 0% - KMI Volume KMI Alerian Midstream Energy index SP500 index Alerian MLP index Note: The Alerian Midstream Energy Index is a broad-bas
Slide 6: Our Response to COVID-19
Our Response to COVID-19 Prioritizing the health of our co-workers & their families while maintaining safe & reliable operations of our assets Leveraging well-established and previously utilized business continuity & pandemic response plans Kinder Morgan’s Pandemic Preparedness Committee activel
Slide 7: 2020 Updated Guidance
2020 Updated Guidance Revised to incorporate estimated impact of COVID-19 & oil price decline Change from Change from Key metrics 2020 Forecast 2020 Budget 2019 Adjusted EBITDA $7.0 billion (8)% (8)% Distributable cash flow $4.6 billion (10)% (8)% Expected reduction in DCF to be more than offset wit
Slide 8: Resilient through Prior Cycles
Resilient through Prior Cycles Conservative business strategy built to withstand commodity price dislocations Quarterly Adjusted EBITDA (left, in $mm) WTI Crude Oil (right, $ / bbl) $2,100 $100 $1,900 $90 $1,700 $80 $1,500 $70 $1,300 $60 $1,100 >$25 / bbl ~$25 / bbl $50 decline decline $900 $40 $700
Slide 9: Prepared to Weather the Storm
Prepared to Weather the Storm Disciplined management of the balance sheet improves financial position relative to prior downturns NET DEBT / ADJUSTED EBITDA CFFO – CAPITAL EXPENDITURES – DIVIDENDS PAID(c) $ in millions Significantly lower leverage with ~$10 billion Self funding all dividends & capex
Slide 10: $3.3bn of Commercially-Secured Capital Projects Underway
$3.3bn of Commercially-Secured Capital Projects Underway Our project backlog as of 3/31/2020 Demand Pull / KMI Capital Estimated Supply Push ($ billion) In-Service Date Capacity Permian takeaway projects (PHP, TX Intrastates, NGPL) $ 0.9 Q4 2020 – Q1 2021 4.0 bcfd Supply for U.S. power & LDC dem
Slide 11: Compelling Investment Opportunity
Compelling Investment Opportunity Strategically-positioned assets generating substantial cash flow with attractive investment opportunities Stable cash flows with ~74% take-or-pay or hedged earnings(a) ~$7 billion 2020 Forecast Adjusted EBITDA Assuming return to normal economic activity, Board to re
Slide 12: Q&A
KINDER/MORGAN Q&A
Slide 13: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations Defined Terms Reconciliations for the historical periods 13
Slide 14: 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), each in the aggregate and per share; segment earnings before depreciation, depletion, amortization (DD&A) and amortization of excess cost of equity investments and Certain Items
Slide 15: 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 16: GAAP Reconciliations
GAAP Reconciliations $ in millions Reconciliation of DCF 2019 Reconciliation of Adjusted EBITDA 2019 Net income available to common stockholders (GAAP) $ 2,190 Net income (GAAP) $ 2,239 Total Certain Items (29) Total Certain Items (29) Adjusted Earnings (a) 2,161 DD&A and amortization of excess cost