Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Investor Day (January 2022)
152 slides from Kinder Morgan's investor day presentation, Jan 26, 2022
Slide 1: 2022 Investor Day
2022 INVESTOR DAY January 26, 2022 EPNG natural gas arch bridge over the Colorado River, Topock, Arizona
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: Agenda & Presenters
Agenda & Presenters TIME DISCUSSION PRESENTER 8:00 – 8:15 Investor Perspective Rich Kinder Executive Chairman 8:15 – 8:35 Our Future Steve Kean CEO 8:35 – 9:00 Strategy & Business Kim Dang Review President 9:00 – 9:20 BREAK 9:20 – 10:00 Panel with COO & Business Unit Leaders James Holland Tom Martin
Slide 4: Investor Perspective
INVESTOR PERSPECTIVE Image of right-of-way on net-zero Ruby pipeline
Slide 5: 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 Move ~40% of U.S. natural gas consumption & exports — ~71,000 miles of natural gas pipelines Delivering energy to
Slide 6: 25th Anniversary of 1997 Company Formation
25th Anniversary of 1997 Company Formation Key metrics Year End 1996(a) Year End 2021 Increase Market value $180 million $36 billion 200x Enterprise value $350 million $67 billion 190x Miles of pipeline 2,000 83,000 40x # of employees 175 10,515 60x Net income attributable to KMI $12 million $1.8 bi
Slide 7: Managed for shareholders by shareholders
Managed for shareholders by shareholders Highly-aligned leadership with a long-term focus & disciplined stewardship of capital 13% equity-based discipline generated & returned significant value ownership comp low cost operator since the beginning of 2016: while maintaining by management & board a co
Slide 8: Generating Substantial Free Cash Flow
Generating Substantial Free Cash Flow SP500 AVERAGE 2022E FCF YIELDS SP500 FREE CASH FLOW YIELDS y-axis represents # of SP500 tickers within the free cash flow yield range specified on the x-axis 250 Energy 10.8% Materials 6.7% Communication Services 6.5% 200 Financials 6.0% Health Care 5.9% 150 At
Slide 9: Returning Value to Shareholders
Returning Value to Shareholders SP500 AVERAGE CURRENT DIVIDEND SP500 CURRENT DIVIDEND YIELDS y-axis represents # of SP500 tickers within the dividend yield YIELDS range specified on the x-axis Energy 3.3% 250 Utilities 3.2% Consumer Staples 2.6% 200 Real Estate 2.6% Financials 1.9% 150 At 6.2%, KMI
Slide 10: Core Holding in Any Portfolio
Core Holding in Any Portfolio Generating significant cash flow & returning significant value to shareholders >$35 billion market capitalization One of the 10 largest energy companies in the S&P500 ~13% owned by management Highly-aligned management with significant equity interests $7.2 billion 2022
Slide 11: Our Future
OUR FUTURE 11 TransColorado Pipeline compressor station, Mancos, Colorado
Slide 12: Doing Business the Right Way Every Day
Doing Business the Right Way Every Day For our shareholders, employees, customers & neighbors vision mission values Delivering energy to improve Provide energy transportation & Integrity, accountability, safety lives & create a better world storage services in a safe, & excellence efficient & enviro
Slide 13: Positioned for the Future of Energy
Positioned for the Future of Energy Our vast network of strategically-located energy infrastructure will continue delivering energy for decades to come Moving fuels of today & the future U.S. is the world’s most responsible producer Many emerging renewable fuels can be moved on our of scale assets t
Slide 14: All Energy Sources Required to Meet Demand Outlook
All Energy Sources Required to Meet Demand Outlook Total energy demand expected to grow >20% 13% GLOBAL TOTAL ENERGY DEMAND BY FUEL Exajoules | 2020, 2030, 2040 28% 2020-2040 growth in Exajoules 17% 200 2040 % mix (10) 10 30 50 70 Asia Pacific 19% 24% 150 Africa Asia Pacific Middle East accounts for
Slide 15: 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 16: 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 bcfd Production Demand Production Demand 25 125 103 103 100 20 20 20 19 100 92 Implied exports 17 81 Implied exports 79 79 78 14 15 13 13 75 12 1
Slide 17: Reliable Grids Increase Demand for Natural Gas Deliverability Services
Reliable Grids Increase Demand for Natural Gas Deliverability Services — Renewable intermittency causes large demand swings for natural CASE STUDY: CALIFORNIA POWER GENERATION BY SOURCE gas Gigawatts — But pipeline volumes have to be carefully managed in order to Other Wind Solar Implied Imports Nat
Slide 18: Meeting Extreme Weather Demand Requires Natural Gas Deliverability
Meeting Extreme Weather Demand Requires Natural Gas Deliverability Opportunities for short notice, high deliverability services & gas storage Extreme Weather Events, Winter Storm Uri Texas – Hourly Generation During Uri — February 14 was one of the highest demand days over the past decade; likely Ge
Slide 19: Scenarios Solving for an End-Result Do Not Contemplate the Constraints of Reality
Scenarios Solving for an End-Result Do Not Contemplate the Constraints of Reality more spend to achieve the same growth substantial mineral requirements geographically challenged mineral requirements 2021-2050 GLOBAL INVESTMENT, $ trillions MINERAL REQUIREMENTS FOR CLEAN ENERGY EXTRACTION & PROCESSI
Slide 20: Our Infrastructure is Important to Fueling the Future
Our Infrastructure is Important to Fueling the Future BENEFITS OF NATURAL GAS LOW EMISSIONS ABUNDANT & LOW COST Natural gas is the cleanest burning fossil fuel with Cost-effective generation significantly lower emissions than coal or fuel oil Uses substantial infrastructure already in-place Switchin
Slide 21: U.S. CO2 Emissions Declined Since 2007 while GDP grew ~45%
U.S. CO2 Emissions Declined Since 2007 while GDP grew ~45% Primarily due to converting coal power generation to natural gas generation U.S. ELECTRICITY GENERATION MIX U.S. CO2 EMISSIONS FROM ENERGY CONSUMPTION % of total generation billion metric tons 7 -24%, -1.4 billion metric tons 6.0 6.0 6.0 5.9
Slide 22: Replacing Coal Could Accelerate Emissions Reductions Goals
Replacing Coal Could Accelerate Emissions Reductions Goals POTENTIAL FOR LOWER GLOBAL EMISSIONS Mt CO2 2,005 Potential Net 6% of 2020 CO2 6,217 Reduction of 24% 18% of 2020 CO2 34,156 25,934 2020 CO2 2020-2050 net change between natural gas potential for additional reduction from potential global CO
Slide 23: Reliable, Long-Duration Storage is Critical in Peak Demand Periods
Reliable, Long-Duration Storage is Critical in Peak Demand Periods DAILY AVERAGE OF WEEK-OVER-WEEK DAILY POWER EQUIVALENT TWh per day CHANGES IN U.S. WORKING GAS bcfd send-out build 20 0 6 2050 U.S. SDS forecasts only ~1 TWh of daily battery capacity Reliability is critical during these weather even
Slide 24: Attractive Potential for Handling Liquid Biofuels
Attractive Potential for Handling Liquid Biofuels Can leverage existing assets with minimal capex spend to accommodate biofuels GLOBAL BIOFUELS DEMAND OUTLOOK mmbbld 2021 VOLUMES mbbld STEPS APS SDS Terminals Products U.S. 9 throughput throughput(a) production ethanol 108 177 952 6 biodiesel 7 5 105
Slide 25: ESG Strategy
ESG Strategy Provide energy 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 Build & maintain relationships with Risks & opportunities are continually ‒ Grow natura
Slide 26: 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 7.1x EBITDA multiple Expect project to reduce Scope 1 & 2 emissions by ~34,000 metric tonnes CO2e per year, or ~38% from 2019(a) — Equivalent t
Slide 27: 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 28: 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 29: 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 Refinitiv #6 Moody’s #2 SSGA top 10% of 203 Refiners & Pipelines Oil & Gas Refining, tied for #3 in of 214 Oil
Slide 30: Positioned for the Future of Energy
Positioned for the Future of Energy Our vast network of strategically-located energy infrastructure will continue delivering energy for decades to come Moving fuels of today & the future U.S. is the world’s most responsible producer Many emerging renewable fuels can be moved on our of scale assets t
Slide 31: Strategy & Business Review
STRATEGY & BUSINESS REVIEW Kinder Morgan Building, Houston, Texas
Slide 32: 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 14 Recovers to pre-pandemic levels during 2023 102 13 96 12 90 11 2022 production above 84 pre-pandemic level 10 78 9 72 8 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022
Slide 33: Volume Recovery Still Playing Out on Our Assets
Volume Recovery Still Playing Out on Our Assets PRODUCTS SEGMENT VOLUMES mbbld NATURAL GAS SEGMENT G&P VOLUMES bbtud Road fuels Jet fuel Crude / Condensate (incl. transport & G&P) 1,800 4,000 1,500 3,000 1,200 900 2,000 600 1,000 300 - - 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q
Slide 34: Strategy
Strategy Maximize the value of our assets on behalf of shareholders Stable, fee- Invest in a low Financial Disciplined Enhance based assets carbon future flexibility capital shareholder allocation value Core energy Newly formed 4.3x 2022B Conservative Maintain strong infrastructure Energy Transition
Slide 35: Executed on our Strategy in 2021
Executed on our Strategy in 2021 Demonstrated importance of assets during Uri, conducted value accretive M&A, and invested in low carbon opportunities February — Continued operations during a very difficult winter storm which demonstrated the importance of high-turn storage and resulted in March $1.
Slide 36: Highly-Contracted Cash Flows
Highly-Contracted Cash Flows Stable cash flows with ~69% take-or-pay or hedged earnings 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 ba
Slide 37: Customers Are Primarily End-Users of the Products We Handle
Customers Are Primarily End-Users of the Products We Handle Net revenues underpinned by investment grade counterparties & credit support | Ratings as of January 19, 2022 CUSTOMER TYPE CREDIT RATING End-user IG or substantial credit support Producer - IG or substantial credit support BB+ to B Produce
Slide 38: Successfully Achieving Attractive Build Multiples
Successfully Achieving Attractive Build Multiples Established track record of leveraging our footprint & project management expertise COMPETITIVE ADVANTAGES INVESTMENT MULTIPLES: PROJECTS COMPLETED 2019 – 2021 Capital invested / year 2 Project EBITDA(a) — Expansive asset base ― ability to leverage O
Slide 39: Business Mix
Business Mix Leading infrastructure provider across multiple critical energy products Note: Business mix based on 2022 budgeted Adjusted Segment EBDA. See Non-GAAP Financial Measures & Reconciliations. 39
Slide 40: Natural Gas Segment Overview
Natural Gas Segment Overview Connecting key natural gas resources with major demand centers ASSET SUMMARY Natural gas pipelines: ~71,000 miles NGL pipelines: ~1,200 miles Natural gas transported ~40% (U.S. consumption & exports) Working gas storage capacity: 700 bcf VOLUMES trillion btu per day Tran
Slide 41: Substantial Growth Projected for U.S. Natural Gas
Substantial Growth Projected for U.S. Natural Gas KEY BASINS DRIVING U.S. GROWTH 2021 to 2030 growth in bcfd 9 Additional 21 bcfd 7 expected from three areas 5 Permian Haynesville Northeast DEMAND in bcfd 15 bcfd from exports & industrial driving majority of growth 2021 31 0 22 6 31 10 100 ~95% of f
Slide 42: Transporter of Choice for LNG Facilities
Transporter of Choice for LNG Facilities due to Supply Diversity & 700 bcf of Total Working Gas Storage bcfd U.S. LNG Exports KM contracted transport capacity Potential KM contracted transport capacity 20 18 16 14 12 ~50% - KM 2021 10 8 market share 6 In active discussions 4 to transport another pot
Slide 43: Key Market: Exports to Mexico
Key Market: Exports to Mexico U.S. NATURAL GAS EXPORTS TO MEXICO bcfd U.S. Mexico Exports KM Contracted Transport Capacity 8 KM Projected Contracted Transport Capacity 7 6 5 4 3 In discussions to transport up to additional 1 bcfd 2 1 ~3.9 bcfd KM contracted, ~10 years average remaining term ~3.2 bcf
Slide 44: Well Positioned to Serve Gulf Coast Petchem & Industrial Demand
Well Positioned to Serve Gulf Coast Petchem & Industrial Demand DIRECTLY CONNECTED PETCHEM AND INDUSTRIAL FACILITIES TEXAS & LOUISIANA INDUSTRIAL DEMAND bcfd 16 14 12 10 Demand growth provides expansion capital opportunities 8 6 4 2 - 2017 2019 2021 2023 2025 2027 2029 — Strategic pipeline & storage
Slide 45: Products Segment Overview
Products Segment Overview Strategic footprint supplying a diverse mix of feedstock & finished products critical to refining & transportation sectors ASSET SUMMARY 2022B DELIVERY VOLUMES(a) mbbld Pipelines: ~9,500 miles Terminals: 65 terminals Bakken Crude Texas Crude 2022 budgeted throughput(a) ~2.3
Slide 46: Refined Products Pipes Historically A Steady Contributor
Refined Products Pipes Historically A Steady Contributor Fee-based with stable volumes and cash flow over the long-term REFINED PRODUCTS VOLUMES(a) mmbbld REFINED PRODUCTS EBDA BY REGION(b) $ millions KM Refined Product (left) Domestic Refined Products Consumption (right) West Coast Southeast $771 $
Slide 47: West Coast Renewable Fuels Projects
West Coast Renewable Fuels Projects Utilizing our vast network to lead the fuel transition, beginning in California Subsidies & state goals for emissions reductions are driving increased RD volumes — Particularly in California where stacked subsidies currently average >$4.00/gal (RIN+LCFS+BTC) Produ
Slide 48: Terminals Segment Overview
Terminals Segment Overview National terminaling network connecting our customers with domestic & international markets # of capacity ASSET SUMMARY terminals (mmbbls) Terminals segment – Bulk 28 Terminals segment – Liquids 50 80 Products segment 65 55 Total Terminals 143 135 Jones Act: 16 tankers Nat
Slide 49: Our Integrated Terminal Network on the Houston Ship Channel
Our Integrated Terminal Network on the Houston Ship Channel Refined products focused with an irreplaceable collection of assets, capabilities & market-making connectivity Our unmatched scale & flexibility: KM terminals & assets refined products terminals Colonial local refineries & processing Explor
Slide 50: Leading Exporter of U.S. Gasoline & Diesel
Leading Exporter of U.S. Gasoline & Diesel COVID recovery & prospective long-term growth in product exports U.S. GULF GASOLINE & BLENDSTOCK EXPORTS(a) KM HOUSTON SHIP CHANNEL REFINED PRODUCT thousand barrels per day 5Yr Range 2019 2020 2021 EXPORTS(b) thousand barrels per day 1,200 600 1,000 800 KM
Slide 51: Partnering with NESTE on Renewable Fuels Logistics
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 operational can e
Slide 52: CO2 Segment Overview
CO2 Segment Overview World class, fully-integrated assets | CO2 source to crude oil production & takeaway in the Permian Basin Interest in 5 crude fields with 9.2 billion barrels of Original Oil In Place Interest in 3 CO2 fields with 37 tcf of Original Gas In Place ~1,500 miles of CO2 pipelines with
Slide 53: CO2 EOR & Transport Consistently Generates Free Cash Flow
CO2 EOR & Transport Consistently Generates Free Cash Flow Low cash cost structure yields healthy margins through commodity price cycles OIL & GAS CASH OPERATING COSTS & AVG. PRICE CO2 EOR & TRANSPORT FREE CASH FLOW $ millions $ per net barrel Cash costs Avg. realized oil price FCF Capex Acquisitions
Slide 54: 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 55: $310 million Acquisition of Kinetrex Energy
$310 million Acquisition of Kinetrex Energy Platform acquisition provides multi-year head start to participate in emerging RNG market ASSETS & VALUATION U.S. RNG PRODUCTION bcfd — 2 small-scale LNG facilities - 2 MMdth capacity 2.0 — 1 operational landfill-RNG facility with ~0.4 bcf(a) Volumes are e
Slide 56: Demand Markets Provide Diversification
Demand Markets Provide Diversification Plan to mitigate exposure to RIN volatility through fixed price contracts in the voluntary market REVENUE EXAMPLE $ per mmbtu D3 RINs can also satisfy D5 & D6 obligations RIN value (a) revenues must meet or exceed $39.87 traditional hurdle rates $13 – $17 HH sp
Slide 57: Positioned to Participate Across CCUS Value Chain
Positioned to Participate Across CCUS Value Chain Emission Sources Capture Transport EOR / Sequestration — In discussions with emissions — Evaluate opportunities to — Largest CO2 pipeline operator — Substantial EOR experience sources throughout North invest, construct, and/or in North America Americ
Slide 58: Compelling Investment Opportunity
Compelling Investment Opportunity Strategically-positioned assets generating substantial cash flow with attractive investment opportunities Stable cash flows with ~69% take-or-pay or hedged earnings(a) ~6% current yield & healthy dividend coverage Top 10 dividend yield in S&P500 Dividends & capex fu
Slide 59: Panel with Business Unit Leaders
PANEL WITH BUSINESS UNIT LEADERS 59 Pipe storage yard at the KM Fairless Hills Terminal, Pennsylvania
Slide 60: 2022 Budget
2022 BUDGET 60 Altamont gathering right-of-way, Granite Park, Utah
Slide 61: 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 NET DEBT DECLARED DIVIDENDS CFFO – Capital Expenditures(a) 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
Slide 62: Generated $15bn Free Cash Flow Over Last 6 Years
Generated $15bn Free Cash Flow Over Last 6 Years $ in billions Generated CFFO of nearly $30 billion & paid CFFO FCF Capital Expenditures Dividends Paid cash dividends of $11 billion over last 6 years $6 $5 $4 $3 $2 $1 - 2016 2017 2018 2019 2020 2021 2022B Source: CFFO, Capital Expenditures, & Divide
Slide 63: 2022 Budget Summary
2022 Budget Summary $ in billions, except per share 2021 2022 Increase Key metrics 2021 excluding Uri Budget excluding Uri Net income $1.8 $0.9 $2.5 >2.5x Adjusted EBITDA $7.9 $6.9 $7.2 5% Distributable Cash Flow $5.5 $4.4 $4.7 8% (DCF) Discretionary capital(a) $2.3 $1.3 ~$890 million CFFO – capital
Slide 64: Growing Cash Flow Generation
Growing Cash Flow Generation $ billions $8.0 $7.5 Uri Benefit $1.1 $0.1 $7.2 $0.1 $7.0 $0.1 $0.1 $6.9 $0.1 $0.1 $6.5 2021A Natural Gas CO2 Segment Natural Gas Other Base Natural Gas Stagecoach/ 2022B Adjusted Contract Price Offset Storage Value Business, net, incl. Growth Kinetrex Adjusted EBITDA Ex
Slide 65: 2022 Budget Assumptions & Highlights
2022 Budget Assumptions & Highlights YoY EBDA(a) SEGMENT EXCLUDING URI KEY DEVELOPMENTS FROM 2021 — Full year contribution from Stagecoach acquisition — TX Intrastates favorable renewals & storage optimization Natural Gas +3% — Unfavorable re-contracting impacts (S. TX and others) — Increased G&P vo
Slide 66: 2022B Net Income & Distributable Cash Flow (DCF)
2022B Net Income & Distributable Cash Flow (DCF) in millions, except per share 2022 2021 Change Budget Actual $ % Net income attributable to Kinder Morgan, Inc. (GAAP) $ 2,480 $ 1,784 $ 696 39% Total Certain Items (10) 1,220 (1,230) (101%) Adjusted Earnings(a) 2,470 3,004 $ (534) (18%) DD&A and amor
Slide 67: 2022B Adjusted Segment EBDA & Adjusted EBITDA
2022B Adjusted Segment EBDA & Adjusted EBITDA $ in millions 2022 2021 Change Budget Actual $ % Natural Gas Pipelines (a) $ 4,631 $ 5,463 $ (832) (15%) Products Pipelines 1,180 1,117 63 6% Terminals 974 950 24 3% CO2(a) 704 754 (50) (7%) Adjusted Segment EBDA(b) 7,489 8,284 (795) (10%) General and ad
Slide 68: 2022B Capital Expenditures
2022B Capital Expenditures $ in millions 2022 2021 Sustaining Capital Budget Actual Change Natural Gas Pipelines $ 438 $ 474 $ (36) Products Pipelines 143 94 49 Terminals 237 245 (8) CO2 15 17 (2) Corporate / other 32 34 (2) Discretionary Capital: Capital budget Total sustaining capital expenditures
Slide 69: 2022B Cash Flow from Operations (CFFO) & Free Cash Flow (FCF)
2022B Cash Flow from Operations (CFFO) & Free Cash Flow (FCF) $ in millions 2022 2021 Change Budget Actual $ % Net income attributable to Kinder Morgan, Inc. (GAAP) 2,480 $ 1,784 $ 696 39% Net income attributable to noncontrolling interests 68 66 2 3% DD&A and amortization of excess cost of equity i
Slide 70: 2022B Sources & Uses
2022B Sources & Uses(a) $ in millions 2022 SOURCES & USES $ in billions Sources Budget $7.5 CFFO (GAAP) $ 5,285 Cash balance as of 12/31/2021 1,140 $7.0 Cash on hand Revolver Borrowing/Debt Issuances 866 $6.5 Distributions from equity investments in CFFI(b) 130 $6.0 Debt maturities Total sources $ 7
Slide 71: Leverage & Liquidity
Leverage & Liquidity(a) $ in millions 2022 KMI LONG-TERM DEBT MATURITIES(d) Budget 6,000 Debt maturities Weighted average interest rate 6% Net Debt (Year End) $ 30,858 5.5% Adjusted EBITDA $ 7,184 5,000 5.0% 5% Net Debt(b) to Adjusted EBITDA 4.3x 5.0% 4.4% 4.2% 4.3% 4,000 4.0% 4% 3.8% 3.9% KMI revol
Slide 72: 2022B Quarterly Profile
2022B Quarterly Profile $ in millions, except per share Adjusted Segment EBDA Q1 Q2 Q3 Q4 Total 2022 Budget 26% 24% 24% 26% $ 7,489 2021 Actual 35% 21% 21% 23% $ 8,284 Adjusted EBITDA 2022 Budget 26% 24% 24% 26% $ 7,184 2021 Actual 35% 21% 21% 23% $ 7,946 Distributable Cash Flow (DCF) 2022 Budget 29
Slide 73: 2022B Cash Tax Calculation Detail
2022B Cash Tax Calculation Detail $ in millions 2022 Budget Adjusted Segment EBDA $ 7,489 Net income attributable to NCI (68) JV earnings from C corps (330) JV distributions from C corps (net of 65% dividend received deduction) 100 JV book DD&A (pass-through entities) 138 General and administrative
Slide 74: 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 75: Financial Highlights
Financial Highlights Our financial strategy at work 2021 2022 BUDGET Met budget, even excluding one-time benefit from Uri Declared dividends +3% Expect declared dividends +3% Attractive yield of 6% today Reduced net debt by >$825 million 2022 budgeted leverage of 4.3x net debt / Adj. EBITDA(a) vs. 2
Slide 76: Appendix
APPENDIX 76 Pipe storage yard at the KM Fairless Hills Terminal, Pennsylvania
Slide 77: Natural Gas Segment Presentation
Natural Gas Segment Presentation 77
Slide 78: Natural Gas Segment Overview
Natural Gas Segment Overview Connecting key natural gas resources with major demand centers ASSET SUMMARY Natural gas pipelines: ~71,000 miles NGL pipelines: ~1,200 miles Natural gas transported ~40% (U.S. consumption & exports) Working gas storage capacity: 700 bcf VOLUMES trillion btu per day Tran
Slide 79: Gathering & Processing Assets Across Key Basins
Gathering & Processing Assets Across Key Basins Our primary areas are expected to be relatively resilient G&P BUSINESS AS % OF 2022B KMI SHORT-TERM PRODUCTION OUTLOOK 2019 – 2023 ADJUSTED SEGMENT EBDA dry gas, bcfd crude, mmbbld 2% Eagle Ford 15 2023 +36% over Copano South Texas & EagleHawk JV asset
Slide 80: Long-Term Growth Drivers
Long-Term Growth Drivers Strategic pipeline & storage footprint positioned to serve major sources of demand growth U.S. NATURAL GAS INDUSTRIAL DEMAND Exports — Currently contracted to transport >6 bcfd to LNG & ~4 bcfd to Mexico; well positioned to & EXPORTS DRIVING GROWTH bcfd serve additional grow
Slide 81: Transporter of Choice for LNG Facilities
Transporter of Choice for LNG Facilities due to Supply Diversity & 700 bcf of Total Working Gas Storage bcfd U.S. LNG Exports KM contracted transport capacity Potential KM contracted transport capacity 20 18 16 14 12 ~50% - KM 2021 10 8 market share 6 In active discussions 4 to transport another pot
Slide 82: Key Market: Exports to Mexico
Key Market: Exports to Mexico U.S. NATURAL GAS EXPORTS TO MEXICO bcfd U.S. Mexico Exports KM Contracted Transport Capacity 8 KM Projected Contracted Transport Capacity 7 6 5 4 3 In discussions to transport up to additional 1 bcfd 2 1 ~3.9 bcfd KM contracted, ~10 years average remaining term ~3.2 bcf
Slide 83: Well Positioned to Serve Gulf Coast Petchem & Industrial Demand
Well Positioned to Serve Gulf Coast Petchem & Industrial Demand DIRECTLY CONNECTED PETCHEM AND INDUSTRIAL FACILITIES TEXAS & LOUISIANA INDUSTRIAL DEMAND bcfd 16 14 12 10 Demand growth provides expansion capital opportunities 8 6 4 2 - 2017 2019 2021 2023 2025 2027 2029 — Strategic pipeline & storage
Slide 84: Meeting Extreme Weather Demand Requires Natural Gas Deliverability
Meeting Extreme Weather Demand Requires Natural Gas Deliverability Opportunities for short notice, high deliverability services & gas storage Extreme Weather Events, Winter Storm Uri Texas – Hourly Generation During Uri — February 14 was one of the highest demand days over the past decade; likely Ge
Slide 85: Serving Regions with Meaningful Renewable Power Today
Serving Regions with Meaningful Renewable Power Today Renewables require non-ratable flexibility & associated non-ratable services Our service offerings reflect dedicated use of infrastructure required to meet market demand (ratable & non-ratable services) Coupled with ratable service, underutilized
Slide 86: Valuable Texas Intrastate Natural Gas Systems
Valuable Texas Intrastate Natural Gas Systems Winter Storm Uri emphasized the importance of our Texas Natural Gas network — Texas Intrastates system represents ~10% of KM Adjusted Segment EBDA(a) – Highly contracted with >80% take-or-pay(a) – Average transportation contract tenor ~6 years(b) — 7,000
Slide 87: New RSG Pooling Service on TGP
New RSG Pooling Service on TGP RSG may trade at a premium due to low emissions production certification — New RSG pooling service encourages certified producers to move their gas on TGP — Working with ICE to establish trading hubs at 5 pooling points — Only gas meeting certain criteria can be aggreg
Slide 88: Valuable Northeast Transportation and Storage Assets
Valuable Northeast Transportation and Storage Assets NORTHEAST PRODUCTION Stagecoach Pipelines +5 bcfd, or 14% Stagecoach Gas Storage bcfd TGP TGP Gas Storage 39 34 2021 2030 TGP peak day deliveries to Northeast markets Stagecoach peak day deliveries to Northeast Stable, fee-based infrastructure of
Slide 89: Leading the Way Out of the Permian
Leading the Way Out of the Permian Excellent execution in face of global pandemic & substantial opposition Gulf Coast Express (GCX) Permian Highway Pipeline (PHP) Leveraged existing footprint into new takeaway capacity Mainline: 450 miles of 42” pipeline 430 miles of 42” pipeline — Reaches across Te
Slide 90: Highly Utilized Haynesville Capacity
Highly Utilized Haynesville Capacity As Haynesville production grows, up to ~$45 million of Adjusted EBITDA growth beyond ‘22 HAYNESVILLE PRODUCTION bcfd Significant Operating Footprint +7 bcfd, or 70% KinderHawk Gathering Up to 1 bcfd of growth potential; 18 Expansions underway to increase treating
Slide 91: Evaluating Potential for Hydrogen Transportation on Existing Pipes
Evaluating Potential for Hydrogen Transportation on Existing Pipes 3-5 year effort to position existing assets for a developing hydrogen market Cut out pipe samples from R&D underway to understand We’re testing in some limited Working with early adopters; certain pipelines to test for integrity/oper
Slide 92: Manageable Natural Gas Re-Contracting Exposure
Manageable Natural Gas Re-Contracting Exposure Analysis of existing contracts that renew during next two years KMI ADJUSTED EBITDA $ billions Expiring contracts are assessed for volumetric & Adjusted EBITDA Natural Gas re-contracting rate risk based on November 2021 market $8 assumptions (time of bu
Slide 93: Natural Gas: Interstate Pipelines
Natural Gas: Interstate Pipelines Key statistics Rate Capacity Storage Avg. Remaining Effective Date of Moratorium Ownership Miles (bcfd) (bcf) Contract Term (yrs) Next Rate Case Through Date 100% KMI-owned: TGP Tennessee Gas Pipeline 100% 11,755 12.2 76 6.5 / 2.8(a) NA 10/31/2022 SC Stagecoach 100%
Slide 94: Natural Gas: Intrastate, G&P and NGL Assets
Natural Gas: Intrastate, G&P and NGL Assets Key statistics Capacity Storage Avg. Remaining Treating Processing Ownership Miles (bcfd) (bcf) Contract Term (yrs) (GPM) (bcfd) 100% KMI-owned natural gas pipelines: KMTP / Tejas 100% 5,925 8.3 136 5.1 1,680 0.5 North Texas Pipeline 100% 80 0.3 – 11.6 – –
Slide 95: Projects Placed Into Service During 2021
Projects Placed Into Service During 2021 New natural gas projects expected to generate $94 million of annual Adjusted EBITDA In-service date: 2021 Capacity KM share ($mm) Asset Project Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec (mDthd) Capital EBITDA KMLP Acadiana Cheniere Sabine Pass Train 6 9
Slide 96: Natural Gas Project Backlog
Natural Gas Project Backlog KM share ($mm) Capacity Asset Project Capital EBITDA (mDthd) In-service Date Project Status East 300 Upgrade $246 115 11/2023 FERC issued FEIS TGP South Texas Expansion $25 413 11/2023 Preparing prior notice filing and state air permit Seminole Electric Project $48 136 4/
Slide 97: Products Segment Presentation
Products Segment Presentation 97
Slide 98: Products Segment Overview
Products Segment Overview Strategic footprint supplying a diverse mix of feedstock & finished products critical to refining & transportation sectors ASSET SUMMARY 2022B DELIVERY VOLUMES(a) mbbld Pipelines: ~9,500 miles Terminals: 65 terminals Bakken Crude Texas Crude 2022 budgeted throughput(a) ~2.3
Slide 99: Segment Volumes Recovering to Pre-Pandemic Levels
Segment Volumes Recovering to Pre-Pandemic Levels GASOLINE(a) mbbld DIESEL(a) mbbld JET FUEL(a) mbbld 2019 2020 2021 2022B 2019 2020 2021 2022B 2019 2020 2021 2022B 1,200 500 400 1,000 400 300 800 300 600 200 200 400 100 100 200 - - - 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2022 jet volumes average 2022
Slide 100: Refined Products Pipes a Steady Contributor
Refined Products Pipes a Steady Contributor Fee-based with stable volumes and cash flow over the long-term REFINED PRODUCTS VOLUMES(a) mmbbld REFINED PRODUCTS EBDA BY REGION(b) $ millions KM Refined Product (left) Domestic Refined Products Consumption (right) West Coast Southeast $771 $801 1.8 18 $8
Slide 101: West Coast Renewable Fuels Projects
West Coast Renewable Fuels Projects Utilizing our vast network to lead the fuel transition, beginning in California Subsidies & state goals for emissions reductions are driving increased RD volumes — Particularly in California where stacked subsidies currently average >$4.00/gal (RIN+LCFS+BTC) Produ
Slide 102: KM Crude Volumes Recovering with Production
KM Crude Volumes Recovering with Production Maximizing throughput in difficult markets: marketing affiliates on KMCC & Double H utilize available capacity on spot basis THROUGHPUT VOLUMES BY CRUDE PIPELINE & CRUDE OIL PRODUCTION & RIG COUNT(a) BAKKEN WELL CONNECTS mmbbld rigs mbbld Eagle Ford Bakken
Slide 103: Texas & Bakken Crude Oil Assets
Texas & Bakken Crude Oil Assets Strategically positioned in Eagle Ford & Bakken Texas crude assets offer connectivity to the Corpus Christi & Houston Hiland is one of the Bakken’s premier gathering systems Ship Channel markets — Backed by dedications from key producers in the basin — Flexibility to
Slide 104: 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 105: Terminals Segment Presentation
Terminals Segment Presentation 105
Slide 106: Terminals Segment Overview
Terminals Segment Overview National terminaling network connecting our customers with domestic & international markets # of capacity ASSET SUMMARY terminals (mmbbls) Terminals segment – Bulk 28 Terminals segment – Liquids 50 80 Products segment 65 55 Total Terminals 143 135 Jones Act: 16 tankers Nat
Slide 107: Terminals Segment Revenue by Product
Terminals Segment Revenue by Product Liquids-Focused Terminals with a Diverse Product Mix 2022B REVENUE: $1.7 BILLION(a) LIQUIDS — Market-making industry hubs in key refining centers critical to our customers — Complementary & synergistic with renewables & chemicals — Jones Act tankers to meet domes
Slide 108: Terminals Segment Services
Terminals Segment Services Offering unmatched market access with modal flexibility alongside value-added terminaling services 2022B EBDA: $1.0 BILLION(a) terminal — Concentrated in key industry supply & demand market hubs services — Houston Ship Channel assets serving the world’s most-competitive re
Slide 109: Our Liquid Hubs
Our Liquid Hubs Strategically located to serve key supply & demand markets Houston Ship Channel New York Harbor Chicago — Serves the world’s most competitive supply of refined products & petrochemicals Philadelphia 9 terminals providing ~43 million barrels of capacity(a) Baltimore — Dayton Indianapo
Slide 110: Our Integrated Terminal Network on the Houston Ship Channel
Our Integrated Terminal Network on the Houston Ship Channel Refined products focused with an irreplaceable collection of assets, capabilities & market-making connectivity Our unmatched scale & flexibility: KM terminals & assets refined products terminals Colonial local refineries & processing Explor
Slide 111: Leading Exporter of U.S. Gasoline & Diesel
Leading Exporter of U.S. Gasoline & Diesel COVID recovery & prospective long-term growth in product exports U.S. GULF GASOLINE & BLENDSTOCK EXPORTS(a) KM HOUSTON SHIP CHANNEL REFINED PRODUCT thousand barrels per day 5Yr Range 2019 2020 2021 EXPORTS(b) thousand barrels per day 1,200 600 1,000 800 KM
Slide 112: Tankers Meeting Domestic Maritime Demand
Tankers Meeting Domestic Maritime Demand Most modern & efficient Jones Act tanker fleet American Petroleum Tankers Firm Charter Renewal Options – 16 modern, fuel-efficient tankers 0 2022 12 2023 24 2024 36 – Largest Jones Act tanker fleet Lone Star State – Most modern fleet with an average age of 7.
Slide 113: Our Industry Leading Ethanol Capabilities
Our Industry Leading Ethanol Capabilities Handling nearly a third of domestic ethanol & positioned for growth U.S. FUEL ETHANOL PRODUCTION million barrels per day KINDER MORGAN RESPONSE 1.2 Efficient, full-service, logistics solutions 1.0 RBOB & CBOB 0.8 E10 Ethanol E15 E85 0.6 Kinder Morgan Kinder
Slide 114: Partnering with NESTE on Renewable Fuels Logistics
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 operational can e
Slide 115: Terminals Throughput & Tonnage Statistics
Terminals Throughput & Tonnage Statistics 2019 to 2022B comparison Variance 2019 Variance Throughput vs. 2021 Throughput vs. 2019 MMBbls 2021 2022B MMBbls % 2019 MMBbls % Gasoline 461.6 504.9 43.3 9% 510.6 (5.7) -1% Distillate 118.9 128.6 9.8 8% 142.6 (14.0) -10% Petroleum Feedstocks 43.1 48.1 5.0 1
Slide 116: CO2 Segment Presentation
CO2 Segment Presentation 116
Slide 117: CO2 Segment Overview
CO2 Segment Overview World class, fully-integrated assets | CO2 source to crude oil production & takeaway in the Permian Basin Interest in 5 crude fields with 9.2 billion barrels of Original Oil In Place Interest in 3 CO2 fields with 37 tcf of Original Gas In Place ~1,500 miles of CO2 pipelines with
Slide 118: Enhanced Oil Recovery Process
Enhanced Oil Recovery Process Specializing in the gas injection method of enhanced oil recovery Three phases of oil & gas production PRIMARY SECONDARY TERTIARY RECOVERY RECOVERY (ENHANCED) RECOVERY Reinject CO2 10% 20-40% 30-60% OOIP recovered OOIP recovered OOIP recovered Natural pressure Gas injec
Slide 119: Key Factors Driving the Success of Our CO2 Segment
Key Factors Driving the Success of Our CO2 Segment Maximizing returns through financial discipline & innovation • Vertically integrated & • Industry-leading experience • High-return asset base Profit-Focused Advantaged Assets Highly-Skilled Team Permian focused in highly specialized business will fa
Slide 120: CO2 Segment Budget & Sensitivities
CO2 Segment Budget & Sensitivities Corrected(a) CO2 & Transport SACROC Yates Katz, Goldsmith, Tall Cotton Potential Impact to Adjusted EBITDA 2022B assumptions Change & DCF (full year) $372 Crude oil production +/- 5% in gross volumes $36 million 41 mbbld gross (28 mbbld net) $205 CO2 sales +/- 50 m
Slide 121: CO2 Segment Budgeted Volumes & Highlights
CO2 Segment Budgeted Volumes & Highlights Corrected(a) 2022B NET OIL & NGL PRODUCTION 2022B NET CO2 SALES(a) mbbld mmcfd SACROC 66 SACROC oil 18.5 SACROC NGL 8.5 Yates 6.7 37 mbbld 330 mmcfd Yates 22 Katz 1.2 KM Other 5 Tall Cotton 0.9 Goldsmith 0.7 Third parties 237 OIL & GAS CO2 & TRANSPORT — Majo
Slide 122: CO2 Segment 2022 Oil & Gas Major Projects
CO2 Segment 2022 Oil & Gas Major Projects Major projects expected to generate attractive returns Asset Project 2022B capex Commentary ATIRR% at flat WTI price scenarios Forward Curve $72.50 $60 — Implement Town Center project 60% — 49% Implement Hawaii Expansion 2 project 44% Expansion SACROC Projec
Slide 123: Extending Productive Life of Mature Fields
Extending Productive Life of Mature Fields Innovation & team work continue to push SACROC decline curve flatter Significant amounts of recoverable oil in place SACROC NET OIL PRODUCTION FORECASTS — SACROC is estimated at 2.8 billion barrels of bopd Actual 2010B 2012B 2014B 2018B 2022B original oil i
Slide 124: EOR & CO2 Transport Long-Term Growth Outlook
EOR & CO2 Transport Long-Term Growth Outlook Projected EBDA, net production & development plan EBDA(a) NET PRODUCTION 10 YEAR DEVELOPMENT PLAN $ millions incl. NGL & residue gas (mboed) 2022 – 2031 $800 70 CO2 & $700 Transport $1 60 Yates $186 $600 50 KM Share Capex $500 $ millions 40 SACROC $400 $4
Slide 125: CO2 EOR & Transport Consistently Generates Free Cash Flow
CO2 EOR & Transport Consistently Generates Free Cash Flow Low cash cost structure yields healthy margins through commodity price cycles OIL & GAS CASH OPERATING COSTS & AVG. PRICE CO2 EOR & TRANSPORT FREE CASH FLOW $ millions $ per net barrel Cash costs Avg. realized oil price FCF Capex Acquisitions
Slide 126: Predictable Volumes & Hedged Commodity Price
Predictable Volumes & Hedged Commodity Price Mitigating uncertainties where possible | EOR oil & gas production represents ~7% of KMI business mix NET OIL PRODUCTION: ACTUALS VS. BUDGET mbbld HEDGED VOLUMES as of 1/6/2022 Actual Budget 50 2022 2023 2024 2025 Crude oil - West Texas Intermediate $/bbl
Slide 127: ETV Group Segment Presentation
ETV Group Segment Presentation 127
Slide 128: 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 129: RNG Provides an Immediate Low-Carbon Solution
RNG Provides an Immediate Low-Carbon Solution Proven & cost-effective means of decarbonization Benefits of RNG AVERAGE CARBON INTENSITY gCO2e/MJ — Leverages existing natural gas infrastructure RNG is a lower — Utilizes reliable, low-cost feedstock 100 carbon alternative — — Provides dispatchable and
Slide 130: $310 million Acquisition of Kinetrex Energy
$310 million Acquisition of Kinetrex Energy Platform acquisition provides multi-year head start to participate in emerging RNG market ASSETS & VALUATION U.S. RNG PRODUCTION bcfd — 2 small-scale LNG facilities - 2 MMdth capacity 2.0 — 1 operational landfill-RNG facility with ~0.4 bcf(a) Volumes are e
Slide 131: Kinetrex Unique Vertically Integrated Business Delivers Added Value
Kinetrex Unique Vertically Integrated Business Delivers Added Value RNG Value Chain Transportation Landfill Owner Kinetrex / Kinder Morgan Customer Transportation HBTU Plant Transportation HBTU Physical Customer Transportation Landfill Investment & Customer RINs Sale Gas Sale Environmental Customer
Slide 132: Demand Markets Provide Diversification
Demand Markets Provide Diversification Plan to mitigate exposure to RIN volatility through fixed price contracts in the voluntary market REVENUE EXAMPLE $ per mmbtu D3 RINs can also satisfy D5 & D6 obligations RIN value (a) revenues must meet or exceed $39.87 traditional hurdle rates $13 – $17 HH sp
Slide 133: Attractive Potential for Producing Renewable Fuels
Attractive Potential for Producing Renewable Fuels GLOBAL AVERAGE ANNUAL SPEND ON BIOFUELS & BIOGASES 2021 RIN VALUES $ per gallon $ billions 2016-2020 2021-2030 2031-2040 2041-2050 Cellulosic (D3) RD (D4) Biodiesel (D4) Ethanol (D6) $4 $106 Significant investment $95 $91 opportunity $3 $82 $2 $58 $
Slide 134: 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 135: 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 136: Positioned to Participate Across CCUS Value Chain
Positioned to Participate Across CCUS Value Chain Emission Sources Capture Transport EOR / Sequestration — In discussions with emissions — Evaluate opportunities to — Largest CO2 pipeline operator — Substantial EOR experience sources throughout North invest, construct, and/or in North America Americ
Slide 137: 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 138: Opportunities to Participate in Renewable Energy Development
Opportunities to Participate in Renewable Energy Development U.S. RENEWABLE ELECTRICITY CAPACITY gigawatts Solar PV Wind Hydro Bioenergy Opportunity to lower our energy costs 1 600 ‒ Ability to execute renewable PPAs at or below grid cost in many locations 1 200 ‒ Tax credits and Renewable Energy Cr
Slide 139: Corporate Items
CORPORATE ITEMS Tall Cotton compressor station, Seminole, Texas
Slide 140: Energy Toll Road
Energy Toll Road Cash flow security with ~88% from take-or-pay & other fee-based contracts Natural Gas Products Terminals CO2 2022B EBDA %(a) 62% 16% 13% 9% Refined Liquids Jones Act CO2 & Interstate / LNG Intrastate G&P products Crude terminals tankers Bulk terminals EOR Oil & Gas Transport 3% & 2%
Slide 141: $1.4 Billion Project Backlog as of 12/31/2021
$1.4 Billion Project Backlog as of 12/31/2021 Expect 51% of backlog capital in service in 2022 and 43% in 2023 DEMAND SUPPLY CAPITAL PIPELINE PULL PUSH $ million CAPACITY Supply for U.S. power & LDC demand (TGP, FGT, SNG) $ 349 1.3 bcfd Low-carbon Gathering & processing (primarily KinderHawk, Alta
Slide 142: Self-Funding Capex & Dividends Since 2016
Self-Funding Capex & Dividends Since 2016 Opportunistic asset monetization enabled meaningful debt reduction $ millions CFFO Asset sales, Borrowing, CapEx Dividends Contrib. to Dist. of KML Debt Buybacks Acquisitions, Other(a) Cash from Cash to net net JVs, net proceeds repayment net BS BS $29bn tot
Slide 143: Joint Venture Treatment in Key Metrics
Joint Venture Treatment in Key Metrics KM does not control nor consolidate KM controls & fully consolidates KM portion referred to as equity investments in third party portion referred to as noncontrolling interests in financial statements financial statements SNG (50%), NGPL (37.5%), GCX (34%) Exam
Slide 144: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations Defined Terms Reconciliations for the historical periods 144
Slide 145: 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 146: 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 147: 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 148: 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 149: Net Income & Adjusted EBITDA
Net Income & Adjusted EBITDA $ in millions 2022 2021 Change Budget Actual $ % Net income attributable to Kinder Morgan, Inc. (GAAP) $ 2,480 $ 1,784 $ 696 39% Total Certain Items (10) 1,220 (1,230) (101%) DD&A and amortization of excess cost of equity investments 2,185 2,213 (28) (1%) Income tax expe
Slide 150: 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 151: 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
Slide 152: Computation of the Refined Products Contributions to Products Pipelines Adjusted Segment EBDA
Computation of the Refined Products Contributions to the Products Pipelines Adjusted Segment EBDA $ in millions Computation of the Refined Products Contributions to the Products Pipelines Adjusted Segment EBDA 2014 2015 2016 2017 2018 2019 2020 2021 Products Pipelines Segment EBDA (GAAP) $ 856 $ 1,1