Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Investor Day (January 2021)
155 slides from Kinder Morgan's investor day presentation, Jan 27, 2021
Slide 1: 2021 Investor Day
2021 INVESTOR DAY January 27, 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 are encouraged to con
Slide 3: Agenda & presenters
Kinder Morgan 2021 Investor Day Agenda & presenters TIME DISCUSSION PRESENTER 8:00 – 8:20 Our Vision Rich Kinder Executive Chairman 8:20 – 9:00 Our Future Steve Kean CEO 9:00 – 9:40 Strategy & Business Review Kim Dang President 9:40 – 9:50 BREAK 9:50 – 10:35 Panel with COO & Business Unit Presidents
Slide 4: Our Vision
OUR VISION
Slide 5: Kinder Morgan Overview
Kinder Morgan Overview LEADER IN U.S. ENERGY INFRASTRUCTURE Energy infrastructure, especially natural gas pipelines & storage, has a decades-long time horizon WHERE GOVERNANCE MATTERS Managed for shareholders by shareholders Delivering energy to improve lives & create a better world 5
Slide 6: Managed for shareholders by shareholders
Managed for shareholders by shareholders Highly-aligned leadership with a long-term focus & disciplined stewardship of capital 13% ownership equity-based comp discipline by management & board a core part of executive compensation low cost operator while maintaining safe & compliant operations 68% of
Slide 7: Quality of Life Differences Persist Around the World
Quality of Life Differences Persist Around the World Even by 2030, IEA estimates 660 million people remain without electricity & 2.4 billion rely on traditional biomass for cooking $70,000 Population size U.S. $60,000 wealth & energy demand GDP PER CAPITA ($2019, PPP) are highly correlated $50,000 $
Slide 8: Asia & Africa Contribute Over 90% of Energy Demand Growth
Asia & Africa Contribute Over 90% of Energy Demand Growth Demand expected to be relatively stable in the rest of world as energy usage is central to everyday life GLOBAL PRIMARY ENERGY DEMAND in billion tons oil equivalent GROWTH BY SECTOR 2019 to 2040 12 12% other 48% power +34% agricultural, aspha
Slide 9: All Available Sources Required to Meet Demand Outlook
All Available Sources Required to Meet Demand Outlook Even as the energy mix gradually shifts, hydrocarbons projected to remain essential to meeting demand GLOBAL PRIMARY ENERGY DEMAND BY FUEL billions tons oil equivalent (btoe) | 2019, 2030, 2040 total demand & % mix 5 Overall energy demand 3% 5% e
Slide 10: Natural Gas Demand Enables Industrial Development
Natural Gas Demand Enables Industrial Development Global natural gas demand growth by sector from 2019 to 2030 (bcfd) 40% power 45 Industrial demand for natural gas is most important growth driver over next 10 years 40 2019 demand mix 35 iron steel 60% non-power 30 cement chemicals 25 pulp paper 20
Slide 11: Growth in Global Oil Demand Expected through 2040
Growth in Global Oil Demand Expected through 2040 Efficiency efforts & EVs not enough to offset global increases in mobility & petrochemical demand GLOBAL OIL DEMAND million barrels per day 120 Total oil demand Over the next decade: +1.8 mmbbld from trucks 100 medium- & heavy-duty trucks play an inc
Slide 12: U.S. Helps Meet Increasing Global Demand
U.S. Helps Meet Increasing Global Demand Reliable trade partner with competitive & more responsibly produced supply versus many global alternatives U.S. OIL & LIQUIDS in million barrels per day U.S. NATURAL GAS in billion cubic feet per day Supply Demand Supply Demand 25 125 20 100 15 75 16 bcfd of
Slide 13: KMI: a Core Holding in Any Portfolio
KMI: a 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% current
Slide 14: Our Future
OUR FUTURE 14
Slide 15: 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 16: Our Business is Resilient throughout an Energy Transition
Our Business is Resilient throughout an Energy Transition what we do today… is valuable & will be needed for a long time helps meet environmental goals “energy transitions take decades” infrastructure supporting the - Vaclav Smil, Distinguished Professor Emeritus displacement of higher emissions ene
Slide 17: 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 18: Business Mix
Business Mix Leading infrastructure provider across multiple critical energy products Note: Business mix based on 2021 budgeted Adjusted Segment EBDA. See Non-GAAP Financial Measures & Reconciliations. 18
Slide 19: Substantial Growth Projected for U.S. Natural Gas
Substantial Growth Projected for U.S. Natural Gas KEY BASINS DRIVING U.S. GROWTH 2020 to 2030 growth in bcfd Additional 24 bcfd expected from three areas 9 9 6 Haynesville Permian Northeast DEMAND in bcfd Exports & industrial driving majority of growth 2020 31 0 22 5 31 6 96 >80% of forecast demand
Slide 20: U.S. is a Responsible Producer of Critical Energy Products
U.S. is a Responsible Producer of Critical Energy Products One of the lowest emissions intensity producers in the world & at unmatched scale ~7x higher in Iraq average upstream emission intensity of top 10 global producers (relative to the U.S., shown as 1) (exceeds bounds mtoe of chart) 3 1,500 Of
Slide 21: Growing U.S. Industrial Demand for Natural Gas
Growing U.S. Industrial Demand for Natural Gas Primarily used for process heat U.S. NATURAL GAS INDUSTRIAL DEMAND BY SECTOR in bcfd Bulk chemicals sector drives U.S. industrial demand 2019 2050 16 for natural gas Use for heat & power to nearly double by 2050 14 Also used as feedstock for ammonia (pr
Slide 22: Our Infrastructure is Important to Fueling the Future
Our Infrastructure is Important to Fueling the Future Leveraging our long-term investment in the substantial assets & expertise required to responsibly deliver energy BENEFITS OF NATURAL GAS LOW EMISSIONS ABUNDANT & LOW COST Natural gas is the cleanest burning fossil fuel with Cost-effective generat
Slide 23: U.S. CO2 Emissions Declined Since 2007 while GDP grew ~50%
U.S. CO2 Emissions Declined Since 2007 while GDP grew ~50% Primarily due to converting coal power generation to natural gas generation U.S. ELECTRICITY GENERATION MIX U.S. CO2 EMISSIONS % of total generation billion metric tons U.S. emissions declined ~14% or ~860 million metric tons 6.0 6.0 6.0 5.9
Slide 24: Replacing Coal Power Could Accelerate Emissions Reductions Goals
Replacing Coal Power Could Accelerate Emissions Reductions Goals Power sector contributes ~40% of energy-related CO2 emissions globally POWER GENERATION MIX & POPULATION IN 2040 % based on terawatt-hours Coal Natural gas Renewables Other Natural gas & lower resulting in 6% is more carbon 60% lower 1
Slide 25: Natural Gas Steps In when Renewables Drop Out
Natural Gas Steps In when Renewables Drop Out Renewable generation can be inadequate at inopportune times – during highest demand points in day or even full week SOLID LINES: AVERAGE DAY DURING CA HEAT WAVE August 13-16, 2020 AVERAGE CALIFORNIA DAY during August 1-12, 2020 DASHED LINES: AVERAGE DAY
Slide 26: Renewable Growth Requires Operational Flexibility
Renewable Growth Requires Operational Flexibility Proper coordination between grid & pipeline operators required to make sure power demand is met baseload generation solar generation load following generation — delivered consistently & uniformly throughout the day — because the sun is not always shi
Slide 27: Enhanced Natural Gas Deliverability Optimizes Flexible Grids
Enhanced Natural Gas Deliverability Optimizes Flexible Grids With proper coordination, gas-fired generation can be dispatched optimally to meet multiple important objectives Key components to supporting an electric grid with increasing levels of wind & solar: HOURLY & SUFFICIENT ADEQUATE NO NOTICE &
Slide 28: Natural Gas Infrastructure Offers A Ready-Made Storage Solution
Natural Gas Infrastructure Offers A Ready-Made Storage Solution Underground storage functions as a large capacity, highly effective battery today PROVIDING A BETTER BATTERY: UNDERGROUND STORAGE terawatt hours of power Incredibly large capacity 500 (enough for days, weeks & months) Reliably dispatcha
Slide 29: Infrastructure Planning Considerations
Infrastructure Planning Considerations Multi-faceted analysis needed to balance cost, readiness & environmental impact GLOBAL ANNUAL POWER GRID INVESTMENT Studies indicate that electricity supply Increasing from 60% to 80% & 100% cost is manageable up to ~50-60% results in a 7x & 24x cost increase d
Slide 30: Well-Positioned to Move Potential Fuels of the Future
Well-Positioned to Move Potential Fuels of the Future RNG & hydrogen can utilize much of the existing natural gas infrastructure network RNG is a pipeline-quality gas Hydrogen could be shipped Hydrogen is energy dense & Pipelines can transport that is interchangeable with on natural gas pipelines in
Slide 31: Opportunity for Natural Gas Infrastructure
Opportunity for Natural Gas Infrastructure Renewable alternatives are small in scale today, but could grow to meet nearly 20% of current U.S. demand as costs decline U.S. SUPPLY COST ESTIMATES bcfd, 2020 & 2050 potential $ per Dth | 2020, 2030, & 2050 $33.44 120 $29.00 100 $25.50 80 $22.00 $21.55 60
Slide 32: Responsibly Sourced Natural Gas
Responsibly Sourced Natural Gas Conventional natural gas produced by companies whose operations have been independently verified as meeting certain ESG standards Standards typically focus on management practices for METHANE WATER COMMUNITY EMISSIONS USAGE RELATIONS 10 ONE Future members have committ
Slide 33: Carbon Capture Utilization & Storage (CCUS)
Carbon Capture Utilization & Storage (CCUS) Positioned to leverage our existing expertise & capabilities to provide CCUS services in the future Our experience & current operations cover the CCUS value chain CURRENT ESTIMATED U.S. CARBON CAPTURE COST $/tonne $300 — Design, manufacture, install & oper
Slide 34: Attractive Potential for Liquid Biofuels
Attractive Potential for Liquid Biofuels Policy support & efficient infrastructure important to increasing adoption of ethanol, biodiesel & other low-carbon fuels GLOBAL BIOFUELS DEMAND OUTLOOK million barrels per day Stated policies scenario projects: ~75% or 1.5 mmbbld increase by 2030 6 ~150% or
Slide 35: Substantial Existing Capabilities at Our Terminals & Products Assets
Substantial Existing Capabilities at Our Terminals & Products Assets Includes substantial blending, pipeline, terminaling & export capabilities for ethanol & other biofuels Ethanol Biodiesel Renewable Diesel Our existing assets Fuel-grade ethanol breakout (e.g., Biodiesel services include Services i
Slide 36: Our Multi-Faceted ESG Approach
Our Multi-Faceted ESG Approach Recognized as an industry leader & for ongoing improvements INVEST integrity management & maintenance programs Sustainalytics ESG risk rating(a) – Safety-focused – Outperform industry averages in almost all safety & release related categories #1 #1 – Projects to minimi
Slide 37: Long-Standing Commitment to Reducing Emissions
Long-Standing Commitment to Reducing Emissions 25+ year track record Evaluate new opportunities SUCCESSFUL METHANE EMISSIONS REDUCTIONS(a) – Work with organizations like DOE, EPA, & PRCI on studies & technology bcf, cumulative across our operations reported to EPA Natural Gas STAR & evaluations Meth
Slide 38: Building a Diverse, Inclusive & Respectful Workplace
Building a Diverse, Inclusive & Respectful Workplace Investing in our people & communities where we operate Talent 45% female or minority Annual training required Leadership programs representation in Executive Leadership helps bring a on our Code of Business Conduct & Ethics to in place for newly p
Slide 39: 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. exports help meet global demand from emerging Many emerging renewable fuels are complementary to their tradi
Slide 40: Strategy & Business Review
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Slide 41: 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 42: We Weathered the 2020 Storm while Improving Shareholder Value
We Weathered the 2020 Storm 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 flow afte
Slide 43: 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 $1.5 billion backlog 4.6x 2021 budgeted Conservative Maintain strong infrastructure w
Slide 44: Efficiency Project Resulted in Annual Savings of ~$100 million
Efficiency Project Resulted in Annual Savings of ~$100 million Our already efficient & lean organization is always looking for ways to improve — In July, appointed James Holland to new COO role for enhanced focus on operations & ESG — Also announced that the COO would lead an examination of cost-eff
Slide 45: Self-Funding Capex & Dividends Since 2016
Self-Funding Capex & Dividends Since 2016 Opportunistic asset monetization 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 BS Other(a) net Other(a) Cash
Slide 46: Highly-Contracted Cash Flows
Highly-Contracted Cash Flows Stable cash flows with ~72% take-or-pay or hedged earnings(a) Contract type Payment feature Example assets CONTRACT MIX(a) Jones Act tankers 100% Natural gas interstate / LNG 93% Entitled to payment regardless of throughput Natural gas intrastate (b) 83% 68% Take-or-pay
Slide 47: 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 11, 2021 CUSTOMER TYPE CREDIT RATING End-user IG or substantial credit support Producer - IG or substantial credit support BB+ to B Produce
Slide 48: 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 2018 – 2020 Capital invested / year 2 Project EBITDA(a) — Expansive asset base ― ability to leverage O
Slide 49: Natural Gas Segment Overview
Natural Gas Segment Overview Connecting key natural gas resources with major demand centers ASSET SUMMARY Natural gas pipelines: ~70,000 miles NGL pipelines: ~1,200 miles Natural gas transported ~40% (U.S. consumption & exports) Working gas storage capacity: 659 bcf 2021 budgeted EBDA: $4.4 billion
Slide 50: Leading the Way Out of the Permian
Leading the Way Out of the Permian Excellent execution in face of global pandemic & substantial opposition Leveraging existing footprint into new takeaway capacity — Reaches across Texas & the Desert Southwest, connecting into major demand markets — Our advantaged network offers broad end-market opt
Slide 51: Supporting the Buildout of U.S. LNG Exports
Supporting the Buildout of U.S. LNG Exports Serving significant liquefaction capacity & well-positioned to capture more Kinder Morgan network advantages Natural gas transportation leader ~70,000 miles of natural gas pipelines Move ~40% of U.S. natural gas consumption & exports Supply diversity Conne
Slide 52: Long-Term Growth Drivers: Natural Gas Segment
Long-Term Growth Drivers: Natural Gas Segment Opportunity for our unique last-mile pipeline connectivity, capitalizing on industry trends — LNG exports: pipeline & storage infrastructure supporting existing & new LNG development Exports — Exports to Mexico: well-positioned to serve growing demand as
Slide 53: Products Segment Overview
Products Segment Overview Strategic footprint with significant cash flow generation ASSET SUMMARY Pipelines: ~9,500 miles 2021 budgeted throughput(a) ~2.3 mmbbld Terminals: 65 terminals Terminals tank capacity ~39 mmbbls Pipeline tank capacity ~16 mmbbls Condensate processing capacity 100 mbbld Tran
Slide 54: Products Segment Overview
Products Segment Overview Supplying a diverse mix of feedstock & finished products critical to refining & transportation sectors 2021B volumes Volume by 2021B DELIVERY VOLUMES(a) mbbld region(b) West 74% — Budget averages 2% below 2019 gasoline Gasoline 1,054 volumes & reaches 2019 level by Q4 2021
Slide 55: West Coast Renewable Fuels Projects
West Coast Renewable Fuels Projects Developing infrastructure to secure renewable fuels Market drivers — Renewable Diesel (RD) has been driven by California subsidies — RIN credits — Low Carbon Fuel Standard (LCFS) credits — Blender’s Tax Credit — Currently averaging approximately $3.00/gal for tota
Slide 56: 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 29 Terminals segment – Liquids 50 80 Products segment 65 55 Total Terminals 144 135 Jones Act: 16 tankers 202
Slide 57: Our Integrated Terminal Network on Houston Ship Channel
Our Integrated Terminal Network on 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 Explorer 4
Slide 58: Our Integrated Terminal Network on Houston Ship Channel
Our Integrated Terminal Network on Houston Ship Channel Industry leading capabilities in the world’s most competitive refining & petrochemical center Unmatched inbound connectivity Value-added services Outbound market access Truck rack Local truck rack Jefferson Street Refineries Pipeline connectivi
Slide 59: Leading Exporter of U.S. Gasoline & Diesel
Leading Exporter of U.S. Gasoline & Diesel COVID recovery & prospective long-term growth in USGC product exports US GULF EXPORTS(a) OUR HOUSTON SHIP CHANNEL EXPORTS(b) thousand barrels per day thousand barrels per day Diesel 400 2020 1,600 1,400 350 recovery 1,200 1,000 300 800 600 250 400 Gasoline
Slide 60: CO2 Segment Overview
CO2 Segment Overview World class, fully-integrated assets | CO2 source to crude oil production & takeaway in the Permian Basin KMI Est. OGIP CO2 Reserves Interest NRI Location tcf McElmo Dome 45% 37% SW Colorado 22.0 Doe Canyon 87% 68% SW Colorado 3.0 (a) Bravo Dome 11% 8% NE New Mexico 12.0 CO2 & T
Slide 61: CO2 Segment Consistently Generates Free Cash Flow
CO2 Segment Consistently Generates Free Cash Flow Low cash cost structure yields healthy margins through multiple commodity price cycles OIL & GAS CASH OPERATING COSTS & AVG. PRICE CO2 SEGMENT FREE CASH FLOW $ millions $ per net barrel Cash costs Avg. realized oil price FCF Capex Acquisitions Adj. S
Slide 62: 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) ~7% current yield & almost 2x coverage(b) Top 10 dividend yield in S&P500 Dividends & capex funded
Slide 63: Panel with COO & Business Unit Presidents
PANEL WITH COO & BUSINESS UNIT PRESIDENTS 63
Slide 64: 2021 Budget
2021 BUDGET
Slide 65: 2021 Budget
2021 Budget Committed to maintaining a strong balance sheet & returning value to shareholders Variance to Key metrics 2021 Budget 2020 Net income $2.1 billion ~$2 billion Increase due primarily to impairments taken during 2020 Lower re-contracting rates (mainly Ruby & FEP, as noted for the last coup
Slide 66: Stable Foundation of Cash Flows through Commodity Cycles
Stable Foundation of Cash Flows through Commodity Cycles Diversified footprint of essential assets limits downside, even in extreme downturn events $ billions $0.3 $0.2 $0.1 $0.2 $0.1 $0.1 $0.2 $0.3 $0.1 $0.2 $7.6 $0.2 $0.3 $0.1 $7.0 $6.8 Adjusted for large divestitures, Modest headwinds remain from
Slide 67: 2021 Budget Assumptions & highlights
2021 Budget Assumptions & highlights SEGMENT YoY EBDA(a) KEY DEVELOPMENTS FROM 2020 — Full year contribution from PHP & other expansions Natural Gas -1% — TX Intrastates growth projects & increased margin — Unfavorable re-contracting impacts (FEP, Ruby & others) — Lower drilling activity on G&P asse
Slide 68: 2021B Net Income & Distributable Cash Flow (DCF)
2021B Net Income & Distributable Cash Flow (DCF) in millions, except per share 2021 2020 Change Budget Actual $ % Net income attributable to Kinder Morgan, Inc. (GAAP) $ 2,109 $ 119 $ 1,990 NM Total Certain Items (11) 1,892 (1,903) (101%) Adjusted Earnings(a) 2,098 2,011 $ 87 4% DD&A and amortizatio
Slide 69: 2021B Adjusted Segment EBDA & Adjusted EBITDA
2021B Adjusted Segment EBDA & Adjusted EBITDA $ in millions 2021 2020 Change Budget Actual $ % Natural Gas Pipelines $ 4,419 $ 4,466 $ (47) (1%) Products Pipelines 1,157 1,027 130 13% Terminals 1,032 990 42 4% CO2 504 652 (148) (23%) Adjusted Segment EBDA(a) 7,112 7,135 (23) (0%) General and adminis
Slide 70: 2021B Capital Expenditures
2021B Capital Expenditures $ in millions 2021 2020 Sustaining Capital Budget Actual Change Natural Gas Pipelines $ 424 $ 341 $ 83 Products Pipelines 79 79 (0) Terminals 251 207 44 CO2 14 9 5 Corporate / other 24 22 2 Total sustaining capital expenditures(a) $ 792 $ 658 $ 134 2021 2020 Meaningfully m
Slide 71: 2021B DCF Self-Funding
2021B DCF Self-Funding in millions 2021 2020 Change Budget Actual $ % DCF $ 4,445 $ 4,597 $ (152) (3%) Discretionary capital (794) (1,692) 898 53% Declared dividends (2,461) (2,390) (71) (3%) Share repurchases (a) - (50) 50 100% DCF self funding $ 1,190 $ 465 $ 725 156% Significant excess cash flow
Slide 72: 2021B Cash Flow from Operations & Free Cash Flow
2021B Cash Flow from Operations (CFFO) & Free Cash Flow (FCF) $ in millions 2021 2020 Change Budget Actual $ % Net income attributable to Kinder Morgan, Inc. (GAAP) 2,109 $ 119 $ 1,990 NM Net income attributable to noncontrolling interests 69 61 8 13% DD&A and amortization of excess cost of equity i
Slide 73: 2021B Sources & Uses
2021B Sources & Uses(a) $ in millions 2021 SOURCES & USES $ in billions Sources Budget $6.5 CFFO $ 4,596 Cash balance as of 12/31/2020 1,184 $6.0 Revolver Borrowing/Debt Issuances 302 Cash from BS $5.5 Distributions from equity investments in CFFI(b) 245 $5.0 Debt repayment Total sources $ 6,327 Bor
Slide 74: Leverage & Liquidity
Leverage & Liquidity(a) $ in millions 2021 KMI LONG-TERM DEBT MATURITIES(d) Budget 6,000 Debt maturities Weighted average interest rate 8% 7.6% Net Debt (Year End) $ 31,244 7% Adjusted EBITDA $ 6,8295,000 Net Debt(b) to Adjusted EBITDA 4.6x 6% 4,000 5.5% 5.3% 5.0% 5% 4.7% KMI revolver capacity 12/31
Slide 75: 2021B Quarterly Profile
2021B Quarterly Profile $ in millions, except per share Adjusted Segment EBDA Q1 Q2 Q3 Q4 Total 2021 Budget 26% 24% 24% 26% $ 7,112 2020 Actual 26% 23% 25% 26% $ 7,135 Adjusted EBITDA 2021 Budget 26% 24% 24% 26% $ 6,829 2020 Actual 26% 23% 25% 26% $ 6,962 Distributable Cash Flow (DCF) 2021 Budget 28
Slide 76: 2021B Cash Tax Calculation Detail
2021B Cash Tax Calculation Detail $ in millions 2021 Budget Adjusted Segment EBDA $ 7,112 Net income attributable to NCI (69) JV earnings from C corps (350) JV distributions from C corps (net of 65% dividend received deduction) 138 JV book DD&A (pass-through entities) 143 General and administrative
Slide 77: 2021 Budget Sensitivities
2021 Budget Sensitivities Limited overall commodity exposure 2021B assumptions Change Potential Impact to Adjusted EBITDA & DCF (full year) Natural Gas Products Terminals CO2 Total Natural gas G&P volumes 2.864 bcfd +/- 5% $28 million $28 million Refined products volumes (gasoline, diesel & jet fuel
Slide 78: Financial Highlights
Financial Highlights Enhanced financial strength despite significant demand & price disruptions 2020 2021 BUDGET Weathering market EBITDA down only 8% from budget despite Demand disruptions remain, but expect disruptions significant demand & price disruptions financial recovery Dividend growth Decla
Slide 79: Q&A
Q&A 79
Slide 80: Natural Gas Segment Presentation
Natural Gas Segment Presentation 80
Slide 81: Natural Gas Segment Overview
Natural Gas Segment Overview Connecting key natural gas resources with major demand centers ASSET SUMMARY Natural gas pipelines: ~70,000 miles NGL pipelines: ~1,200 miles Natural gas transported ~40% (U.S. consumption & exports) Working gas storage capacity: 659 bcf 2021 budgeted EBDA: $4.4 billion
Slide 82: Natural Gas Segment is Predominantly Transport Pipelines
Natural Gas Segment is Predominantly Transport Pipelines Over 80% take-or-pay | Fee-based gathering & processing assets focused in the Bakken, Eagle Ford & Haynesville BUSINESS MIX NATURAL GAS SEGMENT VOLUMES based on Adjusted Segment EBDA per 2021 Budget Bbtud Transport Sales Gathering % Gathering
Slide 83: 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% 11,760 12.1 80 8.4 / 3.6(a) NA 10/31/2022 EPNG El Paso Natur
Slide 84: Gathering & Processing Assets Across Multiple Key Basins
Gathering & Processing Assets Across Multiple Key Basins Represents ~7% of KMI EBDA with ~6% in Natural Gas & ~1% in Products (primarily Bakken) SHORT-TERM DRY GAS PRODUCTION OUTLOOK bcfd, 2020 – 2022 ~17% Other 14 Multiple systems in Uinta, +20% Our primary areas expected Oklahoma, San Juan & other
Slide 85: Natural Gas: Intrastate, G&P and NGL Assets
Natural Gas: Intrastate, G&P and NGL Assets Key statistics Avg. Remaining Ownership Miles Capacity Contract Term (yrs) Storage Treating Processing (bcfd) (bcf) (GPM) (bcfd) 100% KMI-owned natural gas pipelines: KMTP / Tejas 100% 5,920 8.3 5.7 132 1,680 0.5 Copano - gas 100% 6,120 4.8 2.5 2,600 1.1 K
Slide 86: Long-Term Growth Drivers: Natural Gas Segment
Long-Term Growth Drivers: Natural Gas Segment Opportunity for our unique last-mile pipeline connectivity, capitalizing on industry trends — LNG exports: pipeline & storage infrastructure supporting existing & new LNG development Exports — Exports to Mexico: well-positioned to serve growing demand as
Slide 87: Leading the Way Out of the Permian
Leading the Way Out of the Permian Excellent execution in face of global pandemic & substantial opposition Leveraging existing footprint into new takeaway capacity — Reaches across Texas & the Desert Southwest, connecting into major demand markets — Our advantaged network offers broad end-market opt
Slide 88: Supporting the Buildout of U.S. LNG Exports
Supporting the Buildout of U.S. LNG Exports Serving significant liquefaction capacity & well-positioned to capture more Kinder Morgan network advantages Natural gas transportation leader ~70,000 miles of natural gas pipelines Move ~40% of U.S. natural gas consumption & exports Supply diversity Conne
Slide 89: Key Market: Exports to Mexico
Key Market: Exports to Mexico Expect to maintain market share of growing Mexico market | ~57%(a) in 2020 Extensive footprint offers diverse supply options to multiple Mexico interconnections – 12 direct & 4 indirect U.S. natural gas exports to Mexico are expected to grow by 22%, or ~1.2 bcfd, to 6.6
Slide 90: Supporting Increasing Variable Demand
Supporting Increasing Variable Demand Opportunities for short notice, high deliverability services & gas storage Renewable generation Export demand — Non-dispatchable, intermittent wind & solar generation requires — Interruptions to LNG exports due to cargo cancellations, weather or other dispatchab
Slide 91: We Serve Regions with Meaningful Renewable Power Today
We Serve Regions with Meaningful Renewable Power Today Our tailored deliverability services better support the needs of flexible grids in these areas SOLAR & WIND POWER GENERATION FACILITIES Sized by generation capacity as of 2019 Solar plant Wind plant KM natural gas pipelines Solar power generatio
Slide 92: Renewables Require Hourly Flexibility & Associated Non-Ratable Services
Renewables Require Hourly Flexibility & Associated Non-Ratable Services Currently serving this dynamic in Western markets ─ trend developing in Central & Eastern markets Our service offerings reflect dedicated use of infrastructure required to meet market demand (ratable & non-ratable services) Coup
Slide 93: Opportunities from Energy in Transition
Opportunities from Energy in Transition Multiple strategies to participate with our substantial natural gas assets Near-Term Strategies Opportunities Next-Steps Position base business to further • Monetize deliverability & unutilized • Identifying regions & specific pipeline enable renewable penetra
Slide 94: Manageable Natural Gas Re-Contracting Exposure
Manageable Natural Gas Re-Contracting Exposure Analysis of existing contracts that renew during next two years KMI ADJUSTED SEGMENT EBDA $ millions Expiring contracts are assessed for volumetric & Adjusted Segment EBDA Interstate pipelines Intrastates & G&P rate risk based on November 2020 market $8
Slide 95: Projects Placed Into Service During 2020
Projects Placed Into Service During 2020 New natural gas projects expected to generate $297 million of annual EBITDA In-service date: 2020 Capacity KM share ($mm) Asset Project Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec (mDthd) Capital EBITDA Permian Highway 2100 $652 Crossover II 1400 $257 Tex
Slide 96: Project Backlog
Project Backlog Natural Gas KM share ($mm) Capacity Asset Project Capital EBITDA (mDthd) In-service Date Project Status East 300 Upgrade $246 115 11/2022 Under Development TGP Line 261 Upgrade (Eversource) $72 121 11/2021 Under Construction Station 321 Cooling $10 30 11/2021 Under Development KMLP A
Slide 97: LNG Contract Overview
LNG Contract Overview Contracted capacity (online / to come) & Elba Liquefaction Contracted capacity KM share ($mm) Remaining KM Asset (mDthd) Capital EBITDA contract term TGP 1,250 $281 KMLP 1,545 $278 NGPL 1,975 $223 EPNG 95 $23 Intrastate 740 $370 Elba Express 436 $100 Transport subtotal: 6,041 $
Slide 98: Products Segment Presentation
Products Segment Presentation 98
Slide 99: Products Segment Overview
Products Segment Overview Strategic footprint with significant cash flow generation ASSET SUMMARY Pipelines: ~9,500 miles 2021 budgeted throughput(a) ~2.3 mmbbld Terminals: 65 terminals Terminals tank capacity ~39 mmbbls Pipeline tank capacity ~16 mmbbls Condensate processing capacity 100 mbbld Tran
Slide 100: Products Segment Volume Mix
Products Segment Volume Mix Supplying a diverse mix of feedstock & finished products critical to refining & transportation sectors 2021B volumes Volume by 2021B DELIVERY VOLUMES(a) mbbld region(b) West 74% — Budget averages 2% below 2019 gasoline Gasoline 1,054 volumes & reaches 2019 level by Q4 202
Slide 101: Refined Products Pipes Historically A Steady Contributor
Refined Products Pipes Historically A Steady Contributor Fee-based with stable volumes over the long-term REFINED PRODUCTS VOLUMES(a) 2021 BUDGETED VOLUMES VS 2019 ACTUAL VOLUMES mmbbld mmbbld KM Refined Product (left) Domestic Refined Products Consumption (right) 1.8 pandemic 18 impact 16 1.5 -2% -
Slide 102: Refined Products Assets Generate Stable Cash Flows
Refined Products Assets Generate Stable Cash Flows Earnings recovery & growth opportunities REFINED PRODUCTS EBDA BY REGION(a) $ millions West Coast Southeast $771 $772 $743 $665 $690 $710 $723 — Renewable fuels provide opportunity to sell $649 $661 incremental services — Vast geography provides opp
Slide 103: West Coast Renewable Fuels Projects
West Coast Renewable Fuels Projects Developing infrastructure to secure renewable fuels Market drivers — Renewable Diesel (RD) has been driven by California subsidies — RIN credits — Low Carbon Fuel Standard (LCFS) credits — Blender’s Tax Credit — Currently averaging approximately $3.00/gal for tota
Slide 104: Volume Across Crude Assets Outpace Production
Volume Across Crude Assets Outpace 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(a) mbbld Texas Bakken mmbbld 700 8.0 600 +4% YoY 7.0 6.0 500 5.0 400 4.
Slide 105: 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 & — Hiland is one of the Bakken’s premier gathering systems Houston Ship Channel markets — Backed by dedications from key producers in the basin — Flexibility
Slide 106: Products Segment Snapshot
Products Segment Snapshot Asset statistics Crude oil assets: Statistics Origin Destination KM Crude & Condensate pipeline (KMCC) 266 miles Eagle Ford Shale Field in South TX (Dewitt, Karnes, Gonzales Houston Ship Channel Refining Complex Counties) Camino Real Gathering 66 miles South Texas, Eagle Fo
Slide 107: Terminals Segment Presentation
Terminals Segment Presentation 107
Slide 108: 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 29 Terminals segment – Liquids 50 80 Products segment 65 55 Total Terminals 144 135 Jones Act: 16 tankers 202
Slide 109: Liquids-Focused Terminals with a Diverse Product Mix
Liquids-Focused Terminals with a Diverse Product Mix Core services to the domestic refining industry 2021B REVENUE: $1.8 BILLION(a) LIQUIDS — Market-making industry hubs in key refining centers critical to our customers — Complementary & synergistic with renewables & chemicals — Jones Act tankers to
Slide 110: Terminals Segment Contract Model
Terminals Segment Contract Model Earnings driven by long-term contractual use of our assets — Leased tank capacity (pre-paid monthly) take-or-pay — Jones Act tanker charters (pre-paid monthly) 70% — Minimum volume commitments (per bbl or ton) Ancillary services (e.g., vessel loading & blending) 2021
Slide 111: Terminals Segment Services
Terminals Segment Services Offering unmatched market access with modal flexibility alongside value-added terminaling services 2021B 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 112: Our Liquid Hubs
Our Liquid Hubs Strategically located to serve key supply & demand markets New York Houston Ship Channel Chicago Harbor — Serves the world’s most competitive supply of refined products & petrochemicals Philadelphia Baltimore Dayton — 9 terminals providing ~43 million barrels of capacity(a) Indianapo
Slide 113: Our Integrated Terminal Network on Houston Ship Channel
Our Integrated Terminal Network on 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 Explorer 4
Slide 114: Our Integrated Terminal Network on Houston Ship Channel
Our Integrated Terminal Network on Houston Ship Channel Industry leading capabilities in the world’s most competitive refining & petrochemical center Unmatched inbound connectivity Value-added services Outbound market access Truck rack Local truck rack Jefferson Street Refineries Pipeline connectivi
Slide 115: Tankers Meeting Domestic Maritime Demand
Tankers Meeting Domestic Maritime Demand Most modern & efficient Jones Act tanker fleet American Petroleum Tankers Time Charters Renewal Options – 16 modern, fuel-efficient tankers – Largest Jones Act tanker fleet 0 2021 12 2022 24 2023 36 – Most modern fleet with an average age of 6.8 years Palmett
Slide 116: Bulk Commodities
Bulk Commodities Diversified product & logistics service offerings Handle ~40% of Midcontinent & Gulf Coast production(b) Petroleum Coke 8% — — In-plant refinery bulk-handling 2021B Segment Revenue(a) One of the nation’s largest handlers — Export terminaling services — Aggregation & blending at expo
Slide 117: Meaningful Growth in Gasoline & Diesel Exports
Meaningful Growth in Gasoline & Diesel Exports Globally competitive U.S. Gulf Coast refiners increasingly serve growing export markets U.S. REFINED PRODUCT EXPORTS(a) USGC EXPORT DESTINATIONS(a) thousand barrels per day trailing twelve months 3,000 2,500 2,000 Other U.S. 1,500 Gulf Coast Diesel Colu
Slide 118: Leading Exporter of U.S. Gasoline & Diesel
Leading Exporter of U.S. Gasoline & Diesel COVID recovery & prospective long-term growth in USGC product exports US GULF EXPORTS(a) OUR HOUSTON SHIP CHANNEL EXPORTS(b) thousand barrels per day thousand barrels per day Diesel 400 2020 1,600 1,400 350 recovery 1,200 1,000 300 800 600 250 400 Gasoline
Slide 119: Attractive Potential for Liquid Biofuels
Attractive Potential for Liquid Biofuels Policy support & efficient infrastructure important to increasing adoption of ethanol, biodiesel & other low-carbon fuels GLOBAL BIOFUELS DEMAND OUTLOOK million barrels per day Stated policies scenario projects: ~75% or 1.5 mmbbld increase by 2030 6 ~150% or
Slide 120: Our Industry Leading Ethanol Capabilities
Our Industry Leading Ethanol Capabilities Handling nearly a third of domestic ethanol & positioned for growth U.S. ETHANOL KINDER MORGAN RESPONSE million barrels per day Efficient, full-service, logistics solutions 1.2 Ethanol blended into gasoline RBOB & CBOB Fuel Ethanol Production 1 E10 0.8 Ethan
Slide 121: A Leading Position to Meet Renewable Diesel Growth
A Leading Position to Meet Renewable Diesel Growth Advantaged footprint to provide logistics solutions for emerging products CALIFORNIA LOW CARBON FUEL STANDARD(a) OUR RENEWABLE DIESEL OPPORTUNITIES alternative volumes & credits by segment Terminals 2,400 12.0 TERMINALS Ethanol Ethanol Million gallo
Slide 122: Our Unmatched Energy Storage & Distribution Infrastructure
Our Unmatched Energy Storage & Distribution Infrastructure Unrivaled offering of value-added industry solutions TERMINALS SEGMENT HIGHLIGHTS irreplicable collection of infrastructure & capabilities Meeting the energy needs of today… core liquids solutions critical to our customers & industry 79 te
Slide 123: Our Logistics Solutions
Our Logistics Solutions Long-term macro fundamentals support our value propositions Markets Macro Trends Our Value Propositions • Domestic growth in renewable, low-carbon alternative fuels Biofuel & feedstock liquid supply hubs & pricing points • Renewable diesel investments to supply low carbon f
Slide 124: Terminals Throughput & Tonnage Statistics
Terminals Throughput & Tonnage Statistics 2019 to 2021B comparison Variance 2019 Variance Variance 2019 Variance Throughput vs. 2020 Throughput vs. 2019 Tonnage vs. 2020 Tonnage vs. 2019 MMBbls 2020 2021B MMBbls % 2019 MMBbls % tons (millions) 2020 2021B mm tons % 2019 mm tons % Gasoline 426.9 528.6
Slide 125: CO2 Segment Presentation
CO2 Segment Presentation 125
Slide 126: CO2 Segment Overview
CO2 Segment Overview World class, fully-integrated assets | CO2 source to crude oil production & takeaway in the Permian Basin KMI Est. OGIP CO2 Reserves Interest NRI Location tcf McElmo Dome 45% 37% SW Colorado 22.0 Doe Canyon 87% 68% SW Colorado 3.0 (a) Bravo Dome 11% 8% NE New Mexico 12.0 CO2 & T
Slide 127: Enhanced Oil Recovery Process
Enhanced Oil Recovery Process Specializing in the gas injection method of enhanced oil recovery (EOR) Three phases of oil & gas production PRIMARY SECONDARY TERTIARY RECOVERY RECOVERY (ENHANCED) RECOVERY Reinject CO2 10-20% 20-40% 30-60% OOIP recovered OOIP recovered OOIP recovered Natural pressure
Slide 128: Key Factors Driving the Success of Our CO2 Segment
Key Factors Driving the Success of Our CO2 Segment Maximizing returns through financial discipline & innovation Highly-Skilled Team Advantaged Assets Profit-Focused • Vertically integrated & • Industry-leading experience • High-return asset base Permian focused in highly specialized • Invest based o
Slide 129: CO2 Segment Budget & Sensitivities
CO2 Segment Budget & Sensitivities CO2 & Transport SACROC Yates Katz, Goldsmith, Tall Cotton Potential Impact to Adjusted EBITDA $240 2021B assumptions Change & DCF (full year) Crude oil production +/- 5% in gross $21.6 million 41 mbbld gross volumes $172 (29 mbbld net) $126 CO2 sales +/- 50 mmcfd i
Slide 130: CO2 Segment Budgeted Volumes & Highlights
CO2 Segment Budgeted Volumes & Highlights 2021B NET OIL & NGL PRODUCTION 2021B NET CO2 SALES mbbld mmcfd SACROC 50 SACROC oil 18.7 SACROC NGL 9.4 Yates 6.8 Yates 37 Katz 1.5 38 mbbld 331 mmcfd Goldsmith 0.9 Tall Cotton 0.7 Third parties 244 OIL & GAS CO2 & TRANSPORT — Majority of required takeaway c
Slide 131: CO2 Segment 2021 Oil & Gas Major Projects
CO2 Segment 2021 Oil & Gas Major Projects Major projects expected to generate attractive returns in multiple commodity price environments Asset Project 2021B capex Commentary ATIRR% at flat WTI price scenarios Forward Curve $43 $45 $50 — Activate remaining 10 of 33 Conventional West Shore Project Ar
Slide 132: 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 2021B original oil i
Slide 133: CO2 Segment Long-Term Growth Outlook
CO2 Segment Long-Term Growth Outlook Projected EBDA, net production & development plan EBDA(a) NET PRODUCTION 10 YEAR DEVELOPMENT PLAN $ millions incl. NGL & residue gas (mboed) 2021 – 2030 $700 50 CO2 & $600 Transport $230 SACROC $396 40 KM share capex $500 $ millions 30 $400 Yates $175 $300 20 SAC
Slide 134: CO2 Segment Consistently Generates Free Cash Flow
CO2 Segment Consistently Generates Free Cash Flow Low cash cost structure yields healthy margins through multiple commodity price cycles OIL & GAS CASH OPERATING COSTS & AVG. PRICE CO2 SEGMENT FREE CASH FLOW $ millions $ per net barrel Cash costs Avg. realized oil price FCF Capex Acquisitions Adj. S
Slide 135: CO2 Segment Predictable Volumes & Hedged Commodity Price
CO2 Segment Predictable Volumes & Hedged Commodity Price Mitigating uncertainties where possible | EOR oil & gas production represents ~5% of KMI business mix NET OIL PRODUCTION: ACTUALS VS. BUDGET mbbld HEDGED VOLUMES as of 1/7/2021 Actual Budget 45 40 2021 2022 2023 2024 2025 35 Crude oil - West T
Slide 136: Carbon Capture Utilization & Storage (CCUS)
Carbon Capture Utilization & Storage (CCUS) Positioned to leverage our existing expertise & capabilities to provide CCUS services in the future Our experience & current operations cover the CCUS value chain CURRENT ESTIMATED U.S. CARBON CAPTURE COST $/tonne $300 — Design, manufacture, install & oper
Slide 137: Appendix
APPENDIX
Slide 138: Energy Toll Road
Energy Toll Road Cash flow security with >90% from take-or-pay & other fee-based contracts Natural Gas Products Terminals CO2 2021B EBDA %(a) 62% 16% 15% 7% Refined Liquids Jones Act CO2 & Interstate / LNG Intrastate G&P products Crude terminals tankers Bulk terminals EOR Oil & Gas Transport 4% & 1%
Slide 139: $1.5 Billion Project Backlog as of 12/31/2020
$1.5 Billion Project Backlog as of 12/31/2020 Primarily focused on contracted natural gas opportunities DEMAND SUPPLY CAPITAL ESTIMATED PIPELINE PULL PUSH ($ billion) IN-SERVICE CAPACITY Supply for U.S. power & LDC demand (TGP, FGT & SNG) • $ 0.4 Q1 2021 – 2023 0.6 bcfd Supply for LNG export (KMLP,
Slide 140: Joint Venture Treatment in Key Metrics
Joint Venture Treatment in Key Metrics KM controls & fully consolidates KM does not control or consolidate third party portion referred to as noncontrolling interests in financial statements KM portion referred to as equity investments in financial statements Example JVs Elba Liquefaction (51%), BOS
Slide 141: Returns on Invested Capital
Returns on Invested Capital Targeted returns for new capital investment are substantially above cost of capital SEGMENT ROI(a,b) CO2 Terminals Products Nat Gas 30% Commodity price change Pandemic 25% 20% 15% 10% 5% 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 KINDER MORGAN RETURNS ROI ROE 30
Slide 142: Distributable Cash Flow (DCF) versus Net Income
Distributable Cash Flow (DCF) versus Net Income Largest differences easily explainable & reflective of cash earnings DEPRECIATION EXPENSE VS. SUSTAINING CAPEX(a) BOOK TAX EXPENSE VS. CASH TAXES $ billions $ billions DD&A Sustaining Capital Book Taxes Cash Taxes $2.9 $1.0 $1.0 $2.8 $1.0 $2.7 $2.6 $2.
Slide 143: Our Pandemic Response
Our Pandemic Response Prioritizing the health of our co-workers & their families while maintaining safe & reliable operations of our assets Leveraging well-established & previously utilized business continuity & pandemic response plans Kinder Morgan’s Pandemic Preparedness Committee actively mon
Slide 144: Incidents & Releases: Liquids Pipelines
Incidents & Releases: Liquids Pipelines Liquids pipeline right-of-way INCIDENTS PER 1,000 MILES(a,b) RELEASE RATE(a,b) barrels per billion barrel miles 0.57 0.45 0.44 0.37 0.39 17.96 9.90 0.33 15.5 13.05 12.86 0.29 0.27 6.00 0.24 0.21 0.16 0.14 2.5 0.67 4.29 0.24 0.11 0.05 0.04 0.01 0.01 0.08 0.08 0
Slide 145: Incidents & Releases: Natural Gas Pipelines
Incidents & Releases: Natural Gas Pipelines Natural gas pipeline right-of-way INCIDENTS RATE ALL REPORTABLE INCIDENTS(a,b) INCIDENTS RATE ONSHORE RUPTURES ONLY(b,c,d) Incidents per 1,000 miles Incidents per 1,000 miles 0.16 0.52 0.52 0.45 0.36 0.38 0.37 0.37 0.32 0.31 0.30 0.27 0.27 0.26 0.06 0.04 0
Slide 146: Employee Safety Statistics
Employee Safety Statistics 12-month performance summary as of 12/31/2020 DAYS AWAY, RESTRICTED, OR TRANSFERRED (DART) RATE OSHA TOTAL RECORDABLE INCIDENT RATE (TRIR) Days Away, Restricted or Transferred incidents per 200,000 hours worked OSHA recordable incidents per 200,000 hours worked 4.9 2.4 3.4
Slide 147: Non-GAAP Financial Measures & Reconciliations
Non-GAAP Financial Measures & Reconciliations Defined Terms Reconciliations for the historical periods 147
Slide 148: 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 149: 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 150: 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 151: 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
Slide 152: Net Income & Adjusted EBITDA
Net Income & Adjusted EBITDA $ in millions 2021 2020 Change Budget Actual $ % Net income attributable to Kinder Morgan, Inc. (GAAP) $ 2,109 $ 119 $ 1,990 1672% Total Certain Items (11) 1,892 (1,903) (101%) DD&A and amortization of excess cost of equity investments 2,223 2,304 (81) (4%) Income tax ex
Slide 153: Reconciliations of KMI FCF & CO2 Segment FCF
Reconciliations of KMI FCF & CO2 Segment FCF $ in millions a) Includes dividends paid for the preferred shares for the years ended 2016, 2017, and 2018. b) Includes sustaining and expansion capital expenditures. 153
Slide 154: Computation of the Refined Products Contributions to the 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 2013 2014 2015 2016 2017 2018 2019 2020 Products Pipelines Segment EBDA (GAAP) $602 $856 $
Slide 155: Explanation of Return Calculations
Explanation of Return Calculations Formula Notes Formula Notes Gross PP&E Equity Investments (JVs) (f) Segment Adjusted Segment EBDA less sustaining capex (a) Goodwill Return on Gross intangibles (excluding amortization) Investment Average Total Investment (b) Plus: Asset write-offs / retirements Cu