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    Kinder Morgan Inc (KMI)

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    Business Description

    KMI is one of the largest energy infrastructure companies in North America, operating approximately 82,000 miles of pipelines and 139 terminals as of December 31, 2023. The company is primarily involved in the transportation and storage of energy products, including natural gas, petroleum products, and CO2, contributing to enhanced oil recovery . KMI's business is divided into several segments, with the Natural Gas Pipelines segment being the largest contributor, followed by Products Pipelines, Terminals, and CO2 .

    1. Natural Gas Pipelines - Operates major interstate and intrastate pipelines, storage systems, and LNG facilities, providing transportation and storage services that significantly contribute to the company's revenue .
    2. Products Pipelines - Transports refined petroleum products, crude oil, and condensate, making KMI the largest independent transporter of petroleum products in the U.S. .
    3. Terminals - Handles various commodities, including gasoline, diesel, and chemicals, under long-term contracts, contributing to a stable revenue stream .
    4. CO2 - Involved in CO2 production and transportation for enhanced oil recovery, contributing to the company's business .

    Key Metrics

    View all financials →

    Executive Team

    NamePositionStart DateShort Bio
    Richard D. KinderDirector and Executive Chairman1999Richard D. Kinder has been a Director and the Executive Chairman of KMI since 1999. He served as CEO until 2015, providing unmatched familiarity with the company's strategy, operations, and finances .
    Kimberly A. DangDirector and Chief Executive OfficerAugust 1, 2023Kimberly A. Dang has been a director since 2017 and became CEO on August 1, 2023. She was President from 2018 to August 2023 and has held various roles since 2001 .
    Thomas A. MartinPresidentAugust 2023Thomas A. Martin became President in August 2023 after serving as Executive Vice President. He has been with Kinder Morgan since 2003 in various roles .
    Anthony B. AshleyVice President (President, CO2 and Energy Transition Ventures)June 2022Anthony B. Ashley was elected Vice President in June 2022. He previously served as Vice President, Energy Transition Ventures from February 2021 .
    Kevin GrahmannVice President, Corporate DevelopmentJuly 2020Kevin Grahmann was elected Vice President in July 2020. He joined Kinder Morgan's Corporate Development group in 2012 and was named a Vice President in July 2017 .
    James E. HollandVice President and Chief Operating OfficerJuly 2020James E. Holland was elected Vice President and COO in July 2020. He has been with Kinder Morgan for over 25 years, holding various operations and engineering positions .
    Catherine C. JamesVice President and General CounselFebruary 2019Catherine C. James was elected Vice President and General Counsel in February 2019. She previously served as Executive Vice President and General Counsel of Dynegy, Inc. .
    David P. MichelsVice President and Chief Financial OfficerApril 2018David P. Michels has served as Vice President and CFO since April 2018. He previously worked at Barclays and Lehman Brothers in energy investment banking .
    Sital K. ModyVice President (President, Natural Gas Pipelines)February 2023Sital K. Mody was elected Vice President in February 2023. He served as President of KMI's Midstream Group from August 2018 to February 2023 .
    Michael J. PittaVice President and Chief Administrative OfficerFebruary 26, 2024Michael J. Pitta will be Vice President and Chief Administrative Officer effective February 26, 2024. He has held various leadership roles over his 19-year career with KMI .
    Dax A. SandersVice President (President, Products Pipelines)July 2020Dax A. Sanders was elected Vice President in July 2020. He joined Kinder Morgan in 2000 and has served in various finance and business development roles .
    John W. SchlosserVice President (President, Terminals)December 2014John W. Schlosser was elected Vice President in December 2014. He joined Kinder Morgan in 2001 and has over 39 years of experience in commodity transportation and logistics .

    Questions to Ask Management

    1. Given the significant increase in your capital backlog to $5.1 billion , and the expectation of additional large projects, how do you plan to manage higher capital expenditures while maintaining your target debt-to-EBITDA ratio, especially if annual CapEx exceeds the $2.5 billion you can fund from cash flow? ,

    2. Considering the ongoing legal challenges to infrastructure projects, such as the issues encountered with the Cumberland project , how are you adapting your permitting strategy and risk management to mitigate the impact of potential court delays and ensure timely project completion?

    3. With the reported weakness in gathering and processing volumes due to lower commodity prices , and uncertainty about G&P volumes into 2025 , what measures are you taking to address this softness and what is your outlook for this segment?

    4. As you engage in discussions with power plants across multiple states and see significant opportunities in power demand , but currently have no concrete plans to provide power directly , how do you intend to capture the full value of this power demand growth, and would you consider expanding into power generation or behind-the-meter solutions in the future? ,

    5. Given that only about 25% of your storage capacity is at market-based rates and some contracts are yet to roll over , how much incremental revenue do you expect from rolling these contracts to higher market rates, and over what timeframe will this tailwind materialize?

    Share Repurchase Program

    Program DetailsProgram 1
    Approval DateN/A
    End Date/DurationN/A
    Total additional amount$3 billion
    Remaining authorization amount$1.5 billion
    DetailsThe program is part of the company's strategy to enhance and return value to its stockholders. It aims to reduce the number of outstanding shares to increase the value of remaining shares and improve financial metrics such as earnings per share.

    Debt Maturity Schedule

    YearAmount Due (in millions)Debt TypeInterest Rate (%)% of Total Debt
    2025$1,500 4.30% Notes 4.30 4.7% = (1,500 / 32,031) * 100
    2026$1,853 1.75% Notes 1.75 5.8% = (1,853 / 32,031) * 100
    2027$4,750 6.70% Bonds 6.70 14.8% = (4,750 / 32,031) * 100
    2028$1,000 7.25% Debentures 7.25 3.1% = (1,000 / 32,031) * 100
    2029$1,750 5.00% Bonds 5.00 5.5% = (1,750 / 32,031) * 100
    2030$2,900 2.90% Bonds 2.90 9.1% = (2,900 / 32,031) * 100
    2031$7,400 7.40% Bonds 7.40 23.1% = (7,400 / 32,031) * 100
    2032$8,375 8.375% Bonds 8.375 26.1% = (8,375 / 32,031) * 100
    2033$5,200 5.20% Bonds 5.20 16.2% = (5,200 / 32,031) * 100
    2034$5,400 5.40% Bonds 5.40 16.9% = (5,400 / 32,031) * 100
    2035$5,550 5.55% Notes 5.55 17.3% = (5,550 / 32,031) * 100
    2036$6,400 6.40% Notes 6.40 20.0% = (6,400 / 32,031) * 100
    2037$6,850 6.85% Bonds 6.85 21.4% = (6,850 / 32,031) * 100
    2038$6,950 6.95% Bonds 6.95 21.7% = (6,950 / 32,031) * 100
    2039$6,500 6.50% Bonds 6.50 20.3% = (6,500 / 32,031) * 100
    2040$6,550 6.55% Bonds 6.55 20.5% = (6,550 / 32,031) * 100
    2041$6,375 6.375% Bonds 6.375 19.9% = (6,375 / 32,031) * 100
    2042$5,000 5.00% Bonds 5.00 15.6% = (5,000 / 32,031) * 100
    2043$5,000 5.00% Bonds 5.00 15.6% = (5,000 / 32,031) * 100
    2044$5,500 5.50% Bonds 5.50 17.2% = (5,500 / 32,031) * 100
    2045$5,550 5.55% Notes 5.55 17.3% = (5,550 / 32,031) * 100
    2046$5,050 5.050% Notes 5.050 15.8% = (5,050 / 32,031) * 100
    2048$5,200 5.20% Notes 5.20 16.2% = (5,200 / 32,031) * 100
    2050$3,250 3.25% Notes 3.25 10.1% = (3,250 / 32,031) * 100
    2051$3,600 3.60% Notes 3.60 11.2% = (3,600 / 32,031) * 100
    2052$5,450 5.45% Notes 5.45 17.0% = (5,450 / 32,031) * 100
    2054$5,950 5.95% Notes 5.95 18.6% = (5,950 / 32,031) * 100
    2098$7,450 7.45% Debentures 7.45 23.3% = (7,450 / 32,031) * 100

    Competitors

    Competitors mentioned in the company's latest 10K filing.

    • Suppliers with ownership interest in McElmo Dome, Bravo Dome, and Sheep Mountain CO2 resources
    • Other CO2 pipelines competing with Kinder Morgan's ownership interests in the Central Basin, Cortez, and Bravo pipelines
    • Other interest owners in the McElmo Dome unit and the Bravo Dome unit for transportation of CO2 to the Denver City, Texas market area
    • Interstate and intrastate pipelines for connections to new markets and supplies and for transportation, processing, storage, and treating services
    • Proprietary pipelines and terminals owned and operated by major oil companies, other independent products pipelines and terminals, trucking, and marine transportation firms
    • Refineries owned by major oil companies and independent transmix facilities

    Auditor

    NameStart DateEnd DateReason for Change
    PricewaterhouseCoopers LLP1997 PresentCurrent auditor

    Latest news

    Recent developments and announcements about KMI.

    Financial Reporting

      Earnings Report

      ·
      Jan 22, 2025, 9:36 PM

      Kinder Morgan, Inc. (KMI) Fourth Quarter 2024 Earnings Results

      Kinder Morgan, Inc. (KMI) has released its fourth quarter 2024 earnings results, showcasing strong financial and operational performance. Below are the key highlights:

      Financial Performance

      • Earnings Per Share (EPS): $0.30, an 11% increase compared to Q4 2023.
      • Adjusted EPS: $0.32, up 14% year-over-year.
      • Net Income: $667 million, a 12% increase from $594 million in Q4 2023.
      • Adjusted EBITDA: $2,063 million, a 7% increase compared to Q4 2023.
      • Free Cash Flow (FCF): $738 million, with $96 million remaining after dividends.

      Operational Highlights

      • Natural Gas Pipelines: Increased contributions from the Texas Intrastate system and expansion projects on the Tennessee Gas Pipeline (TGP).
      • Products Pipelines: Higher rates and increased refined product volumes (+2%) contributed to improved performance.
      • Terminals: Earnings rose due to higher rates in the Jones Act tanker fleet and expansion projects in liquids terminals.
      • CO2 Segment: Earnings declined due to asset divestitures and lower crude oil and CO2 volumes, partially offset by new acquisitions.

      Major Projects and Investments

      • Trident Intrastate Pipeline Project: A $1.7 billion, 216-mile pipeline to provide 1.5 Bcf/d of capacity from Katy, Texas, to Port Arthur, Texas. Expected in-service date: Q1 2027 .
      • Mississippi Crossing Project: Expanded to transport up to 2.1 Bcf/d of natural gas with an estimated cost of $1.6 billion. Expected in-service date: November 2028 .
      • South System Expansion 4 (SSE4): A $3 billion project to increase capacity by 1.2 Bcf/d in the Southeast. Phase 1 expected in Q4 2028, Phase 2 in Q4 2029.
      • Evangeline Pass Project: A $672 million project to deliver 2 Bcf/d of natural gas to Venture Global’s Plaquemines LNG facility. Expected in-service date: July 1, 2025.

      Dividend Announcement

      • KMI declared a cash dividend of $0.2875 per share for Q4 2024, representing a 2% increase over Q4 2023. The annualized dividend is $1.15 per share.

      Outlook for 2025

      • Net Income: Projected at $2.8 billion, an 8% increase from 2024.
      • Adjusted EPS: Expected to rise 10% to $1.27.
      • Adjusted EBITDA: Budgeted at $8.3 billion, a 4% increase from 2024.
      • Dividends: Anticipated to grow by 2% to $1.17 per share.

      KMI continues to demonstrate robust financial health and operational growth, supported by strategic investments in infrastructure and long-term contracts. The company’s focus on natural gas projects aligns with increasing demand for LNG and energy infrastructure .

      Sources: , , , , ,