HOUSTON--(BUSINESS WIRE)--Kinder Morgan, Inc. (NYSE: KMI) reported third quarter cash available to
pay dividends of $435 million, up from $424 million for the same period
a year ago, and remains on track to meet or exceed its published annual
budget of $1.78 billion in cash available to pay dividends. For the
first nine months of the year, the company reported cash available to
pay dividends of $1.340 billion, up 9 percent from $1.231 billion for
the same period in 2013.
KMI’s board of directors announced an increase in the quarterly cash
dividend to $0.44 per share ($1.76 annualized), up 7 percent from $0.41
per share ($1.64 annualized) for the same period last year, payable on
Nov. 17, 2014, to shareholders of record as of Oct. 31, 2014.
Chairman and CEO Richard D. Kinder said, “KMI had a good third quarter,
reflecting continued strong performance at Kinder Morgan Energy Partners
and at El Paso Pipeline Partners. Since our second quarter earnings
release in July, we have increased our project backlog of expansion and
joint venture investments at KMI to $17.9 billion from $17 billion,
notwithstanding $1.1 billion in projects that were placed into service
in the third quarter and thus removed from the backlog. Projects in the
backlog have a high certainty of completion and will drive future growth
at the company across all of our business segments. Additionally, since
Dec. 1, 2013, Kinder Morgan’s natural gas pipelines companywide have
entered into new and pending firm transport capacity commitments
totaling 6.4 billion cubic feet per day (Bcf/d). This represents about 9
percent of the current daily natural gas demand in the United States and
compares to 5.3 Bcf/d when second quarter earnings were announced. We
currently move about one-third of the natural gas consumed in America,
and certain industry experts are projecting gas demand will increase by
about 35 percent to approximately 100 Bcf/d over the next 10 years. As
the largest natural gas pipeline operator in North America, and with the
substantial cash flow being produced by our other market leading
businesses, we are confident that KMI is well positioned to grow for
many years.”
Kim Dang Joins Office of the Chairman
The Kinder Morgan companies have named Chief Financial Officer Kim Dang
to the Office of the Chairman. Ms. Dang will be involved in the
strategic and policy decisions of the company, the day-to-day management
of the company and the company’s capital allocation to new investments.
“I’m delighted to add Kim to the Office of the Chairman in recognition
of her contributions over the years, as well as the considerable talent
and experience she will bring to bear on continuing our success at
Kinder Morgan,” said Kinder. The Office of the Chairman also includes
Chairman and CEO Rich Kinder and President and Chief Operating Officer
Steve Kean.
2014 Outlook
KMI now expects to exceed its published annual budget dividend of $1.72
per share for 2014.
KMI announced Aug. 10, 2014, that it will acquire all of the publicly
held shares/units of Kinder Morgan Energy Partners, Kinder Morgan
Management and El Paso Pipeline Partners in an approximately $70 billion
transaction. The boards of all of the Kinder Morgan companies voted to
recommend the transaction to their respective unitholders and
shareholders. After the transaction, KMI will have a projected dividend
of $2.00 per share for 2015, a 16 percent increase over the budgeted
2014 KMI dividend target of $1.72 per share.
KMI has received all necessary regulatory approvals except that its
Registration Statement on Form S-4 has not yet been declared effective
by the Securities and Exchange Commission. The company expects to
announce the dates of the shareholder meeting in the near future and
continues to anticipate the transaction will close before year end. For
more information on this transaction, please visit the Kinder Morgan web
site at www.kindermorgan.com.
Kinder Morgan is the largest midstream and the third largest energy
company in North America with a combined enterprise value of
approximately $120 billion. It owns an interest in or operates
approximately 80,000 miles of pipelines and 180 terminals. Its pipelines
transport natural gas, gasoline, crude oil, CO2 and other
products, and its terminals store petroleum products and chemicals and
handle such products as ethanol, coal, petroleum coke and steel. Kinder
Morgan, Inc. (NYSE: KMI) owns the general partner interests of Kinder
Morgan Energy Partners, L.P. (NYSE: KMP) and El Paso Pipeline Partners,
L.P. (NYSE: EPB), along with limited partner interests in KMP and EPB
and shares in Kinder Morgan Management, LLC (NYSE: KMR). For more
information please visit www.kindermorgan.com.
Please join Kinder Morgan at 4:30 p.m. Eastern Time on Wednesday,
Oct. 15 at www.kindermorgan.com
for a LIVE webcast conference call on the company’s third quarter
earnings.
The non-generally accepted accounting principles, or non-GAAP,
financial measure of cash available to pay dividends is presented
in this news release. Cash available to pay dividends is a significant
metric used by us and by external users of our financial statements,
such as investors, research analysts, commercial banks and others, to
compare basic cash flows generated by us to the cash dividends we expect
to pay our shareholders on an ongoing basis. Management uses this metric
to evaluate our overall performance. Cash available to pay
dividends is also an important non-GAAP financial measure for our
shareholders because it serves as an indicator of our success in
providing a cash return on investment. This financial measure
indicates to investors whether or not we are generating cash flow at a
level that can sustain or support an increase in the quarterly dividends
we are paying. Our dividend policy provides that, subject to
applicable law, we will pay quarterly cash dividends generally
representing the cash we receive from our subsidiaries less any cash
disbursements and reserves established by our board of directors. Cash
available to pay dividends is also a quantitative measure used in the
investment community because the value of a share of an entity like KMI
that pays out all or a substantial proportion of its cash flow is
generally determined by the dividend yield (which in turn is based on
the amount of cash dividends the corporation pays to its shareholders).
The economic substance behind our use of cash available to pay
dividends is to measure and estimate the ability of our assets to
generate cash flows sufficient to pay dividends to our investors.
We believe the GAAP measure most directly comparable to cash
available to pay dividends is income from continuing operations. A
reconciliation of cash available to pay dividends to income from
continuing operations is provided in this release. Our non-GAAP measure
described above should not be considered as an alternative to GAAP net
income and has important limitations as an analytical tool. Our
computation of cash available to pay dividends may differ from similarly
titled measures used by others. You should not consider this non-GAAP
measure in isolation or as a substitute for an analysis of our results
as reported under GAAP. Management compensates for the limitations of
this non-GAAP measure by reviewing our comparable GAAP measures,
understanding the differences between the measures and taking this
information into account in its analysis and its decision making
processes.
This news release includes forward-looking statements. These
forward-looking statements are subject to risks and uncertainties and
are based on the beliefs and assumptions of management, based on
information currently available to them. Although Kinder Morgan believes
that these forward-looking statements are based on reasonable
assumptions, it can give no assurance that such assumptions will
materialize. Important factors that could cause actual results to
differ materially from those in the forward-looking statements herein
include those enumerated in Kinder Morgan’s reports filed with the
Securities and Exchange Commission. Forward-looking statements
speak only as of the date they were made, and except to the extent
required by law, Kinder Morgan undertakes no obligation to update or
review any forward-looking statement because of new information, future
events or other factors. Because of these uncertainties, readers
should not place undue reliance on these forward-looking statements.
IMPORTANT ADDITIONAL INFORMATION AND WHERE TO FIND IT
This communication may be deemed to be solicitation material in
respect of the proposed acquisition by KMI of each of Kinder Morgan
Energy Partners, L.P. (“KMP”), Kinder Morgan Management, LLC (“KMR”) and
El Paso Pipeline Partners, L.P. (“EPB”) (collectively, the “Proposed
Transactions”). KMI has filed with the Securities and Exchange
Commission (“SEC”) an amendment to its registration statement on Form
S-4 (“Registration Statement”), which contains a preliminary proxy
statement for KMI and a preliminary proxy statement / prospectus for
each of KMP, KMR and EPB. The Registration Statement has not yet
been declared effective by the SEC. Each of KMI, KMP, KMR and EPB
plan to mail to their respective security holders, as applicable, a
proxy statement or proxy statement / prospectus in connection with the
Proposed Transactions following the Registration Statement being
declared effective by the SEC. The Registration Statement, the
preliminary KMI proxy statement and each preliminary proxy statement /
prospectus contain important information about KMI, KMP, KMR, EPB, the
Proposed Transactions and related matters. INVESTORS AND SECURITY
HOLDERS ARE URGED TO READ CAREFULLY THE REGISTRATION STATEMENT, THE
APPLICABLE PROXY STATEMENT OR PROXY STATEMENT / PROSPECTUS AND ANY OTHER
DOCUMENTS THAT HAVE BEEN FILED OR WILL BE FILED WITH THE SEC, INCLUDING
THE DEFINITIVE KMI PROXY STATEMENT AND EACH DEFINITIVE PROXY STATEMENT /
PROSPECTUS, IN CONNECTION WITH THE PROPOSED TRANSACTIONS OR INCORPORATED
BY REFERENCE IN THE PROXY STATEMENT OR THE APPLICABLE PROXY STATEMENT /
PROSPECTUS.
Investors and security holders will be able to obtain copies of the
KMI proxy statement and each proxy statement / prospectus as well as
other filings containing information about KMI, KMP, KMR and EPB,
without charge, at the SEC’s website, http://www.sec.gov.
Copies of documents filed with the SEC by KMI, KMP, KMR and EPB will be
made available free of charge on Kinder Morgan, Inc.’s website at http://www.kindermorgan.com/investor/
or by written request by contacting the investor relations department of
KMI, KMP, KMR or EPB at the following address: 1001 Louisiana Street,
Suite 1000, Houston, Texas 77002, Attention: Investor Relations or by
phone at (713) 369-9490 or by email at km_ir@kindermorgan.com.
NO OFFER OR SOLICITATION
This communication shall not constitute an offer to sell or the
solicitation of an offer to sell or the solicitation of an offer to buy
any securities, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any
such jurisdiction. No offer of securities shall be made except by
means of a prospectus meeting the requirements of Section 10 of the
Securities Act of 1933, as amended.
PARTICIPANTS IN THE SOLICITATION
KMI, KMP, KMR and EPB, and their respective directors and executive
officers, may be deemed to be participants in the solicitation of
proxies in respect of the Proposed Transactions. Information regarding
the directors and executive officers of KMI is contained in KMI’s Form
10-K for the year ended December 31, 2013, and its proxy statement filed
on April 9, 2014, each of which has been filed with the SEC. Information
regarding the directors and executive officers of KMP’s general partner
and KMR, the delegate of KMP’s general partner, is contained in KMP’s
Form 10-K for the year ended December 31, 2013, which has been filed
with the SEC. Information regarding the directors and executive officers
of KMR is contained in KMR’s Form 10-K for the year ended December 31,
2013, which has been filed with the SEC. Information regarding the
directors and executive officers of EPB’s general partner is contained
in EPB’s Form 10-K for the year ended December 31, 2013, which has been
filed with the SEC.
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Kinder Morgan, Inc. and Subsidiaries
Preliminary Cash
Available to Pay Dividends
(Non-GAAP, Unaudited)
(In
millions, except per share amounts)
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|
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Three Months Ended September 30,
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Nine Months Ended September 30,
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2014
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2013
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2014
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2013
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KMP distributions to us
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|
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|
|
|
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From ownership of general partner interest (1)
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$
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489
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$
|
450
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$
|
1,436
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|
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$
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1,294
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On KMP units owned by us (2)
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39
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|
38
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115
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110
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On KMR shares owned by us (3)
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23
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21
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69
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61
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Total KMP distributions to us
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551
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509
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1,620
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1,465
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EPB distributions to us
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From ownership of general partner interest (4)
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59
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55
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174
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155
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On EPB units owned by us (5)
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61
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59
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180
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172
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Total EPB distributions to us
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120
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114
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354
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327
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Cash generated from KMP and EPB
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671
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623
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1,974
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1,792
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Cash generated from other assets (6)
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57
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104
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|
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215
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291
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Total cash generated
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728
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727
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2,189
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2,083
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General and administrative expenses and other (7)
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(8
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)
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(12
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)
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(26
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)
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(41
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)
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Interest expense
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(157
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)
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(159
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)
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(422
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)
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|
|
(425
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)
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Cash available to pay dividends before taxes
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563
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|
|
|
556
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|
|
|
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1,741
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|
|
1,617
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|
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|
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|
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Taxes (8)
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|
(128
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)
|
|
|
(132
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)
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|
|
|
(401
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)
|
|
|
(386
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)
|
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Cash available to pay dividends
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$
|
435
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$
|
424
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|
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$
|
1,340
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$
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1,231
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Weighted Average Shares Outstanding for Dividends (9)
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1,036
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|
|
1,042
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|
|
|
|
1,035
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|
|
|
1,039
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Cash Available Per Average Share Outstanding
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$
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0.42
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$
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0.41
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$
|
1.29
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$
|
1.18
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Declared Dividend
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$
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0.44
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$
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0.41
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$
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1.29
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$
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1.19
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Notes
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(1)
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Based on (i) Kinder Morgan Energy Partners, L.P. (KMP) distributions
of $1.40 and $4.17 per common unit declared for the three and nine
months ended September 30, 2014, respectively, and $1.35 and $3.97
per common unit declared for the three and nine months ended
September 30, 2013, respectively; (ii) 454 million and 381 million
aggregate common units, Class B units and i-units (collectively KMP
units) outstanding as of April 30, 2014, and April 29, 2013,
respectively; (iii) 462 million and 433 million aggregate KMP units
outstanding as of July 31, 2014, and 2013, respectively; (iv) 466
million and 438 million aggregate KMP units estimated to be
outstanding as of October 31, 2014, and outstanding as of October
31, 2013, respectively; (v) waived incentive distributions of $33
million and $25 million for the three months ended September 30,
2014, and 2013, respectively, and $99 million and $54 million for
the nine months ended September 30, 2014, and 2013, respectively,
related to certain KMP acquisitions. In addition, we as the general
partner of KMP, agreed to waive a portion of our future incentive
distributions amounts equal to $34 million for our fourth quarter in
2014, $139 million for 2015, $116 million for 2016, $105 million for
2017, and annual amounts thereafter decreasing by $5 million per
year from the 2017 level related to certain KMP acquisitions.
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(2)
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Based on 28 million KMP units estimated to be owned by us as of
October 31, 2014, and owned by us as of July 31, 2014, April 30,
2014, October 31, 2013, July 31, 2013, and April 29, 2013,
multiplied by the KMP per unit distribution declared, as outlined in
footnote (1) above.
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(3)
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Assumes that we sold the Kinder Morgan Management, LLC (KMR) shares
that we estimate to be received as distributions for the three and
nine months ended September 30, 2014, and received as distributions
for the three and nine months ended September 30, 2013,
respectively. We did not sell any KMR shares in the first nine
months of 2014 or 2013.
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(4)
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Based on (i) El Paso Pipelines Partners, L.P. (EPB) distributions of
$0.65 and $1.95 per common unit declared for the three and nine
months ended September 30, 2014, respectively, and $0.65 and $1.90
per common unit declared for the three and nine months ended
September 30, 2013, respectively; (ii) 219 million and 216 million
common units outstanding as of April 30, 2014, and April 29, 2013,
respectively; (iii) 231 million and 218 million common units
outstanding as of July 31, 2014, and 2013, respectively; and (iv)
233 million and 218 million common units estimated to be outstanding
as of October 31, 2014, and outstanding as of October 31, 2013,
respectively.
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(5)
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Based on 93 million EPB units estimated to be owned by us as of
October 31, 2014, and owned by us as of July 31, 2014, and 90
million EPB units owned by us as of April 30, 2014, October 31,
2013, July 31, 2013, and April 29, 2013, multiplied by the EPB per
unit distribution declared, as outlined in footnote (4) above.
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(6)
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Represents cash available from former El Paso Corporation (EP)
assets that remain at KMI, including our investments in Gulf LNG,
Ruby and Young Gas Storage Company, Ltd for the periods presented
prior to their drop-down to EPB and EPNG and El Paso midstream
assets for the period presented prior to their drop-down to KMP, and
our 20% interest in Natural Gas Pipeline Company of America LLC, net
of general and administrative expenses related to KMI's EP assets.
Amounts include our share of pre-tax earnings, plus depreciation,
depletion and amortization, and less cash taxes and sustaining
capital expenditures from equity investees.
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(7)
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Represents corporate general and administrative expenses, corporate
sustaining capital expenditures, and other income and expense.
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(8)
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Amounts were determined based on the income and expenses included in
the table, other deductions related to the income included, and the
effect of net operating loss carryforwards on cash available to pay
dividends of $125 million and $375 million for the three and nine
months ended September 30, 2014, respectively, and $75 million and
$225 million for the three and nine months ended September 30, 2013,
respectively.
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(9)
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Includes weighted average common stock outstanding and unvested
restricted stock awards issued to management employees that contain
rights to dividends.
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Kinder Morgan, Inc. and Subsidiaries
Preliminary
Consolidated Statements of Income
(Unaudited)
(In
millions, except per share amounts)
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Three Months Ended September 30,
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Nine Months Ended September 30,
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2014
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2013
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2014
|
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2013
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Revenue
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$
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4,291
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$
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3,756
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$
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12,275
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$
|
10,198
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Costs, expenses and other
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Operating expenses
|
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2,199
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|
|
|
2,060
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|
|
|
|
6,475
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|
|
|
5,346
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|
Depreciation, depletion and amortization
|
|
|
|
520
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|
|
|
467
|
|
|
|
|
1,518
|
|
|
|
1,327
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|
General and administrative
|
|
|
|
135
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|
|
|
158
|
|
|
|
|
461
|
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|
|
481
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|
|
Taxes, other than income taxes
|
|
|
|
105
|
|
|
|
95
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|
|
|
|
326
|
|
|
|
295
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|
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Other expense (income)
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|
|
-
|
|
|
|
(65
|
)
|
|
|
|
3
|
|
|
|
(81
|
)
|
|
|
|
|
|
2,959
|
|
|
|
2,715
|
|
|
|
|
8,783
|
|
|
|
7,368
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Operating income
|
|
|
|
1,332
|
|
|
|
1,041
|
|
|
|
|
3,492
|
|
|
|
2,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Other income (expense)
|
|
|
|
|
|
|
|
|
|
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|
Earnings from equity investments
|
|
|
|
107
|
|
|
|
100
|
|
|
|
|
306
|
|
|
|
294
|
|
|
Amortization of excess cost of equity investments
|
|
|
|
(12
|
)
|
|
|
(11
|
)
|
|
|
|
(33
|
)
|
|
|
(29
|
)
|
|
Interest, net
|
|
|
|
(432
|
)
|
|
|
(418
|
)
|
|
|
|
(1,320
|
)
|
|
|
(1,247
|
)
|
|
Gain on remeasurement of net assets to fair value
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
558
|
|
|
(Loss) gain on sale of investments in Express
|
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
|
-
|
|
|
|
224
|
|
|
Other, net
|
|
|
|
30
|
|
|
|
11
|
|
|
|
|
56
|
|
|
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes
|
|
|
|
1,025
|
|
|
|
722
|
|
|
|
|
2,501
|
|
|
|
2,665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
(246
|
)
|
|
|
(171
|
)
|
|
|
|
(624
|
)
|
|
|
(675
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
|
779
|
|
|
|
551
|
|
|
|
|
1,877
|
|
|
|
1,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of tax
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
779
|
|
|
|
551
|
|
|
|
|
1,877
|
|
|
|
1,988
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interests
|
|
|
|
(450
|
)
|
|
|
(265
|
)
|
|
|
|
(977
|
)
|
|
|
(1,133
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to KMI
|
|
|
$
|
329
|
|
|
$
|
286
|
|
|
|
$
|
900
|
|
|
$
|
855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class P Shares
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted Earnings Per Common Share from Continuing
Operations
|
|
|
$
|
0.32
|
|
|
$
|
0.27
|
|
|
|
$
|
0.87
|
|
|
$
|
0.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Weighted Average Number of Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
Class P Shares
|
|
|
|
1,028
|
|
|
|
1,036
|
|
|
|
|
1,028
|
|
|
|
1,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Weighted Average Number of Shares Outstanding (1)
|
|
|
|
|
|
|
|
|
|
|
|
Class P Shares
|
|
|
|
1,028
|
|
|
|
1,036
|
|
|
|
|
1,028
|
|
|
|
1,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Declared dividend per common share
|
|
|
$
|
0.44
|
|
|
$
|
0.41
|
|
|
|
$
|
1.29
|
|
|
$
|
1.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
|
|
|
|
|
|
|
|
|
|
|
|
(1) Outstanding KMI warrants and convertible preferred securities
were anti-dilutive during the periods presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
Kinder Morgan, Inc. and Subsidiaries
Preliminary
Reconciliation of Cash Available to Pay Dividends from Income from
Continuing Operations
(Unaudited)
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
Income from continuing operations (1)
|
|
|
$
|
779
|
|
|
$
|
551
|
|
|
|
$
|
1,877
|
|
|
$
|
1,990
|
|
|
Depreciation, depletion and amortization (1)
|
|
|
|
520
|
|
|
|
467
|
|
|
|
|
1,518
|
|
|
|
1,327
|
|
|
Amortization of excess cost of equity investments (1)
|
|
|
|
12
|
|
|
|
11
|
|
|
|
|
33
|
|
|
|
29
|
|
|
Earnings from equity investments (1)
|
|
|
|
(107
|
)
|
|
|
(100
|
)
|
|
|
|
(306
|
)
|
|
|
(294
|
)
|
|
Distributions from equity investments
|
|
|
|
110
|
|
|
|
104
|
|
|
|
|
294
|
|
|
|
303
|
|
|
Distributions from equity investments in excess of cumulative
earnings
|
|
|
|
48
|
|
|
|
39
|
|
|
|
|
138
|
|
|
|
117
|
|
|
Difference between equity investment distributable cash flow and
distributions received (2)
|
|
|
|
37
|
|
|
|
54
|
|
|
|
|
151
|
|
|
|
136
|
|
|
KMP certain items (3)
|
|
|
|
(230
|
)
|
|
|
(33
|
)
|
|
|
|
(167
|
)
|
|
|
(618
|
)
|
|
KMI certain items
|
|
|
|
(22
|
)
|
|
|
7
|
|
|
|
|
(20
|
)
|
|
|
8
|
|
|
Difference between cash available and book taxes
|
|
|
|
113
|
|
|
|
39
|
|
|
|
|
193
|
|
|
|
259
|
|
|
Difference between cash and book interest expense for KMI
|
|
|
|
(41
|
)
|
|
|
(28
|
)
|
|
|
|
(31
|
)
|
|
|
(27
|
)
|
|
Sustaining capital expenditures (4)
|
|
|
|
(144
|
)
|
|
|
(105
|
)
|
|
|
|
(353
|
)
|
|
|
(257
|
)
|
|
KMP declared distribution on its limited partner units owned by the
public (5)
|
|
|
|
(590
|
)
|
|
|
(533
|
)
|
|
|
|
(1,736
|
)
|
|
|
(1,487
|
)
|
|
EPB declared distribution on its limited partner units owned by the
public (6)
|
|
|
|
(91
|
)
|
|
|
(83
|
)
|
|
|
|
(264
|
)
|
|
|
(241
|
)
|
|
Other (7)
|
|
|
|
41
|
|
|
|
34
|
|
|
|
|
13
|
|
|
|
(14
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash available to pay dividends
|
|
|
$
|
435
|
|
|
$
|
424
|
|
|
|
$
|
1,340
|
|
|
$
|
1,231
|
|
|
|
|
|
Notes
|
|
|
(1)
|
|
Consists of the corresponding line items in the preceding Unaudited
Preliminary Consolidated Statements of Income.
|
|
(2)
|
|
Consists of the difference between cash available for distributions
and the distributions received from our equity investments.
|
|
(3)
|
|
Consists of items such as hedge ineffectiveness, certain legal and
environmental reserves, gain/loss on sale, insurance proceeds from
casualty losses, and asset acquisition and/or disposition expenses.
Three and nine months 2014 includes $198 million of earnings from
the early termination of a long-term natural gas transportation
contract. Nine months 2013 includes (i) a $558 million gain from the
remeasurement of KMP's previously held 50% equity interest in Eagle
Ford to fair value; (ii) $177 million of expense associated with
adjustments to legal liabilities related to both transportation rate
case and environmental matters; and (iii) a $140 million, net of
tax, gain on the sale of KMP's investments in Express. Nine month
2013 amount excludes an $84 million KMP certain item for book taxes
on the gain on sale of investments in the Express pipeline system,
which is reflected in this reconciliation in the line item
"Difference between cash available and book taxes." For more
information, see KMP’s 3rd Quarter 2014 Earnings Release filed on
Form 8-K with the SEC on October 15, 2014.
|
|
(4)
|
|
We define sustaining capital expenditures as capital expenditures
that do not expand the throughput or capacity of an asset.
|
|
(5)
|
|
Declared distribution multiplied by limited partner units estimated
to be or actually outstanding on the applicable record date less
units owned by us. Includes distributions on KMR shares. KMP must
generate the cash to cover the distributions on the KMR shares, but
those distributions are paid in additional shares and KMP retains
the cash. We do not have access to that cash.
|
|
(6)
|
|
Declared distribution multiplied by EPB limited partner units
outstanding on the applicable record date less units owned by us.
|
|
(7)
|
|
Consists of items such as timing and other differences between
earnings and cash, KMP’s and EPB's cash flow in excess of their
distributions, non-cash amortization of debt fair value adjustments.
Also, nine months 2013 amount includes certain items of $5 million
related to EPB.
|
|
|
Kinder Morgan, Inc. and Subsidiaries
Preliminary
Consolidated Balance Sheets
(Unaudited)
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
|
December 31,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Cash and cash equivalents - KMI
|
|
|
$
|
56
|
|
|
|
|
$
|
116
|
|
|
Cash and cash equivalents - KMP
|
|
|
|
268
|
|
|
|
|
|
404
|
|
|
Cash and cash equivalents - EPB
|
|
|
|
148
|
|
|
|
|
|
78
|
|
|
Other current assets
|
|
|
|
3,014
|
|
|
|
|
|
3,270
|
|
|
Property, plant and equipment, net - KMI
|
|
|
|
2,461
|
|
|
|
|
|
2,563
|
|
|
Property, plant and equipment, net - KMP
|
|
|
|
29,842
|
|
|
|
|
|
27,405
|
|
|
Property, plant and equipment, net - EPB
|
|
|
|
5,797
|
|
|
|
|
|
5,879
|
|
|
Investments
|
|
|
|
6,041
|
|
|
|
|
|
5,951
|
|
|
Goodwill - KMI
|
|
|
|
17,910
|
|
|
|
|
|
17,935
|
|
|
Goodwill - KMP
|
|
|
|
6,710
|
|
|
|
|
|
6,547
|
|
|
Goodwill - EPB
|
|
|
|
22
|
|
|
|
|
|
22
|
|
|
Deferred charges and other assets
|
|
|
|
4,849
|
|
|
|
|
|
5,015
|
|
|
TOTAL ASSETS
|
|
|
$
|
77,118
|
|
|
|
|
$
|
75,185
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Short-term debt - KMI
|
|
|
$
|
1,307
|
|
|
|
|
$
|
725
|
|
|
Short-term debt - KMP
|
|
|
|
959
|
|
|
|
|
|
1,504
|
|
|
Short-term debt - EPB
|
|
|
|
41
|
|
|
|
|
|
77
|
|
|
Other current liabilities
|
|
|
|
3,778
|
|
|
|
|
|
3,769
|
|
|
Long-term debt - KMI
|
|
|
|
8,086
|
|
|
|
|
|
9,221
|
|
|
Long-term debt - KMP
|
|
|
|
20,810
|
|
|
|
|
|
18,410
|
|
|
Long term debt - EPB
|
|
|
|
4,749
|
|
|
|
|
|
4,179
|
|
|
Preferred interest in general partner of KMP
|
|
|
|
100
|
|
|
|
|
|
100
|
|
|
Debt fair value adjustments
|
|
|
|
1,891
|
|
|
|
|
|
1,977
|
|
|
Deferred income taxes
|
|
|
|
4,605
|
|
|
|
|
|
4,651
|
|
|
Other
|
|
|
|
2,023
|
|
|
|
|
|
2,287
|
|
|
Total liabilities
|
|
|
|
48,349
|
|
|
|
|
|
46,900
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity
|
|
|
|
|
|
|
|
|
Accumulated other comprehensive loss
|
|
|
|
(50
|
)
|
|
|
|
|
(24
|
)
|
|
Other shareholders' equity
|
|
|
|
12,595
|
|
|
|
|
|
13,117
|
|
|
Total KMI equity
|
|
|
|
12,545
|
|
|
|
|
|
13,093
|
|
|
Noncontrolling interests
|
|
|
|
16,224
|
|
|
|
|
|
15,192
|
|
|
Total shareholders' equity
|
|
|
|
28,769
|
|
|
|
|
|
28,285
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
$
|
77,118
|
|
|
|
|
$
|
75,185
|
|
|
|
|
|
|
|
|
|
|
|
Debt, net of cash
|
|
|
|
|
|
|
|
|
KMI (1)
|
|
|
$
|
9,337
|
|
|
|
|
$
|
9,830
|
|
|
KMP
|
|
|
|
21,501
|
|
|
|
|
|
19,510
|
|
|
EPB
|
|
|
|
4,642
|
|
|
|
|
|
4,178
|
|
|
Total Consolidated Debt
|
|
|
$
|
35,480
|
|
|
|
|
$
|
33,518
|
|
|
|
|
|
|
|
|
|
|
|
Notes
|
|
|
|
|
|
|
|
|
(1) Amounts exclude the preferred interest in general partner of
KMP.
|
