HOUSTON--(BUSINESS WIRE)--Kinder Morgan, Inc. (NYSE: KMI) today announced that its board of
directors approved an increase in its quarterly cash dividend to $0.48
($1.92 annualized) payable on May 15, 2015, to shareholders of record as
of the close of business on April 30, 2015. This represents a 14 percent
increase over the first quarter 2014 dividend of $0.42 per share ($1.68
annualized) and is up from $0.45 per share ($1.80 annualized) for the
fourth quarter of 2014.
Chairman and CEO Richard D. Kinder said, “Despite some headwinds due
primarily to a rough commodity pricing environment, KMI had a good first
quarter and will increase its dividend to $0.48 per share, and we remain
on track to meet our full-year dividend target of $2.00 per share. Our
first quarter performance demonstrated once again that our large
diversified portfolio of mostly fee-based assets can produce good
results even in tumultuous market conditions. We earned distributable
cash flow before certain items of $0.58 per share for the first quarter,
which equates to coverage in excess of our dividends of $206 million.
Our five business segments produced $1.912 billion in segment earnings
before DD&A and certain items, in line with the first quarter 2014,
primarily driven by increases in our Products Pipelines and Terminals
segments offsetting a decline in our CO2 segment. We also
completed the approximately $3.1 billion acquisition of Hiland Partners
on Feb. 13, 2015. This transaction establishes a premier midstream
platform for us in the Bakken, with a significant amount of acreage
dedicated under long-term gathering agreements with some of the Bakken’s
largest and most successful producers.
“Our current project backlog of expansion and joint venture investments
is $18.3 billion. Beginning this quarter, our project backlog includes
capitalized overhead (which added approximately $850 million) to more
accurately reflect the total investment in our projects. Without this
adjustment, our project backlog decreased by approximately $200 million
from the fourth quarter earnings release. Since the fourth quarter
earnings release, we have placed nearly $400 million of completed
projects into service, removed approximately $900 million in projects
(primarily in the CO2 segment as a result of projects being
delayed beyond the time horizon of our five-year backlog due to lower
commodity prices) and added approximately $1.1 billion driven by new
projects. Projects in the backlog have a high certainty of completion
and drive future growth at the company across all of our business
segments.”
KMI reported first quarter distributable cash flow before certain items
of $1.242 billion versus $573 million for the comparable period in 2014.
This increase is primarily attributable to the KMI merger transactions
completed in November 2014. Distributable cash flow per share before
certain items was $0.58 compared to $0.55 for the first quarter last
year. First quarter net income before certain items was $445 million
compared to $624 million for the same period in 2014. Certain items
after tax in the first quarter totaled a net gain of $14 million
compared to a net loss of $23 million for the same period last year. Net
income was $459 million compared to $601 million for the first quarter
last year. The decrease in net income before certain items was driven by
higher interest expense, book taxes and DD&A expense.
Overview of Business Segments
The Natural Gas Pipelines business produced first quarter segment
earnings before DD&A and certain items of $1.087 billion, up 1 percent
from $1.076 billion for the same period last year. Natural Gas Pipelines
is on track to exceed its published annual budget of 1 percent growth.
“Growth in this segment compared to the first quarter last year was led
by contributions from the Hiland acquisition, strong performance at El
Paso Natural Gas pipeline due to strong transport revenue and good
results at our South Texas Copano midstream assets,” Kinder said. “First
quarter growth was somewhat offset by lower commodity prices affecting
certain of our midstream gathering and processing assets. Earnings were
also negatively impacted at Tennessee Gas Pipeline (TGP) by milder
weather compared to the extremely cold weather experienced during the
first quarter of 2014, at Kinder Morgan Louisiana pipeline as a result
of a customer contract buyout and at KinderHawk due to a restructured
contract.”
Natural gas transport volumes were up 6 percent compared to the first
quarter last year driven by a number of expansion projects that came
online during 2014, primarily at TGP, as well as significantly higher
power generation load on Southern Natural Gas pipeline due to lower
natural gas prices. Sales volumes on the Texas Intrastate system were
also up by 6 percent compared to the first quarter last year.
Natural gas continues to be the fuel of choice for America’s future
energy needs, and certain industry experts are projecting gas demand
increases of about 40 percent to nearly 110 billion cubic feet per day
(Bcf/d) over the next 10 years. Since Dec. 1, 2013, KMI has entered into
new and pending firm transport capacity commitments totaling 7.3 Bcf/d,
and its pipelines currently move about one-third of the natural gas
consumed in America. Future opportunities include the need for more
capacity in the Northeast, demand for gas-fired power generation, LNG
exports and exports to Mexico. KMI currently has a backlog of natural
gas projects of approximately $5.3 billion.
The CO2 business produced first quarter segment
earnings before DD&A and certain items of $281 million, down from
$366 million for the same period in 2014. The CO2
business is expected to be below its annual budget of an 8 percent
decline from 2014 due to lower commodity prices.
“Lower commodity prices once again impacted earnings overall, but our
SACROC Unit continued to generate strong production,” Kinder said.
“SACROC reported record quarterly oil production in the first quarter,
averaging 35.7 thousand barrels per day (MBbl/d), up 13 percent from the
first quarter last year, and NGL sales volumes of 19.5 MBbl/d, up 3
percent from the first quarter last year, at our Snyder Gas Plant. We
also had record monthly throughput in March on our Wink Pipeline, which
delivered 136 MBbl/d of crude from the Permian Basin to a refinery in El
Paso, Texas. In addition, we were able to offset some of the impact from
lower commodity prices by generating various cost savings across our CO2
business. While CO2 volumes declined versus the first
quarter of 2014, they were only slightly below plan for the quarter. CO2
demand has remained relatively stable, but is not currently growing due
to customer capital constraints related to existing market conditions.”
Combined gross oil production volumes averaged 59.7 MBbl/d for the first
quarter, up 6 percent from 56.1 MBbl/d versus the same period last year.
Oil production net to Kinder Morgan was up 9 percent compared to the
same period last year. SACROC’s first quarter production was
significantly above both first quarter 2014 results and plan, and Yates
produced solid results but was slightly below both first quarter 2014
results and plan. First quarter Katz and Goldsmith production was above
the same period last year, but well below plan. The average West Texas
Intermediate (WTI) crude oil price for the first quarter was $48.63 per
barrel versus $98.68 for the first quarter of 2014. Kinder Morgan’s 2015
budget assumed an average WTI crude oil price of approximately $70 per
barrel. The commodity impact on the CO2 segment in the first
quarter was consistent with the sensitivities announced at the beginning
of the year, that every $1 per barrel change in the average WTI crude
oil price will impact the CO2 segment’s distributable cash
flow by approximately $7 million.
The Products Pipelines business produced first quarter segment
earnings before DD&A and certain items of $245 million, up 20 percent
from $204 million for the comparable period in 2014. Products Pipelines
expects to exceed its published annual budget of 29 percent growth.
“Growth in this segment compared to the first quarter of 2014 was driven
by higher volumes on the Kinder Morgan Crude and Condensate Pipeline
(KMCC), the startup of the petroleum condensate processing facility
along the Houston Ship Channel, which began service in March, higher
volumes and margins on our Pacific system, improved results on Cochin
resulting from the July 2014 completion of the reversal project and
contributions from the Double H Pipeline, which was part of our Hiland
acquisition,” Kinder said. “First quarter earnings were negatively
impacted by lower transmix results due to unfavorable inventory pricing.”
Total refined products volumes were up 5.6 percent for the first quarter
versus the same period in 2014. Segment gasoline volumes (including
transported ethanol on the Central Florida Pipeline) were up 7.4 percent
compared to the first quarter of 2014, which included a nice increase on
Plantation. NGL volumes were up 38 percent compared to the same period
last year due to completion of the reversal project on Cochin.
Condensate volumes more than tripled versus the first quarter last year
primarily due to the continued ramp up of volumes on KMCC.
Products Pipelines handled about 10.4 million barrels of biofuels
(ethanol and biodiesel) in the first quarter, up almost 2 percent
compared to the same period last year. This segment continues to make
investments in assets across its operations to accommodate more biofuels.
The Terminals business produced first quarter segment earnings
before DD&A and certain items of $264 million, up 16 percent from $228
million for the same period in 2014. The Terminals business expects to
meet its published annual budget of 20 percent growth.
“Approximately 70 percent of the growth in the first quarter was organic
versus the same period last year, with the remainder coming from
acquisitions,” Kinder said. “The increase in first quarter earnings was
led by strong performance at our liquids terminals, driven by various
expansions across our network. The Jones Act tanker acquisitions also
contributed significantly to growth in this segment, along with
contributions from the recently acquired Vopak terminals. Earnings were
impacted by a softening of the domestic steel market, with volumes down
24 percent compared to the first quarter of 2014. Continued weakness in
global coal markets also impacted the segment, which saw coal export
volumes decline 36 percent versus the same period last year. However,
the impact on earnings was offset by the long-term minimum tonnage
commitments the company has with its customers.”
For the first quarter, Terminals and Products Pipelines combined handled
25.9 million barrels of ethanol, down from 26.2 million barrels for the
same period last year. The slight decline reflects the company’s
previously announced sale of certain smaller terminal facilities to
Watco Companies in exchange for an incremental equity interest in Watco.
KMI currently handles approximately one-third of the ethanol used in the
United States.
Kinder Morgan Canada produced first quarter segment earnings
before DD&A and certain items of $41 million versus the $48 million it
reported for the same period in 2014. Demand for capacity remained high
on the Trans Mountain pipeline system in the first quarter, with higher
mainline throughput into Washington state and strong activity at the
Westridge Terminal resulting in a 10 percent throughput increase
compared to the same period last year. The earnings decline was
primarily due to an unfavorable foreign exchange rate, as the Canadian
dollar declined in value by approximately 11 percent since the first
quarter of 2014. Kinder Morgan Canada expects to come in below its
published annual budget of 1 percent growth because of expected
continued weakness in the Canadian dollar.
2015 Outlook
KMI expects to declare dividends of $2.00 per share for 2015, an
approximately 15 percent increase over the 2014 declared dividend of
$1.74 per share. Our budgeted cash coverage in excess of our declared
dividends is $654 million and is based on an assumed average WTI crude
oil price of approximately $70 per barrel and a Henry Hub natural gas
price of $3.80 per MMBtu in 2015. The overwhelming majority of cash
generated by KMI’s assets is fee based and is not sensitive to commodity
prices. KMI does have some commodity price sensitivity, primarily in its
CO2 segment, and hedges the majority of its next 12 months of
oil production to minimize this sensitivity. For 2015, the company
estimates that every $1 per barrel change in average WTI crude oil price
will impact Kinder Morgan’s distributable cash flow by approximately $10
million, and each $0.10 per MMBtu change in the average price of natural
gas will impact distributable cash flow by approximately $3 million.
Even adjusting for current commodity prices, the company expects to have
significant excess coverage in 2015.
Other News (Note: project costs now include
capitalized overhead, consistent with the explanation in the backlog
paragraph of this release.)
Natural Gas Pipelines
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The company closed its acquisition of Hiland Partners in February for
a total purchase price of approximately $3.1 billion, including the
assumption of approximately $1 billion of debt (net of approximately
$0.3 billion paid down immediately upon closing). Hiland’s assets are
mostly fee based and consist of crude oil gathering and transportation
pipelines, and gas gathering and processing systems primarily serving
production from the Bakken in North Dakota and Montana. The
transaction also included gathering and processing systems in the
Woodford shale and other areas of Oklahoma.
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In March, TGP announced it finalized anchor shippers for the market
path portion of the proposed Northeast Energy Direct (NED) Project.
Collectively, shippers have committed to over 550,000 dekatherms per
day (Dth/d) of incremental transportation capacity to move natural gas
from the prolific Marcellus Shale region to meet New England’s growing
consumer and industrial gas needs, as well as help bolster electric
reliability and lower electric costs for consumers. NED’s market path,
from Wright, New York, to Dracut, Massachusetts, and beyond, is
scalable to 1.2 Bcf/d, or ultimately 2.2 Bcf/d. Kinder Morgan remains
keenly aware of the effect that pipeline constraints have on electric
prices and reliability in the region, and has been actively involved
in working to develop a regional solution. According to ISO New
England, New Englanders paid an additional $3 billion in electricity
costs in the winter of 2013-2014 due to natural gas capacity
shortages. A project in-service date of Nov. 1, 2018, is planned,
subject to regulatory approvals. TGP is continuing to negotiate with
potential shippers for the market path, including electric
distribution companies and others, and expects to announce additional
shippers soon. TGP also continues to negotiate with potential shippers
with respect to capacity commitments for the supply path portion of
the project from Susquehanna County, Pennsylvania, to Wright, New
York. Anticipated capital required for both the market path and the
supply path is approximately $5 billion.
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Permitting continues for the full 10-train development of the proposed
Elba Liquefaction Company’s export project at Elba Island, Georgia.
Kinder Morgan expects to receive FERC approval of its certificate
application later this year. The project has already received Free
Trade Agreement (FTA) LNG export authority and an application to
export to non-FTA countries is currently pending, but it is not a
requirement for completion. At full development, the Elba Liquefaction
Project is expected to have total capacity of approximately 350
million cubic feet per day (MMcf/d) of natural gas (2.5 million tonnes
per year of LNG). KMI’s expected investment in the project (including
related KMI-owned terminal facilities) is approximately $1.3 billion.
Subject to regulatory approvals, initial LNG production is expected to
occur in 2017.
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Work continues on the Elba Express Company and Southern Natural Gas
Company expansion projects to provide 854,000 Dth/d of incremental
natural gas transportation service to support the needs of customers
in Georgia, South Carolina and northern Florida. Expansion capacity
would also serve the proposed Elba Liquefaction Project. The project
will add north-to-south transportation capacity to the existing Elba
Express Pipeline in multiple phases. The combined capital costs of the
two projects will be approximately $302 million and the first phases
are expected to be in service in June 2016.
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TGP recently filed an application for a FERC certificate for the Broad
Run Expansion Project, which includes construction of two new
compressor stations in Kanawha County, West Virginia, one new
compressor station in Davidson County, Tennessee, and one new
compressor station in Madison County, Kentucky. TGP also expects to
increase compression capacity by modifying two existing compressor
stations in Powell and Boyd counties in Kentucky. In 2014, Antero
Resources was awarded 790,000 Dth/d of long-term firm north-to-south
capacity for 15 years. The anticipated in-service date of the 200,000
Dth/d Broad Run Expansion Project is Nov. 1, 2017. The Broad Run
Flexibility Project, which is already under construction, will provide
590,000 Dth/d of firm transportation capacity on the same path and is
expected to be in service Nov. 1, 2015. The estimated capital
expenditure for both projects is approximately $786 million.
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Work continues on TGP’s approximately $205 million South System
Flexibility Project, which will provide more than 900 miles of
north-to-south transportation capacity on the TGP system from
Tennessee to South Texas and expand Kinder Morgan’s transportation
service to Mexico. An initial 150,000 Dth/d of capacity was placed in
service on Jan. 1, 2015, and the remainder of the project is expected
to be completed by December 2016. In 2014, TGP awarded a binding
contract for all of the 500,000 Dth/d of capacity to MexGas Supply.
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Work on TGP’s fully subscribed 500,000 Dth/d Utica Backhaul Project is
nearing completion, with final modifications to compressor stations on
the TGP Line 500 system and pipeline upgrading slated to be completed
by the third quarter of 2015. Initial capacity sales began April 1,
2014. The project provides firm transportation service for Marcellus
and Utica production from receipt points as far north as
Mercer, Pennsylvania, for delivery to multiple Gulf Coast delivery
points. The estimated capital expenditure for the project is
approximately $203 million.
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TGP recently filed a FERC certificate application to transport natural
gas to the Susquehanna region of Pennsylvania as part of the proposed
approximately $156 million Susquehanna West Project. The project would
provide 145,000 Dth/d of additional capacity for one customer and
would include compressor and pipeline modifications and looping in
Pennsylvania. Subject to regulatory approvals, construction is planned
to begin in January 2017, and a Nov. 1, 2017, in-service date is
anticipated.
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Work continues on TGP’s fully subscribed Marcellus to Milford project,
which would provide 135,000 Dth/d of long-term expansion capacity from
the Marcellus supply basin to TGP’s interconnection with Columbia Gas
Transmission in Pike County, Pennsylvania. The project includes
pipeline looping and compressor station upgrades in New Jersey and
Pennsylvania. The approximately $141 million project is expected to be
in service in June 2018, subject to regulatory approvals, and is
supported by long-term agreements with three customers.
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TGP has contracted with a major merchant power plant developer to
provide 180,000 Dth/d of firm transportation capacity for a planned
power plant project in Pennsylvania. An open season for the
approximately $96 million project closed on April 1, and TGP plans a
FERC certificate application later this month. An in-service date of
June 1, 2018, is planned.
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Work continues on TGP’s proposed approximately $90 million Connecticut
Expansion Project. The fully subscribed project will provide 72,000
Dth/d of additional long-term capacity for three natural gas utility
customers. Subject to regulatory approvals, the project is expected to
be in service in November 2016.
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Kinder Morgan Louisiana Pipeline (KMLP) has entered into a precedent
agreement with Cheniere’s Sabine Pass Liquefaction, LLC that will
further upgrade its existing pipeline system in Louisiana. The
approximately $144 million expansion project will increase KMLP’s
east-to-west reconfigured system capacity by 600,000 Dth/d to serve
Cheniere’s Train 5 at the Sabine Pass Liquefaction facility in Cameron
Parish, Louisiana. The precedent agreement also commits Cheniere to
take an additional 600,000 Dth/d of capacity on KMLP to serve Train 6
at the facility if that train reaches timely final investment
decision. A Train 6 commitment would increase the project capital to
$215 million. This project is an addition to the previously announced
KMLP expansion project to serve Magnolia LNG in Lake Charles,
Louisiana. Pending regulatory approvals and Cheniere’s final
investment decision, the portion of the project serving Train 5 is
anticipated to be placed in service in late 2019.
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Natural Gas Pipeline Company of America (NGPL) has executed binding
agreements with Antero Resources, Nicor Gas, North Shore Gas and
Occidental Energy Marketing for incremental firm transportation
service on its Gulf Coast mainline system from the Rockies Express
Pipeline interconnection in Moultrie County, Illinois, to points north
on NGPL’s pipeline system. These commitments will support the first
phase of the Chicago Market Expansion project, which will increase
NGPL’s capacity by 238,000 Dth/d and provide transportation service to
markets in proximity to Chicago, Illinois. The contracts are for an
average term of 11 years. NGPL intends to file for a certificate
application with the FERC in June and the project is expected to be in
service in November 2016 pending regulatory approvals. Kinder Morgan
owns a 20 percent interest in and operates NGPL.
CO2
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Construction is more than halfway complete at Kinder Morgan’s
approximately $344 million Cow Canyon expansion project in
southwestern Colorado. This expansion is anticipated to increase CO2
production in the Cow Canyon area of the McElmo Dome source field by
200 MMcf/d. The project is on schedule for 100 MMcf/d of CO2 to
come online by July 2015, with the remaining 100 MMcf/d expected to be
in service by the end of 2015.
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Work continues on the approximately $200 million northern portion of
the Cortez Pipeline expansion, which will increase CO2
transportation capacity from 1.35 Bcf/d to 1.5 Bcf/d. Initial service
is expected to begin this summer, with the northern expansion
completed by year end. Due to significantly lower commodity prices,
the southern expansion has been delayed. The Cortez Pipeline
transports CO2 from southwestern Colorado to eastern New
Mexico and West Texas for use in enhanced oil recovery projects.
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Kinder Morgan continues to move forward on the Tall Cotton Field pilot
project in Gaines County, Texas. The approximately $100 million
project is the industry’s first greenfield Residual Oil Zone CO2
project and encompasses 180 acres, with potential additional
development, assuming success of this project. The company initiated CO2
injection in Tall Cotton in November 2014 and first oil response is
now expected in the third quarter of this year.
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Due to current market conditions related to the significant decline in
oil prices, KMI has postponed its planned development of the St. Johns
CO2 source field, the associated construction of the Lobos
Pipeline and expansion of the southern portion of the Cortez Pipeline.
Products Pipelines
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Stakeholder outreach and permitting activities are underway for the
company’s proposed Palmetto Pipeline, which will move gasoline, diesel
and ethanol from Louisiana, Mississippi and South Carolina to points
in South Carolina, Georgia and Florida. The approximately $1 billion
project (KMI investment net of partner interest is $824 million) has a
design capacity of 167,000 barrels per day (bpd) and will consist of a
segment of expansion capacity on the Plantation pipeline
that Palmetto will lease from Plantation Pipe Line Company, and a new
360-mile pipeline to be built from Belton, South Carolina, to
Jacksonville, Florida. The company anticipates an in-service date of
July 2017, pending regulatory approvals.
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Work continues on the company’s approximately $517 million Utopia East
pipeline. As previously announced by NOVA Chemicals Corporation, NOVA
has executed a long-term transportation agreement with Kinder Morgan
to support the project. The Utopia East pipeline will have an initial
design capacity of 50,000 bpd, expandable to more than 75,000 bpd. The
new pipeline will originate in Harrison County, Ohio, and connect with
Kinder Morgan’s existing pipeline and facilities in Fulton County,
Ohio, transporting ethane and ethane-propane mixtures eastward to
Windsor, Ontario, Canada. Subject to the receipt of permitting and
regulatory approvals, the project is expected to be in service by
early 2018.
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The first 50,000 bpd unit of Kinder Morgan’s new approximately $400
million petroleum condensate processing facility along the Houston
Ship Channel began operations this quarter, producing specification
material in March 2015. A second 50,000 bpd splitter unit is expected
to begin service in July of this year. The 100,000 bpd project is
supported by a long-term, fee-based agreement with BP North America.
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Kinder Morgan continues to develop its proposed Utica Marcellus Texas
Pipeline, which will provide connectivity to major processing and
fractionation hubs in the basin and terminate in Mont Belvieu, Texas.
The pipeline will have a maximum design capacity of 375,000 bpd for
transporting natural gas liquids and discussions are ongoing with
potential shippers. The project involves the abandonment and
conversion of approximately 964 miles of natural gas service on TGP,
the construction of approximately 200 miles of new pipeline from
Louisiana to Texas, and approximately 80 miles of new laterals in
Ohio. Subject to customer commitments and regulatory approvals, the
pipeline is expected to be in service in 2018.
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KMCC continues to benefit from strong Eagle Ford crude and condensate
production and plans to expand system capacity to 360,000 bpd. It
currently has long-term commitments for over 90 percent of the
existing 300,000 bpd of capacity. Multiple KMCC-related expansion
projects are in various stages of development to connect to additional
Eagle Ford supplies and Texas Gulf Coast market outlets. Projects
completed in March include the Double Eagle-KMCC interconnection, and
a tank and offloading facilities at the Gonzales Station that
facilitate transportation of crude and condensate to the Houston Ship
Channel. Including joint ventures and other projects, KMI’s
investments related to Eagle Ford crude and condensate opportunities
currently total approximately $1 billion and all are supported by
long-term customer contracts.
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As part of the Hiland transaction noted in the Natural Gas Pipelines
section, Kinder Morgan acquired the Double H Pipeline, which
transports crude oil from North Dakota to Wyoming, where it delivers
to local markets and interconnects with the Pony Express Pipeline for
further transportation to Cushing, Oklahoma. The 485-mile pipeline was
placed in service in February of this year and has an initial capacity
of approximately 84,000 bpd, with contracts for approximately 80,000
bpd. Construction has begun on an expansion project for additional
pumping capacity, which will increase the total long-haul capacity to
approximately 108,000 bpd. Additionally, a new connection to bring
short-haul volumes to the system is under construction at Douglas,
Wyoming, and is expected to be in service in the second quarter of
2015.
Terminals
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In March, Kinder Morgan announced a new 50-50 joint venture with
Keyera Corp. to build a new crude oil storage terminal in Edmonton,
Alberta. The joint venture has entered into long-term, firm
take-or-pay agreements with strong, creditworthy customers to build
4.8 million barrels of crude oil storage at a new facility called the
Base Line Terminal. KMI’s investment in the joint venture terminal is
approximately CAD$372 million (includes capitalized interest and
overhead) for an initial 12 tank build out, with commissioning
expected to begin in the second half of 2017. Separately, KMI will
invest up to an additional CAD$75 million outside the joint venture
for connecting pipelines and related infrastructure for a total
project investment of approximately CAD$447 million. Following
completion of the initial tank build out, Kinder Morgan will have
nearly 12 million barrels of merchant storage in the Edmonton market.
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In February, Kinder Morgan completed its previously announced
approximately $158 million purchase of three terminals and one
undeveloped site from Royal Vopak. The transaction was immediately
accretive to KMI’s distributable cash flow upon closing. The
acquisition included a 36-acre, 1 million plus barrel storage complex
adjacent to Kinder Morgan’s Galena Park facility along the Houston
Ship Channel, two terminals in North Carolina and an undeveloped site
at Perth Amboy, New Jersey. The transaction increased Kinder Morgan’s
liquids storage capacity by more than 2.2 million barrels, with 115
tanks and added critical dock capacity along the Houston Ship Channel
and in Wilmington, North Carolina. Including this acquisition, the
company’s overall Houston Ship Channel presence will total over 45
million barrels of capacity upon completion of existing expansion
projects.
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Work continues at various Kinder Morgan facilities along the Houston
Ship Channel to help meet customers’ growing demand for refined
product storage and dock services. At the Kinder Morgan Export
Terminal along the Houston Ship Channel, construction continues on a
new ship dock to handle ocean going vessels, 12 tanks with 1.5 million
barrels of liquids storage capacity, two barge docks and cross-channel
pipelines. The approximately $189 million project is supported by a
long-term contract with a major ship channel refiner and will connect
to Kinder Morgan’s nearby Galena Park terminal. The project is now
expected to be in service in the first quarter of 2017 because of
permit receipt delays.
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The final three tanks of a nine-tank, 1.2 million-barrel build were
placed into service in the first quarter at Kinder Morgan’s Galena
Park terminal, as work continued on a new barge dock at the Pasadena
facility. Expected to be in service by year end, the barge dock at
Pasadena will provide capacity to handle up to 50 additional barges
per month. Capital expenditures for the infrastructure improvements
are approximately $137 million.
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In April, construction began on the third of five tankers ordered by
Kinder Morgan’s American Petroleum Tanker business at General
Dynamics’ NASSCO shipyard in San Diego. The five tankers are slated
for receipt between 2015 and mid-2017 and are supported by long-term
time charters with major shippers. Each of the tankers will be
50,000-deadweight-ton, LNG-conversion-ready product carriers, with a
330,000 barrel cargo capacity.
Kinder Morgan Canada
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Kinder Morgan Canada is currently engaged in the process of achieving
approval from the National Energy Board (NEB) for the Trans Mountain
Expansion Project. The company continues to engage extensively with
landowners, Aboriginal groups, communities and stakeholders along the
proposed expansion route, and marine communities. To date, 15
community benefits agreements representing 87 percent of the 690 miles
of expansion rights-of-way have been completed, and one-third of the
directly affected First Nations along the pipeline have agreed to
mutual benefits agreements. The NEB decision is scheduled for January
2016 and accordingly, the company expects the Trans Mountain expansion
to be completed in the third quarter of 2018. Thirteen companies in
the Canadian producing and oil marketing business signed firm
long-term contracts supporting the project for approximately 708,000
bpd. Kinder Morgan Canada received approval of the commercial terms
related to the expansion from the NEB in May of 2013. The proposed
$5.4 billion expansion will increase capacity on Trans Mountain from
approximately 300,000 to 890,000 bpd.
Financings
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In the first quarter, KMI sold shares valued at approximately $1.745
billion under its at-the-market equity distribution program.
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In February 2015, KMI issued $800 million of 31-year senior notes at a
fixed rate of 5.05 percent. KMI also issued an aggregate of €1,250
million of 7 and 12 year senior notes in March 2015 and swapped the
entire amount to U.S. dollars (approximately $1,358 million) at fixed
rates equivalent to approximately 3.79 percent and 4.67 percent,
respectively.
Kinder Morgan, Inc. (NYSE: KMI) is the largest energy infrastructure
company in North America. It owns an interest in or operates
approximately 84,000 miles of pipelines and 180 terminals. The company’s
pipelines transport natural gas, gasoline, crude oil, CO2 and
other products, and its terminals store petroleum products and
chemicals, and handle bulk materials like coal and petroleum coke.
Kinder Morgan is the largest midstream and third largest energy company
in North America with an enterprise value of more than $130 billion. For
more information please visit www.kindermorgan.com.
Please join Kinder Morgan at 4:30 p.m. Eastern Time on Wednesday,
April 15, at www.kindermorgan.com
for a LIVE webcast conference call on the company’s first quarter
earnings.
The non-generally accepted accounting principles, or non-GAAP,
financial measures of distributable cash flow before certain items, both
in the aggregate and per share, and segment earnings before
depreciation, depletion, amortization and amortization of excess cost of
equity investments, or DD&A, and certain items, are presented in this
news release.
Distributable cash flow before certain items 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. Distributable cash flow before
certain items 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. Distributable cash flow before certain items is
also a quantitative measure used in the investment community because the
value of a share of an entity like KMI that pays out 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 as compared to its stock price).
The economic substance behind our use of distributable cash flow
before certain items 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 distributable
cash flow before certain items is net income. A reconciliation of
distributable cash flow before certain items to net income is provided
in this release. Distributable cash flow before certain items per share
is distributable cash flow before certain items divided by average
outstanding shares, including restricted shares that participate in
dividends. “Certain items” are items that are required by GAAP to
be reflected in net income, but typically either (1) do not have a cash
impact, for example, goodwill impairments, or (2) by their nature are
separately identifiable from our normal business operations and in our
view are likely to occur only sporadically, for example certain legal
settlements, hurricane impacts and casualty losses. Management
uses this measure and believes it is important to users of our financial
statements because it believes the measure more effectively reflects our
business’ ongoing cash generation capacity than a similar measure with
the certain items included.
For similar reasons, management uses segment earnings before DD&A and
certain items in its analysis of segment performance and management of
our business. General and administrative expenses are generally
not controllable by our segment operating managers, and therefore, are
not included when we measure business segment operating performance. We
believe segment earnings before DD&A and certain items is a significant
performance metric because it enables us and external users of our
financial statements to better understand the ability of our segments to
generate cash on an ongoing basis. We believe it is useful to
investors because it is a measure that management believes is important
and that our chief operating decision makers use for purposes of making
decisions about allocating resources to our segments and assessing the
segments’ respective performance.
We believe the GAAP measure most directly comparable to segment
earnings before DD&A and certain items is segment earnings before DD&A.
Segment earnings before DD&A and certain items is calculated by
adjusting for the certain items attributable to a segment, which are
specifically identified in the footnotes to the accompanying tables,
from segment earnings before DD&A. Segment earnings before
DD&A as presented in our GAAP financials are included on the first page
of the tables presenting our financial results.
Our non-GAAP measures described above should not be considered
alternatives to GAAP net income or other GAAP measures and have
important limitations as analytical tools. Our computations of
distributable cash flow before certain items, and segment earnings
before DD&A and certain items may differ from similarly titled measures
used by others. You should not consider these non-GAAP measures in
isolation or as substitutes for an analysis of our results as reported
under GAAP. Management compensates for the limitations of these non-GAAP
measures 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.
|
|
|
|
|
Kinder Morgan, Inc. and Subsidiaries
|
Preliminary Consolidated Statements of Income
|
(Unaudited)
|
(In millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
2015
|
|
2014
|
|
|
|
|
|
Revenues
|
|
$
|
3,597
|
|
|
$
|
4,047
|
|
|
|
|
|
|
Costs, expenses and other
|
|
|
|
|
Operating expenses
|
|
|
1,595
|
|
|
|
2,126
|
|
Depreciation, depletion and amortization
|
|
|
538
|
|
|
|
496
|
|
General and administrative
|
|
|
179
|
|
|
|
172
|
|
Taxes, other than income taxes
|
|
|
115
|
|
|
|
110
|
|
Loss on impairments of long-lived assets
|
|
|
51
|
|
|
|
-
|
|
Other expense (income)
|
|
|
4
|
|
|
|
(4
|
)
|
|
|
|
2,482
|
|
|
|
2,900
|
|
|
|
|
|
|
Operating income
|
|
|
1,115
|
|
|
|
1,147
|
|
|
|
|
|
|
Other income (expense)
|
|
|
|
|
Earnings from equity investments
|
|
|
102
|
|
|
|
99
|
|
Loss on impairments of equity investments
|
|
|
(26
|
)
|
|
|
-
|
|
Amortization of excess cost of equity investments
|
|
|
(12
|
)
|
|
|
(10
|
)
|
Interest, net
|
|
|
(489
|
)
|
|
|
(448
|
)
|
Other, net
|
|
|
13
|
|
|
|
13
|
|
|
|
|
|
|
Income before income taxes
|
|
|
703
|
|
|
|
801
|
|
|
|
|
|
|
Income tax expense
|
|
|
(244
|
)
|
|
|
(200
|
)
|
|
|
|
|
|
Net Income
|
|
|
459
|
|
|
|
601
|
|
|
|
|
|
|
Net loss (income) attributable to noncontrolling interests
|
|
|
10
|
|
|
|
(314
|
)
|
|
|
|
|
|
Net income attributable to KMI
|
|
$
|
469
|
|
|
$
|
287
|
|
|
|
|
|
|
Class P Shares
|
|
|
|
|
Basic and Diluted Earnings Per Common Share
|
|
$
|
0.22
|
|
|
$
|
0.28
|
|
|
|
|
|
|
Basic Weighted-Average Number of Shares Outstanding (1)
|
|
|
2,141
|
|
|
|
1,029
|
|
|
|
|
|
|
Diluted Weighted-Average Number of Shares Outstanding (1)
|
|
|
2,151
|
|
|
|
1,029
|
|
|
|
|
|
|
Declared dividend per common share
|
|
$
|
0.48
|
|
|
$
|
0.42
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBDA
|
|
|
|
|
Natural Gas Pipelines
|
|
$
|
1,015
|
|
|
$
|
1,070
|
|
CO2
|
|
|
336
|
|
|
|
363
|
|
Products Pipelines
|
|
|
246
|
|
|
|
208
|
|
Terminals
|
|
|
270
|
|
|
|
210
|
|
Kinder Morgan Canada
|
|
|
41
|
|
|
|
48
|
|
Other
|
|
|
(6
|
)
|
|
|
7
|
|
Total Segment EBDA
|
|
$
|
1,902
|
|
|
$
|
1,906
|
|
|
|
|
|
|
Notes
|
|
|
|
|
(1) For 2015 and 2014, outstanding KMI convertible preferred
securities were antidilutive. For 2014 outstanding KMI warrants
were also antidilutive.
|
|
|
|
|
|
Kinder Morgan, Inc. and Subsidiaries
|
Preliminary Earnings Contribution by Business Segment
|
(Unaudited)
|
(In millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
2015
|
|
2014 (16)
|
Segment earnings before DD&A and amort. of excess investments (1)
|
|
|
|
|
Natural Gas Pipelines
|
|
$
|
1,087
|
|
|
$
|
1,076
|
|
CO2
|
|
|
281
|
|
|
|
366
|
|
Products Pipelines
|
|
|
245
|
|
|
|
204
|
|
Terminals
|
|
|
264
|
|
|
|
228
|
|
Kinder Morgan Canada
|
|
|
41
|
|
|
|
48
|
|
Other
|
|
|
(6
|
)
|
|
|
(3
|
)
|
Subtotal
|
|
|
1,912
|
|
|
|
1,919
|
|
|
|
|
|
|
DD&A and amortization of excess investments
|
|
|
(550
|
)
|
|
|
(506
|
)
|
General and administrative (1) (2)
|
|
|
(169
|
)
|
|
|
(163
|
)
|
Interest, net (1) (3)
|
|
|
(514
|
)
|
|
|
(445
|
)
|
Subtotal
|
|
|
679
|
|
|
|
805
|
|
|
|
|
|
|
Book taxes (4)
|
|
|
(234
|
)
|
|
|
(181
|
)
|
Certain items
|
|
|
|
|
Acquisition expense (5)
|
|
|
(11
|
)
|
|
|
(12
|
)
|
Pension plan net benefit
|
|
|
12
|
|
|
|
9
|
|
Fair value amortization
|
|
|
23
|
|
|
|
11
|
|
Legal and environmental reserves (6)
|
|
|
(4
|
)
|
|
|
(15
|
)
|
Mark to market and ineffectiveness (7)
|
|
|
64
|
|
|
|
-
|
|
Loss on asset disposals or impairments, net of insurance
recoveries
|
|
|
(79
|
)
|
|
|
(7
|
)
|
Other
|
|
|
7
|
|
|
|
(4
|
)
|
Subtotal certain items before tax
|
|
|
12
|
|
|
|
(18
|
)
|
Book tax certain items
|
|
|
2
|
|
|
|
(5
|
)
|
Total certain items
|
|
|
14
|
|
|
|
(23
|
)
|
Net income
|
|
$
|
459
|
|
|
$
|
601
|
|
|
|
|
|
|
Net income before certain items
|
|
$
|
445
|
|
|
$
|
624
|
|
Net income attributable to 3rd party noncontrolling interests (8)
|
|
|
(5
|
)
|
|
|
-
|
|
Depreciation, depletion and amortization (9)
|
|
|
634
|
|
|
|
583
|
|
Book taxes (10)
|
|
|
262
|
|
|
|
214
|
|
Cash taxes (11)
|
|
|
2
|
|
|
|
(4
|
)
|
Other items (12)
|
|
|
8
|
|
|
|
(113
|
)
|
Sustaining capital expenditures (13)
|
|
|
(104
|
)
|
|
|
(81
|
)
|
MLP declared distributions (14)
|
|
|
-
|
|
|
|
(650
|
)
|
DCF before certain items
|
|
$
|
1,242
|
|
|
$
|
573
|
|
|
|
|
|
|
Weighted Average Shares Outstanding for Dividends (15)
|
|
|
2,159
|
|
|
|
1,036
|
|
|
|
|
|
|
DCF per share before certain items
|
|
$
|
0.58
|
|
|
$
|
0.55
|
|
Declared dividend per common share
|
|
$
|
0.48
|
|
|
$
|
0.42
|
|
|
|
|
Notes ($ million)
|
(1)
|
|
Excludes certain items:
|
|
|
1Q 2015 - Natural Gas Pipelines $(72), CO2
$55, Products Pipelines $1, Terminals $6, general and administrative
$(1), interest expense $23.
|
|
|
1Q 2014 - Natural Gas Pipelines $(6), CO2
$(3), Products Pipelines $4, Terminals $(18), Other $10, interest
expense $(5).
|
(2)
|
|
General and administrative expense is net of certain management
fee revenues from an equity partner: 1Q 2015 - $(9), 1Q 2014 -
$(9).
|
(3)
|
|
Interest expense excludes interest income that is allocable to
the segments:
|
|
|
1Q 2015 - Products Pipelines $1, Other $1.
|
|
|
1Q 2014 - Products Pipelines $1, Other $1.
|
(4)
|
|
Book tax expense excludes book tax certain items. Also excludes
income tax that is allocated to the segments:
|
|
|
1Q 2015 - Natural Gas Pipelines $(2), CO2
$(2), Products Pipelines $(1), Terminals $(4), Kinder Morgan Canada
$(3).
|
|
|
1Q 2014 - Natural Gas Pipelines $(4), CO2
$(2), Products Pipelines $(1), Terminals $(3), Kinder Morgan Canada
$(4).
|
(5)
|
|
Acquisition expense related to closed acquisitions.
|
(6)
|
|
Legal reserve adjustments related to certain litigation and
environmental matters.
|
(7)
|
|
Gain or loss is reflected in EBDA at time of physical
transaction.
|
(8)
|
|
Represents net income allocated to third-party ownership
interests in consolidated subsidiaries (i.e. for prior period,
excludes noncontrolling interests
|
|
|
associated with our former MLPs). 1Q 2015 excludes noncontrolling
interests of $15 related to an impairment included as a certain item.
|
(9)
|
|
Includes KMI's share of certain equity investees' DD&A:
|
|
|
1Q 2015 - $84
|
|
|
1Q 2014 - $77
|
(10)
|
|
Excludes book tax certain items and includes income tax
allocated to the segments. Also, includes KMI's share of taxable
equity method investees' book tax expense:
|
|
|
1Q 2015 - $16
|
|
|
1Q 2014 - $19
|
(11)
|
|
Includes KMI's share of taxable equity method investees' cash
taxes:
|
|
|
1Q 2015 - $1
|
|
|
1Q 2014 - $(2)
|
(12)
|
|
For 2015, consists primarily of non-cash compensation
associated with our restricted stock program. The restricted
shares related to the program are included in our
|
|
|
weighted average shares outstanding for dividends.
|
|
|
For 2014 periods, consists primarily of excess coverage at our
former MLPs (i.e. the amount by which distributable cash flow
exceeded their declared distribution).
|
(13)
|
|
Includes KMI's share of certain equity investees' sustaining
capital expenditures (the same equity investees for which we add
back DD&A):
|
|
|
1Q 2015 - $(18)
|
|
|
1Q 2014 - $(3)
|
(14)
|
|
Represents distributions to KMP and EPB limited partner units
formerly owned by the public. Not applicable after 3Q 2014.
|
(15)
|
|
Includes restricted shares that participate in dividends and
dilutive effect of warrants.
|
(16)
|
|
Certain amounts have been reclassified to conform to the
current presentation.
|
|
|
|
|
|
Volume Highlights
|
(historical pro forma for acquired assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
2015
|
|
2014
|
Natural Gas Pipelines
|
|
|
|
|
Transport Volumes (BBtu/d) (1) (2)
|
|
|
35,716
|
|
|
|
33,649
|
|
Sales Volumes (BBtu/d) (3)
|
|
|
2,395
|
|
|
|
2,254
|
|
Gas Gathering Volumes (BBtu/d) (2) (4)
|
|
|
3,548
|
|
|
|
3,155
|
|
Crude/Condensate Gathering Volumes (MBbl/d) (2) (5)
|
|
|
329
|
|
|
|
251
|
|
|
|
|
|
|
CO2
|
|
|
|
|
Southwest Colorado Production - Gross (Bcf/d) (6)
|
|
|
1.23
|
|
|
|
1.33
|
|
Southwest Colorado Production - Net (Bcf/d) (6)
|
|
|
0.58
|
|
|
|
0.56
|
|
Sacroc Oil Production - Gross (MBbl/d) (7)
|
|
|
35.73
|
|
|
|
31.76
|
|
Sacroc Oil Production - Net (MBbl/d) (8)
|
|
|
29.76
|
|
|
|
26.45
|
|
Yates Oil Production - Gross (MBbl/d) (7)
|
|
|
18.79
|
|
|
|
19.65
|
|
Yates Oil Production - Net (MBbl/d) (8)
|
|
|
8.43
|
|
|
|
8.71
|
|
Katz Oil Production - Gross (MBbl/d) (7)
|
|
|
3.95
|
|
|
|
3.52
|
|
Katz Oil Production - Net (MBbl/d) (8)
|
|
|
3.29
|
|
|
|
2.93
|
|
Goldsmith Oil Production - Gross (MBbl/d) (7)
|
|
|
1.27
|
|
|
|
1.21
|
|
Goldsmith Oil Production - Net (MBbl/d) (8)
|
|
|
1.10
|
|
|
|
1.04
|
|
NGL Sales Volumes (MBbl/d) (9)
|
|
|
10.01
|
|
|
|
9.92
|
|
Realized Weighted Average Oil Price per Bbl (10) (11)
|
|
$
|
72.62
|
|
|
$
|
91.89
|
|
Realized Weighted Average NGL Price per Bbl (11)
|
|
$
|
20.70
|
|
|
$
|
49.44
|
|
|
|
|
|
|
Products Pipelines
|
|
|
|
|
Pacific, Calnev, and CFPL (MMBbl)
|
|
|
|
|
Gasoline (12)
|
|
|
66.8
|
|
|
|
64.2
|
|
Diesel
|
|
|
24.9
|
|
|
|
24.5
|
|
Jet Fuel
|
|
|
21.0
|
|
|
|
21.0
|
|
Sub-Total Refined Product Volumes - excl. Plantation and Parkway
|
|
|
112.7
|
|
|
|
109.7
|
|
Plantation (MMBbl) (13)
|
|
|
|
|
Gasoline
|
|
|
40.6
|
|
|
|
37.1
|
|
Diesel
|
|
|
10.7
|
|
|
|
10.3
|
|
Jet Fuel
|
|
|
6.8
|
|
|
|
6.4
|
|
Sub-Total Refined Product Volumes - Plantation
|
|
|
58.1
|
|
|
|
53.8
|
|
Parkway (MMBbl) (13)
|
|
|
|
|
Gasoline
|
|
|
3.2
|
|
|
|
1.7
|
|
Diesel
|
|
|
1.3
|
|
|
|
0.8
|
|
Jet Fuel
|
|
|
-
|
|
|
|
-
|
|
Sub-Total Refined Product Volumes - Parkway
|
|
|
4.5
|
|
|
|
2.5
|
|
Total (MMBbl)
|
|
|
|
|
Gasoline (12)
|
|
|
110.6
|
|
|
|
103.0
|
|
Diesel
|
|
|
36.9
|
|
|
|
35.6
|
|
Jet Fuel
|
|
|
27.8
|
|
|
|
27.4
|
|
Total Refined Product Volumes
|
|
|
175.3
|
|
|
|
166.0
|
|
NGLs (14)
|
|
|
12.1
|
|
|
|
8.8
|
|
Condensate (15)
|
|
|
19.6
|
|
|
|
4.6
|
|
Total Delivery Volumes (MMBbl)
|
|
|
207.0
|
|
|
|
179.4
|
|
Ethanol (MMBbl) (16)
|
|
|
9.8
|
|
|
|
9.7
|
|
|
|
|
|
|
Terminals
|
|
|
|
|
Liquids Leasable Capacity (MMBbl)
|
|
|
81.3
|
|
|
|
71.6
|
|
Liquids Utilization %
|
|
|
95.1
|
%
|
|
|
94.4
|
%
|
Bulk Transload Tonnage (MMtons) (17)
|
|
|
16.8
|
|
|
|
20.4
|
|
Ethanol (MMBbl)
|
|
|
16.1
|
|
|
|
16.5
|
|
|
|
|
|
|
Trans Mountain (MMBbls - mainline throughput)
|
|
|
27.6
|
|
|
|
25.0
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Includes Texas Intrastates, Copano South Texas, KMNTP,
Monterrey, TransColorado,
|
|
|
(7)
|
|
Represents 100% production from the field.
|
|
|
MEP (100%), KMLA, FEP (100%), TGP, EPNG, CIG, WIC, Cheyenne
Plains,
|
|
|
(8)
|
|
Represents KMI's net share of the production from the field.
|
|
|
SNG, Elba Express, Ruby, NGPL (100%), and Citrus (100%) pipeline
volumes.
|
|
|
(9)
|
|
Net to KMI.
|
(2)
|
|
Volumes for acquired pipelines are included for all periods.
|
|
|
(10)
|
|
Includes all KMI crude oil properties.
|
(3)
|
|
Includes Texas Intrastates and KMNTP.
|
|
|
(11)
|
|
Hedge gains/losses for Oil and NGLs are included with Crude Oil.
|
(4)
|
|
Includes Copano Oklahoma, Copano South Texas, Eagle Ford
Gathering, Copano
|
|
|
(12)
|
|
Gasoline volumes include ethanol pipeline volumes.
|
|
|
North Texas, Altamont, KinderHawk, Camino Real, Endeavor,
Bighorn, Webb/Duval
|
|
|
(13)
|
|
Plantation and Parkway reported at 100%.
|
|
|
Gatherers, Fort Union, EagleHawk, Red Cedar, and Hiland Midstream
throughput
|
|
|
(14)
|
|
Includes Cochin and Cypress (100%).
|
|
|
volumes. Joint Venture throughput reported at KMI share.
|
|
|
(15)
|
|
Includes KMCC, Double Eagle (100%), and Double H.
|
(5)
|
|
Includes Hiland Midstream, EagleHawk, and Camino Real. Joint
Venture
|
|
|
(16)
|
|
Total ethanol handled including pipeline volumes included in
|
|
|
throughput reported at KMI share.
|
|
|
|
|
gasoline volumes above.
|
(6)
|
|
Includes McElmo Dome and Doe Canyon sales volumes.
|
|
|
(17)
|
|
Includes KMI's share of Joint Venture tonnage.
|
|
|
|
|
|
|
|
Kinder Morgan, Inc. and Subsidiaries
|
|
Preliminary Consolidated Balance Sheets
|
|
(Unaudited)
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
|
2015
|
|
2014
|
ASSETS
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
259
|
|
|
$
|
315
|
|
|
Other current assets
|
|
|
3,030
|
|
|
|
3,437
|
|
|
Property, plant and equipment, net
|
|
|
40,289
|
|
|
|
38,564
|
|
|
Investments
|
|
|
6,011
|
|
|
|
6,036
|
|
|
Goodwill
|
|
|
24,907
|
|
|
|
24,654
|
|
|
Deferred charges and other assets
|
|
|
11,603
|
|
|
|
10,192
|
|
TOTAL ASSETS
|
|
$
|
86,099
|
|
|
$
|
83,198
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Short-term debt
|
|
$
|
3,435
|
|
|
$
|
2,717
|
|
|
Other current liabilities
|
|
|
3,349
|
|
|
|
3,645
|
|
|
Long-term debt
|
|
|
39,633
|
|
|
|
38,212
|
|
|
Preferred interest in general partner of KMP
|
|
|
100
|
|
|
|
100
|
|
|
Debt fair value adjustments
|
|
|
2,091
|
|
|
|
1,934
|
|
|
Other
|
|
|
2,092
|
|
|
|
2,164
|
|
|
Total liabilities
|
|
|
50,700
|
|
|
|
48,772
|
|
|
|
|
|
|
|
Shareholders' Equity
|
|
|
|
|
|
Accumulated other comprehensive loss
|
|
|
(193
|
)
|
|
|
(17
|
)
|
|
Other shareholders' equity
|
|
|
35,262
|
|
|
|
34,093
|
|
|
Total KMI equity
|
|
|
35,069
|
|
|
|
34,076
|
|
|
Noncontrolling interests
|
|
|
330
|
|
|
|
350
|
|
|
Total shareholders' equity
|
|
|
35,399
|
|
|
|
34,426
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
$
|
86,099
|
|
|
$
|
83,198
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt, net of cash (1)
|
|
$
|
42,825
|
|
|
$
|
40,614
|
|
|
|
|
|
|
|
|
EBITDA (2)
|
|
$
|
7,350
|
|
|
$
|
7,368
|
|
|
|
|
|
|
|
|
Debt to EBITDA
|
|
|
5.8
|
|
|
|
5.5
|
|
|
|
|
|
|
|
Notes
|
|
|
|
|
(1)
|
Amounts exclude: (i) the preferred interest in general partner of
KMP, (ii) debt fair value adjustments and (iii) the foreign
exchange impact on our Euro denominated debt ($16mm) as we have
entered into swaps to convert that debt to US$.
|
(2)
|
EBITDA includes add back of our share of certain equity investees'
DD&A and is before certain items.
|