HOUSTON--(BUSINESS WIRE)--Kinder Morgan, Inc. (NYSE: KMI) today announced that its board of
directors approved a quarterly cash dividend of $0.125 ($0.50
annualized) payable on May 16, 2016, to shareholders of record as of the
close of business on May 2, 2016. KMI expects to declare dividends of
$0.50 per share for 2016 and use cash in excess of dividend payments to
fund growth investments and strengthen its balance sheet.
“Despite continued headwinds in our industry, we are pleased with KMI's
performance for the quarter, and we are pleased to have generated $954
million of cash in excess of dividends during the quarter,” said Richard
D. Kinder, executive chairman. “Given our tremendous amount of cash
flow, we do not need to access the capital markets to fund growth
projects in 2016. This cash flow in excess of our dividends insulates us
from challenging capital markets and significantly enhances our credit
profile. Moreover, by continuing to high-grade our backlog, we do not
expect to need to access the capital markets to fund our growth projects
for the foreseeable future beyond 2016.
“We are confident that our world-class assets, substantial fee-based
cash flow, and ability to fund our growth projects with internally
generated cash positions us extremely well to continue to withstand
current market headwinds. Additionally, when our future cash flow
exceeds our investment needs, we expect to be in a position to further
strengthen our balance sheet and return substantial value to
shareholders.”
President and CEO Steve Kean said, “We had a good first quarter and once
again, Kinder Morgan demonstrated the resiliency of the company's cash
flows, generated by a large diversified portfolio of fee-based assets.
KMI produced distributable cash flow before certain items of $0.55 per
common share for the first quarter, resulting in $954 million of excess
cash coverage above our dividend. For the first quarter, our five
business segments produced $1.940 billion in segment earnings before
DD&A and certain items, up 1 percent from the first quarter of 2015,
primarily driven by increases in our Natural Gas Pipelines and Products
Pipelines segments, partially offset by a decline in our CO2
segment.
“We reduced our growth capital backlog from $18.2 billion at the end of
the fourth quarter 2015 to $14.1 billion at the end of the first quarter
2016. The reduction in our backlog was driven primarily by the removal
of the Northeast Energy Direct (NED) Market project due to insufficient
contractual commitments from customers in the New England market, and
the removal of the Palmetto Pipeline project following unfavorable
action by the Georgia legislature regarding eminent domain authority and
permitting for petroleum pipelines,” Kean said.
Kean added, “We continue to focus on high-grading our growth project
backlog to allocate capital to the highest return opportunities by
reducing spend, improving returns and selectively joint venturing
projects where appropriate. As a clear demonstration of these efforts,
we have reduced our 2016 growth capital forecast to approximately $2.9
billion, a $1.3 billion reduction from our December 2015 guidance of
approximately $4.2 billion. We believe these efforts will allow us to
more quickly strengthen our balance sheet and will benefit our company,
employees and our investors for the long term.”
KMI reported first quarter distributable cash flow before certain items
available to common shareholders of $1.233 billion versus $1.242 billion
for the comparable period in 2015. This decrease for the quarter is
primarily attributable to a decline in our CO2 segment and
higher preferred stock dividends, partially offset by increases in our
Natural Gas Pipelines and Products Pipelines segments. Distributable
cash flow per common share before certain items was $0.55 for the first
quarter, compared to $0.58 for the first quarter last year. First
quarter net income before certain items was $446 million compared to
$445 million for the same period in 2015. The slight increase in net
income before certain items was driven by higher segment earnings offset
by higher DD&A expense, book taxes, and general and administrative
expense. Certain items after tax in the first quarter totaled a net loss
of $132 million, driven by the $170 million write-off of costs
associated with the NED Market and Palmetto Pipeline projects, $85
million of losses on asset disposals and impairments in our CO2,
Terminals, Natural Gas Pipelines, and Products Pipelines segments,
partially offset by $103 million of lower book taxes. The 2016 first
quarter certain items loss compares to a certain items loss of $26
million for the same period of 2015. For the quarter, net income after
certain items was $314 million compared to $419 million for the first
quarter of 2015.
2016 Outlook
For 2016, KMI expects to declare dividends of $0.50 per share. KMI's
budgeted distributable cash flow available to common equity holders
(i.e., after payment of preferred dividends) is approximately $4.7
billion and budgeted EBITDA is approximately $7.5 billion. Due to
continued weakness in the energy sector in 2016, the company now expects
EBITDA to be about 3 percent below its plan and distributable cash flow
to be about 4 percent below its plan. KMI expects to generate excess
cash sufficient to fund its growth capital needs without needing to
access capital markets and expects to achieve its targeted year-end debt
to EBITDA ratio of 5.5 times. KMI's growth capital forecast for 2016 is
approximately $2.9 billion, a reduction of $400 million from its budget
of approximately $3.3 billion and a reduction of $1.3 billion from its
preliminary 2016 guidance of approximately $4.2 billion.
The overwhelming majority of cash generated by KMI is fee-based and
therefore is not directly exposed to commodity prices. The primary area
where KMI has commodity price sensitivity is in its CO2 segment,
and KMI hedges the majority of its next 12 months of oil production to
minimize this sensitivity. For 2016, the company estimates that every $1
per barrel change in the average West Texas Intermediate (WTI) crude oil
price from the company's budget of $38 per barrel would impact its
budgeted distributable cash flow by approximately $6.5 million and each
$0.10 per MMBtu change in the price of natural gas from the company's
budget of $2.50 per MMBtu would impact its budgeted distributable cash
flow by approximately $0.6 million. The company’s sensitivity to oil and
gas prices for the remainder of the year substantially declines as the
year progresses and as additional hedges are put in place.
In light of the continued weak commodity price environment, KMI
continues to closely monitor counterparty exposure and obtain collateral
when appropriate. However, the company has operations across a broad set
of industries and has a large customer base, with its average customer
representing less than one-tenth of a percent of annual revenues.
Additionally, approximately two-thirds of KMI's revenue from material
counterparties comes from customers who are end-users of the products
KMI transports and stores, such as utilities, local distribution
companies, refineries and large integrated firms.
Overview of Business Segments
The Natural Gas Pipelines business produced first quarter segment
earnings before DD&A and certain items of $1.130 billion, as compared to
$1.087 billion for the same period last year.
“Growth in this segment compared to the first quarter last year was led
by contributions from the Hiland acquisition and improved performance on
Tennessee Gas Pipeline (TGP) driven by projects placed into service and
favorable 2016 firm transportation revenue,” Kean said. “First quarter
growth was partially offset by lower commodity prices and reduced
volumes affecting certain of our midstream gathering and processing
assets. The expiration of a minimum volume contract at KinderHawk, a
customer contract buyout at Kinder Morgan Louisiana pipeline and
unfavorable contract renewals on Cheyenne Plains pipeline also
negatively impacted earnings.”
Natural gas transport volumes were down 2 percent compared to the first
quarter last year, driven by lower throughput on Wyoming Interstate
Company pipeline due to lower production in the Rockies and lower
throughput on TGP, Southern Natural Gas pipeline (SNG) and Natural Gas
Pipeline Company of America (NGPL) as a result of milder weather during
the first quarter of 2016 compared to the same period in 2015. These
decreases were partially offset by higher throughput on the El Paso
Natural Gas pipeline from additional deliveries to California and higher
throughput into Mexico on the Sierrita Gas Pipeline.
Natural gas continues to be the fuel of choice for America’s evolving
energy needs, and industry experts are projecting gas demand increases
of over 35 percent to nearly 110 billion cubic feet per day (Bcf/d) over
the next 10 years. Over the last two years, KMI has entered into new and
pending firm transport capacity commitments totaling 8.2 Bcf/d (1.8
Bcf/d of which is existing, previously unsold capacity). Of the natural
gas consumed in the United States, about 38 percent moves on KMI
pipelines. Future opportunities include greater demand for gas-fired
power generation across the country, liquefied natural gas (LNG)
exports, exports to Mexico and continued industrial development,
particularly in the petrochemical industry.
The CO2 business produced first quarter segment
earnings before DD&A and certain items of $223 million, down from $281
million for the same period in 2015.
“As expected, lower commodity prices impacted earnings in this segment,
as our realized weighted average oil price for the quarter was $59.55
per barrel compared to $72.62 per barrel for the first quarter of 2015,”
Kean said. “Combined oil production across all of our fields was down 7
percent compared to 2015 on a net to Kinder Morgan basis, primarily
driven by lower SACROC production, although SACROC’s production was
consistent with our plan. First quarter 2016 net NGL sales volumes of
9.9 thousand barrels per day (MBbl/d) were down 1 percent compared to
the same period in 2015. Net CO2 volumes increased 2 percent
versus the first quarter of 2015. In addition, we continued to offset
some of the impact of lower commodity prices by generating cost savings
across our CO2 business,” Kean said. Kinder Morgan’s 2016
budget assumes an average WTI crude oil price of approximately $38 per
barrel.
Combined gross oil production volumes averaged 56.4 MBbl/d for the first
quarter, down 6 percent from 59.8 MBbl/d for the same period in 2015.
SACROC’s first quarter gross production was 15 percent below first
quarter 2015 results, but consistent with plan, and Yates gross
production was 1 percent above first quarter 2015 results and above plan
for the quarter. First quarter gross production from Katz, Goldsmith and
Tall Cotton was 31 percent above the same period in 2015, but below
plan. The average WTI unhedged crude oil price for the first quarter was
$33.45 per barrel versus $48.63 for the first quarter of 2015.
The Terminals business produced first quarter segment earnings
before DD&A and certain items of $269 million, up 2 percent from $264
million for the same period in 2015.
“We experienced strong performance at our liquids terminals, which
accounted for 77 percent of the segment's first quarter 2016 earnings
and generated $29 million more segment earnings before DD&A and certain
items as compared to the same period in 2015. This performance was
driven by various expansions across our network, including contributions
from new operations at Edmonton Rail terminal, Geismar Methanol terminal
and Deer Park Rail terminal. Contributions from our interest in the
newly formed refined products terminals joint venture with BP, our Vopak
terminals acquisition and the Jones Act tankers also contributed
significantly to growth in this segment, including the delivery of the Lone
Star State tanker in December 2015,” Kean said.
“Growth from our liquids terminals was partially offset by a reduction
of $24 million in first quarter segment earnings before DD&A and certain
items from our bulk terminals as compared to the same period in 2015.
This reduction was driven by the bankruptcies of coal customers Arch
Coal, Alpha Natural Resources and Peabody Energy, which had a negative
year-over-year impact of approximately $27 million to earnings before
DD&A and certain items for the quarter. The year-over-year impact of the
bankruptcies for the full year is roughly the same as the impact for the
first quarter, owing to write-offs taken in later periods during 2015.
Continued weakness in global coal markets led to a 59 percent decline in
export coal volumes in the first quarter of 2016 versus the same period
in 2015.”
The Products Pipelines business produced first quarter segment
earnings before DD&A and certain items of $287 million, up 17 percent
from $245 million for the comparable period in 2015.
“Growth in this segment compared to the first quarter of 2015 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 during 2015, contributions from the
Double H pipeline, which was part of our Hiland acquisition, and
favorable performance on our SFPP system, driven by greater refined
products throughput,” Kean said.
Total refined products volumes were up 2.3 percent for the first quarter
versus the same period in 2015, driven by segment gasoline and jet fuel
volumes, which were up 3.3 percent and 2.8 percent, respectively,
compared to the first quarter of 2015. NGL volumes were down 3.5 percent
from the same period last year. Crude and condensate volumes were up
67.3 percent from the first quarter of 2015 primarily due to the
continued ramp up of volumes on KMCC and placing the Double H pipeline
in service in February 2015.
Kinder Morgan Canada produced first quarter segment earnings
before DD&A and certain items of $40 million versus the $41 million it
reported for the same period in 2015. Demand for capacity remained high
on the Trans Mountain pipeline system in the first quarter, with
mainline throughput into Washington state up 17 percent from 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 10 percent since the first quarter of 2015.
Other News
Natural Gas Pipelines
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On March 17, 2016, the FERC issued an Environmental Assessment for the
$156 million, 145,000 dekatherms per day (Dth/d) Susquehanna West
project, designed to deliver Marcellus gas supply to an
interconnection with National Fuel Gas Supply LLC. Issuance of a FERC
certificate is expected in June 2016, with anticipated in-service on
Nov. 1, 2017.
-
On March 11, 2016, the FERC issued an Environmental Assessment for the
$447 million TGP Broad Run Expansion project. Subject to regulatory
approvals, the Broad Run Expansion project will provide an incremental
200,000 Dth/d of firm transportation capacity along the same capacity
path as the Broad Run Flexibility project, which was placed in service
on Nov. 1, 2015. In 2014, Antero Resources was awarded a total of
790,000 Dth/d of 15-year firm capacity under the two projects from a
receipt point on TGP's Broad Run Lateral in West Virginia to delivery
points in Mississippi and Louisiana. Estimated capital expenditures
for the combined projects are approximately $800 million. The
anticipated in-service date of the Broad Run Expansion project is June
1, 2018.
-
On March 11, 2016, the FERC issued TGP a Certificate of Public
Convenience and Necessity for its proposed $93 million Connecticut
Expansion project. The project will upgrade portions of TGP’s existing
system in New York, Massachusetts and Connecticut, providing
approximately 72,100 Dth/d of additional firm transportation capacity
for three customers.
-
On Feb. 5, 2016, the FERC issued an Environmental Assessment for the
approximately $2 billion Elba Liquefaction project. The deadline for
all federal authorizations required for issuance of the FERC
certificate is May 5, 2016. The first of 10 liquefaction units is
expected to be placed in service in the second quarter of 2018, with
the remaining nine units coming online before the end of 2018. This
project is supported by a 20-year contract with Shell.
-
The deadline for all federal authorizations required for issuance of
FERC certificates for the expansion projects on the Elba Express and
SNG pipelines coincides with the May 5 deadline for Elba Liquefaction.
These projects, with estimated investment totaling approximately $306
million, are projected to be placed into service beginning in the
fourth quarter of 2016.
-
On March 17, 2016, FERC granted NGPL’s request for certificate
authorization for the approximately $81 million Chicago Market
Expansion project. This project will increase NGPL’s capacity by
238,000 Dth/d and provide transportation service on its Gulf Coast
mainline system from the Rockies Express Pipeline interconnection in
Moultrie County, Illinois, to points north on NGPL’s system. The
company has executed binding agreements with four customers for
incremental firm transportation service to markets near Chicago.
Construction is expected to begin in the second quarter of 2016 and
the project is expected to be placed into service in the fourth
quarter of 2016.
-
On April 12, 2016, NGPL paid down the majority of its remaining term
loan balance and all of its revolving credit facility borrowings using
proceeds from a $623 million capital contribution from KMI and
Brookfield Infrastructure Partners L.P., who each own a 50 percent
interest in NGPL. KMI’s share of this contribution, $311.5 million,
was included in the company’s 2016 growth capital budget.
-
The Texas Intrastate Natural Gas Pipeline Group continues construction
work on its $78 million Crossover project, which will expand its
system to provide additional natural gas deliveries into the Nueces
County area of South Texas and to other expanding markets along the
system. When fully constructed, the project will provide over
1,000,000 Dth/d of new transportation capacity to serve customers in
Texas and Mexico, with initial incremental volumes coming online in
June 2016.
CO2
-
Kinder Morgan has completed its approximately $240 million Cow Canyon
expansion project in southwestern Colorado, and the associated
facilities have been placed into service. This project will
accommodate additional CO2 production capacity in the
McElmo Dome source field, up to 200 million cubic feet per day.
-
Work continues on the northern portion of the Cortez Pipeline
expansion project. The approximately $159 million project will
increase CO2 transportation capacity on the Cortez Pipeline
from 1.35 Bcf/d to 1.5 Bcf/d. The pipeline transports CO2
from southwestern Colorado to eastern New Mexico and West Texas for
use in enhanced oil recovery projects. Four of the five pump stations
are anticipated to be completed in the second quarter of 2016, with
the remaining pump station expected to be completed in the fourth
quarter of 2016.
Terminals
-
On Feb. 1, 2016, Kinder Morgan closed its approximately $350 million
acquisition of 15 refined products terminals in the United States from
BP Products North America Inc. The terminals have approximately 9.5
million barrels of storage capacity and associated infrastructure.
Kinder Morgan and BP Products North America Inc. formed a joint
venture limited liability company (JV) to own 14 of the acquired
assets, which Kinder Morgan will operate. Kinder Morgan owns a 75
percent interest in the JV. The fifteenth terminal will be owned
solely by KMI. In connection with the transaction, BP entered into
commercial agreements securing long-term storage and throughput
capacity from the JV, which plans to market remaining capacity to
third-party customers. This investment was included in Kinder Morgan's
2016 capital plan as discussed in its Jan. 27 investor conference.
-
At the end of March 2016, the first of two new deep-water liquids
docks being developed along the Houston Ship Channel was placed into
service with the second to follow by the fourth quarter of this year.
The docks, which are pipeline connected to Kinder Morgan’s Pasadena
and Galena Park terminals via three cross-channel lines, are capable
of loading ocean going vessels at rates up to 15,000 barrels per hour.
The approximately $67 million project is a response to customers’
growing demand for waterborne outlets for refined products along the
ship channel, and is supported by firm vessel commitments from
existing customers at Kinder Morgan’s Galena Park and Pasadena
terminals.
-
Site grading and ground work continued in the first quarter at the
Base Line Terminal, a new crude oil storage facility being developed
in Edmonton, Alberta. In March 2015, Kinder Morgan and Keyera Corp.
announced the new 50-50 JV terminal and entered into long-term, firm
take-or-pay agreements with strong, creditworthy customers to build 12
tanks totaling 4.8 million barrels of crude oil storage capacity.
KMI’s investment in the joint venture terminal is approximately
CAD$372 million. Commissioning is expected to begin in the fourth
quarter of 2017.
-
Work continues on the Kinder Morgan Export Terminal (KMET) along the
Houston Ship Channel. The approximately $227 million project includes
12 storage tanks with 1.5 million barrels of storage capacity, one
ship dock, one barge dock and cross-channel pipelines to connect with
Kinder Morgan's Galena Park terminal. KMET is anticipated to be in
service in the first quarter of 2017.
-
Construction continues on tanker new-build programs at General
Dynamics’ NASSCO Shipyard and Philly Shipyard, Inc. that will see
Kinder Morgan’s American Petroleum Tankers (APT) fleet grow from eight
vessels to 16 vessels by the end of 2017. Our newest vessel, the Lone
Star State, was delivered in December 2015 and immediately placed
on long-term time charter with a major integrated oil company. Four
additional deliveries are scheduled in each of 2016 and 2017 between
the two shipyards, and the program remains materially on-time and
on-budget.
Products Pipelines
-
Kinder Morgan continues to make progress on its Utopia East pipeline
project, which remains on track for an in-service date of Jan. 1,
2018. The new pipeline will originate in Harrison County, Ohio, and
connect with an existing Kinder Morgan pipeline and facilities in
Fulton County, Ohio, transporting ethane and ethane-propane mixtures
eastward to Windsor, Ontario, Canada. The approximately $500 million
Utopia pipeline will have an initial design capacity of 50,000 barrels
per day (bpd), and the system is expandable to more than 75,000 bpd.
The project is fully supported by a long-term, fee-based
transportation agreement with a petrochemical customer.
Kinder Morgan Canada
-
Kinder Morgan Canada is currently seeking an approval recommendation
from the National Energy Board (NEB) for the Trans Mountain Expansion
project. On Feb. 17, 2016, the official NEB record has closed upon
filing of Trans Mountain’s final written reply argument. The NEB will
make its final recommendation to the federal Government in Council by
May 20, 2016. The federal government has indicated it will require
additional time to review aspects of the project and has extended the
deadline for the Order in Council decision to Dec. 20, 2016. If
approved, the company expects the project to be in-service by the end
of 2019. The in-service date for the expansion will depend on the
final conditions contained in the NEB recommendation and the final
Order in Council from the federal government. The proposed USD$5.4
billion expansion will increase capacity on Trans Mountain from
approximately 300,000 to 890,000 bpd. Thirteen companies have signed
firm long-term contracts supporting the project for approximately
708,000 bpd. Kinder Morgan Canada continues to engage extensively with
landowners, Aboriginal groups, communities and stakeholders along the
proposed expansion route and marine communities.
Financings
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On Jan. 26, 2016, KMI entered into a $1.0 billion three-year unsecured
term loan facility with a variable interest rate, which is determined
using the same pricing grid used for interest on the company’s
revolving credit facility borrowings.
-
On Jan. 26, 2016, KMI increased the capacity of its revolving credit
agreement from $4.0 billion to $5.0 billion, in accordance with the
terms of its revolving credit agreement. The other terms of the
revolving credit agreement remain the same.
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 approximately 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. For
more information please visit www.kindermorgan.com.
Please join Kinder Morgan at 4:30 p.m. Eastern Time on Wednesday,
April 20, at www.kindermorgan.com
for a LIVE webcast conference call on the company’s first quarter
earnings.
The non-generally accepted accounting principles (non-GAAP) financial
measures of distributable cash flow before certain items (DCF), both in
the aggregate and per share, segment earnings before depreciation,
depletion, amortization and amortization of excess cost of equity
investments (DD&A), and certain items (Segment earnings before DD&A and
certain items), and net income before interest expense, taxes, DD&A and
certain items (EBITDA) are presented in this news release.
“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, asset 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.
DCF is a significant metric used
by us and by external users of our financial statements to evaluate our
performance and to measure and estimate the ability of our assets to
generate cash flow on an ongoing basis. Management uses this
measure and believes it is important to users of our financial
statements because it believes the measure more accurately reflects our
business’ ongoing cash generation capacity than a similar measure with
the certain items included. We believe the GAAP measure most
directly comparable to DCF is net income. A reconciliation of DCF
to net income is provided in this release. DCF per share is DCF
divided by average outstanding shares, including restricted stock awards
that participate in dividends.
Segment earnings before DD&A and certain items
is used by management for similar reasons in its analysis of segment
performance and management of our business. General and
administrative expenses are generally not under the control of 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 uses to allocate
resources to our segments and assess 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.
EBITDA is used by management and
external users, in conjunction with our net debt, as a measure to
evaluate certain leverage metrics. We believe EBITDA is useful to
investors because it is a measure that management uses to assess the
company’s leverage measures. We believe the GAAP measure most
directly comparable to EBITDA is net income before interest expense,
taxes and DD&A. EBITDA is calculated by adjusting net income
before interest expense, taxes, and DD&A for the certain items, which
are specifically identified in the footnotes to the accompanying tables.
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
DCF, Segment earnings before DD&A and certain items and EBITDA 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.
Important Information Relating to
Forward-Looking Statements
This news release includes forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995 and
Section 21E of the Securities and Exchange Act of 1934. Generally the
words “expects,” “believes,” anticipates,” “plans,” “will,” “shall,”
“estimates,” and similar expressions identify forward-looking
statements, which are generally not historical in nature.
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 any such forward-looking
statements will materialize. Important factors that could cause actual
results to differ materially from those expressed in or implied from
these forward-looking statements include the risks and uncertainties
described in Kinder Morgan’s reports filed with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for the
year-ended December 31, 2015 (under the headings “Risk Factors” and
“Information Regarding Forward-Looking Statements” and elsewhere) and
its subsequent reports, which are available through the SEC’s EDGAR
system at www.sec.gov
and on our website at ir.kindermorgan.com.
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 any forward-looking statement because of new
information, future events or other factors. Because of these risks and
uncertainties, readers should not place undue reliance on these
forward-looking statements.
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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 March 31,
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2016
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2015
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Revenues
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$
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3,195
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$
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3,597
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Costs, expenses and other
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Costs of sales
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731
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1,090
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|
Operations and maintenance
|
|
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565
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505
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Depreciation, depletion and amortization
|
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551
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538
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General and administrative
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190
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216
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Taxes, other than income taxes
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108
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115
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Loss on impairments and disposals of long-lived assets, net
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235
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54
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Other (income) expense, net
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(1
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)
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1
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2,379
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2,519
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|
|
|
|
|
|
|
Operating income
|
|
|
|
|
816
|
|
|
|
|
|
1,078
|
|
|
|
|
|
|
|
|
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
Earnings from equity investments
|
|
|
|
|
94
|
|
|
|
|
|
76
|
|
Amortization of excess cost of equity investments
|
|
|
|
|
(14
|
)
|
|
|
|
|
(12
|
)
|
Interest, net
|
|
|
|
|
(441
|
)
|
|
|
|
|
(512
|
)
|
Other, net
|
|
|
|
|
13
|
|
|
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
|
468
|
|
|
|
|
|
643
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
|
(154
|
)
|
|
|
|
|
(224
|
)
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
314
|
|
|
|
|
|
419
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to noncontrolling interests
|
|
|
|
|
1
|
|
|
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Kinder Morgan, Inc.
|
|
|
|
|
315
|
|
|
|
|
|
429
|
|
|
|
|
|
|
|
|
|
|
Preferred stock dividends
|
|
|
|
|
(39
|
)
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net income available to common stockholders
|
|
|
|
$
|
276
|
|
|
|
|
$
|
429
|
|
|
|
|
|
|
|
|
|
|
Class P Shares
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per common share
|
|
|
|
$
|
0.12
|
|
|
|
|
$
|
0.20
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average common shares outstanding (1)
|
|
|
|
|
2,229
|
|
|
|
|
|
2,141
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares outstanding (1)
|
|
|
|
|
2,229
|
|
|
|
|
|
2,151
|
|
|
|
|
|
|
|
|
|
|
Declared dividend per common share
|
|
|
|
$
|
0.125
|
|
|
|
|
$
|
0.480
|
|
|
|
|
|
|
|
|
|
|
Segment EBDA
|
|
|
|
|
|
|
|
|
Natural Gas Pipelines
|
|
|
|
$
|
992
|
|
|
|
|
$
|
1,015
|
|
CO2
|
|
|
|
|
186
|
|
|
|
|
|
336
|
|
Terminals
|
|
|
|
|
253
|
|
|
|
|
|
270
|
|
Products Pipelines
|
|
|
|
|
179
|
|
|
|
|
|
246
|
|
Kinder Morgan Canada
|
|
|
|
|
40
|
|
|
|
|
|
41
|
|
Other
|
|
|
|
|
(8
|
)
|
|
|
|
|
(6
|
)
|
Total Segment EBDA
|
|
|
|
$
|
1,642
|
|
|
|
|
$
|
1,902
|
|
|
|
|
|
|
Notes
|
|
|
(1)
|
|
For all periods presented, all potential common share equivalents
were antidilutive, except for the three months ended March 31, 2015
during which the KMI warrants were dilutive.
|
|
|
|
|
|
|
|
|
|
Kinder Morgan, Inc. and Subsidiaries
Preliminary Earnings Contribution by Business Segment
(Unaudited)
(In millions, except per share amounts)
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2016
|
|
|
|
2015
|
Segment earnings before DD&A and amort. of excess investments (1)
|
|
|
|
|
|
|
|
|
Natural Gas Pipelines
|
|
|
|
$
|
1,130
|
|
|
|
|
$
|
1,087
|
|
CO2
|
|
|
|
|
223
|
|
|
|
|
|
281
|
|
Terminals
|
|
|
|
|
269
|
|
|
|
|
|
264
|
|
Product Pipelines
|
|
|
|
|
287
|
|
|
|
|
|
245
|
|
Kinder Morgan Canada
|
|
|
|
|
40
|
|
|
|
|
|
41
|
|
Other
|
|
|
|
|
(9
|
)
|
|
|
|
|
(6
|
)
|
Subtotal
|
|
|
|
|
1,940
|
|
|
|
|
|
1,912
|
|
|
|
|
|
|
|
|
|
|
DD&A and amortization of excess investments
|
|
|
|
|
(565
|
)
|
|
|
|
|
(550
|
)
|
General and administrative (1) (2)
|
|
|
|
|
(176
|
)
|
|
|
|
|
(169
|
)
|
Interest, net (1) (3)
|
|
|
|
|
(511
|
)
|
|
|
|
|
(514
|
)
|
Subtotal
|
|
|
|
|
688
|
|
|
|
|
|
679
|
|
|
|
|
|
|
|
|
|
|
Book taxes (4)
|
|
|
|
|
(242
|
)
|
|
|
|
|
(234
|
)
|
Certain items
|
|
|
|
|
|
|
|
|
Acquisition expense (5)
|
|
|
|
|
(3
|
)
|
|
|
|
|
(11
|
)
|
Pension plan net benefit
|
|
|
|
|
1
|
|
|
|
|
|
12
|
|
Fair value amortization
|
|
|
|
|
24
|
|
|
|
|
|
23
|
|
Legal and environmental reserves (6)
|
|
|
|
|
(35
|
)
|
|
|
|
|
(64
|
)
|
Mark to market and ineffectiveness (7)
|
|
|
|
|
30
|
|
|
|
|
|
64
|
|
Loss on asset disposals/impairments, net
|
|
|
|
|
(85
|
)
|
|
|
|
|
(79
|
)
|
Project write-offs
|
|
|
|
|
(170
|
)
|
|
|
|
|
-
|
|
Other
|
|
|
|
|
3
|
|
|
|
|
|
7
|
|
Subtotal certain items before tax
|
|
|
|
|
(235
|
)
|
|
|
|
|
(48
|
)
|
Book tax certain items
|
|
|
|
|
103
|
|
|
|
|
|
22
|
|
Total certain items
|
|
|
|
|
(132
|
)
|
|
|
|
|
(26
|
)
|
Net income
|
|
|
|
$
|
314
|
|
|
|
|
$
|
419
|
|
|
|
|
|
|
|
|
|
|
Net income before certain items
|
|
|
|
$
|
446
|
|
|
|
|
$
|
445
|
|
Net income attributable to noncontrolling interests (8)
|
|
|
|
|
(5
|
)
|
|
|
|
|
(5
|
)
|
Depreciation, depletion and amortization (9)
|
|
|
|
|
652
|
|
|
|
|
|
634
|
|
Book taxes (10)
|
|
|
|
|
279
|
|
|
|
|
|
262
|
|
Cash taxes (11)
|
|
|
|
|
(2
|
)
|
|
|
|
|
2
|
|
Other items (12)
|
|
|
|
|
10
|
|
|
|
|
|
8
|
|
Sustaining capital expenditures (13)
|
|
|
|
|
(108
|
)
|
|
|
|
|
(104
|
)
|
DCF before certain items
|
|
|
|
|
1,272
|
|
|
|
|
|
1,242
|
|
Preferred stock dividends
|
|
|
|
|
(39
|
)
|
|
|
|
|
-
|
|
DCF before certain items available to common stockholders
|
|
|
|
$
|
1,233
|
|
|
|
|
$
|
1,242
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding for Dividends (14)
|
|
|
|
|
2,237
|
|
|
|
|
|
2,159
|
|
|
|
|
|
|
|
|
|
|
DCF per common share before certain items
|
|
|
|
$
|
0.55
|
|
|
|
|
$
|
0.58
|
|
Declared dividend per common share
|
|
|
|
$
|
0.125
|
|
|
|
|
$
|
0.480
|
|
|
|
|
|
|
|
|
|
|
EBITDA (15)
|
|
|
|
$
|
1,883
|
|
|
|
|
$
|
1,850
|
|
|
Notes ($ million)
|
(1)
|
|
Excludes certain items:
|
|
|
1Q 2016 - Natural Gas Pipelines $(138), CO2 $(37), Terminals
$(16), Products Pipelines $(108), Other $1, general and
administrative $(6), interest expense $69.
|
|
|
1Q 2015 - Natural Gas Pipelines $(72), CO2 $55, Terminals $6,
Products Pipelines $1, general and administrative expense $(38).
|
(2)
|
|
General and administrative expense is net of management fee
revenues from an equity partner:
|
|
|
1Q 2016 - $(8)
|
|
|
1Q 2015 - $(9)
|
(3)
|
|
Interest expense excludes interest income that is allocable to the
segments:
|
|
|
1Q 2016 - Products Pipelines $1.
|
|
|
1Q 2015 - 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 2016 - Natural Gas Pipelines $(2), CO2 $(1), Terminals $(7),
Products Pipelines $1, Kinder Morgan Canada $(6).
|
|
|
1Q 2015 - Natural Gas Pipelines $(2), CO2 $(2), Terminals $(4),
Products Pipelines $(1), Kinder Morgan Canada $(3).
|
(5)
|
|
Acquisition expense related to closed or pending acquisitions.
|
(6)
|
|
Legal reserve adjustments related to certain litigation and
environmental matters.
|
(7)
|
|
Mark to market gain or loss is reflected in segment earnings before
DD&A at time of physical transaction.
|
(8)
|
|
Represents net income allocated to third-party ownership interests
in consolidated subsidiaries. Excludes noncontrolling interests of
$6 million and $15 million in 1Q 2016 and 1Q 2015, respectively,
related to impairments and project write-offs included as certain
items.
|
(9)
|
|
Includes KMI's share of certain equity investees' DD&A:
|
|
|
1Q 2016 - $87
|
|
|
1Q 2015 - $84
|
(10)
|
|
Excludes book tax certain items and includes income tax allocated
to the segments. Also, includes KMI's share of taxable equity
investees' book tax expense:
|
|
|
1Q 2016 - $22
|
|
|
1Q 2015 - $16
|
(11)
|
|
Includes KMI's share of taxable equity investees' cash taxes:
|
|
|
1Q 2016 - $(4)
|
|
|
1Q 2015 - $1
|
(12)
|
|
Consists primarily of non-cash compensation associated with our
restricted stock program.
|
(13)
|
|
Includes KMI's share of certain equity investees' sustaining
capital expenditures (the same equity investees for which we add
back DD&A):
|
|
|
1Q 2016 - $(22)
|
|
|
1Q 2015 - $(18)
|
(14)
|
|
Includes restricted stock awards that participate in common share
dividends and dilutive effect of warrants, as applicable.
|
(15)
|
|
EBITDA is net income before certain items, less net income
attributable to noncontrolling interests (before certain items),
plus DD&A (including KMI's share of certain equity investees' DD&A),
book taxes (including income tax allocated to the segments and KMI’s
share of certain equity investees’ book tax), and interest expense,
with any difference due to rounding.
|
|
|
|
|
|
|
|
|
|
Volume Highlights
(historical pro forma for acquired assets)
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
Natural Gas Pipelines
|
|
|
|
|
|
|
|
|
Transport Volumes (BBtu/d) (1) (2)
|
|
|
|
|
30,392
|
|
|
|
|
|
30,859
|
|
Sales Volumes (BBtu/d) (3)
|
|
|
|
|
2,331
|
|
|
|
|
|
2,395
|
|
Gas Gathering Volumes (BBtu/d) (2) (4)
|
|
|
|
|
3,207
|
|
|
|
|
|
3,548
|
|
Crude/Condensate Gathering Volumes (MBbl/d) (2) (5)
|
|
|
|
|
344
|
|
|
|
|
|
329
|
|
|
|
|
|
|
|
|
|
|
CO2
|
|
|
|
|
|
|
|
|
Southwest Colorado Production - Gross (Bcf/d) (6)
|
|
|
|
|
1.18
|
|
|
|
|
|
1.23
|
|
Southwest Colorado Production - Net (Bcf/d) (6)
|
|
|
|
|
0.59
|
|
|
|
|
|
0.58
|
|
Sacroc Oil Production - Gross (MBbl/d) (7)
|
|
|
|
|
30.54
|
|
|
|
|
|
35.73
|
|
Sacroc Oil Production - Net (MBbl/d) (8)
|
|
|
|
|
25.44
|
|
|
|
|
|
29.76
|
|
Yates Oil Production - Gross (MBbl/d) (7)
|
|
|
|
|
19.03
|
|
|
|
|
|
18.79
|
|
Yates Oil Production - Net (MBbl/d) (8)
|
|
|
|
|
8.47
|
|
|
|
|
|
8.43
|
|
Katz, Goldsmith, and Tall Cotton Oil Production - Gross (MBbl/d) (7)
|
|
|
|
|
6.83
|
|
|
|
|
|
5.23
|
|
Katz, Goldsmith, and Tall Cotton Oil Production - Net (MBbl/d) (8)
|
|
|
|
|
5.77
|
|
|
|
|
|
4.39
|
|
NGL Sales Volumes (MBbl/d) (9)
|
|
|
|
|
9.90
|
|
|
|
|
|
10.01
|
|
Realized Weighted Average Oil Price per Bbl (10) (11)
|
|
|
|
$
|
59.55
|
|
|
|
|
$
|
72.62
|
|
Realized Weighted Average NGL Price per Bbl (11)
|
|
|
|
$
|
13.32
|
|
|
|
|
$
|
20.70
|
|
|
|
|
|
|
|
|
|
|
Terminals
|
|
|
|
|
|
|
|
|
Liquids Leasable Capacity (MMBbl)
|
|
|
|
|
87.0
|
|
|
|
|
|
81.5
|
|
Liquids Utilization %
|
|
|
|
|
94.8
|
%
|
|
|
|
|
94.9
|
%
|
Bulk Transload Tonnage (MMtons) (12)
|
|
|
|
|
13.7
|
|
|
|
|
|
16.2
|
|
Ethanol (MMBbl)
|
|
|
|
|
15.3
|
|
|
|
|
|
16.0
|
|
|
|
|
|
|
|
|
|
|
Products Pipelines
|
|
|
|
|
|
|
|
|
Pacific, Calnev, and CFPL (MMBbl)
|
|
|
|
|
|
|
|
|
Gasoline (13)
|
|
|
|
|
68.0
|
|
|
|
|
|
66.8
|
|
Diesel
|
|
|
|
|
24.8
|
|
|
|
|
|
24.9
|
|
Jet Fuel
|
|
|
|
|
22.1
|
|
|
|
|
|
21.0
|
|
Sub-Total Refined Product Volumes - excl. Plantation and Parkway
|
|
|
|
|
114.9
|
|
|
|
|
|
112.7
|
|
Plantation (MMBbl) (14)
|
|
|
|
|
|
|
|
|
Gasoline
|
|
|
|
|
20.7
|
|
|
|
|
|
20.0
|
|
Diesel
|
|
|
|
|
4.7
|
|
|
|
|
|
5.2
|
|
Jet Fuel
|
|
|
|
|
3.0
|
|
|
|
|
|
3.5
|
|
Sub-Total Refined Product Volumes - Plantation
|
|
|
|
|
28.4
|
|
|
|
|
|
28.7
|
|
Parkway (MMBbl) (14)
|
|
|
|
|
|
|
|
|
Gasoline
|
|
|
|
|
2.7
|
|
|
|
|
|
1.6
|
|
Diesel
|
|
|
|
|
0.8
|
|
|
|
|
|
0.7
|
|
Jet Fuel
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
Sub-Total Refined Product Volumes - Parkway
|
|
|
|
|
3.5
|
|
|
|
|
|
2.3
|
|
Total (MMBbl)
|
|
|
|
|
|
|
|
|
Gasoline (13)
|
|
|
|
|
91.4
|
|
|
|
|
|
88.4
|
|
Diesel
|
|
|
|
|
30.3
|
|
|
|
|
|
30.8
|
|
Jet Fuel
|
|
|
|
|
25.1
|
|
|
|
|
|
24.5
|
|
Total Refined Product Volumes
|
|
|
|
|
146.8
|
|
|
|
|
|
143.7
|
|
NGLs (MMBbl) (15)
|
|
|
|
|
9.4
|
|
|
|
|
|
9.7
|
|
Crude and Condensate (MMBbl) (16)
|
|
|
|
|
30.9
|
|
|
|
|
|
18.5
|
|
Total Delivery Volumes (MMBbl)
|
|
|
|
|
187.1
|
|
|
|
|
|
171.9
|
|
Ethanol (MMBbl) (17)
|
|
|
|
|
10.1
|
|
|
|
|
|
9.9
|
|
|
|
|
|
|
|
|
|
|
Trans Mountain (MMBbls - mainline throughput)
|
|
|
|
|
28.6
|
|
|
|
|
|
27.6
|
|
|
|
|
(1)
|
|
Includes Texas Intrastates, Copano South Texas, KMNTP, Monterrey,
TransColorado, MEP, KMLA, FEP, TGP, EPNG, CIG, WIC, Cheyenne Plains,
SNG, Elba Express, Ruby, Sierrita, NGPL, and Citrus pipeline
volumes. Joint Venture throughput reported at KMI share.
|
(2)
|
|
Volumes for acquired pipelines are included for all periods.
|
(3)
|
|
Includes Texas Intrastates and KMNTP.
|
(4)
|
|
Includes Copano Oklahoma, Copano South Texas, Eagle Ford Gathering,
Copano, North Texas, Altamont, KinderHawk, Camino Real, Endeavor,
Bighorn, Webb/Duval Gatherers, Fort Union, EagleHawk, Red Cedar, and
Hiland Midstream throughput. Joint Venture throughput reported at
KMI share.
|
(5)
|
|
Includes Hiland Midstream, EagleHawk, and Camino Real. Joint Venture
throughput reported at KMI share.
|
(6)
|
|
Includes McElmo Dome and Doe Canyon sales volumes.
|
(7)
|
|
Represents 100% production from the field.
|
(8)
|
|
Represents KMI's net share of the production from the field.
|
(9)
|
|
Net to KMI.
|
(10)
|
|
Includes all KMI crude oil properties.
|
(11)
|
|
Hedge gains/losses for Oil and NGLs are included with Crude Oil.
|
(12)
|
|
Includes KMI's share of Joint Venture tonnage.
|
(13)
|
|
Gasoline volumes include ethanol pipeline volumes.
|
(14)
|
|
Plantation and Parkway reported at KMI share.
|
(15)
|
|
Includes Cochin and Cypress (KMI share).
|
(16)
|
|
Includes KMCC, Double Eagle (KMI share), and Double H.
|
(17)
|
|
Total ethanol handled including pipeline volumes included in
gasoline volumes above.
|
|
Kinder Morgan, Inc. and Subsidiaries
Preliminary Consolidated Balance Sheets
(Unaudited)
(In millions)
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2016
|
|
|
2015
|
ASSETS
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
175
|
|
|
|
$
|
229
|
|
Other current assets
|
|
|
2,306
|
|
|
|
2,595
|
|
Property, plant and equipment, net
|
|
|
41,042
|
|
|
|
40,547
|
|
Investments
|
|
|
6,035
|
|
|
|
6,040
|
|
Goodwill
|
|
|
23,801
|
|
|
|
23,790
|
|
Deferred charges and other assets
|
|
|
10,870
|
|
|
|
10,903
|
|
TOTAL ASSETS
|
|
|
$
|
84,229
|
|
|
|
$
|
84,104
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Short-term debt
|
|
|
$
|
1,702
|
|
|
|
$
|
821
|
|
Other current liabilities
|
|
|
2,694
|
|
|
|
3,244
|
|
Long-term debt
|
|
|
40,093
|
|
|
|
40,632
|
|
Preferred interest in general partner of KMP
|
|
|
100
|
|
|
|
100
|
|
Debt fair value adjustments
|
|
|
1,912
|
|
|
|
1,674
|
|
Other
|
|
|
2,182
|
|
|
|
2,230
|
|
Total liabilities
|
|
|
48,683
|
|
|
|
48,701
|
|
|
|
|
|
|
|
|
Shareholders' Equity
|
|
|
|
|
|
|
Accumulated other comprehensive loss
|
|
|
(414
|
)
|
|
|
(461
|
)
|
Other shareholders' equity
|
|
|
35,594
|
|
|
|
35,580
|
|
Total KMI equity
|
|
|
35,180
|
|
|
|
35,119
|
|
Noncontrolling interests
|
|
|
366
|
|
|
|
284
|
|
Total shareholders' equity
|
|
|
35,546
|
|
|
|
35,403
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
$
|
84,229
|
|
|
|
$
|
84,104
|
|
|
|
|
|
|
|
|
Debt, net of cash (1)
|
|
|
$
|
41,555
|
|
|
|
$
|
41,224
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA Twelve Months Ended
|
|
|
|
March 31,
|
|
|
December 31,
|
EBITDA (2)
|
|
|
2016
|
|
|
2015
|
Net income before certain items
|
|
|
$
|
1,650
|
|
|
|
$
|
1,649
|
|
Net income attributable to noncontrolling interests
|
|
|
(18
|
)
|
|
|
(18
|
)
|
DD&A and amortization of excess investments
|
|
|
2,701
|
|
|
|
2,683
|
|
Book taxes
|
|
|
993
|
|
|
|
976
|
|
Interest, net
|
|
|
2,079
|
|
|
|
2,082
|
|
EBITDA
|
|
|
$
|
7,405
|
|
|
|
$
|
7,372
|
|
|
|
|
|
|
|
|
Debt to EBITDA
|
|
|
5.6
|
|
|
|
5.6
|
|
|
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 of $65 million and less than $1
million as of March 31, 2016 and December 31, 2015, respectively, as
we have entered into swaps to convert that debt to US$.
|
(2)
|
|
EBITDA is net income before certain items, less net income
attributable to noncontrolling interests (before certain items),
plus DD&A (including KMI's share of certain equity investees' DD&A),
book taxes (including income tax allocated to the segments and KMI’s
share of certain equity investees’ book tax), and interest expense,
with any difference due to rounding.
|
