Kinder Morgan Files Q3 2024 10-Q

TL;DR

KMI filed its Q3 10-Q. Financials and ops details inside.

AI Summary

Kinder Morgan, Inc. filed its 10-Q for the period ending September 30, 2024. The filing covers the third quarter and the first nine months of the year, detailing financial performance and operational updates for the natural gas transmission company. Specific financial figures and operational metrics for this period are detailed within the report.

Why It Matters

This filing provides investors and analysts with the latest financial and operational data for Kinder Morgan, crucial for understanding the company's performance and future outlook in the energy sector.

Risk Assessment

Risk Level: medium — As a major energy infrastructure company, Kinder Morgan is subject to regulatory, commodity price, and operational risks inherent in the sector.

Key Players & Entities

• KINDER MORGAN, INC. (company) — Filer
• 20240930 (date) — Period of Report
• 713-369-9000 (phone_number) — Business Phone
• 001-35081 (other) — SEC File Number

FAQ

Filing Documents

• kmi-20240930.htm (10-Q) — 2510KB
• kmi-09302024exh41.htm (EX-4.1) — 103KB
• kmi-09302024ex101.htm (EX-10.1) — 381KB
• kmi-09302024ex221.htm (EX-22.1) — 1KB
• kmi-09302024ex311.htm (EX-31.1) — 11KB
• kmi-09302024ex312.htm (EX-31.2) — 11KB
• kmi-09302024ex321.htm (EX-32.1) — 5KB
• kmi-09302024ex322.htm (EX-32.2) — 5KB
• kmi-20240930_g1.gif (GRAPHIC) — 6KB
• 0001506307-24-000119.txt ( ) — 11455KB
• kmi-20240930.xsd (EX-101.SCH) — 50KB
• kmi-20240930_cal.xml (EX-101.CAL) — 77KB
• kmi-20240930_def.xml (EX-101.DEF) — 405KB
• kmi-20240930_lab.xml (EX-101.LAB) — 684KB
• kmi-20240930_pre.xml (EX-101.PRE) — 549KB
• kmi-20240930_htm.xml (XML) — 2052KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) Consolidated Statements of Income - Three and Nine Months Ended September 30, 2024 and 202 3 4 Consolidated Statements of Comprehensive Income - Three and Nine Months Ended Septem ber 30, 2024 and 202 3 5 Consolidated Balance Sheets - as of September 30, 2024 and December 31, 202 3 6 Consolidated Statements of Cash Flows - Nine Months Ended September 30, 2024 and 202 3 7 Consolidated Statements of Stockholders' Equity - Three and Nine Months Ended September 30, 2024 and 202 3 9

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 10 Note 1 . General 10 Note 2. Acquisition s and Divestitures 11 Note 3. Losses on Impairments 12 Note 4. Debt 13 Note 5. Stockholders ' Equity 14 Note 6. Risk Management 15 Note 7. Revenue Recognition 20 Note 8. Reportable Segments 23 Note 9. Income Taxes 24 Note 10. Litigation and Environmental 25 Note 11. Recent Accounting Pronouncements 29 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations General and Basis of Presentation 30 Results of Operations 30 Overview 30 Consolidated Earnings Results 34 Non-GAAP Financial Measures 37 Segment Earnings Results 41 Liquidity and Capital Resources 49 Summarized Combined Financial Information for Guarantee of Securities of Subsidiaries 55 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 56 Item 4.

Controls and Procedures

Controls and Procedures 56

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 56 Item 1A.

Risk Factors

Risk Factors 56 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 56 Item 3. Defaults Upon Senior Securities 56 Item 4. Mine Safety Disclosures 56 Item 5. Other Information 56 Item 6. Exhibits 57 Signature 58 1 KINDER MORGAN, INC. AND SUBSIDIARIES GLOSSARY Company Abbreviations EPNG = El Paso Natural Gas Company, L.L.C. KMLT = Kinder Morgan Liquid Terminals, LLC KMBT = Kinder Morgan Bulk Terminals, Inc. Ruby = Ruby Pipeline Holding Company, L.L.C. KMI = Kinder Morgan, Inc. and its majority-owned and/or controlled subsidiaries SNG = Southern Natural Gas Company, L.L.C. TGP = Tennessee Gas Pipeline Company, L.L.C. Unless the context otherwise requires, references to "we," "us," "our," or "the Company" are intended to mean Kinder Morgan, Inc. and its majority-owned and/or controlled subsidiaries. Common Industry and Other Terms /d = per day MBbl = thousand barrels Bbl = barrels MMBbl = million barrels BBtu = billion British Thermal Units MMtons = million tons Bcf = billion cubic feet NGL = natural gas liquids CERCLA = Comprehensive Environmental Response, Compensation and Liability Act NYMEX = New York Mercantile Exchange OTC = over-the-counter CO 2 = carbon dioxide or our CO 2 business segment RIN = Renewable Identification Number DD&A = depreciation, depletion and amortization RNG = Renewable natural gas EPA = U.S. Environmental Protection Agency ROU = Right-of-Use FASB = Financial Accounting Standards Board U.S. = United States of America GAAP = U.S. Generally Accepted Accounting Principles WTI = West Texas Intermediate LLC = limited liability company 2 Information Regarding Forward-Looking Statements This report includes forward-looking statements. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts. They use words such as "anticipate," "believe," "intend," "plan," "projection," "forecast," "strategy," "outlook,"

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. KINDER MORGAN, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts, unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenues Services $ 2,215 $ 2,087 $ 6,625 $ 6,201 Commodity sales 1,441 1,785 4,307 4,991 Other 43 35 181 104 Total Revenues 3,699 3,907 11,113 11,296 Operating Costs, Expenses and Other Costs of sales (exclusive of items shown separately below) 1,024 1,405 3,098 3,591 Operations and maintenance 790 738 2,211 2,062 Depreciation, depletion and amortization 587 561 1,758 1,683 General and administrative 176 162 530 497 Taxes, other than income taxes 107 106 327 319 Loss (gain) on divestitures, net 1 ( 3 ) ( 76 ) ( 16 ) Other income, net ( 1 ) — ( 11 ) ( 2 ) Total Operating Costs, Expenses and Other 2,684 2,969 7,837 8,134 Operating Income 1,015 938 3,276 3,162 Other Income (Expense) Earnings from equity investments 211 234 662 607 Amortization of excess cost of equity investments ( 12 ) ( 18 ) ( 37 ) ( 54 ) Interest, net ( 466 ) ( 457 ) ( 1,402 ) ( 1,345 ) Other, net 16 3 17 7 Total Other Expense ( 251 ) ( 238 ) ( 760 ) ( 785 ) Income Before Income Taxes 764 700 2,516 2,377 Income Tax Expense ( 113 ) ( 145 ) ( 490 ) ( 509 ) Net Income 651 555 2,026 1,868 Net Income Attributable to Noncontrolling Interests ( 26 ) ( 23 ) ( 80 ) ( 71 ) Net Income Attributable to Kinder Morgan, Inc. $ 625 $ 532 $ 1,946 $ 1,797 Class P Common Stock Basic and Diluted Earnings Per Share $ 0.28 $ 0.24 $ 0.87 $ 0.80 Basic and Diluted Weighted Average Shares Outstanding 2,221 2,230 2,220 2,238 The accompanying notes are an integral part of these consolidated financial statements. 4 KINDER MORGAN, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions, unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net income $ 651 $ 555 $ 2

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. General Organization We are one of the largest energy infrastructure companies in North America. We own an interest in or operate approximately 79,000 miles of pipelines, 139 terminals, 702 Bcf of working natural gas storage capacity and have RNG generation capacity of approximately 6.1 Bcf per year of gross production. Our pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO 2 , renewable fuels and other products, and our terminals store and handle various commodities including gasoline, diesel fuel, jet fuel, chemicals, metals, petroleum coke, and ethanol and other renewable fuels and feedstocks. Basis of Presentation General Our accompanying unaudited consolidated financial statements have been prepared under the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These rules and regulations conform to the accounting principles contained in the FASB's Accounting Standards Codification (ASC), the single source of GAAP. In compliance with such rules and regulations, all significant intercompany items have been eliminated in consolidation. In our opinion, all adjustments, which are of a normal and recurring nature, considered necessary for a fair statement of our financial position and operating results for the interim periods have been included in the accompanying consolidated financial statements, and certain amounts from prior periods have been reclassified to conform to the current presentation. Interim results are not necessarily indicative of results for a full year; accordingly, you should read these consolidated financial statements in conjunction with our consolidated financial statements and related notes included in our 2023 Form 10-K. The accompanying unaudited consolidated financial statements include our accounts and the accounts of our subsidiaries over which we have control or are the primary beneficiary. We evaluate ou

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