About Kinder Morgan

Kinder Morgan, Inc. operates as an energy infrastructure company in North America. As of December 31, 2023, the company owned an interest in or operated approximately 82,000 miles of pipelines, 139 termina ls, 702 billion cubic feet (Bcf) of working natural gas storage capacity and had RNG generation capacity of approximately 6.1 Bcf per year of gross production. The company’s pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO 2 (carbon dioxide or CO2 business segment), renewable fuels and other products, and its terminals store and handle various commodities including gasoline, diesel fuel, jet fuel, chemicals, petroleum coke, metals, and ethanol and other renewable fuels and feedstocks. Business Strategy The company’s business strategy is to focus on stable, fee-based energy transportation and storage assets that are central to the energy infrastructure and energy transition of growing markets within North America or served by the U.S. exports; increase utilization of its existing assets; exercise discipline in capital allocation decisions and in evaluating expansion projects and acquisition opportunities; and leverage economies of scale from asset expansions and acquisitions that fit within its strategy. Segments The company operates through Natural Gas Pipelines, Products Pipelines, Terminals, and CO2. Natural Gas Pipelines segment Natural Gas Pipelines business segment includes interstate and intrastate pipelines, underground storage facilities, the company’s LNG liquefaction and terminal facilities and NGL fractionation facilities, and includes both FERC regulated and non-FERC regulated assets. The company’s primary businesses in this segment consist of natural gas transportation, storage, sales, gathering, processing and treating, and various LNG services. Within this segment are approximately 44,000 miles of wholly owned natural gas pipelines and its equity interests in entities that have approximately 27,000 miles of natural gas pipelines, along with associated storage and supply lines for these transportation networks, which are strategically located throughout the North American natural gas pipeline grid. The company’s transportation network provides access to the major natural gas supply areas and consumers in the western U.S., Rocky Mountain, Midwest, Texas, Louisiana, Southeastern and Northeast regions. The company’s LNG terminal facilities also serve natural gas market areas in the southeast. The design capacity represents transmission, gathering, regasification or liquefaction capacity, depending on the nature of the asset. Natural Gas Pipelines Segment Contracts Revenues from the company’s interstate natural gas pipelines, related storage facilities and LNG terminals are primarily received under long-term fixed contracts. These long-term contracts are typically structured with a fixed fee reserving the right to transport or store natural gas and specify that the company receives the majority of its fee for making the capacity available, whether or not the customer actually chooses to utilize that capacity. Similarly, the company’s Texas Intrastate natural gas pipeline operations derive approximately 74% of its sales and transport margins from long-term transport and sales contracts. As contracts expire, the company has additional exposure to the longer term trends in supply and demand for natural gas. As of December 31, 2023, the remaining weighted average contract life of the company’s natural gas transportation contracts held by assets it owns or has equity interests in (including intrastate pipelines’ sales portfolio) was approximately six years and its LNG regasification and liquefaction and associated storage contracts were subscribed under long-term agreements with a weighted average remaining contract life of approximately 11 years. The company’s Midstream assets provide natural gas gathering and processing services. These assets are mostly fee-based, and the revenues and earnings it realizes from gathering natural gas, processing natural gas in order to remove NGL from the natural gas stream, and fractionating NGL into its base components, are affected by the volumes of natural gas made available to its systems. In addition to fee-based arrangements, some of which may include minimum volume commitments, the company also provides some services based on percent-of-proceeds, percent-of-index and keep-whole contracts. The company’s natural gas marketing activities generate revenues from the sale and delivery of natural gas purchased either directly from producers or from others on the open market. Products Pipelines segment Products Pipelines business segment consists of the company’s refined petroleum products, crude oil and condensate pipelines, and associated terminals, its condensate processing facility and its transmix processing facilities. Products Pipelines Segment Contracts The profitability of the company’s refined petroleum products pipeline transportation business generally is driven by the volume of refined petroleum products that it transports and the prices it receives for services. The company’s crude, condensate and refined petroleum products transportation services are primarily provided pursuant to either FERC or state tariffs or long-term contracts that normally contain minimum volume commitments. The company’s petroleum condensate processing facility splits condensate into its various components, such as light and heavy naphtha, under a long-term fee-based agreement with a major integrated oil company. The company’s crude oil marketing activities generate revenues from the sale and delivery of crude oil and condensate purchased either directly from producers or from others on the open market. Terminals The company’s Terminals business segment includes the operations of its refined petroleum product, chemical, renewable fuel and other liquid terminal facilities (other than those included in the Products Pipelines business segment) and all of its petroleum coke, metal and ores facilities. The company’s terminals are located primarily near large U.S. urban centers. The company often classifies its terminal operations based on the handling of either liquids or dry-bulk material products. In addition, the company’s Terminals’ operations include Jones Act-qualified product tankers that provide marine transportation of crude oil, condensate, refined petroleum products and renewable fuel between U.S. ports. Terminals Segment Contracts The company’s liquids terminals business generally enters into long-term contracts that require the customer to pay its fee regardless of whether they use the capacity. Thus, similar to its natural gas pipelines business, the company’s liquids terminals business is less sensitive to short-term changes in supply and demand. CO2 segment CO2 business segment produces, transports and markets CO2 for use in enhanced oil recovery projects as a flooding medium for recovering crude oil from mature oil fields. The company also owns and operates oil and gas producing fields, and RNG, LNG and landfill GTE facilities. The company’s CO2 pipelines and related assets allow it to market a complete package of CO2 supply and transportation services to its customers. CO2 Segment Contracts The company’s CO2 source and transportation business primarily has third-party contracts with minimum volume requirements, which as of December 31, 2023 had a remaining average contract life of approximately seven years. CO2 Segment Competition The company’s primary competitors for the sale of CO2 include suppliers that have an ownership interest in McElmo Dome, Bravo Dome and Sheep Mountain CO2 resources. The company’s ownership interests in the Central Basin, Cortez and Bravo pipelines are in direct competition with other CO2 pipelines. The company competes with other interest owners in the McElmo Dome unit and the Bravo Dome unit for transportation of CO2 to the Denver City, Texas market area. Major Customers The company’s revenue is derived from a wide customer base. Regulations The company operates its interstate natural gas pipeline and storage facilities subject to the jurisdiction of the Federal Energy Regulatory Commission (FERC) and the provisions of the Natural Gas Act of 1938 (NGA), the Natural Gas Policy Act of 1978 (NGPA), and the Energy Policy Act of 2005 (the Energy Policy Act). Some of the company’s the U.S. refined petroleum products and crude oil gathering and transmission pipelines are interstate common carrier pipelines, subject to regulation by the FERC under the Interstate Commerce Act, or ICA. The intrastate operations of the company’s crude oil and liquids pipelines and natural gas pipelines and storage facilities in Texas are subject to regulation with respect to such intrastate transportation by the RCT. The company is also subject to pipeline safety regulations issued by PHMSA as well as any states that are certified by PHMSA to regulate pipeline safety for intrastate pipes in their respective states. The company is subject to pipeline safety regulations issued by the United States Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA), as well as any states that are certified by PHMSA to regulate pipeline safety for intrastate pipelines in their respective states. These regulations apply to pipelines and pipeline facilities, including associated underground natural gas storage, terminals and LNG facilities. PHMSA regulations in particular, require the company to develop and maintain pipeline integrity management programs to evaluate its pipelines and take additional measures to protect pipeline segments located in what are referred to as High Consequence Areas (HCAs) for both gas and liquid pipelines, where a release could potentially have the most adverse consequences. Additionally, PHMSA recently issued requirements that require the company to conduct additional assessments to identify risks in what are referred to as Moderate Consequence Areas (MCAs) for gas pipelines. The company is also subject to the requirements of federal and state agencies, including, where appropriate, the Occupational Safety and Health Administration (OSHA) that address, among other things, employee health and safety. The company is subject to the Jones Act and other federal laws that restrict maritime transportation (between the U.S. departure and destination points) to vessels built and registered in the U.S. and owned and crewed by U.S. citizens. As a result, the company monitors the foreign ownership of its common stock and under certain circumstances consistent with its certificate of incorporation, it has the right to redeem shares of its common stock owned by non-U.S. citizens. The derivative contracts that the company uses include exchange-traded and OTC commodity financial instruments, such as futures and options contracts, fixed price swaps and basis swaps. The company generates both hazardous and non-hazardous wastes that are subject to the requirements of the Federal Resource Conservation and Recovery Act (RCRA) and comparable state statutes. RCRA establishes standards for the generation, treatment, storage, transport, and disposal of solid wastes, including hazardous wastes. The company’s operations are subject to the Clean Air Act, its implementing regulations, and analogous state statutes and regulations. History The company was founded in 1936. The company was incorporated in 2006. It was formerly known as Kinder Morgan Holdco LLC and changed its name to Kinder Morgan, Inc. in 2011.