KINDER MORGAN, INC. (KMI)

Kinder Morgan, Inc. (KMI) is one of the largest energy infrastructure companies in North America, owning an interest in or operating approximately 82,000 miles of pipelines, 139 terminals, 702 Bcf of working natural gas storage capacity, and about 6.1 Bcf per year of renewable natural gas (RNG) generation capacity as of December 31, 2023. The company's pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO2, renewable fuels and other products, while its terminals store and handle gasoline, diesel, jet fuel, chemicals, petroleum coke, metals, ethanol and other renewable feedstocks. Its Natural Gas Pipelines segment includes approximately 44,000 wholly owned pipeline miles plus equity interests in about 27,000 additional miles, along with underground storage, LNG liquefaction and terminal facilities, and NGL fractionation assets, spanning major U.S. supply and demand regions including the West, Rocky Mountain, Midwest, Texas, Louisiana, Southeast and Northeast.

Revenues in this segment are largely derived from long-term, fee-based contracts (weighted average life of about six years for transportation contracts and eleven years for LNG-related agreements), supplemented by gathering, processing, and marketing activities. The Products Pipelines segment comprises crude oil, condensate, and refined petroleum products pipelines and associated terminals, a condensate processing (splitter) facility, and transmix processing operations, with major assets located in the Southeast and West Coast regions. During 2023 and early 2024, KMI completed several strategic acquisitions and expansion projects, most notably the $1,831 million acquisition of the STX Midstream pipeline system from NextEra Energy Partners, which added key Eagle Ford-to-Mexico and Gulf Coast natural gas infrastructure.

Other completed projects included the TGP East 300 Upgrade, Eagle Ford transport project, PHP expansion, three new RNG facilities, and the Greenholly pipeline expansion. Ongoing and announced projects include the TGP/SNG Evangeline Pass project supporting Venture Global’s Plaquemines LNG facility, the TVA Cumberland pipeline, KMTP system expansion, Central Texas pipeline, Tejas South to North expansion, 3Rivers Offload Phase II, and the CO2 Diamond M enhanced oil recovery expansion. Financially, KMI issued $1.5 billion in new senior notes in 2023 and $2.25 billion in February 2024, repaid $3.225 billion in maturing senior notes, and repurchased about 32 million shares for $522 million under an expanded $3 billion share buyback program, with roughly $1.5 billion in remaining repurchase capacity.

The company’s strategy emphasizes stable, fee-based transportation and storage assets, disciplined capital allocation, operational efficiency, and shareholder value creation, while it continues to evaluate potential acquisitions and divestitures. KMI operates in a highly competitive environment, competing with other pipeline and storage operators as well as alternative energy sources, with competition centered on location, rates, service flexibility, and reliability.