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 Feb. 15, 2016, to shareholders of record as of the close of business on Feb. 1, 2016. This is down from $0.51 per share ($2.04 annualized) for the third quarter of 2015. Consistent with KMI’s 2016 guidance provided on Dec. 8, 2015, KMI expects to declare dividends of $0.50 per share for 2016 and use cash in excess of dividend payments to fully fund growth investments.
“We are pleased with KMI’s business performance for the year especially in light of a tremendously challenging commodity environment, and we are glad to have generated the greatest amount of annual distributable cash flow in the company’s history along with a 7 percent increase in our DCF per share year-over-year,” said Richard D. Kinder, executive chairman. “However, we were disappointed by KMI’s stock performance, which declined 65 percent during 2015.
“The decision to reduce our dividend was very difficult and was a direct result of the rapid and significant disconnect between the performance of our business and the performance of our stock. We believe this bold move is in the best interest of the company and our shareholders. We expect the reduced dividend has completely eliminated our need to access the capital markets to fund growth projects in 2016. This insulates us from challenging capital markets and significantly enhances our credit profile. Moreover, by reducing the dividend and high-grading our backlog, we do not expect to need to access the capital markets to fund our growth projects for the foreseeable future beyond 2016.
“Additionally, as our future cash flow exceeds our investment needs, we are in an improved position to return value to shareholders. While the markets appear to have begun 2016 on the same sour note on which they left 2015, we are confident that we are one of the best positioned companies to withstand these headwinds.”
President and CEO Steve Kean said, “While our 2015 distributable cash flow was below budget, it was up from 2014, and we are pleased with our results especially in light of multiple factors which moved against us during the year, including the oil and NGL markets, coal exports and steel production. Once again, Kinder Morgan demonstrated that our large diversified portfolio of fee-based assets can produce stable results even in extremely tumultuous market conditions. KMI produced distributable cash flow before certain items of $0.55 per common share for the fourth quarter, resulting in excess cash coverage above our dividend of $953 million for the quarter and total coverage of $1.181 billion for the year. For the fourth quarter, our five business segments produced $1.984 billion in segment earnings before DD&A and certain items, up 1 percent from the fourth quarter of 2014, primarily driven by increases in our Products Pipelines and Natural Gas Pipelines segments partially offset by declines in our CO2 and Terminals segments.
“As a result of the current challenging capital markets, we are focused on high-grading our backlog to allocate capital to the highest return opportunities, including efforts to reduce spend, improve returns and selectively joint venture projects where appropriate. We have reduced our expected 2016 spend by approximately $900 million, reduced our backlog by $3.1 billion from the third quarter of 2015 and expect further reductions in the coming months as we continue to high-grade our capital investments.
“In light of the continued weak commodity price environment, we continue to closely monitor our counterparty exposure. However, we are a diverse company with operations across a broad set of industries and we have a large customer base with only a few customers that account for more than 1 percent of our annual revenues. Additionally, the great majority of our largest customers remain solidly investment grade,” Kean said.
KMI reported fourth quarter distributable cash flow before certain items available to common shareholders of $1.233 billion versus $1.278 billion for the comparable period in 2014. This decrease for the quarter is primarily attributable to a decline in our CO2 segment and higher interest expense, 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 fourth quarter compared to $0.60 for the fourth quarter last year. Fourth quarter net income before certain items was $491 million compared to $664 million for the same period in 2014. The decrease in net income before certain items was driven by higher book taxes, DD&A expense and interest expense. Certain items after tax in the fourth quarter totaled a net loss of $1.100 billion driven largely by an estimated non-cash pre-tax goodwill impairment charge of $1.150 billion triggered by a decline in market values of KMI and comparable midstream companies resulting in a fair value of our Natural Gas Pipelines non-regulated midstream assets below the book value. The certain items loss also included a non-cash pre-tax impairment charge related to the indefinite delay of certain of our CO2 segment’s source and transportation projects due to lower projected demand for CO2, partially offset by a customer contract buyout payment to terminate a long-term natural gas transport contract. The 2015 fourth quarter certain items loss compares to a net loss of $98 million for the same period of 2014. For the quarter, the net loss after certain items was $609 million compared to net income of $566 million for the fourth quarter of 2014.
For the full year, KMI reported distributable cash flow before certain items available to common shareholders of $4.699 billion versus $2.618 billion for 2014, an increase of 79 percent, due primarily to the KMI merger transactions completed in Nov. 2014. 2015 distributable cash flow per common share before certain items was $2.14 compared to $2.00 for the previous year, an increase of 7 percent. Net income before certain items for 2015 was $1.649 billion compared to $2.340 billion for 2014. The decrease in net income before certain items was driven by higher DD&A expense, book taxes and interest expense. Certain items after tax for the year totaled a net loss of $1.314 billion compared to a net gain of $103 million for 2014. The year-over-year decline in certain items after tax was driven by non-cash pre-tax goodwill and asset impairment charges taken during 2015. For the full year, net income after certain items was $335 million compared to $2.443 billion for 2014.
On Dec. 8, 2015, KMI issued its preliminary financial projections for 2016. Since providing this guidance, the company has updated its 2016 budget to reflect current commodity price and foreign exchange rate expectations as well as its high-graded investment plan. As a result, for 2016, KMI expects to declare dividends of $0.50 per share, generate approximately $4.9 billion of distributable cash flow available to equity holders and approximately $4.7 billion of distributable cash flow available to common shareholders (i.e., after payment of preferred dividends) and generate approximately $3.6 billion of cash flow in excess of its dividend. KMI’s revised growth capital budget for 2016 is approximately $3.3 billion which is a reduction of approximately $900 million from the preliminary 2016 guidance. These expectations assume an average 2016 West Texas Intermediate (WTI) crude oil price of $38 per barrel, an average 2016 Henry Hub natural gas price of $2.50 per MMBtu and interest rates consistent with the current forward curve.
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, where 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 WTI crude oil price impacts distributable cash flow by approximately $7 million and each $0.10 per MMBtu change in the price of natural gas impacts distributable cash flow by approximately $1.2 million.
Overview of Business Segments
The Natural Gas Pipelines business produced fourth quarter segment earnings before DD&A and certain items of $1.098 billion, as compared to $1.057 billion for the same period last year. For the full year, Natural Gas Pipelines generated $4.125 billion in segment earnings before DD&A and certain items, a 1 percent increase over 2014.
“Growth in this segment compared to the fourth 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,” Kean said. “Fourth quarter growth was partially offset by lower commodity prices affecting certain of our midstream gathering and processing assets. The expiration of a minimum volume contract at KinderHawk also negatively impacted earnings.”
Natural gas transport volumes were up 5 percent compared to the fourth quarter last year, driven by higher volumes on Texas Intrastate pipelines due to higher demand including increased deliveries of gas into Mexico, and higher throughput on the El Paso Natural Gas pipeline (EPNG) due to higher deliveries of gas into Mexico and greater power generation load. Throughput on our natural gas pipelines for power generation was up 10 percent compared to the fourth quarter of 2014 and up 16 percent for the full year compared to 2014.
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 8.5 Bcf/d. Of the natural gas consumed in the United States, about 38 percent moves on KMI pipelines. Future opportunities include the need for more capacity in the Northeast, greater demand for gas-fired power generation across the country, liquefied natural gas (LNG) exports and exports to Mexico.
The CO2 business produced fourth quarter segment earnings before DD&A and certain items of $292 million, down from $369 million for the same period in 2014. For the full year, the CO2 business generated $1.141 billion in segment earnings before DD&A and certain items, down 22 percent from 2014 due to lower commodity prices.
“As expected, lower commodity prices impacted earnings in this segment, but our SACROC Unit continued to generate strong production,” Kean said. “SACROC generated record annual gross oil production during the full year 2015, up 2 percent compared to 2014. Combined oil production across all of our fields was up 2 percent compared to 2014 on a both a gross and net to Kinder Morgan basis. Net NGL sales volumes for 2015 of 10.4 thousand barrels per day (MBbl/d) at our Snyder Gas Plant were up 3 percent compared to 2014. In addition, we continued to offset some of the impact from lower commodity prices by generating cost savings across our CO2business,” Kean said. Kinder Morgan’s 2015 budget assumed an average WTI crude oil price of approximately $70 per barrel. The commodity price impact on the CO2 segment was higher than the sensitivities announced at the beginning of the year (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) driven by the lower ratio of NGL prices to crude prices compared to the ratio assumed in KMI’s budget.
Net CO2 volumes increased 15 percent versus the fourth quarter of 2014, but were below plan for the quarter. Combined gross oil production volumes averaged 56.9 MBbl/d for the fourth quarter, down 6 percent from 60.3 MBbl/d for the same period in 2014. Combined oil production net to Kinder Morgan was down 5 percent compared to the fourth quarter of 2014. SACROC’s fourth quarter production was 11 percent below fourth quarter 2014 results and slightly below plan, and Yates production was slightly below fourth quarter 2014 results but above plan for the quarter. Fourth quarter Katz and Goldsmith production was above the same period in 2014, but well below plan. The average West Texas Intermediate (WTI) crude oil price for the fourth quarter was $42.18 per barrel versus $73.15 for the fourth quarter of 2014.
The Terminals business produced fourth quarter segment earnings before DD&A and certain items of $257 million, down 7 percent from $277 million for the same period in 2014. For the full year, the Terminals business generated $1.055 billion in segment earnings before DD&A and certain items, up 8 percent over the previous year.
“We experienced strong performance at our liquids terminals, which accounted for 74 percent of the segment’s 2015 earnings. This performance was driven by various expansions across our network including adding storage capacity at our Edmonton South terminal, as well as contributions from new operations at Edmonton Rail Terminal, our Geismar Methanol terminal and Deer Park Rail terminal. The 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,” Kean said.
“The reduction in fourth quarter earnings was driven by the bankruptcy filings by two of our coal customers, Arch Coal and Alpha Natural Resources, which had a negative year-over-year impact on the segment’s earnings of approximately $45 million. Continued weakness in global coal markets led to more than a 50 percent decline in both domestic and export coal volumes in the fourth quarter of 2015 versus the same period in 2014. Some of the coal volume impact on earnings was offset by long-term minimum tonnage commitments.”
The Products Pipelines business produced fourth quarter segment earnings before DD&A and certain items of $289 million, up 28 percent from $225 million for the comparable period in 2014. For the year, Products Pipelines generated $1.096 billion in segment earnings before DD&A and certain items, up 27 percent from the prior year.
“Growth in this segment compared to the fourth quarter of 2014 was driven by higher volumes on the Kinder Morgan Crude and Condensate Pipeline (KMCC), the startup of the first and second phases of the petroleum condensate processing facility along the Houston Ship Channel, and contributions from the Double H Pipeline, which was part of our Hiland acquisition. There was also improved performance in our Transmix business driven by improved margin and contract changes which reduced our inventory position compared to last year,” Kean said.
Total refined products volumes were up 1.9 percent for the fourth quarter versus the same period in 2014. Segment gasoline, diesel and jet fuel volumes were up 2.1 percent, 1.6 percent and 2.0 percent, respectively, compared to the fourth quarter of 2014. For the full year, total refined product volumes were up 3.1 percent compared to 2014. NGL volumes were about flat from the same period last year. Crude and condensate volumes were more than double the volumes from fourth quarter of 2014 and full year volumes were triple from full year 2014 volumes primarily due to the continued ramp up of volumes on KMCC and placing the Double H Pipeline in service.
Kinder Morgan Canada produced fourth quarter segment earnings before DD&A and certain items of $43 million versus the $44 million it reported for the same period in 2014. Demand for capacity remains high on the Trans Mountain pipeline system, with fourth quarter mainline throughput into Washington State more than 30 percent higher than the same period last year. The earnings decline was primarily due to an unfavorable foreign exchange rate, as the Canadian dollar declined in value relative to the U.S. dollar by approximately 17 percent since the fourth quarter of 2014. For the full year, Kinder Morgan Canada generated $163 million in segment earnings before DD&A and certain items, 10 percent below the same period of 2014 due to the decreased value of the Canadian dollar.
Natural Gas Pipelines
- On Dec. 1, 2015, TGP placed the next capacity increment of its $216 million South System Flexibility Project in service on schedule. 350,000 dekatherms per day (Dth/d) of the 500,000 Dth/d project is now in-service. The remaining capacity is scheduled to be placed in-service on Dec. 1, 2016.
- On Nov. 1, 2015, TGP placed the $353 million Broad Run Flexibility Project in-service on schedule. This project provides 590,000 Dth/d of firm transportation capacity from a receipt point on TGP’s Broad Run Lateral in West Virginia to delivery points in Mississippi and Louisiana. In 2014, Antero Resources was awarded 790,000 Dth/d of 15-year firm capacity under the Broad Run Flexibility and Broad Run Expansion projects. Estimated capital expenditures for the combined projects are approximately $800 million. 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. The anticipated in-service date of the Broad Run Expansion project is Nov. 1, 2017.
- Several TGP projects, with total estimated investment of $563 million, advanced through the FERC regulatory process during the quarter:
- FERC issued a notice of intent to prepare an environmental assessment for the proposed $178 million, 900,000 Dth/d Southwest Louisiana Supply Project, designed to serve the Cameron LNG export complex. In-service is expected by Feb 1, 2018.
- FERC issued a schedule for issuance of the environmental assessment for the $156 million, 145,000 Dth/d Susquehanna West Project designed to deliver Marcellus supply to an interconnection with National Fuel Gas Supply LLC. Issuance of a FERC certificate is expected in May 2016; the anticipated in-service date is Nov. 1, 2017.
- FERC issued a notice of intent to prepare an environmental assessment for the $142 million, 135,000 Dth/d Orion Project, designed to deliver Marcellus supply to an existing interconnection with Columbia Gas Transmission in Pike County, Pennsylvania. In-service is expected in June 2018.
- FERC issued a schedule for issuance of the environmental assessment for the $87 million, 180,000 Dth/d Triad Expansion Project, designed to serve a new Invenergy power plant in Lackawanna County, Pennsylvania. Issuance of a FERC certificate is expected in July 2016; the anticipated in-service date is Nov. 1, 2017.
- On Oct. 15, 2015, the FERC released a notice indicating that the issuance of the Environmental Assessment for the approximately $2 billion Elba Liquefaction Project will occur on Feb. 5, 2016. As a result, 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 first 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 (EEC) and Southern Natural Gas (SNG) pipelines coincides with the deadline for Elba Liquefaction (May 5, 2016). Initial in-service for these projects, with estimated investment totaling approximately $306 million, is projected to be late third quarter or early fourth quarter of 2016.
- Sierrita Gas Pipeline LLC announced in January 2016 that the joint venture plans to spend $56 million to expand the capacity of the pipeline. The approximately 60-mile, 36-inch diameter pipeline, which currently provides 201,000 Dth/d of firm transportation capacity, will be expanded to a total capacity of 431,000 Dth/d. Sierrita completed an open season for expansion capacity on Oct. 5, 2015, and awarded 230,000 Dth/d of expansion capacity to Comisión Federal de Electricidad (CFE) for a term of approximately 19.5 years beginning no later than April 2020. CFE has an option to increase the expansion capacity to 309,000 Dth/d, which would increase the pipeline’s capacity to 510,000 Dth/d. A FERC application filing is anticipated by early 2018, and subject to regulatory approvals, the expansion project is expected to be placed into service in the spring of 2020.
- On Nov. 20, 2015, TGP filed a FERC certificate application for both the market path and supply path portions of the Northeast Energy Direct Project (NED). The market path, from Wright, New York to Dracut, Massachusetts and beyond, currently has commitments totaling 652,762 Dth/d and is scalable up to 1.3 Bcf/d. TGP continues discussions with potential shippers from an open season that closed Oct. 29, introducing PowerServe, a new firm service for electric distribution companies and electric generators in the northeast, using NED facilities. The NED project has an expected in-service date of Nov. 1, 2018.
- On Dec. 10, KMI and Brookfield Infrastructure Partners L.P. acquired, from Myria Holdings, Inc., the 53 percent equity interest in Natural Gas Pipeline Company of America (NGPL) not already owned by them for a total purchase price of approximately $242 million. KMI invested approximately $136 million and increased its ownership interest from 20 percent to 50 percent. Brookfield Infrastructure invested approximately $106 million and increased its ownership from approximately 27 percent to 50 percent. KMI continues to operate NGPL, and expects that the transaction will be immediately accretive to KMI’s cash available to pay dividends.
- Kinder Morgan’s approximately $309 million Cow Canyon expansion project in southwestern Colorado is near completion. This project’s 200 million cubic feet per day (MMcf/d) CO2 compression facility and a portion of the production wells and associated field facilities have been placed into service.
- Construction continues on the approximately $214 million northern portion of the Cortez Pipeline expansion project, which will increase CO2 transportation capacity from 1.35 Bcf/d to 1.5 Bcf/d. The Cortez Pipeline transports CO2 from southwestern Colorado to eastern New Mexico and West Texas for use in enhanced oil recovery projects. The project is on schedule to be completed in the second quarter of 2016.
- In the first quarter of 2016, Kinder Morgan expects to close on the previously announced plan to acquire 15 refined products terminals with approximately 9.5 million barrels of storage and associated infrastructure in the United States in a transaction valued at approximately $350 million. Kinder Morgan and BP Products North America Inc. will form a joint venture limited liability company (JV) terminal business to own 14 of the acquired assets, which Kinder Morgan will operate and market on the JV’s behalf. The fifteenth terminal will be owned solely by KMI. In connection with the transaction, BP will enter into commercial agreements securing long-term storage and throughput capacity from the JV, which plans to market additional capacity to third-party customers.
- In December 2015, Kinder Morgan’s American Petroleum Tankers took delivery of the first of five medium-range Jones Act tankers being built at General Dynamics’ NASSCO shipyard in San Diego. Upon its delivery, the tanker, the Lone Star State, was immediately placed on long-term time charter with a major integrated oil company. The remaining four tankers are slated for delivery between early 2016 and mid-2017 and are also supported by long-term time charters with major shippers. All of the tankers will be 50,000-deadweight-ton, LNG conversion-ready product carriers, with a 330,000-barrel cargo capacity. The construction of these tankers remains on schedule and on budget.
- On Aug. 10, 2015, Kinder Morgan announced a further expansion of its growing fleet of Jones Act product tankers, executing a definitive agreement for $568 million with Philly Tankers LLC to take assignment of contracts for the construction of 4, new 50,000-deadweight-ton, Tier II tankers. The vessels, scheduled to be delivered between November 2016 and November 2017, will increase Kinder Morgan’s Jones Act tanker fleet to 16 ships by late 2017, of which 14 are under long-term contracts with creditworthy counterparties.
- Kinder Morgan continues to lead design and planning-permitting activities for the Base Line Terminal development, a new crude oil storage facility in Edmonton, Alberta. In March 2015, Kinder Morgan and Keyera Corp. announced the new 50-50 joint venture terminal and have entered into long-term, firm take-or-pay agreements with strong, creditworthy customers to build 4.8 million barrels of crude oil storage. KMI’s investment in the joint venture terminal is approximately CAD$372 million for an initial 12-tank build out, with commissioning expected to begin in the fourth quarter of 2017. Additionally, Kinder Morgan will invest capital outside of the joint venture for various pipeline connections and related infrastructure.
- Work continues on the Kinder Morgan Export Terminal (KMET) along the Houston Ship Channel. The approximately $220 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 the Kinder Morgan Galena Park terminal. The final U.S. Army Corps of Engineers’ permit was received in October 2015. KMET is anticipated to be in service in the first quarter of 2017.
- In December 2015, a new barge dock at Kinder Morgan’s Pasadena facility was placed into service, providing capacity to handle up to 50 additional barges per month. The dock marks the completion of a major infrastructure project in the Houston Ship Channel. The project also included the construction of 9 tanks totaling 1.2 million barrels of additional storage at Kinder Morgan’s Galena Park terminal which were phased into service in 2014 and 2015. Capital expenditures for the infrastructure project totaled approximately $138 million.
- Work continues at various Kinder Morgan facilities along the Houston Ship Channel in response to customers’ growing demand for refined product storage and dock services. Construction began on two new ship docks on the channel capable of loading ocean going vessels at rates up to 15,000 barrels per hour. The approximately $66 million project is supported by firm vessel commitments from existing customers at Kinder Morgan’s Galena Park and Pasadena terminals. The 2 docks are expected to be placed in-service in the second and fourth quarters of 2016, respectively.
- Volumes have continued to grow significantly on the Kinder Morgan Crude and Condensate (KMCC) system throughout 2015 as projects came on-line during the year. In December 2015, KMCC placed into service its new Marshall station and pipeline to connect additional Gonzales County production. KMCC is a 260-mile pipeline originating in the core of the Eagle Ford (Karnes, DeWitt and Gonzales counties) transporting crude and condensate to Texas Gulf Coast market outlets.
- Kinder Morgan continues to make progress on its outreach, surveying and permitting activities for the proposed Palmetto Pipeline while the company awaits the outcome of its appeal of the Department of Transportation’s decision to deny Palmetto’s application for a Certificate of Public Convenience and Necessity. Palmetto 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 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. A revised in-service date of December 2017 reflects additional permitting requirements for the project.
- Work continues on the company’s approximately $517 million Utopia East pipeline project. 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. Utopia East will have an initial design capacity of 50,000 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. Subject to permitting and regulatory approvals, the project remains on track for an in-service date of early 2018.
Kinder Morgan Canada
- Kinder Morgan Canada is currently seeking approval from the National Energy Board (NEB) for the Trans Mountain Expansion Project. The company filed its final closing argument with the NEB on Dec. 15, 2015, and presented its oral argument on Dec. 17, 2015. Final intervenor arguments were due Jan. 12, 2016, with the intervenor oral hearings commencing Jan. 19, 2016, and concluding on Feb. 5, 2016. The NEB recommendation is scheduled for May 20, 2016. Current legislation specifies that the federal government has 90 days following the NEB recommendations to issue its decision. 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 new federal government. The company expects the project to be in service by the third quarter of 2019. 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.
- On Oct. 30, 2015, KMI completed an offering of 32 million depository shares, each of which represents a 1/20th interest in a share of 1.6 million shares of 9.75 percent mandatory convertible preferred stock. Net proceeds were approximately $1.541 billion.
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 165 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, Jan. 20, at www.kindermorgan.com for a LIVE webcast conference call on the company’s fourth quarter earnings.