HOUSTON–(BUSINESS WIRE)–Kinder Morgan, Inc. (NYSE: KMI) today announced that its board of directors approved an increase in its quarterly cash dividend to $0.51 ($2.04 annualized) payable on Nov. 13, 2015, to shareholders of record as of the close of business on Nov. 2, 2015. This represents a 16 percent increase over the third quarter 2014 dividend of $0.44 per share ($1.76 annualized) and is up from $0.49 per share ($1.96 annualized) for the second quarter of 2015. This is KMI’s 15th quarterly dividend raise since it went public in February 2011.
“We are pleased with KMI’s steady third quarter results that cover our 16 percent dividend increase to $0.51 per share. We remain on track to meet our full-year dividend target of $2.00 per share with substantial excess cash coverage despite continued challenging conditions in the energy sector,” said Executive Chairman Richard D. Kinder. “While we are largely insulated from commodity price impacts due to our predominately take-or-pay supported cash flows, we are not totally immune.
“As a company, we remain focused on our goals to continue to return cash to our shareholders in increasing amounts, to maintain our investment grade ratings and leverage targets while funding our business in the most efficient and economical way possible. We believe an appropriate response to the challenging current equity markets is to identify alternative funding sources that help us meet our goals and have a lower expected long-term cost of capital than our common equity. We have identified alternative sources and have selected one of these to pursue, as appropriate, to meet our equity funding requirements for the balance of 2015 and for the first half of 2016. This would eliminate our need to access the common equity markets through mid-next year. Additionally, while we are at the beginning of our budget process for 2016, we currently expect to increase our declared dividend for 2016 by 6 to 10 percent over the 2015 declared dividend of $2.00 per share. We expect this range will provide the flexibility for us to meet our dividend and have excess cash coverage.”
President and CEO Steve Kean said, “We produced distributable cash flow before certain items of $0.51 per share for the third quarter resulting in flat coverage for the quarter and total excess coverage of $228 million for the first nine months of the year. Our five business segments produced $1.839 billion in segment earnings before DD&A and certain items, down 1 percent from the third quarter of 2014, primarily driven by a decline in our CO2 segment partially offset by increases in our Products Pipelines and Terminals segments.
“Our current project backlog of expansion and joint venture investments is $21.3 billion. Since the second quarter earnings release, we have placed nearly $400 million of completed projects into service, removed approximately $1.0 billion in projects (primarily in the CO2 segment as a result of CO2 enhanced oil recovery as well as additional source and transportation projects being delayed beyond the time horizon of our five-year backlog due to lower commodity prices) and added approximately $700 million driven by new projects. Projects in the backlog have a high certainty of completion and drive future growth at the company across all of our business segments.”
KMI reported third quarter distributable cash flow before certain items of $1.129 billion versus $435 million for the comparable period in 2014. This increase is primarily attributable to the KMI merger transactions completed in November 2014. Distributable cash flow per share before certain items was $0.51 compared to $0.42 for the third quarter last year. Third quarter net income before certain items was $348 million compared to $537 million for the same period in 2014. The decrease in net income before certain items was driven by higher DD&A expense and interest expense. Certain items after tax in the third quarter totaled a net loss of $165 million driven largely by a non-cash pre-tax impairment charge related to the Goldsmith field in our CO2 segment compared to a net gain of $242 million for the same period last year. Net income after certain items was $183 million compared to $779 million for the third quarter last year.
For the first nine months of the year, KMI reported distributable cash flow before certain items of $3.466 billion versus $1.340 billion for the comparable period in 2014, due primarily to the KMI merger transactions completed in November 2014. Distributable cash flow per share before certain items for the first nine months of the year was $1.58 compared to $1.29 for the same period last year. Net income before certain items was $1.158 billion compared to $1.676 billion for the first three quarters of 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 first nine months of the year totaled a net loss of $214 million compared to a net gain of $201 million for the same period last year. For the first nine months of the year, net income was $944 million compared to $1.877 billion for the same period last year.
Overview of Business Segments
The Natural Gas Pipelines business produced third quarter segment earnings before DD&A and certain items of $975 million, as compared to $978 million for the same period last year. Natural Gas Pipelines is on track to slightly exceed its published annual budget of 1 percent growth.
“Growth in this segment compared to the third quarter last year was led by contributions from the Hiland acquisition and improved performance on the El Paso Natural Gas pipeline (EPNG) driven by demand from Mexico,” Kean said. “Third quarter growth was partially offset by lower commodity prices affecting certain of our midstream gathering and processing assets. Earnings were also negatively impacted at Kinder Morgan Louisiana Pipeline as a result of a 2014 customer contract buyout, at KinderHawk due to the expiration of a minimum volume contract, and at Cheyenne Plains pipeline primarily as a result of contract expirations.”
Natural gas transport volumes were up 5 percent compared to the third quarter last year driven by higher volumes on Texas Intrastate pipelines due to higher Eagle Ford Shale production and increased deliveries of gas into Mexico, higher throughput on Tennessee Gas Pipeline (TGP) resulting from new projects going in service, incremental Utica production as well as greater power generation demand, and higher volume on the EPNG pipeline driven by demand from Mexico as well as greater power generation demand. Throughput on our natural gas pipelines for power generation was up 15 percent compared to the third quarter of 2014 and up 18 percent through the first nine months of 2015 versus the same period in 2014.
Natural gas continues to be the fuel of choice for America’s future energy needs, and industry experts are projecting gas demand increases of over 40 percent to nearly 110 billion cubic feet per day (Bcf/d) over the next 10 years. Over the last year and a half, KMI has entered into new and pending firm transport capacity commitments totaling 9.1 Bcf/d, including 400 million cubic feet per day (MMcf/d) added this quarter. KMI pipelines currently move about one-third of the natural gas consumed in the United States. Future opportunities include the need for more capacity in the Northeast, greater national demand for gas-fired power generation in general, liquefied natural gas (LNG) exports and exports to Mexico. KMI currently has a backlog of natural gas projects of approximately $9.1 billion.
The CO2 business produced third quarter segment earnings before DD&A and certain items of $282 million, down from $363 million for the same period in 2014. The CO2 business is expected to be below its annual budget of an 8 percent decline from 2014 due to lower commodity prices.
“As expected, lower commodity prices impacted earnings overall, but our SACROC Unit continued to generate strong production,” Kean said. “SACROC gross oil production in the third quarter averaged 32.5 thousand barrels per day (MBbl/d), down 2 percent from the third quarter last year, but up 6 percent for the nine months of the year compared to the same period last year and is on track for record annual production. NGL sales volumes of 21.0 MBbl/d at our Snyder Gas Plant were up 3 percent from the third quarter last year. In addition, we continued to offset some of the impact from lower commodity prices by generating cost savings across our CO2 business. While net CO2 volumes increased versus the third quarter of 2014, they were below plan for the quarter. CO2 demand has remained relatively stable, but is not currently growing due to customer capital constraints related to current market conditions.”
Combined gross oil production volumes averaged 57.1 MBbl/d for the third quarter, up slightly from 57.0 MBbl/d in the same period last year. Oil production net to Kinder Morgan was down 2 percent compared to the same period last year. SACROC’s third quarter production was slightly below third quarter 2014 results and plan, and Yates produced solid results but was slightly below both third quarter 2014 results and plan. Third quarter Katz and Goldsmith production was above the same period last year, but well below plan. The average West Texas Intermediate (WTI) crude oil price for the third quarter was $46.43 per barrel versus $97.17 for the third quarter of 2014. 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 in the third quarter 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 our budget.
The Terminals business produced third quarter segment earnings before DD&A and certain items of $263 million, up 6 percent from $247 million for the same period in 2014. The Terminals business is expected to be below its published annual budget of 20 percent growth.
“Approximately 21 percent of the growth in the third quarter 2015 was organic versus the same period in 2014, with the remainder coming from acquisitions,” Kean said. “The increase in third quarter earnings was led by strong performance at our liquids terminals, driven by various expansions across our network including adding incremental storage capacity at our Edmonton South terminal, as well as contributions from new operations at our Geismar Methanol terminal, Deer Park Rail terminal and the Edmonton Rail Terminal, a 50-50 joint venture with Imperial Oil Ltd. The Jones Act tanker and Vopak terminals acquisitions also contributed significantly to growth in this segment. Earnings were impacted by a softening of the domestic steel market and continued weakness in global coal markets which has led to a decline in coal export volumes of 50 percent in the third quarter of 2015 versus the same period last year. However, the coal volume impact on earnings was partially offset by long-term minimum tonnage commitments with customers. Weakness in our coal business was also impacted by the bankruptcy of one of our customers, Alpha Natural Resources. Overall, our liquids throughput increased 26 percent and our bulk volume declined 17 percent this quarter compared to the third quarter of 2014.”
For the third quarter, Terminals and Products Pipelines combined handled 25.7 million barrels of ethanol, down from 27.9 million barrels for the same period last year. The decline reflects the company’s previously announced sale of certain smaller terminal facilities to Watco Companies in exchange for an incremental equity interest in Watco as well as the opportunistic conversion of storage from ethanol to gasoline service in certain markets. KMI currently handles approximately one-third of the ethanol used in the United States.
The Products Pipelines business produced third quarter segment earnings before DD&A and certain items of $287 million, up 29 percent from $222 million for the comparable period in 2014. For the year, Products Pipelines expects to be slightly below its published annual budget of 29 percent growth.
“Growth in this segment compared to the third 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, contributions from the Double H Pipeline, which was part of our Hiland acquisition, improved performance on our SFPP system driven by greater refined products throughput and contributions from the Cochin reversal project,” Kean said.
Total refined products volumes were up 2.5 percent for the third quarter versus the same period in 2014. Segment diesel and jet fuel volumes were up 4.7 percent and 6.1 percent compared to the third quarter of 2014, respectively. NGL volumes increased 63.5 percent from the same period last year due to completion of the reversal project on Cochin. Crude and condensate volumes were more than three times higher than the third quarter last year primarily due to the continued ramp up of volumes on KMCC and placing the Double H Pipeline in service.
Kinder Morgan Canada produced third quarter segment earnings before DD&A and certain items of $42 million versus the $50 million it reported for the same period in 2014. Demand for capacity remains high on the Trans Mountain pipeline system, with third 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 third quarter of 2014. Kinder Morgan Canada expects to come in below its published annual budget of 1 percent growth due to expected continued weakness in the Canadian dollar.
Natural Gas Pipelines CO2 Terminals Products Pipelines Kinder Morgan Canada Financings 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 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. Kinder Morgan is the largest midstream and third largest energy company in North America with an enterprise value of approximately $115 billion. For more information please visit www.kindermorgan.com. Please join Kinder Morgan at 4:30 p.m. Eastern Time on Wednesday, Oct. 21, at www.kindermorgan.com for a LIVE webcast conference call on the company’s third quarter earnings. The non-generally accepted accounting principles, or non-GAAP, financial measures of distributable cash flow before certain items, both in the aggregate and per share, and segment earnings before depreciation, depletion, amortization and amortization of excess cost of equity investments, or DD&A, and certain items, are presented in this news release. Distributable cash flow before certain items is a significant metric used by us and by external users of our financial statements, such as investors, research analysts, commercial banks and others, to compare basic cash flows generated by us to the cash dividends we expect to pay our shareholders on an ongoing basis. Management uses this metric to evaluate our overall performance. Distributable cash flow before certain items is also an important non-GAAP financial measure for our shareholders because it serves as an indicator of our success in providing a cash return on investment. This financial measure indicates to investors whether or not we are generating cash flow at a level that can sustain or support an increase in the quarterly dividends we are paying. Distributable cash flow before certain items is also a quantitative measure used in the investment community because the value of a share of an entity like KMI that pays out a substantial proportion of its cash flow is generally determined by the dividend yield (which in turn is based on the amount of cash dividends the corporation pays to its shareholders as compared to its stock price). The economic substance behind our use of distributable cash flow before certain items is to measure and estimate the ability of our assets to generate cash flows sufficient to pay dividends to our investors. We believe the GAAP measure most directly comparable to distributable cash flow before certain items is net income. A reconciliation of distributable cash flow before certain items to net income is provided in this release. Distributable cash flow before certain items per share is distributable cash flow before certain items divided by average outstanding shares, including restricted stock awards that participate in dividends. “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. Management uses this measure and believes it is important to users of our financial statements because it believes the measure more effectively reflects our business’ ongoing cash generation capacity than a similar measure with the certain items included. For similar reasons, management uses segment earnings before DD&A and certain items in its analysis of segment performance and management of our business. General and administrative expenses are generally not controllable by 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 believes is important and that our chief operating decision makers use for purposes of making decisions about allocating resources to our segments and assessing 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. Segment earnings before DD&A as presented in our GAAP financials are included on the first page of the tables presenting our financial results. 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 distributable cash flow before certain items, and segment earnings before DD&A and certain items 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, 2014 (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. Preliminary Consolidated Statements of Income (Unaudited) (In millions, except per share amounts) Three Months Ended Nine Months Ended – – – – – – Notes Preliminary Earnings Contribution by Business Segment (Unaudited) (In millions, except per share amounts) Three Months Ended Nine Months Ended 2014(17) 2014(17) – – – – – Notes ($ million) 3Q 2015 – Natural Gas Pipelines $18, CO2 $(253), Terminals $(14), Products Pipelines $1, Other $1, general and administrative $2, interest expense $(15). 3Q 2014 – Natural Gas Pipelines $204, CO2 $25, Terminals $2, Other $10, general and administrative $15, interest expense $13. YTD 2015 – Natural Gas Pipelines $(91), CO2 $(244), Products Pipelines $4, Other $(32), general and administrative $(27), interest expense $40. YTD 2014 – Natural Gas Pipelines $195, CO2 $(6), Terminals $(10), Products Pipelines $(3), Other $22, general and administrative $18, interest expense $13. General and administrative expense is net of management fee revenues from an equity partner: Interest expense excludes interest income that is allocable to the segments: 3Q 2015 – Products Pipelines $1, Other $(2). (historical pro forma for acquired assets) Three Months Ended Nine Months Ended – – – – Preliminary Consolidated Balance Sheets (Unaudited) (In millions) September 30, December 31, Notes
Kinder Morgan, Inc. and Subsidiaries
September 30,
September 30,
2015
2014
2015
2014
Revenues
$
3,707
$
4,291
$
10,767
$
12,275
Costs, expenses and other
Operating expenses
1,718
2,199
4,988
6,475
Depreciation, depletion and amortization
617
520
1,725
1,518
General and administrative
160
135
540
461
Taxes, other than income taxes
108
105
339
326
Loss on impairments and disposals of long-lived assets, net
385
489
3
Other income, net
(2
)
(5
)
2,986
2,959
8,076
8,783
Operating income
721
1,332
2,691
3,492
Other income (expense)
Earnings from equity investments
114
107
330
306
Loss on impairments of equity investments
(26
)
Amortization of excess cost of equity investments
(13
)
(12
)
(39
)
(33
)
Interest, net
(540
)
(432
)
(1,524
)
(1,320
)
Other, net
9
30
33
56
Income before income taxes
291
1,025
1,465
2,501
Income tax expense
(108
)
(246
)
(521
)
(624
)
Net Income
183
779
944
1,877
Net loss (income) attributable to noncontrolling interests
3
(450
)
4
(977
)
Net income attributable to KMI
$
186
$
329
$
948
$
900
Class P Shares
Basic and Diluted Earnings Per Common Share
$
0.08
$
0.32
$
0.43
$
0.87
Basic Weighted Average Shares Outstanding (1)
2,203
1,028
2,173
1,028
Diluted Weighted Average Shares Outstanding (1)
2,203
1,028
2,181
1,028
Declared dividend per common share
$
0.51
$
0.44
$
1.48
$
1.29
Segment EBDA
Natural Gas Pipelines
$
993
$
1,182
$
2,936
$
3,207
CO2
29
388
605
1,083
Terminals
249
249
798
692
Products Pipelines
288
222
811
632
Kinder Morgan Canada
42
50
120
138
Other
(9
)
6
(55
)
13
Total Segment EBDA
$
1,592
$
2,097
$
5,215
$
5,765
(1)
For all periods presented in 2015 and 2014, outstanding KMI convertible preferred securities were antidilutive. For the three months ended September 30, 2015 and 2014 and for the nine months ended September 30, 2014 outstanding KMI warrants were also antidilutive.
Kinder Morgan, Inc. and Subsidiaries
September 30,
September 30,
2015
2015
Segment earnings before DD&A and amort. of excess investments (1)
Natural Gas Pipelines
$
975
$
978
$
3,027
$
3,012
CO2
282
363
849
1,089
Terminals
263
247
798
702
Product Pipelines
287
222
807
635
Kinder Morgan Canada
42
50
120
138
Other
(10
)
(4
)
(23
)
(9
)
Subtotal
1,839
1,856
5,578
5,567
DD&A and amortization of excess investments
(630
)
(532
)
(1,764
)
(1,551
)
General and administrative (1) (2)
(152
)
(141
)
(485
)
(452
)
Interest, net (1) (3)
(524
)
(444
)
(1,565
)
(1,338
)
Subtotal
533
739
1,764
2,226
Book taxes (4)
(185
)
(202
)
(606
)
(550
)
Certain items
Acquisition expense (5)
(2
)
(14
)
(26
)
Pension plan net benefit
5
11
28
29
Fair value amortization
24
18
72
49
Contract early termination revenue
198
198
Legal and environmental reserves (6)
(1
)
(4
)
(78
)
(30
)
Mark to market and ineffectiveness (7)
118
33
162
2
Gain/Loss on asset disposals/impairments, net of insurance
(387
)
(6
)
(516
)
(19
)
Other
(17
)
19
(4
)
26
Subtotal certain items before tax
(260
)
269
(350
)
229
Book tax certain items
95
(27
)
136
(28
)
Total certain items
(165
)
242
(214
)
201
Net income
$
183
$
779
$
944
$
1,877
Net income before certain items
$
348
$
537
$
1,158
$
1,676
Net income attributable to 3rd party noncontrolling interests (8)
(3
)
(4
)
(16
)
(7
)
Depreciation, depletion and amortization (9)
708
608
2,004
1,780
Book taxes (10)
224
240
713
655
Cash taxes (11)
(3
)
(133
)
(19
)
(437
)
Other items (12)
7
12
23
26
Sustaining capital expenditures (13)
(152
)
(144
)
(397
)
(353
)
MLP declared distributions (14)
(681
)
(2,000
)
DCF before certain items
$
1,129
$
435
$
3,466
$
1,340
Weighted Average Shares Outstanding for Dividends (15)
2,210
1,036
2,189
1,035
DCF per share before certain items
$
0.51
$
0.42
$
1.58
$
1.29
Declared dividend per common share
$
0.51
$
0.44
$
1.48
$
1.29
EBITDA (16)
$
1,803
$
1,825
$
5,425
$
5,442
(1)
Excludes certain items:
(2)
3Q 2015 – $(10)
3Q 2014 – $(9)
YTD 2015 – $(28)
YTD 2014 $(27)
(3)
3Q 2014 – Other $(1).
YTD 2015 – Products Pipelines $2, Other $(1).
YTD 2014 – Products Pipelines $1, Other $4.
(4)
Book tax expense excludes book tax certain items. Also excludes income tax that is allocated to the segments:
3Q 2015 – Natural Gas Pipelines $(1), CO2 $(1), Terminals $(8), Products Pipelines $(3), Kinder Morgan Canada $(5).
3Q 2014 – Natural Gas Pipelines $(2), CO2 $(2), Terminals $(9), Kinder Morgan Canada $(4).
YTD 2015 – Natural Gas Pipelines $(5), CO2 $(3), Terminals $(21), Products Pipelines $(7), Kinder Morgan Canada $(15).
YTD 2014 – Natural Gas Pipelines $(9), CO2 $(6), Terminals $(19), Products Pipelines $(1), Kinder Morgan Canada $(11).
(5)
Acquisition expense related to closed 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 (i.e. for prior period, excludes noncontrolling interests associated with our former MLPs). Excludes noncontrolling interests of $6 in 3Q 2015 and $20 in YTD 2015 related to impairments included as certain items.
(9)
Includes KMI’s share of certain equity investees’ DD&A:
3Q 2015 – $78
3Q 2014 – $76
YTD 2015 – $240
YTD 2014 – $229
(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:
3Q 2015 – $21
3Q 2014 – $21
YTD 2015 – $56
YTD 2014 – $59
(11)
Includes KMI’s share of taxable equity investees’ cash taxes:
3Q 2015 – $(2)
3Q 2014 – $(4)
YTD 2015 – $(8)
YTD 2014 – $(18)
(12)
For 2015, consists primarily of non-cash compensation associated with our restricted stock program. The restricted stock awards related to the program are included in our weighted average shares outstanding for dividends. For 2014 periods, consists primarily of excess coverage at our former MLPs (i.e. the amount by which distributable cash flow exceeded their declared distribution).
(13)
Includes KMI’s share of certain equity investees’ sustaining capital expenditures (the same equity investees for which we add back DD&A):
3Q 2015 – $(16)
3Q 2014 – $(11)
YTD 2015 – $(50)
YTD 2014 – $(36)
(14)
Represents distributions to KMP and EPB limited partner units formerly owned by the public. Not applicable after 3Q 2014.
(15)
Includes restricted stock awards that participate in dividends and dilutive effect of warrants.
(16)
EBITDA is net income before certain items plus interest expense, DD&A (including KMI’s share of certain equity investees’ DD&A), and book taxes (including income tax allocated to the segments and KMI’s share of certain equity investees’ book tax) less net income before certain items attributable to 3rd party noncontrolling interests, with any difference due to rounding.
(17)
Certain amounts have been reclassified to conform to the current presentation.
Volume Highlights
September 30,
September 30,
2015
2014
2015
2014
Natural Gas Pipelines
Transport Volumes (BBtu/d) (1) (2)
28,580
27,250
28,230
26,891
Sales Volumes (BBtu/d) (3)
2,445
2,446
2,416
2,303
Gas Gathering Volumes (BBtu/d) (2) (4)
3,541
3,508
3,554
3,354
Crude/Condensate Gathering Volumes (MBbl/d) (2) (5)
343
321
340
282
CO2
Southwest Colorado Production – Gross (Bcf/d) (6)
1.20
1.21
1.22
1.27
Southwest Colorado Production – Net (Bcf/d) (6)
0.60
0.51
0.58
0.54
Sacroc Oil Production – Gross (MBbl/d) (7)
32.49
33.13
34.44
32.35
Sacroc Oil Production – Net (MBbl/d) (8)
27.07
27.59
28.69
26.94
Yates Oil Production – Gross (MBbl/d) (7)
18.89
19.23
18.94
19.48
Yates Oil Production – Net (MBbl/d) (8)
7.60
8.72
8.20
8.64
Katz Oil Production – Gross (MBbl/d) (7)
4.10
3.42
4.03
3.58
Katz Oil Production – Net (MBbl/d) (8)
3.40
2.85
3.35
2.98
Goldsmith Oil Production – Gross (MBbl/d) (7)
1.64
1.25
1.48
1.25
Goldsmith Oil Production – Net (MBbl/d) (8)
1.41
1.08
1.28
1.08
NGL Sales Volumes (MBbl/d) (9)
10.51
10.32
10.33
10.06
Realized Weighted Average Oil Price per Bbl (10) (11)
$
74.18
$
87.59
$
73.19
$
89.40
Realized Weighted Average NGL Price per Bbl (11)
$
16.29
$
43.57
$
18.96
$
46.18
Terminals
Liquids Leasable Capacity (MMBbl)
81.3
75.6
81.3
75.6
Liquids Utilization %
93.4
%
94.4
%
93.4
%
94.4
%
Bulk Transload Tonnage (MMtons) (12)
16.9
20.4
48.9
60.3
Ethanol (MMBbl)
15.0
17.1
47.3
49.8
Products Pipelines
Pacific, Calnev, and CFPL (MMBbl)
Gasoline (13)
74.1
71.9
216.0
207.0
Diesel
28.5
28.0
80.8
79.8
Jet Fuel
23.2
22.1
67.0
65.8
Sub-Total Refined Product Volumes – excl. Plantation and Parkway
125.8
122.0
363.8
352.6
Plantation (MMBbl) (14)
Gasoline
19.1
20.8
59.5
59.7
Diesel
5.6
4.8
15.9
15.3
Jet Fuel
3.5
3.2
10.8
9.9
Sub-Total Refined Product Volumes – Plantation
28.2
28.8
86.2
84.9
Parkway (MMBbl) (14)
Gasoline
2.1
1.8
6.1
3.9
Diesel
0.7
0.6
2.0
1.6
Jet Fuel
Sub-Total Refined Product Volumes – Parkway
2.8
2.4
8.1
5.5
Total (MMBbl)
Gasoline (13)
95.3
94.5
281.6
270.6
Diesel
34.8
33.4
98.7
96.7
Jet Fuel
26.7
25.3
77.8
75.7
Total Refined Product Volumes
156.8
153.2
458.1
443.0
NGLs (MMBbl) (15)
10.0
6.1
29.4
16.1
Crude and Condensate (MMBbl) (16)
27.3
8.9
70.9
19.5
Total Delivery Volumes (MMBbl)
194.1
168.2
558.4
478.6
Ethanol (MMBbl) (17)
10.7
10.8
31.1
30.9
Trans Mountain (MMBbls – mainline throughput)
29.5
27.6
86.9
79.5
(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
2015
2014
ASSETS
Cash and cash equivalents
$
179
$
315
Other current assets
2,888
3,437
Property, plant and equipment, net
40,608
38,564
Investments
5,943
6,036
Goodwill
24,952
24,654
Deferred charges and other assets
11,107
10,043
TOTAL ASSETS
$
85,677
$
83,049
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Short-term debt
$
3,003
$
2,717
Other current liabilities
3,188
3,645
Long-term debt
39,675
38,212
Preferred interest in general partner of KMP
100
100
Debt fair value adjustments
1,855
1,785
Other
2,014
2,164
Total liabilities
49,835
48,623
Shareholders’ Equity
Accumulated other comprehensive loss
(328
)
(17
)
Other shareholders’ equity
35,842
34,093
Total KMI equity
35,514
34,076
Noncontrolling interests
328
350
Total shareholders’ equity
35,842
34,426
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
85,677
$
83,049
Debt, net of cash (1)
$
42,459
$
40,614
EBITDA (2)
$
7,351
$
7,368
Debt to EBITDA
5.8
5.5
(1)
Amounts exclude: (i) the preferred interest in general partner of KMP and (ii) debt fair value adjustments. The foreign exchange impact on our Euro denominated debt of $40mm is also excluded as of September 30, 2015, as we have entered into swaps to convert that debt to US$.
(2)
EBITDA is last twelve months, includes add back of our share of certain equity investees’ DD&A and is before certain items.