Kinder Morgan: An Overview of Assets and Operations
Kinder Morgan (KMI) is one of the largest energy infrastructure companies in the US. KMI owns an interest in or operates ~84,000 miles of pipelines and 155 terminals.
KMI’s pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO2, and other products. KMI’s terminals transload and store petroleum products, ethanol, and chemicals. Nearly 40% of the natural gas consumed in the US is transported through KMI’s network of pipelines.
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KMI is also a big producer of CO2, which is utilized for enhanced oil recovery projects primarily located in the Permian Basin.
Kinder Morgan’s customers include oil companies, energy producers and shippers, and local distribution companies.
Kinder Morgan carries its operations through five reportable segments: Natural Gas Pipelines, CO2, Terminals, Products Pipelines, and Kinder Morgan Canada. The map above shows KMI’s asset footprint.
Although many midstream companies in the US are structured as MLPs, Kinder Morgan has a simple C corporation structure. The company has no IDRs (incentive distribution rights), which are generally present in MLPs. KMI’s management owns an ~14% stake in the company.
In this series
In this series, we’ll take a closer look at Kinder Morgan’s assets, operations, and performance over the years. We’ll also analyze KMI’s price targets, the performance of its various segments, and its leverage.
We’ll look at KMI’s distributable cash flows, capital expenditures, and growth drivers. Finally, we’ll analyze its current valuation relative to its historical valuation and in relation to its peers.