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Analyzing Kinder Morgan’s Fee-Based Cash Flow

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Fee-based cash flow

According to Kinder Morgan (KMI), 91% of its 2016 budgeted segment EBDA (earnings before depreciation and amortization) is fee-based. Of this, 67% is secured by take-or-pay contracts, and 24% is other fee-based cash flows.

According to the company, its other fee-based cash flows are supported by fee-based contracts or come from projects that provide critical infrastructure between major supply hubs and support stable end-user demand. The above graph shows the composition of KMI’s cash flows as well as the segmental contribution of other fee-based cash flows.

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