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.