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Delaware
|
|
80-0682103
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
Class A common stock
|
596,102,672
|
Class B common stock
|
100,000,000
|
Class C common stock
|
2,462,927
|
Class P common stock
|
110,898,898
|
Page
Number
|
||
3
|
||
3
|
||
4
|
||
5
|
||
6
|
||
50
|
||
50
|
||
56
|
||
57
|
||
74
|
||
80
|
||
80
|
||
82
|
||
82
|
||
82
|
||
82
|
||
84
|
||
84
|
||
84
|
||
84
|
||
84
|
||
85
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Revenues
|
||||||||||||||||
Natural gas sales
|
$ | 938.9 | $ | 965.7 | $ | 2,594.9 | $ | 2,831.3 | ||||||||
Services
|
780.1 | 758.7 | 2,317.6 | 2,248.9 | ||||||||||||
Product sales and other
|
487.0 | 363.8 | 1,335.1 | 1,156.5 | ||||||||||||
Total Revenues
|
2,206.0 | 2,088.2 | 6,247.6 | 6,236.7 | ||||||||||||
|
||||||||||||||||
Operating Costs, Expenses and Other
|
||||||||||||||||
Gas purchases and other costs of sales
|
942.5 | 964.7 | 2,641.5 | 2,829.2 | ||||||||||||
Operations and maintenance
|
411.9 | 330.2 | 1,201.1 | 1,103.9 | ||||||||||||
Depreciation, depletion and amortization
|
287.8 | 261.7 | 807.6 | 813.7 | ||||||||||||
General and administrative
|
109.1 | 308.2 | 399.2 | 528.7 | ||||||||||||
Taxes, other than income taxes
|
39.0 | 41.9 | 141.4 | 128.1 | ||||||||||||
Other expense (income)
|
0.2 | 0.4 | (12.3 | ) | 2.2 | |||||||||||
Total Operating Costs, Expenses and Other
|
1,790.5 | 1,907.1 | 5,178.5 | 5,405.8 | ||||||||||||
|
||||||||||||||||
Operating Income
|
415.5 | 181.1 | 1,069.1 | 830.9 | ||||||||||||
|
||||||||||||||||
Other Income (Expense)
|
||||||||||||||||
Earnings (loss) from equity investments
|
71.0 | 57.2 | 214.7 | (256.1 | ) | |||||||||||
Amortization of excess cost of equity investments
|
(1.8 | ) | (1.4 | ) | (4.9 | ) | (4.3 | ) | ||||||||
Interest expense
|
(177.4 | ) | (173.9 | ) | (524.2 | ) | (493.8 | ) | ||||||||
Interest income
|
8.0 | 5.0 | 19.1 | 17.9 | ||||||||||||
Loss on remeasurement of previously held equity interest in KinderHawk (Note 2)
|
(167.2 | ) | - | (167.2 | ) | - | ||||||||||
Other, net
|
3.0 | 5.4 | 11.0 | 9.7 | ||||||||||||
Total Other Income (Expense)
|
(264.4 | ) | (107.7 | ) | (451.5 | ) | (726.6 | ) | ||||||||
|
||||||||||||||||
Income from Continuing Operations Before Income Taxes
|
151.1 | 73.4 | 617.6 | 104.3 | ||||||||||||
Income Tax (Expense) Benefit
|
(66.5 | ) | (20.6 | ) | (250.2 | ) | 29.1 | |||||||||
Income from Continuing Operations
|
84.6 | 52.8 | 367.4 | 133.4 | ||||||||||||
Loss from Discontinued Operations, Net of Tax
|
(0.4 | ) | (0.2 | ) | (0.5 | ) | (0.4 | ) | ||||||||
Net Income
|
84.2 | 52.6 | 366.9 | 133.0 | ||||||||||||
Net Loss (Income) Attributable to Noncontrolling Interests
|
67.3 | (42.0 | ) | 71.7 | (237.3 | ) | ||||||||||
|
||||||||||||||||
Net Income (Loss) Attributable to Kinder Morgan, Inc.
|
$ | 151.5 | $ | 10.6 | $ | 438.6 | $ | (104.3 | ) | |||||||
Basic Earnings Per Common Share
|
||||||||||||||||
Class P Shares
|
$ | 0.21 | $ | 0.52 | ||||||||||||
Class A Shares
|
$ | 0.19 | $ | 0.48 | ||||||||||||
Basic Weighted Average Number of Shares Outstanding
|
||||||||||||||||
Class P Shares
|
110.9 | 110.8 | ||||||||||||||
Class A Shares
|
596.1 | 596.2 | ||||||||||||||
Diluted Earnings Per Common Share
|
||||||||||||||||
Class P Shares
|
$ | 0.21 | $ | 0.52 | ||||||||||||
Class A Shares
|
$ | 0.19 | $ | 0.48 | ||||||||||||
Diluted Weighted Average Number of Shares
|
||||||||||||||||
Class P Shares
|
707.9 | 707.4 | ||||||||||||||
Class A Shares
|
596.1 | 596.2 | ||||||||||||||
Dividends Per Common Share Declared
|
$ | 0.30 | $ | 0.74 |
September 30,
2011
|
December 31,
2010
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents – KMI
|
$ | 2.9 | $ | 373.3 | ||||
Cash and cash equivalents – KMP
|
271.0 | 129.1 | ||||||
Restricted deposits
|
41.8 | 90.5 | ||||||
Accounts, notes and interest receivable, net
|
830.2 | 971.4 | ||||||
Inventories
|
101.3 | 92.0 | ||||||
Gas in underground storage
|
27.2 | 2.2 | ||||||
Fair value of derivative contracts
|
135.2 | 24.0 | ||||||
Other current assets
|
68.6 | 104.4 | ||||||
Total current assets
|
1,478.2 | 1,786.9 | ||||||
Property, plant and equipment, net
|
17,715.9 | 17,070.7 | ||||||
Investments
|
3,668.7 | 4,291.1 | ||||||
Notes receivable
|
164.0 | 115.0 | ||||||
Goodwill
|
4,940.6 | 4,830.9 | ||||||
Other intangibles, net
|
1,201.3 | 339.2 | ||||||
Fair value of derivative contracts
|
771.5 | 301.7 | ||||||
Deferred charges and other assets
|
217.2 | 172.6 | ||||||
Total Assets
|
$ | 30,157.4 | $ | 28,908.1 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Current liabilities
|
||||||||
Current portion of debt – KMI
|
$ | 1,216.6 | $ | 750.9 | ||||
Current portion of debt – KMP
|
1,844.4 | 1,262.4 | ||||||
Cash book overdrafts
|
41.9 | 34.3 | ||||||
Accounts payable
|
640.4 | 647.5 | ||||||
Accrued interest
|
126.8 | 310.4 | ||||||
Accrued taxes
|
102.0 | 44.7 | ||||||
Deferred revenues
|
92.1 | 96.7 | ||||||
Fair value of derivative contracts
|
71.9 | 281.5 | ||||||
Accrued other current liabilities
|
258.9 | 215.7 | ||||||
Total current liabilities
|
4,395.0 | 3,644.1 | ||||||
Long-term liabilities and deferred credits
|
||||||||
Long-term debt
|
||||||||
Outstanding – KMI
|
1,942.5 | 2,779.2 | ||||||
Outstanding – KMP
|
10,662.2 | 10,277.4 | ||||||
Preferred interest in general partner of KMP
|
100.0 | 100.0 | ||||||
Value of interest rate swaps
|
1,146.8 | 656.3 | ||||||
Total long-term debt
|
13,851.5 | 13,812.9 | ||||||
Deferred income taxes
|
2,226.3 | 2,092.7 | ||||||
Fair value of derivative contracts
|
21.4 | 172.2 | ||||||
Other long-term liabilities and deferred credits
|
915.7 | 647.2 | ||||||
Total long-term liabilities and deferred credits
|
17,014.9 | 16,725.0 | ||||||
Total Liabilities
|
21,409.9 | 20,369.1 | ||||||
Commitments and contingencies (Notes 4 and 11)
|
||||||||
Stockholders’ Equity
|
||||||||
Class P shares, $0.01 par value, 2,000,000,000 shares authorized, 110,898,898 shares issued and outstanding
|
1.1 | - | ||||||
Class A shares, $0.01 par value, 707,000,000 shares authorized, 596,102,672 shares issued and outstanding
|
6.0 | - | ||||||
Class B shares, $0.01 par value, 100,000,000 shares authorized, 100,000,000 shares issued and outstanding
|
1.0 | - | ||||||
Class C shares, $0.01 par value, 2,462,927 shares authorized, 2,462,927 shares issued and outstanding
|
- | - | ||||||
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none outstanding
|
- | - | ||||||
Additional paid-in capital
|
3,423.3 | - | ||||||
Retained earnings
|
56.5 | - | ||||||
Members’ capital (Note 5)
|
- | 3,575.6 | ||||||
Accumulated other comprehensive loss
|
(32.4 | ) | (136.5 | ) | ||||
Total Kinder Morgan, Inc.’s stockholders’ equity
|
3,455.5 | 3,439.1 | ||||||
Noncontrolling interests
|
5,292.0 | 5,099.9 | ||||||
Total Stockholders’ Equity
|
8,747.5 | 8,539.0 | ||||||
Total Liabilities and Stockholders’ Equity
|
$ | 30,157.4 | $ | 28,908.1 |
Nine Months Ended September 30,
|
||||||||
2011
|
2010
|
|||||||
Cash Flows From Operating Activities
|
||||||||
Net Income
|
$ | 366.9 | $ | 133.0 | ||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||
Loss from discontinued operations, net of tax
|
0.5 | 0.4 | ||||||
Depreciation, depletion and amortization
|
807.6 | 813.7 | ||||||
Deferred income taxes
|
77.6 | (204.7 | ) | |||||
Amortization of excess cost of equity investments
|
4.9 | 4.3 | ||||||
Loss on remeasurement of previously held equity interest in KinderHawk (Note 2)
|
167.2 | - | ||||||
(Earnings) loss from equity investments
|
(214.7 | ) | 256.1 | |||||
Distributions from equity investments
|
200.9 | 154.9 | ||||||
Proceeds from termination of interest rate swap agreements
|
73.0 | - | ||||||
Pension contributions in excess of expense
|
(9.7 | ) | (8.5 | ) | ||||
Changes in components of working capital
|
||||||||
Accounts receivable
|
34.9 | 105.1 | ||||||
Inventories
|
9.3 | (12.8 | ) | |||||
Other current assets
|
(1.8 | ) | 23.1 | |||||
Accounts payable
|
(7.3 | ) | (20.5 | ) | ||||
Accrued interest
|
(183.7 | ) | (165.6 | ) | ||||
Accrued taxes
|
36.4 | 57.7 | ||||||
Accrued liabilities
|
(1.5 | ) | (44.8 | ) | ||||
Going Private transaction litigation reserve adjustment
|
- | 200.0 | ||||||
Rate reparations, refunds and other litigation reserve adjustments
|
160.4 | (48.3 | ) | |||||
Other, net
|
67.6 | (24.0 | ) | |||||
Cash Flows Provided By Continuing Operations
|
1,588.5 | 1,219.1 | ||||||
Net Cash Flows Used in Discontinued Operations
|
(0.8 | ) | (0.6 | ) | ||||
Net Cash Provided by Operating Activities
|
1,587.7 | 1,218.5 | ||||||
Cash Flows From Investing Activities
|
||||||||
Acquisitions of investments
|
(901.0 | ) | (929.7 | ) | ||||
Acquisitions of assets
|
(44.0 | ) | (243.1 | ) | ||||
Capital expenditures
|
(845.0 | ) | (726.8 | ) | ||||
Deconsolidation of variable interest entity
|
- | (17.5 | ) | |||||
Sale or casualty of property, plant and equipment, and other net assets net of removal costs
|
29.0 | 21.5 | ||||||
Net proceeds from margin and restricted deposits
|
55.1 | 19.2 | ||||||
Contributions to investments
|
(297.0 | ) | (210.3 | ) | ||||
Distributions from equity investments in excess of cumulative earnings
|
185.0 | 187.9 | ||||||
Other, net
|
3.0 | - | ||||||
Net Cash Used in Investing Activities
|
(1,814.9 | ) | (1,898.8 | ) | ||||
Cash Flows From Financing Activities
|
||||||||
Issuance of debt – KMI
|
1,749.6 | 994.2 | ||||||
Payment of debt – KMI
|
(2,124.6 | ) | (873.0 | ) | ||||
Issuance of debt – KMP
|
6,356.4 | 5,704.2 | ||||||
Payment of debt – KMP
|
(5,538.1 | ) | (4,601.0 | ) | ||||
Repayments from related party
|
29.3 | 1.3 | ||||||
Debt issue costs
|
(19.4 | ) | (24.4 | ) | ||||
Increase (decrease) in cash book overdrafts
|
7.6 | (5.2 | ) | |||||
Cash dividends
|
(557.3 | ) | (500.0 | ) | ||||
Contributions from noncontrolling interests
|
816.9 | 636.6 | ||||||
Distributions to noncontrolling interests
|
(706.6 | ) | (622.4 | ) | ||||
Other, net
|
(0.3 | ) | - | |||||
Net Cash Provided by Financing Activities
|
13.5 | 710.3 | ||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
(14.8 | ) | 1.0 | |||||
Net (decrease) increase in Cash and Cash Equivalents
|
(228.5 | ) | 31.0 | |||||
Cash and Cash Equivalents, beginning of period
|
502.4 | 165.6 | ||||||
Cash and Cash Equivalents, end of period
|
$ | 273.9 | $ | 196.6 | ||||
Noncash Investing and Financing Activities
|
||||||||
Assets acquired by the assumption or incurrence of liabilities
|
$ | 179.5 | $ | 12.5 | ||||
Assets acquired by contributions from noncontrolling interests
|
$ | 23.7 | $ | 81.7 | ||||
Contribution of net assets to investments
|
$ | 7.9 | $ | - | ||||
Sale of investment ownership interest in exchange for note
|
$ | 4.1 | $ | - | ||||
Supplemental Disclosures of Cash Flow Information
|
||||||||
Cash paid during the period for interest (net of capitalized interest)
|
$ | 668.6 | $ | 607.1 | ||||
Net cash paid during the period for income taxes
|
$ | 177.3 | $ | 143.2 |
Three Months Ended September 30, 2011
|
||||||||||||||||
Net Income Available to Shareholders
|
||||||||||||||||
Class P
|
Class A
|
Participating
Securities (a)
|
Total
|
|||||||||||||
Net income attributable to KMI for the three months ended September 30, 2011
|
$ | 151.5 | ||||||||||||||
Dividends declared during period
|
$ | 33.3 | $ | 166.3 | $ | 12.9 | (212.5 | ) | ||||||||
Excess distributions over earnings
|
(9.6 | ) | (51.4 | ) | - | $ | (61.0 | ) | ||||||||
Total net income attributable to shareholders
|
$ | 23.7 | $ | 114.9 | $ | 12.9 | $ | 151.5 | ||||||||
Basic Earnings Per Share
|
||||||||||||||||
Basic Weighted Average Number of Shares Outstanding
|
110.9 | 596.1 | N/A | |||||||||||||
Basic Earnings per Common Share(b)
|
$ | 0.21 | $ | 0.19 | N/A | |||||||||||
Diluted Earnings Per Share
|
||||||||||||||||
Total net income attributable to shareholders and assumed conversions(c)
|
$ | 151.5 | $ | 114.9 | N/A | |||||||||||
Diluted Weighted Average Number of Shares
|
707.9 | 596.1 | N/A | |||||||||||||
Diluted Earnings per Common Share(b)
|
$ | 0.21 | $ | 0.19 | N/A |
February 11, 2011 through September 30, 2011
|
||||||||||||||||
Net Income Available to Shareholders
|
||||||||||||||||
Class P
|
Class A
|
Participating
Securities (a)
|
Total
|
|||||||||||||
Net income attributable to KMI for the nine months ended September 30, 2011
|
$ | 438.6 | ||||||||||||||
Less: net income attributable to KMI members prior to incorporation
|
(70.6 | ) | ||||||||||||||
Net income attributable to shareholders
|
368.0 | |||||||||||||||
Dividends declared during period
|
$ | 48.8 | $ | 237.3 | $ | 25.4 | (311.5 | ) | ||||||||
Remaining undistributed earnings
|
8.9 | 47.6 | - | $ | 56.5 | |||||||||||
Total net income attributable to shareholders
|
$ | 57.7 | $ | 284.9 | $ | 25.4 | $ | 368.0 | ||||||||
Basic Earnings Per Share
|
||||||||||||||||
Basic Weighted Average Number of Shares Outstanding(d)
|
110.8 | 596.2 | N/A | |||||||||||||
Basic Earnings per Common Share(b)
|
$ | 0.52 | $ | 0.48 | N/A | |||||||||||
Diluted Earnings per Share
|
||||||||||||||||
Total net Income attributable to shareholders and assumed conversions(c)
|
$ | 368.0 | $ | 284.9 | N/A | |||||||||||
Diluted Weighted Average Number of Shares(d)
|
707.4 | 596.2 | N/A | |||||||||||||
Diluted Earnings per Common Share(b)
|
$ | 0.52 | $ | 0.48 | N/A |
(a)
|
Participating securities include Class B shares, Class C shares, and 1,193,891 unvested restricted stock awards issued to non-senior management employees that contain rights to dividends.
|
(b)
|
The Class A shares earnings per share as compared to the Class P shares earnings per share has been reduced due to the sharing of economic benefits (including dividends) amongst the Class A, B, and C shares. Class A, B and C shares owned by Richard Kinder, the Sponsor Investors, the Original Shareholders, and Other Management are referred to as “investor retained stock,” and are convertible into a fixed number of Class P shares. In the aggregate, our investor retained stock is entitled to receive a dividend per share on a fully converted basis equal to the dividend per share on our common stock. The conversion of shares of investor retained stock into Class P shares will not increase our total fully-converted shares outstanding, impact the aggregate dividends we pay or the dividends we pay per share on our Class P common stock.
|
(c)
|
For the diluted earnings per share calculation, total net income attributable to each class of common stock is divided by the adjusted weighted average shares outstanding during the period, including all dilutive potential shares.
|
(d)
|
The weighted average shares outstanding calculation is based on the actual days in which the shares were outstanding for the period from February 11, 2011 to September 30, 2011.
|
|
▪
|
$35.5 million to current assets, primarily consisting of trade receivables and materials and supplies inventory;
|
|
▪
|
$641.6 million to property, plant and equipment;
|
|
▪
|
$93.4 million to KMP’s 25% investment in EagleHawk;
|
|
▪
|
$883.2 million to a long-term intangible customer contract, representing the contract value of natural gas gathering services to be performed for Petrohawk over an approximate 20-year period; less
|
|
▪
|
$92.8 million assigned to assumed liabilities, not including $77.0 million for the 50% of KinderHawk’s borrowings under its bank credit facility that KMP was previously responsible for.
|
Products
Pipelines–
KMP
|
Natural Gas
Pipelines–
KMP
|
CO
2
–KMP
|
Terminals–
KMP
|
Kinder
Morgan
Canada–
KMP
|
Total
|
|||||||||||||||||||
Historical Goodwill
|
$ | 2,116.5 | $ | 3,488.0 | $ | 1,521.7 | $ | 1,488.6 | $ | 626.5 | $ | 9,241.3 | ||||||||||||
Accumulated impairment losses.
|
(1,266.5 | ) | (2,090.2 | ) | - | (676.6 | ) | (377.1 | ) | (4,410.4 | ) | |||||||||||||
Balance as of December 31, 2010
|
850.0 | 1,397.8 | 1,521.7 | 812.0 | 249.4 | 4,830.9 | ||||||||||||||||||
Other adjustments(a)
|
11.4 | 15.3 | 6.2 | 7.1 | - | 40.0 | ||||||||||||||||||
Acquisitions(b)
|
- | 94.2 | - | - | - | 94.2 | ||||||||||||||||||
Disposals(c)
|
- | - | - | (11.8 | ) | - | (11.8 | ) | ||||||||||||||||
Currency translation adjustments
|
- | - | - | - | (12.7 | ) | (12.7 | ) | ||||||||||||||||
Balance as of September 30, 2011
|
$ | 861.4 | $ | 1,507.3 | $ | 1,527.9 | $ | 807.3 | $ | 236.7 | $ | 4,940.6 |
(a)
|
Tax adjustments related to our investment in KMP.
|
(b)
|
2011 acquisition amount relates to KMP’s July 2011 purchase of the remaining 50% ownership interest in KinderHawk Field Services LLC that it did not already own (discussed further in Note 2).
|
(c)
|
2011 disposal amount consists of (i) $10.6 million related to the sale of KMP’s ownership interest in the boat fleeting business it acquired from Megafleet Towing Co., Inc. in April 2009; and (ii) $1.2 million related to the sale of KMP’s subsidiary Arrow Terminals B.V. (both discussed further in Note 2).
|
September 30,
2011
|
December 31,
2010
|
|||||||
Customer relationships, contracts and agreements
|
||||||||
Gross carrying amount
|
$ | 1,337.6 | $ | 424.7 | ||||
Accumulated amortization
|
(143.1 | ) | (99.9 | ) | ||||
Net carrying amount
|
1,194.5 | 324.8 | ||||||
Technology-based assets, lease value and other
|
||||||||
Gross carrying amount
|
9.0 | 16.3 | ||||||
Accumulated amortization
|
(2.2 | ) | (1.9 | ) | ||||
Net carrying amount
|
6.8 | 14.4 | ||||||
Total other intangibles, net
|
$ | 1,201.3 | $ | 339.2 |
September 30, 2011
|
December 31, 2010
|
|||||||||||||||
Short-term
notes
payable
|
Weighted
average
interest rate
|
Short-term
notes
payable
|
Weighted
average
interest rate
|
|||||||||||||
(Dollars in millions)
|
||||||||||||||||
KMI – Secured debt
(a)
|
$ | 375.0 | 1.36 | % | $ | - | - | |||||||||
KMP – Commercial paper
(b)
|
$ | 353.0 | 0.35 | % | $ | 522.1 | 0.67 | % |
(a)
|
The average short-term debt outstanding (and related weighted average interest rate) was $423.3 million (1.48%) and $386.3 million (1.55%) during the three and nine months ended September 30, 2011, respectively.
|
(b)
|
The average short-term debt outstanding (and related weighted average interest rate) was $699.4 million (0.37%) and $499.3 million (0.42%) during the three and nine months ended September 30, 2011, respectively.
|
|
▪
|
an aggregate $80.7 million for KMP’s contingent share (50%) of Cortez Pipeline Company’s debt obligations, consisting of (i) $70.0 million for its contingent share of outstanding borrowings under Cortez’s debt facilities (described below); and (ii) $10.7 million for a letter of credit issued on its behalf to secure its indemnification obligations to Shell for 50% of the $21.4 million in principal amount of Cortez’s Series D notes outstanding as of that date. Cortez Pipeline Company is a Texas general partnership that owns and operates a common carrier carbon dioxide pipeline system.
|
|
▪
|
an $18.3 million letter of credit posted as security for borrowings under Adjustable Demand Revenue Bonds issued by the Nassau County, Florida Ocean Highway and Port Authority. The bonds were issued for the purpose of constructing certain port improvements located in Fernandino Beach, Nassau County, Florida. KMP’s subsidiary, Nassau Terminals LLC is the operator of the marine port facilities. The bond indenture is for 30 years and allows the bonds to remain outstanding until December 1, 2020. Principal payments on the bonds are made on the first of December each year, and corresponding reductions are made to the letter of credit. As of September 30, 2011, this letter of credit had a face amount of $18.3 million.
|
September 30, 2011
|
|
Class P shares(a)
|
110,898,898
|
Class A shares
|
596,102,672
|
Class B shares
|
100,000,000
|
Class C shares
|
2,462,927
|
(a)
|
Includes 1,570 common shares resulting from restricted common shares issued to an independent director that vested in the third quarter of 2011.
|
Three Months Ended September 30, 2011
|
||||||||||||||||||||||||||||
Common
Shares(a)
|
Additional
paid-in
capital
|
Retained
earnings
|
Accumulated
other
comprehensive
loss
|
Stockholders’
equity
attributable
to KMI
|
Noncontrolling
interests
|
Total
|
||||||||||||||||||||||
Beginning Balance
|
$ | 8.1 | $ | 3,416.0 | $ | 117.5 | $ | (113.8 | ) | $ | 3,427.8 | $ | 5,375.6 | $ | 8,803.4 | |||||||||||||
Amortization of restricted shares
|
4.5 | 4.5 | 4.5 | |||||||||||||||||||||||||
Impact from equity transactions of KMP
|
2.8 | 2.8 | (4.6 | ) | (1.8 | ) | ||||||||||||||||||||||
Distributions
|
- | (244.9 | ) | (244.9 | ) | |||||||||||||||||||||||
Contributions
|
- | 107.5 | 107.5 | |||||||||||||||||||||||||
Cash dividends
|
(212.5 | ) | (212.5 | ) | (212.5 | ) | ||||||||||||||||||||||
Other
|
- | 0.6 | 0.6 | |||||||||||||||||||||||||
Comprehensive income
|
||||||||||||||||||||||||||||
Net Income (loss)
|
151.5 | 151.5 | (67.3 | ) | 84.2 | |||||||||||||||||||||||
Other comprehensive income, net of tax
|
||||||||||||||||||||||||||||
Change in fair value of derivatives utilized for hedging purposes
|
120.0 | 120.0 | 177.1 | 297.1 | ||||||||||||||||||||||||
Reclassification of change in fair value of derivatives to net income
|
11.7 | 11.7 | 22.8 | 34.5 | ||||||||||||||||||||||||
Foreign currency translation adjustments
|
(50.4 | ) | (50.4 | ) | (74.8 | ) | (125.2 | ) | ||||||||||||||||||||
Adjustments to pension and other postretirement benefit plan liabilities
|
0.1 | 0.1 | - | 0.1 | ||||||||||||||||||||||||
Total other comprehensive income
|
81.4 | 81.4 | 125.1 | 206.5 | ||||||||||||||||||||||||
Total comprehensive income
|
232.9 | 57.8 | 290.7 | |||||||||||||||||||||||||
Ending Balance
|
$ | 8.1 | $ | 3,423.3 | $ | 56.5 | $ | (32.4 | ) | $ | 3,455.5 | $ | 5,292.0 | $ | 8,747.5 |
(a)
|
Common shares include $1.1 million, $6.0 million and $1.0 million of Class P, Class A and Class B shares, respectively.
|
Nine Months Ended September 30, 2011
|
||||||||||||||||||||||||||||||||
KMI
Members
|
Common
Shares(a)
|
Additional
paid-in
capital
|
Retained
earnings
|
Accumulated
other
comprehensive
loss
|
Stockholders’
equity
attributable
to KMI
|
Noncontrolling
interests
|
Total
|
|||||||||||||||||||||||||
Beginning Balance
|
$ | 3,575.6 | $ | - | $ | - | $ | - | $ | (136.5 | ) | $ | 3,439.1 | $ | 5,099.9 | $ | 8,539.0 | |||||||||||||||
Reclassification of Equity
upon the offering
|
(3,404.0 | ) | 8.1 | 3,395.9 | - | - | ||||||||||||||||||||||||||
Amortization of restricted shares
|
4.5 | 4.5 | 4.5 | |||||||||||||||||||||||||||||
Impact from equity transactions of KMP
|
23.7 | 23.7 | (37.2 | ) | (13.5 | ) | ||||||||||||||||||||||||||
A-1 and B unit amortization
|
3.6 | 3.6 | 3.6 | |||||||||||||||||||||||||||||
Distributions
|
- | (706.6 | ) | (706.6 | ) | |||||||||||||||||||||||||||
Contributions
|
- | 840.6 | 840.6 | |||||||||||||||||||||||||||||
Cash dividends
|
(245.8 | ) | (311.5 | ) | (557.3 | ) | (557.3 | ) | ||||||||||||||||||||||||
Other
|
(0.8 | ) | (0.8 | ) | 0.6 | (0.2 | ) | |||||||||||||||||||||||||
Comprehensive income
|
||||||||||||||||||||||||||||||||
Net Income (loss)
|
70.6 | 368.0 | 438.6 | (71.7 | ) | 366.9 | ||||||||||||||||||||||||||
Other comprehensive income, net of tax
|
||||||||||||||||||||||||||||||||
Change in fair value of derivatives utilized for hedging purposes
|
89.8 | 89.8 | 132.5 | 222.3 | ||||||||||||||||||||||||||||
Reclassification of change in fair value of derivatives to net income
|
49.5 | 49.5 | 86.6 | 136.1 | ||||||||||||||||||||||||||||
Foreign currency translation adjustments
|
(31.2 | ) | (31.2 | ) | (46.7 | ) | (77.9 | ) | ||||||||||||||||||||||||
Adjustments to pension and other postretirement benefit plan liabilities
|
(4.0 | ) | (4.0 | ) | (6.0 | ) | (10.0 | ) | ||||||||||||||||||||||||
Total other comprehensive
income
|
104.1 | 104.1 | 166.4 | 270.5 | ||||||||||||||||||||||||||||
Total comprehensive income
|
542.7 | 94.7 | 637.4 | |||||||||||||||||||||||||||||
Ending Balance
|
$ | - | $ | 8.1 | $ | 3,423.3 | $ | 56.5 | $ | (32.4 | ) | $ | 3,455.5 | $ | 5,292.0 | $ | 8,747.5 |
(a)
|
Common shares include $1.1 million, $6.0 million and $1.0 million of Class P, Class A and Class B shares, respectively.
|
Three Months Ended September 30, 2011
|
Nine Months Ended September 30, 2011
|
|||||||||||||||||||||||
Kinder
Morgan, Inc.
|
Noncontrolling
interests
|
Total
|
Kinder
Morgan, Inc.
|
Noncontrolling
interests
|
Total
|
|||||||||||||||||||
(Tax Expense) Tax Benefit Included in Other Comprehensive Income
|
||||||||||||||||||||||||
Change in fair value of derivatives utilized for hedging purposes
|
$ | (72.6 | ) | $ | (19.5 | ) | $ | (92.1 | ) | $ | (55.0 | ) | $ | (14.6 | ) | $ | (69.6 | ) | ||||||
Reclassification of change in fair value of derivatives to net income
|
(7.4 | ) | (2.5 | ) | (9.9 | ) | (29.8 | ) | (9.5 | ) | (39.3 | ) | ||||||||||||
Foreign currency translation adjustments
|
30.1 | 8.2 | 38.3 | 18.8 | 5.1 | 23.9 | ||||||||||||||||||
Adjustments to pension and other postretirement benefit plan liabilities
|
- | - | - | 2.4 | 0.7 | 3.1 | ||||||||||||||||||
Tax included in total other comprehensive income
|
$ | (49.9 | ) | $ | (13.8 | ) | $ | (63.7 | ) | $ | (63.6 | ) | $ | (18.3 | ) | $ | (81.9 | ) |
Three Months Ended September 30, 2010
|
Nine Months Ended September 30, 2010
|
|||||||||||||||||||||||
Kinder
Morgan, Inc.
|
Noncontrolling
interests
|
Total
|
Kinder
Morgan, Inc.
|
Noncontrolling
interests
|
Total
|
|||||||||||||||||||
Beginning Balance
|
$ | 3,812.4 | $ | 5,014.7 | $ | 8,827.1 | $ | 4,171.5 | $ | 4,674.6 | $ | 8,846.1 | ||||||||||||
Impact from equity transactions of KMP
|
(45.2 | ) | 70.7 | 25.5 | (31.2 | ) | 48.7 | 17.5 | ||||||||||||||||
A-1 and B unit amortization
|
1.3 | - | 1.3 | 4.8 | - | 4.8 | ||||||||||||||||||
Distributions to noncontrolling interests
|
- | (217.2 | ) | (217.2 | ) | - | (622.4 | ) | (622.4 | ) | ||||||||||||||
Contributions from noncontrolling interests
|
- | 203.4 | 203.4 | - | 718.3 | 718.3 | ||||||||||||||||||
Deconsolidation of variable interest entity (a)
|
- | - | - | - | (45.9 | ) | (45.9 | ) | ||||||||||||||||
Cash dividends
|
(175.0 | ) | - | (175.0 | ) | (500.0 | ) | - | (500.0 | ) | ||||||||||||||
Other
|
- | - | - | - | 0.2 | 0.2 | ||||||||||||||||||
Comprehensive income
|
||||||||||||||||||||||||
Net income (loss)
|
10.6 | 42.0 | 52.6 | (104.3 | ) | 237.3 | 133.0 | |||||||||||||||||
Other comprehensive income, net of tax
|
||||||||||||||||||||||||
Change in fair value of derivatives utilized for hedging purposes
|
(25.1 | ) | (38.0 | ) | (63.1 | ) | 33.5 | 38.4 | 71.9 | |||||||||||||||
Reclassification of change in fair value of derivatives to net income
|
5.0 | 21.8 | 26.8 | 13.0 | 61.4 | 74.4 | ||||||||||||||||||
Foreign currency translation adjustments
|
20.1 | 28.6 | 48.7 | 17.6 | 16.5 | 34.1 | ||||||||||||||||||
Adjustments to pension and other postretirement benefit plan liabilities
|
0.1 | 0.1 | 0.2 | (0.7 | ) | (1.0 | ) | (1.7 | ) | |||||||||||||||
Total other comprehensive income
|
0.1 | 12.5 | 12.6 | 63.4 | 115.3 | 178.7 | ||||||||||||||||||
Total comprehensive income
|
10.7 | 54.5 | 65.2 | (40.9 | ) | 352.6 | 311.7 | |||||||||||||||||
Ending Balance
|
$ | 3,604.2 | $ | 5,126.1 | $ | 8,730.3 | $ | 3,604.2 | $ | 5,126.1 | $ | 8,730.3 | ||||||||||||
(Tax Expense) Tax Benefit Included in Other Comprehensive Income
|
||||||||||||||||||||||||
Change in fair value of derivatives utilized for hedging purposes
|
$ | 18.9 | $ | 4.1 | $ | 23.0 | $ | (25.4 | ) | $ | (4.2 | ) | $ | (29.6 | ) | |||||||||
Reclassification of change in fair value of derivatives to net income
|
(4.4 | ) | (2.4 | ) | (6.8 | ) | (10.9 | ) | (6.7 | ) | (17.6 | ) | ||||||||||||
Foreign currency translation adjustments
|
(15.2 | ) | (3.1 | ) | (18.3 | ) | (12.2 | ) | (1.8 | ) | (14.0 | ) | ||||||||||||
Adjustments to pension and other postretirement benefit plan liabilities
|
(0.1 | ) | - | (0.1 | ) | 0.5 | 0.1 | 0.6 | ||||||||||||||||
Tax included in total other comprehensive income
|
$ | (0.8 | ) | $ | (1.4 | ) | $ | (2.2 | ) | $ | (48.0 | ) | $ | (12.6 | ) | $ | (60.6 | ) |
(a)
|
Upon the adoption of Accounting Standards Update No. 2009-17, which amended the codification’s “Consolidation” topic, on January 1, 2010, we no longer consolidate Triton Power Company LLC into our financial statements.
|
September 30,
2011
|
December 31,
2010
|
|||||||
KMP
|
$ | 3,306.9 | $ | 3,135.4 | ||||
KMR
|
1,975.2 | 1,956.2 | ||||||
Other
|
9.9 | 8.3 | ||||||
$ | 5,292.0 | $ | 5,099.9 |
Net open position
long/(short)
|
||
Derivatives designated as hedging contracts
|
||
Crude oil
|
(21.8)
|
million barrels
|
Natural gas fixed price
|
(3.6)
|
billion cubic feet
|
Natural gas basis
|
(4.2)
|
billion cubic feet
|
Derivatives not designated as hedging contracts
|
||
Natural gas fixed price
|
0.2
|
billion cubic feet
|
Natural gas basis
|
2.3
|
billion cubic feet
|
Asset derivatives
|
Liability derivatives
|
||||||||||||||||
September 30,
2011
|
December 31,
2010
|
September 30,
2011
|
December 31,
2010
|
||||||||||||||
Balance sheet
location
|
Fair value
|
Fair value
|
|||||||||||||||
Derivatives designated as hedging contracts
|
|||||||||||||||||
Energy commodity derivative contracts
|
Current
|
$ | 123.7 | $ | 20.1 | $ | (67.0 | ) | $ | (275.9 | ) | ||||||
Non-current
|
133.0 | 43.1 | (21.4 | ) | (103.0 | ) | |||||||||||
Subtotal
|
256.7 | 63.2 | (88.4 | ) | (378.9 | ) | |||||||||||
Interest rate swap agreements
|
Current
|
6.1 | - | - | - | ||||||||||||
Non-current
|
638.5 | 258.6 | - | (69.2 | ) | ||||||||||||
Subtotal
|
644.6 | 258.6 | - | (69.2 | ) | ||||||||||||
Total
|
901.3 | 321.8 | (88.4 | ) | (448.1 | ) | |||||||||||
Derivatives not designated as hedging contracts
|
|||||||||||||||||
Energy commodity derivative contracts
|
Current
|
5.4 | 3.9 | (4.9 | ) | (5.6 | ) | ||||||||||
Total
|
5.4 | 3.9 | (4.9 | ) | (5.6 | ) | |||||||||||
Total derivatives
|
$ | 906.7 | $ | 325.7 | $ | (93.3 | ) | $ | (453.7 | ) |
Derivatives in fair value hedging
relationships
|
Location of gain/(loss) recognized
in income on derivatives
|
Amount of gain/(loss) recognized in income
on derivatives(a)
|
|||||||||||||||
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||||||||
Interest rate swap agreements
|
Interest, net – income/(expense)
|
$ | 456.3 | $ | 241.3 | $ | 528.2 | $ | 685.5 | ||||||||
Total
|
$ | 456.3 | $ | 241.3 | $ | 528.2 | $ | 685.5 | |||||||||
Fixed rate debt
|
Interest, net – income/(expense)
|
$ | (456.3 | ) | $ | (241.3 | ) | $ | (528.2 | ) | $ | (685.5 | ) | ||||
Total
|
$ | (456.3 | ) | $ | (241.3 | ) | $ | (528.2 | ) | $ | (685.5 | ) |
(a)
|
Amounts reflect the change in the fair value of interest rate swap agreements and the change in the fair value of the associated fixed rate debt which exactly offset each other as a result of no hedge ineffectiveness. Amounts do not reflect the impact on interest expense from the interest rate swap agreements under which we pay variable rate interest and receive fixed rate interest.
|
Derivatives in
cash flow hedging
relationships
|
Amount of gain/(loss)
recognized in OCI on
derivative (effective
portion)
|
Location of
gain/(loss)
reclassified from
Accumulated OCI
into income
(effective portion)
|
Amount of gain/(loss)
reclassified from
Accumulated OCI
into income
(effective portion)
|
Location of
gain/(loss)
recognized in
income on
derivative
(ineffective portion
and amount
excluded from
effectiveness
testing)
|
Amount of gain/(loss)
recognized in income
on derivative
(ineffective portion
and amount
excluded from
effectiveness testing)
|
|||||||||||||||||
Three Months Ended
September 30,
|
Three Months Ended
September 30,
|
Three Months Ended
September 30,
|
||||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
|||||||||||||||||
Energy commodity derivative contracts
|
$
|
120.0
|
$
|
(25.1)
|
Revenues-natural gas sales
|
$
|
0.1
|
$
|
0.4
|
Revenues-natural gas sales
|
$
|
-
|
$
|
-
|
||||||||
Revenues-product sales and other
|
(12.1)
|
(4.8)
|
Revenues-product sales and other
|
8.5
|
(7.9)
|
|||||||||||||||||
Gas purchases and other costs of sales
|
0.3
|
(0.6)
|
Gas purchases and other costs of sales
|
-
|
(1.6)
|
|||||||||||||||||
Total
|
$
|
120.0
|
$
|
(25.1)
|
Total
|
$
|
(11.7)
|
$
|
(5.0)
|
Total
|
$
|
8.5
|
$
|
(9.5)
|
||||||||
Nine Months Ended
September 30,
|
Nine Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
|||||||||||||||||
Energy commodity derivative contracts
|
$
|
89.8
|
$
|
33.5
|
Revenues-natural gas sales
|
$
|
0.3
|
$
|
0.5
|
Revenues-natural gas sales
|
$
|
-
|
$
|
-
|
||||||||
Revenues-product sales and other
|
(52.5)
|
(13.6)
|
Revenues-product sales and other
|
10.4
|
5.4
|
|||||||||||||||||
Gas purchases and other costs of sales
|
2.7
|
0.1
|
Gas purchases and other costs of sales
|
-
|
(0.8)
|
|||||||||||||||||
Total
|
$
|
89.8
|
$
|
33.5
|
Total
|
$
|
(49.5)
|
$
|
(13.0)
|
Total
|
$
|
10.4
|
$
|
4.6
|
Derivatives in
net investment
hedging
relationships
|
Amount of gain/(loss)
recognized in OCI on
derivative (effective
portion)
|
Location of
gain/(loss)
reclassified from
Accumulated OCI
into income
(effective portion)
|
Amount of gain/(loss)
reclassified from
Accumulated OCI
into income
(effective portion)
|
Location of
gain/(loss)
recognized in
income on
derivative
(ineffective portion
and amount
excluded from
effectiveness
testing)
|
Amount of gain/(loss)
recognized in income
on derivative
(ineffective portion
and amount
excluded from
effectiveness testing)
|
|||||||||||||||||||||
Three Months Ended
September 30,
|
Three Months Ended
September 30,
|
Three Months Ended
September 30,
|
||||||||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
|||||||||||||||||||||
Cross currency swap agreements
|
$ | - | $ | - |
Other, net
|
$ | - | $ | - |
Revenues
|
$ | - | $ | - | ||||||||||||
Total
|
$ | - | $ | - |
Total
|
$ | - | $ | - |
Total
|
$ | - | $ | - | ||||||||||||
Nine Months Ended
September 30,
|
Nine Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||
Cross currency swap agreements
|
$ | - | $ | 9.6 |
Other, net
|
$ | - | $ | - |
Revenues
|
$ | - | $ | - | ||||||||||||
Total
|
$ | - | $ | 9.6 |
Total
|
$ | - | $ | - |
Total
|
$ | - | $ | - |
Derivatives not designated
as hedging contracts
|
Location of gain/(loss) recognized
in income on derivative
|
Amount of gain/(loss) recognized in income
on derivative
|
|||||||||||||||
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||||||||
Energy commodity derivative contracts
|
Gas purchases and other costs of sales
|
$ | (0.1 | ) | $ | 0.2 | $ | 0.1 | $ | 1.0 | |||||||
Total
|
$ | (0.1 | ) | $ | 0.2 | $ | 0.1 | $ | 1.0 |
Asset
position
|
||||
Interest rate swap agreements
|
$ | 644.6 | ||
Energy commodity derivative contracts
|
262.1 | |||
Gross exposure
|
906.7 | |||
Netting agreement impact
|
(78.5 | ) | ||
Net exposure
|
$ | 828.2 |
Credit ratings downgraded(a)
|
Incremental
obligations
|
Cumulative
obligations
(b)
|
||||||
One notch to BBB-/Baa3
|
$ | - | $ | - | ||||
Two notches to below BBB-/Baa3 (below investment grade)
|
$ | 12.8 | $ | 12.8 |
(a)
|
If there are split ratings among the independent credit rating agencies, most counterparties use the higher credit rating to determine KMP’s incremental collateral obligations, while the remaining use the lower credit rating. Therefore, a two notch downgrade to below BBB-/Baa3 by one agency would not trigger the entire $12.8 million incremental obligation.
|
(b)
|
Includes current posting at current rating.
|
|
▪
|
Level 1 Inputs—quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date;
|
|
▪
|
Level 2 Inputs—inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability; and
|
|
▪
|
Level 3 Inputs—unobservable inputs for the asset or liability. These unobservable inputs reflect the entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability, and are developed based on the best information available in the circumstances (which might include the reporting entity’s own data).
|
Asset fair value measurements using
|
||||||||||||||||
Total
|
Quoted prices in
active markets
for identical
assets (Level 1)
|
Significant other
observable
inputs (Level 2)
|
Significant
unobservable
inputs (Level 3)
|
|||||||||||||
As of September 30, 2011
|
||||||||||||||||
Energy commodity derivative contracts(a)
|
$ | 262.1 | $ | 25.3 | $ | 172.2 | $ | 64.6 | ||||||||
Interest rate swap agreements
|
$ | 644.6 | $ | - | $ | 644.6 | $ | - | ||||||||
As of December 31, 2010
|
||||||||||||||||
Energy commodity derivative contracts(a)
|
$ | 67.1 | $ | - | $ | 23.5 | $ | 43.6 | ||||||||
Interest rate swap agreements
|
$ | 258.6 | $ | - | $ | 258.6 | $ | - |
Liability fair value measurements using
|
||||||||||||||||
Total
|
Quoted prices in
active
markets
for identical
liabilities
(Level 1)
|
Significant other
observable
inputs (Level 2)
|
Significant
unobservable
inputs (Level 3)
|
|||||||||||||
As of September 30, 2011
|
||||||||||||||||
Energy commodity derivative contracts(a)
|
$ | (93.3 | ) | $ | (12.6 | ) | $ | (60.7 | ) | $ | (20.0 | ) | ||||
Interest rate swap agreements
|
$ | - | $ | - | $ | - | $ | - | ||||||||
As of December 31, 2010
|
||||||||||||||||
Energy commodity derivative contracts(a)
|
$ | (384.5 | ) | $ | - | $ | (359.7 | ) | $ | (24.8 | ) | |||||
Interest rate swap agreements
|
$ | (69.2 | ) | $ | - | $ | (69.2 | ) | $ | - |
(a)
|
Level 1 consists primarily of NYMEX natural gas futures. Level 2 consists primarily of OTC West Texas Intermediate swaps and OTC natural gas swaps that are settled on NYMEX. Level 3 consists primarily of natural gas basis swaps and West Texas Intermediate options.
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Derivatives-net asset (liability)
|
||||||||||||||||
Beginning of Period
|
$ | 6.7 | $ | 46.6 | $ | 18.8 | $ | 13.0 | ||||||||
Transfers into Level 3
|
- | - | - | - | ||||||||||||
Transfers out of Level 3
|
- | - | - | - | ||||||||||||
Total gains or (losses)
|
||||||||||||||||
Included in earnings
|
2.6 | (7.5 | ) | 5.4 | 3.6 | |||||||||||
Included in other comprehensive income
|
37.0 | (3.9 | ) | 21.5 | 11.7 | |||||||||||
Purchases
|
- | - | 4.6 | - | ||||||||||||
Issuances
|
- | - | - | - | ||||||||||||
Sales
|
- | - | - | - | ||||||||||||
Settlements
|
(1.7 | ) | (0.6 | ) | (5.7 | ) | 6.3 | |||||||||
End of Period
|
$ | 44.6 | $ | 34.6 | $ | 44.6 | $ | 34.6 | ||||||||
The amount of total gains or (losses) for the period included in earnings attributable to the change in unrealized gains or (losses) relating to assets held at the reporting date
|
$ | 3.2 | $ | (5.8 | ) | $ | 4.4 | $ | 1.3 |
September 30, 2011
|
December 31, 2010
|
|||||||||||||||
Carrying
value
|
Estimated
fair value
|
Carrying
value
|
Estimated
fair value
|
|||||||||||||
Total debt(a)
|
$ | 15,765.7 | $ | 17,175.4 | $ | 15,169.9 | $ | 16,129.1 |
(a)
|
The 2010 amount includes the $750.0 million of 5.35% senior notes paid on January 5, 2011.
|
|
▪
|
Products Pipelines–KMP— the transportation and terminaling of refined petroleum products, including gasoline, diesel fuel, jet fuel and natural gas liquids;
|
|
▪
|
Natural Gas Pipelines–KMP—the sale, transport, processing, treating, storage and gathering of natural gas;
|
|
▪
|
CO
2
–KMP—the production and sale of crude oil from fields in the Permian Basin of West Texas and the transportation and marketing of carbon dioxide used as a flooding medium for recovering crude oil from mature oil fields;
|
|
▪
|
Terminals–KMP—the transloading and storing of refined petroleum products and dry and liquid bulk products, including coal, petroleum coke, cement, alumina, salt and other bulk chemicals;
|
|
▪
|
Kinder Morgan Canada–KMP—the transportation of crude oil and refined products from Alberta, Canada to marketing terminals and refineries in British Columbia, the state of Washington and the Rocky Mountains and Central regions of the United States; and
|
|
▪
|
NGPL PipeCo LLC— consists of our 20% interest in NGPL PipeCo LLC, the owner of Natural Gas Pipeline Company of America and certain affiliates, collectively referred to as Natural Gas Pipeline Company of America or NGPL, a major interstate natural gas pipeline and storage system, which we operate.
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Revenues
|
||||||||||||||||
Products Pipelines–KMP
|
||||||||||||||||
Revenues from external customers
|
$ | 241.6 | $ | 227.7 | $ | 694.6 | $ | 661.5 | ||||||||
Natural Gas Pipelines–KMP
|
||||||||||||||||
Revenues from external customers
|
1,176.4 | 1,147.6 | 3,240.1 | 3,414.0 | ||||||||||||
CO
2
–KMP
|
||||||||||||||||
Revenues from external customers
|
376.3 | 309.1 | 1,076.0 | 972.2 | ||||||||||||
Terminals–KMP
|
||||||||||||||||
Revenues from external customers
|
327.7 | 321.2 | 979.4 | 945.3 | ||||||||||||
Intersegment revenues
|
0.4 | 0.3 | 0.9 | 0.8 | ||||||||||||
Kinder Morgan Canada–KMP
|
||||||||||||||||
Revenues from external customers
|
77.4 | 67.5 | 230.3 | 197.9 | ||||||||||||
Power(a)
|
||||||||||||||||
Revenues from external customers
|
- | 3.3 | - | 8.9 | ||||||||||||
Other
|
||||||||||||||||
NGPL PipeCo LLC fee revenue(b)
|
6.6 | 11.8 | 26.1 | 35.4 | ||||||||||||
Other revenue
|
- | - | 1.1 | 1.5 | ||||||||||||
Total segment revenues
|
2,206.4 | 2,088.5 | 6,248.5 | 6,237.5 | ||||||||||||
Less: Total intersegment revenues
|
(0.4 | ) | (0.3 | ) | (0.9 | ) | (0.8 | ) | ||||||||
Total consolidated revenues
|
$ | 2,206.0 | $ | 2,088.2 | $ | 6,247.6 | $ | 6,236.7 |
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Segment earnings (loss) before depreciation, depletion, amortization and amortization of excess cost of equity investments(c)
|
||||||||||||||||
Products Pipelines–KMP(d)
|
$ | 102.7 | $ | 167.4 | $ | 303.5 | $ | 331.8 | ||||||||
Natural Gas Pipelines–KMP(e)
|
80.5 | 187.1 | 483.7 | 592.3 | ||||||||||||
CO
2
–KMP
|
299.2 | 234.6 | 836.5 | 763.9 | ||||||||||||
Terminals–KMP
|
177.9 | 159.2 | 522.1 | 474.5 | ||||||||||||
Kinder Morgan Canada–KMP
|
48.5 | 44.0 | 150.0 | 132.9 | ||||||||||||
NGPL PipeCo LLC(f)
|
1.7 | 6.2 | 12.3 | (405.0 | ) | |||||||||||
Power(a)
|
- | 1.4 | - | 3.8 | ||||||||||||
Total segment earnings before DD&A
|
710.5 | 799.9 | 2,308.1 | 1,894.2 | ||||||||||||
Depreciation, depletion and amortization
|
(287.8 | ) | (261.7 | ) | (807.6 | ) | (813.7 | ) | ||||||||
Amortization of excess cost of equity investments
|
(1.8 | ) | (1.4 | ) | (4.9 | ) | (4.3 | ) | ||||||||
NGPL PipeCo LLC fee revenue(b)
|
6.6 | 11.8 | 26.1 | 35.4 | ||||||||||||
Other revenue
|
- | - | 1.1 | 1.5 | ||||||||||||
General and administrative expense(g)
|
(109.1 | ) | (308.2 | ) | (399.2 | ) | (528.7 | ) | ||||||||
Unallocable interest and other, net(h)
|
(174.1 | ) | (173.7 | ) | (521.5 | ) | (492.6 | ) | ||||||||
Unallocable income tax benefit (expense)
|
(59.7 | ) | (13.9 | ) | (234.7 | ) | 41.6 | |||||||||
Income from continuing operations
|
$ | 84.6 | $ | 52.8 | $ | 367.4 | $ | 133.4 |
September 30,
2011
|
December 31,
2010
|
|||||||
Assets
|
||||||||
Products Pipelines–KMP
|
$ | 5,671.6 | $ | 5,650.9 | ||||
Natural Gas Pipelines–KMP
|
11,856.9 | 10,960.0 | ||||||
CO
2
–KMP
|
4,203.8 | 4,057.2 | ||||||
Terminals–KMP
|
5,228.8 | 5,009.3 | ||||||
Kinder Morgan Canada–KMP
|
1,804.1 | 1,870.0 | ||||||
NGPL PipeCo LLC
|
259.7 | 265.6 | ||||||
Total segment assets
|
29,024.9 | 27,813.0 | ||||||
Corporate assets(i)
|
1,132.5 | 1,095.1 | ||||||
Total consolidated assets
|
$ | 30,157.4 | $ | 28,908.1 |
(a)
|
On October 22, 2010, we sold our Power facility located in Michigan and as a result, we no longer report Power as a business segment.
|
(b)
|
Effective January 1, 2011, this became a reimbursement of general and administrative costs; see Notes 9 and 11.
|
(c)
|
Includes revenues, earnings from equity investments, allocable interest income, and other, net, less operating expenses, allocable income taxes, and other expense (income).
|
(d)
|
Three and nine month 2011 amounts include increases in expense of $69.3 million and $234.3 million, respectively, primarily associated with adjustments to rate case reserves and rights-of-way lease payment obligations. Nine month 2010 amount includes a $158.0 million increase in expense associated with rate case liability adjustments.
|
(e)
|
Three and nine month 2011 amounts include a $167.2 million loss from the remeasurement of KMP’s previously held 50% equity interest in KinderHawk Field Services LLC to fair value (see Note 2).
|
(f)
|
Nine month 2010 amount includes a $430.0 million non-cash investment impairment charge (see Note 2).
|
(g)
|
Nine month 2011 amount includes (i) a $100 million (pre-tax) increase in special bonus expense. In May of 2011, we paid the bonuses using the $64
million (after-tax) in available earnings and profits reserved for this purpose and not paid in dividends to our Class A shareholders (see Note 5); (ii) a reduction to expense for a $45.8 million Going Private transaction litigation insurance reimbursement; and (iii) $11.1 million increase of expense associated with our initial public offering. 2010 amounts include a $200.0 million increase in expense associated with the Going Private transaction litigation settlement; see Note 11.
|
(h)
|
Includes (i) interest expense and (ii) miscellaneous other income and expenses not allocated to reportable segments.
|
(i)
|
Includes cash and cash equivalents, margin and restricted deposits, unallocable interest receivable, prepaid assets and deferred charges, risk management assets related to the fair value of interest rate swaps and miscellaneous corporate assets (such as information technology and telecommunications equipment) not allocated to individual segments.
|
September 30,
2011
|
December 31,
2010
|
|||||||
Derivatives - asset (liability)
|
||||||||
Current assets
|
$ | 36.7 | $ | - | ||||
Noncurrent assets
|
$ | 49.7 | $ | 12.7 | ||||
Current liabilities
|
$ | (41.3 | ) | $ | (221.4 | ) | ||
Noncurrent liabilities
|
$ | (11.3 | ) | $ | (57.5 | ) |
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||||||
Income tax expense (benefit)
|
$
|
66.5
|
$
|
20.6
|
$
|
250.2
|
$
|
(29.1)
|
|||||||
Effective tax rate
|
44.0
|
%
|
28.1
|
%
|
40.5
|
%
|
(27.9)
|
%
|
|
▪
|
FERC Docket No. IS08-390 (West Line Rates) (Opinion 511)—Protestants: BP, ExxonMobil, ConocoPhillips, Valero Marketing, Chevron, the Airlines—Status: FERC order issued on February 17, 2011. While the order made certain findings that were adverse to SFPP, it ruled in favor of SFPP on many significant issues. Subsequently, SFPP made a compliance filing which estimates approximately $16.0 million in refunds. However, SFPP also filed a rehearing request on certain adverse rulings in the FERC order. It is not possible to predict the outcome of the FERC review of the rehearing request or appellate review of this order;
|
|
▪
|
FERC Docket No. IS09-437 (East Line Rates)—Protestants: BP, ExxonMobil, ConocoPhillips, Valero Marketing, Chevron, Western Refining, Navajo, Holly, and Southwest Airlines—Status: Initial decision issued on February 10, 2011. A FERC administrative law judge generally made findings adverse to SFPP, found that East Line rates should have been lower, and recommended that SFPP pay refunds for alleged over-collections. SFPP has filed a brief with the FERC taking exception to these and other portions of the initial decision. The FERC will review the initial decision, and while the initial decision is inconsistent with a number of the issues ruled on in FERC’s Opinion 511, it is not possible to predict the outcome of FERC or appellate review;
|
|
▪
|
FERC Docket No. IS11-444 (2011 Index Rate Increases)—Protestants: BP, ExxonMobil, ConocoPhillips, Valero Marketing, Chevron, the Airlines, Tesoro, Western Refining, Navajo, and Holly—Status: SFPP withdrew all index rate increases except those that pertain to the West Line. As to the West Line, the index rate increases are currently accepted and suspended, subject to refund, and the case is before a FERC hearing judge;
|
|
▪
|
FERC Docket No. IS11-585 (Withdrawal of 2011 Index Rate Increases)—Protestants: BP, ConocoPhillips, Valero Marketing, Chevron, the Airlines, Tesoro, Western Refining, Navajo, and Holly—Status: SFPP withdrew all index rate increases except those that pertain to the West Line. The Protestants have challenged the index ceiling levels for lines other than the West Line. The protests and SFPP’s answer are currently pending before the FERC;
|
|
▪
|
FERC Docket No. OR11-13 (SFPP Base Rates)—Complainant: ConocoPhillips—Status: SFPP to provide further data within 90 days of the issuance of a final order in Docket No. IS08-390. ConocoPhillips permitted to amend its complaint based on additional data;
|
|
▪
|
FERC Docket No. OR11-14 (SFPP Indexed Rates)—Complainant: ConocoPhillips—Status: Complaint dismissed;
|
|
▪
|
FERC Docket No. OR11-15 (SFPP Base Rates)—Complainant: Chevron—Status: SFPP to provide further data within 90 days of the issuance of a final order in Docket No. IS08-390. Chevron permitted to amend its complaint based on additional data;
|
|
▪
|
FERC Docket No. OR11-16 (SFPP Indexed Rates)—Complainant: Chevron—Status: Complaint dismissed;
|
|
▪
|
FERC Docket No. OR11-18 (SFPP Base Rates)—Complainant: Tesoro—Status: SFPP to provide further data within 90 days of the issuance of a final order in Docket No. IS08-390. Tesoro permitted to amend its complaint based on additional data; and
|
|
▪
|
FERC Docket No. OR11-19 (SFPP Indexed Rates)—Complainant: Tesoro—Status: Complaint dismissed.
|
|
▪
|
FERC Docket No. OR11-20 (SFPP North Line Base Rates)—Complainant: Tesoro—Status: Complaint was filed August 2, 2011. SFPP answered on September 1, 2011. Matter is currently pending before the FERC.
|
|
▪
|
FERC Docket No. OR12-1 (SFPP Index Ceiling Levels)—Complainant: Chevron—Status: Complaint was filed October 5, 2011. SFPP answered on October 26, 2011. Matter is currently pending before the FERC.
|
|
▪
|
FERC Docket No. OR12-2 (SFPP Index Ceiling Levels)—Complainant: Tesoro—Status: Complaint was filed October 5, 2011. SFPP answered on October 26, 2011. Matter is currently pending before the FERC.
|
|
▪
|
FERC Docket No. OR12-3 (SFPP Index Ceiling Levels)—Complainant: ConocoPhillips—Status: Complaint was filed October 5, 2011. SFPP answered on October 26, 2011. Matter is currently pending before the FERC.
|
|
Calnev
|
|
▪
|
FERC Docket Nos. OR07-7, OR07-18, OR07-19, OR07-22, OR09-15 and OR09-20 (consolidated) (Calnev Rates)—Complainants: Tesoro, Airlines, BP, Chevron, ConocoPhillips and Valero Marketing—Status: Before a FERC settlement judge.
|
|
Trailblazer Pipeline Company LLC
|
September 30,
2011
|
December 31,
2010
|
|||||||
Property, plant and equipment, net–KMP
|
$ | 15,344.1 | $ | 14,603.9 | ||||
Purchase accounting adjustments associated with our investment in KMP
|
2,344.7 | 2,445.2 | ||||||
Property, plant and equipment, net–KMI
|
27.1 | 21.6 | ||||||
Property, plant and equipment, net
|
$ | 17,715.9 | $ | 17,070.7 | ||||
Investments–KMP
|
$ | 3,272.5 | $ | 3,886.0 | ||||
Purchase accounting adjustments associated with our investment in KMP
|
136.5 | 139.3 | ||||||
Investments–KMI
|
259.7 | 265.8 | ||||||
Investments
|
$ | 3,668.7 | $ | 4,291.1 | ||||
Goodwill–KMP
|
$ | 1,303.3 | $ | 1,233.6 | ||||
Purchase accounting adjustments associated with our investment in KMP
|
3,637.3 | 3,597.3 | ||||||
Goodwill
|
$ | 4,940.6 | $ | 4,830.9 |
·
|
Largest owner and operator of natural gas pipelines and storage assets in North America with approximately 67,000 miles of natural gas transportation pipelines. Pipelines are connected to many important natural gas shale plays including Eagle Ford, Marcellus, Utica, Haynesville, Fayetteville and Barnett. Largest provider of contracted natural gas treating services and significant other midstream gathering assets.
|
·
|
Largest independent transporter of petroleum products in the United States, transporting approximately 1.9 million barrels per day of gasoline, jet fuel, diesel, natural gas liquids and crude oil through more than 8,000 miles of pipelines.
|
·
|
Largest transporter of CO
2
in the United States, transporting 1.3 billion cubic feet per day. Carbon dioxide is used in enhanced oil recovery projects.
|
·
|
Second largest oil producer in Texas, producing over 50,000 barrels per day.
|
·
|
Largest independent terminal owner/operator in the United States. Liquids terminals have capacity of 107 million barrels and store refined petroleum products, ethanol and more. Dry bulk terminals are expected to handle over 100 million tons of materials in 2011, including products like coal.
|
·
|
Only oil sands pipeline serving the West Coast. The Trans Mountain pipeline system transports 300,000 barrels of crude oil per day to Vancouver, B.C., and Washington state.
|
|
▪
|
helping customers by providing energy, bulk commodity and liquids products transportation, storage and distribution; and
|
|
▪
|
creating long-term value for our stockholders.
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
KMP distributions to us
|
||||||||||||||||
From ownership of general partner interest(a)(b)
|
$ | 303.5 | $ | 97.6 | $ | 878.5 | $ | 607.4 | ||||||||
On KMP units owned by us(c)
|
25.0 | 23.5 | 74.2 | 69.5 | ||||||||||||
On KMR shares owned by us(d)
|
15.6 | 13.8 | 45.6 | 39.9 | ||||||||||||
Total KMP distributions to us
|
344.1 | 134.9 | 998.3 | 716.8 | ||||||||||||
NGPL PipeCo LLC’s distributions to us
|
9.8 | 18.2 | 19.7 | 34.7 | ||||||||||||
Total distributions received
|
353.9 | 153.1 | 1,018.0 | 751.5 | ||||||||||||
General and administrative expenses and sustaining capital expenditures
|
(2.5 | ) | 0.9 | (7.7 | ) | 1.7 | ||||||||||
Interest expense
|
(79.8 | ) | (74.6 | ) | (160.7 | ) | (153.0 | ) | ||||||||
Cash available to pay dividends before cash taxes
|
271.6 | 79.4 | 849.6 | 600.2 | ||||||||||||
Cash taxes(e)
|
(84.7 | ) | (18.1 | ) | (257.4 | ) | (169.2 | ) | ||||||||
Cash available to pay dividends(f)
|
$ | 186.9 | $ | 61.3 | $ | 592.2 | $ | 431.0 |
(a)
|
Based on (i) Kinder Morgan Energy Partners, L.P. (KMP) distributions of $1.15 and $3.42 per common unit paid in the three and nine months ended September 30, 2011, respectively, and distributions of $1.09 and $3.21 per common unit paid in the three and nine months ended September 30, 2010, respectively (versus the $1.16 and $3.45 per common unit declared for the three and nine months ended September 30, 2011, respectively, and distributions of $1.11 and $3.27 per common unit declared in the three and nine months ended September 30, 2010, respectively); (ii) 316.2 million and 298.2 million aggregate common units, Class B units and i-units outstanding as of January 31, 2011 and January 29, 2010, respectively; (iii) 318.9 million and 299.7 million aggregate common units, Class B units and i-units outstanding as of April 29, 2011 and April 30, 2010, respectively; (iv) 329.7 million and 309.3 million aggregate common units, Class B units and i-units outstanding as of July 29, 2011 and July 30, 2010, respectively; and (v) with respect to the 7.9 million common units issued during 2010 that were deemed by us to be issued in connection with financing a portion of the acquisition of KMP’s initial 50% interest in the KinderHawk joint venture, we as general partner have waived receipt of its related incentive distributions from the second quarter 2010 through 2011.
|
(b)
|
Includes $170 million negative impact in the third quarter 2010 of a KMP distribution of cash from an interim capital transaction. As a result of the distribution of cash from an interim capital transaction, the amount actually distributed to the general partner in the third quarter of 2010 was $170 million lower than it otherwise would have been had all distributions been cash from operations.
|
(c)
|
Based on 21.7 million KMP units owned by us multiplied by the KMP per unit distribution paid, as outlined in footnote (a) above.
|
(d)
|
Assumes that we sold approximately 0.2 million and 0.7 million Kinder Morgan Management, LLC (KMR) shares that we received as distributions in the three and nine months ended September 30, 2011, respectively, and approximately 0.3 million and 0.7 million KMR shares that we received as distributions in the three and nine months ended September 30, 2010, respectively, at the price used to calculate the number of KMR shares received in the quarterly distributions. We did not sell any KMR shares in 2011 or 2010. We intend periodically to sell the KMR shares we receive as distributions to generate cash.
|
(e)
|
2010 amounts include approximately $61 million of tax benefits related to an interim capital transaction.
|
(f)
|
Includes approximately $109 million negative impact in the third quarter of 2010 of a KMP distribution of cash from an interim capital transaction. Excluding the effect of the distribution of cash from an interim capital transaction, 2010 projected cash available to pay dividends would have been approximately $170 million and $540 million, respectively, for the three and nine months ended September 30.
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Income from continuing operations(a)
|
$ | 84.6 | $ | 52.8 | $ | 367.4 | $ | 133.4 | ||||||||
Depreciation, depletion and amortization(a)
|
287.8 | 261.7 | 807.6 | 813.7 | ||||||||||||
Amortization of excess cost of equity investments(a)
|
1.8 | 1.4 | 4.9 | 4.3 | ||||||||||||
(Earnings) loss from equity investments(a)
|
(71.0 | ) | (57.2 | ) | (214.7 | ) | 256.1 | |||||||||
Distributions from equity investments
|
65.2 | 53.0 | 200.9 | 154.9 | ||||||||||||
Distributions from equity investments in excess of cumulative earnings
|
53.9 | 78.0 | 185.0 | 187.9 | ||||||||||||
KMP certain items(b)
|
231.8 | 18.8 | 479.5 | 176.3 | ||||||||||||
KMI purchase accounting(c)
|
(2.0 | ) | (12.4 | ) | (8.0 | ) | (29.5 | ) | ||||||||
Going Private Transaction litigation settlement(d)
|
- | 200.0 | - | 200.0 | ||||||||||||
Interim capital transaction(e)
|
- | (166.6 | ) | - | (166.6 | ) | ||||||||||
Difference between cash and book taxes
|
(21.3 | ) | 7.7 | (29.2 | ) | (204.7 | ) | |||||||||
Difference between cash and book interest expense for KMI
|
(38.7 | ) | (35.2 | ) | (36.5 | ) | (36.2 | ) | ||||||||
Sustaining capital expenditures(f)
|
(55.0 | ) | (40.7 | ) | (140.8 | ) | (121.8 | ) | ||||||||
KMP declared distribution on its limited partner units owned by the public(g)
|
(345.1 | ) | (308.9 | ) | (1,007.4 | ) | (892.8 | ) | ||||||||
Other(h)
|
(5.1 | ) | 8.9 | (16.5 | ) | (44.0 | ) | |||||||||
Cash available to pay dividends
|
$ | 186.9 | $ | 61.3 | $ | 592.2 | $ | 431.0 |
(a)
|
Consists of the corresponding line items in our consolidated statements of income included elsewhere in this report.
|
(b)
|
Consists of items such as hedge ineffectiveness, legal and environmental reserves, gain/loss on sale, insurance proceeds from casualty losses, and asset disposition expenses. Three months 2011 includes $167.2 million non-cash loss on remeasurement of KMP’s previously held equity interest in KinderHawk to fair value and $69.3 million increase in expense primarily related to an adverse tentative court decision on the amount of rights-of-way lease payment obligations (amounts included here relate to periods prior to 2011). Nine months 2011 includes (i) $167.2 million non-cash loss on KMP’s previously held equity interest in KinderHawk discussed above, (ii) $234.3 million increase in expense primarily associated with adjustments to rate case reserves and rights-of-way lease payment obligations and (iii) KMP’s portion ($87.1 million) of a $100 million special bonus expense for non-senior employees, which KMP is required to recognize in accordance with U.S. generally accepted accounting principles. However, KMP has no obligation, nor did it pay any amounts in respect to such bonuses. The cost of the $100 million special bonus to non-senior employees was not borne by our Class P shareholders. In May of 2011 we paid for the $100 million of special bonuses, which included the amounts allocated to KMP, using $64 million (after-tax) in available earnings and profits reserved for this purpose and not paid in dividends to our Class A shareholders. KMP adds back these certain items in its calculation of distributable cash flow used to determine its distribution.
|
(c)
|
Consists of non-cash purchase accounting adjustments related to the Going Private Transaction primarily associated with non-cash income recognized from the revaluation of KMP’s crude hedges.
|
(d)
|
Includes a $200 million (pre-tax) Going Private Transaction litigation settlement.
|
(e)
|
Includes an interim capital transaction (ICT Distribution) wherein a portion of KMP’s partnership distributions for the second quarter of 2010 (which it paid in the third quarter of 2010) was a distribution of cash from an ICT Distribution rather than a distribution of cash from operations. The difference between the $166.6 million pre-tax amount shown here and the $170 million pre-tax amount discussed in note (e) to the Cash Available to Pay Dividends table above is due to differences between the earnings impact and the cash impact of the interim capital transaction. The difference is reflected in this table in “Other.” See Note 11 to our consolidated financial statements included elsewhere in this report.
|
(f)
|
We define sustaining capital expenditures as capital expenditures that do not expand the capacity of an asset.
|
(g)
|
Declared distribution multiplied by limited partner units outstanding on the applicable record date less units owned by us. Includes distributions on KMR shares. KMP must generate the cash to cover the distributions on the KMR shares, but those distributions are paid in additional shares and KMP retains the cash. We do not have access to that cash.
|
(h)
|
Consists of items such as timing and other differences between earnings and cash (for example, a lag between when earnings are recognized and distributions are paid, including distributions to us by KMP), the elimination of any earnings from our formerly owned Power segment, KMI certain items, including, for the nine months 2011, KMI’s portion ($12.9 million) of the special bonus described in footnote (b) above, and KMP’s cash flow in excess of its distributions.
|
Three Months Ended
September 30,
|
||||||||||||||||
2011
|
2010
|
Earnings
increase/(decrease)
|
||||||||||||||
(In millions, except percentages)
|
||||||||||||||||
Segment earnings before depreciation, depletion and amortization expense and amortization of excess cost of equity investments(a)
|
||||||||||||||||
Products Pipelines
–
KMP(b)
|
$ | 102.7 | $ | 167.4 | $ | (64.7 | ) | (39 | ) % | |||||||
Natural Gas Pipelines
–
KMP(c)
|
80.5 | 187.1 | (106.6 | ) | (57 | ) % | ||||||||||
CO
2
–
KMP(d)
|
299.2 | 234.6 | 64.6 | 28 | % | |||||||||||
Terminals
–
KMP(e)
|
177.9 | 159.2 | 18.7 | 12 | % | |||||||||||
Kinder Morgan Canada
–
KMP
|
48.5 | 44.0 | 4.5 | 10 | % | |||||||||||
NGPL PipeCo LLC
|
1.7 | 6.2 | (4.5 | ) | (73 | ) % | ||||||||||
Power(f)
|
- | 1.4 | (1.4 | ) | n/a | |||||||||||
Segment earnings before depreciation, depletion and amortization expense and amortization of excess cost of equity investments
|
710.5 | 799.9 | (89.4 | ) | (11 | ) % | ||||||||||
Depreciation, depletion and amortization expense
|
(287.8 | ) | (261.7 | ) | (26.1 | ) | (10 | ) % | ||||||||
Amortization of excess cost of equity investments
|
(1.8 | ) | (1.4 | ) | (0.4 | ) | (29 | ) % | ||||||||
NGPL PipeCo LLC fee revenue(g)
|
6.6 | 11.8 | (5.2 | ) | (44 | ) % | ||||||||||
General and administrative expense(h)
|
(109.1 | ) | (308.2 | ) | 199.1 | 65 | % | |||||||||
Unallocable interest and other, net(i)
|
(174.1 | ) | (173.7 | ) | (0.4 | ) | - | % | ||||||||
Income from continuing operations before income taxes
|
144.3 | 66.7 | 77.6 | 116 | % | |||||||||||
Unallocable income tax expense(a)
|
(59.7 | ) | (13.9 | ) | (45.8 | ) | (329 | ) % | ||||||||
Income from continuing operations
|
84.6 | 52.8 | 31.8 | 60 | % | |||||||||||
Loss from discontinued operations, net of tax
|
(0.4 | ) | (0.2 | ) | (0.2 | ) | (100 | ) | ||||||||
Net income
|
84.2 | 52.6 | 31.6 | 60 | % | |||||||||||
Net (income) loss attributable to noncontrolling interests
|
67.3 | (42.0 | ) | 109.3 | 260 | % | ||||||||||
Net income attributable to Kinder Morgan, Inc.
|
$ | 151.5 | $ | 10.6 | $ | 140.9 | 1,329 | % |
Nine Months Ended
September 30,
|
||||||||||||||||
2011
|
2010
|
Earnings
increase/(decrease)
|
||||||||||||||
(In millions, except percentages)
|
||||||||||||||||
Segment earnings (loss) before depreciation, depletion and amortization expense and amortization of excess cost of equity investments(a)
|
||||||||||||||||
Products Pipelines
–
KMP(j)
|
$ | 303.5 | $ | 331.8 | $ | (28.3 | ) | (9 | ) % | |||||||
Natural Gas Pipelines
–
KMP(k)
|
483.7 | 592.3 | (108.6 | ) | (18 | ) % | ||||||||||
CO
2
–
KMP(l)
|
836.5 | 763.9 | 72.6 | 10 | % | |||||||||||
Terminals
–
KMP(m)
|
522.1 | 474.5 | 47.6 | 10 | % | |||||||||||
Kinder Morgan Canada
–
KMP(n)
|
150.0 | 132.9 | 17.1 | 13 | % | |||||||||||
NGPL PipeCo LLC(o)
|
12.3 | (405.0 | ) | 417.3 | 103 | % | ||||||||||
Power(f)
|
- | 3.8 | (3.8 | ) | n/a | |||||||||||
Segment earnings before depreciation, depletion and amortization expense and amortization of excess cost of equity investments
|
2,308.1 | 1,894.2 | 413.9 | 22 | % | |||||||||||
Depreciation, depletion and amortization expense
|
(807.6 | ) | (813.7 | ) | 6.1 | 1 | % | |||||||||
Amortization of excess cost of equity investments
|
(4.9 | ) | (4.3 | ) | (0.6 | ) | (14 | ) % | ||||||||
NGPL PipeCo LLC fee revenue(g)
|
26.1 | 35.4 | (9.3 | ) | (26 | ) % | ||||||||||
Other revenues
|
1.1 | 1.5 | (0.4 | ) | (27 | ) % | ||||||||||
General and administrative expense(p)
|
(399.2 | ) | (528.7 | ) | 129.5 | 24 | % | |||||||||
Unallocable interest and other, net(q)
|
(521.5 | ) | (492.6 | ) | (28.9 | ) | (6 | ) % | ||||||||
Income from continuing operations before income taxes
|
602.1 | 91.8 | 510.3 | 556 | % | |||||||||||
Unallocable income tax (expense) benefit(a)
|
(234.7 | ) | 41.6 | (276.3 | ) | (664 | ) % | |||||||||
Income from continuing operations
|
367.4 | 133.4 | 234.0 | 175 | % | |||||||||||
Loss from discontinued operations, net of tax
|
(0.5 | ) | (0.4 | ) | (0.1 | ) | (25 | ) % | ||||||||
Net income
|
366.9 | 133.0 | 233.9 | 176 | % | |||||||||||
Net (income) loss attributable to noncontrolling interests
|
71.7 | (237.3 | ) | 309.0 | 130 | % | ||||||||||
Net income (loss) attributable to Kinder Morgan, Inc.(r)
|
$ | 438.6 | $ | (104.3 | ) | $ | 542.9 | 521 | % |
(a)
|
Includes revenues, earnings from equity investments, allocable interest income and other, net, less operating expenses, allocable income taxes, and other expense (income). Operating expenses include natural gas purchases and other costs of sales, operations and maintenance expenses, and taxes, other than income taxes. Segment earnings include KMP’s allocable income tax expense of $6.8 million and $6.7 million, respectively, for the three months ended September 30, 2011 and 2010, respectively, and income tax expense of $15.5 million and $12.5 million for the nine months ended September 30, 2011 and 2010, respectively.
|
(b)
|
2011 amount includes a $69.3 million increase in expense primarily related to an adverse tentative court decision on the amount of rights-of-way lease payment obligations (amounts included in the $69.3 million related to periods prior to 2011), and a $5.6 million increase in expense associated with environmental liability adjustments. 2010 amount includes a $2.5 million increase in expense associated with environmental liability adjustments, and a $1.9 million increase in property environmental expense related to the retirement of the Gaffey Street, California land. 2011 and 2010 amounts also include a $0.3 million decrease in income and a $0.3 million increase in income, respectively, from unrealized foreign currency gains and losses on long-term debt transactions. Also 2010 amount includes a $0.1 million decrease in segment earnings related to property disposal losses which had been revalued as part of the Going Private transaction and recorded in the application of the purchase method of accounting.
|
(c)
|
2011 amount includes a $167.2 million loss from the remeasurement of KMP’s previously held 50% equity interest in KinderHawk Field Services LLC to fair value. 2010 amount includes a $1.6 million decrease in income from unrealized losses on derivative contracts used to hedge forecasted natural gas sales. Also, 2011 and 2010 amounts include decreases in segment earnings of $0.3 million and $0.2 million, respectively, related to assets sold which had been revalued as part of the Going Private transaction and recorded in the application of the purchase method of accounting.
|
(d)
|
2011 and 2010 amounts include an $8.5 million increase in income and a $7.9 million decrease in income, respectively, from unrealized gains and losses on derivative contracts used to hedge forecasted crude oil sales. Also, 2011 and 2010 amounts include increases in segment earnings of $4.4 million and $13.1 million, respectively, primarily resulting from valuation adjustments related to derivative contracts in place at the time of the Going Private transaction and recorded in the application of the purchase method of accounting.
|
(e)
|
2011 amount includes (i) a $1.2 million increase in expense from casualty insurance deductibles; (ii) a combined $0.5 million decrease in income from property write-offs and expenses associated with the dissolution of KMP’s partnership interest in Globalplex Handling; (iii) a $0.2 million decrease in income from adjustments associated with the sale of KMP’s ownership interest in the boat fleeting business KMP acquired from Megafleet Towing Co., Inc. in April 2009; and (iv) a $1.3 million increase in income from the sale of KMP’s ownership interest in Arrow Terminals B.V. 2010 amount includes a $5.0 million increase in expense from casualty insurance deductibles, and a $0.2 million decrease in expense from certain measurement period adjustments related to KMP’s March 5, 2010 Slay Industries terminal acquisition. Also, 2011 amount includes decreases in segment earnings of $1.9 related to assets sold, which had been revalued as part of the Going Private transaction and recorded in the application of the purchase method of accounting.
|
(f)
|
On October 22, 2010, we sold our Power facility located in Michigan and as a result, we no longer report Power as a business segment.
|
(g)
|
Effective January 1, 2011, this became a reimbursement of general and administrative costs; see Notes 9 and 11 to our consolidated financial statements included elsewhere in this report.
|
(h)
|
2011 amount includes (i) a $0.2 million increase in unallocated payroll tax expense related to KMP’s portion ($87.1 million) of the special bonus discussed in item (i) of footnote (p) below; (ii) a $0.1 million decrease in expense related to capitalized overhead costs associated with the 2008 hurricane season; and (iii) a $0.3 million increase in expense for certain legal expenses associated with business acquisitions. Also 2011 amount includes (i) a $2.8 million increase in expense related to non-cash compensation expense and (ii) a $0.1 million increase in Going Private transaction litigation expense. 2011 and 2010 amounts also include increases in expense of $0.1 million and $1.1 million, respectively, for certain asset and business acquisition costs. 2010 amount includes (i) $200 million (pre-tax) Going Private transaction litigation settlement; (ii) a $3.9 million increase in expense related to non-cash compensation; and (iii) a $3.6 million increase in legal expense associated with Going Private transaction and litigation fees.
|
(i)
|
2011 and 2010 amounts include increases in imputed interest expense of $0.1 million and $0.2 million, respectively, related to KMP’s January 1, 2007 Cochin Pipeline acquisition.
|
(j)
|
2011 amount includes (i) a $234.3 million increase in expense primarily associated with adjustments to rate case reserve and rights-of-way lease payment obligations; (ii) a $5.6 million increase in expense associated with environmental liability adjustments; (iii) a $10.8 million increase in income from the sale of a portion of the Gaffey Street, California land; and (iv) a $0.1 million decrease in expense (reflecting tax savings) related to non-cash compensation expense allocated to KMP from us. 2010 amount includes (i) a $158.0 million increase in expense associated with rate case liability adjustments; (ii) a $17.4 million decrease in income associated with combined property environmental expenses and disposal losses related to the demolition of physical assets in preparation for the sale of the Gaffey Street, California land; and (iii) a $2.5 million increase in expense associated with environmental liability adjustments. 2011 and 2010 amounts include a $0.1 million decrease in income and a $0.4 million increase in income, respectively, from unrealized foreign currency gains and losses on long-term debt transactions. Also 2011 and 2010 amounts include decreases in segment earnings of $0.4 million and $7.3 million, respectively, related to property disposal losses which had been revalued as part of the Going Private transaction and recorded in the application of the purchase method of accounting.
|
(k)
|
2011 amount includes a $167.2 million loss from the remeasurement of KMP’s previously held 50% equity interest in KinderHawk Field Services LLC to fair value, and a $9.7 million increase in expense from the write-off of a receivable for fuel under-collected prior to 2011. 2010 amount includes a $0.8 million decrease in income from unrealized losses on derivative contracts used to hedge forecasted natural gas sales, and a $0.4 million increase in income from certain measurement period adjustments related to
|
KMP’s October 1, 2009 natural gas treating business acquisition. Also, 2011 and 2010 amounts include decreases in segment earnings of $1.0 million and $0.7 million, respectively, related to assets sold which had been revalued as part of the Going Private transaction and recorded in the application of the purchase method of accounting. 2010 amount includes a $0.1 million increase in segment earnings resulting from valuation adjustments related to derivative contracts in place at the time of the Going Private transaction and recorded in the application of the purchase method of accounting.
|
|
(l)
|
2011 and 2010 amounts include increases in income of $10.4 million and $5.4 million, respectively, from unrealized gains on derivative contracts used to hedge forecasted crude oil sales. Also, 2011 and 2010 amounts include increases in segment earnings of $13.3 million and $39.8 million, respectively, primarily resulting from valuation adjustments related to derivative contracts in place at the time of the Going Private transaction and recorded in the application of the purchase method of accounting.
|
(m)
|
2011 amount includes (i) a $4.7 million decrease in expense (reflecting tax savings) related to non-cash compensation expense allocated to KMP from us; (ii) a $4.3 million casualty indemnification gain related to a 2008 fire at the Pasadena, Texas liquids terminal; (iii) a $2.2 million increase in income associated with the sale of a 51% ownership interest in two of KMP’s subsidiaries: River Consulting LLC and Devco USA L.L.C.; (iv) a $2.0 million increase in income from adjustments associated with the sale of KMP’s ownership interest in the boat fleeting business it acquired from Megafleet Towing Co., Inc. in April 2009; (v) a $1.3 million increase in income from the sale of KMP’s ownership interest in Arrow Terminals B.V.; (vi) a $4.4 million decrease in income from casualty insurance deductibles and the write-off of assets related to casualty losses; (vii) a $1.2 million increase in expense associated with environmental liability adjustments; (viii) a $0.6 million increase in expense associated with the settlement of a litigation matter at the Carteret, New Jersey liquids terminal; and (ix) a combined $0.5 million decrease in income from property write-offs and expenses associated with the dissolution of KMP’s partnership interest in Globalplex Handling. 2010 amount includes (i) a $6.7 million casualty indemnification gain related to a 2008 fire at the Pasadena, Texas liquids terminal; (ii) a $0.2 million decrease in expense from certain measurement period adjustments related to KMP’s March 5, 2010 Slay Industries terminal acquisition; (iii) a $5.0 million increase in expense from casualty insurance deductibles; and (iv) a $0.6 million increase in expense related to storm and flood clean-up and repair activities. Also, 2011 and 2010 amounts include decreases in segment earnings of $2.4 million and $0.7 million, respectively, related to assets sold, which had been revalued as part of the Going Private transaction and recorded in the application of the purchase method of accounting.
|
(n)
|
2011 amount includes a $2.2 million decrease in expense (reflecting tax savings) related to non-cash compensation expense allocated to KMP from us.
|
(o)
|
2010 amount includes a non-cash investment impairment charge of $430.0 million; see Note 2 to our consolidated financial statements included elsewhere in this report.
|
(p)
|
2011 amount includes (i) a $100 million (pre-tax) increase in a special bonus expense for non-senior employees. The cost of this bonus was not borne by our Class P shareholders. KMI paid for these bonuses, which included the amounts allocated to KMP, using $64 million (after-tax) in available earnings and profits reserved for this purpose and not paid in dividends to KMI’s Class A shareholders; (ii) a $1.2 million increase in unallocated payroll tax expense related to KMP’s portion ($87.1 million) of the special bonus discussed preceding; (iii) a $1.2 million increase in expense for certain asset and business acquisition costs; (iv) a $0.3 million increase in expense for certain legal expenses associated with business acquisitions; and (v) a $0.2 million decrease in expense related to capitalized overhead costs associated with the 2008 hurricane season. Also, 2011 amount includes (i) a reduction to expense for a $45.8 million Going Private transaction litigation insurance reimbursement; (ii) a $11.1 million increase of expense associated with our initial public offering; (iii) a $3.6 million increase in expense related to non-cash compensation expense; (iv) a $0.8 million increase in Going Private transaction litigation expense; and (v) a $0.2 million increase in expense for services associated with our postretirement employee benefits. 2010 amount includes (i) a $200 million (pre-tax) Going Private transaction litigation settlement; (ii) a $3.5 million increase in expense for certain asset and business acquisition costs; (iii) a $1.6 million increase in legal expense associated with items disclosed in these footnotes such as legal settlements and pipeline failures; and (iv) a $0.2 million decrease in expense related to capitalized overhead costs associated with the 2008 hurricane season. Also, 2010 amount includes (i) a $6.2 million increase in legal expense associated with Going Private transaction and litigation fees; (ii) a $4.8 million increase in expense related to non-cash compensation expense; and (iii) a $1.5 million reduction in expense associated with an insurance reimbursement.
|
(q)
|
2011 and 2010 amounts include increases in imputed interest expense of $0.5 million and $0.8 million, respectively, related to KMP’s January 1, 2007 Cochin Pipeline acquisition.
|
(r)
|
2010 amounts include a reduction of approximately $107 million (after-tax) due to a KMP interim capital transaction. See Note 11 of our consolidated financial statements included elsewhere in this report.
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(In millions, except operating statistics)
|
||||||||||||||||
Revenues
|
$ | 241.6 | $ | 227.7 | $ | 694.6 | $ | 661.5 | ||||||||
Operating expenses(a)
|
(146.8 | ) | (67.8 | ) | (425.8 | ) | (341.7 | ) | ||||||||
Other income (expense)(b)
|
(0.2 | ) | (0.2 | ) | 10.0 | (11.3 | ) | |||||||||
Earnings from equity investments
|
9.3 | 4.9 | 23.9 | 15.5 | ||||||||||||
Interest income and Other, net(c)
|
0.4 | 2.1 | 3.9 | 6.0 | ||||||||||||
Income tax (expense) benefit(d)
|
(1.6 | ) | 0.7 | (3.1 | ) | 1.8 | ||||||||||
Earnings before depreciation, depletion and amortization expense and amortization of excess cost of equity investments
|
$ | 102.7 | $ | 167.4 | $ | 303.5 | $ | 331.8 | ||||||||
Gasoline (MMBbl)(e)
|
101.7 | 102.2 | 297.2 | 299.4 | ||||||||||||
Diesel fuel (MMBbl)
|
37.2 | 38.4 | 110.7 | 109.5 | ||||||||||||
Jet fuel (MMBbl)
|
28.1 | 27.1 | 82.9 | 78.1 | ||||||||||||
Total refined product volumes (MMBbl)
|
167.0 | 167.7 | 490.8 | 487.0 | ||||||||||||
Natural gas liquids (MMBbl)
|
7.6 | 6.7 | 19.8 | 18.3 | ||||||||||||
Total delivery volumes (MMBbl)(f)
|
174.6 | 174.4 | 510.6 | 505.3 | ||||||||||||
Ethanol (MMBbl)(g)
|
8.0 | 7.6 | 23.0 | 22.4 |
(a)
|
Three and nine month 2011 amounts include increases in expense of $69.3 million and $234.3 million, respectively, primarily associated with adjustments to rate case reserves and rights-of-way lease payment obligations, and a $5.6 million increase in expense associated with environmental liability adjustments. Three and nine month 2010 amounts include increases in expense of $2.5 million associated with environmental liability adjustments, and increases in expense of $1.9 million and $13.5 million, respectively, associated with environmental clean-up expenses and the demolition of physical assets in preparation for the sale of the Gaffey Street, California land. Nine month 2010 amount also includes a $158.0 million increase in expense associated with rate case liability adjustments.
|
(b)
|
Nine month 2011 amount includes a $10.8 million increase in income from the sale of a portion of KMP’s Gaffey Street, California
|
land. Nine month 2010 amount includes property disposal losses of $3.9 million related to the demolition of physical assets in preparation for the sale of KMP’s Gaffey Street, California land. Also, nine month 2011 amount includes decrease in segment earnings of $0.4 million; and three and nine month 2010 amounts include a $0.1 million and $7.3 million, respectively, decrease in segment earnings all related to property disposal losses, which had been revalued as part of the Going Private transaction and recorded in the application of the purchase method of accounting.
|
||
(c)
|
Three and nine month 2011 amounts include decreases in income of $0.3 million and $0.1 million, respectively, and three and nine month 2010 amounts include increases in income of $0.3 million and $0.4 million, respectively, all resulting from unrealized foreign currency gains and losses on long-term debt transactions.
|
|
(d)
|
Nine month 2011 amount includes a $0.1 million decrease in expense (reflecting tax savings) related to non-cash compensation expense allocated to KMP from us.
|
|
(e)
|
Volumes include ethanol pipeline volumes.
|
|
(f)
|
Includes Pacific, Plantation, Calnev, Central Florida, Cochin and Cypress pipeline volumes.
|
|
(g)
|
Represents total ethanol volumes, including ethanol pipeline volumes included in gasoline volumes above.
|
EBDA
increase/(decrease)
|
Revenues
increase/(decrease)
|
|||||||||||||||
(In millions, except percentages)
|
||||||||||||||||
Cochin Pipeline
|
$ | 8.0 | 77 | % | $ | 14.2 | 108 | % | ||||||||
Plantation Pipeline
|
3.4 | 31 | % | 0.4 | 7 | % | ||||||||||
Southeast Terminals
|
2.5 | 18 | % | 4.8 | 24 | % | ||||||||||
West Coast Terminals
|
1.9 | 10 | % | 1.9 | 7 | % | ||||||||||
Central Florida Pipeline
|
0.5 | 4 | % | (0.8 | ) | (5 | ) % | |||||||||
Pacific operations
|
(8.5 | ) | (11 | ) % | (4.2 | ) | (4 | ) % | ||||||||
Calnev Pipeline
|
(0.6 | ) | (4 | ) % | - | - | % | |||||||||
All others (including eliminations)
|
(0.9 | ) | (9 | ) % | (2.4 | ) | (17 | ) % | ||||||||
Total Products Pipelines
–
KMP
|
$ | 6.3 | 4 | % | $ | 13.9 | 6 | % |
EBDA
increase/(decrease)
|
Revenues
increase/(decrease)
|
|||||||||||||||
(In millions, except percentages)
|
||||||||||||||||
Cochin Pipeline
|
$ | 18.1 | 77 | % | $ | 26.1 | 79 | % | ||||||||
Plantation Pipeline
|
6.7 | 20 | % | 0.7 | 5 | % | ||||||||||
West Coast Terminals
|
5.8 | 10 | % | 8.0 | 11 | % | ||||||||||
Southeast Terminals
|
0.5 | 1 | % | 8.3 | 12 | % | ||||||||||
Pacific operations
|
(4.1 | ) | (2 | ) % | (3.4 | ) | (1 | ) % | ||||||||
Central Florida Pipeline
|
(3.9 | ) | (9 | ) % | (1.6 | ) | (3 | ) % | ||||||||
Calnev Pipeline
|
(3.8 | ) | (9 | ) % | (3.2 | ) | (6 | ) % | ||||||||
All others (including eliminations)
|
(2.9 | ) | (9 | ) % | (1.8 | ) | (5 | ) % | ||||||||
Total Products Pipelines
–
KMP
|
$ | 16.4 | 3 | % | $ | 33.1 | 5 | % |
|
▪
|
increases of $8.0 million (77%) and $18.1 million (77%), respectively, due to higher earnings from the Cochin natural gas liquids pipeline system. The earnings increases were driven by system-wide increases in throughput volumes of 53% and 48%, respectively,
due to increased demand for both terminal and storage deliveries on the
|
|
|
pipeline’s West leg (U.S.), higher customer demand on the pipeline’s East leg (Canadian), and for the comparable nine month periods, to the exercise of a certain shipper incentive tariff offered in the first quarter of 2011
;
|
|
▪
|
increases of $3.4 million (31%) and $6.7 million (20%), respectively, from KMP’s 51%-owned Plantation pipeline system. Plantation benefitted from higher oil loss allowance revenues and higher mainline transportation revenues, and for the comparable nine month periods, the
absence of an expense from the write-off of an uncollectible receivable in the first quarter of 2010;
|
|
▪
|
increases of $2.5 million (18%) and $0.5 million (1%), respectively, from the Southeast terminal operations. The increases were due to strong third quarter 2011 results, driven by higher product inventory gains and higher revenues from ethanol and other blending services, relative to the third quarter of 2010;
|
|
▪
|
increases of $1.9 million (10%) and $5.8 million (10%), respectively, from the West Coast terminal operations. The increases in terminal earnings were mainly due to the completion of various terminal expansion projects that increased liquids tank capacity since the end of the third quarter of 2010 and to higher rates on existing storage;
|
|
▪
|
an increase of $0.5 million (4%) and a decrease of $3.9 million (9%), respectively, from the Central Florida Pipeline. Earnings from the Central Florida pipeline system were flat across both comparable quarterly periods, but decreased in the comparable nine month periods largely due to a 12% drop in pipeline delivery volumes, due primarily to weaker demand and to the incremental business of a competing terminal in Florida;
|
|
▪
|
decreases of $8.5 million (11%) and $4.1 million (2%), respectively, from the Pacific operations. The decrease in earnings for the comparable third quarter periods was largely due to a $7.6 million increase in operating expense related to an adverse tentative court decision on the amount of 2011 rights-of-way lease payment obligations. The decrease in earnings for the comparable nine month periods was primarily due to a drop in mainline delivery revenues, partially offset by an increase in fee-based terminal revenues. The decrease in delivery revenues was primarily due to lower average tariffs, due both to lower rates on the system’s East Line deliveries as a result of rate case settlements since the end of the third quarter of 2010 and to lower military tenders. The increase in terminal revenues was largely attributable to a 12% increase in ethanol handling volumes;
|
|
▪
|
decreases of $0.6 million (4%) and $3.8 million (9%), respectively, from the Calnev Pipeline. Earnings from Calnev were essentially unchanged across the comparable three month periods, but decreased across the comparable nine month periods due largely to a 21% drop in ethanol handling volumes in the first nine months of 2011, due both to lower deliveries to the Las Vegas market, and to incremental ethanol blending services offered by a competing terminal.
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(In millions, except operating statistics)
|
||||||||||||||||
Revenues(a)
|
$ | 1,176.4 | $ | 1,147.6 | $ | 3,240.1 | $ | 3,414.0 | ||||||||
Operating expenses(b)
|
(981.8 | ) | (1,001.8 | ) | (2,744.9 | ) | (2,938.0 | ) | ||||||||
Other expense(c)
|
(0.3 | ) | (0.2 | ) | (1.0 | ) | (0.7 | ) | ||||||||
Earnings from equity investments(d)
|
50.8 | 42.0 | 154.6 | 115.9 | ||||||||||||
Interest income and Other, net
|
(164.1 | ) | 0.6 | (161.7 | ) | 2.9 | ||||||||||
Income tax expense
|
(0.5 | ) | (1.1 | ) | (3.4 | ) | (1.8 | ) | ||||||||
Earnings before depreciation, depletion and amortization expense and amortization of excess cost of equity investments
|
$ | 80.5 | $ | 187.1 | $ | 483.7 | $ | 592.3 | ||||||||
Natural gas transport volumes (Bcf)(e)
|
738.5 | 658.6 | 2,167.5 | 1,925.6 | ||||||||||||
Natural gas sales volumes (Bcf)(f)
|
215.1 | 214.1 | 598.7 | 602.1 |
(a)
|
Nine month 2010 amount includes a $0.4 million increase in revenues from certain measurement period adjustments related to KMP’s October 1, 2009 natural gas treating business acquisition.
|
(b)
|
Nine month 2011 amounts include a $9.7 million increase in expense from the write-off of a receivable for fuel under-collected prior to 2011. Three and nine month 2010 amounts include unrealized losses of $1.6 million and $0.8 million, respectively, on derivative contracts used to hedge forecasted natural gas sales. Also, nine month 2010 amount includes an increase in segment earnings of $0.1 million resulting from valuation adjustments related to derivative contracts in place at the time of the Going Private transaction and recorded in the application of the purchase method of accounting.
|
(c) |
Three and nine month 2011 and 2010 amounts represent decreases in segment earnings related to assets sold, which had been revalued as part of the Going Private transaction and recorded in the application of the purchase method of accounting.
|
(d)
|
Three and nine month 2011 amounts include a $167.2 million loss from the remeasurement of KMP’s previously held 50% equity interest in KinderHawk Field Services LLC to fair value.
|
(e)
|
Includes Kinder Morgan Interstate Gas Transmission LLC, Trailblazer Pipeline Company LLC, TransColorado Gas Transmission Company LLC, Rockies Express Pipeline LLC, Midcontinent Express Pipeline LLC, Kinder Morgan Louisiana Pipeline LLC and Texas intrastate natural gas pipeline group, and for 2011 only, Fayetteville Express Pipeline LLC pipeline volumes.
|
(f)
|
Represents Texas intrastate natural gas pipeline group volumes.
|
EBDA
increase/(decrease)
|
Revenues
increase/(decrease)
|
|||||||||||||||
(In millions, except percentages)
|
||||||||||||||||
KinderHawk Field Services(a)
|
$ | 40.2 | n/a | $ | 49.3 | n/a | ||||||||||
Texas Intrastate Natural Gas Pipeline Group
|
6.7 | 10 | % | (15.5 | ) | (2 | )% | |||||||||
Fayetteville Express Pipeline(b)
|
6.1 | n/a | n/a | n/a | ||||||||||||
Kinder Morgan Interstate Gas Transmission
|
3.1 | 13 | % | (6.9 | ) | (13 | )% | |||||||||
Midcontinent Express Pipeline(b)
|
2.8 | 35 | % | n/a | n/a | |||||||||||
Casper and Douglas Natural Gas Processing
|
1.7 | 40 | % | 5.3 | 23 | % | ||||||||||
Rockies Express Pipeline(b)
|
0.6 | 3 | % | n/a | n/a | |||||||||||
Trailblazer Pipeline
|
(2.0 | ) | (19 | )% | (1.8 | ) | (13 | )% | ||||||||
All others (including eliminations)
|
(0.1 | ) | - | (1.6 | ) | (3 | )% | |||||||||
Total Natural Gas Pipelines–KMP
|
$ | 59.1 | 31 | % | $ | 28.8 | 3 | % |
EBDA
increase/(decrease)
|
Revenues
increase/(decrease)
|
|||||||||||||||
(In millions, except percentages)
|
||||||||||||||||
KinderHawk Field Services(a)
|
$ | 60.8 | n/a | $ | 49.3 | n/a | ||||||||||
Fayetteville Express Pipeline(b)
|
11.7 | n/a | n/a | n/a | ||||||||||||
Midcontinent Express Pipeline(b)
|
10.3 | 49 | % | n/a | n/a | |||||||||||
Casper and Douglas Natural Gas Processing
|
8.9 | 67 | % | 18.8 | 25 | % | ||||||||||
Texas Intrastate Natural Gas Pipeline Group
|
5.9 | 3 | % | (214.9 | ) | (7 | )% | |||||||||
Kinder Morgan Interstate Gas Transmission
|
(12.6 | ) | (16 | )% | (20.1 | ) | (15 | )% | ||||||||
Trailblazer Pipeline
|
(8.0 | ) | (24 | )% | (3.2 | ) | (8 | )% | ||||||||
Rockies Express Pipeline(b)
|
(5.7 | ) | (9 | )% | n/a | n/a | ||||||||||
All others (including eliminations)
|
(3.0 | ) | (2 | )% | (3.4 | ) | (2 | )% | ||||||||
Total Natural Gas Pipelines–KMP
|
$ | 68.3 | 12 | % | $ | (173.5 | ) | (5 | )% |
(a)
|
Equity investment until July 1, 2011. See Note (b).
|
(b)
|
Equity investment. KMP records earnings under the equity method of accounting, but it receives distributions in amounts essentially equal to equity earnings plus depreciation and amortization expenses less sustaining capital expenditures.
|
|
▪
|
increases of $40.2 million and $60.8 million, respectively, from incremental earnings from KMP’s now wholly-owned KinderHawk Field Services LLC. KMP acquired an initial 50% ownership interest in KinderHawk on May 21, 2010 and we accounted for this investment under the equity method of accounting. On July 1, 2011, KMP
|
|
acquired the remaining 50% ownership interest in KinderHawk and we now account for KMP’s investment under the full consolidation method. For more information about the July 2011 KinderHawk acquisition, see Note 2 “Acquisitions and Divestitures—Acquisitions— KinderHawk Field Services LLC and EagleHawk Field Services LLC” to our consolidated financial statements included elsewhere in this report;
|
|
▪
|
increases of $6.7 million (10%) and $5.9 million (3%), respectively, from the Texas intrastate natural gas pipeline group. The increase in earnings for the comparable third quarter periods was due to (i) higher earnings from natural gas processing activities (due largely to higher average natural gas liquids prices); (ii) a favorable settlement related to the natural gas drilling and gathering operations of GMX, the original owner and now remaining 60% owner of KMP’s 40%-owned Endeavor Gathering LLC; and (iii) higher natural gas transportation margins (due largely to an 18% increase in delivery volumes). The overall increase was partially offset, however, by lower margins from natural gas sales, mainly attributable to higher costs of natural gas supplies relative to sales price. For the comparable nine month periods, the increase in earnings was primarily due to (i) higher margins from both natural gas storage and transportation services (due to favorable storage price spreads and a 12% increase in transportation volumes); (ii) higher earnings from natural gas processing activities; and (iii) incremental equity earnings from both Endeavor and KMP’s 50%-owned Eagle Ford Gathering LLC. The overall increase was partially offset by lower natural gas sales margins and higher pipeline integrity expenses;
|
|
▪
|
increases of $6.1 million and $11.7 million, respectively, from incremental equity earnings from KMP’s 50% interest in the Fayetteville Express pipeline system. The Fayetteville Express system began firm contract transportation service on January 1, 2011;
|
|
▪
|
an increase of $3.1 million (13%) and a decrease of $12.6 million (16%), respectively, from the Kinder Morgan Interstate Gas Transmission pipeline system. The increase in earnings for the comparable three month periods was driven by higher margins on operational gas sales in the third quarter of 2011. The decrease in earnings for the comparable nine month periods was driven by lower net fuel recoveries and lower transportation revenues, due both to a 14% drop in transportation volumes and to the regulatory settlement discussed in Note 11 “Litigation, Environmental and Other Contingencies—Federal Energy Regulatory Commission Proceedings— Kinder Morgan Interstate Gas Transmission LLC Section 5 Proceeding” to our consolidated financial statements included elsewhere in this report;
|
|
▪
|
increases of $2.8 million (35%) and $10.3 million (49%), respectively, from KMP’s 50% interest in the Midcontinent Express pipeline system. The increases were driven by higher transportation revenues, and for the comparable nine month periods, by the June 2010 completion of an expansion project that increased the system’s Zone 1 transportation capacity from 1.5 billion to 1.8 billion cubic feet per day, and Zone 2 capacity from 1.0 billion to 1.2 billion cubic feet per day;
|
|
▪
|
increases of $1.7 million (40%) and $8.9 million (67%), respectively, from the Casper Douglas gas processing operations, primarily attributable to both higher processing spreads and higher sales volumes. The increases in sales volumes were due largely to increased drilling activity in the Douglas, Wyoming plant area;
|
|
▪
|
an increase of $0.6 million (3%) and a decrease of $5.7 million (9%), respectively, in equity earnings from KMP’s 50% ownership interest in the Rockies Express pipeline system. For the comparable nine month periods, equity earnings decreased due primarily to higher interest expenses and higher operating expenses. Rockies Express issued $1.7 billion aggregate principal amount of fixed rate senior notes in a private offering in March 2010 to secure permanent financing for the Rockies Express pipeline construction costs. The increase in operating expenses was due in part to the write-off of certain transportation fuel recovery receivables pursuant to a contractual agreement. The overall decrease in net income was partially offset by higher firm reservation fees in the first nine months of 2011, due in part to a portion of the Rockies Express-East pipeline segment being shutdown for 26 days in the first quarter of 2010 due to a pipeline girth weld failure that occurred in November 2009; and
|
|
▪
|
decreases of $2.0 million (19%) and $8.0 million (24%), respectively, from the Trailblazer pipeline system, mainly attributable to lower transportation base rates (as a result of rate case settlements since the end of the third quarter of 2010), lower backhaul transportation services, and for the comparable nine month periods, a $4.3 million increase in expense from the write-off of receivables for under-collected fuel (incremental to the $9.7 million increase in expense that is described in footnote (b) to the results of operations table above and which relates to periods prior to 2011).
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(In millions, except operating statistics)
|
||||||||||||||||
Revenues(a)
|
$ | 376.3 | $ | 309.1 | $ | 1,076.0 | $ | 972.2 | ||||||||
Operating expenses
|
(83.0 | ) | (78.2 | ) | (255.9 | ) | (229.9 | ) | ||||||||
Earnings from equity investments
|
6.2 | 4.7 | 17.8 | 17.7 | ||||||||||||
Interest income and Other, net
|
0.9 | - | 2.0 | 1.9 | ||||||||||||
Income tax (expense) benefit
|
(1.2 | ) | (1.0 | ) | (3.4 | ) | 2.0 | |||||||||
Earnings before depreciation, depletion and amortization expense and amortization of excess cost of equity investments
|
$ | 299.2 | $ | 234.6 | $ | 836.5 | $ | 763.9 | ||||||||
Southwest Colorado carbon dioxide production (gross) (Bcf/d)(b)
|
1.2 | 1.2 | 1.2 | 1.2 | ||||||||||||
Southwest Colorado carbon dioxide production (net) (Bcf/d)(b)
|
0.5 | 0.5 | 0.5 | 0.5 | ||||||||||||
SACROC oil production (gross)(MBbl/d)(c)
|
29.4 | 29.0 | 28.9 | 29.4 | ||||||||||||
SACROC oil production (net)(MBbl/d)(d)
|
24.5 | 24.2 | 24.1 | 24.5 | ||||||||||||
Yates oil production (gross)(MBbl/d)(c)
|
21.5 | 23.2 | 21.7 | 24.4 | ||||||||||||
Yates oil production (net)(MBbl/d)(d)
|
9.5 | 10.3 | 9.6 | 10.8 | ||||||||||||
Katz oil production (gross)(MBbl/d)(c)
|
0.5 | 0.3 | 0.3 | 0.3 | ||||||||||||
Katz oil production (net)(MBbl/d)(d)
|
0.4 | 0.2 | 0.3 | 0.3 | ||||||||||||
Natural gas liquids sales volumes (net)(MBbl/d)(d)
|
8.4 | 10.0 | 8.4 | 9.9 | ||||||||||||
Realized weighted average oil price per Bbl(e)
|
$ | 70.43 | $ | 59.54 | $ | 69.54 | $ | 59.88 | ||||||||
Realized weighted average natural gas liquids price per Bbl(f)
|
$ | 68.86 | $ | 46.73 | $ | 65.53 | $ | 50.06 |
(a)
|
Three and nine month 2011 amounts include unrealized gains of $8.5 million and $10.4 million, respectively, and three and nine month 2010 amounts include unrealized losses of $7.9 million and unrealized gains of $5.4 million, respectively, all relating to derivative contracts used to hedge forecasted crude oil sales. Also, three and nine month 2011 amounts include increases in segment earnings of $4.4 million and $13.3 million, respectively, and three and nine month 2010 amounts include increases in segment earnings of $13.1 million and $39.8 million, respectively, primarily resulting from valuation adjustments related to derivative contracts in place at the time of the Going Private transaction and recorded in the application of the purchase method of accounting.
|
(b)
|
Includes McElmo Dome and Doe Canyon sales volumes.
|
(c)
|
Represents 100% of the production from the field. KMP owns an approximately 97% working interest in the SACROC unit and an approximately 50% working interest in the Yates unit.
|
(d)
|
Net to KMP, after royalties and outside working interests.
|
(e)
|
Includes all of KMP’s crude oil production properties.
|
(f)
|
Includes production attributable to leasehold ownership and production attributable to KMP’s ownership in processing plants and third party processing agreements.
|
EBDA
increase/(decrease)
|
Revenues
increase/(decrease)
|
|||||||||||||||
(In millions, except percentages)
|
||||||||||||||||
Oil and Gas Producing Activities
|
$ | 46.0 | 28 | % | $ | 47.8 | 20 | % | ||||||||
Sales and Transportation Activities
|
10.9 | 18 | % | 15.7 | 22 | % | ||||||||||
Intrasegment eliminations
|
- | - | (3.9 | ) | (30 | ) % | ||||||||||
Total CO
2
–KMP
|
$ | 56.9 | 25 | % | $ | 59.6 | 20 | % |
EBDA
increase/(decrease)
|
Revenues
increase/(decrease)
|
|||||||||||||||
(In millions, except percentages)
|
||||||||||||||||
Oil and Gas Producing Activities
|
$ | 66.0 | 13 | % | $ | 91.0 | 12 | % | ||||||||
Sales and Transportation Activities
|
28.1 | 14 | % | 46.8 | 21 | % | ||||||||||
Intrasegment eliminations
|
- | - | (12.4 | ) | (32 | ) % | ||||||||||
Total CO
2
–KMP
|
$ | 94.1 | 13 | % | $ | 125.4 | 14 | % |
|
▪
|
increases of $33.2 million (17%) and $65.0 million (11%), respectively, in crude oil sales revenues—due to higher average realized sales prices for U.S. crude oil. The realized weighted average price per barrel of crude oil increased 18% in the third quarter of 2011 and 16% in the first nine months of 2011, when compared to the same periods in 2010. The overall increases in crude oil sales revenues were partially offset, by small decreases in oil production volumes at the SACROC and Yates field units (volumes presented in the results of operations table above);
|
|
▪
|
increases of $10.1 million (23%) and $13.9 million (10%), respectively, in natural gas plant products sales revenues, due to increases of 47% and 31%, respectively, in the realized weighted average price per barrel of natural gas liquids. The increases in revenues from higher realized sales prices were partially offset by decreases in liquids sales volumes of 16% and 15%, respectively. The decreases in volumes were mainly related to the contractual reduction in KMP’s net interest in liquids production from the SACROC field (described following);
|
|
▪
|
increases of $4.6 million (118%) and $13.2 million (119%), respectively, in net profits interest revenues from KMP’s 28% net profits interest in the Snyder, Texas natural gas processing plant. The increases in net profits interest revenues from the Snyder plant were driven by higher natural gas liquids prices in the first nine months of 2011, record producing volumes in the third quarter of 2011, and the favorable impact from the restructuring of certain liquids processing contracts that became effective at the beginning of 2011; and
|
|
▪
|
decreases of $2.7 million (3%) and $23.9 million (10%), respectively, due to higher combined operating expenses, driven primarily by higher carbon dioxide supply expenses that related to both initiating carbon dioxide injections into the Katz field and higher carbon dioxide prices. The overall increases in expense were partially offset by a $14.0 million reduction in severance tax expense recognized in the third quarter of 2011.
|
|
▪
|
increases of $13.9 million (27%) and $37.4 million (24%), respectively, in carbon dioxide sales revenues, primarily due to higher average sales prices. The segment’s average price received for all carbon dioxide sales in
|
|
|
the third quarter and first nine months of 2011 increased 23% and 22%, respectively, due largely to the fact that a portion of its carbon dioxide sales contracts are indexed to oil prices. Overall carbon dioxide sales volumes increased by 3% in the third quarter of 2011 and by 2% in the first nine months of 2011, versus the same prior year periods;
|
|
▪
|
increases of $1.9 million (10%) and $5.6 million (10%), respectively, in carbon dioxide and crude oil pipeline transportation revenues, due mainly to incremental transportation service on the Eastern Shelf carbon dioxide pipeline. KMP completed construction of the pipeline in December 2010;
|
|
▪
|
decreases of $6.3 million (45%) and $14.6 million (35%), respectively, due to higher combined operating expenses. The increases were driven by higher severance tax expenses and higher carbon dioxide supply expenses, both related to higher commodity prices in the first nine months of 2011;
|
|
▪
|
for the comparable nine month periods, an increase of $3.8 million (75%) in other revenues, due mainly to incremental earnings from third-party reimbursement and construction agreements; and
|
|
▪
|
for the comparable nine month periods, a $5.3 million (271%) decrease due to higher income tax expenses, resulting primarily from decreases in tax expense in the first nine months of 2010 due to the expensing of previously capitalized carbon dioxide costs.
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||||||
(In millions, except operating statistics)
|
|||||||||||||||
Revenues
|
$
|
328.1
|
$
|
321.5
|
$
|
980.3
|
$
|
946.1
|
|||||||
Operating expenses(a)
|
(155.5
|
) |
(163.7
|
) |
(479.6
|
) |
(480.3
|
) | |||||||
Other (expense) income(b)
|
(0.8
|
) |
(0.1)
|
) |
2.1
|
9.7
|
|||||||||
Earnings from equity investments
|
2.9
|
0.7
|
7.8
|
1.3
|
|||||||||||
Interest income and Other, net(c)
|
0.4
|
2.8
|
4.9
|
3.2
|
|||||||||||
Income tax benefit (expense) (d)
|
2.8
|
(2.0
|
) |
6.6
|
(5.5
|
) | |||||||||
Earnings before depreciation, depletion and amortization expense and amortization of excess cost of equity investments
|
$
|
177.9
|
$
|
159.2
|
$
|
522.1
|
$
|
474.5
|
|||||||
Bulk transload tonnage (MMtons)(e)
|
26.6
|
24.1
|
75.5
|
71.4
|
|||||||||||
Ethanol (MMBbl)
|
15.5
|
14.1
|
44.9
|
44.2
|
|||||||||||
Liquids leaseable capacity (MMBbl)
|
59.5
|
58.2
|
59.5
|
58.2
|
|||||||||||
Liquids utilization %
|
93.2
|
%
|
96.2
|
%
|
93.2
|
%
|
96.2
|
%
|
(a)
|
Three and nine month 2011 amounts include (i) increases in expense of $1.2 million and $2.8 million, respectively, from casualty insurance deductibles and the repair of assets related to casualty losses; (ii) increases in expense of $0.1 million and $0.7 million, respectively, associated with the sale of KMP’s ownership interest in the boat fleeting business KMP acquired from Megafleet Towing Co., Inc. in April 2009; and (iii) increases in expense of $0.1 million associated with the dissolution of KMP’s partnership interest in Globalplex Handling. Nine month 2011 amount also includes a $1.2 million increase in expense associated with environmental liability adjustments, and a $0.6 million increase in expense associated with the settlement of a litigation matter at the Carteret, New Jersey liquids terminal. Three and nine month 2010 amounts include a $5.0 million increase in expense from casualty insurance deductibles, and a $0.2 million decrease in expense from certain measurement period adjustments related to KMP’s March 5, 2010 Slay Industries terminal acquisition. Nine month 2010 amount also includes a $0.6 million increase in expense related to storm and flood clean-up and repair activities.
|
(b)
|
Three and nine month 2011 amounts include (i) a $1.3 million increase in income from the sale of KMP’s ownership interest in Arrow Terminals B.V.; (ii) a $0.4 million decrease in income from property write-offs associated with the dissolution of the partnership interest in Globalplex Handling; and (iii) a $0.1 million decrease in income and a $0.8 million increase in income, respectively, from adjustments associated with the sale of KMP’s ownership interest in the boat fleeting business KMP acquired from Megafleet Towing Co., Inc. in April 2009. Nine month 2011 amount also includes a $4.3 million casualty indemnification gain related to a 2008 fire at the Pasadena, Texas liquids terminal, and a $1.6 million decrease in income from the write-off of assets related to casualty losses. Nine month 2010 amount includes a $6.7 million casualty indemnification gain related to a 2008 fire at the Pasadena, Texas liquids terminal. Also, three and nine month 2011 amounts include decreases in segment earnings of $1.9 million and $2.4 million, respectively, and nine month 2010 amounts include a $0.7 million decrease in segment earnings, all related to assets sold, which had been revalued as part of the Going Private transaction and recorded in the application of the purchase method of accounting.
|
(c) |
Nine month 2011 amount includes a combined $3.6 million gain from the sale of a 51% ownership interest in two of KMP’s subsidiaries: River Consulting LLC and Devco USA L.L.C.
|
(d)
|
Nine month 2011 amount includes (i) a $4.7 million decrease in expense (reflecting tax savings) related to non-cash compensation expense allocated to KMP from us; (ii) a $1.9 million decrease in expense (reflecting tax savings) related to the net decrease in income from the sale of KMP’s ownership interest in the boat fleeting business described in both footnotes (a) and (b) and in Note 3 to our consolidated financial statements in our 2010 Form 10-K; and (iii) a $1.4 million increase in expense related to the gain associated with the sale of a 51% ownership interest in two of KMP’s subsidiaries described in footnote (c).
|
(e)
|
Volumes for acquired terminals are included for all periods.
|
EBDA
increase/(decrease)
|
Revenues
increase/(decrease)
|
|||||||||||||||
(In millions, except percentages)
|
||||||||||||||||
Mid-Atlantic
|
$ | 5.1 | 63 | % | $ | 9.6 | 48 | % | ||||||||
Northeast
|
4.2 | 23 | % | 2.6 | 8 | % | ||||||||||
Gulf Bulk
|
3.5 | 19 | % | 3.3 | 10 | % | ||||||||||
Gulf Liquids
|
(2.6 | ) | (6 | ) % | 1.4 | 3 | % | |||||||||
Southeast
|
(0.2 | ) | (1 | ) % | (0.3 | ) | (1 | ) % | ||||||||
All others (including intrasegment eliminations and unallocated income tax expenses)
|
2.5 | 4 | % | (12.8 | ) | (8 | ) % | |||||||||
Total Terminals–KMP
|
$ | 12.5 | 8 | % | $ | 3.8 | 1 | % |
EBDA
increase/(decrease)
|
Revenues
increase/(decrease)
|
|||||||||||||||
(In millions, except percentages)
|
||||||||||||||||
Mid-Atlantic
|
$ | 13.5 | 46 | % | $ | 19.7 | 28 | % | ||||||||
Gulf Liquids
|
10.4 | 9 | % | 18.6 | 12 | % | ||||||||||
Northeast
|
4.3 | 7 | % | 8.2 | 8 | % | ||||||||||
Southeast
|
3.5 | 10 | % | 2.1 | 3 | % | ||||||||||
Gulf Bulk
|
(1.4 | ) | (3 | ) % | 3.4 | 3 | % | |||||||||
All others (including intrasegment eliminations and unallocated income tax expenses)
|
1.0 | 1 | % | (27.3 | ) | (6 | ) % | |||||||||
Total Terminals–KMP
|
$ | 31.3 | 7 | % | $ | 24.7 | 3 | % |
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(In millions, except operating statistics)
|
||||||||||||||||
Revenues
|
$ | 77.4 | $ | 67.5 | $ | 230.3 | $ | 197.9 | ||||||||
Operating expenses
|
(26.4 | ) | (23.6 | ) | (76.8 | ) | (66.8 | ) | ||||||||
Earnings (losses) from equity investments
|
0.2 | (1.3 | ) | (1.6 | ) | (1.5 | ) | |||||||||
Interest income and Other, net
|
3.6 | 4.7 | 10.3 | 12.3 | ||||||||||||
Income tax expense(a)
|
(6.3 | ) | (3.3 | ) | (12.2 | ) | (9.0 | ) | ||||||||
Earnings before depreciation, depletion and amortization expense and amortization of excess cost of equity investments
|
$ | 48.5 | $ | 44.0 | $ | 150.0 | $ | 132.9 | ||||||||
Transport volumes (MMBbl)(b)
|
25.6 | 27.2 | 75.2 | 79.3 |
(a)
|
Nine month 2011 amounts include a $2.2 million decrease in expense (reflecting tax savings) related to non-cash compensation expense allocated to KMP from us.
|
(b)
|
Represents Trans Mountain pipeline system volumes.
|
EBDA
increase/(decrease)
|
Revenues
increase/(decrease)
|
|||||||||||||||
(In millions, except percentages)
|
||||||||||||||||
Trans Mountain Pipeline
|
$ | 3.5 | 9 | % | $ | 9.8 | 15 | % | ||||||||
Jet Fuel Pipeline
|
(0.1 | ) | (9 | ) % | 0.1 | 6 | % | |||||||||
Express Pipeline(a)
|
1.1 | 54 | % | n/a | n/a | |||||||||||
Total Kinder Morgan Canada–KMP
|
$ | 4.5 | 10 | % | $ | 9.9 | 15 | % |
EBDA
increase/(decrease)
|
Revenues
increase/(decrease)
|
|||||||||||||||
(In millions, except percentages)
|
||||||||||||||||
Trans Mountain Pipeline
|
$ | 14.7 | 12 | % | $ | 32.1 | 17 | % | ||||||||
Jet Fuel Pipeline
|
0.3 | 10 | % | 0.3 | 6 | % | ||||||||||
Express Pipeline(a)
|
(0.1 | ) | (1 | ) % | n/a | n/a | ||||||||||
Total Kinder Morgan Canada–KMP
|
$ | 14.9 | 11 | % | $ | 32.4 | 16 | % |
(a)
|
Equity investment. KMP records earnings under the equity method of accounting.
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(In millions)
|
||||||||||||||||
Earnings (loss) from equity investments(a)
|
$ | 1.7 | $ | 6.2 | $ | 12.3 | $ | (405.0 | ) |
(a)
|
Nine month 2010 amount includes a non-cash investment impairment charge of $430.0 million; see Note 2 to our consolidated financial statements included elsewhere in this report.
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(In millions)
|
||||||||||||||||
KMI general and administrative expense (a)(b)
|
$ | 8.6 | $ | 214.6 | $ | 12.1 | $ | 240.6 | ||||||||
KMP general and administrative expense(c)
|
100.5 | 93.6 | 387.1 | 288.1 | ||||||||||||
Consolidated general and administrative expense
|
$ | 109.1 | $ | 308.2 | $ | 399.2 | $ | 528.7 | ||||||||
KMI interest expense, net of interest income
|
$ | 42.3 | $ | 39.9 | $ | 126.9 | $ | 118.5 | ||||||||
KMP interest expense, net of interest income(d)
|
127.1 | 129.0 | 378.2 | 357.4 | ||||||||||||
Other, net(e)
|
4.7 | 4.8 | 16.4 | 16.7 | ||||||||||||
Unallocable interest expense and other, net
|
$ | 174.1 | $ | 173.7 | $ | 521.5 | $ | 492.6 | ||||||||
KMR noncontrolling interests
|
$ | 12.1 | $ | (8.0 | ) | $ | 13.4 | $ | (46.8 | ) | ||||||
KMP noncontrolling interests
|
54.8 | (35.5 | ) | 56.9 | (191.9 | ) | ||||||||||
Other noncontrolling interests
|
0.4 | 1.5 | 1.4 | 1.4 | ||||||||||||
Net (income) loss attributable to noncontrolling interests
|
$ | 67.3 | $ | (42.0 | ) | $ | 71.7 | $ | (237.3 | ) |
(a)
|
Three month 2011 amount includes $0.1 million increase in Going Private transaction litigation expense. Nine month 2011 amount includes (i) $45.8 million reduction to expense for a Going Private transaction litigation insurance reimbursement; (ii) KMI’s portion ($12.9 million) of a $100 million special bonus to non-senior employees; (iii) $11.1 million of expense associated with our initial public offering; (iv) $0.8 million increase in expense related to non-cash compensation expense; (v) $0.8 million increase in Going Private transaction litigation expense; and (vi) $0.2 million increase in expense for services associated with our postretirement employee benefits. The cost of the $100 million special bonus was not borne by KMI’s Class P shareholders. In May of 2011, KMI paid for the $100 million of special bonuses, which included the amounts allocated to KMP, using $64 million (after-tax) in available earnings and profits reserved for this purpose and not paid in dividends to KMI’s Class A shareholders. See also footnote (c) below. Three month 2010 amount includes (i) increase in expense of $200 million associated with Going Private transaction litigation settlement; (ii) increase in Going Private transaction legal expense of $2.1 million; (iii) increase in legal expense of $1.5 million; and (iv) increase in expense of $0.2 million, related to non-cash compensation expense. Nine month 2010 amount includes (i) increase in expense of $200.0 million associated with Going Private transaction litigation settlement; (ii) increase in Going Private transaction legal expense of $4.7 million; (iii) increase in litigation expense of $1.5 million; (iv) $1.5 million reduction to expense associated with an insurance claim reimbursement; and (v) increase in expense of $1.2 million, related to non-cash compensation expense.
|
(b)
|
Three and nine month 2011 amounts include NGPL PipeCo LLC general and administrative reimbursement of $6.6 million and $26.1 million respectively, and three and nine month 2010 amounts include NGPL PipeCo LLC fee revenues of $11.8 million and $35.4 million, respectively. These amounts were recorded to the “Product sales and other” caption in our accompanying consolidated statements of income with the offsetting expenses primarily recorded to the “General and administrative” expense caption in our accompanying consolidated statements of income. Also, see Notes 9 and 11 to our consolidated financial statements included elsewhere in this report.
|
(c)
|
Three and nine month 2011 amounts include (i) increases in expense of $0.3 million for certain legal expenses associated with business acquisitions; (ii) increases in expense of $0.1 million and $1.2 million, respectively, for certain asset and business acquisition costs; (iii) a $0.2 million decrease in unallocated payroll tax expense and a $1.2 million increase in unallocated payroll tax expense, respectively, all related to the $87.1 million special non-cash bonus expense to non-senior management employees allocated by us to KMP in the first quarter of 2011 (however, KMP does not have any obligation, nor does KMP expect to pay any amounts related to this expense); and (iv) decreases in expense of $0.1 million and $0.2 million, respectively, related to capitalized overhead costs associated with the 2008 hurricane season. Nine month 2011 amount also includes a combined $89.9 million increase in non-cash compensation expense (including $87.1 million related to a special non-cash bonus expense to non-senior management employees), allocated by us to KMP; however, KMP does not have any obligation, nor does KMP expect to pay any amounts related to this expense.
Three month 2010 amount includes $1.1 increase related to certain asset and business acquisition costs, and $1.0 million related to non-cash compensation expense. Nine month 2010 amount includes (i) a $3.7 million increase related to non-cash compensation expense; (ii) a $1.6 million increase in legal expense associated with certain items such as legal settlements and pipeline failures; and (iii) a $0.2 million decrease in expense related to capitalized overhead costs associated with the 2008 hurricane season.
|
(d)
|
Three and nine month 2011 amounts include increases in imputed interest expense of $0.1 million and $0.5 million, respectively, and three and nine month 2010 amounts include increases in imputed interest expense of $0.2 million and $0.8 million, respectively, all related to KMP’s January 1, 2007 Cochin Pipeline acquisition.
|
(e)
|
“Other, net” primarily represents an offset to noncontrolling interests and interest income shown above and included in segment earnings.
|
As of September 30, 2011
|
||||||||
Short-term
debt
outstanding
|
Available
borrowing
capacity
|
|||||||
(In millions)
|
||||||||
Credit Facilities
|
||||||||
KMI
|
||||||||
$1.0 billion, six-year secured revolver, due May 2013
|
$ | 375.0 | $ | 576.3 | ||||
|
||||||||
KMP
|
||||||||
$2.2 billion, three-year unsecured revolver, due July 2016
|
$ | 353.0 | $ | 1,615.2 |
Nine Months Ended
September 30,
|
||||||||||||
2011
|
2010
|
increase/
(decrease)
|
||||||||||
(In millions)
|
||||||||||||
Net cash provided by (used in):
|
||||||||||||
Operating activities
|
$ | 1,587.7 | $ | 1,218.5 | $ | 369.2 | ||||||
Investing activities
|
(1,814.9 | ) | (1,898.8 | ) | 83.9 | |||||||
Financing activities
|
13.5 | 710.3 | (696.8 | ) | ||||||||
Effect of exchange rate changes on cash
|
(14.8 | ) | 1.0 | (15.8 | ) | |||||||
Net (decrease) increase in cash and cash equivalents
|
$ | (228.5 | ) | $ | 31.0 | $ | (259.5 | ) |
|
§
|
a $91.0 million increase in cash from overall higher net income—after adjusting our period-to-period $233.9 million increase in net income for non-cash items including: (i) a $167.2 million increase relating to the non-cash loss from the remeasurement of KMP’s previous 50% equity interest in KinderHawk Field Services LLC (as discussed in Note 2 “Acquisitions and Divestitures” to our consolidated financial statements included elsewhere in this report); (ii) an $83.8 million increase in expense from adjustments made to KMP’s rate case and other legal liabilities; (iii) a $282.3 million net increase in deferred income tax liabilities; (iv) a $470.8 million decrease due to higher earnings from equity investees, primarily attributable to a $430.0 million pre-tax impairment charge on our equity investment in NGPL PipeCo LLC in 2010; and (v) a $200.0 million decrease in expense associated with a Going Private transaction litigation reserve adjustment in 2010. The period-to-period change in net income in 2011 versus 2010 is discussed above in “—Results of Operations” (including all of the certain items disclosed in the associated table footnotes);
|
|
§
|
a $124.9 million increase in cash attributable to lower payments made in 2011 to various shippers on KMP’s Pacific operations’ refined products pipelines. In the first nine months of 2011 and 2010, KMP paid legal settlements of $81.4 million and $206.3 million, respectively, to settle various interstate and California intrastate
|
|
|
transportation rate challenges filed by the shippers with the FERC and the CPUC, respectively, dating back as early as 1992;
|
|
§
|
a $91.6 million increase in cash related to net changes in both non-current assets and liabilities and other non-cash income and expense items, primarily driven by a (i) $124.2 million increase in cash due to higher net dock premiums and toll collections received from KMP’s Trans Mountain pipeline system customers; and (ii) a net $35.1 million decrease in cash attributable to lower non-cash earnings adjustments in the first nine months of 2011, including among other items, income from the sale or casualty of net assets and amortization of debt-related discounts and premiums;
|
|
§
|
a $73.0 million increase in cash from interest rate swap termination payments received by KMP in August 2011, when it terminated two separate fixed-to-variable interest rate swap agreements having a combined notional principal amount of $200.0 million;
|
|
§
|
a $46.0 million increase in cash from higher distributions of earnings from equity investees. The increase was chiefly due to incremental distributions of (i) $15.3 million received from KMP’s equity investment in KinderHawk Field Services LLC (for the periods prior to KMP’s July 1, 2011 acquisition of the remaining 50% interest in KinderHawk that it did not already own); (ii) $11.6 million received from KMP’s 50%-owned Fayetteville Express Pipeline LLC; and (iii) $10.3 million received from KMP’s 50%-owned Midcontinent Express Pipeline LLC; and
|
|
§
|
a $55.9 million decrease in cash relative to net changes in working capital items, primarily due to a $53.3 million decrease in cash from the collection and payment of trade and related party receivables and payables (including collections and payments on natural gas transportation and exchange imbalance receivables and payables), due primarily to the timing of invoices received from customers and paid to vendors and suppliers.
|
|
§
|
a $227.8 million increase in cash due to lower acquisitions of assets and investments. In the first nine months of 2011, KMP paid $945.0 million for strategic acquisitions, including (i) $835.1 million for both its remaining 50% ownership interest in KinderHawk Field Services LLC and its 25% interest in EagleHawk Field Services LLC; (ii) $50.0 million for its preferred equity interest in Watco Companies, LLC; and (iii) $42.9 million paid for terminal assets that KMP acquired from TGS Development, L.P. (the 2011 acquisitions are discussed further in Note 2 to our consolidated financial statements included elsewhere in this report). In the first nine months of 2010, KMP spent $1,172.8 million for strategic business acquisitions, primarily consisting of the following: (i) $921.4 million for its initial 50% ownership interest in KinderHawk in May 2010; (ii) $114.3 million for three unit train ethanol handling terminals acquired by KMP from US Development Group LLC in January 2010; and (iii) $97.0 million for terminal assets and investments that KMP acquired from Slay Industries in March 2010;
|
|
§
|
a $35.9 million increase in cash from higher proceeds received for combined margin and restricted deposits, primarily due to a $50.0 million increase due to the release of restricted cash. As of December 31, 2010, KMP placed the $50.0 million cash it paid in January 2011 for its equity investment in Watco Companies, LLC in a cash escrow account, and we reported this amount as “Restricted deposits” on our year-end balance sheet;
|
|
§
|
a $118.2 million decrease in cash due to higher capital expenditures, as described above in “—Capital Expenditures;”
|
|
§
|
an $86.7 million decrease in cash due to higher contributions to equity investees. During the first nine months of 2011, KMP contributed $297.0 million to its equity investees, including payments of $195.0 million to Fayetteville Express Pipeline LLC and $73.5 million to its 50%-owned Eagle Ford Gathering LLC. Fayetteville Express used the contributions to repay borrowings under its previous $1.1 billion bank credit facility, and subsequently, entered into new borrowing facilities. Eagle Ford Gathering used the contributions as partial funding for natural gas gathering infrastructure expansions. In the first nine months of 2010, KMP contributed an aggregate amount of $209.8 million, including $130.5 million to Rockies Express Pipeline LLC and $39.0 million to Midcontinent Express Pipeline LLC to partially fund its respective share of Rockies Express and Midcontinent Express natural gas pipeline system construction costs; and
|
|
§
|
a $2.9 million decrease in cash due to lower capital distributions (distributions in excess of cumulative earnings) received from equity investments in the first nine months of 2011—chiefly due to a reduction of $15.0 million in capital distributions received from our equity investment in NGPL PipeCo, which were largely offset by incremental capital distributions of $12.1 million that KMP received from Fayetteville Express Pipeline LLC.
|
|
§
|
a $748.1 million decrease in cash from overall debt financing activities—which include issuances and payments of debt and debt issuance costs. The decrease in cash was primarily due to (i) a $750.0 million principal payment on senior notes of Kinder Morgan Finance Company LLC, an indirect wholly owned subsidiary of KMI, that matured in the first nine months of 2011; (ii) a $252.7 million increase in cash due to higher net short-term borrowings under our bank credit facility; (iii) a $283.8 million decrease due to KMP’s lower net short-term borrowings (consisting of borrowings and repayments under both its commercial paper program and revolving credit facility); (iv) a $154.0 million decrease due to the repayment of all of the outstanding borrowings under KinderHawk Field Services LLC’s bank credit facility that KMP assumed on its July 1, 2011 acquisition date; (v) a $142.9 million increase due to higher net issuances and repayments of KMP’s senior notes (in the first nine months of 2011, KMP generated net proceeds of $1,136.0 million from issuing and repaying its senior notes, and in May 2010, KMP received net proceeds of $993.1 million from the public offering of $1.0 billion aggregate principal amount of its senior notes); and (vi) a $28.0 million increase in cash due to higher repayments received in the first nine months of 2011, primarily on a $30.9 million related party loan KMP made in July 2004 to Plantation Pipe Line Company.
|
|
|
Due in part to its short-term credit rating upgrade in February 2011, KMP made no short-term borrowings under its revolving credit facility in the first nine months of 2011, but instead made borrowings under its commercial paper program. For more information about our debt financing activities, see Note 4 “Debt” to our consolidated financial statements included elsewhere in this report;
|
|
§
|
a $57.3 million increase in cash used to pay dividends;
|
|
§
|
a $84.2 million increase in cash used for noncontrolling interests distributions, primarily due to an increase in KMP’s cash distributions to its common unit owners;
|
|
§
|
a $180.3 million increase in cash provided by noncontrolling interests contributions primarily reflecting the proceeds received by KMP, after commissions and underwriting expenses, from the sales of additional KMP common units (discussed in Note 5 “Stockholders’ Equity—Noncontrolling Interests—KMP—Contributions” to our consolidated financial statements included elsewhere in this report); and
|
|
§
|
a $12.8 million increase in cash from net changes in cash book overdrafts, resulting from timing differences on checks issued but not yet presented for payment.
|
|
•
|
the ability to complete the acquisition of El Paso;
|
|
•
|
failure to obtain, delays in obtaining or adverse conditions contained in, any required regulatory approvals associated with the El Paso acquisition;
|
|
•
|
the ability to complete the disposition of El Paso’s oil and gas properties and operations on a satisfactory basis;
|
|
•
|
our ability to successfully integrate El Paso’s operations and to realize synergies from the merger;
|
|
•
|
price trends and overall demand for natural gas liquids, refined petroleum products, oil, carbon dioxide, natural
|
|
|
gas, electricity, coal, steel and other bulk materials and chemicals in North America;
|
|
•
|
economic activity, weather, alternative energy sources, conservation and technological advances that may affect price trends and demand;
|
|
•
|
changes in tariff rates charged by NGPL or those of KMP’s pipeline subsidiaries implemented by the Federal Energy Regulatory Commission, California Public Utilities Commission, Canada’s National Energy Board or another regulatory agency
;
|
|
•
|
our ability to acquire new businesses and assets and integrate those operations into our existing operations, as well as our ability to expand our facilities;
|
|
•
|
difficulties or delays experienced by railroads, barges, trucks, ships or pipelines in delivering products to or from KMP’s terminals or pipelines;
|
|
•
|
our ability to successfully identify and close acquisitions and make cost-saving changes in operations;
|
|
•
|
shut-downs or cutbacks at major refineries, petrochemical or chemical plants, ports, utilities, military bases or other businesses that use our services or provide services or products to us;
|
|
•
|
changes in
crude oil and natural gas production from exploration and production areas that we or KMP serve, such as the Permian Basin area of West Texas, the U.S. Rocky Mountains, areas of shale gas formation and the Alberta oil sands
;
|
|
•
|
changes in laws or regulations, third-party relations and approvals, and decisions of courts, regulators and governmental bodies that may adversely affect our business or ability to compete;
|
|
•
|
changes in accounting standards that impact the measurement of our results of operations, the timing of when such measurements are to be made and recorded, and the disclosures surrounding these activities;
|
|
•
|
our ability to offer and sell equity securities, and KMP’s ability to offer and sell equity securities and debt securities or obtain debt financing in sufficient amounts to implement that portion of our or KMP’s business plans that contemplates growth through acquisitions of operating businesses and assets and expansions of facilities
;
|
|
•
|
our indebtedness, which could make us vulnerable to general adverse economic and industry conditions, limit our ability to borrow additional funds and/or place us at competitive disadvantages compared to our competitors that have less debt or have other adverse consequences;
|
|
•
|
interruptions of electric power supply to our facilities due to natural disasters, power shortages, strikes, riots, terrorism, war or other causes;
|
|
•
|
our ability to obtain insurance coverage without significant levels of self-retention of risk;
|
|
•
|
acts of nature, accidents, sabotage, terrorism or other similar acts causing damage greater than our insurance coverage limits;
|
|
•
|
capital and credit markets conditions, inflation and interest rates;
|
|
•
|
the political and economic stability of the oil producing nations of the world;
|
|
•
|
national, international, regional and local economic, competitive and regulatory conditions and developments;
|
|
•
|
our ability to achieve cost savings and revenue growth;
|
|
•
|
foreign exchange fluctuations;
|
|
•
|
the timing and extent of changes in commodity prices for oil, natural gas, electricity and certain agricultural products;
|
|
•
|
the extent of KMP’s success in discovering, developing and producing oil and gas reserves, including the risks inherent in exploration and development drilling, well completion and other development activities;
|
|
•
|
engineering and mechanical or technological difficulties that KMP may experience with operational equipment, in well completions and workovers, and in drilling new wells;
|
|
•
|
the uncertainty inherent in estimating future oil and natural gas production or reserves that KMP may experience;
|
|
•
|
the ability to complete expansion projects on time and on budget;
|
|
•
|
the timing and success of KMP’s and our business development efforts; and
|
|
•
|
unfavorable results of litigation and the fruition of contingencies referred to in Note 11 to our consolidated financial statements included elsewhere in this report.
|
|
•
|
having to pay certain significant costs relating to the merger;
|
|
•
|
negative reactions from the financial markets, including declines in the price of our common stock due to the fact
|
|
|
that current prices may reflect a market assumption that the merger will be completed; and
|
|
•
|
the attention of our management will have been diverted to the merger rather than our own operations and pursuit of other opportunities
that could have been beneficial to us.
|
4.1
|
—
|
Certain instruments with respect to the long-term debt of Kinder Morgan, Inc. and its consolidated subsidiaries that relate to debt that does not exceed 10% of the total assets of Kinder Morgan, Inc. and its consolidated subsidiaries are omitted pursuant to Item 601(b) (4) (iii) (A) of Regulation S-K, 17 C.F.R. sec.229.601. Kinder Morgan, Inc. hereby agrees to furnish supplementally to the Securities and Exchange Commission a copy of each such instrument upon request.
|
|
31.1
|
—
|
Certification by CEO pursuant to Rule 13a-14 or 15d-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
31.2
|
—
|
Certification by CFO pursuant to Rule 13a-14 or 15d-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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32.1
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Certification by CEO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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32.2
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—
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Certification by CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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101
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Interactive data files pursuant to Rule 405 of Regulation S-T: (i) our Consolidated Statements of Income for the three and nine months ended September 30, 2011 and 2010; (ii) our Consolidated Balance Sheets as of September 30, 2011 and December 31, 2010; (iii) our Consolidated Statements of Cash Flows for the nine months ended September 30, 2011 and 2010; and (iv) the notes to our Consolidated Financial Statements, tagged as blocks of text.
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KINDER MORGAN, INC.
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Registrant
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Date: November 1, 2011
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By:
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/s/ Kimberly A. Dang
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Kimberly A. Dang
Vice President and Chief Financial Officer
(principal financial and accounting officer)
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No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
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DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
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No information found
Customers
Customer name | Ticker |
---|---|
American Axle & Manufacturing Holdings, Inc. | AXL |
EQT Corporation | EQT |
Exxon Mobil Corporation | XOM |
Union Pacific Corporation | UNP |
Valero Energy Corporation | VLO |
No Suppliers Found
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
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