Kinder Morgan, Inc.

Company Overview

Business Model: Kinder Morgan, Inc. is one of the largest energy infrastructure companies in North America, primarily focused on stable, fee-based energy transportation and storage assets. The company owns and operates approximately 78,000 miles of pipelines, 136 terminals, and 706 Bcf of working natural gas storage capacity. Its pipelines transport natural gas, refined petroleum products, crude oil, condensate, carbon dioxide, renewable fuels, and other products. Terminals store and handle various commodities including gasoline, diesel fuel, jet fuel, chemicals, petroleum coke, metals, ethanol, and other renewable fuels and feedstocks. Revenue is primarily generated through long-term fixed contracts for transportation and storage services, fee-based arrangements for gathering, processing, and fractionation, and commodity sales of natural gas, natural gas liquids, crude oil, carbon dioxide, and renewable identification numbers.

Market Position: Kinder Morgan, Inc. is positioned as one of the largest energy infrastructure companies in North America. Its natural gas transportation network is strategically located throughout the North American natural gas pipeline grid, providing access to major supply areas and consumers. The company is also one of the largest independent operators of liquids terminals in the U.S., based on barrels of liquids terminaling capacity. Competition in its various markets is primarily based on location, rates, terms of service, flexibility, availability of alternative forms of energy, and reliability of service.

Recent Strategic Developments:

• Acquisitions: Completed the acquisition of a natural gas gathering and processing system in North Dakota from Outrigger Energy II LLC for $648 million in February 2025.
• Divestitures: Sold its 25% non-operated equity interest in EagleHawk for $382 million in December 2025.
• Projects Placed in Service:
  • TGP and SNG Evangeline Pass projects (two-phase 2 Bcf/d project) with the first phase in service in July 2024 and the second phase in September 2025, representing a capital scope of $661 million for Kinder Morgan, Inc.'s share.
  • Altamont Green River pipeline project, including 43 miles of 20-inch pipeline, placed in service in September 2025 with a capital scope of $263 million for Kinder Morgan, Inc.'s share.
  • Tejas South to North expansion project, with the first phase in service in February 2025 and the second phase in September 2025, representing a capital scope of $145 million for Kinder Morgan, Inc.'s share.
• Financing: Issued $1,850 million of new senior notes and repaid $1,500 million of maturing senior notes during 2025.

Geographic Footprint: Kinder Morgan, Inc. operates extensively across North America. Its Natural Gas Pipelines segment serves the western U.S., Rocky Mountain, Midwest, Texas, Louisiana, Southeastern, and Northeast regions, with LNG terminal facilities also serving natural gas market areas in the southeast. The company also has natural gas pipeline operations in Mexico, including the Mier-Monterrey pipeline and NET Mexico. Terminals are primarily located near large U.S. urban centers, and its Jones Act-qualified product tankers provide marine transportation between U.S. ports. The Carbon Dioxide segment's oil and gas producing fields and crude oil pipeline system are located in West Texas. In 2025, 99.9% of total consolidated revenues ($16,926 million) were from the U.S., with 0.1% ($11 million) from Mexico. Similarly, 99.9% of long-term assets ($48,115 million) were in the U.S., with 0.1% ($65 million) in Mexico.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Gross Margin: 67.3%
• Operating Margin: 27.9%
• Net Margin: 18.7%

Investment in Growth:

• Capital Expenditures: $3,026 million (2025)
• Strategic Investments: The acquisition of Outrigger Energy II LLC for $648 million in 2025. Kinder Morgan, Inc. expects to invest almost $3.3 billion in expansion projects and contributions to joint ventures (discretionary capital expenditures) during 2026.

Business Segment Analysis

Natural Gas Pipelines

Financial Performance:

• Revenue: $11,009 million (+23.1% YoY)
• Operating Margin (Segment EBDA): 55.2%
• Key Growth Drivers: The $687 million increase in Segment EBDA was primarily driven by completed expansion projects and increased sales margins on Texas intrastate systems due to higher commodity prices and volumes. Contributions from the acquired Outrigger Energy II LLC assets on Hiland Midstream assets and higher gathering rates on KinderHawk also contributed. In the East region, growth was driven by completed expansion projects on TGP, higher services demand due to weather, increased LNG exports and power demand, higher park and loan demand, and lower legal costs. Higher equity earnings from MEP, Citrus Corporation, and NGPL Holdings also contributed. The West region saw increased demand for services on CPGPL.

Product Portfolio: This segment includes interstate and intrastate pipelines, underground storage facilities, LNG liquefaction and terminal facilities, and natural gas liquids fractionation facilities. Primary businesses are natural gas transportation, storage, sales, gathering, processing and treating, and various LNG services.

Market Dynamics: The market for natural gas infrastructure is highly competitive, with new pipelines, storage, and treating facilities being built. Competition is based on location, rates, terms of service, flexibility, alternative energy availability, and service reliability. Customers also face competition from other energy forms like oil, coal, nuclear, hydro, wind, and solar power.

Sub-segment Breakdown:

• Midstream: $2,278 million Segment EBDA (+28% YoY)
• East: $2,821 million Segment EBDA (+6% YoY)
• West: $981 million Segment EBDA (+3% YoY)

Products Pipelines

Financial Performance:

• Revenue: $2,686 million (-9.1% YoY)
• Operating Margin (Segment EBDA): 43.1%
• Key Growth Drivers: The $7 million decrease in Segment EBDA was primarily due to the expiration of legacy crude contracts in advance of the Double H Pipeline system conversion to natural gas liquids service on Bakken Crude assets, lower margin from the Crude and Condensate business due to decreased spreads, and a planned ten-year turnaround at the KM Condensate Processing Facility. These were partially offset by higher rates at West Coast Terminals and Pacific operations, and higher volumes and rates on Central Florida Pipeline LLC, along with lower costs of sales at Transmix processing operations.

Product Portfolio: This segment consists of refined petroleum products, crude oil, and condensate pipelines, associated terminals, a condensate processing facility, and transmix processing facilities.

Market Dynamics: Products Pipelines compete with proprietary pipelines and terminals owned by major oil companies, other independent products pipelines and terminals, and trucking and marine transportation firms. Transmix operations compete with refineries owned by major oil companies and independent transmix facilities. Demand for refined petroleum products generally follows population and economic growth trends, tending to be relatively stable.

Sub-segment Breakdown:

• Crude and Condensate: $236 million Segment EBDA (-16% YoY)
• West Coast Refined Products: $628 million Segment EBDA (+4% YoY)
• Southeast Refined Products: $293 million Segment EBDA (+5% YoY)

Terminals

Financial Performance:

• Revenue: $2,104 million (+4.1% YoY)
• Operating Margin (Segment EBDA): 54.3%
• Key Growth Drivers: The $44 million increase in Segment EBDA was primarily driven by higher average charter rates for Jones Act tankers and higher rates and ancillary fees at Houston Ship Channel facilities, along with contributions from expansion projects in the Liquids business. This was partially offset by the impact of the 2025 closure of LyondellBasell’s Houston refinery on petroleum coke handling operations in the Bulk business.

Product Portfolio: This segment includes liquids and bulk terminal facilities that store and handle various commodities such as gasoline, diesel fuel, chemicals, metals, petroleum coke, ethanol, and other renewable fuels and feedstocks. It also includes Jones Act-qualified product tankers for marine transportation.

Market Dynamics: Kinder Morgan, Inc. is one of the largest independent operators of liquids terminals in the U.S. The liquids terminals compete with other independent and major oil, chemical, pipeline, and refining company-owned terminals. Bulk terminals compete with independent operators, producers, distributors, and stevedoring companies. Jones Act-qualified tankers compete with other Jones Act-qualified vessel fleets.

Sub-segment Breakdown:

• Jones Act tankers: $240 million Segment EBDA (+23% YoY)
• Liquids: $656 million Segment EBDA (+4% YoY)
• Bulk: $247 million Segment EBDA (-7% YoY)

Carbon Dioxide

Financial Performance:

• Revenue: $1,170 million (-2.8% YoY)
• Operating Margin (Segment EBDA): 52.3%
• Key Growth Drivers: The $73 million decrease in Segment EBDA was primarily due to lower realized carbon dioxide sales prices and volumes in Source and Transportation activities, and lower crude oil volumes and assets divested in June 2024 in Oil and Gas Producing activities. These were partially offset by higher realized natural gas liquids prices and volumes, lower power costs, and contributions from assets acquired in June 2024 in Oil and Gas Producing activities, as well as higher renewable identification numbers sales volumes from the Renewable Natural Gas business in Energy Transition Ventures.

Product Portfolio: This segment produces, transports, and markets carbon dioxide for enhanced oil recovery projects. It also owns and operates oil and gas producing fields, and Renewable Natural Gas, Liquefied Natural Gas, and landfill Gas-to-Electric facilities.

Market Dynamics: Primary competitors for carbon dioxide sales include suppliers with ownership interests in McElmo Dome, Bravo Dome, and Sheep Mountain carbon dioxide resources. The company's carbon dioxide pipelines (Central Basin, Cortez, and Bravo) are in direct competition with other carbon dioxide pipelines.

Sub-segment Breakdown:

• Source and Transportation activities: $155 million Segment EBDA (-20% YoY)
• Oil and Gas Producing activities: $414 million Segment EBDA (-7% YoY)
• Energy Transition Ventures: $43 million Segment EBDA (-4% YoY)

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: No shares were repurchased in 2025. Since December 2017, Kinder Morgan, Inc. has repurchased 86 million shares of its Class P common stock for $1,472 million at an average price of $17.09 per share.
• Dividend Payments: $2,604 million in 2025.
• Dividend Payments Per Share: $1.17 per share for 2025.
• Future Capital Return Commitments: Kinder Morgan, Inc. expects to declare dividends of $1.19 per share for 2026, a 2% increase from 2025. A board-approved share buy-back program has a remaining capacity of approximately $1.5 billion.

Balance Sheet Position:

• Cash and Equivalents: $63 million (as of December 31, 2025)
• Total Debt: $31,823 million (as of December 31, 2025, principal amount)
• Net Debt Position: $31,716 million (as of December 31, 2025, calculated as total debt less cash and cash equivalents, debt fair value adjustments, and foreign exchange impact on Euro-denominated bonds).
• Credit Rating:
  • Standard and Poor’s: A-2 (short-term), BBB (long-term, upgraded to BBB+ on January 13, 2026), Positive outlook.
  • Moody’s Investor Services: Prime-2 (short-term), Baa2 (long-term), Positive outlook.
  • Fitch Ratings, Inc.: F2 (short-term), BBB+ (long-term), Stable outlook.
• Debt Maturity Profile:
  • 2026: $1,226 million
  • 2027: $942 million
  • 2028: $1,867 million
  • 2029: $1,781 million
  • 2030: $2,367 million
  • Thereafter: $23,640 million

Cash Flow Generation:

• Operating Cash Flow: $5,917 million (2025)

Operational Excellence

Production & Service Model: Kinder Morgan, Inc.'s operational philosophy centers on stable, fee-based energy transportation and storage. Natural gas pipelines, storage facilities, and LNG terminals primarily operate under long-term fixed contracts, often with fixed fees for capacity availability. Natural gas gathering, processing, and fractionation services are mostly fee-based, sometimes including minimum volume commitments. Products Pipelines' transportation rates are generally based on regulated tariffs, adjusted annually. Liquids terminals typically use long-term contracts requiring payment regardless of capacity use, while bulk terminals often have minimum volume guarantees or service exclusivity arrangements. Jones Act-qualified tankers operate under fixed-price term charters.

Supply Chain Architecture: Key Suppliers & Partners:

• Third-Party Contractors: Utilized for construction projects.
• Customers as Partners: Major integrated oil companies, major refiners, and the U.S. Military Sealift Command are key customers for Jones Act tankers. A major integrated oil company is a long-term fee-based agreement counterparty for the condensate processing facility. Venture Global LNG is a key customer for the TGP and SNG Evangeline Pass projects.

Facility Network:

• Manufacturing: Includes natural gas processing and natural gas liquids fractionation facilities, LNG liquefaction facilities, and Renewable Natural Gas generation capacity.
• Research & Development: Not explicitly detailed as dedicated R&D centers, but the company mentions its successful demonstration of carbon sequestration technologies in enhanced oil recovery operations.
• Distribution: Comprises approximately 78,000 miles of pipelines, 136 terminals, and 706 Bcf of working natural gas storage capacity.

Operational Metrics:

• Natural Gas Transport: 46,603 BBtu/d (2025)
• Natural Gas Sales: 3,302 BBtu/d (2025)
• Gathering: 4,025 BBtu/d (2025)
• Natural Gas Liquids Transport: 38 MBbl/d (2025)
• Total Refined Product Volumes: 1,636 MBbl/d (2025)
• Crude and Condensate (Products Pipelines): 465 MBbl/d (2025)
• Liquids Leasable Capacity: 78.7 MMBbl (2025)
• Liquids Utilization: 94.1% (2025)
• Bulk Transload Tonnage: 49.5 MMtons (2025)
• SACROC Oil Production, net: 18.70 MBbl/d (2025)
• Yates Oil Production, net: 5.95 MBbl/d (2025)
• Total Oil Production, net: 25.76 MBbl/d (2025)
• Natural Gas Liquids Sales Volumes, net: 8.97 MBbl/d (2025)
• Carbon Dioxide Sales Volumes, net: 0.297 Bcf/d (2025)
• Renewable Natural Gas Sales Volumes: 11 BBtu/d (2025)

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Pipelines: Extensive network of natural gas, refined petroleum products, crude oil, condensate, carbon dioxide, and renewable fuels pipelines.
• Terminals: 136 terminals for storing and handling various liquid and bulk commodities.
• Marine Transportation: Jones Act-qualified product tankers for U.S. coastwise trade.

Customer Portfolio: Enterprise Customers:

• Strategic Partnerships: Key customers include major integrated oil companies, major refiners, and the U.S. Military Sealift Command for marine transportation. Venture Global LNG is a significant customer for natural gas pipeline expansion projects.
• Customer Concentration: No single external customer accounted for 10% or more of total consolidated revenues for the years ended December 31, 2025, 2024, and 2023.

Geographic Revenue Distribution:

• U.S.: 99.9% of total revenue ($16,926 million in 2025)
• Mexico: 0.1% of total revenue ($11 million in 2025)

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The natural gas infrastructure market is highly competitive, with ongoing construction of new pipelines, storage, and treating facilities to meet demand in domestic and export markets. Demand for refined petroleum products generally aligns with population and economic growth, exhibiting relative stability. The bulk terminals business primarily handles petroleum coke, metals, and ores. Demand for transportation on carbon dioxide pipelines is expected to remain stable.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors:

• Natural Gas Pipelines: Competing interstate and intrastate pipelines, as well as alternative energy sources such as oil, coal, nuclear, hydro, wind, and solar power.
• Products Pipelines: Proprietary pipelines and terminals owned by major oil companies, other independent products pipelines and terminals, and trucking and marine transportation firms. Transmix operations compete with major oil company refineries and independent transmix facilities.
• Terminals: Other publicly or privately held independent liquids terminals, terminals owned by oil, chemical, pipeline, and refining companies, and numerous independent bulk terminal operators. Jones Act-qualified tankers compete with other Jones Act-qualified vessel fleets.
• Carbon Dioxide: Suppliers with ownership interests in McElmo Dome, Bravo Dome, and Sheep Mountain carbon dioxide resources, and other carbon dioxide pipelines.

Emerging Competitive Threats: Companies developing carbon capture and sequestration technology could compete for customers purchasing carbon dioxide for enhanced oil recovery.

Competitive Response Strategy: Kinder Morgan, Inc. aims to mitigate risk by negotiating longer-term contracts with higher per-unit pricing and for a greater percentage of available capacity. The company seeks to own refined petroleum products pipelines and terminals in or serving stable or growing markets and population centers.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics: Risks include changes in supply and demand for natural gas, natural gas liquids, refined petroleum products, oil, renewable fuels, carbon dioxide, electricity, petroleum coke, steel, other bulk materials, chemicals, and agricultural products. Competition from other pipelines, terminals, transportation forms, or emerging technologies, as well as changes in tariff rates, commodity prices, economic activity, weather, and technological advances, could adversely affect demand and utilization of assets. Technology Disruption: The company faces risks from emerging technologies, including new cybersecurity risks and those inherent in the use of new developmental technologies like generative artificial intelligence. Customer Concentration: While no single customer accounts for 10% or more of consolidated revenues, financial distress or nonperformance by customers or other counterparties (e.g., hedging counterparties, joint venture partners, suppliers) could adversely impact Kinder Morgan, Inc.

Operational & Execution Risks

Supply Chain Vulnerabilities: Difficulties or delays in product delivery by third-party transportation (railroads, barges, trucks, ships, pipelines) to or from terminals or pipelines, and shutdowns or cutbacks at major refineries, chemical plants, natural gas processing plants, LNG export facilities, ports, or utilities that use the company's services. Geographic Concentration: Assets located in areas susceptible to hurricanes, earthquakes, flooding, other natural disasters, subsidence, and coastal erosion, which could damage assets and disrupt supply. Climate-related physical risks, such as rising sea levels and increased frequency/severity of weather events, pose additional threats. Capacity Constraints: Expansion projects face risks of cost overruns, delays, stoppages, and difficulties in obtaining permits and rights-of-way, which could impact returns and project completion.

Financial & Regulatory Risks

Market & Financial Risks: Volatility in crude oil, natural gas liquids, and natural gas prices can adversely affect revenues, cash flows, and profitability. Unfavorable economic and market conditions, including inflation and rising interest rates, can impact operating results. Substantial debt levels make the company vulnerable to adverse economic conditions and increases in interest rates, potentially limiting financial flexibility and increasing financing costs. Hedging arrangements do not eliminate commodity price risks and could result in financial losses or income volatility. Regulatory & Compliance Risks: Extensive federal, state, and local laws and regulations, including those from FERC, CPUC, RCT, PHMSA, EPA, OSHA, TSA, and SEC, can lead to increased compliance costs, restrictions on services, or reduced demand. Environmental, health, and safety laws (e.g., CERCLA, RCRA, Clean Air Act, Clean Water Act, Oil Pollution Act) expose the company to significant costs and liabilities for cleanup, penalties, and damages. Increased regulatory requirements for pipeline safety and integrity, including PHMSA regulations, may necessitate significant capital and operating expenses. Climate-related regulations, including those on greenhouse gas emissions, could increase operating and capital costs and reduce demand for hydrocarbon products. Increased regulation of exploration and production activities, particularly on public lands, could reduce or delay drilling and production, impacting volumes transported. The Jones Act restricts ownership of U.S. point-to-point maritime shipping vessels by non-U.S. citizens, and non-compliance or changes to the Act could adversely affect marine operations.

Geopolitical & External Risks

Geopolitical Exposure: Political and economic instability in oil and natural gas producing nations of the world could impact operations. Trade Relations: Changes in U.S. trade policy, including tariffs, trade agreements, or other restrictions, can materially affect business and results of operations, potentially increasing construction and maintenance costs.

Innovation & Technology Leadership

Research & Development Focus: Core Technology Areas: Kinder Morgan, Inc. focuses on carbon sequestration technologies, which it has successfully demonstrated in its enhanced oil recovery operations within the Carbon Dioxide business segment. The company also invests in Renewable Natural Gas generation capacity.

Technology Partnerships: Kinder Morgan, Inc. engages with a wide variety of government agencies and industry groups to enable cross-sharing of information and identify opportunities to improve security, including active participation in IT Sector Coordinating Councils and attendance at classified briefings and security architecture reviews hosted by the U.S. Department of Energy, the U.S. Federal Bureau of Investigation, and DHS.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: The Nominating and Governance Committee of the Board is responsible for planning for succession in senior management, including the Chief Executive Officer. The Chief Executive Officer reports annually to this committee on succession plans and processes for identifying and developing talent.

Board Composition: The Board includes directors Amy W. Chronis, Ted A. Gardner, Anthony W. Hall, Jr., Steven J. Kean, Michael C. Morgan, Arthur C. Reichstetter, C. Park Shaper, William A. Smith, and Robert F. Vagt.

Human Capital Strategy

Workforce Composition:

• Total Employees: 11,028 full-time personnel as of December 31, 2025.
• Skill Mix: The company requires a skilled workforce, including engineers, technical personnel, and other professionals.

Talent Management: Acquisition & Retention: Kinder Morgan, Inc. employs a strategic approach to attract, develop, and retain talent, supporting employees' career and development goals through workforce training, tuition reimbursement, and leadership development programs. Retention Metrics: The company has non-zero employee safety performance targets to outperform the annual industry average total recordable incident rate (0.9) and its own three-year TRIR average. Employee Value Proposition: Compensation includes competitive base salaries and benefits, retirement plans, annual bonuses, long-term incentives, and an employee stock purchase plan. The company is committed to a harassment-free workplace with regular prevention training.

Diversity & Development: Kinder Morgan, Inc. supports equal opportunity employment and values a range of talents and experience. Employees receive ongoing career development support through various programs.

Environmental & Social Impact

Environmental Commitments: Climate Strategy: Kinder Morgan, Inc.'s operations, including compressor stations and processing plants, emit greenhouse gases, primarily methane and carbon dioxide. The company is subject to various laws and regulations to monitor and limit these emissions. While the EPA has announced its intention to rescind its endangerment finding related to greenhouse gases, potentially reducing federal regulatory obligations, many states are implementing stricter measures. The European Union has also approved a law to impose methane emission limits on natural gas and crude oil imports starting in 2030. The company anticipates that greenhouse gas regulations will increase demand for carbon sequestration technologies, which it has successfully demonstrated in its enhanced oil recovery operations. Renewable Energy: Kinder Morgan, Inc. has Renewable Natural Gas generation capacity of approximately 6.9 Bcf per year and owns and operates Renewable Natural Gas, Liquefied Natural Gas, and landfill Gas-to-Electric facilities.

Supply Chain Sustainability: Not explicitly detailed.

Social Impact Initiatives: Not explicitly detailed.

Business Cyclicality & Seasonality

Demand Patterns:

• Seasonal Trends: Natural gas pipelines experience higher services demand due to weather. The company's operations are susceptible to natural disasters like hurricanes, which can disrupt supply.
• Economic Sensitivity: Demand for refined petroleum products tends to follow population and economic growth trends and is generally stable. The profitability of minimum volume contracts is largely unaffected by short-term economic variations. However, overall operating results can be adversely affected by unfavorable economic and market conditions.
• Industry Cycles: Changes in crude oil and natural gas production from exploration and production areas served by the company can impact business.

Planning & Forecasting: Not explicitly detailed.

Regulatory Environment & Compliance

Regulatory Framework: Industry-Specific Regulations: Kinder Morgan, Inc.'s operations are subject to extensive federal, state, and local laws and regulations. Key regulatory bodies include the Federal Energy Regulatory Commission (FERC) for interstate natural gas pipelines and common carrier liquids pipelines, the California Public Utilities Commission (CPUC) for intrastate common carrier refined products pipelines in California, and the Railroad Commission of Texas (RCT) for intrastate crude oil, liquids, and natural gas pipelines in Texas. Pipeline safety is regulated by the United States Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA). Environmental, health, and safety regulations are enforced by the Environmental Protection Agency (EPA) and the Occupational Safety and Health Administration (OSHA). Cybersecurity is regulated by the Transportation Security Administration (TSA) and the SEC. International Compliance: The European Union has approved a law to impose limits on methane emissions intensity applicable to imports of natural gas and crude oil beginning in 2030.

Trade & Export Controls: The company is subject to U.S. trade policies, including tariffs and trade restrictions, which can impact business and results of operations. The Jones Act restricts maritime transportation between U.S. points to U.S.-flagged, U.S.-built, U.S.-owned, and U.S.-crewed vessels, and non-compliance or changes to this Act could adversely affect marine operations.

Legal Proceedings:

• Gulf LNG Facility Disputes: A lawsuit filed by Gulf LNG Energy, LLC and Gulf LNG Pipeline, LLC against Eni S.p.A. to enforce a Guarantee Agreement. GLNG's efforts to enforce the Guarantee were unsuccessful, and Eni S.p.A.'s counterclaims were dismissed. Eni S.p.A.'s motion for leave to appeal was denied by the Court of Appeals, and a petition for writ of certiorari to the United States Supreme Court remains pending.
• Freeport LNG Winter Storm Litigation: Freeport LNG Marketing, LLC filed a lawsuit against Kinder Morgan Texas Pipeline LLC and Kinder Morgan Tejas Pipeline LLC for approximately $104 million plus attorney fees and interest, alleging breach of contract during Winter Storm Uri. The trial court's summary judgment in favor of Kinder Morgan, Inc. was reversed and remanded by the appellate court.
• Pension Plan Litigation: A class action lawsuit under ERISA was filed by Kinder Morgan Retirement Plan A participants. The Court certified a class and granted partial summary judgment for both parties on different claims. Plaintiffs seek equitable and other relief, including early retirement benefits and monetary damages, estimated to be in excess of $100 million. A Magistrate Judge issued a Memorandum and Recommendation rejecting or significantly narrowing a number of Plaintiffs’ theories of recovery.
• Environmental Matters: Kinder Morgan, Inc. is subject to environmental cleanup and enforcement actions, including being identified as a potentially responsible party (PRP) at several federal and state Superfund sites. As of December 31, 2025, the company had $176 million in accrued environmental liabilities and $10 million in expected cost recoveries. Specific sites include the Portland Harbor Superfund Site in Oregon and the Lower Passaic River Study Area of the Diamond Alkali Superfund Site in New Jersey.
• Louisiana Governmental Coastal Zone Erosion Litigation: Lawsuits filed by parishes in Louisiana and the City of New Orleans against oil and gas companies, including TGP and SNG, alleging violations of the State and Local Coastal Resources Management Act of 1978. The Plaquemines Parish lawsuit against TGP is stayed. The City of New Orleans lawsuit against SNG was settled and dismissed with prejudice.
• Challenge to Federal “Good Neighbor Plan”: Kinder Morgan, Inc. filed a Petition for Review against the EPA's "Good Neighbor Plan" in the U.S. Court of Appeals, and the U.S. Supreme Court granted a stay of enforcement. The case is currently in abeyance, with the EPA proposing to approve state implementation plans that could reduce the burden on the company.

Tax Strategy & Considerations

Tax Profile:

• Effective Tax Rate: 20.8% for 2025.
• Tax Reform Impact: The One Big Beautiful Bill Act, signed into law on July 4, 2025, permanently reinstated bonus depreciation on qualified property and modified the calculation for excess business interest expense limitation. Kinder Morgan, Inc. anticipates this will defer the payment of a significant portion of its current federal tax for multiple years, with no overall impact to its income statement.

Insurance & Risk Transfer

Risk Management Framework:

• Insurance Coverage: Kinder Morgan, Inc.'s insurance program may not cover all operational risks and costs, and may not provide sufficient coverage for claims. The company does not maintain insurance against all potential losses.
• Risk Transfer Mechanisms: The company uses energy commodity derivative contracts to hedge exposure to market price fluctuations in crude oil, natural gas, and natural gas liquids. Interest rate swap agreements are used to convert portions of fixed-rate debt into variable-rate debt to manage interest rate exposure. Cross-currency swap agreements are utilized to convert Euro-denominated debt to U.S. dollar-denominated debt, eliminating foreign currency risk.