KINDER MORGAN INC

The following table summarizes our net cash flows provided by (used in) operating, investing and financing activities between 2023 and 2022.

Operating Activities

$1,524 million more cash provided by operating activities in the comparable years of 2023 and 2022 is explained by the following discussion.

•an $894 million increase in cash related to changes in deferred revenues primarily driven by an $843 million prepayment received for certain fixed reservation charges under long-term transportation and terminaling contracts in the 2023 period. See Note 15 “Revenue Recognition” to our consolidated financial statements for further information regarding this prepayment; and

•an $896 million increase in cash associated with net changes in working capital items and other non-current assets and liabilities, excluding the change in deferred revenues discussed above. The increase was primarily driven by (i) the sale of natural gas inventories and higher settlements associated with commodity hedges in 2023, both related to gas in underground storage; (ii) lower litigation payments in the 2023 period compared with 2022; (iii) net favorable changes related to the timing of accounts receivable collections and trade payable payments, largely in our Natural Gas Pipelines business segment; and (iv) higher pension benefit expenses in 2023, which are netted against contribution payments, resulting from actuarial valuation adjustments and one-time pension cost adjustments related to settlements made by our pension plans.

Investing Activities

$2,000 million more cash used in investing activities in the comparable years of 2023 and 2022 is explained by the following discussion.

•a $1,355 million increase in expenditures for the acquisition of assets and investments, net of cash acquired, primarily driven by $1,829 million of net cash used for the acquisition of STX Midstream in 2023, compared with a combined $487 million of net cash used for our acquisitions of Mas Ranger, LLC and NANR in 2022; See Note 3 “Acquisitions and Divestitures” to our consolidated financial statements for further information regarding these acquisitions; and

•a $696 million increase in capital expenditures primarily driven by the expansion projects in our Natural Gas Pipelines and Terminals business segments, partially offset by a decrease in expansion projects in our Products Pipelines business segment.

Financing Activities

$131 million less cash used in financing activities in the comparable years of 2023 and 2022 is explained by the following discussion.

•a $916 million net increase in cash related to debt activity as a result of net issuances in 2023 compared to net debt payments in 2022. Net debt issuances in 2023 were primarily driven by the utilization of borrowings under our credit facility to fund the STX Midstream acquisition; partially offset by,

•a decrease of $557 million in cash due to net proceeds received from the sale of a 25.5% ownership interest in ELC in 2022; and

•a $154 million increase in cash used for share repurchases under our share buy-back program.