KINDER MORGAN INC
For the period ended Dec 31, 2023. Filed Feb 20, 2024.
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FY2023 · Filed Feb 20, 2024
Contents
Recent Developments
The following is a listing of significant developments and updates related to our major acquisitions and projects and financing transactions. “Capital Scope” is estimated for our share of the described project and may include portions not yet completed.
| Asset or project | Description | Activity | Approx. Capital Scope (KMI Share) |
|---|---|---|---|
| Acquisitions and projects placed in service | |||
| STX Midstream pipeline system acquisition | Acquired a set of integrated, large diameter, high pressure natural gas pipeline systems that connect the Eagle Ford basin to growing Mexico and Gulf Coast demand markets with the purchase of the STX Midstream pipeline system from NextEra Energy Partners, LP. These pipeline systems include the Eagle Ford Transmission system, a 90% interest in the NET Mexico Pipeline LLC and a 50% interest in Dos Caminos, LLC. | Acquired in December 2023. | $1,831 million |
| TGP East 300 Upgrade | Expansion project involved upgrading compression facilities upstream on TGP’s system in order to provide 115,000 Dth/d of capacity to Con Edison’s distribution system in Westchester County, New York. Supported by a long-term contract with Con Edison. | Placed in service November 2023. | $267 million |
| Eagle Ford transport project | Expansion project included constructing 67 miles of 42-inch pipeline, multiple receipt and delivery meters and upgrades to Kinder Morgan Freer compressor station to transport up to 1.88 Bcf/d of lean Eagle Ford production to Gulf Coast markets. Supported by long-term contracts. | Placed in service November 2023. | $231 million |
| PHP expansion | Joint venture project (our ownership interest of 27.74%) that expanded PHP’s capacity by approximately 550,000 Dth/d, increasing natural gas deliveries from the Permian to U.S. Gulf Coast markets. Supported by long-term contracts. | Placed in service December 2023. | $159 million |
| RNG facilities | Construction of three additional landfill-based RNG facilities for KMRNG in order to provide approximately 3.5 Bcf of RNG a year. | Twin Bridges placed in service June 2023. Liberty placed in service October 2023. Prairie View placed in service December 2023. | $153 million |
| Asset or project | Description | Activity | Approx. Capital Scope (KMI Share) |
|---|---|---|---|
| Greenholly pipeline - North Holly expansion | Joint venture project (our ownership interest of 39.25%) that constructed 38 miles of 36-inch pipeline to provide 1.15 Bcf/d of capacity and runs from KinderHawk’s Greenwood system and partner receipt points to KinderHawk’s North Holly system. Supported by long-term contracts. | Placed in service August 2023. | $125 million |
| Other Announcements | |||
| Natural Gas Pipelines | |||
| TGP and SNG Evangeline Pass | Two-phase 2 Bcf/d project to serve Venture Global’s proposed Plaquemines LNG facility (Plaquemines). First phase, TGP will provide approximately 0.9 Bcf/d natural gas transportation capacity to Plaquemines. Second phase, TGP and SNG will jointly provide volumes up to the remaining 1.1 Bcf/d to Plaquemines. | Expected in-service date for first phase is third quarter of 2024 and third quarter of 2025 for the second phase, pending receipt of all required permits. | $673 million |
| TVA Cumberland | Project includes a new 32-mile pipeline to transport approximately 0.245 Bcf/d of natural gas from the existing TGP system to Tennessee Valley Authority’s (TVA) proposed 1,450 megawatt generation facility at an existing site in Cumberland, Tennessee. | Expected in-service date is August 2025, pending receipt of all required permits and clearances. | $181 million |
| KMTP system expansion | Expansion project includes a new 30-mile, 30-inch pipeline, to deliver up to 0.5 Bcf/d of Eagle Ford natural gas supply to markets along the Texas Gulf Coast and Mexico. Expansion will provide transportation services, including treating, for Kimmeridge Texas Gas and other third parties. Supported by a long-term contract. | Expected in-service date is November 2024. | $180 million |
| Central Texas pipeline | Project includes installation of 22 miles of 30-inch pipeline from PHP to Sand Hill Lateral, 1.75 miles of 20-inch pipeline from Sand Hill Lateral to Texas Gas Services and three meter stations and one regulator station. | Expected in-service date is fourth quarter of 2024. | $115 million |
| Tejas South to North expansion | South Texas to Houston Market expansion project to add compression on Tejas’ mainline to increase natural gas deliveries by approximately 0.35 Bcf/d to Houston markets. | Expected in-service date is third quarter of 2024. | $97 million |
| 3Rivers Offload Phase II | Construct 19 miles of 16-inch pipeline and associated compression allowing delivery of 27,000 Dth/d of incremental gathered production for third-party processing. | Expected in-service date is second quarter 2025. | $96 million |
| Diamond M expansion | Enhanced oil recovery expansion at our recently acquired Diamond M field that will result in peak oil production of over 5,000 Bbl/d. | Expected in-service date for the first phase is late 2024, second phase is mid 2025, and peak production in 2026. | $180 million |
Financings and Share Repurchases
During 2023, we (i) issued $1,500 million of new senior notes to repay short-term borrowings, maturing debt and for general corporate purposes; (ii) utilized commercial paper borrowings under our credit facility to fund the $1,831 million acquisition of the STX Midstream pipeline system (STX Midstream); and (iii) repaid a combined $3,225 million of maturing senior notes. On January 18, 2023, our board of directors (Board) approved an increase in our share repurchase authorization of our share buy-back program from $2 billion to $3 billion. During 2023, we repurchased approximately 32 million shares of Class P common stock for $522 million at an average price of $16.56 per share. We have approximately $1.5 billion of capacity remaining under this program.
On February 1, 2024, we issued $2,250 million of new senior notes to repay short-term borrowings, fund maturing debt and for general corporate purposes.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.