KINDER MORGAN INC

Natural Gas Pipelines

(a)See table included in “—Overview—Non-GAAP Financial Measures—Certain Items” above. For the periods ending September 30, 2024 and 2023, Certain Items of (i) $(14) million and $19 million for the three-month periods, respectively, and $0 and $(99) million for the nine-month periods, respectively, are associated with our Midstream business and (ii) $1 million for the 2023 three-month period and none for the 2023 nine-month period are associated with our East business. For more detail of significant Certain Items, see the discussion of changes in Segment EBDA below.

(b)Joint venture throughput is reported at our ownership share. Volumes for acquired assets are included for all periods presented. However, EBDA contributions from acquisitions are included only for the periods subsequent to their acquisition. Volumes for assets sold are excluded for all periods presented.

Below are the changes in Natural Gas Pipelines Segment EBDA:

The changes in Natural Gas Pipelines Segment EBDA in the comparable three and nine-month periods ended September 30, 2024 and 2023 are explained by the following discussion:

•The $113 million (35%) and $75 million (6%) increases, respectively, in Midstream resulted from the impacts of (i) non-cash mark-to-market derivative contracts used to hedge forecasted commodity sales and purchases, which increased revenues and decreased costs of sales for the three-month period and increased costs of sales for the nine-month period; and (ii) a gain on sale of assets in the 2024 nine-month period, all of which we treated as Certain Items.

In addition, Midstream was favorably impacted by (i) our STX Midstream acquired assets partially offset by our divested assets; (ii) increased demand and rates for our services on our Texas intrastate systems and increased sales margin in the three-month period driven by lower prices on costs of sales, partially offset by higher operating expenses; (iii) higher equity earnings from Permian Highway Pipeline LLC driven by an expansion project that went into service in November 2023; and (iv) increased volumes partially offset by higher operating costs on our KinderHawk assets. The year-to-date increase was also partially offset by lower sales margin driven by lower commodity prices and volumes on our Altamont assets.

Overall, Midstream’s revenue changes are partially offset by corresponding changes in costs of sales.

•The $7 million (1%) and $33 million (2%) increases, respectively, in East were impacted by expansion projects that went into service in July 2024 and November 2023 on TGP partly offset, to a greater extent in the nine-month period, by higher pipeline maintenance costs. The increases were also partially offset by (i) lower equity earnings from Midcontinent Express Pipeline LLC driven by lower contracted rates; and (ii) timing of revenue recognition associated with a prepaid customer contract on Southern LNG Company, L.L.C. The year-to-date increase was further impacted by increased demand for services on our Stagecoach assets partially offset by an increase in legal reserves on TGP.

•The $5 million (2%) and $2 million (—%) decreases, respectively, in West were primarily due to lower gas sales margin and a decrease in park and loan activity resulting from less favorable spreads on EPNG compared to 2023 and higher pipeline maintenance costs on EPNG and Colorado Interstate Gas Company, L.L.C. These decreases were partially offset by increased demand for services on Cheyenne Plains Gas Pipeline Company, L.L.C. and Wyoming Interstate Company, L.L.C. The year-to-date decrease was also offset by an insurance settlement received by EPNG in the 2024 period.

Products Pipelines

(a)See table included in “—Overview—Non-GAAP Financial Measures—Certain Items” above. For the periods ending September 30, 2024 and 2023, Certain Items of (i) $(1) million and none for the three-month periods, respectively, and none and $1 million for the nine-month periods, respectively, are associated with our Southeast Refined Products business and (ii) $2 million for the 2023 three-month period, and $69 million for the 2023 nine-month period is associated with our Crude and Condensate business. For more detail of significant Certain Items, see the discussion of changes in Segment EBDA below.

(b)Joint venture throughput is reported at our ownership share.

(c)Volumes include ethanol pipeline volumes.

Below are the changes in Products Pipelines Segment EBDA:

The changes in Products Pipelines Segment EBDA in the comparable three and nine-month periods ended September 30, 2024 and 2023 are explained by the following discussion:

•The $27 million (30%) decrease and $30 million (16%) increase, respectively, in Crude and Condensate was impacted by:

A $67 million non-cash impairment in the 2023 nine-month period related to our investment in Double Eagle Pipeline LLC, which decreased equity earnings, and which we treated as a Certain Item; and

A decrease in equity earnings from Double Eagle Pipeline LLC, excluding the impairment discussed above, due to unfavorable recontracting and lower commodity prices in our marketing activities on our Bakken Crude assets. Our Crude and Condensate business also had lower revenues with a corresponding decrease in costs of sales, resulting primarily from decreased volumes.

•The $21 million (26%) and $1 million (—%) decreases, respectively, in Southeast Refined Products were driven by unfavorable commodity pricing and the associated impact on inventory at our Transmix processing operations and higher operating costs at our South East Terminals. The year-to-date decrease was favorably impacted by higher butane blending sales volumes at our South East Terminals.

•The $15 million (11%) and $62 million (16%) increases, respectively, in West Coast Refined Products resulted from higher transportation rates and volumes and higher renewable diesel volumes on our Pacific operations.

Terminals

(a)See table included in “—Overview—Non-GAAP Financial Measures—Certain Items” above. The 2024 Certain Items are associated with our Liquids business. For more detail of significant Certain Items, see the discussion of changes in Segment EBDA below.

(b)Volumes for facilities divested, idled and/or held for sale are excluded for all periods presented.

(c)The ratio of our tankage capacity in service to liquids leasable capacity.

For purposes of the following tables and related discussions, the results of operations of our terminals held for sale or divested, including any associated gain or loss on sale, are reclassified for all periods presented from the historical business grouping and included within the Other group.

Below are the changes in Terminals Segment EBDA:

The changes in Terminals Segment EBDA in the comparable three and nine-month periods ended September 30, 2024 and 2023 are explained by the following discussion:

•The $3 million (2%) and $32 million (7%) increases, respectively, in Liquids were primarily driven by (i) contributions from expansion projects; (ii) higher throughput and ancillary fees; and (iii) higher rates and utilization, primarily at our New York Harbor hub facilities, partially offset by higher labor and maintenance expenses.

•The $3 million (5%) and $4 million (2%) increases, respectively, in Bulk were primarily due to increased volume and related handling and ancillary charges for petroleum coke, fertilizer and steel and, in the nine-month period, coal and soda ash. These increases were partially offset by higher labor and maintenance expenses and demurrage costs incurred at our International Marine Terminal.

•The $2 million (4%) and $8 million (6%) increases, respectively, in Jones Act tankers were primarily due to higher average charter rates and lower operating costs.

CO 2

(a)See table included in “—Overview—Non-GAAP Financial Measures—Certain Items” above. The 2024 and 2023 Certain Items are associated with our Oil and Gas Producing activities. For more detail of significant Certain Items, see the discussion of changes in Segment EBDA below.

(b)Volumes for acquired assets are included for all periods presented, however, EBDA contributions from acquisitions are included only for the periods subsequent to their acquisition. Volumes for assets sold are excluded for all periods presented.

(c)Net of royalties and outside working interests.

Below are the changes in CO 2 Segment EBDA:

The changes in CO 2 Segment EBDA in the comparable three and nine-month periods ended September 30, 2024 and 2023 are explained by the following discussion:

•The $4 million (4%) and $5 million (1%) decreases, respectively, in Oil and Gas Producing activities resulted primarily from (i) lower crude oil volumes; (ii) higher power costs; and (iii) our divested assets. These decreases were partially offset by our acquired assets and higher realized crude oil prices. The year-to-date decrease was further impacted by lower realized NGL prices and volumes.

In addition, Oil and Gas Producing activities were favorably impacted by (i) non-cash mark-to-market derivative hedge contracts, which increased revenues in the three and nine-month periods; and (ii) in the nine-month 2024 period, a $41 million gain on sale of oil and gas producing fields, all of which we treated as Certain Items.

•The $1 million (2%) decrease and $7 million (5%) increase, respectively, in Source and Transportation activities were primarily due to lower realized CO 2 sales prices and in the nine-month period, lower CO 2 sales volumes, largely offset by reduced volumes due to a refinery outage in 2023 on our Wink pipeline. The year-to-date increase was also impacted by lower integrity maintenance costs in 2024.

•The $12 million (86%) and $22 million (110%) increases, respectively, in Energy Transition Ventures were primarily due to higher RIN sales margin resulting from increased volumes partially offset by higher operating expenses.

We believe that our existing hedge contracts in place within our CO 2 business segment substantially mitigate commodity price sensitivities in the near-term and to a lesser extent over the following few years from price exposure. Below is a summary of our CO 2 business segment hedges outstanding as of September 30, 2024:

(a)Incl udes WTI hedges.