KINDER MORGAN INC

As of December 31, 2024, we had $88 million of “Cash and cash equivalents,” an increase of $5 million from December 31, 2023. Additionally, as of December 31, 2024, we had borrowing capacity of approximately $3.1 billion under our credit facility (discussed below in “—Short-term Liquidity”). As discussed further below, we believe our cash flows from operating activities, cash position and remaining borrowing capacity on our credit facility is more than adequate to allow us to manage our day-to-day cash requirements and anticipated obligations.

We have consistently generated substantial cash flow from operations, providing a source of funds of $5,635 million and $6,491 million in 2024 and 2023, respectively. The year-to-year decrease is discussed below in “—Cash Flows—Operating Activities.” We primarily rely on cash provided by operations to fund our operations as well as our debt service, sustaining capital expenditures, dividend payments and our growth capital expenditures; however, we may access the debt capital markets from time to time to refinance our maturing long-term debt and finance incremental investments, if any. From time to time, short-term borrowings are used to fund working capital and finance incremental capital investments, if any. Incremental capital investments initially funded through short-term borrowings may periodically be replaced with long-term financing and/or paid down using retained cash from operations.

Our Board declared a quarterly dividend of $0.2875 per share for the fourth quarter of 2024, consistent with previous quarters in 2024. The total of the dividends declared for 2024 of $1.15 represents a 2% increase over total dividends declared for 2023.

We use interest rate swap agreements to convert a portion of the underlying cash flows related to our long-term fixed-rate debt securities (senior notes) into variable-rate debt in order to achieve our desired mix of fixed and variable rate debt. As of December 31, 2024 and 2023, $3,621 million (11%) and $8,253 million (26%), respectively, of the principal amount of our debt balances were subject to variable interest rates—either as short-term or long-term variable-rate debt obligations or as fixed-rate debt converted to variable rates through the use of interest rate swaps. The amounts at December 31, 2024 and 2023 include $3,250 million and $6,200 million, respectively, of interest rate swap agreements and $331 million and $1,989 million, respectively, of commercial paper notes. The interest rate swap agreements as of December 31, 2024 are net of $1,500 million of variable-to-fixed interest rate swap agreements which expire December 2025.

On February 1, 2024, we issued, in a registered offering, two series of senior notes consisting of $1,250 million aggregate principal amount of 5.00% senior notes due 2029 and $1,000 million aggregate principal amount of 5.40% senior notes due 2034 for combined net proceeds of $2,230 million, which were used to repay short-term borrowings, to fund maturing debt and for general corporate purposes.

On July 31, 2024, we issued, in a registered offering, two series of senior notes consisting of $500 million aggregate principal amount of 5.10% senior notes due 2029 and $750 million aggregate principal amount of 5.95% senior notes due 2054 and received combined net proceeds of $1,235 million, which were used to repay short-term borrowings, to fund maturing debt and for general corporate purposes.

During the year ended December 31, 2024, upon maturity, we repaid our 4.15% senior notes, our 4.30% senior notes and our 4.25% senior notes.

For additional information about our outstanding senior notes and debt-related transactions in 2024, see Note 8 “Debt” to our consolidated financial statements. For information about our interest rate risk, see Note 13 “Risk Management—Interest Rate Risk Management” to our consolidated financial statements and Item 7A. “Quantitative and Qualitative Disclosures About Market Risk—Interest Rate Risk.”