INVESTOR PRESENTATION 4Q 2024 – DECEMBER UPDATE TransColorado Conn Creek Compressor Station Disclosure Forward-Looking Statements / Non-GAAP Financial Measures / Industry & Market Data General – The information contained in this presentation does not purport to be all-inclusive or to contain all information that prospective investors may require. Prospective investors are encouraged to conduct their own analysis and review of information contained in this presentation as well as important additional informa ...

分组1 - Kinder Morgan reported quarterly earnings of $0.32 per share, missing the Zacks Consensus Estimate of $0.33 per share, but showing an increase from $0.28 per share a year ago, resulting in an earnings surprise of -3.03% [1] - The company posted revenues of $3.99 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.32% and down from $4.04 billion year-over-year [2] - Over the last four quarters, Kinder Morgan has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates during the same period [2] 分组2 - Kinder Morgan shares have increased approximately 13.9% since the beginning of the year, outperforming the S&P 500's gain of 2.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $4.07 billion, and for the current fiscal year, it is $1.25 on revenues of $15.99 billion [7] 分组3 - The Zacks Industry Rank places the Oil and Gas - Production and Pipelines sector in the top 38% of over 250 Zacks industries, indicating that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] - Enbridge, another company in the same industry, is expected to report quarterly earnings of $0.52 per share, reflecting a year-over-year change of +10.6%, with revenues anticipated to be $4.78 billion, down 42.9% from the previous year [9][10]

Financial Performance - Fourth quarter earnings per share (EPS) of $0.30, up 11% compared to the fourth quarter of 2023 and Adjusted EPS of $0.32, up 14% compared to the fourth quarter of 2023[5] - Net income attributable to KMI of $667 million, compared to $594 million in the fourth quarter of 2023[5] - Adjusted EBITDA of $2,063 million, up 7% versus the fourth quarter of 2023[5] - KMI budgeted net income attributable to KMI of $2.8 billion for 2025, up 8% versus 2024, and Adjusted EPS of $1.27, up 10% from 2024[8] - Q4 2024 revenue decreased slightly to $3.987 billion from $4.038 billion in Q4 2023, a 1.3% decline[43] - Full-year 2024 revenue was $15.100 billion, down 1.5% from $15.334 billion in 2023[43] - Net income attributable to Kinder Morgan, Inc. increased 12% to $667 million in Q4 2024 compared to $594 million in Q4 2023[43] - Adjusted EBITDA for 2024 grew 5% to $7.938 billion from $7.561 billion in 2023[48] - Basic and diluted earnings per share increased 11% to $0.30 in Q4 2024 from $0.27 in Q4 2023[43] - Adjusted EPS grew 14% to $0.32 in Q4 2024 compared to $0.28 in Q4 2023[43] - Net income attributable to Kinder Morgan for Q4 2024 was $667 million, up 12% from $594 million in Q4 2023[64] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $7.938 billion, up from $7.561 billion in the same period of 2023[60] - Net income attributable to Kinder Morgan, Inc. for Q4 2024 was $667 million, up from $594 million in Q4 2023, representing a 12.3% increase[70] - Full-year 2024 net income attributable to Kinder Morgan, Inc. was $2.613 billion, a 9.3% increase from $2.391 billion in 2023[70] - The company's 2025 budget projects net income attributable to Kinder Morgan, Inc. of $2.8 billion and adjusted EBITDA of $8.3 billion[76] - Adjusted Net Income Attributable to Common Stock for 2025 is projected at $2.8 billion[79] Capital Projects and Investments - Project backlog at the end of the fourth quarter of 2024 stood at $8.1 billion, a nearly 60% increase compared to $5.1 billion in the third quarter of 2024[7] - The Trident Intrastate Pipeline Project, an approximately 216-mile pipeline with a capacity of 1.5 Bcf/d, is expected to be in service in the first quarter of 2027[18] - KMI's subsidiary, Hiland Partners Holdings LLC, agreed to purchase a natural gas gathering and processing system in North Dakota for $640 million, expected to close in the first quarter of 2025[20] - The Mississippi Crossing (MSX) project is now designed to transport up to 2.1 Bcf/d of natural gas through the construction of nearly 206 miles of pipeline and three new compressor stations, expected to be in service in November 2028[20] - KMI's total RNG generation capacity will increase to 6.9 Bcf per year with the addition of the Autumn Hills RNG facility[23] - Capital expenditures (GAAP) for 2024 totaled $2.629 billion, a 13.5% increase from $2.317 billion in 2023[70] - 2025 budget includes $2.4 billion for DD&A and $1.8 billion for net interest expense[76] Dividends and Cash Flow - KMI expects to declare dividends of $1.17 per share for 2025, a 2% increase from the dividends declared for 2024[8] - DCF (Distributable Cash Flow) for Q4 2024 was $1.263 billion, an 8% increase from $1.171 billion in Q4 2023[64] - Declared dividends per share for 2024 were $1.15, up from $1.13 in 2023[64] - Cash flow from operations for Q4 2024 was $1.510 billion, down 35.0% from $2.322 billion in Q4 2023[70] - Full-year 2024 free cash flow (FCF) was $3.006 billion, a 28.0% decrease from $4.174 billion in 2023[70] - Distributions from equity investments exceeded cumulative earnings by $60 million in Q4 2024 and $177 million for full-year 2024[71] Segment Performance - Natural Gas Pipelines Segment EBDA increased 2.9% to $1.392 billion in Q4 2024 from $1.353 billion in Q4 2023[54] - Products Pipelines Segment EBDA rose 7.1% to $302 million in Q4 2024 compared to $282 million in Q4 2023[54] - Terminals Segment EBDA grew 5.6% to $281 million in Q4 2024 from $266 million in Q4 2023[54] - CO Segment EBDA decreased 11.7% to $158 million in Q4 2024 from $179 million in Q4 2023[54] Operational Metrics - Natural gas transport volumes for Q4 2024 were 44,507 BBtu/d, slightly down from 44,722 BBtu/d in Q4 2023[56] - Total refined product volumes for Q4 2024 were 1,644 MBbl/d, up from 1,613 MBbl/d in Q4 2023[56] - Liquids leased capacity percentage increased to 95.2% in Q4 2024 from 93.3% in Q4 2023[56] - Total oil production for Q4 2024 was 26.22 MBbl/d, down from 27.09 MBbl/d in Q4 2023[56] - Realized weighted average oil price for Q4 2024 was $67.24 per Bbl, nearly flat compared to $67.22 per Bbl in Q4 2023[56] Financial Metrics and Adjustments - Change in fair value of derivative contracts for the three-month period ending December 31, 2024, was $40 million, compared to $(33) million for the same period in 2023[29] - Loss (gain) on divestitures and impairment, net for the twelve-month period ending December 31, 2024, was $(69) million, compared to $67 million in 2023[29] - Total Certain Items for the three-month period ending December 31, 2024, were $41 million, compared to $39 million in 2023[29] - Adjusted Net Income Attributable to Kinder Morgan, Inc. is calculated by adjusting net income for Certain Items, providing a supplemental measure for period-over-period performance[33] - Adjusted EBITDA is used to evaluate leverage and is calculated by adjusting net income for Certain Items, DD&A, income tax expense, and interest[33] - Net Debt is calculated by subtracting cash, debt fair value adjustments, and foreign exchange impacts from total debt, used to evaluate leverage[35] - DCF (Distributable Cash Flow) is calculated by adjusting net income for Certain Items, DD&A, income tax expense, cash taxes, and sustaining capital expenditures[36] - Project EBITDA is used to evaluate return on investment for capital projects before non-controllable expenses[37] - FCF (Free Cash Flow) is calculated by reducing cash flow from operations for capital expenditures and dividends, providing insight into cash flow generation[38] - Net debt-to-Adjusted EBITDA ratio improved to 4.0x at the end of 2024 from 4.2x at the end of 2023[61] Forward-Looking Statements and Risks - Forward-looking statements include expectations for long-term demand, energy evolution opportunities, and capital project benefits, subject to risks and uncertainties[39] Working Capital and Other Items - The 2023 working capital and other items included $843 million from a customer prepayment agreement for long-term contracts[72]

Alcoa Corporation - Alcoa's Q4 sales are expected to increase by 30% to $3.38 billion compared to $2.6 billion in the same quarter last year [3] - Q4 earnings per share (EPS) are projected to swing to $0.91 from an adjusted loss of -$0.56 a year ago [3] - For fiscal year 2024, total sales are anticipated to rise by 11% to $11.76 billion, with annual earnings expected to soar to $0.94 per share from an adjusted loss of -$2.27 in 2023 [4] - FY25 sales projections indicate a further 9% increase to $12.87 billion, with EPS expected to rise over 350% to $4.27 [6] - Over the last 60 days, FY24 EPS estimates have increased by 4%, while FY25 estimates have climbed more than 40% [6] Kinder Morgan - Kinder Morgan's Q4 sales are expected to rise by 3% to $4.16 billion, with Q4 EPS projected at $0.33 compared to $0.28 in the same quarter last year [5] - Annual earnings are forecasted to increase by 9% to $1.17 per share, despite total sales projected at $15.27 billion, slightly down from $15.33 billion in 2023 [5] - FY25 sales projections suggest a rebound with a 5% increase to $15.99 billion, and annual earnings are expected to rise by another 5% to $1.23 per share [6] - Earnings estimate revisions for FY24 have remained unchanged, while FY25 EPS estimates have seen slight increases [8] Investment Outlook - Both Alcoa Corporation and Kinder Morgan are positioned as viable investments for 2025 and beyond, given their increased profitability and positive projections [9]

Core Viewpoint - Kinder Morgan (KMI) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][4][6]. Earnings Estimates and Ratings - The Zacks rating system is primarily driven by changes in a company's earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts [2]. - The recent upgrade for Kinder Morgan reflects an improvement in its earnings outlook, which is expected to lead to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Revisions - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [5][7]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, and their investment actions based on these estimates can significantly impact stock prices [5]. Kinder Morgan's Financial Outlook - Kinder Morgan is projected to earn $1.17 per share for the fiscal year ending December 2024, representing a year-over-year increase of 9.4% [9]. - Over the past three months, the Zacks Consensus Estimate for Kinder Morgan has increased by 5.8%, indicating a positive trend in earnings estimates [9]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - Kinder Morgan's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [11].

Stock Performance - Kinder Morgan (KMI) closed at $30 31 with a +0 83% daily movement, underperforming the S&P 500 (+1%), Dow (+0 78%), and Nasdaq (+1 51%) [1] - Over the past month, KMI shares gained 14 56%, outperforming the Oils-Energy sector (-3 79%) and the S&P 500 (-2 14%) [1] Earnings and Revenue Projections - KMI is set to report earnings on January 22, 2025, with projected earnings of $0 33 per share, representing a 17 86% year-over-year growth [2] - Revenue is expected to reach $4 09 billion, up 1 28% from the previous year [2] Analyst Forecasts and Revisions - Positive revisions to analyst forecasts indicate optimism about KMI's business outlook [3] - The Zacks Consensus EPS estimate for KMI has increased by 1 97% over the past month [5] Valuation Metrics - KMI's Forward P/E ratio is 24 48, higher than the industry average of 15 03 [6] - KMI's PEG ratio is 4 16, compared to the industry average of 3 23 [7] Industry Overview - The Oil and Gas - Production and Pipelines industry is part of the Oils-Energy sector and has a Zacks Industry Rank of 157, placing it in the bottom 38% of all industries [8] - Industries in the top 50% of the Zacks Industry Rank outperform the bottom half by a factor of 2 to 1 [8]

Company Overview - Kinder Morgan Inc (KMI) is one of the largest energy infrastructure companies in North America, operating approximately 79,000 miles of pipelines, 139 terminals, and 702 billion cubic feet of working natural gas storage capacity [1] - The company has renewable natural gas generation capacity of approximately 6.1 Bcf per year with an additional 0.8 Bcf in development [1] - KMI's pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO2, renewable fuels, and other products [1] - The company's terminals store and handle various commodities including gasoline, diesel fuel, jet fuel, chemicals, metals, petroleum coke, ethanol, and other renewable fuels and feedstocks [1] Strategic Partnerships - KMI has joined Flyscan Systems' strategic investors, including Marathon Petroleum, Enbridge, and Hatch, to support the company's advancement and growth [3] - The partnership will enable Flyscan to accelerate commercialization and scale-up of its operations, including entry into the Natural Gas detection and quantification market [3] - KMI's Chief Operating Officer, James Holland, stated that Flyscan's technologies are state-of-the-art for pipeline leak detection and right-of-way damage prevention [4] Industry Impact - KMI is recognized as an industry leader with a strategic footprint across multiple fuel types and a significant presence in the US market [2] - The company's involvement with Flyscan Systems is expected to bring key expertise, best practices, and development of new capabilities to accelerate market growth [3] - Flyscan Systems, a spin-off from Canada's National Optics Institute, is the first company to enable detection of liquid hydrocarbons and automation of Right-of-Way visual inspection using remote sensing and artificial intelligence [4] Environmental and Safety Commitment - KMI is committed to providing energy transportation and storage services in a safe, efficient, and environmentally responsible manner [1] - The company aims to protect employees, the environment, and the communities in which it operates through partnerships like the one with Flyscan Systems [4]

Industry Overview - The current winter in the United States has been particularly cold, creating a favorable environment for investing in natural gas stocks [1] - Natural gas futures are projected to increase by 12% year-over-year as of January 9, 2025, with the U.S. Energy Information Administration (EIA) forecasting LNG prices to average $3.00 in 2025 [2][3] Company Analysis: Kinder Morgan - Kinder Morgan operates a vast network of 79,000 miles and is responsible for transporting approximately 40% of the natural gas produced in the U.S. [4] - The company is expected to see high single-digit earnings growth in 2025, driven by increasing demand for natural gas, particularly from data centers supporting AI applications [5] - Kinder Morgan has a dividend yield of 4.08% and is expected to increase its dividend by 1.7% to $1.17 per share, marking eight consecutive years of increases [6] Company Analysis: ONEOK - ONEOK operates over 50,000 miles of pipelines and specializes in natural gas and natural gas liquids [7] - The company has achieved a 14% year-over-year growth in earnings per share over the past three years, with analysts forecasting a 17% growth in the next year [8] - Recent price action suggests a buying opportunity, with a consensus price target of around $115, indicating an 11% potential stock price gain alongside a dividend yield of 3.86% [8] Company Analysis: NGL Energy Partners - NGL Energy Partners operates a network of midstream pipelines and storage facilities, managing natural gas, water pipelines, and crude oil [10] - Despite a lighter earnings report, NGL stock has risen approximately 28% since the earnings report, with analysts projecting positive earnings of 11 cents for the full year [11]

The market expects Kinder Morgan (KMI) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they mi ...

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