Kinder Morgan(US:KMI)2025-07-01 10:48Energy Market Outlook - Global energy demand is projected to steadily grow, driven by developing economies like India (32% of incremental demand from 2017 to 2040), China (26%), and Africa (15%) [9, 12] - The U S is the largest oil and gas producer, with production up 23% and 29% respectively in 2017 compared to 2000 and 2010 [16, 17] - U S oil and natural gas production is expected to grow by approximately 33% from 2017 to 2025 [22] Kinder Morgan's Asset and Financial Highlights - Kinder Morgan transports approximately 40% of the natural gas consumed in the U S [26, 39] - The company's 2019 budgeted Segment EBDA is approximately $84 billion, with natural gas pipelines contributing 61%, products pipelines 15%, terminals 14%, CO2 oil production 6%, and CO2 S&T 4% [25] - Kinder Morgan anticipates $5 billion of distributable cash flow (DCF) in 2019, allocating approximately $2 billion for dividends and $3 billion to enhance shareholder value [30] - Approximately 96% of Kinder Morgan's 2019 budgeted segment cash flow is from take-or-pay and other fee-based contracts or hedged [33] Growth and Capital Allocation - Kinder Morgan has $61 billion of commercially secured capital projects underway, with $43 billion specifically for natural gas projects [44] - The company's capital allocation priorities include maintaining a strong balance sheet with a target Net Debt / Adjusted EBITDA of approximately 45x, dividend growth, and share repurchases [37, 38] - U S natural gas production is projected to grow by over 30 Bcfd, or approximately 37%, through 2030, driven by key basins [39] Financial Performance and Valuation - Kinder Morgan's 2019 budgeted Adjusted EBITDA is $78 billion, and distributable cash flow (DCF) is $50 billion [73] - The company's 2019 dividend is targeted at $100 per share, with a planned increase to $125 per share in 2020 [38] - Approximately 69% of Kinder Morgan's 2019 budgeted net revenue is generated by end-users [87]