Kinder Morgan (KMI) 23rd Annual Wells Fargo Midstream, Energy & Utilities Symposium summary

Macroeconomic and regulatory outlook

• Anticipates removal of the LNG pause early in the next administration, supporting long-term LNG development in the U.S.

• Potential positive tax changes include extension of bonus depreciation and a shift back to EBITDA for interest deduction limitations.

• Possible regulatory reforms and permitting changes could reduce costs or time for projects, but impact depends on specific reforms.

• Tariffs on pipe remain, but most supply is sourced domestically.

Natural gas demand and regional opportunities

• Significant growth in U.S. natural gas demand projected, with Wood Mackenzie estimating 20–25+ BCF/day over the next five years.

• Power demand is rising due to coal conversions, population migration, and industrial development, especially in the Southern U.S.

• Major data center projects in Louisiana and Mississippi are driving new demand, alongside broader industrial growth.

• Most opportunities for expansion are in the Southern U.S., leveraging existing asset base.

Investment approach and returns

• Investment returns are set above cost of capital, with higher returns required for riskier projects.

• Customer price sensitivity and competition influence project returns; methodology remains consistent across projects.

• Focus remains on pipeline expansion rather than power plant construction, though selective participation in power projects is possible under the right structure.

• Returns are project-dependent, with a spread maintained above cost of capital to manage risk.