Kinder Morgan (KMI) 47th Annual Raymond James Institutional Investor Conference summary

Industry trends and growth opportunities

• Natural gas demand is rising globally, with forecasts showing an increase from 410 Bcf/d in 2024 to 541 Bcf/d by 2050, driven by both international LNG exports and domestic power generation needs.

• The U.S. is a key LNG exporter due to robust infrastructure and low geopolitical risk, making it a preferred supplier for countries lacking natural resources.

• Domestic demand is increasing, especially from power generation, industrial processes, and the rapid expansion of data centers fueled by AI investments.

• Coal-to-gas conversions and population migration are further boosting natural gas demand in specific regions.

• Data center growth is expected to add significant incremental power and natural gas demand, with 70% of new capacity located in areas with strong infrastructure presence.

Asset base, strategy, and financial profile

• Owns nearly 80,000 miles of pipeline, primarily natural gas, providing a competitive advantage for new projects and expansions.

• Cash flows are highly stable and visible, with 65% take-or-pay contracts and 26% fee-based, minimizing commodity price exposure.

• Maintains a strong balance sheet, with leverage at 3.8x and $6 billion in annual operating cash flow, supporting growth investments and a sustainable dividend.

• Focuses on organic growth, funding capital needs internally, and prioritizing shareholder returns through dividends and share repurchases.

• Achieved 8% annual EPS growth and reduced leverage by 26% over the past decade.

Project pipeline and execution

• Project backlog totals $10 billion, primarily in natural gas, with high confidence in execution due to strong track record and experienced teams.

• Major projects include South System Expansion 4 and Mississippi Crossing, addressing critical supply needs in the Southeast and Port Arthur LNG markets.

• Utilization of major pipelines has increased from 74% in 2016 to 90% in 2025, reflecting near-full capacity and higher contract tenors.

• Additional $10 billion in identified projects are being developed, focusing on de-bottlenecking, power generation, and exports to Mexico.

• Project execution risk is managed by early contractor engagement and securing long-lead materials, with some cost escalation passed through to customers.