Kinder Morgan (KMI) Barclays 40th Annual Energy-Power Conference summary

Natural gas segment outlook and project pipeline

• Natural gas represents about two-thirds of the business and is expected to drive the most growth, with at least $1.4 billion in new projects to be sanctioned by year-end and a backlog projected to exceed $10 billion.

• Backlog consists mainly of board-approved, take-or-pay projects, providing high confidence in future earnings and stability.

• The opportunity set outside the backlog is also around $10 billion, driven by strong demand growth in LNG exports and power, especially in the Southern U.S.

• The company serves 40% of U.S. natural gas demand and 50% of exports to Mexico, supporting confidence in replenishing and expanding the backlog.

• Incremental EBITDA from the current backlog is expected to be $1.7 billion, with most projects coming online between 2027 and 2029, extending growth into 2030.

Regional growth drivers and project specifics

• Gathering and processing assets, mainly in Haynesville, Eagle Ford, and Bakken, are positioned for near-term volume growth, especially in Haynesville.

• The TGP expansion aims to move gas from Marcellus Utica to Tennessee, addressing constrained takeaway capacity and serving power demand in the Southeast.

• Future expansions could connect Marcellus supply to export LNG and power markets in the Southeast, leveraging assets like Mississippi Crossing and MSX.

• Trident pipeline phases I and II will serve Texas and Louisiana LNG demand, with further expansion possible depending on market needs.

• Permian egress capacity is sufficient for now, but new projects like Permian Link target regional power demand and data centers.

Strategic partnerships and capital allocation

• The Western Gateway JV with HF Sinclair and Phillips 66 will address California and Southwest fuel supply, with Kinder contributing assets valued at $1.5 billion and $250 million in cash equity.

• The pipeline can expand from 230 to over 320 thousand barrels per day if demand increases.

• The CO2 segment, about 7% of the business, is largely hedged for 2026 and 2027, with current volumes outperforming budget and additional hedges in place.

• Over $3 billion in annual expansion CapEx can be funded with cash flow, and the balance sheet allows for additional bolt-on acquisitions without equity raises.

• Recent acquisitions have integrated well into existing systems, and the company maintains flexibility for both organic and inorganic growth.