KMI: 2020 Guidance - Published Budget
KMI Business Risks
Summary
Regulatory
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FERC rate cases (Products Pipelines and Natural Gas Pipelines)
Provincial, state, and local permitting issues
CO2 crude oil production volumes
Throughput on our volume-based assets
Commodity prices
2019 budget average strip price assumptions: $60.00/bbl for crude and $3.15/mmbtu for natural gas
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Price sensitivities (full-year):
Price A
Commodity
DCF Impact
$1/bbl
Oil
~$8mm
$0.10/mmbtu(a)
Natural Gas
1%
NGL/Crude Oil Ratio
~$1mm
~$3mm
■ Project cost overruns / in-service delays
Interest rates
Sensitivity (full-year): 100-bp change in floating rates = ~$104 million interest expense impact (b)
Foreign exchange rates
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2019 budget rate assumption of 0.76 USD per 1.00 CAD
Sensitivity (full-year): 0.01 ratio change = ~$0.4 million DCF impact
Environmental (e.g. pipeline / asset failures)
Economically sensitive business
Cyber security
a) Natural Gas Midstream sensitivity incorporates current hedges, and assumes ethane recovery for majority of year, constant ethane frac spread vs. natural gas prices.
b) As of 9/30/2019, approximately $10.4 billion of KMI's long-term debt was floating rate (~30% floating). Assumes swaps expiring in the current year are replaced with new swaps.
KINDER MORGAN
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