Fueling the Future: Kinder Morgan's Role in Reducing Emissions and Generating Cash Flow
$310 million Acquisition of Kinetrex Energy
Platform acquisition provides multi-year head start to participate in emerging RNG market
ASSETS & VALUATION
2 small-scale LNG facilities
1 operational landfill-RNG facility with ~0.4 bcf(a)
capacity
Prairie View
Liberty
KINDER MORGAN
NORTH AMERICA RNG DEMAND bcfd
■Stated Policies Scenario Sustainable Development Scenario
0.3
2025
1.1
Landfill
facilities
expected to
3 landfill-RNG facilities operational by 2022 end with
total capacity of 3.5 bcf
Twin Bridges
Indy HBTU
Offtake is commercially contracted with high quality
counterparty
0.6
2030
Expect <6x 2023 EBITDA based on $310mm
purchase price and $146mm development capex
Conservative RINS assumptions vs current spot RINS
prices
Transaction closed Aug 20, 2021
FUTURE RNG DEVELOPMENTS
Retained Kinetrex management team to pursue new
projects and expand RNG platform
Mitigate exposure to RIN volatility through fixed price
contracts in voluntary market
Sources: North America RNG Demand per IEA "Outlook for biogas and biomethane" report (March 2020).
a) KM share. 50% interest in Indy HBTU. 3 facilities in development are 100% owned.
Operational RNG Plants
RNG Plants Under Construction
LNG Production & Fueling Facilities
0.8
2035
1.0
2040
drive
1.9
growth
2.7
3.5
Hundreds of landfills across the US are candidates for RNG
<100 sites operational or in development today
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