Barclays Investment Banking Pitch Book
KMP
Projected 2014E-2016E Cash Distribution CAGRS
Available Equity Analyst Estimates
Tudor Pickering Holt & Co. (07/01/2014)
Deutsche Bank Research (07/17/2014)
Barclays (07/17/2014)
Wells Fargo (07/17/2014)
RBC Capital Markets (07/18/2014)
Jefferies (07/17/2014)
KMP Management
Equity Analyst Median
2014E-2016E
Distribution CAGRS
BARCLAYS
4.5%
5.2%
4.7%
3.8%
3.6%
1.8%
5.0%
Note: KMP acts as primary growth vehicle in Status Quo
1. 2013-2016 CAGR as stated by KMI management in investor presentation
2. Company management assumes 50% / 50% mix of fixed and floating debt.
KMP
Assumed Yield
% GP Gross Up
Assumed KMP Yield with GP Gross-up
Indicative Growth Range
Average Cost of Def
Interest Tax Shield
Cost of Debt
4.2% Det/(Debt + Equity) (%)
Debt Component
Cost of Capital
Cost of Equity Reference Range
Assumed Farid
KMP Cost of Equity Reference Range
Equity (Debt Equity) ()
Equity Component
17
LOW
6.30%
54%
12.04%
NA
12.04%
50%
6.02%
3.75%
3.75%
50%
TAP%
7.89%
High
7.50%
54%
13.89%
NA
13.89%
50%
6.34%
3.75%
3.75%
50%
1.40%
8.82%
Assumed Yield Indicative Growth
Low
6.50%
54%
50%
17.04%
50%
8.52%
3.70%
1.75%
50%
1.38%
Cost of Capital
10.39%
High
7.50%
54%
13.89%
50%
18.89%
50%
9.44%
3.75%
3.79%
50%
1,30%
11.32%View entire presentation