Kinder Morgan Energy Infrastructure Deck
$1.815bn Acquisition of NEP's South Texas Natural Gas Pipelines
462 miles of primarily long-haul natural gas pipelines with 4.9 bcfd of transport capacity
KMI to acquire NEP's South Texas assets, STX Midstream
~8.6x 2024 EBITDA; 7.0-7.5x long-term including commercial synergies (a)
Immediately accretive to DCF/sh and strongly free cash flow positive
Increases Net Debt-to-EBITDA by ~0.1x(b)
Anticipate closing in Q1 2024; requires HSR clearance
Intrastate assets complementary to KMI's existing South TX footprint
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Supports strategy to serve growing LNG, industrial, Mexican export, and
power generation demand markets on the U.S. Gulf Coast
Integrates with our existing intrastate/interstate footprint
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Connections with multiple KMI assets including TX Intrastates, TGP and NGPL
Extends our direct connectivity in the lean area of the Eagle Ford basin
。 Opportunity to blend with supply from other KM assets to offer low-nitrogen
natural gas desirable for LNG
Commercial synergies with existing and potential projects
Stable fee-based infrastructure
Fixed fee business; ~75% take-or-pay
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Eagle Ford
Shale
Freer
Sinton
KINDER MORGAN
Corpus Christi LNG
Agua
Dulce
Agua Dulce Hub
KM Pipelines
TX Intrastates
Freeport LNG
TGP
NGPL
Mier-Monterrey
STX Pipelines
NET Mexico
Eagle Ford Midstream
Dos Caminos
Rio Grande LNG
Texas LNG
Other pipelines
STX natural gas pipeline assets:
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NET Mexico (90% interest, operator); 120 miles, 2.2 bcfd capacity; connects
Agua Dulce hub to U.S./MX border
Eagle Ford Midstream ("EFM") (100% interest); 158 miles, 1.1 bcfd capacity;
connects Eagle Ford to Agua Dulce hub
Dos Caminos (50% interest); 75 miles, 1.2 bcfd capacity; delivers gas from
Eagle Ford producers into EFM and TX Intrastates
- Average contract term >8 years; favorable renewal outlook
Primarily supported by investment grade, direct end-use demand customers
including Pemex, electric generation, and LDCs
a) Based on KMI's financial projections.
b) With full-year EBITDA contribution from acquired assets. Based on longer-term funding plans, expect transaction to be neutral to KMI's balance sheet.
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5 other assets (100% interest); 109 miles, 0.5 bcfd capacity; principally
supplying demand-pull customers like power plants and LDCs
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