Barclays Investment Banking Pitch Book
KMI
Projected 2014E-2016E Cash Distribution CAGRS
Available Equity Analyst Estimates
Deutsche Bank Research (07/17/2014)
RBC Capital Markets (07/21/2014)
Credit Suisse (07/17/2014)
Barclays (07/17/2014)
Morgan Stanley (07/17/2014)
Wells Fargo (07/17/2014)
Tudor Pickering Holt & Co. (07/01/2014)
KMI Management"
Equity Analyst Median
Assumed Yield
Indicative Growth Range
PF KMI Cost of Equity Reference Range
Equity / (Debt+ Equity) (%)
Equity Component
2014E-2016E
Distribution CAGR
PF KMI After-Tax Cost of Debt Reference Range
Debt / (Debt +Equity) (%)
Debt Component
PF KMI Cost of Capital Reference Range
BARCLAYS
Assumed Yield
10.4% Indicative Growth Range
8.4%
8.4%
7.7%
Status Quo KMI
5.1%
8.0%
SQ KMI Cost
st of Equity Reference Range
Low
3.75%
NA
PF KMI Cost of Capital Reference Range
Assumed Yield
3.75%
50%
1.88%
2.62%
50%
1.31%
3.18%
1. 2013-2016 CAGR as stated by KMI management in investor presentation
2 Assumed yield per historical trading levels
3. Based on KMr's management's historical assumptions around funding new growth projects.
Cost of Equity Reference Range
Assumeed Yield
16
....
High
4.50%
NA
4.50%
50%
2.25%
2.62%
50%
1.31%
Low
4.50%
NA
3.56%
4.50%
.
High
NA
5.25%
13.75%
50%
6.88%
2.62%
50%
1.31%
1
8.18%
Cost of Capital
Assumed Yisid Indicative Growth
Low
4.50%
7.2%
11.69%
Assumed Yield+ Indicative Growth
Low
3.75%
10.0%
High
4.50%
10.0%
14.50%
50%
7.25%
2.62%
50%
1.31%
8.56%
High
5.25%
92%
14.44%View entire presentation