Barclays Investment Banking Pitch Book
Preliminary Assumptions (Cont'd)
Assumptions (¹)
• Assumes 2015-2023 KMP/EPB debt maturities are refinanced at KMI
• KMI targets a $2.00 2015 dividend and a 10% growth rate through 2020 (excess cash used to repay debt)
• KMI funds growth capex with $4.0 billion in aggregate equity issuance from 2016-2017 and funds the remaining growth
capex with debt, subsequently 2017 equity issuance reduced by -$260 million of monies not paid out due to warrant dilution
▪ Debt issuance assumes 4.75% interest rate (rate steps up to 5.75% over time)
• Assumes $20 million in savings of public company expenses due to consolidation
• Assumes pro forma KMI warrant conversion into -68 million KMI shares calculated assuming 298 million warrants
outstanding with a strike price of $40.00 and KMI share price at conversion of $51.87 (4.5% yield)
1. Source Management estimates.
BARCLAYS
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