2022 Budget Sensitivities and Financial Projections
2021 Acquisition of Kinetrex Energy Provides Multi-Year Head Start
to Participate in Emerging RNG Market
ASSETS & VALUATION
2 small-scale LNG facilities - 2 MMdth capacity
KINDER MORGAN
Michigan
U.S. RNG PRODUCTION bcfd
Prairie View
+
3.5
1 operational landfill-RNG facility with ~0.4 bcf(a)
capacity
Volumes are expected to
Illinois
Liberty
3.0
Ohio
3 landfill-RNG facilities operational by 2022 end with
total annual capacity of 3.5 bcf
grow and premium values
could drive significant
Twin Bridges
operating margin
Indy HBTU
2.5
Indiana
RNG offtake is contracted with high quality
counterparty
Expect <6x 2023 Adj. EBITDA based on $310mm
purchase price and $146mm development capex
Conservative RINS assumptions vs current spot RINS
prices
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
Operational RNG Plants
2.0
RNG Plants Under Construction
LNG Production & Fueling Facilities
1.5
Note: See Non-GAAP Financial Measures & Reconciliations.
Sources: U.S. RNG production per Wood Mac North America Gas Market Strategic Planning Outlook, March 2022.
a) KM share. 50% interest in Indy HBTU. 3 facilities in development are 100% owned.
1.0
0.5
2031
2033
2035
2037
2039
2041
2043
2045
2047
2049
Landfill facilities are expected to drive RNG production growth
Hundreds of landfills across the U.S. are candidates for RNG
<100 sites operational or in development today
2021
2023
2025
2027
2029
34View entire presentation