Barclays Investment Banking Pitch Book
KMR Has-Gets Analysis
KMR Status Quo (Value)
Expected Dividend
Assumed Yield
Implied Share Price
KMR Pro Forma (Value)
KMR Public Shares Outstanding
KMI Share Issued
Implied Value Upit (Pre-Sax)
Implied% Uplit (Pre-tax)
Implied Value Upl (After-tax)
Implied% Uplit (After tax)
Dividend Comparison
KMR Status Quo Dividend
KMR
Pro Forma Dividend to KMR Shareholders
Accretion/(Dilution)-S
Accretion/(Dilution) -%
2015
Adjusted Exchange Ratio
KMI Pro Forma Dividend
Assumed KMI Yield
Implied Value of KMI Stock Received
Cash Portion Received
Total Value to KMR Shareholders
Estimated Shareholder Taxes
Total Value to KMR Shareholders (After-Taxes) $110.44
$5.83
7.24%
$90.47
$29.97
37%
$29.97
37%
$5.83
2016
2017
118.5
294.4
2.4849
$2.00
4.50%
118.5 118.5
294.4 294.4
2.4849 2.4849
$2.66 $2.93
4.50% 4.50%
$110.44 $121.48 $133.63 $147.00 $161.70
$0.00 $0.00 $0.00
$0.00 $0.00
$110.44 $121.48 $133.63 $147.00 $161.70 $177.86
$121.48 $133.63 $147.00 $161.70 $177.86
$36.18 $44.47 $50.93 $63.90 $77.16
42% 50%
53%
65%
77%
$36.18 $44.47 $50.93 $63.90 $77.16
42%
50%
53%
65%
77%
26
1185 118.5
2944 294.4
2.4849 2.4849
$2.20 $2.42
4.50% 4.50%
$6.18
96.18
$6.96
$7.09
$7.30
$6.46
7.24% 7.24% 7.24% 7.24% 7.24%
$85.30 $89.17 $96.07 $97.79 $100.71
$6.46
$4.97 $5.47 $8.01
($0.86) (50.71) ($0.45)
(14.8%) (11.5%)
2018
Source: Assumptions per KMI management
1. Calculated as 2014E dividend guidance of $5.58 for KMR divided by current share prices of $77.02 for KMR.
2 Calculated by dividing the number of KMI shares issued to shareholders by the number of shares outstanding
3. No shareholder tax.
BARCLAYS
2019
$6.96
2020
$7.09
$6.61 $7.28
($0.35) $0.19
(5.0%) 2.7%
118.5
294.4
24849
$3.22
4.50%
$177.86
$0.00
$7.30
$8.00
$0.71
9.7%
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