KINDER MORGAN, INC. Quarterly Report for Q3 Ended Sep 30, 2016

Summary

Kinder Morgan, Inc. (KMI) reported a net loss of $183 million for the three months ended September 30, 2016, a significant decline from a net income of $183 million in the same period of the prior year. This was driven by substantial losses on impairments and divestitures, particularly related to equity investments and pipeline projects. Revenues also saw a decrease, declining to $3.33 billion from $3.71 billion year-over-year. Despite the quarterly loss, the company's financial performance for the nine months ended September 30, 2016, showed a net income of $506 million, down from $944 million in the prior year, reflecting the impact of these impairment charges. KMI's balance sheet shows a reduction in total assets and total liabilities compared to the end of 2015, with a notable decrease in long-term debt. The company's liquidity remains supported by cash flows from operations and its revolving credit facility, and it completed the sale of a 50% interest in its SNG natural gas pipeline system, using the proceeds to reduce debt.

Key Highlights

• 1Net loss of $183 million for Q3 2016, compared to net income of $183 million in Q3 2015.
• 2Total revenues decreased to $3.33 billion in Q3 2016 from $3.71 billion in Q3 2015.
• 3Significant non-cash pre-tax losses on impairments and divestitures amounted to $76 million in Q3 2016 and $307 million for the nine months ended September 30, 2016.
• 4Sold a 50% interest in the SNG natural gas pipeline system for $1.4 billion, which was used to reduce outstanding debt.
• 5Total assets decreased to $81.6 billion as of September 30, 2016, from $84.1 billion as of December 31, 2015.
• 6Long-term debt decreased to $38.5 billion as of September 30, 2016, from $42.4 billion as of December 31, 2015.
• 7Cash flows from operating activities remained strong, with $3.5 billion for the nine months ended September 30, 2016.

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