$1.11 dividend per share; up to $750 million available for share repurchases; $2.5 billion net income attributable to KMI; and 9% growth in DCF per share¹

Kinder Morgan, Inc. (NYSE:KMI) today announced its preliminary 2022 financial projections. "We expect 2021 to be a record year for Kinder Morgan financially, attributable to our outperformance related to winter storm Uri in the first quarter, along with solid project execution across our business units, and two important acquisitions. Our strong performance is also reflected in our debt metric, as we expect to end the year with a Net Debt-to-Adjusted EBITDA ratio of 4.0 times, much better than our budgeted ratio of 4.6 times," said Steve Kean, KMI chief executive officer.

"For 2022, with our market fundamentals remaining robust, a full year of earnings from our Stagecoach acquisition, and the completion of several projects in the fourth quarter of 2021, we project a very strong year," said Steve Kean, KMI chief executive officer. "We expect to generate net income attributable to KMI per share of $1.09 and distributable cash flow (DCF) per share of $2.07. Our growth will continue to be supported by an unparalleled network of interconnected assets, important energy infrastructure expansion opportunities, and new investments in the energy evolution," continued Kean.

Below is a summary of KMI's expectations for 2022:

Generate $1.09 of net income attributable to KMI per share, up $0.33 compared to our current 2021 forecast of $0.76 and up $0.70 compared to a calculation of the 2021 forecast of $0.39 that excludes the largely nonrecurring outperformance in the first quarter related to winter storm Uri. This expected increase is largely due to asset impairments taken in 2021.
Generate $2.07 DCF per share, down 13% with the outperformance due to Uri reflected in the current forecast for 2021 and up 9% without it.
Generate $7.2 billion of Adjusted EBITDA, up 5% from the 2021 forecast excluding the outperformance related to winter storm Uri).
Invest $1.3 billion in expansion projects and contributions to joint ventures, or discretionary capital expenditures, in 2022.
Generate DCF in excess of discretionary capital expenditures and dividends of approximately $870 million.
Return additional value to shareholders in 2022 through an anticipated $1.11 per share dividend (annualized) and opportunistic share repurchases of up to $750 million.
End 2022 with a Net Debt-to-Adjusted EBITDA ratio of 4.3 times, below our long-term target of approximately 4.5 times.
The expected $2.07 of DCF per share and the 4.3 times leverage metric do not reflect the impact of possible opportunistic share repurchases.

Please see "Non-GAAP Financial Measures" below for definitions of DCF, Adjusted EBITDA and Net Debt, and the accompanying tables for reconciliations of 2022 budgeted net income attributable to KMI to budgeted DCF and budgeted Adjusted EBITDA.

KMI's expectations assume average annual prices for West Texas Intermediate (WTI) crude oil and Henry Hub natural gas of $72.50 per barrel and $4.25 per MMBtu, respectively, consistent with forward pricing during the budget process. The vast majority of cash generated by KMI is fee-based and therefore is not directly exposed to commodity prices. The primary area where KMI has commodity price sensitivity is in its CO₂segment, where KMI hedges the majority of its next 12 months of oil production to minimize this sensitivity. For 2022, the company estimates that every $1 per barrel change in the average WTI crude oil price impacts DCF by approximately $8.7 million and each $0.10 per MMBtu change in the price of natural gas impacts DCF by approximately $0.6 million.

The KMI board of directors has preliminarily reviewed the 2022 budget and will take formal action on it at the January board meeting. Management will discuss the budget in detail during the company's annual investor day conference on Jan. 26, 2022, in Houston, Texas. Kinder Morgan remains committed to transparency and will continue to publish its budget on the company's website as presented at the investor day conference. The 2022 budget will be the standard by which KMI measures its performance next year and will be a factor in determining employee compensation.

About Kinder Morgan, Inc.

Kinder Morgan, Inc. (NYSE:KMI) is one of the largest energy infrastructure companies in North America. Access to reliable, affordable energy is a critical component for improving lives around the world. We are committed to providing energy transportation and storage services in a safe, efficient, and environmentally responsible manner for the benefit of people, communities and businesses we serve. We own an interest in or operate approximately 83,000 miles of pipelines and 144 terminals. Our pipelines transport natural gas, renewable fuels, refined petroleum products, crude oil, condensate, CO₂and other products, and our terminals store and handle various commodities including gasoline, diesel fuel, chemicals, ethanol, metals and petroleum coke. Learn more about our renewables initiatives on the low carbon solutions page at www.kindermorgan.com.

Important Information Relating to Forward-Looking Statements

This news release includes forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. Generally the words "expects," "believes," anticipates," "plans," "will," "shall," "estimates," and similar expressions identify forward-looking statements, which are generally not historical in nature. Forward-looking statements in this news release include express or implied statements pertaining to KMI's expected net income attributable to KMI, DCF (in each case in the aggregate and per share), Adjusted EBITDA, expected Net Debt-to-Adjusted EBITDA ratios, and anticipated dividends for 2021 (with and without the impact of winter storm Uri, where applicable) and 2022. Forward-looking statements are subject to risks and uncertainties and are based on the beliefs and assumptions of management, based on information currently available to them. Although KMI believes that these forward-looking statements are based on reasonable assumptions, it can give no assurance as to when or if any such forward-looking statements will materialize nor their ultimate impact on our operations or financial condition. Important factors that could cause actual results to differ materially from those expressed in or implied by these forward-looking statements include: the impacts of the COVID-19 pandemic and the pace and extent of economic recovery; the timing and extent of changes in the supply of and demand for the products we transport and handle; commodity prices; and the other risks and uncertainties described in KMI's reports filed with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year-ended December 31, 2020 (under the headings "Risk Factors" and "Information Regarding Forward-Looking Statements" and elsewhere) and its subsequent reports, which are available through the SEC's EDGAR system at www.sec.gov and on our website at ir.kindermorgan.com. Forward-looking statements speak only as of the date they were made, and except to the extent required by law, KMI undertakes no obligation to update any forward-looking statement because of new information, future events or other factors. Because of these risks and uncertainties, readers should not place undue reliance on these forward-looking statements.

Non-GAAP Financial Measures

The non-generally accepted accounting principles (non-GAAP) financial measures of distributable cash flow (DCF), both in the aggregate and per share; Adjusted EBITDA; and Net Debt are presented herein.

Our non-GAAP measures described further below should not be considered alternatives to GAAP net income attributable to KMI or other GAAP measures and have important limitations as analytical tools. Our computations of these non-GAAP measures may differ from similarly titled measures used by others. You should not consider these non-GAAP measures in isolation or as substitutes for an analysis of our results as reported under GAAP. Management compensates for the limitations of these non-GAAP measures by reviewing our comparable GAAP measures, understanding the differences between the measures and taking this information into account in its analysis and its decision-making processes.

Certain Items, as adjustments used to calculate our non-GAAP financial measures, are items that are required by GAAP to be reflected in net income attributable to KMI, but typically either (1) do not have a cash impact (for example, asset impairments), or (2) by their nature are separately identifiable from our normal business operations and in our view are likely to occur only sporadically (for example, certain legal settlements, enactment of new tax legislation and casualty losses). We also include adjustments related to joint ventures (see "Amounts from Joint Ventures" below).

DCF is calculated by adjusting net income attributable to KMI for Certain Items, DD&A, amortization of excess cost of equity investments, income tax expense, cash taxes, sustaining capital expenditures and other items. We also include amounts from joint ventures for income taxes, DD&A and sustaining capital expenditures (see "Amounts from Joint Ventures" below). DCF is a significant performance measure useful to management and external users of our financial statements in evaluating our performance and in measuring and estimating the ability of our assets to generate cash earnings after servicing our debt, paying cash taxes and expending sustaining capital, that could be used for discretionary purposes such as dividends, stock repurchases, retirement of debt, or expansion capital expenditures. DCF should not be used as an alternative to net cash provided by operating activities computed under GAAP. We believe the GAAP measure most directly comparable to DCF is net income attributable to KMI. DCF per share is DCF divided by average outstanding shares, including restricted stock awards that participate in dividends.

Adjusted EBITDA is calculated by adjusting net income attributable to KMI before interest expense, income taxes, DD&A, and amortization of excess cost of equity investments (EBITDA) for Certain Items. We also include amounts from joint ventures for income taxes and DD&A (see "Amounts from Joint Ventures" below). Adjusted EBITDA is used by management and external users, in conjunction with our Net Debt (as described further below), to evaluate certain leverage metrics. Therefore, we believe Adjusted EBITDA is useful to investors. We believe the GAAP measure most directly comparable to Adjusted EBITDA is net income attributable to KMI.

Net Debt is calculated by subtracting from debt (1) cash and cash equivalents, (2) debt fair value adjustments, and (3) the foreign exchange impact on Euro-denominated bonds for which we have entered into currency swaps. Net Debt is a non-GAAP financial measure that management believes is useful to investors and other users of our financial information in evaluating our leverage. We believe the most comparable measure to Net Debt is debt net of cash and cash equivalents.

Amounts from Joint Ventures - Certain Items, DCF and Adjusted EBITDA reflect amounts from unconsolidated joint ventures (JVs) and consolidated JVs utilizing the same recognition and measurement methods used to record "Earnings from equity investments" and "Noncontrolling interests," respectively. The calculations of DCF and Adjusted EBITDA related to our unconsolidated and consolidated JVs include the same items (DD&A and income tax expense, and for DCF only, also cash taxes and sustaining capital expenditures) with respect to the JVs as those included in the calculations of DCF and Adjusted EBITDA for our wholly-owned consolidated subsidiaries. Although these amounts related to our unconsolidated JVs are included in the calculations of DCF and Adjusted EBITDA, such inclusion should not be understood to imply that we have control over the operations and resulting revenues, expenses or cash flows of such unconsolidated JVs.

Table 1
Kinder Morgan, Inc. and Subsidiaries
Reconciliation of Projected Net Income Attributable to Kinder Morgan, Inc. to Projected DCF
(In billions, unaudited)

	2021 Forecast			2021 Forecast Excluding Uri			2022 Projected Guidance
Net income attributable to Kinder Morgan, Inc. (GAAP)	$	1.7		$	0.8		$	2.5
Total Certain Items (1)	1.2				1.2		—
DD&A and amortization of excess cost of equity investments for DCF (2)	2.6				2.6		2.4
Income tax expense for DCF (2)(3)	0.9				0.7		0.8
Cash taxes (2)	(0.1		)		(0.1	)	(0.1		)
Sustaining capital expenditures (2)	(0.9		)		(0.9	)	(0.9		)
Other items (1)	—				—		—
DCF	$	5.4		$	4.3		$	4.7

Table 2
Kinder Morgan, Inc. and Subsidiaries
Reconciliation of Projected Net Income Attributable to Kinder Morgan, Inc. to Projected Adjusted EBITDA
(In billions, unaudited)

	2021 Forecast		2021 Forecast Excluding Uri		2022 Projected Guidance
Net income attributable to Kinder Morgan, Inc. (GAAP)	$	1.7	$	0.8	$	2.5
Total Certain Items (1)	1.2			1.2	—
DD&A and amortization of excess cost of equity investments	2.2			2.2	2.2
Income tax expense (3)	0.9			0.7	0.7
JV DD&A and income tax expense (2)	0.4			0.4	0.3
Interest, net (3)	1.5			1.5	1.5
Adjusted EBITDA	$	7.9	$	6.8	$	7.2

Notes
(1)		Aggregate adjustments for Other items (such as non-cash pension expense and non-cash compensation associated with our restricted stock program and 2022 Total Certain Items are currently estimated to be less than $100 million.
(2)		Includes or represents DD&A, income tax expense, cash taxes and/or sustaining capital expenditures (as applicable for each item) from JVs.
(3)		Amounts are adjusted for Certain Items.

¹Compared to the 2021 forecast that excludes the largely nonrecurring outperformance related to winter storm Uri.

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Kinder Morgan Announces 2022 Financial Expectations