Kinder Morgan Inc. (NYSE:KMI)

Current Assets

The current assets exhibit a fluctuating trend over the five-year period. Beginning at 2,824 million USD in 2015, there was a moderate increase to 3,229 million USD in 2016. However, a decline followed in 2017, dropping to 2,715 million USD. A significant surge occurred in 2018, with current assets reaching 5,722 million USD, which represents the highest value in the period under review. This was followed by a notable decrease in 2019, reducing to 3,238 million USD. Overall, the data indicates variability, with the peak in 2018 potentially signaling a one-time event or adjustment.

Adjusted Current Assets

The adjusted current assets mirror the pattern observed in current assets, showing a similar trajectory from 2,915 million USD in 2015 to a peak at 5,725 million USD in 2018, then declining to 3,247 million USD in 2019. The alignment between adjusted and unadjusted figures suggests that adjustments made to the current assets were relatively minor or consistent across the periods. The peak in 2018 is also evident here, reinforcing the observation of an exceptional increase during that year.

Total assets

The total assets of the company show a gradual declining trend over the five-year period. Starting from approximately $84.1 billion in 2015, total assets decreased to around $74.2 billion by the end of 2019. This indicates a reduction in the overall asset base by about 12%, signaling potential asset disposals, depreciation, or revaluation effects.

Adjusted total assets

Adjusted total assets also demonstrate a similar pattern of decline across the same period. Beginning at roughly $79.5 billion in 2015, these assets decreased to approximately $73.3 billion by 2019. The adjusted total assets exhibit less volatility than total assets, with a reduction of around 7.8%, suggesting adjustments applied have smoothed some fluctuations seen in the total assets data.

Trends and insights

Both total and adjusted total assets consistently decreased each year, reflecting a persistent contraction in the company’s asset base. The decline in adjusted total assets being less pronounced may indicate that some non-recurring or accounting adjustments are involved in the total assets figures. This persistent downward movement could imply strategic asset management decisions, such as divestments or capital expenditures lower than asset depreciation, possibly aiming to optimize asset utilization or manage liabilities.

Total liabilities

The total liabilities exhibit a consistent downward trend over the five-year period. Starting at $48,701 million in 2015, total liabilities steadily decreased each year, reaching $39,268 million by the end of 2019. This trend indicates a reduction in the company's financial obligations over time, signifying potential improvements in debt management or repayment strategies.

Adjusted total liabilities

Adjusted total liabilities follow a similar declining pattern, beginning at $49,343 million in 2015 and falling to $39,268 million in 2019. The values for adjusted total liabilities are slightly higher than total liabilities each year except in 2019, where they converge. The gradual decrease mirrors that of total liabilities, suggesting consistent improvements in adjusted debt metrics or other adjustments factored into the calculation over the analyzed period.

Overall Insights

The consistent reduction in both total and adjusted total liabilities over the five years indicates a deliberate effort to lower the company's leverage. The convergence of adjusted and total liabilities by the end of 2019 might reflect changes in accounting policies or the elimination of certain adjustments in the reported figures. The downward trajectory of liabilities potentially signals a strengthening financial position, which may have positive implications for the company’s creditworthiness and financial stability.

Total Kinder Morgan, Inc.’s stockholders’ equity

The total stockholders’ equity shows a declining trend from 2015 to 2017, decreasing from 35,119 million US dollars to 33,636 million US dollars. The equity stabilizes in 2018 and 2019, with slight increases to 33,678 million and 33,742 million US dollars, respectively. This suggests a period of reduction in equity followed by stabilization.

Adjusted total stockholders’ equity

The adjusted total stockholders’ equity presents a generally upward trend over the period. Starting at 30,171 million US dollars in 2015, it increases marginally in 2016 to 30,489 million US dollars. A more significant rise is observed in 2017, reaching 33,115 million US dollars, followed by smaller increases in 2018 and 2019, with values of 33,634 million and 34,041 million US dollars, respectively. This reflects a consistent improvement in adjusted equity, contrasting with the fluctuation observed in the total stockholders’ equity.

The financial data demonstrates a clear downward trend in the company's total reported debt over the five-year period from 2015 to 2019. The debt decreased steadily from $43,227 million to $34,392 million, indicating a systematic reduction in liabilities. This deleveraging move suggests an effort to improve the firm's debt profile and potentially enhance financial stability.

In contrast, total stockholders' equity remained relatively stable throughout the same timeframe. Starting at $35,119 million in 2015, the equity slightly contracted to $33,636 million by 2017 but then experienced minor increases, ending at $33,742 million in 2019. This relative consistency in equity implies a balanced approach to maintaining shareholder value despite fluctuations in liabilities.

The total reported capital, defined as the sum of debt and equity, followed a declining trajectory, reducing from $78,346 million in 2015 to $68,134 million in 2019. This decrease reflects the combined impact of lower debt levels and stable equity, suggesting an overall contraction in capital employed over the period.

When considering adjusted figures, adjusted total debt mirrors the downward trend in reported debt, falling from $43,869 million to $34,721 million between 2015 and 2019. However, adjusted total stockholders' equity shows a contrasting pattern compared to the reported equity. It increased from $30,171 million to $34,041 million over the years, signifying positive adjustments that enhance the equity base when accounting for certain modifications not captured in the reported figures.

Correspondingly, adjusted total capital remains relatively flat, with a slight decrease from $74,040 million in 2015 to $68,762 million in 2019. The fluctuations are minor, indicating stability in the company’s adjusted capital structure despite the reductions in adjusted debt and the improvement in adjusted equity.

Overall, the data indicates a strategic focus on debt reduction with steady equity levels, both reported and adjusted, resulting in a gradual contraction of total capital employed. The adjusted figures reveal a more optimistic equity position than the reported numbers suggest, which may reflect adjustments for items such as goodwill impairments or other comprehensive income components.

Total Debt

Consistent decrease over five years, highlighting reduced leverage.

Stockholders’ Equity

Reported equity stable with slight fluctuations; adjusted equity increases over time.

Total Capital

Overall decline in reported capital; adjusted capital remains fairly stable.

Financial Strategy

Emphasis on deleveraging and maintaining or improving equity base to manage capital structure efficiently.

The financial data exhibits a generally positive trend in both net income and adjusted net income over the period from 2015 to 2019. Net income attributable to the entity shows some volatility in the earlier years, with a notable decrease from 708 million US dollars in 2016 to 183 million US dollars in 2017. However, from 2017 onwards, there is a pronounced recovery and growth, culminating in a peak of 2,190 million US dollars in 2019, representing a significant increase relative to the starting point in 2015.

Adjusted net income presents a different pattern, with a marked increase over the entire period. Beginning at 537 million US dollars in 2015, it rises sharply to 1,556 million US dollars in 2016, and continues to grow steadily through to 2,993 million US dollars in 2019. This consistent upward trend suggests improving underlying operational performance when adjustments are taken into account, possibly reflecting better core earnings quality or effective cost and income adjustments.

Net Income Trend

Fluctuates in the initial years with a dip in 2017 followed by a strong recovery and growth through to 2019.

Adjusted Net Income Trend

Demonstrates steady and substantial growth year-over-year, suggesting improved profitability and operational efficiency.

Comparative Insight

The divergence between reported net income and adjusted net income in early years, especially the large jump in adjusted figures in 2016 and the continued growth, indicates the presence of adjustments that significantly impact reported earnings, highlighting potential non-recurring items or accounting adjustments influencing the net income figures.