Name: Kinder Morgan Inc. (NYSE:KMI) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Kinder Morgan Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Current portion of debt	2,477)	3,388)	2,828)	2,696)	821)
Accounts payable	914)	1,337)	1,340)	1,257)	1,324)
Distributions payable to KML noncontrolling interests	—)	876)	—)	—)	—)
Accrued interest	548)	579)	621)	625)	695)
Accrued taxes	364)	483)	256)	—)	—)
Other current liabilities	797)	894)	1,136)	1,346)	1,225)
Current liabilities	5,100)	7,557)	6,181)	5,924)	4,065)
Outstanding	30,883)	33,205)	34,088)	36,205)	40,732)
Debt fair value adjustments	1,032)	731)	927)	1,149)	1,674)
Long-term debt, excluding current portion	31,915)	33,936)	35,015)	37,354)	42,406)
Other long-term liabilities and deferred credits	2,253)	2,176)	2,735)	2,225)	2,230)
Long-term liabilities and deferred credits	34,168)	36,112)	37,750)	39,579)	44,636)
Total liabilities	39,268)	43,669)	43,931)	45,503)	48,701)
Redeemable noncontrolling interest	803)	666)	—)	—)	—)
Preferred stock, $0.01 par value, 9.75% Series A Mandatory Convertible, $1,000 per share liquidation preference	—)	—)	—)	—)	—)
Class P shares, $0.01 par value	23)	23)	22)	22)	22)
Additional paid-in capital	41,745)	41,701)	41,909)	41,739)	41,661)
Retained deficit	(7,693)	(7,716)	(7,754)	(6,669)	(6,103)
Accumulated other comprehensive loss	(333)	(330)	(541)	(661)	(461)
Total Kinder Morgan, Inc.’s stockholders’ equity	33,742)	33,678)	33,636)	34,431)	35,119)
Noncontrolling interests	344)	853)	1,488)	371)	284)
Total stockholders’ equity	34,086)	34,531)	35,124)	34,802)	35,403)
Total liabilities, redeemable noncontrolling interest and stockholders’ equity	74,157)	78,866)	79,055)	80,305)	84,104)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

A comprehensive analysis of the balance sheet from 2015 to 2019 reveals a consistent trend of deleveraging and a reduction in total liabilities. Total liabilities decreased from 48,701 million US dollars in 2015 to 39,268 million US dollars in 2019, representing a total reduction of approximately 19.4% over the five-year period.

Debt Profile and Liquidity Trends: Long-term debt, excluding the current portion, exhibited a steady decline from 42,406 million US dollars in 2015 to 31,915 million US dollars in 2019. This downward trajectory indicates a systematic reduction in long-term borrowing. Conversely, the current portion of debt showed significant volatility, increasing from 821 million US dollars in 2015 to a peak of 3,388 million US dollars in 2018, before declining to 2,477 million US dollars in 2019. This pattern suggests a shift in debt maturity profiles and the transition of long-term obligations into current liabilities prior to settlement.
Liability Composition: Current liabilities peaked in 2018 at 7,557 million US dollars before dropping sharply to 5,100 million US dollars in 2019. This decrease was primarily driven by the reduction in the current portion of debt and a decline in accounts payable, which fell from a high of 1,340 million US dollars in 2017 to 914 million US dollars in 2019. Other long-term liabilities remained relatively stable, fluctuating between 2,176 million and 2,735 million US dollars.
Stockholders' Equity Analysis: Total stockholders' equity remained remarkably stable throughout the period, starting at 35,403 million US dollars in 2015 and ending at 34,086 million US dollars in 2019. This stability is attributed to the consistent level of additional paid-in capital, which hovered around 41.7 billion US dollars. However, a persistent retained deficit is observed, which expanded from -6,103 million US dollars in 2015 to a peak deficit of -7,754 million US dollars in 2017, before stabilizing near -7,693 million US dollars by 2019.
Total Capitalization and Solvency: The total balance sheet size, represented by total liabilities, redeemable noncontrolling interest, and stockholders' equity, contracted from 84,104 million US dollars in 2015 to 74,157 million US dollars in 2019. The simultaneous reduction in total liabilities alongside stable equity levels indicates an improvement in the company's solvency position and a reduction in overall financial leverage.

The data suggests a strategic focus on debt reduction and balance sheet optimization. While the retained deficit remains a significant negative component of equity, the consistent decrease in long-term debt and the overall contraction of total liabilities point toward a strengthened financial structure and reduced long-term debt obligations.

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