Name: Kinder Morgan Inc. (NYSE:KMI) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Kinder Morgan Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Net income	2,239)	1,919)	223)	721)	208)
Depreciation, depletion and amortization	2,411)	2,297)	2,261)	2,209)	2,309)
Deferred income taxes	717)	405)	2,073)	1,087)	692)
Amortization of excess cost of equity investments	83)	95)	61)	59)	51)
Change in fair market value of derivative contracts	(22)	77)	40)	—)	—)
Loss on impairment of goodwill	—)	—)	—)	—)	1,150)
(Gain) loss on divestitures and impairments, net	(942)	167)	13)	387)	919)
(Earnings) losses from equity investments	(101)	(617)	(428)	113)	(384)
Adjustments to reconcile net income to net cash provided by operating activities	2,146)	2,424)	4,020)	3,855)	4,737)
Distributions of equity investment earnings	590)	499)	426)	431)	391)
Accounts receivable, net	105)	(50)	(78)	(107)	382)
Income tax receivable	—)	137)	7)	(148)	195)
Inventories	4)	15)	(90)	49)	34)
Other current assets	93)	(16)	(25)	(81)	113)
Accounts payable	(198)	21)	73)	144)	(156)
Accrued interest, net of interest rate swaps	(43)	(22)	10)	(18)	37)
Accrued taxes	(142)	241)	(37)	—)	—)
Accrued contingencies and other current liabilities	(69)	73)	138)	71)	(129)
Changes in components of working capital, net of the effects of acquisitions and dispositions	(250)	399)	(2)	(90)	476)
Other, net	23)	(198)	(66)	(130)	(509)
Net cash provided by operating activities	4,748)	5,043)	4,601)	4,787)	5,303)
Proceeds from the KML and U.S. Cochin Sale, net of cash disposed	1,527)	—)	—)	—)	—)
Proceeds from the TMPL Sale, net of cash disposed and working capital adjustments	(28)	2,998)	—)	—)	—)
Acquisitions of assets and investments	(79)	(39)	(4)	(333)	(2,079)
Capital expenditures	(2,270)	(2,904)	(3,188)	(2,882)	(3,896)
Proceeds from sale of equity interests in subsidiaries, net	—)	—)	—)	1,401)	—)
Sales of property, plant and equipment, investments, and other net assets, net of removal costs	110)	104)	118)	330)	39)
Contributions to investments	(1,299)	(433)	(684)	(408)	(96)
Distributions from equity investments in excess of cumulative earnings	333)	237)	374)	231)	228)
Loans to related parties	(31)	(31)	—)	—)	—)
Other, net	23)	—)	22)	(44)	98)
Net cash used in investing activities	(1,714)	(68)	(3,362)	(1,705)	(5,706)
Issuances of debt	8,036)	14,751)	8,868)	8,629)	14,316)
Payments of debt	(11,224)	(14,591)	(11,064)	(10,060)	(15,116)
Debt issue costs	(10)	(42)	(70)	(19)	(24)
Issuances of common shares	—)	—)	—)	—)	3,870)
Issuance of mandatory convertible preferred stock	—)	—)	—)	—)	1,541)
Cash dividends, common shares	(2,163)	(1,618)	(1,120)	(1,118)	(4,224)
Cash dividends, preferred shares	—)	(156)	(156)	(154)	—)
Repurchases of common shares	(2)	(273)	(250)	—)	(12)
Merger Transactions costs	—)	—)	—)	—)	(2)
Contributions from investment partner	148)	181)	485)	—)	—)
Contributions from noncontrolling interests, net proceeds from KML IPO	—)	—)	1,245)	—)	—)
Contributions from noncontrolling interests, net proceeds from KML preferred share issuances	—)	—)	420)	—)	—)
Contributions from noncontrolling interests, other	3)	19)	12)	117)	11)
Distributions to investment partner	(11)	—)	—)	—)	—)
Distribution to noncontrolling interests, KML distribution of the TMPL Sale proceeds	(879)	—)	—)	—)	—)
Distributions to noncontrolling interests, other	(55)	(78)	(42)	(24)	(34)
Other, net	(28)	(17)	(9)	—)	1)
Net cash provided by (used in) financing activities	(6,185)	(1,824)	(1,681)	(2,629)	327)
Effect of exchange rate changes on cash, cash equivalents and restricted deposits	29)	(146)	22)	2)	(10)
Net increase (decrease) in cash, cash equivalents and restricted deposits	(3,122)	3,005)	(420)	455)	(86)
Cash, cash equivalents, and restricted deposits, beginning of period	3,331)	326)	684)	229)	315)
Cash, cash equivalents, and restricted deposits, end of period	209)	3,331)	264)	684)	229)

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).

The cash flow profile from 2015 to 2019 demonstrates a transition from an aggressive investment and capital-raising phase toward a period characterized by capital discipline, strategic asset divestitures, and increased shareholder distributions.

Operating Cash Flow Trends: Net cash provided by operating activities remained relatively stable, fluctuating between $4.6 billion and $5.3 billion annually. While net income exhibited significant volatility—rising from $208 million in 2015 to $2.24 billion in 2019—the underlying cash generation was consistently supported by high non-cash charges. Depreciation, depletion, and amortization remained a primary driver, consistently contributing between $2.2 billion and $2.4 billion annually, reflecting the capital-intensive nature of the asset base.
Investing Activities and Capital Allocation: A clear downward trend in capital expenditures is observed, decreasing from $3.9 billion in 2015 to $2.27 billion in 2019. This reduction suggests a shift in strategy from intensive growth to a more sustainable maintenance or optimization phase. This transition was complemented by strategic divestitures, most notably the TMPL sale in 2018, which generated nearly $3 billion, and the KML and U.S. Cochin sale in 2019, which contributed $1.5 billion. These liquidations helped offset the cash outflows associated with contributions to investments, which peaked at $1.3 billion in 2019.
Financing and Capital Structure: Financing activities were characterized by heavy debt recycling and an escalation in shareholder returns. Debt issuances and payments remained high throughout the period, with a peak issuance of $14.75 billion in 2018. Concurrently, cash dividends on common shares increased substantially, rising from $1.12 billion in 2016 to $2.16 billion in 2019. The net cash from financing activities turned consistently negative after 2015, indicating that the company shifted from relying on external capital to utilizing internal cash flows and asset sales to fund debt repayments and dividends.

Overall, the financial data indicates a strong operational capacity to generate cash, which has been redirected from heavy capital expenditures toward debt reduction and increased dividend payments. The strategic sale of assets in the latter part of the period provided additional liquidity to support this shift in capital allocation.

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