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.

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).

Net Income: Net income exhibited significant volatility over the period. Following a moderate level in 2015 and 2017, there was a substantial increase in 2018 and 2019, peaking at $2,239 million in 2019, indicating improved profitability in the latter years.
Depreciation, Depletion, and Amortization (DDA): DDA remained relatively stable with a slight upward trend, ranging from approximately $2,209 million in 2016 to $2,411 million in 2019. This stability suggests consistent asset usage and amortization policies across the periods.
Deferred Income Taxes: Deferred income taxes fluctuated considerably, peaking in 2017 at $2,073 million before declining sharply in 2018. The fluctuation may reflect changes in tax liabilities or adjustments in deferred tax assets and liabilities.
Amortization of Excess Cost of Equity Investments: This item displayed a gradual increase until 2018, followed by a decrease in 2019, which may be connected to changes in investment valuations or acquisition costs amortization schedules.
Derivative Contracts and Impairments: The fair market value changes of derivative contracts first appeared in 2017 with gains, but then turned negative in 2019. Loss on impairment of goodwill was significant only in 2015 with $1,150 million and was absent thereafter. Gains/losses on divestitures displayed a general declining trend culminating in a significant gain of $-942 million in 2019, indicating notable asset sales or restructuring activities.
Equity Investments Earnings/Losses: Earnings from equity investments were volatile, with negative figures in most years except for 2016. This inconsistency may indicate fluctuating performance of equity investments or changes in the underlying entities.
Operating Activities: Adjustments reconciling net income to operating cash flow declined from $4,737 million in 2015 to $2,146 million in 2019, suggesting changes in non-cash items or timing differences. Net cash provided by operating activities remained relatively stable between $4,601 million and $5,303 million, signaling steady cash generation capability.
Working Capital Components: Changes in working capital components showed irregular patterns with a notably large positive change in 2018 ($399 million) and a significant decline in 2019 (-$250 million), pointing to fluctuations in current assets and liabilities management.
Investing Activities: Net cash used in investing activities was volatile. After a large outflow in 2015 (-$5,706 million), it sharply declined to only -$68 million in 2018 before increasing again to -$1,714 million in 2019. Capital expenditures decreased steadily from -$3,896 million in 2015 to -$2,270 million in 2019, suggesting reduced investment in fixed assets. Proceeds from asset sales and divestitures varied, with major sales in 2018 and 2019, indicated by proceeds from asset sales and dispositions.
Financing Activities: Net cash from financing activities moved from a small positive in 2015 to large negative values, particularly -$6,185 million in 2019. Issuances and repayments of debt were substantial each year, with repayments exceeding issuances in most years except 2018. The company also initiated equity issuances early in the period but did not continue afterward. Dividends paid increased over time, reflecting growing returns to shareholders. Share repurchases were significant in 2017 and 2018 but minimal in 2019.
Cash and Cash Equivalents: Cash balances fluctuated notably, with a low of $209 million at the end of 2019 and a high of $3,331 million at the end of 2018. The net change in cash followed a similar pattern, with a major increase in 2018 (+$3,005 million) and a substantial decrease in 2019 (-$3,122 million), indicating significant cash flow volatility in those periods.
Overall Observations: The data reveals a complex financial picture with improving profitability in recent years accompanied by fluctuating cash flows and working capital components. Capital expenditures declined steadily, showing less aggressive investment, while financing activity indicates active management of debt and shareholder returns. The company appears to have engaged in significant asset sales and restructuring, reflected in gains/losses and investing cash flows. Cash management showed high volatility, especially influenced by large investing and financing transactions.

Download chart

Kinder Morgan Inc. (NYSE:KMI)

Cash Flow Statement