Debt to Equity
since 2010
Calculation
Kinder Morgan Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Long-term debt, including current portion1 | ÷ | Total Kinder Morgan, Inc.’s stockholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2019 | 1.02 | = | 34,392) | ÷ | 33,742) |
| Dec 31, 2018 | 1.11 | = | 37,324) | ÷ | 33,678) |
| Dec 31, 2017 | 1.13 | = | 37,843) | ÷ | 33,636) |
| Dec 31, 2016 | 1.16 | = | 40,050) | ÷ | 34,431) |
| Dec 31, 2015 | 1.23 | = | 43,227) | ÷ | 35,119) |
| Dec 31, 2014 | 1.26 | = | 42,963) | ÷ | 34,076) |
| Dec 31, 2013 | 2.76 | = | 36,193) | ÷ | 13,093) |
| Dec 31, 2012 | 2.48 | = | 34,401) | ÷ | 13,865) |
| Dec 31, 2011 | 5.20 | = | 17,255) | ÷ | 3,321) |
| Dec 31, 2010 | 4.60 | = | 15,826) | ÷ | 3,439) |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
1 US$ in millions
The financial trajectory between 2010 and 2019 reveals a systemic shift in the capital structure, characterized by a transition from high financial leverage to a more balanced debt-to-equity position.
- Debt to Equity Ratio Trends
- A substantial downward trend is observed in the debt-to-equity ratio over the analyzed period. The ratio reached a peak of 5.20 in 2011 before undergoing a significant contraction. By December 31, 2019, the ratio had declined to 1.02, indicating a move toward a capital structure where debt and equity are nearly equal.
- Long-term Debt Evolution
- Long-term debt experienced a period of aggressive growth from 2010 to 2014, rising from 15,826 million to a peak of 42,963 million. Following this peak, a consistent deleveraging phase occurred, with debt levels decreasing annually to 34,392 million by the end of 2019.
- Stockholders' Equity Expansion
- Equity levels remained relatively flat between 2010 and 2011 but experienced two primary surges. The first occurred in 2012, with equity increasing to 13,865 million, followed by a second significant increase in 2014 to 34,076 million. From 2014 through 2019, equity remained stable, fluctuating within a narrow range between 33,636 million and 35,119 million.
- Leverage Correlation and Insights
- The most dramatic reduction in the debt-to-equity ratio occurred between 2011 and 2014. Although long-term debt increased during this window, the growth in stockholders' equity was far more aggressive, effectively offsetting the increase in liabilities. The subsequent period from 2015 to 2019 saw a further refinement of the ratio driven by steady debt reduction while equity remained constant, resulting in a strengthened solvency profile.
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Comparison to Competitors
Kinder Morgan Inc., debt to equity, long-term trends, comparison to competitors
| Kinder Morgan Inc. | Chevron Corp. | ConocoPhillips | ExxonMobil Holdings Corp. | |
|---|---|---|---|---|
| Dec 31, 2019 | 1.02 | 0.19 | 0.43 | 0.24 |
| Dec 31, 2018 | 1.11 | 0.22 | 0.47 | 0.20 |
| Dec 31, 2017 | 1.13 | 0.26 | 0.64 | 0.23 |
| Dec 31, 2016 | 1.16 | 0.32 | 0.78 | 0.26 |
| Dec 31, 2015 | 1.23 | 0.25 | 0.63 | 0.23 |
| Dec 31, 2014 | 1.26 | 0.18 | 0.43 | 0.17 |
| Dec 31, 2013 | 2.76 | 0.14 | 0.42 | 0.13 |
| Dec 31, 2012 | 2.48 | 0.09 | 0.45 | 0.07 |
| Dec 31, 2011 | 5.20 | 0.08 | 0.35 | 0.11 |
| Dec 31, 2010 | 4.60 | 0.11 | 0.34 | 0.10 |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
Comparison to Sector (Oil, Gas & Consumable Fuels)
Kinder Morgan Inc., debt to equity, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Kinder Morgan Inc. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2019 | 1.02 | 0.24 |
| Dec 31, 2018 | 1.11 | 0.23 |
| Dec 31, 2017 | 1.13 | 0.28 |
| Dec 31, 2016 | 1.16 | 0.33 |
| Dec 31, 2015 | 1.23 | 0.28 |
| Dec 31, 2014 | 1.26 | 0.21 |
| Dec 31, 2013 | 2.76 | 0.17 |
| Dec 31, 2012 | 2.48 | 0.13 |
| Dec 31, 2011 | 5.20 | 0.15 |
| Dec 31, 2010 | 4.60 | 0.16 |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).
Comparison to Industry (Energy)
Kinder Morgan Inc., debt to equity, long-term trends, comparison to industry (energy)
| Kinder Morgan Inc. | Energy | |
|---|---|---|
| Dec 31, 2019 | 1.02 | 0.26 |
| Dec 31, 2018 | 1.11 | 0.25 |
| Dec 31, 2017 | 1.13 | 0.30 |
| Dec 31, 2016 | 1.16 | 0.35 |
| Dec 31, 2015 | 1.23 | 0.30 |
| Dec 31, 2014 | 1.26 | 0.22 |
| Dec 31, 2013 | 2.76 | 0.19 |
| Dec 31, 2012 | 2.48 | 0.15 |
| Dec 31, 2011 | 5.20 | 0.16 |
| Dec 31, 2010 | 4.60 | 0.17 |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31).