Kinder Morgan Inc., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Net income attributable to Kinder Morgan, Inc.	2,190)	1,609)	183)	708)	253)
Net (income) loss attributable to noncontrolling interests	49)	310)	40)	13)	(45)
Net noncash charges	2,759)	2,725)	4,380)	4,156)	4,619)
Changes in components of working capital, net of the effects of acquisitions and dispositions	(250)	399)	(2)	(90)	476)
Net cash provided by operating activities	4,748)	5,043)	4,601)	4,787)	5,303)
Cash paid during the period for interest, net of capitalized interest, net of tax¹	1,315)	1,439)	1,255)	900)	538)
Capital expenditures	(2,270)	(2,904)	(3,188)	(2,882)	(3,896)
Free cash flow to the firm (FCFF)	3,793)	3,578)	2,668)	2,805)	1,945)

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).

¹ See details »

Download chart

Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Kinder Morgan Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Kinder Morgan Inc. FCFF increased from 2017 to 2018 and from 2018 to 2019.

Kinder Morgan Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Effective Income Tax Rate (EITR)
EITR¹	29.30%	23.40%	32.30%	56.10%	72.90%
Interest Paid, Net of Tax
Cash paid during the period for interest, net of capitalized interest, before tax	1,860)	1,879)	1,854)	2,050)	1,985)
Less: Cash paid during the period for interest, net of capitalized interest, tax²	545)	440)	599)	1,150)	1,447)
Cash paid during the period for interest, net of capitalized interest, net of tax	1,315)	1,439)	1,255)	900)	538)

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).

¹ See details »

² 2019 Calculation
Cash paid during the period for interest, net of capitalized interest, tax = Cash paid during the period for interest, net of capitalized interest × EITR
= 1,860 × 29.30% = 545

Download chart

Kinder Morgan Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	69,130)
Free cash flow to the firm (FCFF)	3,793)
Valuation Ratio
EV/FCFF	18.23
Benchmarks
EV/FCFF, Competitors¹
Chevron Corp.	15.53
ConocoPhillips	17.70
Exxon Mobil Corp.	14.33
Marathon Petroleum Corp.	7.16
Occidental Petroleum Corp.	12.39
Valero Energy Corp.	7.37
EV/FCFF, Sector
Oil, Gas & Consumable Fuels	36.31
EV/FCFF, Industry
Energy	36.09

Based on: 10-K (reporting date: 2019-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Kinder Morgan Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	83,003)	75,637)	77,038)	89,819)	78,079)
Free cash flow to the firm (FCFF)²	3,793)	3,578)	2,668)	2,805)	1,945)
Valuation Ratio
EV/FCFF³	21.88	21.14	28.87	32.02	40.14
Benchmarks
EV/FCFF, Competitors⁴
Chevron Corp.	16.67	—	—	—	—
ConocoPhillips	13.21	—	—	—	—
Exxon Mobil Corp.	44.38	—	—	—	—
Marathon Petroleum Corp.	13.14	—	—	—	—
Occidental Petroleum Corp.	45.65	—	—	—	—
Valero Energy Corp.	9.96	—	—	—	—
EV/FCFF, Sector
Oil, Gas & Consumable Fuels	21.17	—	—	—	—
EV/FCFF, Industry
Energy	21.44	—	—	—	—

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).

¹ See details »

² See details »

³ 2019 Calculation
EV/FCFF = EV ÷ FCFF
= 83,003 ÷ 3,793 = 21.88

⁴ Click competitor name to see calculations.

Download chart

Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Kinder Morgan Inc. EV/FCFF ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

Kinder Morgan Inc. (NYSE:KMI)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical