Kinder Morgan, Inc.

Q1 2021 Earnings Conference Call

4/21/2021

spk_2: a session of today's conference at that time. To make press star
spk_0: followed by the Number
spk_2: one. To ask a question,
spk_0: please unmute your phones and state
spk_1: your first and last famous
spk_2: my pleasure to technical over the risk. Mr Rich Kinder. Executive Chairman of Kinder morgan sir. You may begin.
spk_0: Okay. Thank you Michel. Before we begin, I'd like to remind you, as we always do. The Commies earnings released today in this call includes forward looking statements within the meaning of the private securities litigation reform Act of 1995 And the Securities and Exchange Act of 1934, as well as certain non gap financial measures before making any investment decisions. We strongly encourage you to read our full disclosures on forward looking statements and use of non gap financial measures set forth at the end of our earnings release, as well as review our latest filings with the sec for important material assumptions, expectations and risk factors that may cause actually results to differ materially from those anticipated and described as such forward looking statements. Just get the call off, in addition to detailing our first quarter results, we made two important announcements in our earnings released today. We have revised our full year 2021 estimate for DCF and Ebitda substantially upward steve kim and David will explain the underpinnings of that change. We also increased our dividend To an annualized rate of the dollar eight per share As we promised when we released our original outlook for 2021 back in December. In my judgment, this increase is an indicator of two significant parts of our corporate financial policy. First, it shows we are intent on returning value to our shareholders. Second, it demonstrates the consistent strength of our cash flow. Put this in perspective, this is the fourth consecutive annual increase in our dividends since 2017, When we were paying an annual dividend of 50 cents per share. And we have accomplished that while maintaining a real focus on our balance sheet, having reduced our debt from its peak of almost $43 billion 2015 to $30.7 billion $12 billion, quite an improvement. Now, we're doing all this while continuing to pursue opportunities with our natural gas assets to firm up deliver ability and supply to our customers opportunities that were highlighted by the recent winter storm in texas and also while examining opportunities in the energy transition effort at kinder morgan. We remain guided by what we believe is a sound corporate philosophy fund. Our capital needs internally maintain a healthy balance sheep, and we turn excess cash to our shareholders through dividend increases and opportunistic share repurchases. We think this is a recipe for long term financial success for KM. I and its shareholders. And with that, I'll turn it over to steve kean our ceo.
spk_1: All right, thank you. Rich. I'll focus on our performance during winter storm yuri, which is what drove our financial results in the quarter. Then I'll turn it over to our president kim Bang to cover the business updates. Our CFO, David Michaels will take you through the financials and then we'll take your questions. Starting with the performance during the february winter storm. We were prepared and that preparation served as well. Our previous investments in our assets, particularly on our store, gas storage assets were a huge help. We were on maximum withdrawal for days at several of our fields. Also helpful where our investments in backup generators at key compressor stations on our system. Another real key for us with our team, our operations team deployed in advance to keep our facilities running and quickly repair them If they went down, we deployed additional generators and tested our generators before the storm got here. Our people were at locations that are normally automated and they were there in the bitter cold, and undoubtedly many of them have their own families at home without power and water. Our team went to key compressor stations, storage facilities and delivery points to keep gas flowing, including a key delivery point to the city of boston. Are people kept us going our investments and especially our team will interest us against a terrible storm. We also purchased additional gas, some at very high prevailing prices to serve power plants and gas utilities. The result of all this was that we enabled our wholesale customers to serve needs that would have otherwise.
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