8-K 1 0001.htm KINDER MORGAN, INC







SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549




FORM 8-K


CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

January 17, 2001
(Date of earliest event reported)

KINDER MORGAN, INC.
(Exact name of registrant as specified in its charter)


Kansas
(State or other jurisdiction
of incorporation)

1-6446
(Commission
File Number)

48-0290000
(I.R.S. Employer
Identification No.)




500 Dallas, Suite 1000
Houston, Texas 77002
(Address of principal executive offices, including zip code)


713-369-9000
(Registrant’s telephone number, including area code)

Item 5. Other Events.

During the fourth quarter of 2000, the Company changed to the equity method of accounting for the Company’s investment in the partnership which owns and operates the Ft. Lupton power generation facility. This change in the method of accounting for the Ft. Lupton investment was necessitated by a change in the form of the investment resulting from operation of the contract under which the interest was originally purchased. During the fourth quarter of 2000, the Company decided to retain its previously discontinued international operations segment. Pursuant to Item 7, proforma financial statements of the Company, giving effect to these events are included herein commencing on page PF-1.

On January 17, 2001, the Company issued a press release containing earnings information and supplemental information with respect to the years ended December 31, 2000 and 1999. This press release is filed herewith as Exhibit 99.1 and is incorporated herein by reference.



Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
a) Financial Statements. Not Applicable.
b) Pro Forma Financial Information.

The pro forma financial statements of the Company are included herein commencing on page PF-1.
c) Exhibits.

The following materials are filed as exhibits to this Current Report on Form 8-K.

Exhibit Number
Description

99.1

 Press Release of the Company issued January 17, 2001.

2

Kinder Morgan, Inc. and Subsidiaries
Restated Consolidated Financial Statements

The attached pro forma restated consolidated statements of income have been prepared to reflect (1) the fourth-quarter 2000 change to the equity method of accounting for the Company’s investment in the partnership which owns and operates the Ft. Lupton power generation facility and (2) the Company’s fourth-quarter 2000 decision to retain its previously discontinued international operations segment. The change in the method of accounting for the Ft. Lupton investment was necessitated by a change in the form of the investment resulting from operation of the contract under which the interest was originally purchased. The income statement for the 12 months ended December 31, 1999 has been prepared using amounts from the Company’s audited financial statements for 1999, while the income statement for the 9 months ended September 30, 2000 has been prepared using amounts from the Company’s unaudited financial statements for that period.

PF-1

Kinder Morgan, Inc. and Subsidiaries

Unaudited Consolidated Statement of Income

12 Months Ended December 31, 1999

(in thousands)

                Restatements                 

Before

Power

International

Pro Forma

 Restatement

 Equity Method

(1)

 Operations

(2)

 Restated
Operating Revenues

$1,842,673 

$   (7,434)

$    1,129 

$1,836,368 
Operating Costs and Expenses:
Gas Purchases and Other Costs of Sales

 1,049,713 

         - 

       537 

 1,050,250 
Operating, Maintenance, General and
     Administrative

   267,972 

         - 

     2,507 

   270,479 
Depreciation and Amortization

   147,928 

         - 

         5 

   147,933 
Taxes, Other Than Income Taxes

    34,560 

         - 

         1 

    34,561 
Merger-related Costs

    37,443 

         - 

         - 

    37,443 
     Total Operating Expenses

 1,537,616 

         - 

     3,050 

 1,540,666 
Operating Income

   305,057 

    (7,434)

    (1,921)

   295,702 
Other Income and (Deductions)
Equity in Earnings of Equity Method Investments

    22,538 

    10,511 

         - 

    33,049 
Interest Expense, Net

  (251,986)

         - 

        66 

  (251,920)
Other, Net

   169,570 

      (105)

        95 

   169,560 
     Total Other Income and (Deductions)

   (59,878)

    10,406 

       161 

   (49,311)
Income from Continuing Operations Before
   Income Taxes

   245,179 

     2,972 

    (1,760)

   246,391 
Income Taxes

    90,527 

     1,189 

      (983)

    90,733 
Income From Continuing Operations

$  154,652 

$    1,783 

$     (777)

$  155,658 

========== 

========== 

========== 

========== 

(1)  Change to equity method of accounting for investment in partnership
(2)  Reflects decision to retain previously discontinued international operations

PF-2

Kinder Morgan, Inc. and Subsidiaries

Unaudited Consolidated Statement of Income

9 Months Ended September 30, 2000

(in thousands)

                Restatements                   

Before

Power

International

Pro Forma

Restatement

 Equity Method

(1)

Operations

(2)

Restated
Operating Revenues

$1,779,419 

$   (1,767)

$    4,382 

$1,782,034 
Operating Costs and Expenses:
Gas Purchases and Other Costs of Sales

 1,233,715 

         - 

     3,281 

 1,236,996 
Operating, Maintenance, General and
     Administrative

   160,628 

         - 

     2,798 

   163,426 
Depreciation and Amortization

    80,784 

         - 

        81 

    80,865 
Taxes, Other Than Income Taxes

    20,926 

         - 

         - 

    20,926 
     Total Operating Expenses

 1,496,053 

         - 

     6,160 

 1,502,213 
Operating Income

   283,366 

    (1,767)

    (1,778)

   279,821 
Other Income and (Deductions)
Equity in Earnings of Equity Method Investments

    70,522 

     4,648 

         - 

    75,170 
Interest Expense, Net

  (184,463)

         - 

      (968)

  (185,431)
Other, Net

    (6,860)

       (46)

       485 

    (6,421)
     Total Other Income and (Deductions)

  (120,801)

     4,602 

      (483)

  (116,682)
Income from Continuing Operations Before
   Income Taxes

   162,565 

     2,835 

    (2,261)

   163,139 
Income Taxes

    65,026 

     1,134 

      (167)

    65,993 
Income From Continuing Operations

$   97,539 

$    1,701 

$   (2,094)

$   97,146 

========== 

========== 

========== 

========== 

(1)  Change to equity method of accounting for investment in partnership
(2)  Reflects decision to retain previously discontinued international operations

PF-3

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

KINDER MORGAN, INC.

Dated: February 1, 2001

By:    /s/    JOSEPH LISTENGART                                     
Joseph Listengart
Vice President and General Counsel

3

 

EXHIBIT INDEX

Exhibit Number
Description

99.1

 Press Release of the Company issued January 17, 2001