EX-99.1 CHARTER 3 kmiex991.htm KMI EXHIBIT 99.1 OF FORM 8-K FILED 06-19-02 Kinder Morgan, Inc. Exhibit 99.1

Exhibit 99.1

Selected Financial Data.

In June 2001, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets, referred to in the following discussion as "SFAS 142." SFAS 142, which superceded Accounting Principles Board Opinion No. 17, Intangible Assets, addresses financial accounting and reporting for (1) intangible assets acquired individually or with a group of other assets (but not those acquired in a business combination) at acquisition and (2) goodwill and other intangible assets subsequent to their acquisition. SFAS 142 is required to be applied starting with fiscal years beginning after December 15, 2001. As previously disclosed in Kinder Morgan, Inc.'s Form 10-Q for the period ended March 31, 2002 as filed with the Securities and Exchange Commission on May 10, 2002, Kinder Morgan, Inc. adopted SFAS 142 effective January 1, 2002.

1

The following sets forth the Five-Year Review of Kinder Morgan, Inc. and subsidiaries as presented in Item 6 of Kinder Morgan, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2001 as filed with the Securities and Exchange Commission on February 20, 2002. The footnotes to the Five-Year Review as presented in Kinder Morgan, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2001 referred to "the accompanying Consolidated Financial Statements." The corresponding references in the footnotes included herein refer to the Consolidated Financial Statements included in Kinder Morgan, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2001.

Five-Year Review
Kinder Morgan, Inc. and Subsidiaries

Year Ended December 31,

2001

2000

19991

19982

1997

(In thousands except per share amounts)

Operating Revenues

$1,054,918 

$2,679,722 

$1,836,368 

$1,660,259 

$  340,685 

Gas Purchases and Other Costs of Sales

   339,353 

 1,926,068 

 1,050,250 

   836,614 

   134,476 

Gross Margin

   715,565 

   753,654 

   786,118 

   823,645 

   206,209 

Other Operating Expenses

   331,246 

   358,511 

   490,416 

   427,953 

   128,059 

Operating Income

   384,319 

   395,143 

   295,702 

   395,692 

    78,150 

Other Income and (Expenses)3

    22,917 

   (87,977)

   (81,151)

  (172,787)

   (21,039)

Income From Continuing Operations Before

  Income Taxes

   407,236 

   307,166 

   214,551 

   222,905 

    57,111 

Income Taxes

   168,601 

   123,017 

    79,124 

    82,710 

    12,777 

Income From Continuing Operations

   238,635 

   184,149 

   135,427 

   140,195 

    44,334 

Gain (Loss) From Discontinued Operations,

  Net of Tax

         - 

   (31,734)

  (395,319)

   (77,984)

    33,163 

Income (Loss) Before Extraordinary Item

   238,635 

   152,415 

  (259,892)

    62,211 

    77,497 

Extraordinary Item - Loss on Early

  Extinguishment of Debt, Net of Income Taxes

   (13,565)

         - 

         - 

         - 

         - 

Net Income (Loss)

   225,070 

   152,415 

  (259,892)

    62,211 

    77,497 

Less-Preferred Dividends

         - 

         - 

       129 

       350 

       350 

Less-Premium Paid on Preferred Stock

  Redemption

         - 

         - 

       350 

         - 

         - 

Earnings (Loss) Available for Common Stock

$  225,070 

$  152,415 

$ (260,371)

$   61,861 

$   77,147 

========== 

========== 

========== 

========== 

========== 

Basic Earnings (Loss) Per Common Share:

Continuing Operations

$     2.07 

$     1.62 

$     1.68 

$     2.19 

$     0.95 

Discontinued Operations

         - 

     (0.28)

     (4.92)

     (1.22)

      0.71 

Extraordinary Item - Loss on Early

  Extinguishment of Debt

     (0.12)

         - 

         - 

         - 

         - 

  Total Basic Earnings (Loss) Per Common Share

$     1.95 

$     1.34 

$    (3.24)

$     0.97 

$     1.66 

========== 

========== 

========== 

========== 

========== 

Number of Shares Used in Computing Basic

  Earnings (Loss) Per Common Share

   115,243 

   114,063 

    80,284 

    64,021 

    46,589 

========== 

========== 

========== 

========== 

========== 

Diluted Earnings (Loss) Per Common Share:

Continuing Operations

$     1.97 

$     1.61 

$     1.68 

$     2.17 

$     0.93 

Discontinued Operations

         - 

     (0.28)

     (4.92)

     (1.21)

      0.70 

Extraordinary Item - Loss on Early

  Extinguishment of Debt

     (0.11)

         - 

         - 

         - 

         - 

Total Diluted Earnings (Loss) Per Common

  Share

$     1.86 

$     1.33 

$    (3.24)

$     0.96 

$     1.63 

========== 

========== 

========== 

========== 

========== 

Number of Shares Used in Computing

  Diluted Earnings (Loss) Per Common Share

   121,326 

   115,030 

    80,358 

    64,636 

    47,307 

========== 

========== 

========== 

========== 

========== 

Dividends Per Common Share

$     0.20 

$     0.20 

$     0.65 

$     0.76 

$     0.73 

========== 

========== 

========== 

========== 

========== 

Capital Expenditures4

$  124,171 

$   85,654 

$   92,841 

$  120,881 

$  230,814 

========== 

========== 

========== 

========== 

========== 

1 Reflects the acquisition of Kinder Morgan Delaware on October 7, 1999. See Note 3 of the Notes to Consolidated Financial
   Statements included in the Kinder Morgan, Inc. Annual Report on Form 10-K for the year ended December 31, 2001.
2 Reflects the acquisition of MidCon Corp. on January 30, 1998.
3 Includes significant impacts from sales of assets. See Note 1 (N) of the Notes to Consolidated Financial Statements included in the
   Kinder Morgan, Inc. Annual Report on Form 10-K for the year ended December 31, 2001.
4 Capital Expenditures shown are for continuing operations only.

2

Five-Year Review (Continued)
Kinder Morgan, Inc. and Subsidiaries

As of December 31,

2001

2000

1999

1998

1997

(In thousands except per share amounts)

Total Assets

$ 9,533,085 

$ 8,386,989 

$ 9,393,834 

$ 9,623,779 

$ 2,305,805 

=========== 

=========== 

=========== 

=========== 

=========== 

Capitalization:

Common Equity

$ 2,259,997 

 39%

$ 1,777,624 

 39%

$ 1,649,615 

 32%

$ 1,219,043 

 25%

$   606,132 

 46%

Preferred Stock

          - 

  - 

          - 

  - 

          - 

  - 

      7,000 

 - 

      7,000 

 - 

Preferred Capital Trust

  Securities

    275,000 

  5%

    275,000 

  6%

    275,000 

  5%

    275,000 

  6%

    100,000 

  8%

Minority Interests

    817,513 

 14%

      4,910 

 - 

      9,523 

  - 

     63,354 

  1%

     47,303 

  4%

Long-term Debt

  2,404,967 

 42%

  2,478,983 

 55%

  3,293,326 

 63%

  3,300,025 

 68%

    553,816 

 42%

Total Capitalization

$ 5,757,477 

100%

$ 4,536,517 

100%

$ 5,227,464 

100%

$ 4,864,422 

100%

$ 1,314,251 

100%

=========== 

=== 

=========== 

=== 

=========== 

=== 

=========== 

=== 

=========== 

=== 

Book Value Per

  Common Share

$     18.24 

$     15.53 

$     14.64 

$     17.77 

$     12.63 

  

=========== 

=========== 

=========== 

=========== 

=========== 

Had the provisions of SFAS 142 been in effect during the years presented above, goodwill amortization would have been eliminated, increasing net income and earnings per share as follows:

Year Ended December 31,

2001

2000

1999

1998

1997

(In thousands except per share amounts)

Reported Income (Loss) Before

  Extraordinary Item

$ 238,635 

$ 152,415 

$(259,892)

$  62,211 

$  77,497 

Add Back: Goodwill Amortization,

  Net of Related Tax Benefit

   16,198 

   17,368 

    5,449 

      292 

        - 

Adjusted Income (Loss) Before

  Extraordinary Item

  254,833 

  169,783 

 (254,443)

   62,503 

   77,497 

Extraordinary Item

  (13,565)

        - 

        - 

        - 

        - 

Adjusted Net Income (Loss)

$ 241,268 

$ 169,783 

$(254,443)

$  62,503 

$  77,497 

========= 

========= 

========= 

========= 

========= 

Basic Earnings (Loss) Per Share:

  Reported Net Income (Loss)

$    1.95 

$    1.34 

$   (3.24)

$    0.97 

$    1.66 

  Goodwill Amortization

     0.14 

     0.15 

     0.06 

        - 

        - 

  Adjusted Net Income (Loss)

$    2.09 

$    1.49 

$   (3.18)

$    0.97 

$    1.66 

========= 

========= 

========= 

========= 

========= 

Diluted Earnings (Loss) Per Share:

  Reported Net Income (Loss)

$    1.86 

$    1.33 

$   (3.24)

$    0.96 

$    1.63 

  Goodwill Amortization

     0.13 

     0.15 

     0.07 

        - 

        - 

  Adjusted Net Income (Loss)

$    1.99 

$    1.48 

$   (3.17)

$    0.96 

$    1.63 

========= 

========= 

========= 

========= 

========= 

3