-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JpmKeeHwnx0Q5kQWqU9Xe4ellzSKnss9Q4cDDYuqIkj3G3AsqqzqybpQDb73Q/UB yKB73Y0lgNYHDAayUUmuHQ== 0000054502-07-000014.txt : 20070412 0000054502-07-000014.hdr.sgml : 20070412 20070411193844 ACCESSION NUMBER: 0000054502-07-000014 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070411 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070412 DATE AS OF CHANGE: 20070411 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KINDER MORGAN INC CENTRAL INDEX KEY: 0000054502 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS TRANSMISSION & DISTRIBUTION [4923] IRS NUMBER: 480290000 STATE OF INCORPORATION: KS FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06446 FILM NUMBER: 07762320 BUSINESS ADDRESS: STREET 1: 500 DALLAS STREET 2: SUITE 1000 CITY: HOUSTON STATE: TX ZIP: 77002 BUSINESS PHONE: 713-369-9000 MAIL ADDRESS: STREET 1: 500 DALLAS STREET 2: SUITE 1000 CITY: HOUSTON STATE: TX ZIP: 77002 FORMER COMPANY: FORMER CONFORMED NAME: K N ENERGY INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: KN ENERGY INC DATE OF NAME CHANGE: 19920430 FORMER COMPANY: FORMER CONFORMED NAME: KANSAS NEBRASKA NATURAL GAS CO INC DATE OF NAME CHANGE: 19830403 8-K 1 kmi8k041107.htm KINDER MORGAN, INC. FORM 8-K Kinder Morgan, Inc. Form 8-K



UNITED STATES

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


Date of Report (Date of earliest event reported):  April 11, 2007


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 Street, Suite 1000

Houston, Texas 77002

(Address of principal executive offices, including zip code)

713-369-9000

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))





Item 7.01  Regulation FD Disclosure.

In accordance with General Instruction B.2. of Form 8-K, the following information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.

Because the closing of the going-private transaction of Kinder Morgan, Inc. is at present still pending the receipt of regulatory approval, a number of transactions previously announced will likely be completed before the going-private transaction closes.  For example, the previously announced sales of Terasen Inc. and the Corridor Pipeline System will likely be consummated before the going-private transaction closes, and the sale of Kinder Morgan, Inc.'s U.S. natural gas retail distribution operations closed in March 2007.  As a result, it is likely that the proceeds from those transactions will reduce the amount of debt necessary to consummate the going-private transaction.  In connection with the syndication of the debt financing for the going-private transaction, Kinder Morgan, Inc. will be providing summary unaudited financial information to prospective lenders that gives pr o forma effect to the consummation of the previously announced transactions.  This summary unaudited financial information is furnished as Exhibit 99.1 hereto.

Item 9.01.  Financial Statements and Exhibits.

(d)

Exhibits.

99.1

Unaudited Financial Information of Kinder Morgan, Inc.




-2-


S I G N A T U R E


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

 

KINDER MORGAN, INC.

  

  

Dated:  April 11, 2007

By:

/s/ Joseph Listengart

 

 

Joseph Listengart

Vice President and General Counsel



-3-




EXHIBIT INDEX


Exhibit

Number


Description

 

  

99.1

Unaudited Financial Information of Kinder Morgan, Inc.






 EX-99.1 2 kmiexhibit991.htm KMI EXHIBIT 99.1 Kinder Morgan, Inc. Exhibit 99.1

Exhibit 99.1

KINDER MORGAN, INC. AND SUBSIDIARIES

Unaudited Financial Information


 

December 31,

 

Pro Forma

2006 (4)

($ in millions, except per share data)

2005 (1,2)

 

2006 (1,2,3)

 

Income Statement

 

 

 

 

 

 

 

 

 

 

 

Equity in Earnings of Kinder Morgan Energy Partners

$

668.7

 

 

$

681.3

 

 

$

696.3

 

Segment Earnings: (5)

 

 

 

 

 

 

 

 

 

 

 

 NGPL

 

436.9

 

 

 

499.0

 

 

 

499.0

 

 Terasen Gas

 

45.2

 

 

 

312.9

 

 

 

-  

 

 Kinder Morgan Canada

 

12.5

 

 

 

119.9

 

 

 

17.2

 

 Power

 

19.7

 

 

 

21.1

 

 

 

21.1

 

 

Total

 

1,183.0

 

 

 

1,634.2

 

 

 

1,233.6

 

General and Administrative Expenses

 

(72.3

)

 

 

(149.1

)

 

 

(55.1

)

Interest Expense, Net

 

(166.3

)

 

 

(429.2

)

 

 

(607.2

)

Interest Expense - Deferrable Interest Debentures

 

(21.9

)

 

 

(21.9

)

 

 

(21.9

)

Interest Expense - Capital Securities

 

(0.7

)

 

 

(8.7

)

 

 

-  

 

Minority Interests

 

(73.4

)

 

 

(71.5

)

 

 

(71.5

)

Other, Net

 

17.7

 

 

 

20.4

 

 

 

13.7

 

 

Income From Continuing Operations Before Income Taxes and Certain Items

 

866.1

 

 

 

974.2

 

 

 

491.6

 

Income Taxes Excluding Certain Items

 

333.8

 

 

 

299.8

 

 

 

194.5

 

 

Income From Continuing Operations Before Certain Items

 

532.3

 

 

 

674.4

 

 

 

297.1

 

Certain Items, Net of Tax:

 

(2.4

)

 

 

(625.7

)

 

 

-  

 

 

Income From Continuing Operations

 

529.9

 

 

 

48.7

 

 

 

297.1

 

Income from Discontinued Operations, Net of Tax

 

24.7

 

 

 

23.2

 

 

 

-  

 

 

Net Income

$

554.6

 

 

$

71.9

 

 

$

297.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share From Continuing Operations

 

 

 

 

 

 

 

 

 

 

 

 

Before Certain Items

$

4.27

 

 

$

5.00

 

 

$

2.20

 

Diluted Earnings Per Share From Continuing Operations

$

4.25

 

 

$

0.36

 

 

$

2.20

 

Diluted Earnings Per Share

$

4.45

 

 

$

0.53

 

 

$

2.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents

$

117

 

 

$

93

 

 

$

93

 

Investments

$

2,853

 

 

$

3,055

 

 

$

16,266

 

Property, Plant and Equipment, Net

$

9,546

 

 

$

9,378

 

 

$

4,228

 

Total Assets

$

17,452

 

 

$

17,645

 

 

$

22,330

 

Notes Payable and Current Maturities of Long-term Debt

$

958

 

 

$

822

 

 

$

-

 

Outstanding Notes, Debentures, and Term Loans

$

6,287

 

 

$

6,240

 

 

$

9,139

 

Deferrable Interest Debentures Issued to Subsidiary Trusts

$

284

 

 

$

284

 

 

$

284

 

Capital Securities

$

107

 

 

$

107

 

 

$

-

 

Minority Interests in Equity of Subsidiaries

$

1,247

 

 

$

1,358

 

 

$

1,358

 

Stockholders' Equity (6)

$

4,051

 

 

$

4,348

 

 

$

7,913

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Financial Information

 

 

 

 

 

 

 

 

 

 

 

Depreciation, Depletion and Amortization

$

113.4

 

 

$

232.7

 

 

$

107.8

 

EBITDA (7,8)

$

1,131.6

 

 

$

1,630.2

 

 

$

1,192.0

 

Interest Expense

$

188.9

 

 

$

459.8

 

 

$

629.1

 

Total Debt (8)

$

7,636

 

 

$

7,453

 

 

$

9,423

 

Net Debt (8)

$

7,519

 

 

$

7,360

 

 

$

9,330

 

Total Capital (9)

$

12,817

 

 

$

13,066

 

 

$

18,601

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit Statistics (8)

 

 

 

 

 

 

 

 

 

 

 

Total Debt / EBITDA

 

6.7x

 

 

 

4.6x

 

 

 

7.9x

 

Net Debt / EBITDA

 

6.6x

 

 

 

4.5x

 

 

 

7.8x

 

EBITDA / Interest Expense

 

6.0x

 

 

 

3.5x

 

 

 

1.9x

 

Net Debt / Total Capitalization

 

58.7

%

 

 

56.3

%

 

 

50.2

%

_______________




(1)

Operating results include the results of Terasen Inc., which we acquired on November 30, 2005.  Further information regarding this acquisition is available in our 2005 Form 10-K.

(2)

Reflects the classification of U.S. Retail as discontinued operations.

(3)

Due to our adoption of EITF 04-5, effective January 1, 2006 the accounts and balances of Kinder Morgan Energy Partners (KMP) are included in our consolidated results and we no longer apply the equity method of accounting to our investment in KMP.  Further information regarding our adoption of EITF 04-5 is available  in our 2005 Form 10-K. The unaudited 2006 information presented above is a non-GAAP presentation of our operating results as if EITF 04-5 had not taken effect in 2006 and is comparable to our 2006 budget information as presented on our website and our 2005 as reported results. The differences between this presentation and our GAAP results relate to the consolidation of KMP and there is no impact to income from continuing operations. KMI's audited consolidated 2006 financial statements appear in its 2006 Form 10-K.

(4)

2006 Pro forma applies the GAAP equity method of accounting for our investment in KMP and assumes that the MBO along with asset sales relating to Terasen Gas, US Retail, Corridor, and Trans Mountain occurred on January 1, 2006. No disposition of Trans Mountain has been agreed to. Outstanding indebtedness and related interest expense associated with respective assets also excluded. Assumes no debt pay-down in 2006.

(5)

Operating income before corporate costs plus earnings from equity method investments plus gains and losses on incidental sales of assets.

(6)

Total stockholders' equity excluding accumulated other comprehensive loss.

(7)

EBITDA reconciliation:

  

Net income from continuing operations before certain items

$

532.3

 

 

$

674.4

 

 

$

297.1

 

Plus:

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

113.4

 

 

 

232.7

 

 

 

107.8

 

Interest expense

 

166.3

 

 

 

429.2

 

 

 

607.2

 

Interest expense from deferrable interest debentures

 

21.9

 

 

 

21.9

 

 

 

21.9

 

Interest expense from capital securities

 

0.7

 

 

 

8.7

 

 

 

-  

 

Income taxes*

 

297.0

 

 

 

263.3

 

 

 

158.0

 

EBITDA

$

1,131.6

 

 

$

1,630.2

 

 

$

1,192.0


* Income taxes line within EBITDA reconciliation excludes $36.8 million and $36.5 million for 2005 and 2006, respectively, related to the consolidation of taxes on the minority interest portion of KMR shares.  For GAAP purposes, minority interest is reported net of tax on the Income Statement above.

(8)

Debt numbers include all debt related to Terasen acquisition, but EBITDA for the 12 months ended December 31, 2005 includes only one month of results from Terasen as it was closed on November 30, 2005.  2006 notes payable and current maturities of long-term debt adjusted to reflect additional $5 million of current maturities.

(9)

Net debt plus minority interests in equity of subsidiaries plus stockholders' equity.




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