Stock Analysis on Net
Stock Analysis on Net

Kinder Morgan Inc. (NYSE:KMI)

This company has been moved to the archive! The financial data has not been updated since April 29, 2020.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Kinder Morgan Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Federal (2) (22) (137) (148) (125)
State 10 (45) (16) (28) (7)
Foreign 201 249 18 6 4
Current tax expense (benefit) 209 182 (135) (170) (128)
Federal 682 425 2,022 998 653
State 66 55 4 51 (4)
Foreign (31) (75) 47 38 43
Deferred tax expense 717 405 2,073 1,087 692
Income tax provision 926 587 1,938 917 564

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).

Item Description The company
Current tax expense (benefit) Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Kinder Morgan Inc. current tax expense (benefit) increased from 2017 to 2018 and from 2018 to 2019.
Deferred tax expense Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Kinder Morgan Inc. deferred tax expense decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.
Income tax provision Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Kinder Morgan Inc. income tax provision decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

Effective Income Tax Rate (EITR)

Kinder Morgan Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Statutory federal income tax rate 21.00% 21.00% 35.00% 35.00% 35.00%
Taxes on foreign earnings, net of federal benefit 4.40% 5.20% 1.90% 1.70% 3.50%
Net effects of noncontrolling interests -0.30% -2.60% -0.70% -0.30% 2.00%
State income tax, net of federal benefit 2.10% 1.80% 1.80% 1.60% 1.50%
Dividend received deduction -1.10% -1.20% -2.60% -2.90% -6.60%
Adjustments to uncertain tax positions -0.20% -1.90% -0.60% -1.40% -1.90%
Nondeductible goodwill 3.40% 2.30% 0.00% 18.50% 41.70%
General business credit 0.00% -2.60% -4.40% 0.00% 0.00%
Other 0.00% 1.40% 1.90% 3.90% -2.30%
Effective income tax rate, before impact of the 2017 Tax Reform 29.30% 23.40% 32.30% 56.10% 72.90%
Impact of the 2017 Tax Reform 0.00% 0.00% 57.40% 0.00% 0.00%
Effective income tax rate 29.30% 23.40% 89.70% 56.10% 72.90%

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).

Item Description The company
Effective income tax rate, before impact of the 2017 Tax Reform Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Kinder Morgan Inc. effective income tax rate, before impact of the 2017 Tax Reform decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Components of Deferred Tax Assets and Liabilities

Kinder Morgan Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Employee benefits 208 238 251 401 394
Accrued expenses 86 76 73 118 129
Net operating loss, capital loss and tax credit carryforwards 1,519 1,526 1,113 1,307 1,344
Derivative instruments and interest rate and currency swaps 15 9 12 22 45
Debt fair value adjustment 29 33 37 74 110
Investments — 177 968 2,804 3,607
Other — — 6 14 3
Deferred tax assets, before valuation allowances 1,857 2,059 2,460 4,740 5,632
Valuation allowances (155) (178) (171) (184) (152)
Deferred tax assets 1,702 1,881 2,289 4,556 5,480
Property, plant and equipment (385) (270) (225) (177) (143)
Investments (418) — — — —
Other (42) (45) (20) (27) (14)
Deferred tax liabilities (845) (315) (245) (204) (157)
Net deferred tax assets (liabilities) 857 1,566 2,044 4,352 5,323

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).

Item Description The company
Deferred tax assets, before valuation allowances Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Kinder Morgan Inc. deferred tax assets, before valuation allowances decreased from 2017 to 2018 and from 2018 to 2019.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Kinder Morgan Inc. deferred tax assets decreased from 2017 to 2018 and from 2018 to 2019.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Kinder Morgan Inc. net deferred tax assets (liabilities) decreased from 2017 to 2018 and from 2018 to 2019.

Deferred Tax Assets and Liabilities, Classification

Kinder Morgan Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Deferred tax assets 857 1,566 2,044 4,352 5,323

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).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Kinder Morgan Inc. deferred tax assets decreased from 2017 to 2018 and from 2018 to 2019.

Adjustments to Financial Statements: Removal of Deferred Taxes

Kinder Morgan Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Adjustment to Total Assets
Total assets (as reported) 74,157 78,866 79,055 80,305 84,104
Less: Noncurrent deferred tax assets, net 857 1,566 2,044 4,352 5,323
Total assets (adjusted) 73,300 77,300 77,011 75,953 78,781
Adjustment to Total Kinder Morgan, Inc.’s Stockholders’ Equity
Total Kinder Morgan, Inc.’s stockholders’ equity (as reported) 33,742 33,678 33,636 34,431 35,119
Less: Net deferred tax assets (liabilities) 857 1,566 2,044 4,352 5,323
Total Kinder Morgan, Inc.’s stockholders’ equity (adjusted) 32,885 32,112 31,592 30,079 29,796
Adjustment to Net Income Attributable To Kinder Morgan, Inc.
Net income attributable to Kinder Morgan, Inc. (as reported) 2,190 1,609 183 708 253
Add: Deferred income tax expense (benefit) 717 405 2,073 1,087 692
Net income attributable to Kinder Morgan, Inc. (adjusted) 2,907 2,014 2,256 1,795 945

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).

Kinder Morgan Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Kinder Morgan Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net Profit Margin
Reported net profit margin 16.58% 11.38% 1.34% 5.42% 1.76%
Adjusted net profit margin 22.01% 14.24% 16.46% 13.75% 6.56%
Total Asset Turnover
Reported total asset turnover 0.18 0.18 0.17 0.16 0.17
Adjusted total asset turnover 0.18 0.18 0.18 0.17 0.18
Financial Leverage
Reported financial leverage 2.20 2.34 2.35 2.33 2.39
Adjusted financial leverage 2.23 2.41 2.44 2.53 2.64
Return on Equity (ROE)
Reported ROE 6.49% 4.78% 0.54% 2.06% 0.72%
Adjusted ROE 8.84% 6.27% 7.14% 5.97% 3.17%
Return on Assets (ROA)
Reported ROA 2.95% 2.04% 0.23% 0.88% 0.30%
Adjusted ROA 3.97% 2.61% 2.93% 2.36% 1.20%

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).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Kinder Morgan Inc. adjusted net profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Kinder Morgan Inc. adjusted total asset turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Kinder Morgan Inc. adjusted financial leverage ratio decreased from 2017 to 2018 and from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Kinder Morgan Inc. adjusted ROE deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Kinder Morgan Inc. adjusted ROA deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Kinder Morgan Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Kinder Morgan, Inc. 2,190 1,609 183 708 253
Revenues 13,209 14,144 13,705 13,058 14,403
Profitability Ratio
Net profit margin1 16.58% 11.38% 1.34% 5.42% 1.76%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Kinder Morgan, Inc. 2,907 2,014 2,256 1,795 945
Revenues 13,209 14,144 13,705 13,058 14,403
Profitability Ratio
Adjusted net profit margin2 22.01% 14.24% 16.46% 13.75% 6.56%

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).

2019 Calculations

1 Net profit margin = 100 × Net income attributable to Kinder Morgan, Inc. ÷ Revenues
= 100 × 2,190 ÷ 13,209 = 16.58%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Kinder Morgan, Inc. ÷ Revenues
= 100 × 2,907 ÷ 13,209 = 22.01%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Kinder Morgan Inc. adjusted net profit margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Revenues 13,209 14,144 13,705 13,058 14,403
Total assets 74,157 78,866 79,055 80,305 84,104
Activity Ratio
Total asset turnover1 0.18 0.18 0.17 0.16 0.17
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues 13,209 14,144 13,705 13,058 14,403
Adjusted total assets 73,300 77,300 77,011 75,953 78,781
Activity Ratio
Adjusted total asset turnover2 0.18 0.18 0.18 0.17 0.18

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).

2019 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 13,209 ÷ 74,157 = 0.18

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 13,209 ÷ 73,300 = 0.18

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Kinder Morgan Inc. adjusted total asset turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Total assets 74,157 78,866 79,055 80,305 84,104
Total Kinder Morgan, Inc.’s stockholders’ equity 33,742 33,678 33,636 34,431 35,119
Solvency Ratio
Financial leverage1 2.20 2.34 2.35 2.33 2.39
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 73,300 77,300 77,011 75,953 78,781
Adjusted total Kinder Morgan, Inc.’s stockholders’ equity 32,885 32,112 31,592 30,079 29,796
Solvency Ratio
Adjusted financial leverage2 2.23 2.41 2.44 2.53 2.64

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).

2019 Calculations

1 Financial leverage = Total assets ÷ Total Kinder Morgan, Inc.’s stockholders’ equity
= 74,157 ÷ 33,742 = 2.20

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Kinder Morgan, Inc.’s stockholders’ equity
= 73,300 ÷ 32,885 = 2.23

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Kinder Morgan Inc. adjusted financial leverage ratio decreased from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Kinder Morgan, Inc. 2,190 1,609 183 708 253
Total Kinder Morgan, Inc.’s stockholders’ equity 33,742 33,678 33,636 34,431 35,119
Profitability Ratio
ROE1 6.49% 4.78% 0.54% 2.06% 0.72%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Kinder Morgan, Inc. 2,907 2,014 2,256 1,795 945
Adjusted total Kinder Morgan, Inc.’s stockholders’ equity 32,885 32,112 31,592 30,079 29,796
Profitability Ratio
Adjusted ROE2 8.84% 6.27% 7.14% 5.97% 3.17%

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).

2019 Calculations

1 ROE = 100 × Net income attributable to Kinder Morgan, Inc. ÷ Total Kinder Morgan, Inc.’s stockholders’ equity
= 100 × 2,190 ÷ 33,742 = 6.49%

2 Adjusted ROE = 100 × Adjusted net income attributable to Kinder Morgan, Inc. ÷ Adjusted total Kinder Morgan, Inc.’s stockholders’ equity
= 100 × 2,907 ÷ 32,885 = 8.84%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Kinder Morgan Inc. adjusted ROE deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Kinder Morgan, Inc. 2,190 1,609 183 708 253
Total assets 74,157 78,866 79,055 80,305 84,104
Profitability Ratio
ROA1 2.95% 2.04% 0.23% 0.88% 0.30%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Kinder Morgan, Inc. 2,907 2,014 2,256 1,795 945
Adjusted total assets 73,300 77,300 77,011 75,953 78,781
Profitability Ratio
Adjusted ROA2 3.97% 2.61% 2.93% 2.36% 1.20%

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).

2019 Calculations

1 ROA = 100 × Net income attributable to Kinder Morgan, Inc. ÷ Total assets
= 100 × 2,190 ÷ 74,157 = 2.95%

2 Adjusted ROA = 100 × Adjusted net income attributable to Kinder Morgan, Inc. ÷ Adjusted total assets
= 100 × 2,907 ÷ 73,300 = 3.97%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Kinder Morgan Inc. adjusted ROA deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.