# EDGAR Filing Document

**Accession Number:** 0001506307
**File Stem:** 0000000000-23-003113
**Filing Date:** 2023-3
**Character Count:** 28363
**Document Hash:** 0c862615637ea2942d9331daceca2b7d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000000000-23-003113.hdr.sgml**: 20230711

**ACCESSION NUMBER**: 0000000000-23-003113

**CONFORMED SUBMISSION TYPE**: UPLOAD

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20230328

**FILED FOR**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** KINDER MORGAN, INC.
- **CENTRAL INDEX KEY:** 0001506307
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATURAL GAS TRANSMISSION [4922]
- **IRS NUMBER:** 260238387
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** UPLOAD

**BUSINESS ADDRESS:**
- **STREET 1:** 1001 LOUISIANA STREET
- **STREET 2:** SUITE 1000
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77002
- **BUSINESS PHONE:** 713-369-9000

**MAIL ADDRESS:**
- **STREET 1:** 1001 LOUISIANA STREET
- **STREET 2:** SUITE 1000
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77002

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Kinder Morgan Holdco LLC
- **DATE OF NAME CHANGE:** 20101122
**PUBLIC REFERENCE ACCESSION NUMBER**: 0001506307-23-000023

## Text-Extract

```

United States securities and exchange commission logo

                              March 28, 2023

       David Michels
       Chief Financial Officer
       Kinder Morgan, Inc.
       1001 Louisiana Street, Suite 1000
       Houston, Texas 77002

                                                        Re: Kinder Morgan, Inc.
                                                            Form 10-K for the
Fiscal Year ended December 31, 2022
                                                            Filed February 8,
2023
                                                            File No. 001-35081

       Dear David Michels:

              We have limited our review of your filing to the financial
statements and related
       disclosures and have the following comments. In some of our comments, we
may ask you to
       provide us with information so we may better understand your disclosure.

              Please respond to these comments within ten business days by
providing the requested
       information or advise us as soon as possible when you will respond. If
you do not believe our
       comments apply to your facts and circumstances, please tell us why in
your response.

                                                        After reviewing your
response to these comments, we may have additional comments.

       Form 10-K for the Fiscal Year ended December 31, 2022

       Management's Discussion and Analysis
       Results of Operations
       Overview, page 39

   1.                                                   We note your disclosure
indicating that you evaluate performance primarily using various
                                                        non-GAAP measures and,
from your disclosures beginning on page 42, it also appears that
                                                        you have not provided a
discussion and analysis that includes the consolidated measures
                                                        of revenues, cost of
sales, or operations and maintenance expense.

                                                        The guidance in Item
303(a) and (b)(2) of Regulation S-K requires a discussion and
                                                        analysis of the
consolidated financial statements, including (i) significant components of
                                                        revenues and expenses
that would be material to an understanding of the results of
                                                        operations; (ii) known
trends or uncertainties that have had or that are reasonably likely to
                                                        have a material
favorable or unfavorable impact on revenues; (iii) events that are
 David Michels
FirstName  LastNameDavid Michels
Kinder Morgan,  Inc.
Comapany
March      NameKinder Morgan, Inc.
       28, 2023
March2 28, 2023 Page 2
Page
FirstName LastName
         reasonably likely to cause a material change in the relationship
between costs and
         revenues; and (iv) the extent to which material changes in revenues
are attributable to
         changes in prices or to changes in the volume or amount of goods or
services being sold.

         Please expand your discussion and analysis to address revenues, cost
of sales, and
         operations and maintenance expense on a consolidated basis, including
details that are
         responsive to the requirements referenced above.
Non-GAAP Financial Measures, page 44

2.       We note that you describe various non-GAAP measures and the reasons
you believe these
         are useful although we generally do not see disclosures clarifying how
management has
         actually considered or utilized the measures in any way relative to
the reasons identified,
         with regard to performance, liquidity, or resource allocation
decisions.

         For example, you indicate that Adjusted Earnings reflects on your
ability to generate
         earnings; DCF is used in evaluating performance and in measuring and
estimating the
         ability of your assets to generate cash earnings that could be used
for discretionary
         purposes; Adjusted Segment EBDA is used in your analysis of segment
performance and
         provides insight into the ability of your segments to generate cash
earnings on an ongoing
         basis; and Adjusted EBITDA and Net Debt are used in evaluating
leverage.

         Tell us how these measures have served in the manner that you suggest
and the reasons
         why you have not provided corresponding disclosures.
3.       We note that you identify 163 or more numerical measures as non-GAAP
measures in
         the tabulations on pages 43-55, and that many of the reconciliations
among these
         tabulations utilize non-GAAP reconciling items, incomplete details of
the reconciling
         items (e.g. certain items), and intermediary non-GAAP measures.

         It appears that you would need to substantially revise these
disclosures to comply
         with Item 10(e) of Regulation S-K. To the extent that you wish to
retain this information,
         please submit revisions that you propose to address the following
points.

                Total Segment EBDA on pages 42 and 43 should be identified as a
non-GAAP
              measure, consistent with the guidance in the answer to C&DI
Question 104.04, and a
              separate and distinct reconciliation should be provided from
gross margin in
              accordance with GAAP as the most directly comparable GAAP
measure.

                Your references to Segment EBDA as a GAAP measure should be
revised to clarify
              that while you are disclosing the measure in Note 16 to your
financial statements
              pursuant to FASB ASC 280, as a segment performance measure
selected and utilized
              by your CODM, the composition of the measure is not addressed nor
prescribed by
              generally accepted accounting principles.
 David Michels
FirstName  LastNameDavid Michels
Kinder Morgan,  Inc.
Comapany
March      NameKinder Morgan, Inc.
       28, 2023
March3 28, 2023 Page 3
Page
FirstName LastName
                The individual components of the "Certain Items" referenced in
the
              tabulations should be separately identified and quantified in
each tabulation.

                The line items and columns reflecting adjustments that have the
effect of (i)
              excluding amounts that are included in the most directly
comparable GAAP measure,
              or (ii) including amounts that are excluded from the most
directly comparable GAAP
              measure, should be clearly identified as non-GAAP measures,
consistent with the
              guidance in the answer to C&DI Question 100.05, and independently
reconciled to
              the most directly comparable GAAP measure.

                You presentation of non-GAAP measures in the tabulation on page
43 and use of
              non-GAAP measures in advance of GAAP measures in several
reconciliations,
              should be removed or revised to conform to the guidance on
prominence in the
              answers to C&DI Questions 102.10(a) and 102.10(b).

                The tabulation on page 44 presently shows reconciliations
between Adjusted
              Segment EBDA, Adjusted EBITDA, and DCF; and would therefore
appear to require
              disaggregation into three separate reconciliations, each starting
with the most directly
              comparable GAAP measure, to comply with Item 10(e).

                The reconciliation on page 45 between Net income attributable
to Kinder Morgan,
              Inc. and Adjusted EBITDA appears to include several reconciling
items that have
              been adjusted for "Certain Items" in addition to the "Certain
Items" listed in the first
              section of the table. We believe that you would need to provide
separate line items
              for each reconciling item rather than using a composition of
amounts or pre-adjusted
              non-GAAP measures as reconciling items.

                Given your columnar reconciliation approach in tabulations on
pages 43, 48, 50, 53,
              and 55, and considering that zeros are shown as adjustments for
many line items,
              many summations are inappropriately identified as non-GAAP
measures and should
              therefore be revised or replaced with a presentation that retains
GAAP labeling for
              GAAP measures, and non-GAAP labeling for non-GAAP measures.
4.       Given your extensive use of adjustments for    Certain Items    in
calculating your non-
         GAAP measures Adjusted Earnings, Adjusted Segment EBDA, Distributable
Cash Flow
         (   DCF   ), and Adjusted EBITDA, tell us why you have not eliminated
the $32 million in
         gains on divestitures of long-lived assets reported on page 89 in
computing your non-
         GAAP measures, considering the guidance in the answer to C&DI Question
100.03.
5.       Tell us why you believe the adjustments for    joint venture DD&A and
income tax
         expense    utilized in calculating your non-GAAP DCF and Adjusted
EBITDA measures,
         would not constitute individually tailored recognition and measurement
methods that are
         contrary to GAAP and the guidance in the answer to C&DI Question
100.04.
 David Michels
FirstName  LastNameDavid Michels
Kinder Morgan,  Inc.
Comapany
March      NameKinder Morgan, Inc.
       28, 2023
March4 28, 2023 Page 4
Page
FirstName LastName
         Also explain to us why you believe the specific adjustments are
relevant to each of the
         non-GAAP measures in which they are utilized, and consistent with the
reasons that you
         have described for reporting the non-GAAP measures.
6.       Given your disclosure indicating DCF is utilized not only as a
performance measure but
         also in measuring and estimating the ability of your assets to
generate cash earnings that
         could be used for discretionary purposes, also considering your
disclosure of DCF per
         share and dividends per share on page 44, and the associated
commentary in your earnings
         releases, it appears that DCF is being utilized as a non-GAAP
liquidity measure.

         We believe that you would need to provide a reconciliation from
operating cash flows as
         the most comparable GAAP based measure and remove the DCF per share
metric,
         consistent with the answer to C&DI Question 102.05.
7.       We note your disclosure in the last paragraph on page 39 stating
"Management
         compensates for the limitations of these non-GAAP financial measures
by reviewing our
         comparable GAAP measures, understanding the differences between the
measures and
         taking this information into account in its analysis and its
decision-making processes."

         Tell us which specific GAAP measures are referenced with this
statement and describe
         the information that you have considered or utilized based on GAAP
measures in your
         analysis and decision-making processes, incremental to your non-GAAP
measures.

         Provide us with a complete list of GAAP measures of segment operations
that
         are available for use by your CODM in conjunction with decisions that
require assessing
         performance and allocating resources, and a comprehensive description
of all periodic
         management reports that are viewed by your CODM.
Liquidity and Capital Resources
Capital Expenditures, page 59

8.       We note your disclosure indicating that you distinguish between
sustaining and expansion
         capital expenditures based on whether the expenditure will maintain or
increase
         throughput capacity, and we see that you report $901 million and
$1,709 million in
         sustaining and expansion capital expenditures for 2022.

         Please expand your disclosure to clarify how the amount of your
sustaining capital
         expenditures compares to the average that would be necessary to
sustain throughput over
         the long term, describe the implications of expansion capital
expenditures on future
         sustaining capital expenditures, and considering that depreciation and
         amortization reflects an allocation of the costs of physical assets
over their useful lives,
         address the difference between your sustaining capital expenditures
and the depreciation
         and amortization of $2,186 million that you report for the period.

         Also revise your disclosure in footnote (a) indicating that you have
included $140 million
         "...for sustaining capital expenditures from unconsolidated joint
ventures, reduced by
 David Michels
Kinder Morgan, Inc.
March 28, 2023
Page 5
         consolidated joint venture partners    sustaining capital
expenditures," to clarify your role as
         the apparent recipient of funds from unconsolidated entities, and the
reasons that you
         would be reporting these as your capital expenditures, and why these
would be offset by
         capital expenditures made by partners in consolidated entities.
Financial Statements
Note 2 - Summary of Significant Accounting Policies
Cost of Sales, page 83

9.       We note that you describe cost of sales as cost to purchase energy
commodities sold,
         including natural gas, crude oil, NGL and other refined petroleum
products and the effects
         of certain hedging activities, although excluding the costs of crude
oil, gas and CO2
         producing activities, which appear to be reported as operations and
maintenance expense.
         We also note that your measure excludes depreciation, depletion and
amortization.

         Please revise your presentation on page 71 to separately identify the
excluded amounts
         applicable to cost of sales in accordance with GAAP, consistent with
the guidance in SAB
         Topic 11:B, and considering the associated guidance on inventory and
contract accounting
         in FASB ASC 330-10-30-1 and 340-40-25-7, and the requirements
pertaining to costs of
         tangible goods sold in Rule 5-03 of Regulation S-X.

       In closing, we remind you that the company and its management are
responsible for the
accuracy and adequacy of their disclosures, notwithstanding any review,
comments, action or
absence of action by the staff.

      You may contact Robert Babula, Staff Accountant at (202) 551-3339, or
Karl Hiller,
Branch Chief at (202) 551-3686 with any questions.

FirstName LastNameDavid Michels                                 Sincerely,
Comapany NameKinder Morgan, Inc.
                                                                Division of
Corporation Finance
March 28, 2023 Page 5                                           Office of
Energy & Transportation
FirstName LastName

```

### Attached PDF Documents

**Attachment 1:** `filename1`

![img-0.jpeg](img-0.jpeg)

CORPORATION FINANCE

# UNITED STATES  
SECURITIES AND EXCHANGE COMMISSION  
WASHINGTON, D.C. 20549

March 28, 2023

David Michels  
Chief Financial Officer  
Kinder Morgan, Inc.  
1001 Louisiana Street, Suite 1000  
Houston, Texas 77002

**Re: Kinder Morgan, Inc.**

**Form 10-K for the Fiscal Year ended December 31, 2022**

**Filed February 8, 2023**

**File No. 001-35081**

Dear David Michels:

We have limited our review of your filing to the financial statements and related disclosures and have the following comments. In some of our comments, we may ask you to provide us with information so we may better understand your disclosure.

Please respond to these comments within ten business days by providing the requested information or advise us as soon as possible when you will respond. If you do not believe our comments apply to your facts and circumstances, please tell us why in your response.

After reviewing your response to these comments, we may have additional comments.

Form 10-K for the Fiscal Year ended December 31, 2022

Management's Discussion and Analysis

Results of Operations

Overview, page 39

1. We note your disclosure indicating that you evaluate performance primarily using various non-GAAP measures and, from your disclosures beginning on page 42, it also appears that you have not provided a discussion and analysis that includes the consolidated measures of revenues, cost of sales, or operations and maintenance expense.

The guidance in Item 303(a) and (b)(2) of Regulation S-K requires a discussion and analysis of the consolidated financial statements, including (i) significant components of revenues and expenses that would be material to an understanding of the results of operations; (ii) known trends or uncertainties that have had or that are reasonably likely to have a material favorable or unfavorable impact on revenues; (iii) events that are

David Michels
Kinder Morgan, Inc.
March 28, 2023
Page 2

reasonably likely to cause a material change in the relationship between costs and revenues; and (iv) the extent to which material changes in revenues are attributable to changes in prices or to changes in the volume or amount of goods or services being sold.

Please expand your discussion and analysis to address revenues, cost of sales, and operations and maintenance expense on a consolidated basis, including details that are responsive to the requirements referenced above.

Non-GAAP Financial Measures, page 44

2. We note that you describe various non-GAAP measures and the reasons you believe these are useful although we generally do not see disclosures clarifying how management has actually considered or utilized the measures in any way relative to the reasons identified, with regard to performance, liquidity, or resource allocation decisions.

For example, you indicate that Adjusted Earnings reflects on your ability to generate earnings; DCF is used in evaluating performance and in measuring and estimating the ability of your assets to generate cash earnings that could be used for discretionary purposes; Adjusted Segment EBDA is used in your analysis of segment performance and provides insight into the ability of your segments to generate cash earnings on an ongoing basis; and Adjusted EBITDA and Net Debt are used in evaluating leverage.

Tell us how these measures have served in the manner that you suggest and the reasons why you have not provided corresponding disclosures.

3. We note that you identify 163 or more numerical measures as non-GAAP measures in the tabulations on pages 43-55, and that many of the reconciliations among these tabulations utilize non-GAAP reconciling items, incomplete details of the reconciling items (e.g. certain items), and intermediary non-GAAP measures.

It appears that you would need to substantially revise these disclosures to comply with Item 10(e) of Regulation S-K. To the extent that you wish to retain this information, please submit revisions that you propose to address the following points.

- Total Segment EBDA on pages 42 and 43 should be identified as a non-GAAP measure, consistent with the guidance in the answer to C&DI Question 104.04, and a separate and distinct reconciliation should be provided from gross margin in accordance with GAAP as the most directly comparable GAAP measure.
- Your references to Segment EBDA as a GAAP measure should be revised to clarify that while you are disclosing the measure in Note 16 to your financial statements pursuant to FASB ASC 280, as a segment performance measure selected and utilized by your CODM, the composition of the measure is not addressed nor prescribed by generally accepted accounting principles.

David Michels  
Kinder Morgan, Inc.  
March 28, 2023  
Page 3

- • The individual components of the 'Certain Items' referenced in the tabulations should be separately identified and quantified in each tabulation.
- • The line items and columns reflecting adjustments that have the effect of (i) excluding amounts that are included in the most directly comparable GAAP measure, or (ii) including amounts that are excluded from the most directly comparable GAAP measure, should be clearly identified as non-GAAP measures, consistent with the guidance in the answer to C&DI Question 100.05, and independently reconciled to the most directly comparable GAAP measure.
- • You presentation of non-GAAP measures in the tabulation on page 43 and use of non-GAAP measures in advance of GAAP measures in several reconciliations, should be removed or revised to conform to the guidance on prominence in the answers to C&DI Questions 102.10(a) and 102.10(b).
- • The tabulation on page 44 presently shows reconciliations between Adjusted Segment EBDA, Adjusted EBITDA, and DCF; and would therefore appear to require disaggregation into three separate reconciliations, each starting with the most directly comparable GAAP measure, to comply with Item 10(e).
- • The reconciliation on page 45 between Net income attributable to Kinder Morgan, Inc. and Adjusted EBITDA appears to include several reconciling items that have been adjusted for 'Certain Items' in addition to the 'Certain Items' listed in the first section of the table. We believe that you would need to provide separate line items for each reconciling item rather than using a composition of amounts or pre-adjusted non-GAAP measures as reconciling items.
- • Given your columnar reconciliation approach in tabulations on pages 43, 48, 50, 53, and 55, and considering that zeros are shown as adjustments for many line items, many summations are inappropriately identified as non-GAAP measures and should therefore be revised or replaced with a presentation that retains GAAP labeling for GAAP measures, and non-GAAP labeling for non-GAAP measures.1. 4. Given your extensive use of adjustments for 'Certain Items' in calculating your non-GAAP measures Adjusted Earnings, Adjusted Segment EBDA, Distributable Cash Flow ('DCF'), and Adjusted EBITDA, tell us why you have not eliminated the \$32 million in gains on divestitures of long-lived assets reported on page 89 in computing your non-GAAP measures, considering the guidance in the answer to C&DI Question 100.03.
2. 5. Tell us why you believe the adjustments for 'joint venture DD&A and income tax expense' utilized in calculating your non-GAAP DCF and Adjusted EBITDA measures, would not constitute individually tailored recognition and measurement methods that are contrary to GAAP and the guidance in the answer to C&DI Question 100.04.

David Michels  
Kinder Morgan, Inc.  
March 28, 2023  
Page 4

Also explain to us why you believe the specific adjustments are relevant to each of the non-GAAP measures in which they are utilized, and consistent with the reasons that you have described for reporting the non-GAAP measures.

6. Given your disclosure indicating DCF is utilized not only as a performance measure but also in measuring and estimating the ability of your assets to generate cash earnings that could be used for discretionary purposes, also considering your disclosure of DCF per share and dividends per share on page 44, and the associated commentary in your earnings releases, it appears that DCF is being utilized as a non-GAAP liquidity measure.

We believe that you would need to provide a reconciliation from operating cash flows as the most comparable GAAP based measure and remove the DCF per share metric, consistent with the answer to C&DI Question 102.05.

7. We note your disclosure in the last paragraph on page 39 stating 'Management compensates for the limitations of these non-GAAP financial measures by reviewing our comparable GAAP measures, understanding the differences between the measures and taking this information into account in its analysis and its decision-making processes.'

Tell us which specific GAAP measures are referenced with this statement and describe the information that you have considered or utilized based on GAAP measures in your analysis and decision-making processes, incremental to your non-GAAP measures.

Provide us with a complete list of GAAP measures of segment operations that are available for use by your CODM in conjunction with decisions that require assessing performance and allocating resources, and a comprehensive description of all periodic management reports that are viewed by your CODM.

# Liquidity and Capital Resources  
Capital Expenditures, page 59

8. We note your disclosure indicating that you distinguish between sustaining and expansion capital expenditures based on whether the expenditure will maintain or increase throughput capacity, and we see that you report $901 million and $1,709 million in sustaining and expansion capital expenditures for 2022.

Please expand your disclosure to clarify how the amount of your sustaining capital expenditures compares to the average that would be necessary to sustain throughput over the long term, describe the implications of expansion capital expenditures on future sustaining capital expenditures, and considering that depreciation and amortization reflects an allocation of the costs of physical assets over their useful lives, address the difference between your sustaining capital expenditures and the depreciation and amortization of $2,186 million that you report for the period.

Also revise your disclosure in footnote (a) indicating that you have included $140 million '...for sustaining capital expenditures *from* unconsolidated joint ventures, reduced by

David Michels
Kinder Morgan, Inc.
March 28, 2023
Page 5

consolidated joint venture partners' sustaining capital expenditures," to clarify your role as the apparent recipient of funds from unconsolidated entities, and the reasons that you would be reporting these as your capital expenditures, and why these would be offset by capital expenditures made by partners in consolidated entities.

# Financial Statements

# Note 2 - Summary of Significant Accounting Policies

# Cost of Sales, page 83

9. We note that you describe cost of sales as cost to purchase energy commodities sold, including natural gas, crude oil, NGL and other refined petroleum products and the effects of certain hedging activities, although excluding the costs of crude oil, gas and CO2 producing activities, which appear to be reported as operations and maintenance expense. We also note that your measure excludes depreciation, depletion and amortization.

Please revise your presentation on page 71 to separately identify the excluded amounts applicable to cost of sales in accordance with GAAP, consistent with the guidance in SAB Topic 11:B, and considering the associated guidance on inventory and contract accounting in FASB ASC 330-10-30-1 and 340-40-25-7, and the requirements pertaining to costs of tangible goods sold in Rule 5-03 of Regulation S-X.

In closing, we remind you that the company and its management are responsible for the accuracy and adequacy of their disclosures, notwithstanding any review, comments, action or absence of action by the staff.

You may contact Robert Babula, Staff Accountant at (202) 551-3339, or Karl Hiller, Branch Chief at (202) 551-3686 with any questions.

Sincerely,

Division of Corporation Finance
Office of Energy & Transportation