Kinder Morgan has a large footprint of diversified and strategically located assets, and we are a market leader in most of our businesses.
For example, in North America, we are: Almost all of our assets are owned by KMP, one of the largest publicly traded pipeline master limited partnerships. KMP is comprised of five business segments - Natural Gas Pipelines, Products Pipelines, CO2, Terminals and Kinder Morgan Canada. We have been executing the same strategy since 1997. Our business model is simple. We own, operate, expand, build and acquire primarily midstream energy assets that provide a return substantially in excess of our capital costs, and then we distribute that excess to our limited partners and general partner. We have minimal exposure to commodity price volatility because we typically don't own the energy products that we transport, store or handle. As a result, our businesses are relatively stable and our fee-based assets have consistently generated superb cash flow in all types of market conditions. Where we do own the commodity, such as in our CO2 business, we hedge to lessen the impact of price swings. Our business model has worked well and KMP has delivered a compound average annual return of 26 percent to unitholders over the past 15 years. In addition to delivering value to our unitholders, our focus is on operating our assets safely to protect the public and the environment. We spend millions of dollars each year on integrity management programs and maintenance to operate our assets safely. At Kinder Morgan, we pride ourselves on being a different kind of energy company. What makes us different? It starts at the top with Chairman and CEO Richard D. Kinder, who earns a salary of $1 per year and does not receive a bonus, stock options or restricted stock grants. As a shareholder/unitholder, Kinder's financial rewards are directly aligned with the company's investors - if the company does well, he does well. We also eliminate unnecessary overhead expenses such as corporate aircraft, sponsorships, sports tickets and executive perks. In addition, we cap senior executives' base salaries far below industry standards. Their financial incentives, such as bonuses, are tied directly to the performance of the company and their own personal performances. Kinder Morgan has been conducting its business transparently long before it became a corporate buzz word. To our knowledge, we are the only S&P 500 company that publishes its annual budget on its web site, which enables investors and others to follow our progress throughout the year. We also post our environmental, health and safety (EHS) performance on our web site. KMP continues to outperform the industry averages in most EHS categories. Kinder Morgan does not have a Political Action Committee (PAC), nor do we make any political contributions. Any political contributions made by executives or employees are made individually as private citizens with their own personal money. KMR is a limited partner in and manages and controls the business and affairs of KMP. KMR has no properties and its success is dependent upon its operation and management of KMP and KMP's resulting performance. KMI owns the general partner and limited partner units in KMP. KMI also owns 20 percent of and operates Natural Gas Pipeline Company of America (NGPL), which serves the high-demand Chicago market. Kinder Morgan has approximately 8,000 employees and has a combined enterprise value of approximately $65 billion. |
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