Kinder Morgan, Inc. announced that the Pembina Pipeline Corporation has acquired the U.S. portion of the Cochin Pipeline for $1.546 billion. In addition, Pembina has acquired all of the outstanding common equity of Kinder Morgan Canada Limited (TSX: KML), including the 70 percent majority voting interest held by Kinder Morgan Inc. (NYSE: KMI) (the Arrangement). Under the Arrangement, KMI will receive .3068 shares of Pembina for each KML share it holds. This exchange ratio results in KMI receiving approximately 25 million shares of Pembina stock for KMI’s 70 percent interest in KML, which equates to slightly less than 5 percent of Pembina’s common equity. KMI expects to ultimately convert these shares into cash in an opportunistic and non-disruptive manner.

As discussed in the December 5, 2019 press release announcing our 2020 budget guidance, KMI intends to use the proceeds from the Pembina transactions to pay down debt – creating approximately $1.2 billion of balance sheet/borrowing flexibility in 2020 (relative to KMI’s long-term leverage target of 4.5x Net Debt to Adjusted EBITDA), which provides attractive optionality. KMI can retain that financial flexibility or use some or all of it to repurchase shares or invest in attractive projects. For illustrative purposes only, using $1.2 billion for share repurchases or to invest in projects could increase the company’s 2020 DCF/share growth from 3 percent to 5 or 6 percent, respectively, assuming a full year benefit from the repurchases or projects.

About Kinder Morgan, Inc.

Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy infrastructure companies in North America. Our mission is to provide energy transportation and storage services in a safe, efficient and environmentally responsible manner for the benefit of people, communities and businesses. Our vision is delivering energy to improve lives and create a better world. We own an interest in or operate approximately 83,000 miles of pipelines and 146 terminals. Our pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO2 and other products, and our terminals transload and store liquid commodities including petroleum products, ethanol and chemicals, and bulk products, including petroleum coke, metals and ores.

About Pembina

Calgary-based Pembina Pipeline Corporation (TSX: PPL; NYSE: PBA) is a leading transportation and midstream service provider that has been serving North America's energy industry for 65 years. Pembina owns an integrated system of pipelines that transport various hydrocarbon liquids and natural gas products produced primarily in western Canada. The Company also owns gas gathering and processing facilities; an oil and natural gas liquids infrastructure and logistics business; is growing an export terminals business; and is currently constructing a petrochemical facility to convert propane into polypropylene.

Pembina's integrated assets and commercial operations along the majority of the hydrocarbon value chain allow it to offer a full spectrum of midstream and marketing services to the energy sector. Pembina is committed to identifying additional opportunities to connect hydrocarbon production to new demand locations through the development of infrastructure that would extend Pembina's service offering even further along the hydrocarbon value chain.

These new developments will contribute to ensuring that hydrocarbons produced in the Western Canadian Sedimentary Basin and the other basins where Pembina operates can reach the highest value markets throughout the world.