Document_And_Entity_Informatio
Document And Entity Information (USD $) | 9 Months Ended | |||
Sep. 30, 2013 | Jun. 29, 2012 | Oct. 25, 2013 | Oct. 25, 2013 | |
Listed Shares [Member] | Voting Shares [Member] | |||
Entity Information [Line Items] | ||||
Entity Registrant Name | KINDER MORGAN MANAGEMENT LLC | |||
Entity Central Index Key | 1135017 | |||
Current Fiscal Year End Date | -19 | |||
Entity Well-known Seasoned Issuer | Yes | |||
Entity Voluntary Filers | No | |||
Entity Current Reporting Status | Yes | |||
Entity Filer Category | Large Accelerated Filer | |||
Entity Public Float | $6,359,669,734 | |||
Entity Common Stock, Shares Outstanding | 122,287,354 | 4 | ||
Document Fiscal Year Focus | 2013 | |||
Document Fiscal Period Focus | Q3 | |||
Document Type | 10-Q | |||
Amendment Flag | FALSE | |||
Document Period End Date | 30-Sep-13 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ||||
Equity in earnings (loss) of Kinder Morgan Energy Partners, L.P. | $69 | ($9) | $340 | ($94) |
Income tax expense (benefit) | 22 | -6 | 149 | -31 |
Net income (loss) | $47 | ($3) | $191 | ($63) |
Loss per share Basic and Diluted (in dollars per share) | $0.39 | ($0.03) | $1.61 | ($0.61) |
Number of shares used in computing loss per share, Basic and diluted (in shares) | 121 | 107 | 118 | 103 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income (loss) | $47 | ($3) | $191 | ($63) |
Other comprehensive income, net of tax: | ||||
Change in fair value of derivatives utilized for hedging purposes | -11 | -9 | -8 | 11 |
Reclassification of change in fair value of derivatives to net income | 3 | -1 | 2 | 1 |
Foreign currency translation adjustments | 5 | 7 | -8 | 7 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 3 | 0 | 3 | 0 |
Total other comprehensive (loss) | 0 | -3 | -11 | 19 |
Comprehensive (loss) income | $47 | ($6) | $180 | ($44) |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Other comprehensive income (loss). net of tax: | ||||
Change in fair value of derivatives utilized for hedging purposes, tax benefit (expense) | $7 | $5 | $5 | ($6) |
Reclassification of change in fair value of derivatives to net income, tax benefit (expense) | -2 | 0 | -1 | -1 |
Change in foreign currency translation adjustments, tax benefit (expense) | -3 | -4 | 4 | -4 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax | ($2) | $0 | ($2) | $0 |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current Assets | ||
Accounts receivable, related party | $15 | $12 |
Other current assets | 1 | 0 |
Total current assets | 16 | 12 |
Assets, Noncurrent [Abstract] | ||
Investment in Kinder Morgan Energy Partners, L.P. | 3,922 | 3,454 |
Deferred income taxes | 0 | 10 |
Total Assets | 3,938 | 3,476 |
Current liabilities | ||
Accounts payable | 4 | 4 |
Accrued other current liabilities | 12 | 8 |
Total current liabilities | 16 | 12 |
Liabilities, Noncurrent [Abstract] | ||
Deferred income taxes | 44 | 0 |
Equity [Abstract] | ||
Retained deficit | -2,013 | -1,755 |
Accumulated other comprehensive income | 7 | 18 |
Total Shareholders' Equity | 3,878 | 3,464 |
Total Liabilities and Shareholders' Equity | 3,938 | 3,476 |
Voting Shares [Member] | ||
Equity [Abstract] | ||
Common shares | 0 | 0 |
Listed Shares [Member] | ||
Equity [Abstract] | ||
Common shares | $5,884 | $5,201 |
CONSOLIDATED_BALANCE_SHEETS_Un1
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) | Sep. 30, 2013 | Dec. 31, 2012 |
Voting Shares [Member] | ||
Common Stock, Shares, Issued | 4 | 3 |
Common shares outstanding (in shares) | 4 | 3 |
Listed Shares [Member] | ||
Common Stock, Shares, Issued | 122,287,354 | 115,118,335 |
Common shares outstanding (in shares) | 122,287,354 | 115,118,335 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Flows From Operating Activities | ||||
Net income (loss) | $47 | ($3) | $191 | ($63) |
Adjustments to reconcile net loss to net cash flows from operating activities | ||||
Deferred income taxes | 149 | -31 | ||
Equity in (earnings) loss of Kinder Morgan Energy Partners, L.P. | -69 | 9 | -340 | 94 |
Changes in components of working capital | ||||
Accounts receivable, related party | -3 | -3 | ||
Other current assets | -1 | 0 | ||
Increase (Decrease) in Accounts Payable | 0 | 2 | ||
Accrued other current liabilities | 4 | 1 | ||
Net Cash Provided by Operating Activities | 0 | 0 | ||
Payments to Acquire Equity Method Investments | -145 | -727 | ||
Cash Flows From Investing Activities | ||||
Net Cash Used in Investing Activities | -145 | -727 | ||
Proceeds from Issuance of Common Stock | 145 | 145 | 727 | |
Cash Flows From Financing Activities | ||||
Net Cash Provided by Financing Activities | 145 | 727 | ||
Net increase in Cash and Cash Equivalents | 0 | 0 | ||
Cash and Cash Equivalents, beginning of period | 0 | 0 | ||
Cash and Cash Equivalents, end of period | $0 | $0 | $0 | $0 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity Statement (USD $) | Total | Common Stock [Member] | Common Stock [Member] | Retained Deficit [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Shareholders' Equity, Total [Member] | KMI drop-down with KMP [Member] | KMP Acquisition of Copano [Member] |
In Millions, except Share data | Voting Shares [Member] | Listed Shares [Member] | Common Stock [Member] | Common Stock [Member] | ||||
Listed Shares [Member] | Listed Shares [Member] | |||||||
Total Shareholders' Equity at Dec. 31, 2011 | $0 | $3,760 | ($1,256) | $0 | ||||
Shareholders' Equity (in shares) at Dec. 31, 2011 | 2 | 98,509,389 | ||||||
Shares distributions (in shares) | 0 | 4,646,736 | ||||||
Share distributions | 0 | 347 | -347 | |||||
Stock Issued During Period, Shares, New Issues | 10,120,000 | |||||||
Stock Issued During Period, Value, New Issues | 727 | |||||||
Tax impact of KMI drop-down to KMP | 235 | 0 | ||||||
Net income (loss) | -63 | -63 | ||||||
Change in fair value of derivatives utilized for hedging purposes | 11 | 11 | ||||||
Reclassification of change in fair value of derivatives to net income | 1 | 1 | ||||||
Foreign currency translation adjustments | 7 | |||||||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 0 | 0 | ||||||
Total Shareholders' Equity at Sep. 30, 2012 | 0 | 5,069 | -1,666 | 19 | 3,422 | |||
Shareholders' Equity (in shares) at Sep. 30, 2012 | 2 | 113,276,125 | 113,276,127 | |||||
Total Shareholders' Equity at Dec. 31, 2012 | 3,464 | 0 | 5,201 | -1,755 | 18 | |||
Shareholders' Equity (in shares) at Dec. 31, 2012 | 3 | 115,118,335 | ||||||
Shares distributions (in shares) | 1 | 5,411,719 | ||||||
Share distributions | 0 | 449 | -449 | |||||
Stock Issued During Period, Shares, New Issues | 1,757,300 | 1,757,300 | ||||||
Stock Issued During Period, Value, New Issues | 145 | |||||||
Tax impact of KMI drop-down to KMP | -89 | 26 | 63 | |||||
Net income (loss) | 191 | 191 | ||||||
Change in fair value of derivatives utilized for hedging purposes | -8 | -8 | ||||||
Reclassification of change in fair value of derivatives to net income | 2 | 2 | ||||||
Foreign currency translation adjustments | -8 | |||||||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 3 | 3 | ||||||
Total Shareholders' Equity at Sep. 30, 2013 | $3,878 | $0 | $5,884 | ($2,013) | $7 | $3,878 | ||
Shareholders' Equity (in shares) at Sep. 30, 2013 | 4 | 122,287,354 | 122,287,358 |
General
General | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General |
Organization | |
Kinder Morgan Management, LLC is a publicly traded Delaware limited liability company (“LLC”) that was formed on February 14, 2001. KMGP, which is indirectly wholly owned by KMI, is the general partner of KMP and owns all of our voting shares. KMGP, pursuant to a delegation of control agreement among us, KMGP and KMP, has delegated to us, to the fullest extent permitted under Delaware law and KMP’s limited partnership agreement, all of its rights and powers to manage and control the business and affairs of KMP, subject to KMGP’s right to approve specified actions. We are a limited partner in KMP through our ownership of its i-units, and manage and control its business and affairs pursuant to the delegation of control agreement. Our success is dependent upon our operation and management of KMP and its resulting performance. See Note 5 for summarized income statement information for KMP. | |
We have prepared our accompanying unaudited consolidated financial statements under the rules and regulations of the SEC. These rules and regulations conform to the accounting principles contained in the FASB’s Accounting Standards Codification. Under such rules and regulations, we have condensed or omitted certain information and notes normally included in financial statements prepared in conformity with the codification. We believe, however, that our disclosures are adequate to make the information presented not misleading. | |
Our accompanying consolidated financial statements reflect normal adjustments, and also recurring adjustments that are, in the opinion of management, necessary for a fair statement of our financial results for the interim periods, and certain amounts from prior periods have been reclassified to conform to the current presentation. Interim results are not necessarily indicative of results for a full year; accordingly, you should read these interim consolidated financial statements in conjunction with our consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2012 (2012 Form 10-K). For additional information see KMP’s Annual Report on Form 10-K for the year ended December 31, 2012 (KMP 2012 Form 10-K) and KMP’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2013. | |
Significant KMP Transactions | |
On May 1, 2013, KMP completed the acquisition of Copano, for a total purchase price of approximately $5.2 billion, including the assumption of debt and all other liabilities. It was a 100% unit for unit transaction with an exchange ratio of 0.4563 KMP common units for each Copano common unit. | |
Effective August 1, 2012, KMP acquired from KMI a 100% ownership interest in TGP and a 50% ownership interest in EPNG for an aggregate consideration of approximately $6.2 billion (including KMP’s proportional share of assumed debt borrowings as of August 1, 2012). In this report, we refer to this acquisition of assets by KMP from KMI as the August 2012 drop-down transaction and the combined group of assets acquired by KMP from KMI effective August 1, 2012 as the August 2012 drop-down asset group. | |
Effective March 1, 2013, KMP acquired from KMI the remaining 50% ownership interest it did not already own in both EPNG and the El Paso midstream assets or Kinder Morgan Altamont LLC (formerly, El Paso Midstream Investment Company, L.L.C.), which we refer to in this report as the midstream assets, for an aggregate consideration of approximately $1.7 billion (including KMP’s proportional share of assumed debt borrowings as of March 1, 2013). In this report, we refer to this acquisition of assets by KMP from KMI as the March 2013 drop-down transaction; the combined group of assets acquired by KMP from KMI as the March 2013 drop-down asset group; and the combined August 2012 drop-down asset group (described above) and the March 2013 drop-down asset group as the drop-down asset groups. KMP acquired its initial 50% ownership interest in the midstream assets from an investment vehicle affiliated with Kohlberg, Kravis Roberts and Co. L.P. (“KKR”) effective June 1, 2012. | |
KMI acquired all of the assets included in the drop-down asset groups as part of its acquisition of El Paso Corporation on May 25, 2012. KMI accounted for its acquisition of the drop-down asset groups under the acquisition method of accounting, and KMP accounted for the drop-down transactions as combinations of entities under common control. Accordingly, the KMP information in Note 5 has been prepared to reflect the transfer of TGP, EPNG and the remaining 50% of ownership interests in the midstream assets from KMI to KMP as if such transfers had taken place on the date when TGP, EPNG and the midstream assets met the accounting requirements for entities under common control-May 25, 2012 for both TGP and EPNG, and June 1, 2012 for the midstream assets. Specifically, KMP (i) consolidates its now 100% investments in the drop-down asset groups as of the effective dates of common control, recognizing the acquired assets and assumed liabilities at KMI’s carrying value (including all of KMI’s purchase accounting adjustments); (ii) recognized any difference between its purchase price and the carrying value of the net assets it acquired as an adjustment to its Partners’ Capital (specifically, as an adjustment to its general partner’s and its noncontrolling interests’ capital interests); and (iii) retrospectively adjusted its consolidated financial statements, for any date after the effective dates of common control. | |
Additionally, because KMI both controls KMP and consolidates KMP’s financial statements into its consolidated financial statements as a result of its ownership of KMP’s general partner, KMP fully allocated to its general partner (i) the earnings of the drop-down asset groups for the periods beginning on the effective dates of common control (described above) and ending August 1, 2012 for the August 2012 drop-down asset group and March 1, 2013 for the March 2013 drop-down asset group, respectively, and (ii) incremental severance expense related to KMI’s acquisition of El Paso Corporation and allocated to KMP from KMI. These amounts are reported in “General Partner’s interest in pre-acquisition income from operations and severance expense of drop-down asset groups” in Note 5. The severance expense allocated to KMP was associated with the drop-down asset groups; however, KMP does not have any obligation to, nor did KMP pay any amounts related to this expense. | |
For all periods beginning after KMP’s acquisition dates of August 1, 2012 and March 1, 2013, respectively, KMP allocated its earnings (including the earnings from the drop-down asset groups) to all of its partners according to its partnership agreements. | |
Accounting for Investments in KMP | |
We use the equity method of accounting for our investment in KMP, a publicly traded limited partnership, with its common units traded on the New York Stock Exchange under the symbol “KMP.” We record, in the period in which it is earned, our share of the earnings of KMP attributable to the i-units we own. We receive distributions from KMP in the form of additional i-units, which increase the number of i-units we own. We issue additional shares (or fractions thereof) to our existing shareholders in an amount equal to the additional i-units received from KMP. At September 30, 2013, through our ownership of KMP i-units, we owned approximately 27.9% of all of KMP’s outstanding limited partner interests. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2013 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share |
Both basic and diluted earnings per share are computed based on the weighted-average number of shares outstanding during each period, adjusted for share splits. There are no securities outstanding that may be converted into or exercised for shares. |
Capitalization
Capitalization | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||
Capitalization | Capitalization | ||||||||||||||||
As discussed above in Note 1, KMI completed the March 2013 drop-down transaction with KMP during the first quarter of 2013 and during the second quarter of 2013, KMP acquired Copano. The March 2013 drop-down transaction was treated as an intercompany transfer of assets between KMI (an affiliate and shareholder of us) and KMP. The second quarter KMP acquisition of Copano in a unit for unit transaction with an exchange ratio of 0.4563 KMP common units for each Copano common unit resulted in KMP recording approximately $1.1 billion of nondeductible goodwill. Our and KMI’s accounting policy is to apply the look-through method of recording deferred taxes on the outside book tax basis difference in its investments without regard to nondeductible goodwill. The adjustments to our deferred tax liability as a result of (i) the intercompany transaction (including the associated transfer of nondeductible goodwill to KMP); and (ii) the increase in KMP’s nondeductible goodwill related to the Copano acquisition, are reflected as offsets to our shareholders’ equity. As a result of these two transactions, we have recorded a decrease of $89 million to our deferred tax liability and an offsetting increase to our shareholders’ equity in the nine months ended September 30, 2013. | |||||||||||||||||
On May 4, 2012, we entered into an equity distribution agreement with Credit Suisse Securities (USA) LLC (“Credit Suisse”). Pursuant to the provisions of the equity distribution agreement, we may sell from time to time through Credit Suisse, as our sales agent, our shares having an aggregate offering amount of up to $500 million. During the nine months ended September 30, 2013, we issued 1,757,300 of our shares pursuant to our equity distribution agreement with Credit Suisse. We received net proceeds of $145 million from the issuance of these shares and we used the proceeds to purchase additional KMP i-units. | |||||||||||||||||
Sales of shares pursuant to our equity distribution agreement are made by means of ordinary brokers’ transactions on the New York Stock Exchange at market prices, in block transactions or as otherwise agreed between us and Credit Suisse. Under the terms of this agreement, we also may sell shares to Credit Suisse as principal for its own account at a price agreed upon at the time of the sale. Any sale of shares to Credit Suisse as principal would be pursuant to the terms of a separate agreement between us and Credit Suisse. | |||||||||||||||||
Our equity distribution agreement provides us the right, but not the obligation, to sell shares in the future, at prices we deem appropriate. We retain at all times complete control over the amount and the timing of each sale, and we will designate the maximum number of shares to be sold through Credit Suisse, on a daily basis or otherwise as we and Credit Suisse agree. Credit Suisse will then use its reasonable efforts to sell, as our sales agent and on our behalf, all of the designated shares. We may instruct Credit Suisse not to sell shares if the sales cannot be effected at or above the price designated by us in any such instruction. Either we or Credit Suisse may suspend the offering of shares pursuant to the agreement by notifying the other party. | |||||||||||||||||
Share Distributions | |||||||||||||||||
Under the terms of our LLC agreement, except in connection with our liquidation, we do not pay cash distributions on our shares in cash but instead make distributions on our shares in additional shares or fractions of shares. At the same time KMP makes a distribution on its common units and i-units, we distribute on each of our shares that fraction of a share determined by dividing the amount of the cash distribution to be made by KMP on each common unit by the average closing market price of a share determined for the ten-trading day period ending on the trading day immediately prior to the ex-dividend date for our shares. The following table presents share distributions we have paid or declared in 2013. | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Equivalent distribution value per share declared for the period(a) | $ | 1.35 | $ | 1.26 | $ | 3.97 | $ | 3.69 | |||||||||
Total number of additional shares declared for the period(b) | 2,153,480 | 1,842,210 | 5,760,604 | 5,024,801 | |||||||||||||
Equivalent distribution value per share paid in the period(a) | $ | 1.32 | $ | 1.23 | $ | 3.91 | $ | 3.59 | |||||||||
Total number of additional share distributions made in the period(b) | 1,880,172 | 1,578,616 | 5,411,720 | 4,646,736 | |||||||||||||
__________ | |||||||||||||||||
(a) | This is the cash distribution for each KMP common unit declared for the period or paid in the period, as applicable, indicated and is used to calculate our distribution of shares as discussed above. Because of this calculation, the market value of the shares distributed on the date of distribution may be less or more than the cash distribution per common unit of KMP. | ||||||||||||||||
(b) | Three and nine months 2013 include a share distribution declared on October 16, 2013, payable on November 14, 2013 to shareholders of record as of October 31, 2013. This share distribution of 0.017610 shares per outstanding share (2,153,480 total shares) was determined by dividing $1.35, the cash amount to be distributed per KMP common unit by $76.659, the average of our shares’ closing market prices from October 15-28, 2013, the ten consecutive trading days preceding the date on which our shares began to trade ex-dividend under the rules of the New York Stock Exchange. |
Business_Activities_and_Relate
Business Activities and Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | |
Business Activities and Related Party Transactions | Business Activities and Related Party Transactions |
We do not receive a fee for our services under the delegation of control agreement, nor do we receive any margin or profit when we are reimbursed for expenses incurred. We incurred, on behalf of KMP, approximately $82 million and $245 million of expenses during the three and nine months ended September 30, 2013, respectively and approximately $73 million and $225 million of expenses during the three and nine months ended September 30, 2012, respectively. The expense reimbursements by KMP to us are accounted for as a reduction to the expense incurred by us. At September 30, 2013 and December 31, 2012, $15 million and $12 million, respectively, primarily receivables from KMP, are recorded in the caption “Accounts receivable - related party” in the accompanying interim consolidated balance sheets. | |
One of our affiliates provides, and incurs expense with respect to, payroll and related services to KMP. These expenses are reimbursed by KMP at cost. These expenses totaled approximately $93 million and $337 million during the three and nine months ended September 30, 2013, respectively and $91 million and $303 million during the three and nine months ended September 30, 2012, respectively. |
Summarized_Income_Statement_In
Summarized Income Statement Information for KMP | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||||||||||||||
Summarized Income Statement Information for KMP | Summarized Income Statement Information for KMP | ||||||||||||||||
Following is summarized income statement information for KMP (in millions). | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012(a) | 2013 | 2012(a) | ||||||||||||||
Revenues | $ | 3,381 | $ | 2,497 | $ | 9,059 | $ | 6,355 | |||||||||
Operating costs, expenses and other | 2,514 | 1,828 | 6,807 | 4,603 | |||||||||||||
Operating income | $ | 867 | $ | 669 | $ | 2,252 | $ | 1,752 | |||||||||
Loss from discontinued operations(b) | $ | — | $ | (131 | ) | $ | (2 | ) | $ | (682 | ) | ||||||
Net income(c) | $ | 697 | $ | 408 | $ | 2,499 | $ | 754 | |||||||||
Net income attributable to KMP | $ | 689 | $ | 405 | $ | 2,472 | $ | 743 | |||||||||
General Partner’s interest in pre-acquisition income from operations and severance expense of drop-down asset groups | $ | (2 | ) | $ | 62 | $ | 11 | $ | 41 | ||||||||
Remaining General Partner’s interest in income from continuing operations | $ | 436 | $ | 367 | $ | 1,260 | $ | 1,024 | |||||||||
General Partner’s interest in loss from discontinued operations | $ | — | $ | (2 | ) | $ | — | $ | (7 | ) | |||||||
Limited Partners’ interest in income from continuing operations | $ | 255 | $ | 106 | $ | 1,203 | $ | 353 | |||||||||
Limited Partners’ interest in loss from discontinued operations | $ | — | $ | (128 | ) | $ | (2 | ) | $ | (668 | ) | ||||||
____________ | |||||||||||||||||
(a) | Retrospectively adjusted as discussed in Note 1. | ||||||||||||||||
(b) | Represents amounts attributable to KMP’s FTC Natural Gas Pipelines disposal group. See Note 3 “Acquisitions and Divestitures” of the notes to the consolidated financial statements included in the KMP 2012 Form 10-K. The three and nine month 2012 amounts include $178 million and $827 million non-cash losses, respectively, from both costs to sell and the remeasurement of net assets to fair value. | ||||||||||||||||
(c) | The nine month 2013 amount includes (i) a $558 million gain from the remeasurement of KMP’s previously held 50% equity interest in Eagle Ford Gathering LLC to fair value; and (ii) $177 million increase in expense associated with adjustments to legal liabilities related to both transportation rate case and environmental matters. The three and nine month 2013 amounts include a $1 million decrease and a $140 million increase, respectively, after-tax loss and gain amounts from the sale of KMP’s investments in the Express pipeline system. | ||||||||||||||||
Notwithstanding the consolidation of KMP and its subsidiaries into KMI’s financial statements, except as explicitly disclosed, KMI is not liable for, and its assets are not available to satisfy, the obligations of KMP and/or its subsidiaries and vice versa. Responsibility for settlements of obligations reflected in KMI’s or KMP’s financial statements are a legal determination based on the entity that incurs the liability. |
Income_Taxes
Income Taxes | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Income Taxes | Income Taxes | ||||||||||||||||
We are an LLC that has elected to be treated as a corporation for federal income tax purposes. Our income taxes consist solely of deferred income tax. Deferred income tax assets and liabilities are recognized for temporary differences between the basis of our assets and liabilities for financial and tax reporting purposes. We have excluded non-deductible goodwill associated with our investment in KMP. Currently, our only such temporary difference results from our investment in KMP. Changes in tax legislation are included in the relevant computations in the period in which such changes are effective. | |||||||||||||||||
Income taxes included in our interim consolidated statements of income are as follows (in millions, except percentages): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Income tax expense (benefit) | $ | 22 | $ | (6 | ) | $ | 149 | $ | (31 | ) | |||||||
Effective tax rate | 31.9 | % | 66.7 | % | 43.8 | % | 33 | % | |||||||||
For the three months ended September 30, 2013, our effective tax rate was lower than the statutory federal rate of 35% primarily due to an increase in our share of non tax-deductible goodwill associated with our investment in KMP. For the nine months ended September 30, 2013, our effective tax rate was higher than the statutory federal rate of 35% primarily due to state income taxes and a decrease in our share of non tax-deductible goodwill associated with our investment in KMP. | |||||||||||||||||
For the three months ended September 30, 2012, our effective tax rate was higher than the statutory federal rate of 35% primarily due to an increase in our share of non tax-deductible goodwill associated with our investment in KMP and state income taxes. For the nine months ended September 30, 2012, our effective tax rate was lower than the statutory federal rate of 35% primarily due to a decrease in our share of non tax-deductible goodwill associated with our investment in KMP. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements (Notes) | 9 Months Ended |
Sep. 30, 2013 | |
Recent Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles | Recent Accounting Pronouncements |
Accounting Standards Updates | |
None of the ASU’s that we adopted and that became effective January 1, 2013 (including (i) ASU No. 2011-11, “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities;” (ii) ASU No. 2012-02, “Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment;” and (iii) ASU No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” had a material impact on our consolidated financial statements. More information about the three ASUs listed above can be found in Note 7 “Recent Accounting Pronouncements” to our consolidated financial statements that were included in our 2012 Form 10-K. |
General_Policies
General (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting for Equity Investment [Abstract] | |
Investment, Policy [Policy Text Block] | Accounting for Investments in KMP |
We use the equity method of accounting for our investment in KMP, a publicly traded limited partnership, with its common units traded on the New York Stock Exchange under the symbol “KMP.” We record, in the period in which it is earned, our share of the earnings of KMP attributable to the i-units we own. We receive distributions from KMP in the form of additional i-units, which increase the number of i-units we own. We issue additional shares (or fractions thereof) to our existing shareholders in an amount equal to the additional i-units received from KMP. At September 30, 2013, through our ownership of KMP i-units, we owned approximately 27.9% of all of KMP’s outstanding limited partner interests. |
Capitalization_Tables
Capitalization (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Distributions Made to Members or Limited Partners [Abstract] | |||||||||||||||||
Schedule of share distributions | The following table presents share distributions we have paid or declared in 2013. | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Equivalent distribution value per share declared for the period(a) | $ | 1.35 | $ | 1.26 | $ | 3.97 | $ | 3.69 | |||||||||
Total number of additional shares declared for the period(b) | 2,153,480 | 1,842,210 | 5,760,604 | 5,024,801 | |||||||||||||
Equivalent distribution value per share paid in the period(a) | $ | 1.32 | $ | 1.23 | $ | 3.91 | $ | 3.59 | |||||||||
Total number of additional share distributions made in the period(b) | 1,880,172 | 1,578,616 | 5,411,720 | 4,646,736 | |||||||||||||
__________ | |||||||||||||||||
(a) | This is the cash distribution for each KMP common unit declared for the period or paid in the period, as applicable, indicated and is used to calculate our distribution of shares as discussed above. Because of this calculation, the market value of the shares distributed on the date of distribution may be less or more than the cash distribution per common unit of KMP. | ||||||||||||||||
(b) | Three and nine months 2013 include a share distribution declared on October 16, 2013, payable on November 14, 2013 to shareholders of record as of October 31, 2013. This share distribution of 0.017610 shares per outstanding share (2,153,480 total shares) was determined by dividing $1.35, the cash amount to be distributed per KMP common unit by $76.659, the average of our shares’ closing market prices from October 15-28, 2013, the ten consecutive trading days preceding the date on which our shares began to trade ex-dividend under the rules of the New York Stock Exchange. |
Summarized_Income_Statement_In1
Summarized Income Statement Information for KMP (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||||||||||||||
Summarized Income Statement Information for KMP | Following is summarized income statement information for KMP (in millions). | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012(a) | 2013 | 2012(a) | ||||||||||||||
Revenues | $ | 3,381 | $ | 2,497 | $ | 9,059 | $ | 6,355 | |||||||||
Operating costs, expenses and other | 2,514 | 1,828 | 6,807 | 4,603 | |||||||||||||
Operating income | $ | 867 | $ | 669 | $ | 2,252 | $ | 1,752 | |||||||||
Loss from discontinued operations(b) | $ | — | $ | (131 | ) | $ | (2 | ) | $ | (682 | ) | ||||||
Net income(c) | $ | 697 | $ | 408 | $ | 2,499 | $ | 754 | |||||||||
Net income attributable to KMP | $ | 689 | $ | 405 | $ | 2,472 | $ | 743 | |||||||||
General Partner’s interest in pre-acquisition income from operations and severance expense of drop-down asset groups | $ | (2 | ) | $ | 62 | $ | 11 | $ | 41 | ||||||||
Remaining General Partner’s interest in income from continuing operations | $ | 436 | $ | 367 | $ | 1,260 | $ | 1,024 | |||||||||
General Partner’s interest in loss from discontinued operations | $ | — | $ | (2 | ) | $ | — | $ | (7 | ) | |||||||
Limited Partners’ interest in income from continuing operations | $ | 255 | $ | 106 | $ | 1,203 | $ | 353 | |||||||||
Limited Partners’ interest in loss from discontinued operations | $ | — | $ | (128 | ) | $ | (2 | ) | $ | (668 | ) | ||||||
____________ | |||||||||||||||||
(a) | Retrospectively adjusted as discussed in Note 1. | ||||||||||||||||
(b) | Represents amounts attributable to KMP’s FTC Natural Gas Pipelines disposal group. See Note 3 “Acquisitions and Divestitures” of the notes to the consolidated financial statements included in the KMP 2012 Form 10-K. The three and nine month 2012 amounts include $178 million and $827 million non-cash losses, respectively, from both costs to sell and the remeasurement of net assets to fair value. | ||||||||||||||||
(c) | The nine month 2013 amount includes (i) a $558 million gain from the remeasurement of KMP’s previously held 50% equity interest in Eagle Ford Gathering LLC to fair value; and (ii) $177 million increase in expense associated with adjustments to legal liabilities related to both transportation rate case and environmental matters. The three and nine month 2013 amounts include a $1 million decrease and a $140 million increase, respectively, after-tax loss and gain amounts from the sale of KMP’s investments in the Express pipeline system. |
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Effective income tax rate reconciliation | Income taxes included in our interim consolidated statements of income are as follows (in millions, except percentages): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Income tax expense (benefit) | $ | 22 | $ | (6 | ) | $ | 149 | $ | (31 | ) | |||||||
Effective tax rate | 31.9 | % | 66.7 | % | 43.8 | % | 33 | % |
General_Organization_Details
General Organization (Details) (USD $) | Jun. 30, 2012 | Sep. 30, 2013 | Mar. 01, 2013 | 1-May-13 | 1-May-13 | 1-May-13 | Aug. 01, 2012 | Aug. 01, 2012 | Aug. 01, 2012 | Sep. 30, 2013 |
In Billions, unless otherwise specified | El Paso Midstream Investment Company [Member] | EPNG and EL Paso Midstream Investment Company [Member] | EPNG and EL Paso Midstream Investment Company [Member] | Copano Energy LLC [Member] | Copano Energy LLC [Member] | KMP Acquisition of Copano [Member] | TGP ad EPNG [Member] | El Paso Natural Gas [Member] | Tennessee Gas Pipeline [Member] | KMP [Member] |
KMP [Member] | ||||||||||
Significant Acquisitions and Disposals, Transaction [Domain] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership Interest Percent | 0.00% | 100.00% | ||||||||
Ownership interest in outstanding limited partner interests of equity method investee (in hundredths) | 27.90% | |||||||||
Business acquisition percent consideration equity | 100.00% | |||||||||
Business acquisition, unit exchange ratio | 0.4563 | |||||||||
Equity investees equity interest of investment included in asset disposal group | 50.00% | 50.00% | 100.00% | |||||||
business combination, cost of acquired entity, purchase price | $1.70 | $5.20 | $6.20 |
Earnings_Per_Share_Earnings_pe
Earnings Per Share Earnings per share (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Incremental Common Shares Attributable to Conversion of Debt Securities | 0 |
Capitalization_Details
Capitalization (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 26, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Share Distribution [Member] | Share Distribution [Member] | Share Distribution [Member] | Share Distribution [Member] | Share Distribution Subsequent To Reporting Period [Member] | KMP Acquisition of Copano [Member] | Common Stock [Member] | Dividend Paid [Member] | ||||
Kinder Morgan Energy Partners, L P [Member] | |||||||||||
Share Distribution [Member] | |||||||||||
Distribution Made to Member or Limited Partner [Line Items] | |||||||||||
Adjustment to addidional paid in capital, impact from income tax | $0 | $89,000,000 | |||||||||
Non-deductable goodwill | 1,100,000,000 | ||||||||||
Income Tax Effects Allocated Directly to Equity, Equity Transactions | 89,000,000 | ||||||||||
Proceeds from Issuance or Sale of Equity | 500,000,000 | ||||||||||
Shares distributed per outstanding share (in shares) | 0.01761 | ||||||||||
Distribution Made to Member or Limited Partner, Distributions Declared, Per Unit | $1.26 | $3.97 | $3.69 | $1.35 | |||||||
Number of additional share distributions declared in the period | 2,153,480 | 1,842,210 | 5,760,604 | 5,024,801 | |||||||
Distribution Made to Limited Partner, Distributions Paid, Per Unit | $1.32 | $1.23 | $3.91 | $3.59 | |||||||
Proceeds from Issuance of Common Stock | $145,000,000 | $145,000,000 | $727,000,000 | ||||||||
Average ten day closing market price, amount per share | $76.66 | ||||||||||
Stock Issued During Period, Shares, New Issues | 1,757,300 | ||||||||||
Number of additional share distributions made in the period | 1,880,172 | 1,578,616 | 5,411,720 | 4,646,736 |
Business_Activities_and_Relate1
Business Activities and Related Party Transactions (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | |||||
Accounts receivable, related party | $15 | $15 | $12 | ||
Kinder Morgan Energy Partners, L.P. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Reimbursable expenses incurred on behalf of related party | 82 | 73 | 245 | 225 | |
Accounts receivable, related party | 15 | 15 | 12 | ||
Affiliate [Member] | |||||
Related Party Transaction [Line Items] | |||||
Number of affiliates providing payroll services | 1 | ||||
Payroll expenses of affiliate reimbursed by KMP | $93 | $91 | $337 | $303 |
Summarized_Income_Statement_In2
Summarized Income Statement Information for KMP Summarized KMP Income Statement (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Rate case liability adjustment | $177 | |||
Kinder Morgan Energy Partners, L P [Member] | ||||
Revenues | 3,381 | 2,497 | 9,059 | 6,355 |
Operating costs, expenses and other | 2,514 | 1,828 | 6,807 | 4,603 |
Operating income | 867 | 669 | 2,252 | 1,752 |
Loss from discontinued operations | 0 | -131 | -2 | -682 |
Net income | 697 | 408 | 2,499 | 754 |
Net income attributable to KMP | 689 | 405 | 2,472 | 743 |
General Partner's interest in pre-acquisition income from operations and severence expense of drop-down asset group | -2 | 62 | 11 | 41 |
Remaining General Partner's interest in income from continuing operations | 436 | 367 | 1,260 | 1,024 |
General Partner's interest in loss from discontinued operations | 0 | -2 | 0 | -7 |
Limited Partnersb interest in income from continuing operations | 255 | 106 | 1,203 | 353 |
Limited Partners' interest in loss income from discontinued operations | 0 | -128 | -2 | -668 |
gain from the sale of KMP's equity and debt investments in the Express Pipeline System | 1 | 140 | ||
Kmps non-cash loss from remeasurement of net assets of disposal group to fair value | 178 | 827 | ||
KMP [Member] | Eagle Ford Gathering LLC [Member] | ||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $558 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Contingency [Line Items] | ||||
Income tax expense (benefit) | $22 | ($6) | $149 | ($31) |
Effective tax rate | 31.88% | 66.70% | 43.82% | 33.00% |
Statutory federal tax rate | 35.00% | 35.00% |