Document_And_Entity_Informatio
Document And Entity Information (USD $) | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 28, 2013 | Jul. 25, 2014 | Jul. 25, 2014 | |
Listed Shares [Member] | Voting Shares [Member] | |||
Entity Information [Line Items] | ' | ' | ' | ' |
Entity Registrant Name | 'KINDER MORGAN MANAGEMENT LLC | ' | ' | ' |
Entity Central Index Key | '0001135017 | ' | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' | ' |
Entity Voluntary Filers | 'No | ' | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' | ' |
Entity Public Float | ' | $8,662,103,941 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | ' | 131,281,762 | 4 |
Document Fiscal Year Focus | '2014 | ' | ' | ' |
Document Fiscal Period Focus | 'Q2 | ' | ' | ' |
Document Type | '10-Q | ' | ' | ' |
Amendment Flag | 'false | ' | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income tax expense | $15 | $86 | $47 | $127 |
Net income | 38 | 75 | 89 | 144 |
Earnings per share Basic and Diluted (in dollars per share) | $0.29 | $0.63 | $0.70 | $1.23 |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 129 | 118 | 128 | 117 |
KMP [Member] | ' | ' | ' | ' |
Equity in earnings of Kinder Morgan Energy Partners, L.P. | $53 | $161 | $136 | $271 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net income | $38 | $75 | $89 | $144 |
Equity in other comprehensive loss of Kinder Morgan Energy Partners L.P., net of tax benefit of $1, $2, $8, and $6 million, respectively | -2 | -1 | -15 | -11 |
Comprehensive income | $36 | $74 | $74 | $133 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Tax | $1 | $2 | $8 | $6 |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current Assets | ' | ' |
Accounts receivable, affiliated party | $12 | $10 |
Other current assets | 1 | 1 |
Total current assets | 13 | 11 |
Assets, Noncurrent [Abstract] | ' | ' |
Total Assets | 4,304 | 4,092 |
Current liabilities | ' | ' |
Accounts payable | 4 | 3 |
Other current liabilities | 9 | 8 |
Total current liabilities | 13 | 11 |
Liabilities, Noncurrent [Abstract] | ' | ' |
Deferred income taxes | 106 | 73 |
Liabilities | 119 | 84 |
Equity [Abstract] | ' | ' |
Retained deficit | -2,360 | -2,108 |
Accumulated other comprehensive (loss) income | -12 | 3 |
Total Shareholders' Equity | 4,185 | 4,008 |
Total Liabilities and Shareholders' Equity | 4,304 | 4,092 |
Voting Shares [Member] | ' | ' |
Equity [Abstract] | ' | ' |
Common shares | 0 | 0 |
Listed Shares [Member] | ' | ' |
Equity [Abstract] | ' | ' |
Common shares | 6,557 | 6,113 |
KMP [Member] | ' | ' |
Assets, Noncurrent [Abstract] | ' | ' |
Investment in Kinder Morgan Energy Partners, L.P. | $4,291 | $4,081 |
CONSOLIDATED_BALANCE_SHEETS_Un1
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) | Jun. 30, 2014 | Dec. 31, 2013 |
Voting Shares [Member] | ' | ' |
Common Stock, Shares, Issued | 4 | 4 |
Common shares outstanding (in shares) | 4 | 4 |
Listed Shares [Member] | ' | ' |
Common Stock, Shares, Issued | 131,281,762 | 125,323,730 |
Common shares outstanding (in shares) | 131,281,762 | 125,323,730 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash Flows From Operating Activities | ' | ' |
Net income | $89 | $144 |
Adjustments to reconcile net income to net cash flows from operating activities | ' | ' |
Deferred income taxes | 47 | 127 |
Changes in components of working capital | ' | ' |
Accounts receivable,affiliated party | -2 | -2 |
Other current assets | 0 | -1 |
Accounts payable | 1 | 0 |
Other current liabilities | 1 | 3 |
Net Cash Provided by Operating Activities | 0 | 0 |
Cash Flows From Investing Activities | ' | ' |
Net Cash Used in Investing Activities | -97 | -73 |
Cash Flows From Financing Activities | ' | ' |
Proceeds from Issuance of Shares | 97 | 73 |
Net Cash Provided by Financing Activities | 97 | 73 |
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 |
KMP [Member] | ' | ' |
Adjustments to reconcile net income to net cash flows from operating activities | ' | ' |
Equity in earnings of Kinder Morgan Energy Partners, L.P. | -136 | -271 |
Cash Flows From Investing Activities | ' | ' |
Purchase of i-units of Kinder Morgan Energy Partners, L.P. | ($97) | ($73) |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity Statement (USD $) | Total | Retained Deficit [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Shareholders' Equity, Total [Member] | KMP Acquisition of Copano [Member] | Voting Shares [Member] | Listed Shares [Member] | Listed Shares [Member] | Listed Shares [Member] | Listed Shares [Member] |
In Millions, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Common Stock [Member] | Common Stock [Member] | KMP Acquisition of Copano [Member] | KMI drop-down with KMP [Member] | |
USD ($) | USD ($) | Common Stock [Member] | Common Stock [Member] | |||||||
USD ($) | USD ($) | |||||||||
Total Shareholders' Equity at Dec. 31, 2012 | ' | ($1,755) | $18 | ' | ' | $0 | ' | $5,201 | ' | ' |
Shareholders' Equity (in shares) at Dec. 31, 2012 | ' | ' | ' | ' | ' | 3 | ' | 115,118,335 | ' | ' |
Shares distributions (in shares) | ' | ' | ' | ' | ' | 1 | ' | 3,531,547 | ' | ' |
Share distributions | ' | ' | ' | ' | ' | 0 | ' | 299 | ' | ' |
Stock Issued During Period, Shares, New Issues | ' | ' | ' | ' | ' | ' | ' | 860,600 | ' | ' |
Stock Issued During Period, Value, New Issues | ' | ' | ' | ' | ' | ' | ' | 73 | ' | ' |
Tax impact of KMP transactions | ' | ' | ' | ' | ' | ' | ' | ' | 63 | 26 |
Net income | 144 | 144 | ' | ' | ' | ' | ' | ' | ' | ' |
share distribution to LLC members noncash value | ' | -299 | ' | ' | ' | ' | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Net of Tax | -11 | ' | -11 | ' | ' | ' | ' | ' | ' | ' |
Total Shareholders' Equity at Jun. 30, 2013 | ' | -1,910 | 7 | 3,759 | ' | 0 | ' | 5,662 | ' | ' |
Shareholders' Equity (in shares) at Jun. 30, 2013 | ' | ' | ' | 119,510,486 | ' | 4 | ' | 119,510,482 | ' | ' |
Total Shareholders' Equity at Dec. 31, 2013 | 4,008 | -2,108 | 3 | ' | ' | 0 | ' | 6,113 | ' | ' |
Shareholders' Equity (in shares) at Dec. 31, 2013 | ' | ' | ' | ' | ' | 4 | ' | 125,323,730 | ' | ' |
Shares distributions (in shares) | ' | ' | ' | ' | ' | 0 | ' | 4,624,072 | ' | ' |
Share distributions | ' | ' | ' | ' | ' | 0 | ' | 341 | ' | ' |
Stock Issued During Period, Shares, New Issues | ' | ' | ' | ' | ' | ' | 1,333,960 | 1,333,960 | ' | ' |
Stock Issued During Period, Value, New Issues | ' | ' | ' | ' | ' | ' | ' | 97 | ' | ' |
Tax impact of KMP transactions | ' | ' | ' | ' | 6 | ' | ' | ' | 6 | 0 |
Net income | 89 | 89 | ' | ' | ' | ' | ' | ' | ' | ' |
share distribution to LLC members noncash value | ' | -341 | ' | ' | ' | ' | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Net of Tax | -15 | ' | -15 | ' | ' | ' | ' | ' | ' | ' |
Total Shareholders' Equity at Jun. 30, 2014 | 4,185 | -2,360 | -12 | 4,185 | ' | 0 | ' | 6,557 | ' | ' |
Shareholders' Equity (in shares) at Jun. 30, 2014 | ' | ' | ' | 131,281,766 | ' | 4 | ' | 131,281,762 | ' | ' |
Total Shareholders' Equity at Mar. 31, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax impact of KMP transactions | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' |
Net income | 38 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Net of Tax | -2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Shareholders' Equity at Jun. 30, 2014 | $4,185 | ' | ' | $4,185 | ' | ' | ' | ' | ' | ' |
Shareholders' Equity (in shares) at Jun. 30, 2014 | ' | ' | ' | 131,281,766 | ' | ' | ' | ' | ' | ' |
General
General | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
General | ' |
General | |
Organization | |
Kinder Morgan Management, LLC is a publicly traded Delaware LLC that was formed on February 14, 2001. We are a limited partner of KMP, a publicly traded limited partnership whose common units are traded on the New York Stock Exchange under the symbol “KMP,” through our ownership of all of KMP’s i-units. 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. 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, all significant intercompany items have been eliminated in consolidation. Additionally, 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 unaudited 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 2013 Form 10-K. For additional information, see the KMP 2013 Form 10-K and KMP’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, included in this filing as Exhibit 99.1 and incorporated herein by reference. | |
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. Copano, a midstream natural gas company with operations primarily in Texas, Oklahoma and Wyoming, provides comprehensive services to natural gas producers, including natural gas gathering, processing and treating and natural gas liquids fractionation. | |
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 and the combined group of assets acquired by KMP from KMI as the March 2013 drop-down asset group. KMP acquired its initial 50% ownership interest in the midstream assets from an investment vehicle affiliated with Kohlberg Kravis Roberts and Co. L.P. effective June 1, 2012. | |
KMI acquired all of the assets included in the drop-down asset group as part of its May 25, 2012 acquisition of El Paso Corporation. KMI accounted for its acquisition of the drop-down asset group under the acquisition method of accounting, and KMP accounted for the drop-down transaction as a combination of entities under common control. Accordingly, the KMP information in Note 5 has been prepared to reflect the transfer of 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 EPNG and the midstream assets met the accounting requirements for entities under common control - May 25, 2012 for EPNG and June 1, 2012 for the midstream assets. Specifically, KMP (i) consolidates its now 100% investments in the drop-down asset group 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 group for the periods beginning on the effective dates of common control (described above) and ending March 1, 2013 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 March 2013 drop-down asset group” in Note 5. The severance expense allocated to KMP was associated with the drop-down asset group; however, KMP does not have any obligation to, nor did KMP pay any amounts related to this expense. | |
For all periods beginning after the acquisition date of March 1, 2013, KMP allocated its earnings (including the earnings from the drop-down asset group) to all of its partners according to its partnership agreement. | |
Investments in KMP | |
We use the equity method of accounting for our investment in 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 June 30, 2014, through our ownership of KMP i-units, we owned approximately 28.4% of all of KMP’s outstanding limited partner interests. |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2014 | |
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 | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
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 during the measurement period related to the Copano acquisition, are reflected as offsets to our shareholders’ equity. As a result of these two transactions, we have recorded decreases to our deferred tax liability and offsetting increases to our shareholders’ equity in the amounts of $6 million in the three and six months ended June 30, 2014, and $63 million and $89 million in the three and six months ended June 30, 2013, respectively. | ||||||||||||||||
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 six months ended June 30, 2014, we issued 1,333,960 of our shares pursuant to our equity distribution agreement. We received net proceeds of $97 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 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 the three and six months ended June 30, 2014 and 2013. | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Equivalent distribution value per share declared for the period(a) | $ | 1.39 | $ | 1.32 | $ | 2.77 | $ | 2.62 | ||||||||
Total number of share distributions declared for the period(b) | 2,283,909 | 1,880,172 | 4,670,723 | 3,607,124 | ||||||||||||
Equivalent distribution value per share paid in the period(a) | $ | 1.38 | $ | 1.3 | $ | 2.74 | $ | 2.59 | ||||||||
Total number of share distributions paid in the period(b) | 2,386,814 | 1,726,952 | 4,624,072 | 3,531,548 | ||||||||||||
__________ | ||||||||||||||||
(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 six months ended June 30, 2014 include a share distribution declared on July 16, 2014, payable on August 14, 2014 to shareholders of record as of July 31, 2014. This share distribution of 0.017397 shares per outstanding share (2,283,909 total shares) was determined by dividing $1.39, the cash amount to be distributed per KMP common unit by $79.897, the average of our shares’ closing market prices from July 15 - 28, 2014, 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 | 6 Months Ended |
Jun. 30, 2014 | |
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 $86 million and $180 million of expenses during the three and six months ended June 30, 2014, respectively and approximately $81 million and $163 million of expenses during the three and six months ended June 30, 2013, respectively. The expense reimbursements by KMP to us are accounted for as a reduction to the expense incurred by us. At June 30, 2014 and December 31, 2013, $12 million and $10 million, respectively, primarily receivables from KMP, are recorded in the caption “Accounts receivable – affiliated 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 $106 million and $231 million during the three and six months ended June 30, 2014, respectively and approximately $122 million and $244 million during the three and six months ended June 30, 2013, respectively. |
Summarized_Income_Statement_In
Summarized Income Statement Information for KMP | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
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 June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues | $ | 3,577 | $ | 3,017 | $ | 7,229 | $ | 5,678 | ||||||||
Operating costs, expenses and other | 2,722 | 2,416 | 5,441 | 4,293 | ||||||||||||
Operating income | $ | 855 | $ | 601 | $ | 1,788 | $ | 1,385 | ||||||||
Net income(a) | $ | 669 | $ | 1,010 | $ | 1,423 | $ | 1,802 | ||||||||
Net income attributable to KMP | 661 | 1,000 | 1,407 | 1,783 | ||||||||||||
General Partner’s interest in pre-acquisition income from operations and severance expense of March 2013 drop-down asset group | (1 | ) | (4 | ) | (6 | ) | 13 | |||||||||
Remaining General Partner’s interest in income from continuing operations | 465 | 422 | 917 | 824 | ||||||||||||
Limited Partners’ interest in net income | 197 | 582 | 496 | 946 | ||||||||||||
____________ | ||||||||||||||||
(a) | Three and six month 2013 amounts include (i) a $558 million gain from the remeasurement of KMP’s previously held 50% equity interest in Eagle Ford Gathering LLC to fair value as a result of KMP’s acquisition of Copano in May 2013 and (ii) a $162 million decrease associated with rate case liability adjustments. The six month 2013 amount also includes a $141 million after-tax gain from the sale of KMP’s equity and debt 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 | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
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 nondeductible 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 June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Income tax expense | $ | 15 | $ | 86 | $ | 47 | $ | 127 | ||||||||
Effective tax rate | 28.3 | % | 53.4 | % | 34.6 | % | 46.9 | % | ||||||||
For the three and six months ended June 30, 2014, our effective tax rate was lower than the statutory federal rate of 35% primarily due to an increase in our share of nondeductible goodwill associated with our investment in KMP, partially offset by state income taxes. | ||||||||||||||||
For the three and six months ended June 30, 2013, our effective tax rate was higher than the statutory federal rate of 35% primarily due to a decrease in our share of nondeductible goodwill associated with our investment in KMP and state income taxes. |
Legal_Matters_and_Contingencie
Legal Matters and Contingencies (Notes) | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Legal Matters and Contingencies [Text Block] | ' |
Legal Proceedings | |
Mission Valley Terminal Lawsuit | |
In August 2007, the City of San Diego, on its own behalf and purporting to act on behalf of the People of the State of California, filed a lawsuit against KMR and several affiliates seeking injunctive relief and unspecified damages allegedly resulting from hydrocarbon and methyl tertiary butyl ether (MTBE) impacted soils and groundwater beneath the City’s stadium property in San Diego arising from historic operations at the Mission Valley terminal facility. The case was filed in the Superior Court of California, San Diego County, case number 37-2007-00073033-CU-OR-CTL. On September 26, 2007, we removed the case to the U.S. District Court, Southern District of California, case number 07CV1883WCAB. The City disclosed in discovery that it is seeking approximately $170 million in damages for alleged lost value/lost profit from the redevelopment of the City’s property and alleged lost use of the water resources underlying the property. Later, in 2010, the City amended its initial disclosures to add claims for restoration of the site as well as a number of other claims that increased its claim for damages to approximately $365 million. | |
On November 29, 2012, the Court issued a Notice of Tentative Rulings on the parties’ summary adjudication motions. The Court tentatively granted our partial motions for summary judgment on the City’s claims for water and real estate damages and the State’s claims for violations of California Business and Professions Code § 17200, tentatively denied the City’s motion for summary judgment on its claims of liability for nuisance and trespass, and tentatively granted our cross motion for summary judgment on such claims. On January 25, 2013, the Court rendered judgment in favor of all defendants on all claims asserted by the City. | |
On February 20, 2013, the City of San Diego filed a notice of appeal of this case to the U.S. Court of Appeals for the Ninth Circuit. The appeal is currently pending. | |
This site has been, and currently is, under the regulatory oversight and order of the California Regional Water Quality Control Board (RWQCB). KMP’s subsidiary, SFPP, L.P. (SFPP), has completed the soil and groundwater remediation at the City of San Diego’s stadium property site and will continue quarterly sampling and monitoring through 2014 as part of the compliance evaluation required by the RWQCB. SFPP's remediation effort is now focused on its adjacent Mission Valley Terminal site. | |
On May 7, 2013, the City of San Diego filed a writ of mandamus to the California Superior Court seeking an order from the Court setting aside the RWQCB’s approval of our permit request to increase the discharge of water from our groundwater treatment system to the City of San Diego’s municipal storm sewer system. SFPP and KMP are coordinating with the RWQCB to oppose the City’s writ. |
General_Policies
General (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Investment, Policy [Policy Text Block] | ' |
Investments in KMP | |
We use the equity method of accounting for our investment in 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. |
Capitalization_Tables
Capitalization (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||
Schedule of share distributions | ' | |||||||||||||||
The following table presents share distributions we have paid or declared in the three and six months ended June 30, 2014 and 2013. | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Equivalent distribution value per share declared for the period(a) | $ | 1.39 | $ | 1.32 | $ | 2.77 | $ | 2.62 | ||||||||
Total number of share distributions declared for the period(b) | 2,283,909 | 1,880,172 | 4,670,723 | 3,607,124 | ||||||||||||
Equivalent distribution value per share paid in the period(a) | $ | 1.38 | $ | 1.3 | $ | 2.74 | $ | 2.59 | ||||||||
Total number of share distributions paid in the period(b) | 2,386,814 | 1,726,952 | 4,624,072 | 3,531,548 | ||||||||||||
__________ | ||||||||||||||||
(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 six months ended June 30, 2014 include a share distribution declared on July 16, 2014, payable on August 14, 2014 to shareholders of record as of July 31, 2014. This share distribution of 0.017397 shares per outstanding share (2,283,909 total shares) was determined by dividing $1.39, the cash amount to be distributed per KMP common unit by $79.897, the average of our shares’ closing market prices from July 15 - 28, 2014, 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) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
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 June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues | $ | 3,577 | $ | 3,017 | $ | 7,229 | $ | 5,678 | ||||||||
Operating costs, expenses and other | 2,722 | 2,416 | 5,441 | 4,293 | ||||||||||||
Operating income | $ | 855 | $ | 601 | $ | 1,788 | $ | 1,385 | ||||||||
Net income(a) | $ | 669 | $ | 1,010 | $ | 1,423 | $ | 1,802 | ||||||||
Net income attributable to KMP | 661 | 1,000 | 1,407 | 1,783 | ||||||||||||
General Partner’s interest in pre-acquisition income from operations and severance expense of March 2013 drop-down asset group | (1 | ) | (4 | ) | (6 | ) | 13 | |||||||||
Remaining General Partner’s interest in income from continuing operations | 465 | 422 | 917 | 824 | ||||||||||||
Limited Partners’ interest in net income | 197 | 582 | 496 | 946 | ||||||||||||
____________ | ||||||||||||||||
(a) | Three and six month 2013 amounts include (i) a $558 million gain from the remeasurement of KMP’s previously held 50% equity interest in Eagle Ford Gathering LLC to fair value as a result of KMP’s acquisition of Copano in May 2013 and (ii) a $162 million decrease associated with rate case liability adjustments. The six month 2013 amount also includes a $141 million after-tax gain from the sale of KMP’s equity and debt investments in the Express pipeline system. |
Income_Taxes_Tables
Income Taxes (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
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 June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Income tax expense | $ | 15 | $ | 86 | $ | 47 | $ | 127 | ||||||||
Effective tax rate | 28.3 | % | 53.4 | % | 34.6 | % | 46.9 | % |
General_Organization_Details
General Organization (Details) (USD $) | Jun. 30, 2014 | 1-May-13 | Mar. 01, 2013 | Mar. 01, 2013 | Jun. 01, 2012 |
In Billions, unless otherwise specified | KMP [Member] | Copano Energy LLC [Member] | KMp's Drop Down Transaction with KMI [Member] | KMp's Drop Down Transaction with KMI [Member] | Initial 50% interest in EPNG [Member] |
KMP [Member] | KMP [Member] | KMP [Member] | KMP [Member] | ||
Kinder Morgan Inc [Member] | Kinder Morgan Inc [Member] | Kohlberg Kravis Roberts and Co. L.P. [Domain] | |||
EPNG and EL Paso Midstream Investment Company [Member] | El Paso Midstream Investment Company [Member] | El Paso Midstream Investment Company [Member] | |||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Business Combination, Consideration Transferred | ' | $5.20 | $1.70 | ' | ' |
Business Acquisition, Cost of Acquired Entity, percent unit for unit | ' | 100.00% | ' | ' | ' |
Business Acquisition, Percentage of Voting Interests Acquired | ' | ' | 50.00% | ' | ' |
Equity Method Investment, Ownership Percentage | 28.40% | ' | ' | 50.00% | 50.00% |
Earnings_Per_Share_Earnings_pe
Earnings Per Share Earnings per share (Details) | 6 Months Ended |
Jun. 30, 2014 | |
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 $) | 6 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jul. 16, 2014 | Jun. 30, 2014 | 4-May-12 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | 1-May-13 | Jun. 30, 2013 | Jun. 30, 2013 | |
Share Distribution [Member] | Share Distribution [Member] | Share Distribution [Member] | Share Distribution [Member] | Share Distribution [Member] | Listed Shares [Member] | Listed Shares [Member] | Listed Shares [Member] | Listed Shares [Member] | KMP Acquisition of Copano [Member] | KMP Acquisition of Copano [Member] | KMP Acquisition of Copano [Member] | KMP Acquisition of Copano [Member] | KMP Acquisition of Copano [Member] | KMP Acquisition of Copano [Member] | KMP Acquisition of Copano and KMP Drop Down with KMI [Member] | KMP Acquisition of Copano and KMP Drop Down with KMI [Member] | |||
Subsequent Event [Member] | Common Stock [Member] | Common Stock [Member] | Listed Shares [Member] | Listed Shares [Member] | KMP [Member] | KMP [Member] | |||||||||||||
Common Stock [Member] | Common Stock [Member] | ||||||||||||||||||
Distribution Made to Member or Limited Partner [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustment to additional paid in capital, impact from income tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6,000,000 | $6,000,000 | $6,000,000 | $63,000,000 | ' | ' | $63,000,000 | $89,000,000 |
Business acquisition, unit exchange ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.4563 | ' | ' |
Non-deductable goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000,000 | ' | ' | ' |
Income Tax Effects Allocated Directly to Equity, Equity Transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | 6,000,000 | ' | ' | ' | ' | 63,000,000 | 89,000,000 |
Value of units available for sale under Equity DIstribution Agreement | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | ' | ' | ' | ' | ' | ' | ' | 1,333,960 | ' | 1,333,960 | 860,600 | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Common Stock | $97,000,000 | $73,000,000 | ' | ' | ' | ' | ' | $97,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution Made to Member or Limited Partner, Distributions Declared, Per Unit | ' | ' | $1.39 | $1.32 | $2.77 | $2.62 | $1.39 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of additional share distributions declared in the period | ' | ' | 2,283,909 | 1,880,172 | 4,670,723 | 3,607,124 | 2,283,909 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution made to Limited Liability Company (LLC) member, share distributions paid, per unit | ' | ' | $1.38 | $1.30 | $2.74 | $2.59 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution Made to Limited Liability Company (LLC) Member, Unit Distribution | ' | ' | 2,386,814 | 1,726,952 | 4,624,072 | 3,531,548 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares distributed per outstanding share (in shares) | ' | ' | ' | ' | ' | ' | 0.017397 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average ten day closing market price, amount per share | ' | ' | ' | ' | ' | ' | $79.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business_Activities_and_Relate1
Business Activities and Related Party Transactions (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Accounts receivable, affiliated party | $12 | ' | $12 | ' | $10 |
KMP [Member] | Affiliate [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Reimbursable expenses incurred on behalf of related party | 86 | 81 | 180 | 163 | ' |
Accounts receivable, affiliated party | 12 | ' | 12 | ' | 10 |
Number of affiliates providing payroll services | ' | ' | 1 | ' | ' |
Payroll expenses of affiliate reimbursed by KMP | $106 | $122 | $231 | $244 | ' |
Summarized_Income_Statement_In2
Summarized Income Statement Information for KMP Summarized KMP Income Statement (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
KMP [Member] | ' | ' | ' | ' |
Revenues | $3,577 | $3,017 | $7,229 | $5,678 |
Equity Method Investment Summarized Financial Information Cost of Sales and Other Operating Expenses | 2,722 | 2,416 | 5,441 | 4,293 |
Operating income | 855 | 601 | 1,788 | 1,385 |
Net income | 669 | 1,010 | 1,423 | 1,802 |
Net income attributable to KMP | 661 | 1,000 | 1,407 | 1,783 |
General Partner's interest in pre-acquisition income from operations and severence expense of drop-down asset group | -1 | -4 | -6 | 13 |
Remaining General Partner's interest in income from continuing operations | 465 | 422 | 917 | 824 |
Net Income (Loss) Allocated to Limited Partners | 197 | 582 | 496 | 946 |
Rate case liability adjustment | ' | 162 | ' | 162 |
gain from the sale of KMP's equity and debt investments in the Express Pipeline System | ' | ' | ' | 141 |
Eagle Ford Gathering LLC [Member] | KMP [Member] | ' | ' | ' | ' |
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | ' | $558 | ' | $558 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Income tax expense | $15 | $86 | $47 | $127 |
Effective tax rate | 28.30% | 53.40% | 34.60% | 46.90% |
Statutory federal tax rate | 35.00% | 35.00% | 35.00% | 35.00% |
Legal_Matters_and_Contingencie1
Legal Matters and Contingencies (Details) (City of San Diego [Member], USD $) | 1 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Aug. 31, 2007 | Dec. 31, 2010 |
City of San Diego [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Loss Contingency, Damages Sought, Value | $170 | $365 |