Business Analysis of Kinder Morgan

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Kinder Morgan

KINDER MORGAN

Business Overview

Kinder Morgan, Inc. operates as an energy infrastructure company in North America. It operates through Natural Gas Pipelines, CO2, Terminals, Products Pipelines, and Kinder Morgan Canada segments. The Natural Gas Pipelines segment owns and operates interstate and intrastate natural gas pipeline and storage systems; natural gas and crude oil gathering systems, and natural gas processing and treating facilities; natural gas liquids (NGL) fractionation facilities and transportation systems; and liquefied natural gas facilities. The CO2 segment produces, transports, and markets CO2 for recovering crude oil from mature oil fields; and owns interests in/or operates oil fields and gas processing plants, as well as operates a crude oil pipeline system in West Texas. The Terminals segment owns and operates liquids and bulk terminals that transload and store refined petroleum products, crude oil, chemicals, and ethanol, as well as bulk products, including coal, petroleum coke, fertilizer, and steel and ore products; and owns tankers. The Products Pipelines segment owns and operates refined petroleum products, NGL, and crude oil and condensate pipelines; and associated product terminals and petroleum pipeline transmix facilities. The Kinder Morgan Canada segment owns and operates Trans Mountain pipeline system that transports crude oil and refined petroleum products from Edmonton, Alberta, and Canada to marketing terminals and refineries in British Columbia, Canada, and Washington; and jet fuel aviation turbine fuel pipeline that serves the Vancouver (Canada) International Airport. Kinder Morgan, Inc. owns interests in or operates approximately 84,000 miles of pipelines and 155 terminals. The company was formerly known as Kinder Morgan Holdco LLC and changed its name to Kinder Morgan, Inc. in February 2011. Kinder Morgan, Inc. was founded in 1936 and is headquartered in Houston, Texas.

Kinder Morgan

Kinder Morgan


R&P Rank: 219
Sector: Oil & Gas
Industry:Oil & Gas Distribution
H.Q Location:Texas
Website: www.kindermorgan.com
Company Address:
1001 LOUISIANA STREET, SUITE 1000, HOUSTON TX 77002
Ph:713-369-9000

Business Analysis of Kinder Morgan

The Oil & Gas Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Kinder Morgan compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Kinder Morgan to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Kinder Morgan with an interactive chart.

  1. Revenue Growth: Kinder Morgan reported a revenue growth of -9.3% year-on-year during 2016. Oil & Gas Distribution Industry grew at -12.3% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Kinder Morgan spent 47.7% of its total revenues on COGS. Oil & Gas Distribution industry average (COGS share of revenue) in the same period was 75.2%
  3. R&D share of Revenues: Kinder Morgan R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Kinder Morgan spent 5.1% of its total revenues on Sales, Marketing, and General Administration (SG&A). Oil & Gas Distribution industry average SG&A spending in the same period was 3.7%
  5. Inventory share of Revenues: As a percentage of revenue, Kinder Morgan spent 2.7% of its total revenues on Inventories. Oil & Gas Distribution industry average Inventory spending in the same period was 4.8%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Kinder Morgan invested 9.6% of its total revenues on Accounts Payable (A/P) Oil & Gas Distribution industry average Accounts Payable investment in the same period was 10.1%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Kinder Morgan invested 10.5% of its total revenues on Accounts Receivable (A/R). Oil & Gas Distribution industry average Accounts Receivable investment in the same period was 10.6%
  8. PP&E share of Revenues: As a percentage of revenue, Kinder Morgan invested 296.4% of its total revenues on Property, Plants, and Equipments (PP&E). Oil & Gas Distribution industry average PPE investment in the same period was 155.8%
  9. Intangibles share of Revenues: As a percentage of revenue, Kinder Morgan invested 195.1% of its total revenues on Intangibles. Oil & Gas Distribution industry average Intangibles investment in the same period was 39.0%
  10. Net Margins: Kinder Morgan Net Margins in the year 2016 were 5.4%. Oil & Gas Distribution industry average Net Margins in the same period were 3.9%

Sector and Industry Association of Kinder Morgan

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Kinder Morgan is associated with Oil & Gas Sector and Oil & Gas Distribution Industry.

Oil & Gas sector is comprised of the following industries: Oil & Gas Production; Oil & Gas Distribution; Oil & Gas Equipment and Services; Alternative Energy. The definitions for each of the industries is as follows:

  • Oil & Gas Production industry includes companies primarily engaged in operating oil & gas properties. Key activities may include exploration for crude petroleum and natural gas; drilling, completing, and equipping wells; and all other activities in the preparation of oil and gas up to the point of shipment from the producing property. It also includes companies engaged in crude petroleum refining and producing gasoline, kerosene, distillate fuel oils, residual fuel oils, and lubricants, through fractionation or straight distillation of crude oil.
  • Oil & Gas Distribution industry includes companies primarily engaged in the pipeline transportation of petroleum, natural gas, and other commodities. It also includes companies primarily engaged in the wholesale and retail distribution of petroleum and petroleum products.
  • Oil & Gas Equipment and Services industry includes companies primarily engaged in drilling wells for oil or gas field operations for others on a contract or fee basis. It also includes companies providing exploration services and machinery & equipment for oil and gas field operations.
  • Alternative Energy industry includes companies that develop or manufacture renewable energy equipment utilizing sources such as solar, wind, geothermal, hydro, and waves. It also includes companies that produce alternative fuels such as methanol, ethanol, hydrogen and biofuels that are mainly used to power vehicles.

Industry Ranking of Kinder Morgan

With $13.1 billion revenues, Kinder Morgan ranked number 8 of all the companies in the US Oil & Gas Distribution industry. There were a total of 69 public companies in the US Oil & Gas Distribution industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Oil & Gas Distribution industry by revenues during 2016 were:

  1. Energy Transfer Equity ($37.5 billion)
  2. World Fuel ($27 billion)
  3. Enterprise Products Partners ($23 billion)
  4. Energy Transfer Partners ($21.8 billion)
  5. Plains All American Pipeline ($20.2 billion)
  6. Plains GP Holdings ($20.2 billion)
  7. Sunoco ($15.7 billion)
  8. Kinder Morgan ($13.1 billion)
  9. NGL Energy Partners ($11.7 billion)
  10. Sunoco Logistics ($9.2 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Kinder Morganand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of kinder-morgan

Plains All American Pipeline (PAA) Business Analysis – Analyze Historical Performance,...

Plains All American Pipeline Lp with $20 billion revenues in the year 2016 was the number 5 Oil & Gas Distribution company. Read this report to know the top competitors of Plains All American Pipeline and identify growth and cost optimization opportunities of Plains All American Pipeline

Plains GP Holdings (PAGP) Business Analysis – Analyze Historical Performance, Strategic...

Plains GP Holdings LP with $20 billion revenues in the year 2016 was the number 6 Oil & Gas Distribution company. Read this report to know the top competitors of Plains GP Holdings and identify growth and cost optimization opportunities of Plains GP Holdings

Sunoco (SUN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Sunoco Lp with $16 billion revenues in the year 2016 was the number 7 Oil & Gas Distribution company. Read this report to know the top competitors of Sunoco and identify growth and cost optimization opportunities of Sunoco

NGL Energy Partners (NGL) Business Analysis – Analyze Historical Performance, Strategic...

NGL Energy Partners LP with $12 billion revenues in the year 2016 was the number 9 Oil & Gas Distribution company. Read this report to know the top competitors of NGL Energy Partners and identify growth and cost optimization opportunities of NGL Energy Partners

Sunoco Logistics (SXL) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Sunoco Logistics Partners L.P. with $9 billion revenues in the year 2016 was the number 10 Oil & Gas Distribution company. Read this report to know the top competitors of Sunoco Logistics and identify growth and cost optimization opportunities of Sunoco Logistics

ONEOK (OKE) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Oneok Inc with $9 billion revenues in the year 2016 was the number 11 Oil & Gas Distribution company. Read this report to know the top competitors of ONEOK and identify growth and cost optimization opportunities of ONEOK

Revenues Analysis

Kinder Morgan (KMI) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Kinder Morgan, Inc. (KMI) from 2012 to 2016. Kinder Morgan generated a total of $13.1 billion revenues during 2016. Kinder Morgan reported a revenue growth of -9.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Kinder Morgan (KMI) Revenues And Revenue Growth From 2008 To 2016

This report provides the last nine years revenues and revenue growth of Kinder Morgan, Inc. (KMI) from 2008 to 2016. Kinder Morgan generated a total of $13.1 billion revenues during 2016. Kinder Morgan reported a revenue growth of -9.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Kinder Morgan (KMI) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Kinder Morgan, Inc. (KMI) revenue growth with Oil & Gas Distribution industry growth during the last five years from 2012 to 2016. Kinder Morgan reported a revenue growth of -9.3% year-over-year during 2016. The Oil & Gas Distribution industry growth was -12.3% year-over-year during 2016. Kinder Morgan growth was faster than the industry during 2016.