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Debt (Notes) | 12 Months Ended
--- | ---
Dec. 31, 2023
Debt Disclosure [Abstract] |
Debt | 9. Debt The following table provides detail on the principal amount of our outstanding debt balances:
| December 31,
| 2023 |  | 2022
| (In millions)
Credit facility and commercial paper borrowings(a) | $ | 1,989 |  |  | $ | — |
Corporate senior notes(b) |  |  |
3.15%, due January 2023 | — |  |  | 1,000 |
Floating rate, due January 2023(c) | — |  |  | 250 |
3.45%, due February 2023 | — |  |  | 625 |
3.50%, due September 2023 | — |  |  | 600 |
5.625%, due November 2023 | — |  |  | 750 |
4.15%, due February 2024 | 650 |  |  | 650 |
4.30%, due May 2024 | 600 |  |  | 600 |
4.25%, due September 2024 | 650 |  |  | 650 |
4.30%, due June 2025 | 1,500 |  |  | 1,500 |
1.75%, due November 2026 | 500 |  |  | 500 |
6.70%, due February 2027 | 7 |  |  | 7 |
2.25%, due March 2027(d) | 552 |  |  | 535 |
6.67%, due November 2027 | 7 |  |  | 7 |
4.30%, due March 2028 | 1,250 |  |  | 1,250 |
7.25%, due March 2028 | 32 |  |  | 32 |
6.95%, due June 2028 | 31 |  |  | 31 |
8.05%, due October 2030 | 234 |  |  | 234 |
2.00%, due February 2031 | 750 |  |  | 750 |
7.40%, due March 2031 | 300 |  |  | 300 |
7.80%, due August 2031 | 537 |  |  | 537 |
7.75%, due January 2032 | 1,005 |  |  | 1,005 |
7.75%, due March 2032 | 300 |  |  | 300 |
4.80%, due February 2033 | 750 |  |  | 750 |
5.20%, due June 2033 | 1,500 |  |  | — |
7.30%, due August 2033 | 500 |  |  | 500 |
5.30%, due December 2034 | 750 |  |  | 750 |
5.80%, due March 2035 | 500 |  |  | 500 |
7.75%, due October 2035 | 1 |  |  | 1 |
6.40%, due January 2036 | 36 |  |  | 36 |
6.50%, due February 2037 | 400 |  |  | 400 |
7.42%, due February 2037 | 47 |  |  | 47 |
6.95%, due January 2038 | 1,175 |  |  | 1,175 |
6.50%, due September 2039 | 600 |  |  | 600 |
6.55%, due September 2040 | 400 |  |  | 400 |
7.50%, due November 2040 | 375 |  |  | 375 |
6.375%, due March 2041 | 600 |  |  | 600 |
5.625%, due September 2041 | 375 |  |  | 375 |
5.00%, due August 2042 | 625 |  |  | 625 |
4.70%, due November 2042 | 475 |  |  | 475 |
5.00%, due March 2043 | 700 |  |  | 700 |
5.50%, due March 2044 | 750 |  |  | 750 |
5.40%, due September 2044 | 550 |  |  | 550 |
5.55%, due June 2045 | 1,750 |  |  | 1,750 |
5.05%, due February 2046 | 800 |  |  | 800 |
5.20%, due March 2048 | 750 |  |  | 750 |
3.25%, due August 2050 | 500 |  |  | 500 |
3.60%, due February 2051 | 1,050 |  |  | 1,050 |
5.45%, due January 2052 | 750 |  |  | 750 |
7.45%, due March 2098 | 26 |  |  | 26 |
TGP senior notes(b) |  |  |
7.00%, due March 2027 | 300 |  |  | 300 |
7.00%, due October 2028 | 400 |  |  | 400 |
2.90%, due March 2030 | 1,000 |  |  | 1,000 |
| December 31,
| 2023 |  | 2022
8.375%, due June 2032 | 240 |  |  | 240 |
7.625%, due April 2037 | 300 |  |  | 300 |
EPNG senior notes(b) |  |  |
7.50%, due November 2026 | 200 |  |  | 200 |
3.50%, due February 2032 | 300 |  |  | 300 |
8.375%, due June 2032 | 300 |  |  | 300 |
CIG senior notes(b) |  |  |
4.15%, due August 2026 | 375 |  |  | 375 |
6.85%, due June 2037 | 100 |  |  | 100 |
EPC Building, LLC, promissory note, 3.967%, due January 2022 through December 2035 | 330 |  |  | 348 |
Trust I Preferred Securities, 4.75%, due March 2028(e) | 221 |  |  | 220 |
Other miscellaneous debt(f) | 234 |  |  | 242 |
Total debt – KMI and Subsidiaries | 31,929 |  |  | 31,673 |
Less: Current portion of debt | 4,049 |  |  | 3,385 |
Total long-term debt – KMI and Subsidiaries(g) | $ | 27,880 |  |  | $ | 28,288 |
(a)Weighted average interest rate on borrowings at December 31, 2023 was 5.68%. (b)Notes provide for the redemption at any time at a price equal to 100% of the principal amount of the notes plus accrued interest to the redemption date plus a make whole premium and are subject to a number of restrictions and covenants. The most restrictive of these include limitations on the incurrence of liens and limitations on sale-leaseback transactions. (c)As of December 31, 2022, we had outstanding an associated floating-to-fixed interest rate swap agreement which was designated as a cash flow hedge. (d)Consists of senior notes denominated in Euros that have been converted to U.S. dollars and are respectively reported above at the December 31, 2023 exchange rate of 1.1039 U.S. dollars per Euro and at the December 31, 2022 exchange rate of 1.0705 U.S. dollars per Euro. As of December 31, 2023 and 2022, the cumulative changes in the exchange rate of U.S. dollars per Euro since issuance had resulted in an increase of $9 million and a decrease of $8 million, respectively. As of December 31, 2023, we had outstanding associated cross-currency swap agreements which are designated as cash flow hedges. (e)Capital Trust I (Trust I), is a 100%-owned business trust that as of December 31, 2023, had 4.4 million of 4.75% trust convertible preferred securities outstanding (referred to as the Trust I Preferred Securities). Trust I exists for the sole purpose of issuing preferred securities and investing the proceeds in 4.75% convertible subordinated debentures, which are due 2028. Trust I’s sole source of income is interest earned on these debentures. This interest income is used to pay distributions on the preferred securities. We provide a full and unconditional guarantee of the Trust I Preferred Securities. There are no significant restrictions from these securities on our ability to obtain funds from our subsidiaries by distribution, dividend or loan. The Trust I Preferred Securities are non-voting (except in limited circumstances), pay quarterly distributions at an annual rate of 4.75% and carry a liquidation value of $50 per security plus accrued and unpaid distributions. The Trust I Preferred Securities outstanding as of December 31, 2023 are convertible at any time prior to the close of business on March 31, 2028, at the option of the holder, into the following mixed consideration: (i) 0.7197 of a share of our Class P common stock; and (ii) $25.18 in cash without interest. We have the right to redeem these Trust I Preferred Securities at any time. (f)Includes finance lease obligations with monthly installments. The lease terms expire between 2026 and 2070. (g)Excludes our “Debt fair value adjustments” which, as of December 31, 2023 and 2022, increased our combined debt balances by $187 million and $115 million, respectively. In addition to all unamortized debt discount/premium amounts, debt issuance costs and purchase accounting on our debt balances, our debt fair value adjustments also include amounts associated with the offsetting entry for hedged debt and any unamortized portion of proceeds received from the early termination of interest rate swap agreements. For further information about our debt fair value adjustments, see “—Debt Fair Value Adjustments” below. On January 31, 2023, we issued in a registered offering, $1,500 million aggregate principal amount of 5.20% senior notes due 2033 for net proceeds of $1,485 million, which were used to repay short-term borrowings, maturing debt and for general corporate purposes. On February 1, 2024, we issued in a registered offering, two series of senior notes consisting of $1,250 million aggregate principal amount of 5.00% senior notes due 2029 and $1,000 million aggregate principal amount of 5.40% senior notes due 2034 and received combined net proceeds of $2,230 million. We and substantially all of our wholly owned domestic subsidiaries are party to a cross guarantee agreement whereby each party to the agreement unconditionally guarantees, jointly and severally, the payment of specified indebtedness of each other party to the agreement. Current Portion of Debt The following table details the components of our “Current portion of debt” reported on our consolidated balance sheets:
|  | December 31,
|  | 2023 |  | 2022
|  | (In millions)
$3.5 billion credit facility due August 20, 2027 |  | — |  |  | — |
$500 million credit facility due November 16, 2023 |  | — |  |  | — |
Commercial paper notes |  | 1,989 |  |  | — |
Current portion of senior notes |  |  |  |
3.15%, due January 2023(a) |  | — |  |  | 1,000 |
Floating rate, due January 2023(b) |  | — |  |  | 250 |
3.45%, due February 2023 |  | — |  |  | 625 |
3.50%, due September 2023 |  | — |  |  | 600 |
5.625%, due November 2023 |  | — |  |  | 750 |
4.15%, due February 2024(c) |  | 650 |  |  | — |
4.30%, due May 2024 |  | 600 |  |  | — |
4.25%, due September 2024 |  | 650 |  |  | — |
Trust I Preferred Securities, 4.75% due March 2028(d) |  | 111 |  |  | 111 |
Current portion of other debt |  | 49 |  |  | 49 |
Total current portion of debt |  | $ | 4,049 |  |  | $ | 3,385 |
(a)On January 17, 2023, we repaid these senior notes using cash on hand and short-term borrowings. (b)These senior notes had an associated floating-to-fixed interest rate swap agreement which was designated as a cash flow hedge. (c)On February 1, 2024, we repaid these senior notes using cash on hand and short-term borrowings. (d)Reflects the portion of cash consideration payable if all the outstanding securities as of the end of the reporting period were converted by the holders. Credit Facility and Restrictive Covenants We have a $3.5 billion revolving credit facility due August 2027 with a syndicate of lenders, which can be increased by up to $1.0 billion if certain conditions, including the receipt of additional lender commitments, are met. Borrowings under our credit facility can be used for working capital and other general corporate purposes and as backup to our commercial paper program. We had a $500 million credit facility that expired on November 16, 2023. We maintain a $3.5 billion commercial paper program through the private placement of short-term notes which matures in August 2027. The notes mature up to 270 days from the date of issue and are not redeemable or subject to voluntary prepayment by us prior to maturity. The notes are sold at par value less a discount representing an interest factor or if interest bearing, at par. Borrowings under our commercial paper program reduce the borrowings allowed under our credit facility. Depending on the type of loan request, our borrowings under our credit facility bears interest at either (i) SOFR, plus (x) a credit spread adjustment and (y) an applicable margin ranging from 1.000% to 1.750% per annum based on our credit ratings or (ii) the greatest of (1) the Federal Funds Rate plus 0.5%; (2) the Prime Rate; or (3) SOFR for a one-month eurodollar loan, plus (x) a credit spread adjustment, (y) 1%, and (z) in each case, an applicable margin ranging from 0.100% to 0.750% per annum based on our credit rating. Standby fees for the unused portion of the credit facility will be calculated at a rate ranging from 0.100% to 0.250%. Our credit facility contains financial and various other covenants that apply to us and our subsidiaries and are common in such agreements, including a maximum ratio of Consolidated Net Indebtedness to Consolidated EBITDA (as defined in the credit facility, as amended) of 5.50 to 1.00, for any four-fiscal-quarter period. Other negative covenants include restrictions on our and certain of our subsidiaries’ ability to incur debt, grant liens, make fundamental changes or engage in certain transactions with affiliates, or in the case of certain material subsidiaries, permit restrictions on dividends, distributions or making or prepayments of loans to us or any guarantor. Our credit facility also restricts our ability to make certain restricted payments if an event of default (as defined in the credit facility) has occurred and is continuing or would occur and be continuing. As of December 31, 2023, we had no borrowings outstanding under our credit facility, $1,989 million borrowings outstanding under our commercial paper program and $81 million in letters of credit. Our availability under our credit facility as of December 31, 2023 was approximately $1.4 billion. For the years ended December 31, 2023, 2022, and 2021, we were in compliance with all required covenants. Maturities of Debt The scheduled maturities of the outstanding debt balances, excluding debt fair value adjustments as of December 31, 2023, are summarized as follows:
Year |  | Total
|  | (In millions)
2024 |  | $ | 4,049 |
2025 |  | 1,566 |
2026 |  | 1,102 |
2027 |  | 906 |
2028 |  | 1,867 |
Thereafter |  | 22,439 |
Total |  | $ | 31,929 |
Debt Fair Value Adjustments The following table summarizes the “Debt fair value adjustments” included on our accompanying consolidated balance sheets:
|  | December 31,
|  | 2023 |  | 2022
|  | (In millions)
Purchase accounting debt fair value adjustments |  | $ | 430 |  |  | $ | 472 |
Carrying value adjustment to hedged debt |  | (236) |  |  | (367) |
Unamortized portion of proceeds received from the early termination of interest rate swap agreements(a) |  | 185 |  |  | 204 |
Unamortized debt discounts, net |  | (67) |  |  | (68) |
Unamortized debt issuance costs |  | (125) |  |  | (126) |
Total debt fair value adjustments |  | $ | 187 |  |  | $ | 115 |
(a)As of December 31, 2023, the weighted-average amortization period of the unamortized premium from the termination of interest rate swaps was approximately 11 years. Fair Value of Financial Instruments The carrying value and estimated fair value of our outstanding debt balances is disclosed below:
| December 31, 2023 |  | December 31, 2022
| Carrying value |  | Estimated fair value(a) |  | Carrying value |  | Estimated fair value(a)
| (In millions)
Total debt | $ | 32,116 |  |  | $ | 31,370 |  |  | $ | 31,788 |  |  | $ | 30,070 |
(a)Included in the estimated fair value are amounts for our Trust I Preferred Securities of $207 million and $195 million as of December 31, 2023 and 2022, respectively. We used Level 2 input values to measure the estimated fair value of our outstanding debt balance as of both December 31, 2023 and 2022. Interest Rates, Interest Rate Swaps and Contingent Debt The weighted average interest rate on all of our borrowings was 5.84% during 2023 and 4.76% during 2022. Information on our interest rate swaps is contained in Note 14. For information about our contingent debt agreements, see Note 13 “Commitments and Contingent Liabilities—Contingent Debt”).

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1E -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I + Details
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