Barclays Investment Banking Pitch Book
Cost of Capital Improvement
Yield on LP Units / C-Corp Yield (¹)
% GP Gross Up
Effective Yield
Indicative Growth Range
Cost of Equity
Equity / (Debt+ Equity) (%)
Equity Component
Average Cost of Debt
Interest Tax Shield
Cost of Debt
Debt / (Debt +Equity) (%)
Debt Component
Cost of Capital
Summary
BARCLAYS
KMP
6.95%
54%
12.86%
ΝΑ
12.86%
50%
6.43%
3.75%
3.75%
50%
1.88%
8.31%
Current Yield
Assumed
Pro Forma KMI
4.50%
15
4.50%
ΝΑ
4.50%
50%
2.25%
4.13%
36.5%
2.62%
50%
1.31%
Note: KMP acts as primary growth vehicle in Status Quo
1. Based on KMP's current trading price and 2014E dividend of $5.58 per unit.
2. Status Quo KMP and Pro Forma KMI per Company management assumes 50% / 50% mix of fixed and floating debt.
3.56%
Current Yield + Indicative Growth
Assumed
Pro Forma KMI
4.50%
KMP
6.95%
54%
12.86%
5.0%
17.86%
50%
8.93%
3.75%
3.75%
50%
1.88%
Fairness Opinion Analysis
10.81%
4.50%
10.0%
14.50%
50%
7.25%
4.13%
36.5%
2.62%
50%
1.31%
8.56%View entire presentation