Kinder Morgan KMI · USD

12. Commitments and Contingent Liabilities Capital CommitmentsAs of December 31, 2025, we had capital commitments of approximately $2,020 million. We have other planned capital and investment projects that are discretionary in nature, with no substantial contractual capital commitments made in advance of the actual expenditures.Rights-Of-WayOur rights-of-way obligations primarily consist of non-lease agreements that existed at the time of Topic 842, Leases, adoption, at which time we elected a practical expedient which allowed us to continue our historical treatment. Our future minimum rental commitments related to our rights-of-way obligations were $96 million as of December 31, 2025.Contingent DebtOur contingent debt disclosures pertain to certain types of guarantees or indemnifications we have made and cover certain types of guarantees included within debt agreements, even if the likelihood of requiring our performance under such guarantee is remote.As of December 31, 2025 and 2024, our contingent debt obligations totaled $127 million and $149 million, respectively. These amounts include our proportional share of the debt obligations of one equity investee, Cortez Pipeline Company (Cortez). Under such guarantees we are severally liable for our percentage ownership share of Cortez’s debt in the event of its non-performance. The contingent debt obligations balances as of December 31, 2025 and 2024 also include $91 million and $120 million, respectively, of debt issued by a subsidiary of Cortez that is 100% guaranteed by us. Guarantees and Indemnifications We are involved in joint ventures and other ownership arrangements that sometimes require financial and performance guarantees. In a financial guarantee, we are obligated to make payments if the guaranteed party fails to make payments under, or violates the terms of, the financial arrangement. In a performance guarantee, we provide assurance that the guaranteed party will execute on the terms of the contract. If they do not, we are required to perform on their behalf. We also periodically provide indemnification arrangements related to assets or businesses we have sold. These arrangements include, but are not limited to, indemnifications for income taxes, the resolution of existing disputes, and environmental matters.

9. Share-based Compensation and Employee Benefits Share-based CompensationClass P Common StockFollowing is a summary of our stock compensation plans:Directors’ PlanLong Term Incentive PlanParticipating individualsEligible non-employee directorsEligible employeesTotal number of shares of Class P common stock authorized1,190,000 63,000,000 Vesting period6 months1 year to 10 yearsKinder Morgan, Inc. Second Amended and Restated Stock Compensation Plan for Non-Employee DirectorsWe have a Kinder Morgan, Inc. Second Amended and Restated Stock Compensation Plan for Non-Employee Directors (Directors’ Plan). The plan recognizes that the compensation paid to each eligible non-employee director is fixed by our board of directors (Board), generally annually, and that the compensation is payable in cash. Pursuant to the plan, in lieu of receiving some or all of the cash compensation, each eligible non-employee director may elect annually to receive shares of Class P common stock. During the year ended December 31, 2025, we made restricted Class P common stock grants to our non-employee directors of 9,620.Kinder Morgan, Inc. 2021 Amended and Restated Stock Incentive PlanWe also have a Kinder Morgan, Inc. 2021 Amended and Restated Stock Incentive Plan (Long Term Incentive Plan). The following table sets forth a summary of activity and related balances under our Long Term Incentive Plan:SharesWeighted Average Grant Date Fair Value per Share(In thousands, except per share amounts)Outstanding at December 31, 202413,405 $18.30 Granted3,420 27.97 Vested(4,573)17.50 Forfeited(409)19.00 Outstanding at December 31, 202511,843 $21.38 The following tables set forth additional information related to our Long Term Incentive Plan:Year Ended December 31,202520242023(In millions, except per share amounts)Weighted average grant date fair value per share$27.97 $20.27 $17.41 Intrinsic value of awards vested during the year128 70 93 Restricted stock awards expense(a)68 64 60 Restricted stock awards capitalized(a)11 10 9 (a)The above amounts represents total compensation costs and we allocate labor and benefit costs to joint ventures that we operate in accordance with our partnership agreements.December 31, 2025Unrecognized restricted stock awards compensation costs, less estimated forfeitures (in millions)$132 Weighted average remaining amortization period2.04 yearsPension and Other Postretirement Benefit (OPEB) PlansSavings PlanWe maintain a defined contribution plan covering eligible U.S.

Cybersecurity Risk Management and StrategyWe employ a comprehensive strategy for identifying and addressing cybersecurity risks that is consistent with the security directives issued by TSA where required and aligned with the U.S. Department of Commerce’s National Institute of Standards and Technology Framework for Improving Critical Infrastructure Cybersecurity. This framework outlines standards and practices to promote the protection of critical infrastructure. We utilize a risk-based approach that focuses on critical systems where failure or exploitation could potentially impact the safety or reliability of our key assets or operations. Cybersecurity risks are integrated into our overall risk management processes, including, for example, quarterly security briefings with senior management, tabletop exercises with operations, finance and other company personnel, and by employing a continuous improvement model for our cyber protection strategy that is aligned with the DHS’s National Infrastructure Protection Plan risk management framework.Our management team has engaged third-party experts to provide guidance related to management of supply chain cybersecurity risks. Our strategy includes both short- and long-term initiatives to increase the security surrounding our assets and is supplemented using third-party threat monitoring, rigorous security protocols, and government partnerships. We perform cybersecurity assessments with respect to third parties who provide critical services or who have access to or store critical confidential data.We have not identified any cybersecurity threats that have materially impaired or are reasonably likely to materially impair our operations or financial standing. Please read Item 1A. “Risk Factors—Risks Related to Our Business—A breach of information security or the failure of one or more key IT or operational (OT) systems, or those of third parties, may adversely affect our business, results of operations, or business reputation.” and “ Attacks, including acts of terrorism or cyber sabotage, or the threat of such attacks, may adversely affect our business or reputation.” for discussions of risks from cybersecurity threats we face.Measures We Take to Monitor and our Procedures for Responding to Data Breaches or CyberattacksWe have made investments to address data and cybersecurity risks.

5. Property, Plant, and Equipment, net As of December 31, 2025 and 2024, our property, plant, and equipment, net consisted of the following: Straight-LineEstimated Useful LifeCompositeDepreciation RatesDecember 31, 20252024(Years) (%)(In millions)Interstate Natural Gas FERC-RegulatedPipelines (Natural gas)1.09-6.67$12,583 $12,376 Equipment (Natural gas)1.09-6.6710,118 9,488 Other(a)0.00-331,124 1,143 Accumulated depreciation, depletion, and amortization(11,092)(10,712)Depreciable assets12,733 12,295 Land54 51 Construction work in process454 568 Total interstate natural gas FERC-regulated13,241 12,914 OtherPipelines (Natural gas, liquids, refined products, crude oil and CO2) 5-400.09-33.339,697 8,933 Equipment (Natural gas, liquids, refined products, crude oil, CO2 and terminals)5-400.09-33.3321,425 20,243 Other(a)3-100.00-33.335,790 5,587 Accumulated depreciation, depletion, and amortization(12,970)(11,470)Depreciable assets23,942 23,293 Land785 786 Construction work in process1,363 1,020 Total other26,090 25,099 Property, plant, and equipment, net$39,331 $38,013 (a)Includes general plant, general structures and buildings, land rights-of-way, computer and communication equipment, intangibles, vessels, transmix products, linefill, and miscellaneous property, plant, and equipment.Depreciation, depletion and amortization expense for property, plant, and equipment, net was $2,233 million, $2,127 million, and $2,020 million for the years ended December 31, 2025, 2024, and 2023, respectively.

18. Recent Accounting PronouncementsAccounting Standards UpdatesASU No. 2024-03On November 4, 2024, the FASB issued ASU No. 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40).” This ASU improves financial reporting by requiring that public business entities disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. This ASU will be effective for annual periods beginning after December 15, 2026, for interim reporting periods beginning after December 15, 2027, and early adoption is permitted. Management is currently evaluating this ASU to determine its impact on the Company’s disclosures.ASU No. 2025-06On September 18, 2025, the FASB issued ASU No. 2025-06, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.” This ASU modernizes the accounting guidance for the costs to develop software for internal use by removing outdated stage-based cost capitalization rules and replacing them with a probability-based cost-capitalization framework that aligns better with current software development methods. This ASU will be effective for annual periods beginning after December 15, 2027, for interim reporting periods beginning within those annual periods, and early adoption is permitted. Management is currently evaluating this ASU to determine its impact on the Company’s financial statements.ASU No. 2025-09On November 25, 2025, the FASB issued ASU No. 2025-09, “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements.” This ASU makes targeted improvements to Topic 815 to better align hedge accounting with the economics of an entity’s risk-management activities. This ASU will be effective for annual periods beginning after December 15, 2026, for interim reporting periods beginning within those annual periods, and early adoption is permitted. Management is currently evaluating this ASU to determine its impact on the Company’s financial statements.ASU No. 2025-10On December 4, 2025, the FASB issued ASU No. 2025-10, “Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities.” This ASU establishes guidance on the recognition, measurement, and presentation of government grants received by business entities, an area not previously addressed under US GAAP.

2. Summary of Significant Accounting PoliciesBasis of PresentationOur reporting currency is U.S. dollars, and all references to dollars are U.S. dollars, unless stated otherwise. Our accompanying consolidated financial statements have been prepared 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 (ASC), the single source of GAAP. Under such rules and regulations, all significant intercompany items have been eliminated in consolidation. Additionally, certain amounts from prior years have been reclassified to conform to the current presentation.Use of EstimatesCertain amounts included in or affecting our financial statements and related disclosures must be estimated, requiring us to make certain assumptions with respect to values or conditions which cannot be known with certainty at the time our financial statements are prepared. These estimates and assumptions affect the amounts we report for assets and liabilities, our revenues and expenses during the reporting period, and our disclosures, including those related to contingent assets and liabilities at the date of our financial statements. We evaluate these estimates on an ongoing basis, utilizing historical experience, consultation with experts, and other methods we consider reasonable in the particular circumstances. Nevertheless, actual results may differ significantly from our estimates. Any effects on our business, financial position, or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known.Certain accounting policies are of more significance in our financial statement preparation process than others, and set out below are the principal accounting policies we apply in the preparation of our consolidated financial statements.Cash Equivalents and Restricted DepositsWe define cash equivalents as all highly liquid short-term investments with original maturities of three months or less.Amounts included in the restricted deposits in the accompanying consolidated financial statements represent a combination of restricted cash amounts required to be set aside by regulatory agencies to cover obligations for our captive insurance subsidiary and cash margin deposits posted by us with our counterparties associated with certain energy commodity contract positions.