Kinder Morgan : First Quarter 2024 2024 EPNG First Quarter

CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(excluding footnotes)

EL PASO NATURAL GAS COMPANY, L.L.C.

As of March 31, 2024 and December 31, 2023 and

For the Three Months Ended March 31, 2024 and 2023

EL PASO NATURAL GAS COMPANY, L.L.C. AND SUBSIDIARIES

TABLE OF CONTENTS

	Page
	Number
Consolidated Financial Statements (Unaudited)
Consolidated Statements of Income	1
Consolidated Balance Sheets	2
Consolidated Statements of Cash Flows	3
Consolidated Statements of Member's Equity	4

EL PASO NATURAL GAS COMPANY, L.L.C. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In millions, unaudited)

Three Months Ended

March 31,

	2024			2023
Revenues	$	214	$	226
Operating Costs and Expenses
Operations and maintenance		63		60
Depreciation and amortization		26		25
General and administrative		12		12
Taxes, other than income taxes		8		10
Other income		(8)		-
Total Operating Costs and Expenses		101		107
Operating Income		113		119
Other Income (Expense)
Interest, net		(12)		(12)
Other, net		-		3
Total Other Expense		(12)		(9)
Net Income	$	101	$	110

1

EL PASO NATURAL GAS COMPANY, L.L.C. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In millions, unaudited)

		March 31,	December 31,
		2024		2023
ASSETS
Current assets
Cash and cash equivalents	$	-	$	-
Accounts receivable		83		79
Inventories		47		48
Prepayments		19		23
Other current assets		3		10
Total current assets		152		160
Property, plant and equipment, net		2,206		2,202
Goodwill		565		565
Notes receivable from affiliate		27		26
Postretirement benefits assets		162		163
Deferred charges and other assets		131		135
Total Assets	$	3,243	$	3,251
LIABILITIES AND MEMBER'S EQUITY
Current liabilities
Accounts payable	$	57	$	69
Accrued taxes, other than income taxes		24		22
Contractual deposits		20		21
Contractual liabilities		24		17
Regulatory liabilities		6		8
Other current liabilities		19		16
Total current liabilities		150		153
Long-term liabilities and deferred credits
Long-term debt		800		800
Debt fair value adjustments		58		60
Regulatory liabilities		58		54
Other long-term liabilities and deferred credits		34		36
Total long-term liabilities and deferred credits		950		950
Total Liabilities		1,100		1,103
Member's Equity
Member's equity		2,120		2,125
Accumulated other comprehensive income		23		23
Total Member's Equity		2,143		2,148
Total Liabilities and Member's Equity	$	3,243	$	3,251

2

EL PASO NATURAL GAS COMPANY, L.L.C. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions, unaudited)

Three Months Ended

March 31,

		2024		2023
Cash Flows From Operating Activities
Net income	$	101	$	110
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		26		25
Changes in components of working capital:
Accounts receivable		(4)		10
Accounts payable		(4)		(1)
Other current assets and liabilities		22		30
Other long-term assets and liabilities		4		(13)
Net Cash Provided by Operating Activities		145		161
Cash Flows From Investing Activities
Capital expenditures		(34)		(22)
Net change in notes receivable from affiliates		(1)		1
Other, net		(4)		(3)
Net Cash Used in Investing Activities		(39)		(24)
Cash Flows From Financing Activities
Contribution from Member		7		-
Distributions to Member		(113)		(137)
Net Cash Used in Financing Activities		(106)		(137)
Net Change in Cash and Cash Equivalents		-		-
Cash and Cash Equivalents, beginning of period		-		-
Cash and Cash Equivalents, end of period	$	-	$	-
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest (net of capitalized interest)	$	5	$	5

3

EL PASO NATURAL GAS COMPANY, L.L.C. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF MEMBER'S EQUITY

(In millions, unaudited)

Three Months Ended

March 31,

		2024		2023
Beginning Balance	$	2,148	$	2,123
Net income		101		110
Contribution		7		-
Distributions		(113)		(137)
Ending Balance	$	2,143	$	2,096

4