KINDER MORGAN, INC.KMI

KINDER MORGAN, INC. Leases Disclosure

10-KFiled Feb 13, 20262 min read
16.  Leases

Following are components of our lease cost:
Year Ended December 31,
202520242023
(In millions)
Operating leases$74 $80 $71 
Short-term and variable leases152 131 127 
Total lease cost$226 $211 $198 

Other information related to our operating leases are as follows:
Year Ended December 31,
202520242023
(In millions,
except lease term and discount rate)
Operating cash flows from operating leases$(158)$(170)$(157)
Investing cash flows from operating leases(68)(41)(41)
ROU assets obtained in exchange for operating lease obligations, net of retirements25 36 56 
Amortization of ROU assets62 68 58 
Weighted average remaining lease term
8.06 years
8.15 years
8.72 years
Weighted average discount rate4.85 %4.84 %4.59 %

Amounts recognized in the accompanying consolidated balance sheets are as follows:
December 31,
Lease Activity(a)Balance sheet location20252024
(In millions)
ROU assetsDeferred charges and other assets$216 $253 
Short-term lease liabilityOther current liabilities49 60 
Long-term lease liabilityOther long-term liabilities and deferred credits167 193 
(a)We have immaterial financing leases recorded as of December 31, 2025 and 2024.
Operating lease liabilities under non-cancellable leases (excluding short-term leases) as of December 31, 2025 are as follows:
YearCommitment
 (In millions)
2026$59 
202741 
202827 
202925 
203021 
Thereafter105 
Total lease payments278 
Less: Interest(62)
Present value of lease liabilities$216 

Short-term lease costs are not material to us and are anticipated to be similar to the current year short-term lease expense outlined in this disclosure.

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 13, 2025
2023Feb 20, 2024
2022Feb 8, 2023
2021Feb 7, 2022
2020Feb 5, 2021
2019Feb 12, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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