Kinder Morgan, Inc. · NYSE:KMI

Kinder Morgan — Kinder Morgan Energy Partners — 2010 KMP Analyst Conference

32 slides from Kinder Morgan's conference presentation, Jan 28, 2010

  1. Slide 1: Terminals

    ENERGY PARTNERS, L.P. Terminals Jeff Armstrong President Terminals Group

  2. Slide 2: Kinder Morgan Terminal Locations

    ENERGY PARTNERS, L.P. Kinder Morgan Terminal Locations 2 2 3 2 3 2 3 2 3 2 2 2 2 2 2 2 2 4 4 2 2 4 3 2 2 4 2 4 2 2 Legend 4 3 10 4 7 3 2 Dry and/or Break Bulk Locations 2 Liquid Locations Product Pipelines Locations Transload Operations 2

  3. Slide 3: Historical Growth

    ENERGY PARTNERS, L.P. Historical Growth 2006 2007 2008 2009 2010 Actual (a) Actual (a) Actual (a) Actual (a) Budget Earnings before DD&A 396,858 442,330 538,836 576,096 655,198 Growth from prior year 24.74% 11.46% 21.82% 6.91% 13.73% Internal 14.16% 2.33% 14.67% 5.98% 5.77% Acquisition 10.58% 9.13%

  4. Slide 4: Financials

    ENERGY PARTNERS, L.P. Financials 2008 Actual 2009 Actual 2010 Budget Revenue (net) $1,139,380 $1,081,679 $1,228,412 Opex $580,421 $501,175 $564,795 EBITDA (a) $558,959 $580,504 $663,617 Book Income Tax $20,123 $4,408 $8,419 Earnings Before DD&A $538,836 $576,096 $655,198 Sustaining Capital (b) $63,4

  5. Slide 5: 2010 DCF

    ENERGY PARTNERS, L.P. 2010 DCF DCF MIX = $575 Bulk 42% Liquids 58% Liquids Revenue by Bulk Revenue by Contract Term Contract Term Under Under 1 Year 1 Year 3+ 15% 9% Years 3+ 29% Years 36% 1-2 2-3 years 1-2 Years 2-3 46% years 12% Years 44% 9% 5

  6. Slide 6: Diversification by Commodity

    ENERGY PARTNERS, L.P. Diversification by Commodity Liquids Revenue Breakout Bulk Revenue Breakout Building Materials Cement & Clinker Alcohol Soda Ash Other Liquids 2% 2% 1% Oil Fields 3% 2% Vegetable Oils 1% Animal Fats Break Bulk 3% 0% Salt 1% Ores / Metal Coal & Petcoke 3% Chemicals Break Bulk 40

  7. Slide 7: Major Projects To Be Completed: 2009, 2010, 2011 (Bulk)

    ENERGY PARTNERS, L.P. Major Projects To Be Completed: 2009, 2010, 2011 Capacity KM Investment BULK – Project In Service (tons per year) Product ($MM) Coal Yard Expansion, Cora Terminal 2Q 2,500,000 Coal $13.0 Port of Houston Bulk Terminal 4Q 1,200,000 Petcoke $5.4 2009 Port Manatee, FL 4Q 160,000 Sa

  8. Slide 8: Major Projects To Be Completed: 2009, 2010, 2011 (Liquids)

    ENERGY PARTNERS, L.P. Major Projects To Be Completed: 2009, 2010, 2011 Capacity KM Investment LIQUIDS – Project In Service (barrels) Product ($MM) Vancouver Wharves Terminal (4 Tanks) Q2 225,000 Diesel $14.3 (a) 2009 GP/Pasadena Phase IV Expansion Q2/Q3/Q4 600K/750K/450K Gasoline / Diesel $113.7 Q2

  9. Slide 9: Bulk Tonnage

    ENERGY PARTNERS, L.P. Bulk Tonnage 2008 2009 Budget 2010 Coal 34,326,931 27,812,674 29,878,068 Petcoke 14,827,741 12,941,751 12,452,441 Cement (Including Clinker) 530,943 454,239 470,000 Fertilizers 5,995,611 5,729,932 6,255,762 Salt 3,433,735 3,729,041 3,079,398 Ores/Metals (Bulk) 24,298,394 13,308

  10. Slide 10: Liquids Throughput

    ENERGY PARTNERS, L.P. Liquids Throughput 2008 2009 Budget 2010 Chemical 23,368,017 20,201,436 17,924,325 Distillate 175,679,405 185,858,013 191,608,176 Petroleum 350,040,975 349,675,570 371,073,853 Fuel Grade Ethanol 30,696,754 32,878,090 65,131,683 (a) Other 7,150,019 7,645,496 4,035,466 KMLT Throu

  11. Slide 11: Renewable Fuels

    ENERGY PARTNERS, L.P. Renewable Fuels 11

  12. Slide 12: Renewable Fuel Volume Requirements for RFS2

    ENERGY PARTNERS, L.P. Renewable Fuel Volume Requirements for RFS2 (Volumes stated in billions of gallons, except where noted) Total Non- Non- Total Renewable Total Renewable Biomass- Biomass-Based Cellulosic Advanced Advanced Fuel Fuel Year Diesel Biofuel Biofuels Biofuels Requirement Barrels per Da

  13. Slide 13: U.S. Ethanol Supply / Demand Forecast

    ENERGY PARTNERS, L.P. U.S. Ethanol Supply / Demand Forecast 18 18 16 16 14 14 12 12 Billion Gallons Billion Gallons 10 10 8 8 6 6 4 4 2 2 0 0 2008 2009 2010 2011 2012 2013 2014 2015 Demand Production Capacity __________________________ Source: 2010 Houston BioFuels Consultants LLC 13

  14. Slide 14: Global Ethanol Demand Forecast

    ENERGY PARTNERS, L.P. Global Ethanol Demand Forecast Global Fuel Ethanol Demand Forecast 40 40 Rest of World Europe 35 Brazil 35 US 30 30 Billion Gallons Billion Gallons 25 25 20 20 15 15 10 10 5 5 0 0 08 09 10 11 12 13 14 15 20 20 20 20 20 20 20 20 __________________________ Source: 2010 Houston Bi

  15. Slide 15: Global Production Capacity

    ENERGY PARTNERS, L.P. Global Production Capacity Global Ethanol Production Forecast 40 40 Rest of World Europe 35 35 Brazil US 30 30 Billion Gallons Billion Gallons 25 25 20 20 15 15 10 10 5 5 0 0 08 09 10 11 12 13 14 15 20 20 20 20 20 20 20 __________________________ 20 15 Source: 2010 Houston BioF

  16. Slide 16: KM Plays a Leading Role in the Distribution of Ethanol in the US

    ENERGY PARTNERS, L.P. KM Plays a Leading Role in the Distribution of Ethanol in the US KMT E thanol Handling 2009 2010p KMPP E thanol Handling 2009 2010p Storage (K bbls) 3,515 4,459 Storage (K bbls) 1,359 1,369 Throughput (K bbls) 32,878 65,132 Throughput (K bbls) 22,931 27,044 We provide a nationa

  17. Slide 17: KMT Response to the Ethanol Market

    ENERGY PARTNERS, L.P. KMT Response to the Ethanol Market US Development Acquisition Linden, NJ Transload Terminal 2010 EBITDA - $27.34M  21.21 acre site  Current storage: 470,000 barrels (expansion planned)  Can handle 100 railcar unit trains, CSX and NS served Baltimore, MD Transload Terminal 

  18. Slide 18: KMT Response to Ethanol Market

    ENERGY PARTNERS, L.P. KMT Response to Ethanol Market  2010  Build national footprint of renewable energy terminals at existing gasoline distribution terminals  Purchased three major unit train locations  Build new rail terminal with ADM in Richmond, California  Build new unit train location in

  19. Slide 19: Clean Petroleum Products

    ENERGY PARTNERS, L.P. Clean Petroleum Products 19

  20. Slide 20: U.S. Inventory Levels Remain Above 5-Year Averages

    ENERGY PARTNERS, L.P. U.S. Inventory Levels Remain Above 5-Year Averages U.S. Gasoline and Distillate Inventories 260 Total motor gasoline inventory Forecast 240 220 200 180 Total distillate fuel inventory Million 160 barrels 140 120 100 80 0 60 Jan 2006 Jan 2007 Jan 2008 Jan 2009 Jan 2010 Jan 2011

  21. Slide 21: Distillate Inventories Reflect Much More Supply than Demand

    ENERGY PARTNERS, L.P. Distillate Inventories Reflect Much More Supply than Demand Distillate Inventories OECD Europe United States (Thousand Barrels) (Thousand Barrels) 320,000 180,000 300,000 170,000 160,000 280,000 150,000 260,000 140,000 240,000 130,000 220,000 120,000 110,000 200,000 100,000 180

  22. Slide 22: In 2008, U.S. Shifted from Net Importer to Net Exporter of Distillate

    ENERGY PARTNERS, L.P. In 2008, U.S. Shifted from Net Importer to Net Exporter of Distillate U.S. Distillate Net Imports U.S. Distillate Exports 300 700 Other Thousand Barrels Per Day Thousand Barrels Per Day 200 600 Western Europe 100 500 Latin America 0 400 -100 300 -200 200 -300 100 -400 0 2004 20

  23. Slide 23: Non U.S. Refinery Construction Outlook through 2015

    ENERGY PARTNERS, L.P. Non U.S. Refinery Construction Outlook through 2015 Estimated Production Increases (Volumes stated in thousands of barrels per day) Residual Other Total Year Gasoline (a) Distillates Fuel Products (b) Production 2010 458 457 (109) 194 1,000 2011 490 616 11 90 1,207 2012 444 670

  24. Slide 24: Liquids Freights

    ENERGY PARTNERS, L.P. Liquids Freights  KMLT is likely to see increased liquids imports due to international refinery expansions coming online and tanker vessel supply keeping freight rates low relative to pre-2009 levels Avg Liquid Tanker Rates vs. Available Liquid Tanker Fleet Avg Liquid Tanker R

  25. Slide 25: KM Response

    ENERGY PARTNERS, L.P. KM Response  During 2009, Kinder Morgan Terminals renewed 7.2M barrels of storage capacity for an average term of six years  This represents about 13% of KMT’s total liquid fuel storage capacity of 57.5M barrels  Throughput rate increases in the renewals averaged 39% ($0.16

  26. Slide 26: Coal

    ENERGY PARTNERS, L.P. Coal 26

  27. Slide 27: Coal – U.S. Domestic Supply, Demand, and Inventories

    ENERGY PARTNERS, L.P. Coal – U.S. Domestic Supply, Demand, and Inventories (a) Production / Consumption  The past 10 yr annual avg of consumption as a pct of production was 97%, in 2009 only 92% of production was consumed in US market  2010 forecasts anticipate recovering consumption to meet stead

  28. Slide 28: Coal – Demand for Illinois Basin (IB) Coal Supply

    ENERGY PARTNERS, L.P. Coal – Demand for Illinois Basin (IB) Coal Supply Scrubbers Bring More IB Coal Online  138 scrubbers are planned to come online at U.S. Utilities between 2010 – 2019  Increased service of scrubbers at plants will bring increasing demand for Illinois Basin coal Mining Companie

  29. Slide 29: Coal – International Coal Markets

    ENERGY PARTNERS, L.P. Coal – International Coal Markets World Coal Production Worldwide coal demand will increase 10,000 9,151 9,899 beyond 2010 8,466 9,000 7,917 7,402 8,000 Metallurgical Coal Demand 7,000 6,000  Met- Met-coal imports to Europe and Asia are Short Tons 5,000 forecasted to recover i

  30. Slide 30: Dry Bulk Freights

    ENERGY PARTNERS, L.P. Dry Bulk Freights  Dry Bulk imports are likely to benefit from favorable dry bulk vessel charter rates—more depressed than tanker charter rates—due to the same vessel growth trend seen in the tanker fleet Avg Dry Bulk Charter Rates vs. Available Dry Bulk Fleet Avg Dry Bulk Cha

  31. Slide 31: Kinder Morgan Response

    ENERGY PARTNERS, L.P. Kinder Morgan Response Available KM Coal Terminal Storage Pinney Dock 750,000 tons OH Domestic Growth Opportunities Grand Rivers 500,000 tons KY Cora 250,000 tons IL  KM terminals have ample capacity for added storage of overrun for utility coal supply IMT 500,000 tons LA  Co

  32. Slide 32: Gateway Warehouse

    ENERGY PARTNERS, L.P. KM Response: Signed PSA w/ Slay Terminals - 2010 EBITDA $13.1MM • Located in Sauget, IL on 84 acres of owned land Cahokia Marine Services • Approx. 126K Bbl. of tankage; coal, Slay Bulk Terminal petcoke, minerals, etc. • Direct service via the UP & KCS (BN, CSX & NS via KCS) •

Kinder Morgan Energy Partners — 2010 KMP Analyst Conference on 6ix