Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Kinder Morgan 2011 Analyst Conference
32 slides from Kinder Morgan's conference presentation, Mar 24, 2011
Slide 1: Terminals
Terminals Jeff Armstrong President Terminals Group
Slide 2: Terminal Locations
Terminal Locations 2 2 3 2 3 33 2 2 2 2 2 2 2 4 2 3 3 2 2 2 5 2 Netherlands 2 2 Legend 4 3 2 3 2 2 Dry and/or Break Bulk Locations 3 7 Liquid Locations Product Pipelines Locations Transload Operations 2
Slide 3: Historical Growth
Historical Growth ($ in millions) 2006 2007 2008 2009 2010 2011B Segment EBDA (a) $396.9 $442.3 $538.8 $576.1 $646.6 $713.2 Growth from prior year 24.7% 11.5% 21.8% 6.9% 12.2% 10.3% Internal 14.2% 2.3% 14.7% 6.0% 6.6% 6.6% Acquisition 10.6% 9.1% 7.1% 0.9% 5.6% 3.6% Compound Annual Growth Rate = 13.1
Slide 4: Financial Overview
Financial Overview ($ in millions) 2008 2009 2010 2011B Revenue (net) $1,139.4 $1,081.7 $1,244.8 $1,310.8 Opex 580.5 501.2 591.5 585.8 EBITDA 558.9 580.5 653.3 725.0 Book income tax 20.1 4.4 6.7 11.8 EBDA 538.8 576.1 646.6 713.2 Sustaining capital (a) 63.4 64.6 77.3 84.3 DCF $475.4 $511.5 $569.3 $62
Slide 5: Contract Diversification
Contract Diversification Liquids Revenue Breakout (a) Bulk Revenue Breakout (a) Vegetable & Other Oils Other Liquids 2% 3% Break Petroleum Crude/Semi- Biodiesel Building Materials Salt Bulk Refined Soda Ash 1% 3% 1% Ores/Metals 4% 3% 5% Breakbulk 7% Ancillary Services Ores/Metals Bulk Chemicals Fert
Slide 6: Currently Approved Major Projects: 2010, 2011, 2012
Currently Approved Major Projects: 2010, 2011, 2012 Liquid / Bulk Capacity Capacity Capex Project In-service (MMt/yr) (MBbls) Product ($MM) New Ship Unloader Crane, Port Sutton Q4 (a) Fertilizers $7.5 Ship Loader, Vancouver Wharves, BC Q2 2.8 Copper 22.3 (e) Tank – Galena Park, TX Q2 125 Gasoline/Di
Slide 7: Bulk Tonnage
Bulk Tonnage __________________________ Note: acquisition tonnages represented as owned during prior periods 7
Slide 8: Liquids Throughput
Liquids Throughput __________________________ Note: 2009 throughput was revised during 2010 8
Slide 9: Coal / Petcoke
KINDER/MORGAN Coal / Petcoke
Slide 10: Global Demand
Global Demand Seaborne Global Thermal & Metallurgical Coal Demand (MMt) __________________________ Source: Wood Mackenzie 10
Slide 11: International Metallurgical Coal
International Metallurgical Coal Market Conditions & Drivers Global Met Coal Trade Global Steel Production (MMt) Met Coal Imports (MMt) 2008 2009 2010E Europe 73 41 46 Japan 66 66 73 China 7 36 45 Korea 20 16 18 India 24 23 27 Brazil 16 13 14 Other 28 26 29 World Imports 234 221 252 China Met Coal D
Slide 12: International Steam Coal
International Steam Coal Market Conditions & Drivers Over 300 MMt per year demand for steam coal coming 94 GW of New Coal-fired from new coal plants coming online around the world. Generation On-line in 2010 Chinese import steam coal jumps from 1 MMt per month in June of 2007 and 2 MMt in 2008,
Slide 13: KM Plays a Leading Role in the U.S. Distribution of Coal
KM Plays a Leading Role in the U.S. Distribution of Coal KM Coal Handling (TPY) 2009 2010 2011 Throughput (MMt) 32.8 31.6 41.2 Export (MMt) 7.9 13.6 Milwaukee Bulk Fairless Hills Terminal Terminal Import Domestic Coal and Export Coal Cahokia Terminal Domestic Coal Chesapeake Terminal Import Coal Kel
Slide 14: KM Response to the World Coal Market
KM Response to the World Coal Market “Increase outlet options and operating capacity” East Coast Coal Capacity Additions: • 2 projects completed @ $77M • Projects under construction @ $41MM Other Potential Projects - Gulf / East Coasts: • $167MM; 22 MMt in additional export capacity PRB App ILB • Pu
Slide 15: KM is the Leader in Petcoke Handling in the U.S.
KM is the Leader in Petcoke Handling in the U.S. KM Petcoke Handling (TPY) 2009 2010 2011 Ohio Valley Throughput (MMt) 12.9 12.6 13.4 • Evansville Total U.S. Tons (MMt) 37.1 • Pinney Dock Midwest • Cahokia • Grand River Terminal • Cora • BP Whiting (under construction) Mid Atlantic • Fairless Hills
Slide 16: Fuel-Grade Petcoke
Fuel-Grade Petcoke 2015 Regional Production / Demand Outlook (MMt) Production Demand 2010 ~78 ~78 2012 ~107 ~103 2015 ~136 ~138 __________________________ Source: 9th & 10th Annual Petroleum Coke Conferences - Jacob's Consultancy 16
Slide 17: KM Response to the Petcoke Market
KM Response to the Petcoke Market Under Construction (Acquisition) In Service Total Refining – Port Arthur, TX Houston Refining / Lyondell – — Timing: 2Q 2011 Houston, TX — Volume: 1,000,000 tpy gtd. — Double loop track, rail dump, belt — Investment: $74 million conveyors — Petcoke handling at c
Slide 18: Petroleum Supply / Demand Storage
Petroleum Supply / Demand Storage
Slide 19: Growing Worldwide Supply
Growing Worldwide Supply Worldwide Refinery Capacity Additions (MBbl/d) Roughly 5 MMBbl/d of new capacity to be built 2011-2015 New capacity in Asia / Pacific & ME – many government- owned ~600 MBbl/d new North American capacity – focus on USEC deliveries __________________________ Source: Bak
Slide 20: Gasoline Fundamentals
Gasoline Fundamentals Total Gasoline + Ethanol Inventories (MMBbls) Finished Gasoline Inventories (MMBbls) Gasoline Blending Component Inventories (MMBbls) Includes Ethanol Legend __________________________ Sources: CIBC, Weekly EIA Oil Fundamentals Snapshot, March 2, 2011 20
Slide 21: Distillate Fundamentals
Distillate Fundamentals Total Distillate Inventories (MMBbls) Heating Oil Inventories (MMBbls) Ultra Low + Low Sulfur Diesel Inventories (MMBbls) Legend __________________________ Sources: CIBC, Weekly EIA Oil Fundamentals Snapshot, March 2, 2011 21
Slide 22: Growing Middle Distillate Exports from the U.S. Since 2006
Growing Middle Distillate Exports from the U.S. Since 2006 U.S. Middle Distillate Exports (MBbl/d) __________________________ Source: EIA, Petroleum Supply Monthly 22
Slide 23: Renewable Fuels
KINDER/MORGAN Renewable Fuels
Slide 24: RFS2: Four Annual Standards
RFS2: Four Annual Standards 4. 3. 2. 1. Total annual renewable fuel standard is shown on top of each bar on chart __________________________ Source: 2011 Houston BioFuels Consultants LLC 24
Slide 25: KM Plays a Leading Role in the U.S. Distribution of Ethanol
KM Plays a Leading Role in the U.S. Distribution of Ethanol KMT Ethanol Handling 2010 2011p US Ethanol Demand 2010 2011p KMPP Ethanol Handling 2010 2011p Storage (MBbls) 4,415 4,962 Storage (MBbls) 1,369 1,568 Throughput (Bbl/d) 159,180 193,268 Throughput (Bbl/d) 811,285 874,103 Throughput (Bbl/d) 8
Slide 26: Only National Network of Ethanol Unit Train Facilities
Only National Network of Ethanol Unit Train Facilities Albany (Buckeye) Manly (Manly) Providence (Motiva) Albany(Global) KM Richmond Stockton (Pacific Ethanol) UC KM KM Argo/Chicago Sewaren (Motiva) Selby (Nustar) Linden Sauget (Seacor) KM KM Baltimore Carson Colton (USD) UC Birmingham (BioUrja) UC
Slide 27: Ethanol Projects: Linden and Deer Park
27 KM Linden Linden, NJ KM Carteret KM will connect the Linden Unit train facility with KM Carteret via direct pipe, to provide a larger storage base and a greater service offering. support tank (below) KM Ethanol Projects Pipeline DPRT to KM Truck Rack DPRT Rack (above) and 80k bbl Deer Park Rail
Slide 28: Rail Opportunities
KINDER/MORGAN Rail Opportunities
Slide 29: Why Watco?
Why Watco? Watco Consolidated EBITDA $80,000 $69,115 $70,000 $60,000 EBITDA ($000's) $50,000 $40,000 $30,000 $10,212 $20,000 $10,000 $0 2001A 2002A 2003A 2004A 2005A 2006A 2007A 2008A 2009A 2010P 2 2 3 2 3 3 2 2 2 Watco Overview 2 2 2 2 2 • Operates in 28 states/3700 miles 2 4 • Over 500,000 Carload
Slide 30: Why Partnership / Preferred Interest Structure
Why Partnership / Preferred Interest Structure Financial Components: Partnership Benefits: $50MM invested Preferred service agreement $100MM additional Significant growth investment potential opportunities — Project-specific Operating synergies Preferred distributions of Exceptional op
Slide 31: Prospects
Prospects Roll-up Potential Mature, Stable Markets Ownership Control of U.S. Shortlines 9% 11% 13% 25% 26% 8% 3% 70% 32% 3% Watco Genesee & Wyoming Lumber/Forest Products Metals & Minerals RailAmerica Independents (est. 340) Other Chemicals Coal Agriculture 31
Slide 32: Emerging Markets
Emerging Markets Crude Oil on Rail Ethanol on Rail No. of Carloads No. of Carloads 60,000 500,000 450,000 50,000 400,000 350,000 40,000 300,000 30,000 250,000 200,000 20,000 150,000 100,000 10,000 50,000 - - 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 __________________________ Source: Associa
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