Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Kinder Morgan 2011 Analyst Conference
29 slides from Kinder Morgan's conference presentation, Mar 24, 2011
Slide 1: Natural Gas Pipelines
Natural Gas Pipelines Tom Martin President Natural Gas Pipeline Group
Slide 2: Overview
Overview Market Environment Shale activity providing excellent growth opportunities Transport spreads remain flat Storage spreads softer in short-term Processing margins continue to be very strong and roughly equivalent to 2010 performance Value Proposition Strong asset base with secure ca
Slide 3: Natural Gas Pipelines and Facilities
Natural Gas Pipelines and Facilities 3
Slide 4: Financial Overview
Financial Overview ($ in millions) ‘10-‘11 2006 2007 2008 2009 2010 2011B Change EBDA (a) $501.1 $548.4 $738.9 $825.4 $932.2 $1,034.5 $102.3 Sustaining Capex (27.4) (29.9) (29.9) (22.7) (17.5) (28.8) (11.2) DCF $473.7 $518.5 $709.0 $802.7 $914.7 $1,005.7 $91.0 10% 2011 Highlights: FEP project in f
Slide 5: Contracted Capacity and Term
Contracted Capacity and Term Contracted Avg. Term Capacity Remaining Interstate KM Interstate Gas Storage 10.7 Bcf 3 yr, 11 mo Transport 0.9 Bcf/d 4 yr, 5 mo TransColorado Transport 1.0 Bcf/d 5 yr, 2 mo Trailblazer Transport 1.0 Bcf/d 4 yr, 7 mo Transport Contracts Rockies Express Transport 1.8 Bcf/
Slide 6: Asset Summaries
KINDER/MORGAN Asset Summaries
Slide 7: Rockies Express Pipeline (REX)
Rockies Express Pipeline (REX) REX 1,679 miles of 36” and 42” pipeline Originates in Meeker, CO and terminates in Clarington, OH Transports Rocky Mountain production to premium Northeast markets JV between KMP (50%), Sempra (25%) and ConocoPhillips (25%); KMP operates Capacity = 1.8 Bcf/d
Slide 8: REX Opportunities and Challenges
REX Opportunities and Challenges Opportunities 200,000 Dth/d Meeker to Cheyenne expansion — Fully-subscribed — Leg one, in-service December 2009 — Leg two, in-service October 2010 — 40% below original cost estimate Park & loan service Interruptible and short haul service (ITS, PAWS) Extensio
Slide 9: Kinder Morgan Interstate Gas Transmission (KMIGT)
Kinder Morgan Interstate Gas Transmission (KMIGT) KMIGT 4,500 miles of various diameter pipelines Markets: — LDCs, industrials, & ag. in NE, KS, & MO — Marketers transporting to mid-continent pipelines — End users including ethanol plants Growth — Storage — Colorado lateral Capacity — Transp
Slide 10: KMIGT Opportunities and Challenges
KMIGT Opportunities and Challenges Opportunities Huntsman storage expansion — 10,000 Dth/d incremental firm storage service — Started service with shipper on February 1, 2010 under long-term binding contract — Phase I construction completed December 2009 — Phase II construction completed 3rd quart
Slide 11: TransColorado Gas Transmission
TransColorado Gas Transmission TransColorado 301 miles of 22” & 24” pipeline Originates at Greasewood, CO and terminates at Blanco, NM Bi-directional Flow — Capacity north - 650 MDth/d — Capacity south • Phase I - 150 MDth/d • Phase II - 425 MDth/d FERC-regulated 11
Slide 12: TransColorado Opportunities and Challenges
TransColorado Opportunities and Challenges Opportunities Completed project with Enterprise to transport Greasewood gas directly to Enterprise plant — Project supported by long-term binding contract Year-on-year drilling rig count and production volumes have improved in the Piceance Basin — Jan-M
Slide 13: Trailblazer Pipeline
Trailblazer Pipeline Trailblazer 436 miles of pipe 3 compressor locations with 58,000 HP Max throughput = 0.878 Bcf/d Low cost pipeline out of region Long-term contracts FERC-regulated No rate case filing obligation until 2014 13
Slide 14: Trailblazer Pipeline Update
Trailblazer Pipeline Update Settlement with customers deferred rate case obligation from December 2009 to January 2014 Trailblazer provided a rate reduction for most shippers in 2010 and an additional reduction beginning January 2011 Settlement reduced demand revenues for 2011 by $3.8MM (less
Slide 15: Midcontinent Express Pipeline (MEP)
Midcontinent Express Pipeline (MEP) MEP 507 miles of 42”, 36” and 30” pipe Originates at Enogex, Bennington and terminates at Transco Station 85 Capacity: — Zone 1: 1.8 Bcf/d — Zone 2: 1.2 Bcf/d JV between KMP (50%), Regency (49%) and Energy Transfer (1%); KMP operates Pipeline fully-subsc
Slide 16: MEP Expansion Progress and Commercial Opportunities
MEP Expansion Progress and Commercial Opportunities Expansions fully in-service mid-year 2010 and below budget — Zone 1 400 MDth/d • 100 MDth/d – May 1, 2010 (pre-approved capacity) • 300 MDth/d – June 1, 2010 (expansion capacity) — Zone 2 200 MDth/d – June 2010 Zone 2 expandability (up to 300 M
Slide 17: Kinder Morgan Louisiana Pipeline (KMLP)
Kinder Morgan Louisiana Pipeline (KMLP) KMLP 133 miles of 42” pipe Originates at Cheniere Sabine pass LNG and interconnects with 12 interstate pipelines Two storage fields connected to pipeline Capacity: 3.2 Bcf/d Pipeline fully-subscribed with 20-year contacts FERC-regulated 17
Slide 18: Kinder Morgan Louisiana Pipeline Commercial Opportunities
Kinder Morgan Louisiana Pipeline Commercial Opportunities Multiple interconnections – with additional facilities, may capture opportunities between major interstate pipelines and storage Potential interconnections with other LNG terminals Opportunity to transport supply for LNG export Opport
Slide 19: Fayetteville Express Pipeline (FEP)
Fayetteville Express Pipeline (FEP) FEP 185 miles of 42” pipe One compressor station with 72,000 HP Capacity: 2.0 Bcf/d 15 receipt points (producer specific) 4 delivery meters JV between KMP (50%) and Energy Transfer (50%); Energy Transfer operates 1.85 Bcf/d capacity under long-term c
Slide 20: FEP Update
FEP Update Pipeline, meter and compression construction completed; clean-up, right-of-way restoration and minor facilities work such as painting continue — 2.0 Bcf/d of initial pipeline capacity — Project costs projected at $0.98 billion, substantially less than original estimate of $1.26 billion
Slide 21: Natural Gas Pipeline Company of America (NGPL)
KMI (20% Ownership) Natural Gas Pipeline Company of America (NGPL) NGPL Pipeline miles: 9,200 KM-operated Market area deliverability: 5.0 Bcf/d Storage working gas capacity: 278 Bcf (8 fields) Direct or one-pipe-away access to most major U.S. and Canadian supply basins west of the Mississi
Slide 22: KinderHawk Field Services (KHFS)
KinderHawk Field Services (KHFS) KHFS 50/50 joint venture with PetroHawk in northwest Louisiana Gathering and treating services for Haynesville/Bossier Shale 365.5 miles of pipe installed to date Over 2 Bcf/d of capacity Well-positioned to access over 20 Tcf of gas 2,160 GPM of treating ca
Slide 23: KinderHawk Field Services Commercial Opportunities
KinderHawk Field Services Commercial Opportunities PetroHawk gathering agreement — Life of lease dedication — Agreed upon gathering and treating rates — Increasing minimum volume commitment for 5 years Third party agreements — Secured new third party gas gathering and treating transactions in 20
Slide 24: Texas Intrastate Pipelines
Texas Intrastate Pipelines Texas Intrastates 6,000 miles of pipeline Over 5 Bcf/d capacity (5.5 Bcf/d peak day) 145 Bcf of storage Access to 685 MMcf/d processing capacity 180 MMcf/d CO2 treating capacity Combination of fee-for- service, and purchase / sale activity Texas Railroad Comm
Slide 25: Texas Intrastate Pipelines Key Attributes
Texas Intrastate Pipelines Key Attributes Well-positioned assets — Built to serve Houston / Beaumont area -- largest natural gas market in the world — Connected to essentially all major gas consumers in the area — Gas supply available from major basins across Texas and both Texas LNG terminals — C
Slide 26: Texas Intrastate Pipelines Growth Opportunities
Texas Intrastate Pipelines Growth Opportunities Large asset footprint provides real and continued opportunities for expansion capital investment Eagle Ford Shale — Eagle Ford gathering JV with Copano for rich gas — KM 100% on lean gas opportunities Other pipe conversions to rich gas service — Mc
Slide 27: Eagle Ford Gathering JV
Eagle Ford Gathering JV Eagle Ford Gathering JV 50/50 Joint Venture with Copano in S. Tx Total KM capex approximately $136MM Supply Lateral Approximately 111 miles of 30” and 24” pipeline under construction – expected in-service 3Q 2011 Capacity expanded from 375,000 to 600,000 MMBtu/d Gas s
Slide 28: Growth Opportunities in 2011, 2012 and Beyond
Growth Opportunities in 2011, 2012 and Beyond 2011 Full-year effect of new projects and acquisitions — FEP, KinderHawk New growth continues with expansions, Eagle Ford and Dayton Storage to be placed fully in service 2012 and beyond - long term / future growth Shale gas — TX Intrastates – Eagl
Slide 29: Kinder Morgan
KINDER/MORGAN
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