Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Kinder Morgan 2014 Analysts Conference
42 slides from Kinder Morgan's conference presentation, Jan 29, 2014
Slide 1: Natural Gas Pipelines
Natural Gas Pipelines Tom Martin President Natural Gas Pipeline Group
Slide 2: Natural Gas Segment
Natural Gas Segment (a) Growth Drivers: Shale-driven expansions / extensions LNG exports — Liquefaction facilities — Pipeline infrastructure Gas demand for power generation — Coal plant retirements — Regional demand growth Exports to Mexico Repurposing opportunities _______________________
Slide 3: Financial Overview
Financial Overview KM Gas Pipeline Group 2014 EBDDA (KM-share) $ Million 2014 2014 By Region Budget By Entity Budget West 1,025.9 KMI 271.3 Central 194.2 KMP 2,752.3 East 1,803.3 EPB 1,285.3 Midstream 1,285.5 Total 4,308.9 Total 4,308.9 2014 Highlights Copano full-year impact TGP expansions/In-s
Slide 4: Contracted Capacity and Term by Region
Contracted Capacity and Term by Region Contracted Average Term Region Capacity Remaining East Storage 133 Bcf 3 yr, 6 mo Transport 17.9 Bcf/d 8 yr, 10 mo LNG 18 Bcf 18 yr, 5 mo Interstate West Storage 39 Bcf 6 yr, 0 mo Transport Contracts Transport 16.7 Bcf/d 5 yr, 6 mo Avg. = 7 yr, 1 mo Central Sto
Slide 5: Projects Placed Into Service - 2013
Projects Placed Into Service - 2013 5
Slide 6: Copano Acquisition
Copano Acquisition Expanded midstream footprint Copano Asset Overview Broader reach into the Eagle Ford Shale - 6,800 miles of natural gas pipelines Larger starting point in emerging Eaglebine/Woodbine play - 3.6 Bcf/d of gas throughput capacity New entry into other rich gas plays - 460 miles
Slide 7: Gas Pipeline Group Major Projects
Gas Pipeline Group Major Projects 7
Slide 8: Region Asset Reviews
KINDER/MORGAN Region Asset Reviews
Slide 9: East Region Assets
East Region Assets (a) Growth Drivers: Asset footprint provides a base for serving growing and supply-constrained markets from both traditional and developing supply regions TGP uniquely positioned in growing Marcellus and Utica shale plays to provide region-wide access to both Gulf Coast and No
Slide 10: East Region Project Backlog
East Region Project Backlog 10
Slide 11: TGP - Utica Backhaul Transportation
TGP - Utica Backhaul Transportation Capacity: 400 MDth/d Long-term 100 MDth/d Short-term Capital: $155.6 MM Estimated In-service: April 2014 Project Scope: Pipe modifications at 8 compressor stations Commercial Benefit: Southbound capacity from Utica Shale to Gulf Coast markets Rate: Dis
Slide 12: TGP - Rose Lake Project
TGP - Rose Lake Project Capacity: 230 MDth/d Commercial Benefit: Expand TGP’s capacity to Capital: $83.0 MM transport Marcellus Shale production to Canada Estimated In-service: November 2014 and New England Project Scope: Rate: Negotiated — Station 315 - 12,600 HP new compression Avg.
Slide 13: TGP - Niagara Expansion
TGP - Niagara Expansion Capacity: 158 MDth/d Capital: $26.0 MM Estimated In-service: November 2015 Project Scope: — 3.1 miles of 30-inch pipe looping — Station 229 meter facilities — Lease on National Fuel Gas (140 MDth/d) Commercial Benefit: Provides additional market for Marcellus gas an
Slide 14: TGP - Connecticut Expansion Project
TGP - Connecticut Expansion Project Capacity: 72.1 MDth/d Capital: $76.9 MM Estimated In-service: November 2016 Project Scope: — 13.3 miles of pipeline loop — Acquisition of Thompsonville Lateral Commercial Benefit: Additional capacity to serve New England market Rate: Negotiated Avg.
Slide 15: TGP - Cameron LNG
TGP - Cameron LNG Capacity: 900 MDth/d Capital: $138.4 MM Estimated In-service: Q4 2017 Project Scope: — Compressor station modifications to accommodate bi-directional flow — 18,000 HP of new compression — New pipeline laterals for enhanced supply access to the Perryville Hub Commercial Be
Slide 16: SNG / Elba Express Expansion
SNG / Elba Express Expansion Capacity: 333 MDth/d Capital: $168.0 MM (a) Estimated In-service: June 2016 Project Scope: — Compression on SNG and EEC — Additional pipeline and other facilities Commercial Benefit: Additional access to Marcellus/Utica shale gas for existing and new SNG custom
Slide 17: Liquefaction at Elba Island
Liquefaction at Elba Island Elba Liquefaction Company (ELC) / SLNG Capacity: 350 MMcf/d (Phase I & II(a)) Capital (KM-share, $MM): Phase I Phase II(a) ELC (KM 51%) $533.0 $224.4 SLNG (KM 100%) 271.0 - EEC (KM 100%) 79.9 31.3 Total $883.9 $255.7 (a) Based on 4 units Estimated In-service: — 4Q 2
Slide 18: East Region Additional Potential Growth Projects
East Region Additional Potential Growth Projects Additional Marcellus / Utica Project Opportunities — Enormous production increases in these two areas will provide expansion and greenfield opportunities to move more gas into the Northeast and significant quantities south to the demand centers on t
Slide 19: East Region Growth Opportunity
East Region Growth Opportunity TGP Northeast Expansion Capacity: 1.0+ Bcf/d PNGTS & M&NP Joint Facilities Capital: Approx. $1.75 - $2.75 B Estimated In-service: November 2018 TGP Northeast Expansion Wright M&NP Project Scope: Dracut — Approx. 175 miles of greenfield pipe for connection to TG
Slide 20: West Region Assets
West Region Assets (a) Growth Drivers: Large asset footprint provides numerous opportunities for expansion capital investment West Region pipelines reach back to all Rockies Basins. — Growing liquids and oil production is creating expansion opportunities for associated gas and conversions Comp
Slide 21: West Region Project Backlog
West Region Project Backlog 21
Slide 22: EPNG - Sierrita Pipeline
EPNG - Sierrita Pipeline Capacity: 204 MDth/d Arizona Capital (KM-share): $71.5 MM Estimated In-service: Phase I: October 2014 Tucson Project Scope: Tohono O’odham — Sierrita Pipeline Co. – JV, Kinder Morgan Sierrita Indian Res. 35% ownership interest and operator Buenos Aires Nat’l Wildlife
Slide 23: CIG - High Plains Expansion
CIG - High Plains Expansion Capacity: 600 MDth/d Capital (KM-share): $11.2 MM Estimated In-service: — November 2013 (DCP) — July 2014 (Anadarko) Project Scope: — 8 miles of 24-inch pipe, regulation, and metering at Cheyenne into WIC — Lancaster Meter Station (Anadarko) and LaSalle Meter Stat
Slide 24: CIG - DJ Basin Project
CIG - DJ Basin Project Capacity: 100 MDth/d Capital: $14.7 MM Estimated In-service: Q1 2015 Project Scope: — Connect 7.6 miles of pipe to CIG for $12.0 MM — Build 3.3 miles of 16-inch pipe to CIG High Plains — Metering Commercial Benefit: Project to connect processing plant within the DJ B
Slide 25: West Region Additional Potential Growth Projects
West Region Additional Potential Growth Projects Growth in exports to Mexico — Total incremental Mexico growth by 2025 projected up to 2.1 Bcf/d that can be served from the EPNG footprint • Incremental power generation demand growth on Willcox, Samalayuca laterals and Sierrita • Creates opportunit
Slide 26: West Region Growth Opportunity
West Region Growth Opportunity Mexico Incremental Gas Demand Potential Est. Avg. Daily Gas No. of Capacity Demand Key Demand Type Projects (MW) (MMcf/d) Electric Gen Conversions 7 4,241 534 Electric Gen New Builds 12 8,493 1,070 Industrial Potential 513 Total Incremental Mexico Demand Potential 2,11
Slide 27: West Region Growth Opportunity
West Region Growth Opportunity CIG Powder River Lateral Conversion to NGL Service Capacity: 60-100 MBbls/d Capital: $75-100MM Estimated In-service: 2015 Project Scope: — Conversion of 16-inch lateral to liquids service — Connect with Overland Pass Pipeline at Laramie — Requires pump and mete
Slide 28: Central Region Assets
Central Region Assets Growth Drivers: Large and strategic asset footprint near major shale plays and supply basins provides opportunities to attach new supply Potential to serve 10 Bcf/d of transportation demand from 5 announced LNG liquefaction projects along the Gulf Coast near NGPL and KMLP —
Slide 29: Central Region Project Backlog
Central Region Project Backlog 29
Slide 30: Central Region Opportunity
Central Region Opportunity KMLP - LNG Liquefaction Transport Project Capacity: 700 MDth/d Capital: $129.1 MM Estimated In-service: 4Q 2018 Project Scope: — Kinder Morgan Louisiana Pipeline converted to a bi- directional pipe — Located in Calcasieu and Acadia Parishes, Louisiana Commercial
Slide 31: Central Region Additional Potential Growth Projects
Central Region Additional Potential Growth Projects LNG Liquefaction Opportunities — LNG liquefaction projects moving forward in South Texas/Louisiana provide potential expansion investment opportunities on both NGPL and KMLP Future Power Plant Load — Continue to work with power plants identifie
Slide 32: Central Region Growth Opportunity
Central Region Growth Opportunity KMLP - LNG Liquefaction Transport Capacity: 0.7-1.9 MMDth/d Capital: $70-350MM Estimated In-service: Late 2018 Project Scope: — Kinder Morgan Louisiana Pipeline converted to a bi- directional pipe — Located in Calcasieu and Acadia Parishes, Louisiana Comme
Slide 33: Midstream Assets
Midstream Assets Growth Drivers: Large asset footprint provides continued expansion capital investment Copano acquisition provides expanded footprint and midstream services while leveraging G&P experience and expertise across portfolio of KM assets, including the development of new NGL initiativ
Slide 34: Midstream Project Backlog
Midstream Project Backlog 34
Slide 35: Mier Monterrey Expansion
Mier Monterrey Expansion Capacity: 215 MMcf/d Capital: $126.3MM Estimated In-service: — September 2014 (compression) — January 2015 (conditioning plant) Project Scope: — Compressor station (U.S.) — Conditioning plant (U.S.) — Webb 14-inch pipe replacement (U.S.) — Leased compression (Mexico)
Slide 36: Calpine Magic Valley
Calpine Magic Valley Capacity: 90 MDth/d Capital: $26.4MM Estimated In-service: March 2014 (compression) Project Scope: 23 miles of 16-inch pipe, compression and meter Commercial Benefit: Provides additional capacity to serve power plants in deep south Texas Current Status: — Executed 90
Slide 37: DK Expansion (incl. TXP3)
DK Expansion (incl. TXP3) Capacity: 400 MMcf/d Capital: $250.1MM Estimated In-service: — June 2014 (pipeline) — July 2014 (plant) Project Scope: — 400 MMcf/d cryogenic plant — 8 miles of 24-inch pipe — 6,720 HP compression Commercial Benefits: — Expands gathering and processing capacity in
Slide 38: Eagle Ford Fractionation Outlet
Eagle Ford Fractionation Outlet Capacity: 30 MBbls/d Capital: $20.0MM Expected In-service: 3Q 2015 Project Scope: 26 miles of 12-inch pipeline from Markham to a NGL fractionator near Sweeny, TX Commercial Benefits: — Provides economic outlet for NGLs produced from expanded Houston Central
Slide 39: Eaglebine Project
Eaglebine Project Capacity: 45 MMcf/d Capital: $24.3MM Estimated In-service: 3Q 2014 Project Scope: — Convert 50 miles of existing pipeline for rich gas service — 100 GPM amine treater and dehydration unit — 3 gas chill units (15 MMcf/d each) — 6.5 miles of natural gas pipelines — 4-mile Y-g
Slide 40: Midstream Additional Potential Growth Projects
Midstream Additional Potential Growth Projects Exports — Electric generators in Mexico are looking towards natural gas to fuel new plants to meet growth and replace other fuels such as oil — Proposed LNG liquefaction projects in South Texas Processing and Gathering — Continued growth in shale pl
Slide 41: Midstream Growth Opportunities
Midstream Growth Opportunities Gulf Coast LNG Opportunities LNG export terminals announced to come on-line in 2017-19 along the Texas Gulf Coast: Golden Pass LNG (Sabine Pass, TX) — 2.1 Bcf/d Freeport LNG (Freeport, TX) — 2.1 Bcf/d Excelerate (Lavaca Bay, TX) — Small scale floating LNG process
Slide 42: Gas Pipeline Group Growth Outlook
Gas Pipeline Group Growth Outlook 42
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