Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Investor Day (January 2006)
28 slides from Kinder Morgan's investor day presentation, Jan 24, 2006
Slide 1: Natural Gas Pipelines
Natural Gas Pipelines Scott Parker – President
Slide 2: Gas Pipeline Group - Growth Opportunities
Gas Pipeline Group - Growth Opportunities ($ millions) Existing Interstate Expansion Projects Capex — AG Cross Haul Expansion (NGPL) $ 20.7 — Sayre & No Lansing Storage Expansion (NGPL) $ 99.5 — Segment 17 Expansion (NGPL) $ 17.0 — TransColorado Expansion $ 12.6 Intrastate Pipelines — West Rancho $
Slide 3: NGPL A-G Cross Haul Expansion
NGPL A-G Cross Haul Expansion Install 5,500 HP at existing Station 801 Install 1,800 HP at existing Station 155 ") 156 OKLAHOMA $20.7 MM capex 51,000 Crosshaul & 20,000 Seg #1capacity Fully Contracted Lawton 51, Construction ") 812 ongoing 801 ") 000 Service commencing Spring 2006 Wichita Falls 000
Slide 4: NGPL 10 Bcf Sayre Storage Expansion
NGPL 10 Bcf Sayre Storage Expansion Install 7,500 HP at existing Station 184 22 new wells, gathering looping $35.3 MM capex 10 Bcf of additional storage capacity Fully Contracted Service commencing Spring 2006 Oklahoma 102 159 Texas 158 112 Oklahoma 111 City 154 184 Amarillo 156 Sayre Storage Lawton
Slide 5: NGPL 10 Bcf No Lansing Storage Expansion
NGPL 10 Bcf No Lansing Storage Expansion 10,000 HP compression 12 new wells, 16 re-completions Oklahoma 10.25 Bcf additional capacity $64.2 MM capex 802 Texas Fully Contracted Filed 7C Application with FERC Service projected Spring, 2007 North Lansing Dallas Storage NGPL 388 Marshall Longview 304 5
Slide 6: NGPL Segment 17 Expansion
NGPL Segment 17 Expansion 9,500 HP compression 140 MMcf/day additional capacity Oklahoma $17 MM capex Fully Contracted 802 Texas Blanket Certificate Service projected Fall 2006 New Dallas Compressor NGPL Station 388 Marshall Longview 304 6
Slide 7: Future Projects on NGPL
Future Projects on NGPL Continue to Pursue Expansion and Extension Projects off our existing Asset Base NGPL Expand Texok to Louisiana Segments — Provide greater access to and away from the Henry Hub Storage Expansions — Expansions of existing storage infrastructure Synergies with affiliated Pipelin
Slide 8: TransColorado Expansion Greasewood Compression
TransColorado Expansion Greasewood Compression Sand Wash Northbound Expansion • 300 MDth/d of additional capacity via Piceance Basin phase in of 4,000 HP of new Greasewood compression, new meters, etc. Uinta • $12.6 MM of capex with an Grand Junction De Beque additional $3.8 MM for compression UTAH
Slide 9: Intrastate Pipelines Expansion Projects – West Rancho
Intrastate Pipelines Expansion Projects – West Rancho West end of Rancho (Austin to McCamey) put in service in October 2005 $46 million scope included conversion of 254 miles of 24” crude line to natural gas service; acquisition of two pipeline systems with 90 miles of pipelines to access supply and
Slide 10: Intrastate Pipelines Expansion Projects – Markham Storage
Intrastate Pipelines Expansion Projects – Markham Storage Put in service in April 2005 a 3rd cavern with working capacity of 6 Bcf $33 million project included compression and surface facilities for 100 MMcfd of additional injection and 250 MMcfd of additional withdrawal which was put in service dur
Slide 11: Intrastate Pipelines Expansion Projects – Dayton Storage
Intrastate Pipelines Expansion Projects – Dayton Storage Acquired the North Dayton Storage Facility in August from Texas Genco for approximately $100 million (cash and debt). Transaction included a long term contract to provide storage and transportation services to Texas Genco’s power plants Facili
Slide 12: Gulf Coast LNG Opportunity
Gulf Coast LNG Opportunity ") ! ") ") Henry Pipeline Footprint will allow Katy ") )" ") ") Sempra - & SU Trunkline -") & # * ! ! ") Cameron 300 MMcf/day the Intrastate the opportunity j k ") 1.5 Bcf/day expansion to capture LNG transport and ") # * ! ! balancing business as the ") BP market develops
Slide 13: Interstate Pipelines Major Projects
Interstate Pipelines Major Projects KM Louisiana Pipeline (LNG) & Rockies Express Pipeline 13
Slide 14: Kinder Morgan Louisiana Pipeline LLC
Kinder Morgan Louisiana Pipeline LLC Texas Louisiana CGT Delivery Point 340 Transco Delivery Point ( ( TETCO Delivery Point ( ANR Delivery Point ( ( ( ( Texas Gas Delivery Point FGT Delivery Point Cypress Delivery Point ( ( Trunkline Delivery Point Lake Charles LNG Lafayette 302 Southern Union Co. L
Slide 15: LNG Kinder Morgan Louisiana Pipeline
LNG Kinder Morgan Louisiana Pipeline Capital - $484 MM Project Description Rayne Lateral (Leg 1) NGPL Lateral 1, 597,500 Dth/d Rayne Lateral 137 miles 42” 2,130,000 Dth/d 2,130,000 Dth/d Sabine Pass Facility In-service by April 1st, 2009 NGPL Lateral (Leg 2) 1 mile 36” 1,597,500 Dth/d In
Slide 16: Kinder Morgan Louisiana Pipeline: Initial Capacity Sold Out
LNG Kinder Morgan Louisiana Pipeline Initial Project Capacity is Sold Out… Executed Precedent Agreement with Chevron USA MDQ: 1,697,500 Dth Negotiated Rate: Fixed for term of contract Term: 20 years Executed Precedent Agreement with Total Gas & Power North America, Inc MDQ: 1,697,500 Dth/d Negotiate
Slide 17: Kinder Morgan Louisiana Pipeline: Future Growth Potential
LNG Kinder Morgan Louisiana Pipeline Beyond the Initial Project… Real Future Growth Potential: Currently in discussions to connect additional LNG Plants to the Pipeline Potential for near term increase in initial project size or expansion of project Increase of 300,000 to 1 bcf in capacity Capex
Slide 18: Project Overview Entrega & Rockies Express
Project Overview Entrega & Rockies Express 18
Slide 19: Project Overview - Entrega
Project Overview - Entrega Entrega Pipeline Phase I: Purchase Segment 1 (130 miles): − 36” pipeline, Meeker to Wamsutter − Flow gas est. February 2006 Complete Segment 2 (200 miles): − 42” pipeline, Wamsutter to Cheyenne Hub − In-Service est. December 2006 Costs to Purchase & Complete 8/8s: $6
Slide 20: Project Overview – Rockies Express
Project Overview – Rockies Express Rockies Express Pipeline Construction of 42 inch, 1,323 mile pipeline from Cheyenne Hub to Clarington, Ohio with 1.5 to 2 Bcf/d transport capacity Projected capital cost: Depending on final project size 8/8s - $3.4 to $3.7 Billion Includes over 20 interconnecti
Slide 21: Project Overview – Rockies Express
Project Overview – Rockies Express 21
Slide 22: Pipeline Take Away Capacity
Pipeline Take Away Capacity 22
Slide 23: Project Support – Shipper Commitments
Project Support – Shipper Commitments The Project received approximately 1.3 bcf of conforming binding firm commitments during the recently concluded open seasons held to solicit shipper support for an expansion of Entrega and the construction of the Rockies Express Pipeline. Shippers have until Jan
Slide 24: Rockies Express Construction Progress
Rockies Express Construction Progress November – Engineering / Environmental and ROW contractors engaged FERC NEPA pre-filing process commenced on Certificate 1 Segment December – Public Outreach meetings held for Certificate 1 Segment FERC NEPA pre-filing docketed Center-line survey commenced Janua
Slide 25: Rockies Express Pipeline Future Opportunities
Rockies Express Pipeline Future Opportunities… Significant additional growth potential via other Opportunities to be captured… Storage and LPS service Development and sale of storage off the pipeline Interruptible and short haul service Hub service at various key locations Extensions and expansion
Slide 26: Rockies Express Pipeline Storage Opportunities
Rockies Express Pipeline Storage Opportunities 26
Slide 27: Summary for Gas Pipeline Group
Summary for Gas Pipeline Group The Future…. Base business growth on existing assets… - Re-contract existing pipeline and storage capacity - Capture margin growth on existing capacity Growth opportunities from new projects focused on: - Rockies Express and KM Louisiana Pipeline - New Projects to enha
Slide 28: Kinder Morgan
KINDER’ MORGAN