Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Wells Fargo Kick the Tires Investor Meeting (June 2012)
20 slides from Kinder Morgan's conference presentation, Jun 5, 2012
Slide 1: Companies Run By Shareholders, For Shareholders
Companies Run By Shareholders, For Shareholders Richard Kinder Chairman and Chief Executive Officer June 5, 2012
Slide 2: Forward-Looking Statements / Non-GAAP Financial Measures
Forward-Looking Statements / Non-GAAP Financial Measures This presentation contains forward-looking statements. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts. In particular, statements, express or implied, concerning fut
Slide 3: Kinder Morgan
Kinder Morgan Who we are What is our strategy? Where are we going? 3
Slide 4: Who We Are: The KM System
Who We Are: The KM System (a) 4th largest energy company in North America with combined enterprise value of approximately $95 billion (b) Largest natural gas network in U.S. — Own an interest in / operate over 62,000 (a) miles of natural gas pipeline — Connected to every important U.S. natural g
Slide 5: Kinder Morgan – Four Ways to Invest
Kinder Morgan – Four Ways to Invest Cash Kinder Morgan, Inc. dividends KMI (Inc.) Market Equity $36.6B (a) 1 billion shares (a) Debt 16.0B (b) 440MM 278MM Enterprise Value $52.6B 319MM (42%) (31%) (27%) 2012E Dividend per Share $1.40 (c) 2012E Total Dividends $1,279MM (c) Public Management/ Sponsors
Slide 6: 16 Years of Consistent Growth
16 Years of Consistent Growth Total Distributions (GP + LP) ($MM) KMP Annual LP Distribution per Unit (b) $4.98 $3,500 $5.00 $4.61 $3,118 $4.40 GP LP $4.50 $4.20 $3,000 $2,737 $4.02 $4.00 $2,450 (a) $3.48 $2,500 $2,171 $3.50 $3.13 $3.26 $2.87 $1,877 $3.00 $2.63 $2,000 $2.44 $1,469 $2.50 $2.15 $1,500
Slide 7: Significant Historical Returns
Significant Historical Returns (a) KMP: 25% CATR Since ‘96 (b) KMI: 19% CATR Since Inception (e) $4,000 $140 Dollars KMP = $3,188 Dollars KMI = $119 $3,500 UTY= $117 $120 $3,000 $100 $2,500 MSCI = $113 $80 S&P 500 = $102 $2,000 $60 $1,500 AMZ (d) = $967 $40 $1,000 $500 $20 ⇐ IPO 2/10/2011 S&P 500 =
Slide 8: Stable, Diversified Cash Flow
Stable, Diversified Cash Flow Stable FERC-regulated, fee-based, long-haul, interstate pipeline revenue will constitute the largest portion of Kinder Morgan’s pro forma cash flow profile Cash flow stability supported by scale and scope of combined company’s comprehensive infrastructure system — N
Slide 9: What is Our Strategy?
What is Our Strategy? Overview Vision — Find mega-trends — Create opportunities Operational Excellence — Safety — Environmental — Efficiency Financial Excellence — Cost control — Disciplined capital allocation — Bottom line performance — Transparency 9
Slide 10: Our Strategy – Stay the Course
Our Strategy – Stay the Course Same Strategy Since Inception Focus on stable fee-based assets that are core to North American energy infrastructure — Market leader in each of our business segments Control costs — It’s the investors’ money, not management’s – treat it that way Leverage asset fo
Slide 11: Management Philosophy
Management Philosophy Low Cost Asset Operator — Senior management limited to $300,000 per year in base salary — No planes, sports tickets, etc. Attention to Detail — Weekly operations and financial assessment — Monthly and quarterly earnings — Quarterly strategic review Disciplined Capital All
Slide 12: Management Philosophy (Cont'd)
Management Philosophy (Cont’d) Transparency — Publish budget, compare to actual quarterly results on conference calls — Publish detailed information for analyst conference Cash is King — Get the cash! – monthly accounts receivable meetings — Return cash to investors; let investor make reinvestme
Slide 13: Where Are We Going?
Where Are We Going? Overview Business segment long-term outlook — Natural Gas Pipelines — Products Pipelines — Terminals — CO2 — Kinder Morgan Canada 13
Slide 14: Natural Gas Pipelines Segment
(KMP/EPB/KMI) Natural Gas Pipelines Segment Well-positioned connecting key natural gas resource plays with major demand centers Long-term Growth Drivers: Natural gas the logical fuel of choice — Cheap, abundant, domestic and clean With El Paso acquisition, KM has an unparalleled natural gas netw
Slide 15: Products Pipelines Segment
(KMP) Products Pipelines Segment Well-located with origin in refinery / port hubs and terminus in population centers Long-term Growth Drivers: Development of shale play liquids infrastructure Cochin — Condensate transportation, processing and storage services from Eagle Ford Pacific • Condensate p
Slide 16: Terminals Segment
(KMP) Terminals Segment Well-located in refinery / port hubs and inland waterways Long-term Growth Drivers: $1.2 billion of current approved major projects Newbuild and expansion of export coal and petcoke terminals (IMT, Houston, Whiting) Expansions and higher rates at well- located, high-con
Slide 17: CO2 Segment
(KMP) CO2 Segment Own and operate best source of CO2 for EOR Long-term Growth Drivers: Strong demand for CO2 — Expansion of CO2 source fields and pipelines • Recently executed several large, long-term CO2 S&T contracts — Higher rates and better terms on new/renewed CO2 S&T contracts KMCO2 Katz — S
Slide 18: Kinder Morgan Canada Segment
(KMP) Kinder Morgan Canada Segment Sole oil pipeline from Oilsands to West Coast / export markets Trans Long-term Growth Drivers: Mountain Expand Oilsands export capacity to West Coast and Asia 2 — TMPL is lowest-cost option for expansion to West Coast Puget — Following successful open season, maj
Slide 19: Summary
Summary Very stable assets North American footprint provides great opportunities for continued growth Vision + operational excellence + financial excellence = premier midstream energy company in North America 19
Slide 20: Kinder Morgan
KINDER/MORGAN
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