Kinder Morgan, Inc. · NYSE:KMI

Kinder Morgan — Kinder Morgan Energy Partners — 2007 KMP Analyst Conference

12 slides from Kinder Morgan's conference presentation, Jan 23, 2007

  1. Slide 1: Financial Review

    ENERGY PARTNERS, L.P. Financial Review Kim Dang CFO, VP Investor Relations

  2. Slide 2: Agenda

    ENERGY PARTNERS, L.P. Agenda 2006 Year in Review 2007 Budget — Income — Distributable Cash Flow — Sustaining Capital — Expansion Capital Financing Plans Balance Sheet Ratios Summary 2

  3. Slide 3: 2006 Actual to Budget Comparison – Income

    ENERGY PARTNERS, L.P. 2006 Actual to Budget Comparison – Income (thousands except per unit) 2006 2006 Change % Actual (a) Budget 06A-06B Change Segment Earnings before DD&A Products Pipelines $501,899 $581,687 ($79,788) (14%) Natural Gas Pipelines 554,939 501,243 53,696 11% CO2 489,988 547,388 (57,4

  4. Slide 4: 2006 Actual to Budget Comparison – DCF

    ENERGY PARTNERS, L.P. 2006 Actual to Budget Comparison – DCF (a) (thousands except per unit) 2006 2006 Change % Actual (b) Budget 06A-06B Change Distributable Cash Flow Net Income $958,576 $1,066,504 ($107,928) DD&A 419,386 383,079 36,307 Sustaining Capex (125,505) (170,003) 44,498 Total Distributab

  5. Slide 5: 2007 Income Budget

    ENERGY PARTNERS, L.P. 2007 Income Budget (thousands except per unit) Change % 2007E 2006 (a) 06 – 07E Change Segment Earnings before DD&A Products Pipelines $571,376 $501,899 $69,477 14% Natural Gas Pipelines 547,715 554,939 (7,224) (1%) CO2 606,218 489,988 116,230 24% Terminals 442,565 396,858 45,7

  6. Slide 6: 2007 Distributable Cash Flow Budget

    ENERGY PARTNERS, L.P. 2007 Distributable Cash Flow Budget (thousands except per unit) Change % 2007E 2006 (a) 06 – 07E Change Distributable Cash Flow Net Income $1,014,023 $958,576 $55,447 6% DD&A 573,926 419,386 154,540 37% Sustaining Capex (156,478) (125,505) (30,973) (25%) Total Distributable Cas

  7. Slide 7: 2007 Sustaining Capital Budget

    ENERGY PARTNERS, L.P. 2007 Sustaining Capital Budget (millions) 2007E 2006 (a) $ Change Sustaining Capital Products Pipelines $51 $39 ($12) Natural Gas Pipelines 32 33 1 CO2 13 6 (7) Terminals 41 42 1 Corporate 7 6 (1) Subtotal 144 126 (18) Trans Mountain 12 0 (12) Total Sustaining Capital $156 $126

  8. Slide 8: 2007 Expansion Capital Budget

    ENERGY PARTNERS, L.P. 2007 Expansion Capital Budget (millions) 2007E Expansion Capital Products Pipelines $223 Natural Gas Pipelines 368 CO2 445 Terminals 403 Trans Mountain 184 Total Expansion Capital $1,623 8

  9. Slide 9: Financing Plans

    ENERGY PARTNERS, L.P. Financing Plans (millions) 2007E 2006 Capital Expenditures Acquisitions (a) ~$770 $125 Expansion 1,623 761 Total Capital $2,393 $886 Less: Major Projects Not Yet Complete (b) (600) Net Capital $1,793 $886 Equity Secondary Offerings 650 250 KMR 220 190 Asset Sale Proceeds/Other

  10. Slide 10: Balance Sheet Ratios

    ENERGY PARTNERS, L.P. Balance Sheet Ratios 2007E 2006 2005 2004 2003 2002 2001 KMP Debt to Capital (a) 57% 54% 52% 52% 54% 51% 46% Debt/EBITDA 3.6x 3.3x 3.2x 3.5x 3.8x 3.7x 3.5x EBITDA/Interest Exp. 5.1x 5.2x 6.3x 6.9x 6.2x 5.5x 4.6x __________________________ (a) Excludes accumulated other comprehe

  11. Slide 11: Summary

    ENERGY PARTNERS, L.P. Summary 6% growth in budgeted declared distribution to $3.44/unit, before unidentified acquisitions — 2006-equivalent dcf per unit w/no GP reduction = 8% growth $5 million in excess coverage Finance expansion budget and new acquisitions ~ 50/50 equity/debt Distributions total $

  12. Slide 12: ENERGY PARTNERS, L.P.

    KINDER’ “MORGAN ENERGY PARTNERS, L.P.

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