Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Kinder Morgan 2013 Analyst Conference
18 slides from Kinder Morgan's conference presentation, Jan 30, 2013
Slide 1: Products Pipelines
Products Pipelines Tom Bannigan & Ron McClain President Products Pipelines Group
Slide 2: Products Pipelines Assets
Products Pipelines Assets . Miles of Pipe ~ 8,600 Terminals – 56 Tank Capacity Terminal ~ 39 MMbbls Pipelines ~ 15 MMbbls Transmix – 6 facilities with process capability of 32.5 MBbl/d 2012 Throughput ~ 1.9 MMBbl/d 2
Slide 3: Financial Overview
Financial Overview (a) ($ in millions) 2010 2011 2012 2013B Segment EBDA 687.5 694.4 702.6 791.1 Sustaining Capex (b) (41.0) (45.8) (47.8) (50.1) DCF 646.5 648.7 654.8 741.0 2013 budget includes year over year growth from: KMCC (crude and condensate line) Cochin E/P service Tank additions on t
Slide 4: 2012 Volumes / Markets
2012 Volumes / Markets Total refined product volumes down, 1.5% vs. 2011 Gasoline down 0.7%, diesel down 5.0%, jet fuel up 0.1% West Coast — Pacific down 1.1% • Arizona down 0.2%, Northern CA up 0.9% and Southern CA down 0.7% • Military down 14.1% — CALNEV down 8.6% • Nevada gasoline down 11.7%,
Slide 5: Expanding to Meet Customer Demand
Expanding to Meet Customer Demand Recently Completed Projects / Acquisitions Project Description In Service Cost ($MM) West Add 360MBbls of storage capacity Q4 2012 $23.5 Oregon Terminal projects Provide receipt, storage, blending, and off-load at Colton, Fresno, Phoenix Biodiesel Blending and Las V
Slide 6: Historical Demand and 2013-14 EIA Outlook
Historical Demand and 2013-14 EIA Outlook U.S. Product Consumption EIA Demand Outlook MMBbl/d 2012 2013E 2014E 10 Mogas -0.3% 0.0% 0.0% 9 8 Distillate -3.2% 0.6% 0.9% 7 Jet Fuel -1.3% 0.1% 0.4% 6 Total -1.2% 0.2% 0.3% 5 4 KM Refined Product Pipelines (MMBbls) 3 2 2012 2013B % chg 1 Pacific CALNEV 45
Slide 7: Historical FERC Tariff Index Regime
Historical FERC Tariff Index Regime Applicable to interstate volume on SFPP, CALNEV, Plantation, Cochin (U.S.), KMCC and Central Florida PPI FG + 1.3% PPI FG + 2.65% 2006 – 2010 2011 – 2015 4.59%* $1.50 8.60% $1.45 $1.40 $1.35 Growth of $1 6.88% $1.30 7.60% -1.30% $1.25 $1.20 5.17% $1.15 4.32% $1.10
Slide 8: Refined Products Segment Margin
Refined Products Segment Margin $MM $1,200 Compound Annual Growth Rate = 4.9% $1,000 $800 $600 $400 $200 $- 2009 2010 2011 2012 2013B Terminals Interstate Intrastate Compound annual growth rate 7.2% 3.9% 2.3% 8
Slide 9: Biofuels
Biofuels Ethanol blending available at all market locations Products Pipelines Biofuel Bio-diesel blending now available at Colton CA, Volumes Handled (MMBbls) Fresno CA, Las Vegas NV, and at Phoenix AZ terminals 2010 2011 2012 2013B 30.2 31.1 34.4 41.8 Acquired bio-fuels transload terminal in
Slide 10: CPUC Rate Cases (The Saga Continues)
CPUC Rate Cases (The Saga Continues) CPUC consolidated multiple dockets dating from 1997-2008 and assigned to two ALJ’s (Long and Bemesderfer) for hearings. Proposed ALJ decisions (Long April 2010) and (Bemesderfer April 2012) deny SFPP an income tax allowance and make a series of adverse determ
Slide 11: FERC Rate Case Updates
FERC Rate Case Updates SFPP global historical settlement (approved in 2011) left two rate cases to be resolved West Line rate case — Opinions 511 & 511-A: In Opinion 511 (February 17, 2011) Commission vigorously upheld its income tax allowance (ITA) policy and adopted many of SFPP’s positions on
Slide 12: Kinder Morgan Crude & Condensate
Kinder Morgan Crude & Condensate Strategic Value KMCC completed in June 2012: capacity 300 MBbl/d Expectation for volumes to grow with Eagle Ford production Producers have access to condensate market via Explorer/Cochin and Beaumont/LA Refining market through KMCC Houston Ship Channel delivery
Slide 13: Kinder Morgan Condensate Processing Facility
Kinder Morgan Condensate Processing Facility Strategic Value Engineered for Eagle Ford production Supports volume demand for KMCC Integrated connectivity to refining, petchem, pipeline and marine facilities Facility Specifications $200 Million Initial Project Processing Unit and 1.2 MBbl o
Slide 14: Cochin Line Reversal Project
Cochin Line Reversal Project Strategic Value Project to reverse product flow on western leg of system to provide 95,000 bbl/day light condensate to oil sands producers in Western Canada Supported by 85,000 bbl/day shipper commitments for initial 10 year term Receipt connection from Explorer Pi
Slide 15: Cochin East Leg Opportunities
Cochin East Leg Opportunities Strategic Value Cochin east leg can be reversed and extended with new pipe to provide light condensate gathering solution for the growing Utica & Marcellus shale plays Provides producers an alternative to regional refinery sales by opening up access to the growing W
Slide 16: Parkway Pipeline
Parkway Pipeline Strategic Value Provides Plantation Pipe Line with additional supply optionality Increase pipeline supply feeding KM Southeast Terminals Pipeline Specifications 137 mile, 16-inch originating at Valero’s St. Charles Refinery $109.6 million capital project (KM share) Project
Slide 17: Expanding to Meet Customer Demand: Approved Near-Term Projects
Expanding to Meet Customer Demand Approved Near-Term Projects Project Description In-service Cost ($MM) West Carson Terminal Provide marine access post-2013 termination of existing Los May 2013 $ 17.4 Angeles harbor terminal lease January 2014 6.1 Edwards Air Force Base Provides for direct pipeline
Slide 18: Summary Highlights
Summary Highlights Expectation for modest volume growth on existing asset base — Continue to exploit bio-fuels opportunities Full-year contribution from recently completed expansion and acquisition projects Significant growth from identified opportunities currently under development — Extensio
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