Kinder Morgan, Inc. · NYSE:KMI

Kinder Morgan — RBC Energy Infrastructure "Movers & Shakers" Conference 2006

22 slides from Kinder Morgan's conference presentation, Mar 8, 2006

  1. Slide 1: RBC Energy Infrastructure "Movers & Shakers" Conference

    RBC Energy Infrastructure “Movers & Shakers” Conference March 8, 2006

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements This presentation contains forward looking statements, including these, within the meaning of Section 27A of the Securities Act of 1933, as amended and Section Section 21E of the Exchange Act of 1934, as amended. Forward looking statements are not guarantees guarantees of

  3. Slide 3: Overview

    Overview n Who is Kinder Morgan? n Infrastructure Opportunities in North America n Kinder Morgan Response 3

  4. Slide 4: Who is Kinder Morgan?

    Who is Kinder Morgan? n Largest independent transporter of petroleum products in the U.S. ¾ transport more than 2 million barrels per day (Bbl/d) n 2nd largest transporter of crude oil and petroleum products in Canada ¾ transport more than 950,000 Bbl/d of crude oil and petroleum products products n

  5. Slide 5: Kinder Morgan Assets

    Kinder Morgan Assets NGPL (KMI) NGPL GAS STORAGE (KMI) Trans RETAIL GAS DISTRIBUTION (KMI) Mountain Corridor GAS­FIRED POWER PLANTS (KMI) PRODUCTS PIPELINES (KMP) 2 PRODUCTS PIPELINES TERMINALS (KMP) TRANSMIX FACILITIES (KMP) NATURAL GAS 2 PIPELINES (KMI­KMP) Express Cochin NATURAL GAS Pacific STORA

  6. Slide 6: Kinder Morgan: Three Securities

    Kinder Morgan: Three Securities Kinder Morgan Energy Partners Kinder Morgan, Inc. Market Equity (a) $10.3 Incentive Market Equity (b) $12.9 Debt (a) 5.2 Distribution Debt (b) 7.1 Enterprise Value $15.5 B Enterprise Value $20.0 B 2006E EBITDA $1,802 mm 2006E EBITDA $1,739 mm 2006E Dist. CF $1,290 mm

  7. Slide 7: The Kinder Morgan Strategy

    The Kinder Morgan Strategy Same Strategy Since Inception n Focus on stable, fee­ fee­based based assets which are core to the energy infrastructure of growing markets n Increase utilization of assets while controlling costs ¾ Classic fixed cost businesses with little variable costs ¾ Improve product

  8. Slide 8: Consistent Track Record

    Consistent Track Record Total Distributions (GP + LP) ($mm) KMP Distribution Per Unit (b) $1,400 $1,281 $4.00 GP (a) $1,162 $3.32­$3.36 $1,200 $3.20 LP $978 $3.00 = 18 % $2.96 $2.72 $1,000 4% GR =5 $827 CA $2.20 $2.50 $800 GR CA $701 $2.00 $1.90 $600 $548 $1.45 $1.13 $1.30 $400 $333 $1.00 $0.63 $200

  9. Slide 9: Significant Historical Returns, thru 12-31-05

    Significant Historical Returns, thru 12­31­05 KMP: 32% annual return Dollars (a,c) $1,400 $1,200 $1,253 KMP KMI: 39% annual return $1,000 $800 Dollars (a,b) $1,000 $600 $900 $400 $459 $800 $851 MLP Index $700 $200 $194 $600 KMI S&P 500 $0 $500 Dec­ Dec­ Dec­ Dec­ Dec­ Dec­ Dec­ Dec­ Dec­ Dec­ $400 9

  10. Slide 10: North American Energy Trends

    North American Energy Trends n Expanding Canadian Oilsands Production n Growing Rockies Natural Gas Production n Increased Supply of LNG on Gulf Coast n Increased Use of Heavy Crude n Growing Coal Imports 10

  11. Slide 11: KM Response

    KM Response Trend KM Opportunity n Expanding Canadian Trans Mountain, Corridor, Oilsands Production Edmonton terminal n Growing Rockies Rockies Express, Entrega Natural Gas Production n Increased Supply of Kinder Morgan Louisiana LNG on Gulf Coast Pipeline 11

  12. Slide 12: Canadian Oilsands: Supply

    Canadian Oilsands: Supply Canadian Crude Production by Type (a) World Oil & Bitumen Reserves – Top 10 (b) (MBbl/d) (reserves (billions of barrels) 4,000 Oilsands 350 345 315 Pentanes/Condensate 300 3,500 5 270 Conventional Heavy GR ‘05­‘1 Bitumen % CA 250 3,000 Conventional Light/Med nd s ~10 Oil Oi

  13. Slide 13: Canadian Oilsands: PADDs II and IV Have the Most Access to Canada

    Canadian Oilsands: PADDs II and IV Have the Most Access to Canada Major Canadian Oilsands Takeaway into the U.S. Bb R ) 0 M IDO l/d AIN Fort McMurray Trunkline NT ( 2 2 RR U MO l/d) (MMBbl/d) Capacity CO NS MBb Cold Lake A in to U.S. TR ( 225 Edmonton Hardisty R­ PADD II 2.0 /d ) BOWR IV E CEN EX RA

  14. Slide 14: Canadian Oilsands: U.S. a Significant Importer of Crude

    Canadian Oilsands: U.S. a Significant Importer of Crude U.S. Crude Refinery Inputs by PADD – 2004 (a) Alaskan North Slope Production Declining (b) 2,000 Canadian ANS Crude Oil Production Total Imports as (MBbl/d) Refinery % % of Total 1,500 (MBbl/d) Inputs Imports Imports 1,000 PADD I (E. Coast) 1,5

  15. Slide 15: Trans Mountain Expansion

    Trans Mountain Expansion n TMX1 – C$595 million ⇒ additional 75 MBbl/d ¾ Pump Station Expansion, C$230 million, 35 MBbl/d, in­ in­svc svc by April 2007 ¾ Anchor Loop, C$365 million, 40 1,100 MBbl/d MBbl/d, in­ in­svc svc at end of 2008 n TMX2 – Loop between Valemont & Kamloops and back to Edmonton,

  16. Slide 16: Rocky Mountain Natural Gas: Basis Spreads Support Need for New Infrastructure

    Rocky Mountain Natural Gas: Basis Spreads Support Need for New Infrastructure Basis Spread (a) ($1.04) ($1.42) $1.16 $1.88 ($0.42) ($0.64) $0.46 $0.54 ($0.43) ($0.72) __________________________ (a) Basis differential versus Henry Hub. Sources: Historical Prices – GasDat, Forward Prices – Sempra Oct

  17. Slide 17: Rocky Mountain Natural Gas: Expected Production Growth Supports Need for New Infrastructure

    Rocky Mountain Natural Gas: Expected Production Growth Supports Need for New Infrastructure Rocky Mountain natural gas production is growing, but takeaway capacity is limited Rockies Exports 0.4 Bcf/d Rockies Production Growth (a) 0.7 Bcf/d Production (Bcf/d) Wyoming 2004 5.8 2007 7.0 2009 7.6 Utah

  18. Slide 18: Rockies Express

    D D Jj a 1) a Montana, North Dakota Sry Entrega RockiespExpresseipe lines roject: Canada a | ent s fii ‘s r Zone}! Zone)2) csc ae | A [ (Certificaye 11D, f CIG J Souther Star eo. National Fuel] taano | Burlington tek \ N a ge Fenn | yaar Echo Springs ro Wisconsin} ransee Lost Creek Whee = { X Michig

  19. Slide 19: LNG: Increased Supply on Gulf Coast

    LNG: Increased Supply on Gulf Coast Gulf Coast LNG Projects Under Construction ") ! ") ") Henry ") Katy ") ") ") ­ & ~8­11 Bcf/d of terminal ­") & *# ! ! ") ") kj capacity under ExxonMobil – Golden Pass Sempra – Cameron LNG 1­2") Bcf/d, projected in­svc *# 2008­09 ! 1.5­2.65! Bcf/d, est in­svc 2008­

  20. Slide 20: Kinder Morgan Louisiana Pipeline LLC

    Kinder Morgan Louisiana Pipeline LLC Provides key link Texas Louisiana CGT Delivery Point between Sabine 340 Pass Transco Delivery Point ( ( TETCO Delivery Point LNG Terminal to ( ANR Delivery Point ( ( ( ( interstate pipeline grid Texas Gas Delivery Point FGT Delivery Point Cypress Delivery Point (

  21. Slide 21: Identified Future Growth Opportunities

    Identified Future Growth Opportunities Nearly $8 billion in identified growth opportunities over next 5 years Estimated Total Project Expected Entity Project Cost ($B) Completion KMP Louisiana Pipeline (LNG) $0.5 2009 KMP Rockies Express 2.9 (a) 2007­2009 KMP CO2 1.1 (b) 2006­2010 KMP East Line expa

  22. Slide 22: Kinder Morgan

    KINDER’ MORGAN

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