Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Kinder Morgan 2012 Analyst Conference
32 slides from Kinder Morgan's conference presentation, Jan 25, 2012
Slide 1: Natural Gas Pipelines
Natural Gas Pipelines Tom Martin President Natural Gas Pipeline Group ** Does not include El Paso acquisition
Slide 2: Overview
Overview Market Environment Shale activity providing excellent growth opportunities Transport spreads remain flat Storage spreads are weak Processing margins continue to be very strong and roughly equivalent to 2011 performance Value Proposition Strong asset base with secure cash flows sup
Slide 3: Natural Gas Pipelines and Facilities
Natural Gas Pipelines and Facilities 3
Slide 4: Financial Overview
Financial Overview ($ in thousands) Budget '11 - '12 2006 2007 2008 2009 2010 2011 2012 Change EBDDA (a) $501,103 $548,383 $738,860 $825,388 $981,391 $1,134,424 $1,305,468 $171,044 Sustaining Capex (27,431) (29,927) (29,853) (22,676) (19,486) (30,094) (43,812) (13,718) DCF $473,672 $518,456 $709,007
Slide 5: Contracted Capacity and Term
Contracted Capacity and Term Contracted Avg. Term Capacity Remaining Interstate KM Interstate Gas Storage 10.7 Bcf 3 yr, 1 mo Transport 1.0 Bcf/d 3 yr, 6 mo TransColorado Transport 1.0 Bcf/d 4 yr, 3 mo Trailblazer Transport 0.9 Bcf/d 3 yr, 10 mo Transport Contracts Rockies Express Transport 2.0 Bcf/
Slide 6: Asset Summaries
KINDER/MORGAN Asset Summaries
Slide 7: Rockies Express Pipeline
Rockies Express Pipeline REX 1,685 miles of 36” and 42” mainline Originates in Meeker, CO and terminates in Clarington, OH Transports Rocky Mountain production to Midwest and Northeast markets JV between KMP (50%), Sempra (25%) and ConocoPhillips (25%); KMP operates Capacity — Zone 1 ~ 2.0
Slide 8: REX Opportunities and Challenges
REX Opportunities Firm backhauls (Marcellus and Utica Shale, Biogas) — East-end receipts, conversion of existing deliveries to bi-directional interconnects, and booster compression — Forward pricing favors Chicago over Clarington (backhaul within Zone 3) Park & loan service Interruptible and s
Slide 9: Kinder Morgan Interstate Gas Transmission
Kinder Morgan Interstate Gas Transmission KMIGT 5,054 miles of various diameter reticulated pipeline Markets: — LDCs and industrials — Irrigation/grain drying in NE and KS — Mid-Continent interconnected pipelines — Ethanol plants Growth — Power plants Capacity — Transport .98 Bcf/d — Storage
Slide 10: KMIGT Opportunities and Challenges
KMIGT Opportunities Pony Express Pipeline (PXP) conversion from gas to oil service Power plants — New natural gas power plants and conversion of existing coal power plants to natural gas Future production development – Niobrara Shale Additional LDC and industrial load Challenges Re-contrac
Slide 11: KMIGT Gas to Oil Conversion Project
KMIGT Gas to Oil Conversion Project Fundamentals Excess western gas export capacity (~4 Bcf/d) has narrowed the gas basis differential Robust Bakken production growth is projected and DJ/Niobrara development is anticipated Oil pipeline export capacity from the west is fully utilized and expens
Slide 12: TransColorado Gas Transmission
TransColorado Gas Transmission TransColorado 301 miles of 22” & 24” mainline Originates at Greasewood, CO and terminates at Blanco, NM Primarily serves area producers Bi-directional Flow — Capacity north ~ 0.44 Bcf/d — Capacity south • Phase 1 ~ 0.165 Bcf/d • Phase 2 ~ 0.372 Bcf/d Less tha
Slide 13: Trailblazer Pipeline
Trailblazer Pipeline Trailblazer 436 miles of pipe 3 compressor locations with 58,000 HP Max throughput = 0.878 Bcf/d Lowest total cost pipeline out of region FERC-regulated No rate case filing until 2014 Recontracting of expiring capacity at lower rates included in 2012 Budget 2% of
Slide 14: Midcontinent Express Pipeline
Midcontinent Express Pipeline MEP 507 miles of 42”, 36” and 30” pipe Originates at Enogex, Bennington and terminates at Transco Station 85 Capacity: — Zone 1: 1.8 Bcf/d — Zone 2: 1.2 Bcf/d JV between KMP (50%) and Regency (50%); KMP operates Pipeline fully-subscribed with long-term firm co
Slide 15: MEP Opportunities
MEP Opportunities Serves as shale (Barnett, Woodford, Haynesville, and Bossier shales) outlet with access to multiple markets in the Midwest, Northeast and Southeast Zone 2 expandability (up to 300 MDth/d) Shale development, Perryville pile-up could support Zone 2 expansion Excess long haul
Slide 16: Kinder Morgan Louisiana Pipeline
Kinder Morgan Louisiana Pipeline KMLP 133 miles of 42” pipe Originates at Cheniere Sabine pass LNG and interconnects with 12 interstate pipelines Two storage fields connected to pipeline Capacity: 3.2 Bcf/d Pipeline fully-subscribed with 20-year contacts (~18 years remaining) FERC-regula
Slide 17: KMLP Opportunities
KMLP Opportunities Opportunity to transport supply for LNG export — Cheniere Sabine Pass has received necessary DOE permits for their liquefaction project. Awaiting FERC approval. — Cheniere signing up Shippers, has announced approximately 1.5 Bcf/d — Discussions with Cheniere and Shippers could l
Slide 18: Fayetteville Express Pipeline
Fayetteville Express Pipeline FEP 185 miles of 42” pipe One compressor station with 72,000 HP Capacity: 2.0 Bcf/d 15 receipt points (producer specific) 4 delivery meters JV between KMP (50%) and Energy Transfer (50%); Energy Transfer operates 1.85 Bcf/d capacity under long-term contrac
Slide 19: FEP Opportunities
FEP Opportunities All major construction completed; final clean-up is continuing as weather allows — 2.0 Bcf/d of initial pipeline capacity — Project costs projected at $0.97 billion, substantially less than original estimate of $1.26 billion 1.85 Bcf/d capacity sold under long-term firm contrac
Slide 20: Natural Gas Pipeline Company of America
KMI (20% Ownership) Natural Gas Pipeline Company of America NGPL Pipeline miles: 9,200 KM-operated Market area deliverability: 5.0 Bcf/d Storage working gas capacity: 278 Bcf (8 fields) Direct or one-pipe-away access to most major U.S. and Canadian supply basins west of the Mississippi, in
Slide 21: Texas Intrastate Pipelines
Texas Intrastate Pipelines Texas Intrastates 6,000 miles of pipeline Over 5 Bcf/d capacity (5.5 Bcf/d peak day) 144 Bcf of storage Access to 685 MMcf/d processing capacity 180 MMcf/d CO2 treating capacity Combination of fee-for- service, and purchase / sale activity Texas Railroad Comm
Slide 22: Texas Intrastate Pipelines Opportunities
Texas Intrastate Pipelines Opportunities Large asset footprint provides real and continued opportunities for expansion capital investment New service to end user plants being restarted, expanded or built grass roots along the Texas Gulf Coast in response to favorable feedstock and fuel outlook —
Slide 23: Eagle Ford Joint Ventures
Eagle Ford Joint Ventures Eagle Ford Gathering LLC 50/50 JV with Copano in STX Capacity of 705,000 MMBtu/d based on contracted processing space 111 miles of 30”/24” supply lateral placed into service 3Q 2011… currently flowing 240,000 MMBtu/d Approximately 90% of the JV’s long- term capacity
Slide 24: Eagle Ford Joint Ventures Opportunities
Eagle Ford Joint Ventures Opportunities Additional EFG gathering and processing expansions as producers shift rigs into what is one of the most economic basins in North America Higher volumes on EagleHawk as BHP continues to increase rig count in 2012 Challenges Handle liquids fallout from hig
Slide 25: KinderHawk Field Services
KinderHawk Field Services KHFS 100% KM in northwest Louisiana Gathering and treating services for Haynesville / Bossier Shale Long-term gathering / treating contracts 452 miles of pipe installed to-date Over 2 Bcf/d of capacity Well-positioned to access over 20 Tcf of gas 2,600 GPM of
Slide 26: KHFS Opportunities and Challenges
KHFS Opportunities Expansions due to infill drilling, additional CDPs and planned extensions of the system Higher volumes as BHP is expected to increase rig count in 2012 Bossier Shale development Some 3rd party opportunities remain as lease capture continues Challenges Maintaining high am
Slide 27: Kinder Morgan Upstream (KMULLC)
Kinder Morgan Upstream (KMULLC) KMULLC Own and operate processing plants in Casper and Douglas, Wyoming and a carbon dioxide and sulfur treating facility at West Frenchie Draw, Wyoming — Combined processing capacity of 185 MMcf/d — West Frenchie Draw Plant is fully subscribed for 50 MMcf/d of natu
Slide 28: KMULLC Opportunities and Challenges
KMULLC Opportunities Increased processing volumes at the Douglas Plant — Increase in liquids volumes from Chesapeake and DCP over the next two years Increased volumes at Red Cedar from development of acreage on east end of Southern Ute Indian Reservation — Approximately 100 MMcf/d is expected to
Slide 29: Treating Services
Treating Services Treating Services Largest fleet of contract operated amine plants in the U.S. that remove CO2 and H2S from natural gas — 140 leased amine plants in service — Refurbishment and inventory yards located in Odessa and Victoria, TX Manufacture and lease skid mounted mechanical refri
Slide 30: Treating Services Opportunities
Treating Services Opportunities Find new applications on KM’s expanding asset footprint for KM amine, dew point and MRU equipment Increase utilization of SouthTex manufacturing capabilities for both 3rd parties and Kinder Morgan internal needs Challenges Keep amine lease fleet deployed (especi
Slide 31: Growth Opportunities in 2012, 2013 and Beyond
Growth Opportunities in 2012, 2013 and Beyond 2012 Full-year effect of new projects and acquisitions — FEP, KinderHawk, Eagle Hawk, SouthTex New growth continues with expansions and increases in fee based services — Eagle Ford — West Clear Lake Storage 2013 and beyond - long term / future growth
Slide 32: Kinder Morgan
KINDER/MORGAN
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