Kinder Morgan, Inc. · NYSE:KMI

Kinder Morgan — Kinder Morgan 2012 Analyst Conference

18 slides from Kinder Morgan's conference presentation, Jan 25, 2012

  1. Slide 1: Products Pipelines

    Products Pipelines Tom Bannigan President Products Pipelines Group

  2. Slide 2: Products Pipelines Assets

    Products Pipelines Assets PRODUCTS PIPELINES PRODUCTS PIPELINES TERMINALS Cochin TRANSMIX FACILITIES PIPELINES UNDER CONSTRUCTION CONDENSATE PROCESSING FACILITY Pacific (2) INDICATES NUMBER OF FACILITIES IN AREA WCT Northern 2 2 Miles of Pipe ~ 8,400 CALNEV 2 4 Terminals – 55 3 2 2 Pacific Tank Capa

  3. Slide 3: Financial Overview

    Financial Overview (a) ($ in millions) 2009 2010 2011 2012B Segment EBDA 635.1 $687.5 $694.5 $734.4 Sustaining Capex (b) (42.5) (41.0) (45.8) (46.7) DCF $592.6 $646.5 $648.7 $687.7 Compound Annual Growth Rate of DCF = 5.1% __________________________ (a) Excludes Certain Items (b) Does not include co

  4. Slide 4: 2011 Volumes / Markets

    2011 Volumes / Markets Total refined product pipeline volumes down slightly, 0.1% vs. 2010  Gasoline (including CFPL ethanol) down 1.4%, diesel up 0.4%, jet fuel up 4.1%  West Coast — Pacific down 0.7% • Arizona down 1.9%, Northern CA up 1.6% and Southern CA down 5.5% • Military up 17.2% — CALNEV

  5. Slide 5: Expanding to Meet Customer Demand

    Expanding to Meet Customer Demand Recently Completed Projects Project Description In Service Cost ($MM) West Travis AFB Pipeline and Tanks Construct three 150Mbbl tanks and 1.6 miles of pipeline two tanks in-service December 2011’, final tank to be December 2011 $47.5 completed March 2012) Carson Te

  6. Slide 6: Historical Demand and 2012-13 EIA Outlook

    Historical Demand and 2012-13 EIA Outlook U.S. Product Consumption EIA Demand Outlook MMBbl/d 2011 2012E 2013E 10 Mogas -2.7% -0.2% -0.2% 9 8 Distillate 1.4% 1.9% 2.1% 7 Jet Fuel 0.0% 0.5% 0.3% 6 Total -1.3% 0.4% 0.5% 5 4 KM Refined Product Pipelines (MMBbls) 3 2 2011 2012B % chg 1 Pacific CALNEV 46

  7. Slide 7: Historical FERC Tariff Index Regime

    Historical FERC Tariff Index Regime Applicable to interstate volumes on SFPP, CALNEV, Plantation, Cochin (U.S.), and Central Florida PPI FG + 1.3% PPI FG + 2.65%(a) 2006 – 2010 2011 – 2015 $1.50 $1.45 8.68% (b) $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 6.1

  8. Slide 8: Refined Products Revenues

    Refined Products Revenues (a) $MM $1,000 Compound Annual Growth Rate = 4.2% $800 $600 $400 $200 $- 2007 2008 2009 2010 2011 2012B Terminals Interstate Intrastate __________________________ (a) Products Segment, excludes Cochin, Cypress and KMCC 8

  9. Slide 9: Biofuels: Opportunities Amidst Challenges

    Biofuels: Opportunities Amidst Challenges  Opportunities — Federal mandate requires use of biofuels — First mid-level blends (E11 – E15) anticipated late Products Pipelines Biofuel 2012 Volumes Handled (MMBbls) — Unit trains and pipeline transportation of ethanol 2009 2010 2011 2012B improves distr

  10. Slide 10: NGL Assets – Cochin and Cypress

    NGL Assets – Cochin and Cypress Combined, represent $61.5MM income before DD&A, or 8.4% of 2012 segment plan  Cochin — 1,900-mile pipeline serving 5 propane terminals and petrochemical complex (ExxonMobil, BP, Nova) in Sarnia / Corunna, Ontario — 2011 propane volume up 32.7% and revenue up 50.0% fr

  11. Slide 11: Kinder Morgan Crude & Condensate

    Kinder Morgan Crude & Condensate Strategic Value  Pipeline to move product from Eagle Ford Shale to Houston Ship Channel  Optimize existing asset base  Expands KM liquids footprint Pipeline Specifications  Construct 62 miles of new pipe and convert 109 miles of existing gas pipelines  Capacity

  12. Slide 12: Kinder Morgan Condensate Processing Facility

    Kinder Morgan Condensate Processing Facility Strategic Value  Supports volume demand for KMCC  Will provide unparalleled connectivity to refining, petchem, pipeline and marine facilities Facility Specifications  $130 Million Project  Initial throughput commitment of 25 MBbl/d  Design provides f

  13. Slide 13: Parkway Project

    Parkway Project Strategic Value  Provides Plantation Pipe Line with additional supply optionality  Increase pipeline supply feeding KM Southeast Terminals  Provides additional pipeline capacity to meet Northeast demand needs in light of recent and pending refinery shutdowns Pipeline Specification

  14. Slide 14: Expanding to Meet Customer Demand

    Expanding to Meet Customer Demand Near-Term Projects Project Description In-service Cost ($MM) West Carson Terminal Provide marine access post-2013 termination of 2013 $ 17.4 existing Los Angeles harbor terminal lease Biodiesel Blending Provide receipt, storage and blending capabilities July 2012 16

  15. Slide 15: CPUC Rate Case Update

    CPUC Rate Case Update  Consolidation of multiple dockets dating from 1997-2008  Original ALJ proposed decision (“Long” decision) eliminated income tax allowance — Alternate proposed decision, by Commissioner Simon, restored full income tax allowance, but later rejected by full Commission in it’s r

  16. Slide 16: FERC Rate Case Updates

    FERC Rate Case Updates  Resolved historical dockets (1992-2008) — All parties settled in 2010 — FERC approved non-contested settlement in March 2011  Two remaining West Line / East Line cases — West Line Opinion 511: Commission vigorously defended its income tax allowance (ITA) policy including im

  17. Slide 17: Summary Highlights

    Summary Highlights  Modest volume growth coupled with positive, recently approved FERC Index  Terminal revenues enjoy continued growth from expansion projects, biofuel mandates and “tuck-in” acquisitions  Slate of expansion projects will move the needle — Crude/Condensate shale plays (Eagle Ford

  18. Slide 18: Kinder Morgan

    KINDER/MORGAN

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