Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — 2006 Analyst Conference
17 slides from Kinder Morgan's conference presentation, Jan 24, 2006
Slide 1: CO2 – Tim Bradley, President
KINDER’ MORGAN CO, Tim Bradley — President
Slide 2: CO2 Business – View from the top
CO2 Business – View from the top Overview We operate and own significant interests in two oil fields with over 5 Billion barrels remaining in place We operate the premier CO2 Source and Transportation assets in the industry Opportunities We have the capability and resources to develop and produce ov
Slide 3: Distributable Cash Track Record
Distributable Cash Track Record CO2 Sales and Transportation - steady historical growth CO2 Flood Development Opportunities - growing faster CO2 S&T CO2 Flood Properties $600 $500 DCF- MM$ $400 $300 Plan for each Year $200 $100 $0 l n ua 01 02 03 04 la ct P 20 20 20 20 A 06 05 20 20 ________________
Slide 4: 2005 High Level Results
2005 High Level Results Overall, results in line with budget: CO2 Source and Transportation Outperformed $161 MM vs $117 MM Yates Outperformed $100.5 MM vs $52.0 MM 24,200 B/d vs 19,100 B/d SACROC* Underperformed $203.5 MM vs $295 MM 32,200 B/d vs 36,500 B/d Still significant growth ________________
Slide 5: SACROC and Yates Oil Production DCF
SACROC and Yates Oil Production DCF Oil Production 80000 Historical Summary SACROC Yates 60000 Acquisitions: SACROC June 2000 40000 MKM January 2001 Yates November 2003 20000 Significant Development Events 0 SACROC: 2002 2003 2004 2005 2006 CLPL April 2002 CL V, BE, CR I, II April 2002-Present DCF Y
Slide 6: SACROC Production Performance
SACROC Production Performance 2005 – Recap Challenge 1: Reservoir Fill-up occurred Oil Production 2002-2006 40,000 Reservoir Pressure increased faster than expected Injection rates curtailed 35,000 Actual Budget 30,000 Challenge 2: Gas Production Volumes 25,000 bopd 20,000 Forecasting tool generated
Slide 7: SACROC Margins Net of Hedging Practices
SACROC Margins Net of Hedging Practices 35 30 Net Realized Price Toti 25 Other CO2 Capex Volume 20 CO2 Capex Price $/BOE CO2 Expense volume 15 CO2 Expense Price Gas Handling Volume 10 Gas Handling Price Labor 5 0 2004 Actual 2005 Actual 2006 Budget 7
Slide 8: Future Development Planning
Future Development Planning Platform Bullseye Centerline Net Pay Thickness Platform area 3D Seismic Cross Section Our plan to develop platform will be to flood the three zones independently and sequentially starting at the bottom. This will result in a lower peak, but longer life and more stable pro
Slide 9: SACROC Oil Production Historical Forecasts
SACROC Oil Production Historical Forecasts 2003 a 2003 b 2003 c 2005 2006 60 2003 c 50 40 2003 b 30 2006 2005 20 2003 a 10 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 9
Slide 10: Yates Field - 2006 Production Forecast
Yates Field - 2006 Production Forecast Actual Forecast 30,000 25,000 Other zo nes CO2 20,000 BOEPD 15,000 Horizontal Drain Holes 10,000 5,000 Base 0 2004 2005 2006 10
Slide 11: Yates Field – CO2 Injection Results
Yates Field – CO2 Injection Results Areas of Response •CO2 Injection started March 2004 •Incremental CO2 Injection (N2 Venting) began March 2005 •Responding Well Count Continues to Increase • Oil Rate Increase Appears Sustainable and Growing at Good Pace CO2 Inj. Well Gas Inj. Well CO2 Project Oil R
Slide 12: 2006 Expansion Capital Budget - $357 Million
2006 Expansion Capital Budget - $357 Million Staff OVHD Source/Trans. SACROC Wells Gas Plants Yates CO2 Injection Yates Field Facilities Yates HDH SACROC Field Fac. SACROC CO2 Inj SACROC Gas Handling 12
Slide 13: SACROC Plus Yates Long-term Potential
SACROC Plus Yates Long-term Potential Oil Production, B/D Current Status Yates SACROC (ML Case) + Yates SACROC Producing ~32,000 BOPD 70 60 Yates Producing ~24,500 BOPD 50 40 Development Plans 2006-2015 30 20 1. SACROC Full Field, Most Likely Development 10 - 160 MMBOE Gross*, 880 MM$ 0 2003 2004 20
Slide 14: CO2 Source and Transportation Expansion Opportunities
CO2 Source and Transportation Expansion Opportunities (MMcf/d) 1500 Permian Basin CO2 Deliveries Potential SW Colorado CO2 Expansion: Other 1000 Sheep Mtn 2005 was record year, supplies pro-rated on Bravo Dome 500 occasion McElmo Dome Permian Basin Demand expected to continue to increase given exist
Slide 15: CO2 EOR and Sequestration in Alberta
CO2 EOR and Sequestration in Alberta Setting: Multiphase pipeline development based on sound commercial EOR supply/ demand. Expansions to accommodate Federal / Provincial policy and GHG Mitigation needs. Scope: EOR potential 30-50% of Permian Basin – 500+ MMCF/d Sequestration could be as much 2-3 ti
Slide 16: 2005 Achievements, 2006 Goals
2005 Achievements, 2006 Goals 2005 Delivered plan CO2 Volumes up, SACROC Oil and NGL production lower, but Yates up significantly Price helped Continued aggressive development plans SACROC project is large and complex, slowed gas processing capacity expansion pending greater confidence in long term
Slide 17: Kinder Morgan
KINDER’ MORGAN