Slide 1: Run By Shareholders, For Shareholders
Run By Shareholders, For Shareholders December 2, 2014
Slide 2: Forward-Looking Statements / Non-GAAP Financial Measures
Forward-Looking Statements / Non-GAAP Financial Measures This presentation contains forward-looking statements. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts. In particular, statements, express or implied, concerning fut
Slide 3: KMI Completes Acquisition of KMP, KMR & EPB
KMI Completes Acquisition of KMP, KMR & EPB Transaction closed 11/26/2014 Value Enhancing Combination Paves Way for Significant Growth 2015 dividend expected to be $2.00 (16% growth over Pro Forma Consolidated KMI 2014 budget) 2014B Segment Earnings before DD&A = $8.0 billion(a) 10% annual growt
Slide 4: Simplified Structure: All Assets Now In One Equity
Kinder Morgan Simplified Structure: All Assets Now In One Equity Old Structure(a) New, Simplified Public Structure(b) Public Management/ Original S/H Sponsor Float 302MM (_) 665 MM (29%) Kinder Morgan, Inc. (64%) 69 MM (7%) Management / Public Cash dividends to Original S/H Float Market Equity $38.3
Slide 5: Unparalleled Asset Footprint
Unparalleled Asset Footprint Largest Energy Infrastructure Company in North America 3rd largest energy company in North America with an enterprise value of ~$130 billion Nearly $18 billion of currently identified organic growth projects Largest natural gas network in North America — Own an int
Slide 6: Strategy Remains the Same
Strategy Remains the Same Same Strategy Since Inception Focus on stable fee-based assets that are core to North American energy infrastructure — Market leader in each of our business segments Control costs – It’s the investors’ money, not management’s – treat it that way — Dividend policy to rem
Slide 7: 18 Years of Growth
18 Years of Growth Strategy Has Led to Consistent, Growing Results KMP Total Distributions (GP + LP) ($MM) KMP Annual LP Distribution per Unit(c) $5.58 (a) $5,000 $6.00 $5.33 (a) $4,499 $4,500 GP LP $4.98 $4,017 $5.00 $4.61 $4,000 $4.40 $4.20 $3,500 $3,230 $4.02 $4.00 $3.48 $3,000 $2,737 $3.13$3.26
Slide 8: Historical KMP Capital Investment
Historical KMP Capital Investment ~$46.5B Invested Since Inception(a,b) ($ in billions) Total Invested by Type(a,b) Total Invested by Year $25 $11 $20 Expansion $10.0 $10 Acquisition $15 $21.9 $24.6 $9 $10 $8 $5 $7 $6.6 (b) $- Expansions Acquisitions $6 $5 $4.9 Total Invested by Segment(a,b) $4 $3.3
Slide 9: Historical KMP Returns on Invested Capital
Historical KMP Returns on Invested Capital 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Segment ROI(a): Natural Gas Pipelines 13.3% 15.5% 12.9% 13.5% 14.0% 15.5% 16.7% 17.5% 16.9% 14.0% 11.9% 11.9% 11.9% 11.6%(b) Products Pipelines 11.9 11.8 12.8 12.9 12.4 11.6 11.8 13.2 12.
Slide 10: Financial Rigor: Promises Made, Promises Kept
Financial Rigor Promises Made, Promises Kept Promises Made Promises Kept KMI Budgeted KMI Actual Dividend: Dividend: 2011: $1.16(a) 2011: $1.20(a) KMI has exceeded 2012: $1.35 2012: $1.40 its dividend target 2013: $1.57 2013: $1.60 in each of past 3 yrs. KMP Budgeted KMP Actual LP Distribution: LP D
Slide 11: Returns to Investors
Returns to Investors(a) Tremendous Total Returns Spanning 18 Years KMI: 14% CATR Since Inception(b) KMP: 24% CATR Since ‘96(e) $175 $5,000 Dollars Dollars ━ KMP = $4,835 $140 $4,000 $105 $3,000 ━ S&P 500 = $170 ━ KMI = $164 ━ RMZ = $159 $70 ━ UTY = $158 $2,000 ━ AMZ(d) = $1,546 $35 $1,000 ⇐ IPO 2/10
Slide 12: KMI's Diversified Cash Flow
KMI’s Diversified Cash Flow Supported by Substantially Fee-based Assets Pro Forma Consolidated KMI Natural Gas Pipelines 2014B Segment Earnings before DD&A 70% interstate pipelines = $8.0 billion(a) 21% gathering, processing & treating 9% intrastate pipelines & storage Products Pipelines CO2 S
Slide 13: 5-year Project Backlog
5-year Project Backlog(a) Nearly $18 Billion of Currently Identified Organic Growth Projects Tremendous footprint provides $17.9B of currently identified growth projects over next 5 years 5-year Growth Capex Backlog ($B) 4Q 2014 2015 2016 2017+ Total Natural Gas Pipelines $0.4 $0.6 $0.4 $3.3 $4.7 Pr
Slide 14: Natural Gas Megatrend
Natural Gas Megatrend Strong Natural Gas Footprint & Market Opportunity Set… U.S. Natural Gas Projected Supply & Demand(a) (Bcf/d) Demand 2014 2019 2024 KM Natural Gas Asset Footprint LNG exports -0.3 4.7 9.8 Mexican net exports 2.1 3.8 4.6 Power 21.3 23.9 28.5 Industrial 21.0 23.9 24.8 Other 29.6 2
Slide 15: Natural Gas Megatrend
Natural Gas Megatrend … Generating Real-time, Long-term Benefits $641B of investment in midstream energy infrastructure needed through 2035, implying $29B per year annual spend(a) compared to $18B annual spend by MLPs(b) over past five years Kinder Morgan’s unparalleled natural gas footprint is we
Slide 16: Business Risks
Business Risks Regulatory — Products Pipeline FERC rate cases — Natural Gas FERC rate cases — Legislative and regulatory changes Crude oil production volumes Commodity prices — CO2 oil production • 2014 budget assumes $96.15/Bbl realized price on unhedged barrels • 2014 commodity price sensiti
Slide 17: Summary: Attractive Value Proposition
Summary Attractive Value Proposition Unparalleled asset footprint with best-in-class cash flow visibility and dividend growth Diversified midstream energy platform provides stable, fee-based cash flow Industry leader in all business segments Highly visible, attractive growth project backlog
Slide 18: Appendix
KINDERMORGAN Appendix
Slide 19: KMI Compares Favorably to its Midstream Energy Peers
KMI Compares Favorably to its Midstream Energy Peers and S&P 500 High-dividend Companies Market LQA Dividend Cap Dividend Growth Company Industry ($MM) Yield Rates (a) 2015-2020 Kinder Morgan, Inc. Oil & Gas Pipelines $91,518 4.7% 10.0% growth rate Large Cap U.S. Midstream Williams Companies, Inc. O
Slide 20: Cross-guarantees Overview
Cross-guarantees Overview KMI consolidated its subsidiaries under a single C-corp as follows: — Acquired public shares of KMR and public units of KMP and EPB — Executed cross guarantees among KMI, KMP, EPB and substantially all wholly-owned operating subsidiaries (including our wholly owned subsid
Slide 21: Additional Transaction Information
Additional Transaction Information Online Resources KMI acquisition of KMP, KMR and EPB closed on November 26, 2014 Certain transaction-related resources are available at kmitxn.kindermorgan.com, including: — Transaction overview from Rich Kinder (audio) — Summary transaction information — KM co
Slide 22: Energy Toll Road
Energy Toll Road Diversified, Fee-based Business Model Natural Gas Products Kinder Morgan Terminals CO2 Pipelines Pipelines Canada – Interstate & LNG: take or pay – Take or pay, minimum – S&T: primarily minimum – Intrastate: ~75% take or pay(a) – Essentially no Volume Security – Volume based volum
Slide 23: Natural Gas Pipelines
Natural Gas Pipelines Segment Outlook Well-positioned connecting key natural gas resource plays with major demand centers Project Backlog: $4.7 billion of identified growth projects over next seven years(a), including: — LNG liquefaction (FTA at Elba Island) — Pipe projects supporting LNG liquefac
Slide 24: Products Pipelines
Products Pipelines Segment Outlook Opportunities for growth from increased liquids production Project Backlog: $1.1 billion of identified growth projects over next two years(a), including: — UTOPIA — Eagle Ford condensate processing — KMCC extensions — KMCC-Double Eagle interconnect Long-term Grow
Slide 25: Terminals
Terminals Segment Outlook Well-located in refinery / port hubs and inland waterways Project Backlog: $2.5 billion of identified growth projects over next five years(a), including: — Liquids • BOSTCO Phase 3 • Alberta crude by rail projects • Chemical terminal development • SCT Jones Act tanker bui
Slide 26: CO2 Segment Outlook
CO2 Segment Outlook Own and operate best source of CO2 for EOR(a) Project Backlog: Identified growth projects totaling $2.1 billion and $2.1 billion in S&T and EOR, respectively, over next five years(b), including: — S&T • Southwest Colorado CO2 production • St. Johns build-out • Cortez and Lobos
Slide 27: Kinder Morgan Canada
Kinder Morgan Canada Segment Outlook Sole oil pipeline from Oilsands to West Coast / export markets Project Backlog: $5.4 billion expansion of Trans Mountain Pipeline Long-term Growth Drivers: Expand Oilsands export capacity to West Coast and Asia TMEP $5.4 Billion Expansion — Following successf
Slide 28: KINDERJMORGAN
KINDERJMORGAN