Kinder Morgan, Inc. · NYSE:KMI

Kinder Morgan — Kinder Morgan Energy Partners — UBS 2010 MLP Conference

20 slides from Kinder Morgan's conference presentation, Sep 1, 2010

1. Slide 1: UBS 2010 MLP Conference

   ENERGY PARTNERS, L.P. UBS 2010 MLP Conference David Kinder VP, Corporate Development and Treasurer September 1-2, 2010

2. Slide 2: Forward Looking Statements

   ENERGY PARTNERS, L.P. Forward Looking Statements 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 future acti

3. Slide 3: Use Of Non-GAAP Financial Measures

   ENERGY PARTNERS, L.P. Use Of Non-GAAP Financial Measures The non-generally accepted accounting principles ("non-GAAP") financial measures of distributable cash flow before certain items (both in the aggregate and per unit), segment earnings before depreciation, depletion, amortization and amortizati

4. Slide 4: Capital Structure

   ENERGY PARTNERS, L.P. Capital Structure Kinder Morgan Energy Partners, L.P. Market Equity (a) $20.2B Debt (b) 11.7B Enterprise Value $31.9B 2010E EBITDA (c) $3.2B (e) 2010E DCF (d) $2.4B (e) Additional Cash Incentive Shares Distribution Distribution KMR (NYSE) KMP (NYSE) (LLC) (Partnership) 90 milli

5. Slide 5: KMR 101

   ENERGY PARTNERS, L.P. KMR 101 (a) KMR is KMP  KMR shares are pari passu with KMP units KMR Discount to KMP 10%  KMR dividend equal to KMP cash distribution, but paid in additional additional ~7% avg discount shares; effectively a dividend reinvestment program (b) 5% since 2001 IPO  Share dividend

6. Slide 6: The Kinder Morgan Strategy

   ENERGY PARTNERS, L.P. The Kinder Morgan Strategy Same Strategy Since Inception  Focus on stable, fee-based assets which are core to the energy infrastructure of growing markets  Increase utilization of assets while controlling costs  Classic fixed cost businesses with little variable costs  Impr

7. Slide 7: Unmatched Footprint

   ENERGY PARTNERS, L.P. Unmatched Jet Trans Fuel Mountain Pipeline Footprint 2 Cochin  Largest independent transporter of petroleum products in the U.S. Pacific Express  Transport ~1.9 million barrels per day (Bbl/d)  2nd largest transporter of natural gas in U.S. (a) 2 Trailblazer 2  Own an inter

8. Slide 8: Well-diversified Cash Flow

   ENERGY PARTNERS, L.P. Well-diversified Cash Flow KMP 2010E CO2 Segment DCF Natural Gas Pipelines  28% CO2 transport and sales Profile (b)  59% Interstate (c)  72% oil production related  41% Texas Intrastate  Production hedged (a): 2010=79% ($58/Bbl) 2011=64% ($64) 30% 28% 2012=35% ($83) 2013=2

9. Slide 9: Stable Asset Base

   ENERGY PARTNERS, L.P. Stable Asset Base Natural Gas Products Kinder Morgan CO2 Terminals Pipelines Pipelines Canada – Interstate: virtually all – Liquids: take or pay take or pay – S&T: minimum – Bulk: minimum  Volume Security – volume based – No volume risk – Intrastate: ~78% volume guarantee volu

10. Slide 10: Delivering 13 Years Of Consistent Growth

    ENERGY PARTNERS, L.P. Delivering 13 Years Of Consistent Growth Total Distributions (GP + LP) ($MM) (a) Annual LP Distribution Per Unit (a,d) $2,500 $2,416 $4.40 GP (b) $4.50 $4.20 $4.02 15% $2,132 $4.00 = 43% $3.48 $2,000 LP = $1,854 $3.50 A GR $3.13 $3.26 R 0 C $2.63$2.87 CAG $1,469 $3.00 6- 201 19

11. Slide 11: Significant Historical Returns

    ENERGY PARTNERS, L.P. Significant Historical Returns (a) KMP: 27% CAGR Since ‘96 (b) KMR: 14% CAGR Since ‘01 (c) Dollars Dollars $2,750 $385 AMZ (d) KMP = $2,470 = $355 $2,500 $350 KMR $2,250 $315 = $325 $2,000 $280 $1,750 $245 $1,500 $210 $1,250 $175 $1,000 $140 AMZ (d) = $767 $750 $105 $100 $500 $

12. Slide 12: Promises Made, Promises Kept

    ENERGY PARTNERS, L.P. Promises Made, Promises Kept Promises Made Promises Kept Budgeted Actual Distribution per unit: Distribution per unit: 2000: $1.60 2000: $1.71 2001: $1.95 2001: $2.15 2002: $2.40 2002: $2.435 2003: $2.63 2003: $2.63 2004: $2.84 2004: $2.87 2005: $3.13 2005: $3.13 2006: $3.28 20

13. Slide 13: Sources of Future Growth

    ENERGY PARTNERS, L.P. Sources of Future Growth Growth Drivers KM Opportunity – Leverage Footprint – Cheap, abundant, domestic energy source – Leverage pipeline connectivity and expertise – Shifting supply from multiple basins into pipeline/storage expansions and – U.S. demand for natural gas expecte

14. Slide 14: Kinder Morgan is Connected to Major New Natural Gas Basins

    ENERGY PARTNERS, L.P. Kinder Morgan is Connected to Major New Natural Gas Basins Through KM’s existing natural gas footprint and current projects we are connected to virtually every major natural gas basin in the U.S.:  Rocky Mountains (REX)  Barnett shale (MEP)  Fayetteville shale (FEP)  Haynes

15. Slide 15: ~$20 Billion in Capital Invested 1998-2009

    ENERGY PARTNERS, L.P. ~$20 Billion in Capital Invested 1998-2009 (a,b) (billions) Total Invested by Type (a,b) Total Invested by Year (a) $12 $2.4 $9 $3.5 $3.3 JV Contributions $6 Expansion $3.0 $2.9 $8.7 $8.8 Acquisition $2.7 $3 $2.6 $2.5 $0 Expansions Acquisitions $2.0 $1.9 $1.6 Total Invested by

16. Slide 16: Returns on Capital

    ENERGY PARTNERS, L.P. Returns on Capital 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Segment ROI (a): Products Pipelines 11.9% 11.8% 12.8% 12.9% 12.4% 11.6% 11.8% 13.2% 12.5% 13.4% Natural Gas Pipelines 13.3 15.5 12.9 13.5 14.0 15.5 16.7 17.5 16.9 14.0 CO2 27.5 24.6 22.0 21.9 23.8 25.7 23.1 21

17. Slide 17: Balance Sheet Remains Solid

    ENERGY PARTNERS, L.P. Balance Sheet Remains Solid (a) (millions) Credit Summary Forecast 2Q 2010 Yr-end 2010 Credit Metrics Debt / EBITDA (b,c) b,c) 3.9x (d) 3.8x (d) EBITDA / Interest (c) 6.4x 6.2x L-T Debt Rating Baa2/BBB/BBB (e) Revolver Liquidity Maturities of Long-term Debt (f) Total Bank Credi

18. Slide 18: Risks

    ENERGY PARTNERS, L.P. Risks  Regulatory  Pacific Products Pipeline FERC/CPUC cases  Periodic rate reviews  Unexpected policy changes  Crude Oil Production Volumes  Crude Oil Prices  Budget assumes $84/Bbl realized price on unhedged barrels  2010 Sensitivity is ~$5.5 million DCF per $1/Bbl ch

19. Slide 19: Attractive Value Proposition

    ENERGY PARTNERS, L.P. Attractive Value Proposition  Unparalleled asset footprint  Established track record  Industry leader in all business segments  Experienced management team  Supportive general partner  Transparency to investors  Attractive returns driven by combination of yield plus grow

20. Slide 20: Kinder Morgan Energy Partners, L.P.

    KINDER/MORGAN ENERGY PARTNERS, L.P.

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