Kinder Morgan, Inc. · NYSE:KMI

Kinder Morgan — Kinder Morgan Energy Partners — 2007 KMP Analyst Conference

25 slides from Kinder Morgan's conference presentation, Jan 23, 2007

  1. Slide 1: Products Pipelines

    ENERGY PARTNERS, L.P. Products Pipelines Tom Bannigan President Products Pipeline Group

  2. Slide 2: Products Pipelines Assets

    ENERGY PARTNERS, L.P. Products Pipelines Assets West NGL Southeast Terminal Transmix 1

  3. Slide 3: Fundamental Demand Drivers in Place

    ENERGY PARTNERS, L.P. Fundamental Demand Drivers in Place Demographics of Markets Served  Population Growth  Urban Congestion  Suburban Spread Price/Demand Modest Inroads of Hybrids/Alternative Fuel Vehicles  % of Hybrids on Road  U.S. Fleet Turnover Biofuels Present Additional Opportunities 

  4. Slide 4: Price Projections

    ENERGY PARTNERS, L.P. Price Projections 3

  5. Slide 5: Price/Demand

    ENERGY PARTNERS, L.P. Price/Demand 10,000 $2.50 9,000 8,000 $2.00 7,000 US Motor Gasoline Finished Supplied (000's BPD) 6,000 $1.50 5,000 US Annual Retail Sales 4,000 $1.00 Average Price (cents per gallon) 3,000 2,000 $0.50 1,000 0 $0.00 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 20

  6. Slide 6: Expanding and Acquiring to Meet Market Demand

    ENERGY PARTNERS, L.P. Expanding and Acquiring to Meet Market Demand Expansion Projects Underway Project Description In Service Cost ($MM) Pacific Fresno Terminal Expansion 1- 80MB tank & 2 lane truck loading rack 2008 $11.0 Colton Terminal Expansion 2 - 80MB tanks 2008 $8.5 Miramar Expansion 2 - 80M

  7. Slide 7: East Line Expansion

    ENERGY PARTNERS, L.P. East Line Expansion Project currently under way to expand the El Paso to Phoenix/Tucson East Line El Paso to Phoenix Expansion – $145 MM cost with estimated completion date in Q4 2007  127 miles of looped 16” pipeline from El Paso to Tucson  13 miles of 12” gathering line  A

  8. Slide 8: East Line Expansion

    ENERGY PARTNERS, L.P. East Line Expansion CURRENT 16” 8" / 12" / 8" NEW DJ 12" PX TU 12" / 16" / 12" TANK 8" 12" EP FARM EXPANSION 16" NEW DJ P/S 12" 16" 8" PX TU TANK 12" EP FARM 7

  9. Slide 9: Calnev Expansion

    ENERGY PARTNERS, L.P. Calnev Expansion Several projects to expand the Calnev pipeline system 2006 - $23.7 MM in total approved projects Las Vegas Terminal Expansion  Provide additional 160,000 Bbls of tankage for gasoline, diesel, and ethanol  Optimize storage of product slate  Completion Februar

  10. Slide 10: Military Expansions

    ENERGY PARTNERS, L.P. Military Expansions Nellis AFB, NV – $10.9 MM  5.3 miles of 8” pipe  20 MB storage tanks and filtration  In-service August 2006 Miramar, CA Station - $15 MM  Provides 160,000 Bbls of tankage for JP-5 & Marine Diesel  Delivery pump and metering facilities  Expected in-serv

  11. Slide 11: Tampa Pipeline

    ENERGY PARTNERS, L.P. Tampa Pipeline Project description Construct 9 mile 8” pipeline from KM Tampa Terminal to Tampa International Airport and install 120k bbl jet fuel tank – total project cost $25 million Start-up expected 18 months from execution of agreement with airline consortium Business dri

  12. Slide 12: Renewable Fuel Opportunities (Ethanol & Biodiesel)

    ENERGY PARTNERS, L.P. RENEWABLE FUEL OPPORTUNITIES (Ethanol & Biodiesel) 2006 Mandate  4 Billion Gallons = 95 Million Barrels = 261,000 Barrels Per Day 2012 Mandate  7.5 Billion Gallons = 179 Million Barrels = 490,000 Barrels Per Day Strong political support for increased biofuels mandates  Calif

  13. Slide 13: Renewable Fuel Opportunities (Continued)

    ENERGY PARTNERS, L.P. Renewable Fuel Opportunities (Continued) Logistics Challenges  Sources of supply  Gathering of supply  Truck/rail/dedicated pipelines  Impact of blend rates on logistics (E-10 vs. E-85 volumes) − Transportation − Storage  Demand Issues  Concentrated in large urban areas o

  14. Slide 14: California's Proposed Low Carbon Fuel Standard (LCFS)

    ENERGY PARTNERS, L.P. California’s Proposed Low Carbon Fuel Standard (LCFS) 40% of California Green House Gas (GHG) Emissions from Transportation Sector Reduce carbon intensity of California passenger vehicles by at least 10% by 2020 Analyze on “well to wheel” or “field to wheel” basis Performance B

  15. Slide 15: California's Proposed Low Carbon Fuel Standard

    ENERGY PARTNERS, L.P. California’s Proposed Low Carbon Fuel Standard POSSIBLE LOW CARBON STRATEGIES E-10 Increase Blend from E-6 to E-10 E-85 Sell high blend (85% ethanol/15% gasoline) for use in Flex Fuel Vehicles Increased use of Low Carbon Ethanol-Cellulosic Ethanol (switchgrass/agricultural wast

  16. Slide 16: California's Proposed Low Carbon Fuel Standard

    ENERGY PARTNERS, L.P. California’s Proposed Low Carbon Fuel Standard E-10 TRANSITION 2006 Kinder Morgan California Ethanol Volumes 274.7 million gallons / 17.9 B/D Adjusted to proposed 10% Blend Rate 482.1 million gallons / 31.4 B/D  75% increase in ethanol volumes Will require permit modifications

  17. Slide 17: California's Proposed Low Carbon Fuel Standard

    ENERGY PARTNERS, L.P. California’s Proposed Low Carbon Fuel Standard OTHER ETHANOL OPPORTUNITIES Full year blending in Arizona/Las Vegas Other markets should mandate expand  Atlanta  Birmingham  Charlotte  Greensboro  Tampa/Orlando  Portland, OR  Seattle, WA 16

  18. Slide 18: Renewable Fuel Opportunities – Biodiesel

    ENERGY PARTNERS, L.P. Renewable Fuel Opportunities – Biodiesel Most Engine Manufacturers Honor Engine Warranties With Biodiesel Blends of 5% or Less Plantation Pipe Line December 13, 2006 Press Release  Evaluating the possibility of transporting B5 to B20 from Baton Rouge, LA to Greensboro, NC Janu

  19. Slide 19: Cochin Acquisition

    ENERGY PARTNERS, L.P. Cochin Acquisition Currently owned 50.2% BP / 49.8% KM with BP as operator Cochin Pipe Line System 1900 mile natural gas liquids pipeline, 5 Fort Saskatchewan propane terminals Edmonton Regina Calgary Richardson Historically, has also moved ethane and Carrington ethylene to che

  20. Slide 20: Plantation Pipe Line Company

    ENERGY PARTNERS, L.P. Plantation Pipe Line Company 2006 Volume Impacts Volumes 6.7% below 2005 volumes (555 B/D vs. 595 B/D) ULSD Product Supply MTBE Elimination and RBOB Phase-in Bengal Pipeline Impact (Shell-CPC Joint Venture) Loss of volumes from origins of Motiva-Norco & Valero-St.Charles Connec

  21. Slide 21: 2007 Product Pipeline Plan

    ENERGY PARTNERS, L.P. 2007 Product Pipeline Plan Pipeline Volumes – Million Barrels Pipeline Revenues - $million (a) 2007 Plan 2006 Actual Percent 2007 Plan 2006 Actual Percent Change Change Pacific 449.3 433.7 3.6% 379.9 359.1 5.8% Calnev 52.2 50.5 3.4% 71.0 65.6 8.2% Plantation 207.0 202.6 2.2% 18

  22. Slide 22: Historical FERC Tariff Index Regime

    Historical FERC Tariff Index Regime Start Current PPI FG – 1 PPI FG PPI FG + 1.3% (1995 - 1999) (2000 – 2005) (2006 - 2010) Effects of Indexing on Tariff of $1/Bbl in 1994 Index Year Multiplier Index Value $1 tariff Basis $1.000 January 1, 1995 to June 30, 1995 1.002175 0.22% $1.002 PPI - FG - 1% Ju

  23. Slide 23: FERC Update

    ENERGY PARTNERS, L.P. FERC Update December 16, 2005 FERC Order  Addressed issues on remand of BP West Coast Products decision (OR92-8 cost of service issues)  Applied FERC Income Tax Allowance Policy Statement to SFPP cases (OR92-8/OR96-2)  Reviewed OR96-2 Phase 2 cost of service rulings of Admin

  24. Slide 24: What's Next?

    ENERGY PARTNERS, L.P. What’s Next? If D.C. Circuit agrees with SFPP appeal on grandfathering, likely outcome is vacation and remand to FERC.  If SFPP prevails at FERC, eliminates basis for reparations in OR96-2  If West Line reparations paid prior to such decision, SFPP could seek to recover repar

  25. Slide 25: Kinder Morgan Energy Partners, L.P.

    KINDER’ “MORGAN ENERGY PARTNERS, L.P.

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