Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Kinder Morgan 2013 Analyst Conference
44 slides from Kinder Morgan's conference presentation, Jan 30, 2013
Slide 1: Natural Gas Pipelines
Natural Gas Pipelines Tom Martin President Natural Gas Pipeline Group
Slide 2: Overview
Overview Market Environment Growing natural gas demand for power generation Shale activity providing excellent growth opportunities LNG export market will require natural gas infrastructure development Value Proposition Vast asset base with secure cash flows supported by long-term contracts
Slide 3: Natural Gas Segment
Natural Gas Segment (a,b) (KMP) __________________________ (a) Assets scheduled for 2013 dropdown are indicated at the respective acquiring MLP (i.e., EPNG & EP Midstream at KMP, and GLNG at EPB). (b) TGP offshore system to be sold in 2013. 3
Slide 4: Financial Overview
Financial Overview 2013 KM Gas Pipeline Group EBDDA (KM Share $million) Budget KMI KMP EPB West Region Total 1,014.6 123.6 365.6 525.4 Central Region Total 207.3 9.2 198.1 - East Region Total 1,746.3 246.4 804.4 695.4 Midstream Assets Total 843.9 6.7 837.2 - Total 3,812.1 385.9 2,205.4 1,220.8 2013
Slide 5: Contracted Capacity and Term by Region
Contracted Capacity and Term by Region Contracted Average Term Region Capacity Remaining East Storage 119 Bcf 2 yr, 10 mo Transport 16.3 Bcf/d 8 yr, 2 mo LNG 18 Bcf 19 yr, 5 mo Interstate West Storage 39.0 Bcf 7 yr, 1 mo Transport Contracts Transport 16.8 Bcf/d 5 yr, 2 mo Avg. = 6 yr, 8 mo Central S
Slide 6: Gas Pipeline Group Major Projects
Gas Pipeline Group Major Projects Board Customer Capital, KM Share ($MM) Region Asset Approval Execution KMP(a) EPB(a) Total Completed Completed 629 629 TGP Completed Pending 303 303 Completed Completed 121 121 SNG/EEC East Completed Pending 146 146 Completed Completed 498 498 ELC/SLNG/GLNG Pending
Slide 7: Deliveries to Directly-connected Gas-fired Power Plants on KM Pipelines
Deliveries to Directly-connected Gas-fired Power Plants on KM Pipelines + New Southern Co. gas fired plant on SNG significantly influenced YOY increase + Robust supply and reduced 1Q ‘12 R&C gas heating demand due to a warmer than normal winter contributed to very low gas prices that allowed power g
Slide 8: Region Asset Reviews
KINDER/MORGAN Region Asset Reviews
Slide 9: East Region Assets
East Region Assets (a,b) Growth Drivers Asset footprint serves growing Southeast markets and infrastructure-constrained Northeast markets from both traditional and developing supply regions. TGP uniquely positioned in growing Marcellus and Utica shale plays to provide region- wide market access
Slide 10: Current East Region Projects
Current East Region Projects Capital, Board Customer In-service Asset MLP(a) Project KM Share Capacity Project Status Approval Execution Date ($MM) Northeast Upgrade 449.7 636 MDth/d 11/13 FERC Order received Marcellus Pooling Point (MPP) 85.6 240 MDth/d 11/13 FERC Order received Completed Completed
Slide 11: Current TGP Projects
Current TGP Projects (a) NE Upgrade Connecticut Project Expansion Marcellus Pooling Project Rose Lake Expansion Uniondale Utica Backhaul __________________________ (a) Not shown here: the Cameron LNG project in Louisiana. 11
Slide 12: TGP - Northeast Upgrade Project
TGP - Northeast Upgrade Project Capacity: 636,000 Dth/d Rate: Negotiated Capital: $449.7 MM Current Status: Fully subscribed; FERC Order received; preliminary work underway Estimated In-Service: November 1, 2013 Major Milestones: Project Scope: — April/June 2013: Commence compression &
Slide 13: TGP - Marcellus Pooling Point (MPP) Project
TGP - Marcellus Pooling Point (MPP) Project Capacity: 240,000 Dth/d Rate: Negotiated Capital: $85.6 MM Current Status: Fully subscribed; Notice-to- Proceed received for all project facilities Estimated In-Service: November 1, 2013 Major Milestones: Project Scope: — January 2013: Early
Slide 14: TGP - Rose Lake Project
TGP - Rose Lake Project Commercial Benefit: Expand TGP’s Capacity: 230,000 Dth/d capacity to transport Marcellus Shale Capital: $83.0 MM production to Canada and New England Estimated In-Service: November 1, 2014 Rate: Negotiated Project Scope: Current Status: Fully subscribed; FERC —
Slide 15: TGP - Uniondale Project
TGP - Uniondale Project Uniondale Station 219 Pool Capacity: 34,000 Dth/d Rate: Negotiated Capital: $9.0 MM Current Status: Fully subscribed; PA executed Estimated In-Service: November 1, 2014 Major Milestones: Project Scope: Inlet air cooling at Station 321 — July 2013: File FERC Prio
Slide 16: TGP - Utica Backhaul Transportation
TGP - Utica Backhaul Transportation Capacity: 352,125 Dth/d Capital: $121.2 MM Estimated In-Service: November 1, 2015 Project Scope: Pipe modifications at 3 compressor stations Commercial Benefit: Backhaul capacity from Utica Shale to GOM markets Rate: Negotiated Current Status: Shippe
Slide 17: TGP - Connecticut Expansion Project
TGP - Connecticut Expansion Project Capacity: 72,100 Dth/d Rate: Negotiated Capital: $81.2 MM Current Status: Shipper negotiations underway Estimated In-Service: November 1, 2016 Major Milestones: (Potential to accelerate to 2015) — 1st Quarter 2013: Execute PAs Project Scope: — 13.3 m
Slide 18: TGP - Cameron LNG
TGP - Cameron LNG Zone 1 Capacity: 550,000 - 650,000 Dth/d — 250,000 Dth/d from Texas — 100,000 Dth/d from Marcellus/Utica Haynesville — 200,000 - 300,000 Dth/d from Perryville Capital: $100.5 MM Estimated In-Service: July 2017 (Train 1) Zone 0 Project Scope: — Station re-piping — Re-routing
Slide 19: EEC - Elba Express Phase B Compression
EEC - Elba Express Phase B Compression Capacity: 225,000 Dth/d Hartwell CS Capital: $22.8 MM Elba Express Estimated In-Service: April 1, 2013 (8 months ahead of original target date) Elba Project Scope: 10,310 HP of Island compression in Hart county, GA, near Transco interconnect Cypress SNG
Slide 20: SNG - Muldon Storage Base Gas Conversion
SNG - Muldon Storage Base Gas Conversion Capacity: 5 Bcf Capital: $17.4 MM Estimated In-Service: July 2013 Project Scope: — Increase Muldon’s working gas capacity from 31 Bcf to 36 Bcf Muldon Storage — Drill/modify wells — Construct surface facilities Commercial Benefit: Additional storage
Slide 21: SNG - Rose Hill Project
SNG - Rose Hill Project Capacity: 285 MDth/d Capital: $33.5 MM Estimated In-Service: November 1, 2013 Project Scope: Modify facilities on SNG and TGP to effectuate a receipt point shift from Destin/Petal to Rose Hill and points upstream of Rose Hill — Relocate 10,000 HP turbine from LaCombe
Slide 22: SNG/EEC - Sonat/Elba Express Expansion
SNG/EEC - Sonat/Elba Express Expansion Capacity: 120 MDth/d Capital: $146.0 MM Estimated In-Service: 2016 or later Project Scope — Compression on SNG and EEC — Additional pipeline and other facilities Commercial Benefit: Additional access to Marcellus/Utica shale gas for existing and new S
Slide 23: SLNG - Elba Boil Off Gas Compression
SLNG - Elba Boil Off Gas Compression Capacity: 21 MMcf/d Capital: $10.2 MM Estimated In-Service: February 2013 Project Scope: Install 12 MMcf/d (2,500 HP) of electric-drive compression, increasing BOG compression from 9 MMcf/d to 21 MMcf/d Commercial Benefit: — Manage daily boil-off gas —
Slide 24: Liquefaction at Elba Island (Phase 1)
Liquefaction at Elba Island (Phase 1) Elba Liquefaction Company (ELC) / SLNG Capacity: 210 MMcf/d Capital (KM Share): ELC $408 MM SLNG 80 MM EEC 41 MM Total $529 MM Estimated In-Service: 2016 Project Scope: — ELC: Facilities for liquefaction — SLNG: Ship loading facilities; boil-off gas comp
Slide 25: GLNG
GLNG Liquefaction at Gulf LNG Capacity: 300 MMcf/d Capital: $500 MM (KM portion) Estimated In-Service: 2018 Project Scope: Developing facilities to export natural gas through liquefaction process — Addition of liquefaction facility outside boundary of existing seawall Commercial Benefit: E
Slide 26: East Region Additional Potential Growth Projects
East Region Additional Potential Growth Projects Marcellus and Utica Shale Plays — Production increases in these two areas will provide opportunities for expansion of TGP facilities and/or greenfield pipe • Canadian Project Northeast Gas/Electric Initiatives — New Infrastructure is needed in the
Slide 27: West Region Assets
West Region Assets (a) Growth Drivers Large asset footprint provides numerous opportunities for expansion capital investment (Ruby, CIG, EPNG, Transcolorado, WIC, Cheyenne Plains) West Region pipelines reach back to all Rockies Basins. Growing liquids and oil production is creating expansion opp
Slide 28: Current West Region Projects
Current West Region Projects Capital, Board Customer In-service Asset MLP(a) Project KM Share Capacity Project Status Approval Execution Date ($MM) Willcox Lateral Expansion 23.1 185 MDth/d 4/13 Under construction Received Presidential Samalayuca Lateral Expansion 11.0 97 MDth/d 7/13 permit, pending
Slide 29: EPNG - Willcox Lateral Expansion
EPNG - Willcox Lateral Expansion Capacity: 185 MDth/d Capital: $23.1 MM Partial in-service: January 1, 2013 Expected full in-service date: April, 2013 Project Scope: — New facilities at Willcox Compressor Station — Upgraded meter stations Commercial Benefit: Low cost gas supply for new g
Slide 30: EPNG - Samalayuca Lateral Expansion
EPNG - Samalayuca Lateral Expansion New Interconnection Capacity: 97 MDth/d Capital: $11.0 MM Hueco C.S. In-Service: July 30, 2013 Clint Samalayuca Project Scope Lateral — 1,400 ft 36” HDD of Rio Grande River (Line 1136) U. S. — New meter station MEXICO Existing GdC Commercial Benefit: P/L
Slide 31: EPNG - Willcox II Lateral Expansion
EPNG - Willcox II Lateral Expansion Willcox C.S. Capacity: 90 MDth/d Capital Cost: $14.6 MM 61.4 mi., 20” In-Service Date: January 1, 2014 2163 Willcox Lateral Project Scope: — Loop the East leg of the Willcox Lateral — 11.2 miles of 16” pipe Commercial Benefit: U. S. MEXIC O AP I & II — I
Slide 32: EPNG - Sierrita Pipeline
EPNG - Sierrita Pipeline (a) Capacity: Arizona — 204 MDth/d initial free flow (Phase 1) — 812 MDth/d final compression Tucson Tohono Capital (KM): $71.5 MM O’odham Indian Res. In-Service: Phase I: October 1, 2014 Buenos Aires Project Scope: Nat’l Wildlife Refuge — Sierrita Pipeline Co. – JV,
Slide 33: CIG - High Plains Expansion
CIG - High Plains Expansion Capacity: 600 MDth/d Capital: $12.1MM In-Service: November 2013 Project Scope: — 8 miles of 24” pipe, regulation, and metering at Cheyenne into WIC — Lancaster MS (Anadarko) and LaSalle MS (DCP) Commercial Benefit: — Joint venture expansion with Xcel to move gro
Slide 34: West Region Additional Potential Growth Projects
West Region Additional Potential Growth Projects Dramatic growth in unconventional oil and liquids production — Growing Permian production creates oil conversion opportunities on EPNG (Freedom Pipeline) — Dry to wet service conversions • Niobrara Shale (Powder River Basin and DJ Basin) • Tight gas
Slide 35: West Region Growth Opportunity
West Region Growth Opportunity KM Freedom Pipeline (Proposed) Capacity: Up to 400,000 Bbl/d Emidio, CA — Viable at 250,000 Bb/d of firm commitments Capital: $2.0 B (277,000 Bbl/d), minimal additional capital to achieve 400,000 Bbl/d Expected In-Service Date: — Q4, 2016 Project Scope: — Conve
Slide 36: Central Region Assets
Central Region Assets (a) Growth Drivers Large and strategic asset footprint near major shale plays and supply basins provides opportunities to attach new supply 12 Bcf/d of potential demand from 7 announced LNG liquefaction projects along the Gulf Coast near NGPL and KMLP Well positioned to s
Slide 37: Central Region Additional Potential Growth Projects
Central Region Additional Potential Growth Projects LNG Liquefaction Opportunities — LNG liquefaction projects moving forward in South Texas/Louisiana provide potential expansion investment opportunities on both NGPL and KMLP Industrial Market Growth Opportunities — Several fertilizer plant oppo
Slide 38: Midstream Assets
Midstream Assets (a) Growth Drivers Large asset footprint provides continued expansion capital investment (Texas Intrastate) Competitive expandability and connectivity for increased deliveries into Mexico for its growing reliance on natural gas (Texas Intrastate) Significant storage positions
Slide 39: Current Midstream Projects and Opportunities
Current Midstream Projects and Opportunities Capital, (a) Board Customer In-service Asset MLP Project KM Share Capacity Project Status Approval Execution Date ($MM) Increase in Completed Completed West Clear Lake Expansion 29.3 4/13 Construction in progress inj/wd capability Texas KMP Intrastate Pro
Slide 40: West Clear Lake Storage Expansion
West Clear Lake Storage Expansion Capacity: — 85.0 Bcf of Working gas capacity within the Houston Metro area Capital: $29.3 MM In-Service: April 1, 2013 Project Scope — Deliverability Enhancement Project — Increase injection and withdrawal capabilities — Install 8,000 hp of new compression —
Slide 41: Projects to Serve Gas Fired Electric Generation
Projects to Serve Gas Fired Electric Generation Capacity: 350 MDth/d Capital: $181 MM In-Service: 2014 through 2015 Project Scope: — New pipe, compression and meters — Gas Cooling Commercial Benefit: Serve growing gas fired electric generation markets Rate: Negotiated Current Status: P
Slide 42: Midstream Additional Potential Growth Projects
Midstream Additional Potential Growth Projects Exports — Electric generators in Mexico are looking towards natural gas to fuel new plants to meet growth and replace other fuels such as oil — Proposed LNG liquefaction projects in South Texas Processing and Gathering — Continued growth in shale pl
Slide 43: Midstream Growth Opportunity
Midstream Growth Opportunity Kinder Morgan Utica Project KM Midstream Facilities: Mariner West 300 MMcf/d processing plant — July 2014 in-service 48 Mbpd Fractionator — 100,000 bbls NGL storage — Onsite truck/rail loading — Site expandable to 1.2 Bcf/d and 192 Mbpd fractionation capacity KM TGP
Slide 44: Gas Pipeline Group Growth Outlook
Gas Pipeline Group Growth Outlook Projects Currently Under Development Capital, KM Share ($MM) Region KMP EPB Total East 932 1,265 2,197 West 124 12 136 Midstream 400 400 Total 1,457 1,277 2,734 Additional Potential Growth Projects Capital, KM Share ($MM) Region KMP EPB KMI Total East 2,800 7,200 10
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