Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Kinder Morgan Energy Partners — 2009 KMP Analyst Conference
26 slides from Kinder Morgan's conference presentation, Jan 29, 2009
Slide 1: Products Pipelines
ENERGY PARTNERS, L.P. Products Pipelines Tom Bannigan President Products Pipeline Group
Slide 2: KMP Products Pipelines and Facilities
ENERGY PARTNERS, L.P. KMP Products Pipelines and Facilities PRODUCTS PIPELINES PRODUCTS PIPELINES TERMINALS TRANSMIX FACILITIES Cochin (2,3,8) INDICATES NUMBER OF FACILITIES IN AREA KM HEADQUARTERS Pacific Miles of Pipe ~ 8,900 Northern Terminals – 52 2 2 CALNEV 2 Tank Capacity 4 3 2 Terminal ~ 31 M
Slide 3: 2008 Volumes/Markets – Refined Products
ENERGY PARTNERS, L.P. 2008 Volumes/Markets – Refined Products Total volume off 7.1% versus 2007 Excluding Plantation (not a good proxy for demand) – down 5.9% versus EIA national estimate of -3.9% for gasoline, distillate and jet fuel West Coast Pacific -6.2% Arizona -5.3%, Northern CA -5.2%,
Slide 4: Revenue Drivers
ENERGY PARTNERS, L.P. Revenue Drivers Organic Volume Growth and Renewable Fuels Opportunities Expansions/Acquisitions FERC Index (PPI FG +1.3%) Terminals (revenue growth opportunities beyond pipeline volume growth) Contract rate adjustments, biofuels, ancillary services, property leases
Slide 5: Asset Stability – Refined Products
ENERGY PARTNERS, L.P. Asset Stability – Refined Products Intrastate pipelines High barriers of entry Demographics support continued growth, but at moderated pace California intrastate (CPUC) FERC Index PPI FG + 1.3% (interstate volumes) Central Florida Pipeline Substantial divergence alternati
Slide 6: Historical Demand and 2009-10 EIA Estimates
ENERGY PARTNERS, L.P. Historical Demand and 2009-10 EIA Estimates EIA Demand Estimates U.S. PRODUCT CONSUMPTION 2008 2009E 2010E 10 Mogas -3.3% -1.0% 0.5% 9 Distillate -5.2% -2.8% 1.3% 8 Jet Fuel -6.8% -4.0% 0.0% Total -4.2% -1.8% 0.6% M IL L IO N B A R R EL S PER D A Y 7 6 5 4 Motor Gasoline 3 Dist
Slide 7: Historical FERC Tariff Index Regime
ENERGY PARTNERS, L.P. Historical FERC Tariff Index Regime PPI FG PPI FG + 1.3% 2000 – 2005 2006 - 2010 Effects of Indexing on $1/bbl in June 2004 $1.50 $1.45 $1.40 7.60% $1.35 $1.30 5.17% $1.25 4.32% Index $1.20 Value 6.15% $1.15 $1.10 3.63% $1.05 3.17% $1.00 $0.95 July 1, 2004 to June July 1, 2005
Slide 8: Terminals
ENERGY PARTNERS, L.P. Terminals Pacific, CALNEV, KMST and CFPL Terminal revenues have experienced considerable revenue growth not directly linked to pipeline volumes Drivers for growth Ethanol and biodiesel storage and blending Additive storage and blending Lubricity (ULSD) Red dye (off
Slide 9: Refined Products Revenues
ENERGY PARTNERS, L.P. Refined Products Revenues Includes Pacific, CALNEV, Central Florida Pipeline, Plantation (51%), West Coast and Southeast Terminals and Transmix 1000 Average annual growth 5.9% 800 600 Terminals 400 Pipelines 200 0 2005 2006 2007 2008 2009P 9
Slide 10: 2009 Refined Products Pipeline Plan
ENERGY PARTNERS, L.P. 2009 Refined Products Pipeline Plan Refined Products Refined Products Pipeline Volumes – Million Barrels Pipeline Revenues - $million (a) Percent Percent 2009 Plan 2008 Actual Change 2009 Plan 2008 Actual Change Pacific 422.4 410.8 2.8% $ 400.0 $ 376.8 6.2% CALNEV 49.5 47.8 3.6
Slide 11: 2009 Refined Products Revenue Growth
ENERGY PARTNERS, L.P. 2009 Refined Products Revenue Growth* $ millions $550.0 $10.8 ($1.6) $533.4 $8.6 $525.0 $16.8 $498.8 $500.0 $475.0 $450.0 $425.0 $400.0 th x ** on P 08 de w er 09 si 20 ro In th n 20 G pa O e Ex m lu Vo __________________________ *SFPP, CALNEV and CFPL revenue variances **Leap
Slide 12: Refined Products Excluding Plantation: If Volume Assumptions are not Realized
ENERGY PARTNERS, L.P. Refined Products Excluding Plantation If Volume Assumptions are not Realized Volume assumption 2009 Plan – Approximately 3% growth* Volume/revenue sensitivity 1% reduction in volume growth assumption in 2009 Plan (e.g. from 3% to 2%) ~ $3.5 million decrease in revenue and $
Slide 13: Plantation Volume/Revenue Assumptions
ENERGY PARTNERS, L.P. Plantation Volume/Revenue Assumptions BY PRODUCT Gasoline +6.7% Diesel +19.7% Jet -7.6% Gasoline/Diesel growth driven by incentive programs, throughput commitment linked to an expansion project and a multiyear lease agreement involving gasoline tankage in Collins, MS
Slide 14: NGL Assets
ENERGY PARTNERS, L.P. NGL Assets Cochin/Cypress combined represent $62 million Income before DD&A or 10% of 2009 segment Plan Cochin 1,900 mile pipeline serving 5 propane terminals and petrochemical petrochemical complex (ExxonMobil, BP, Nova) in Sarnia, Ontario Major credit- credit-worthy c
Slide 15: Expanding to Meet Customer Demand
ENERGY PARTNERS, L.P. Expanding to Meet Customer Demand Recently Completed Expansion Projects Project Description In Service Cost - $MM Pacific Miramar Marine Corp Air Station Four 80k bbl tanks, 8 inch pipeline and facilities Dec 2008 $ 25.0 Fresno Tank & Rack 80k bbl tank and two lane truck loadin
Slide 16: Expanding to Meet Customer Demand
ENERGY PARTNERS, L.P. Expanding to Meet Customer Demand Expansion Projects Approved and Underway Project Description In Service Cost - $MM Pacific Travis Air Force Base Three 150k bbl tanks, 16 inch pipeline and facilities 2011 $ 44.7 Colton Terminal Expansion Add two 80k bbl tanks and two lane load
Slide 17: CALNEV Expansion
ENERGY PARTNERS, L.P. CALNEV Expansion Mainline Expansion (16” pipeline) $425.8 MM In service April 2011 Permitting/Engineering Design underway Initial capacity 200,000 B/D Can be increased to over 300,000 B/D with additional horsepower FERC approved URC rate structure for new investme
Slide 18: KM – DESC Logistical Partnership
ENERGY PARTNERS, L.P. KM – DESC* Logistical Partnership Projects Completed or Underway: • Filtration and Additive (5 bases) • Pipeline (5.5 mile 8in), Pumps and 20 MB Storage at Nellis AFB • Pipeline (0.5 mile 8in), Pumps and 320 MB Storage for MCAS Miramar and Pt. Loma Navy Base • Pipeline (1.5 mil
Slide 19: Biofuels: Approved Ethanol and Biodiesel Projects
ENERGY PARTNERS, L.P. Biofuels Approved Ethanol and Biodiesel Projects Eugene, Willbridge and Harbor Island $17 MM Southeast Terminals $45 million Mandates at SFPP Terminals 11 locations by 2010 CFPL Pipeline and Additional $23 million expected to be approved to Terminals meet West Coast mandates an
Slide 20: Biofuels: California Renewable Fuel Opportunities
ENERGY PARTNERS, L.P. Biofuels California Renewable Fuel Opportunities California Ethanol Mandate increases from 5.7% to 10% (incremental 40,000 barrels per day of ethanol) Effective 1/1/2010 $15 MM investment in storage and blending infrastructure Improvements to offloading and storage at c
Slide 21: Biofuels: Pacific Northwest Biofuels Opportunities
ENERGY PARTNERS, L.P. Biofuels Pacific Northwest Biofuels Opportunities (Near-term) Mandates Washington: Avg. 2% of volume (ETOH & BioDiesel) Effective Dec ‘08 Oregon: E-10 requirement rolled-out during ’08; B-2 requirement expected during ‘09 KM Infrastructure Seattle: E-10 blending institu
Slide 22: Biofuels: CFPL Ethanol
ENERGY PARTNERS, L.P. Biofuels CFPL Ethanol Tampa/Orlando markets – approximately 20,000 B/D of ethanol demand at 10% blend rate 10% ethanol blends required by the state 1/1/11 270,000 BBLS of ethanol storage in place by 2Q08; total 350,000 BBLS by 4Q09 Storage and blending fully subscribed
Slide 23: Biofuels: KMST Ethanol
ENERGY PARTNERS, L.P. Biofuels KMST Ethanol Ethanol blending capability in 12 of 15 markets by April 2009 Adding blend capability to conventional gasoline Backed by term contracts Continued interest in ethanol hub operations in North Carolina Will support rail opportunities (existing stora
Slide 24: Biofuels: Transportation of Biofuels by Pipeline
ENERGY PARTNERS, L.P. Biofuels Transportation of Biofuels by Pipeline Batching ethanol on CFPL began December 2008 No operational or integrity issues – continue to monitor 2009 Plan ethanol transport volume – 5,100 bbls/day Evaluating other pipeline segments in the Southeast and West Coast
Slide 25: Rate Case Update
Rate Case Update Waiting for order on OR96-2 Compliance Filing (February 2008) and further rehearing requests Updated reserve in 2008 to reflect above decision as well as certain settlement negotiations, interest on reparations and related legal expenses Settled several cases: Settled EPX Oc
Slide 26: Rate Case Update – Cont'd
Rate Case Update – Cont’d Progress in several subsequent cases: Completed hearing in OR-03 North/Oregon complaint cases; Initial Decision in Nov. 2008; briefing now Completed hearing in OR-03 East/West complaint cases in Dec. 2008; Initial Decision expected in June 2009 Hearing in June 2009
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