Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Kinder Morgan 2014 Analysts Conference
22 slides from Kinder Morgan's conference presentation, Jan 29, 2014
Slide 1: Products Pipelines
Products Pipelines Ron McClain President Products Pipelines Group
Slide 2: Products Pipelines Assets
Products Pipelines Assets Miles of Pipe: ~9,000 Terminals: 56 Tank Capacity: Terminal ~38 MMBbls Pipelines ~16 MMBbls Transmix: 6 facilities with process capability of 32.5 MBbl/d Condensate Processing: Capability of 100 MBbl/d (under const.) 2013 Throughput: ~2.0 MMBbl/d 2
Slide 3: Financial Overview
Financial Overview (a) ($ in millions) Compound Annual Growth Rate = 10.8% 2011 2012 2013 2014B Segment EBDA 694.4 702.6 783.8 927.9 Sustaining Capex (b) (45.8) (47.8) (50.2) (44.7) DCF 648.7 654.8 733.6 883.2 2014 budget includes year over year growth from: Eagle Ford pipelines (KMCC & Double Eag
Slide 4: 2013 Volumes / Markets
2013 Volumes / Markets Total refined product volumes up, 4.5% vs. 2012 Gasoline up 7.1%, diesel up 0.6%, jet fuel flat West Coast Southeast — Pacific up 1.9% — Central Florida Pipeline up 3.8% • Arizona up 0.1%, Northern CA up 3.0% and • Gasoline up 5.1% Southern CA up 5.6% • Diesel up 2.4% •
Slide 5: Expanding to Meet Customer Demand
Expanding to Meet Customer Demand Recently Completed Projects / Acquisitions Project Description In Service Cost ($MM) West Various Terminal Projects Includes rack expansions, tank modifications, and additive systems Varies $4.8 East Parkway Pipeline Project Construct new 141 mile, 16 inch liquid pr
Slide 6: Growth Forces
Growth Forces Crude/NGL Movements Refined Products Movements ~450 MBbl/d Diluent Demand in 2015 ~400+ MBbl/d NGL Excess Reduced Supply in 2016 Imports ~1,300 MBbl/d Crude/Condensate Production in 2015 Gulf Coast Refiners/Frac 6
Slide 7: KMCC Development
KMCC Development Splitter #1 Gonzales Lateral Splitter #2 Karnes Lateral Extending to Helena Sweeny Lateral Terminating P66 Refinery KMCC KMCC/Double Eagle Interconnect Double Eagle 7
Slide 8: Kinder Morgan Crude & Condensate Pipeline / Double Eagle Pipeline
Kinder Morgan Crude & Condensate Pipeline / Double Eagle Pipeline Kinder Morgan Crude & Condensate (KMCC) Sweeny Lateral In-service Jun-2012; Capacity 300 MBbl/d; 2015 Committed volumes 132–195 MBbl/d Constructing ~27 mile 12” pipeline to Provides Eagle Ford producers access to Houston Ship Ch
Slide 9: Kinder Morgan Condensate Processing Facility
Kinder Morgan Condensate Processing Facility Strategic Value Engineered for Eagle Ford production Supports volume demand for KMCC Integrated connectivity to refining, petchem, pipeline and marine facilities Facility Specifications $359MM Project Processing Unit and 1.9 MMBbls of new tankag
Slide 10: Cochin Line Reversal
Cochin Line Reversal Strategic Value Project to reverse product flow from Milford IN west to provide 95 MBbl/d light condensate to oil sands producers in Western Canada Supported by 85 MBbl/d shipper commitments for initial 10-year term Receipt connections from Explorer Pipeline and TEPPCO Pip
Slide 11: Cochin East Leg Opportunities
Cochin East Leg Opportunities Condensate Opportunities Cochin east leg can be reversed from Riga, MI west and extended with new pipe to provide light condensate gathering solution for the growing Utica & Marcellus shale play Rail facility at Milford IN to provide access to Utica light condensate
Slide 12: Utica Marcellus Texas Pipeline (UMTP) & Mont Belvieu Fractionation Facilities
Utica Marcellus Texas Pipeline (UMTP) & Mont Belvieu Fractionation Facilities Strategic Value Fully-integrated new product solution for growing NGL production in the Utica/Marcellus shale NGL pipeline utilizing TGP infrastructure to transport Y-grade from Utica/Marcellus shale to Mont Belvieu, T
Slide 13: Plantation Pipeline Expansion Opportunities
Plantation Pipeline Expansion Opportunities Market Forces Favorable gulf coast product pricing relative to NY Harbor Market not currently served via pipeline Jacksonville Lateral Expand Plantation Pipeline to serve coastal markets Plantation mainline expansion and new delivery lateral(s) P
Slide 14: Expanding to Meet Customer Demand
Expanding to Meet Customer Demand Approved Near-Term Projects Project Description In-service Cost ($MM) West Carson Terminal Provide marine access post-2013 termination of existing Los Angeles March 2014 $ 18.5 harbor terminal lease Edwards Air Force Base Provides for direct pipeline interconnection
Slide 15: Historical Demand and 2014-15 EIA Outlook
Historical Demand and 2014-15 EIA Outlook U.S. Product Consumption EIA Demand Outlook MMBbl/d 2013 2014E 2015E 10 Mogas 0.9% -0.1% -0.2% 9 Distillate 2.2% 1.2% 2.0% 8 7 Jet Fuel 1.5% -0.1% 0.3% 6 Total 1.3% 0.2% 0.5% 5 4 KM Refined Product Pipelines (MMBbls) 3 2 2013 2014B % chg 1 Pacific, 466.7 474
Slide 16: Historical FERC Tariff Index Regime
Historical FERC Tariff Index Regime Applicable to interstate volume on SFPP, Calnev, Plantation, Cochin (U.S.), KMCC and Central Florida PPI FG + 1.3% PPI FG + 2.65% 2006 – 2010 2011 – 2015 $1.55 $1.50 Growth of $1 3.87% $1.45 4.59% $1.40 8.60% $1.35 $1.30 6.88% $1.25 7.60% -1.30% $1.20 $1.15 5.17%
Slide 17: Biofuels
Biofuels Proposed 2014 Renewable Fuels Standard Products Pipelines Biofuel suppresses E15 implementation Volumes Handled (MMBbls) 2011 2012 2013 2014B Biodiesel blenders’ tax credit expired at the 31.1 34.4 41.1 44.9 end of 2013 Opportunities to improve ethanol distribution Biofuel Revenues ($
Slide 18: Refined Products Segment Margin
Refined Products Segment Margin $MM Compound Annual Growth Rate = 7.8% $1,400 $1,200 $1,000 $800 $600 $400 $200 $- 2010 2011 2012 2013 2014B Terminals/Other Refined Prod Interstate Refined Prod Intrastate NGL/Crude & Condensate 18
Slide 19: CPUC Rate Cases (The Saga Continues)
CPUC Rate Cases (The Saga Continues) SFPP Long history of shipper complaints to the CPUC about aspects of SFPP rates, dating back to 1992, including the following: — Income Tax Allowance (ITA), overhead allocation, environmental remediation expenses, and other Cost of Service (COS) issues April
Slide 20: FERC Rate Case Updates – SFPP and Calnev
FERC Rate Case Updates – SFPP and Calnev SFPP Two major rate cases, the West Line and the East Line, remain pending at FERC, awaiting the Commission’s rehearing orders of Opinion Nos. 511/511-A and 522 Those opinions upheld SFPP on key issues and strongly reiterated the Commission’s ITA policy,
Slide 21: Summary Highlights
Summary Highlights Significant growth from identified opportunities currently under development — Continued development of Eagle Ford assets — Expansion of condensate processing capabilities — Development of Utica/Marcellus take away capacity — Expansion of Plantation Pipeline Full year results
Slide 22: KINDER/MORGAN
KINDER/MORGAN
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