Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Kinder Morgan Energy Partners — Deloitte 2007 Oil & Gas Conference
18 slides from Kinder Morgan's conference presentation, Dec 12, 2007
Slide 1: Deloitte 2007 Oil & Gas Conference
ENERGY PARTNERS, L.P. Deloitte 2007 Oil & Gas Conference December 12, 2007
Slide 2: Forward Looking Statements
ENERGY PARTNERS, L.P. Forward Looking Statements This presentation contains forward looking statements, including these, within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Exchange Act of 1934, as amended. Forward looking statements are not guarantees
Slide 3: Use of Non-GAAP Financial Measures
ENERGY PARTNERS, L.P. Use of Non-GAAP Financial Measures This presentation utilizes the non-generally accepted accounting principles (non-GAAP) financial measures of distributable cash flow (DCF), EBITDA, and segment earnings before depletion, depreciation and amortization (DD&A). For KMP overall, w
Slide 4: System Map
ENERGY PARTNERS, L.P. System Map Trans PRODUCTS PIPELINES Mountain PRODUCTS PIPELINES TERMINALS 2 Cochin TRANSMIX FACILITIES NATURAL GAS PIPELINES NATURAL GAS STORAGE 2 NATURAL GAS Pacific PROCESSING ROCKIES EXPRESS PIPELINE IN-SERVICE ROCKIES EXPRESS PIPELINE 2 KM LOUISIANA PIPELINE Trailblazer 3 M
Slide 5: Capital Structure
ENERGY PARTNERS, L.P. Capital Structure Kinder Morgan Energy Partners Market Equity (a) $12.7B Debt (b) 7.0B Enterprise Value $19.7B 2007E EBITDA (c) $2.0B 2007E DCF (c) $1.4B Additional Cash Incentive Shares Distribution Distribution KMR KMP (LLC) (Partnership) 72 million i-units (a) 175 million un
Slide 6: Solid Asset Base Generates Stable Fee Income
ENERGY PARTNERS, L.P. Solid Asset Base Generates Stable Fee Income KMP CO2 2007 DCF Products Pipelines 28% CO2 transport and sales Profile (b) Refinery hub to population 72% oil production related center strategy Production hedged (a): 68% Pipelines Products 2007=85% ($35/Bbl) CO2 27% Associated Ter
Slide 7: 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 Improve
Slide 8: CO2: KMP Operations
ENERGY PARTNERS, L.P. CO2: KMP Operations Company Remaining CO2 Reserves Ownership Location Deliverability Operator McElmo Dome 45% SW Colorado 35+ yrs KMP Doe Canyon 88% SW Colorado evaluating KMP Utah Colorado Bravo Dome 11% NE New Mexico 10+ yrs Oxy Kansas Company Capacity Pipelines Ownership Loc
Slide 9: CO2: How it Works
ENERGY PARTNERS, L.P. CO2: How it Works CO2 mixes with oil much like turpentine cleans paint from a brush Inter-phase mass transfer typically yields NGL rich gas production Chase water injection helps control mobility and gas recycle 9
Slide 10: CO2: How it Fits in the MLP
ENERGY PARTNERS, L.P. CO2: How it Fits in the MLP CO2 Transport – typical MLP pipeline business CO2 Sales – long-term contracts CO2 Flooding Investment Characteristics: Asset Heavy - Pipelines, Compression Equipment, Wells Operating Cost Structure: Predictable – Driven by fluid handling, purchased p
Slide 11: Growth Opportunities
ENERGY PARTNERS, L.P. Growth Opportunities Current Projects (2007-2010) Additional Opportunities Shifting Natural Gas Supply Sources — Rockies Rockies Express pipeline Storage, further pipeline expansions, — LNG KM Louisiana pipeline extensions, incremental shipper services — Barnett Shale Midcontin
Slide 12: Growth Opportunities: Shifting Natural Gas Supply Sources
ENERGY PARTNERS, L.P. Growth Opportunities: Shifting Natural Gas Supply Sources Natural Gas Supply % Production Volumes (Bcf/d) 2006 2010 Change Change Rockies Rockies Natural Gas (a) 8.2 10.6 2.4 29% Barnett Shale Natural Gas (b) 1.5 5.5 4.0 267% production Gulf Coast LNG Imports (a) 0.4 2.7 2.3 57
Slide 13: Newbuild Natural Gas Pipelines
ENERGY PARTNERS, L.P. Newbuild Natural Gas Pipelines Wyoming Nebraska Indiana Ohio Illinois Colorado Kansas Missouri Oklahoma ROCKIES EXPRESS PIPELINE IN-SERVICE Mississippi ROCKIES EXPRESS PIPELINE Alabama MIDCONTINENT EXPRESS PIPELINE Texas Louisiana Texas KM LOUISIANA PIPELINE KM HEADQUARTERS Roc
Slide 14: Growth Opportunities: Growing Crude Production from Canadian Oilsands
ENERGY PARTNERS, L.P. Growth Opportunities: Growing Crude Production from Canadian Oilsands WCSB Crude Production by Type (a) Heavy/Light Crude Differential (b) WTI vs. Mayan Crude Spot Price 4 $20 Oilsands ‘15 3.5 Condensate CAG R ‘06- % Conventional Heavy ds ~11 3 Conventional Light Oilsan $15 Oil
Slide 15: Growth Opportunities: Increased Use of Heavy Crude
ENERGY PARTNERS, L.P. Growth Opportunities: Increased Use of Heavy Crude North American Petcoke Production (a) 100 Rest of N. America 87 ‘1 R Crude supply is heavier, 5- G ‘0 C A (mm dry short tons) U.S. Gulf Coast 5 80 % more sour ~5 57 60 51 52 51 49 43 45 Heavier, sour crude 40 produces more resi
Slide 16: Current Projects
ENERGY PARTNERS, L.P. Current Projects $6.5 Billion In Projects Over Next 4 Years Estimated Project Expected Project Cost ($mm) Completion Rockies Express $2,200 (a) 2007-2009 Midcontinent Express 625 (a) 2009 KM Louisiana Pipeline 517 2009 CALNEV expansion 425 2010 East Line expansion 155 2007 Tran
Slide 17: Summary
ENERGY PARTNERS, L.P. Summary Stable Cash Flow Own assets core to energy infrastructure Internal Growth Opportunities Critical Mass Well-located assets/favorable demographics KMP/KMR: Fixed Cost Business 6-7% Yield Drop growth to bottom line and Unique Structure 8% Long-Term Tax Efficient
Slide 18: ENERGY PARTNERS, L.P.
KINDER’ “MORGAN ENERGY PARTNERS, L.P.
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