Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Investor Day (2006)
15 slides from Kinder Morgan's investor day presentation, Mar 11, 2006
Slide 1: Financial Review
Financial Review Kimberly Dang
Slide 2: Agenda
Agenda 2006 Budget 2006 Cash Flow Sustaining Capital Analysis Expansion Capital Analysis Financing KMI Consolidation of KMP Balance Sheet Analysis Summary 2
Slide 3: KMP 2006 Budget
KMP 2006 Budget (thousands) Change % 2006E 2005 05 – 06E Change Segment Earnings before DD&A Products Pipelines $581,687 $508,343 $73,344 14% Natural Gas Pipelines 501,243 500,235 1,008 0% CO2 547,388 471,185 76,203 16% Terminals 377,312 318,141 59,171 19% Total Segment Earnings b/f DD&A 2,007,630 1
Slide 4: KMP 2006 Budget Per Unit
KMP 2006 Budget Per Unit (thousands, except per unit) Change % 2006E 2005 05 – 06E Change Limited Partners’ Net Income $530,994 $503,321 $27,673 6% Units Outstanding (avg) 224,024 212,429 11,595 5% Income Per Unit $2.37 $2.37 $0.00 0% DD&A Per Unit 1.71 1.67 0.04 2% Sustaining Capex Per Unit (0.76)
Slide 5: KMI 2006 Budget
KMI 2006 Budget (thousands, except per share) Change % 2006E 2005 05 – 06E Change Segment Income KMP $734,864 $668,706 $66,158 10% NGPL 466,572 436,866 29,706 7% Retail 58,583 58,240 343 1% KM Canada 115,835 12,549 103,286 823% Terasen Gas 298,231 45,187 253,044 560% Power 20,893 19,693 1,200 6% Tot
Slide 6: KMP Distributable Cash Per Unit
KMP Distributable Cash Per Unit (thousands, except per unit) Growth Rate 2004 2005 2006E ‘05-‘06E Net Income $833,268 $982,321 $1,066,504 DD&A 294,201 355,471 383,079 Sustaining Capex (119,244) (140,805) (170,003) Total Distributable Cash Flow 1,008,225 1,196,987 1,279,580 7% General Partner's Inter
Slide 7: KMI Cash Per Share
KMI Cash Per Share (thousands, except per share) Growth Rate 2004 2005 2006E ‘05-‘06E Recurring Earnings $475,781 $554,588 $677,080 Add: Tax Expense 299,945 349,199 347,747 Pretax earnings 775,726 903,787 1,024,827 Add: DD&A 118,742 131,640 258,143 Less: Sustaining Capital (82,233) (121,283) (256,00
Slide 8: Sustaining Capital Analysis
Sustaining Capital Analysis (millions) KMP KMI 2006E $170.0 $256.0 2005 140.8 121.3 Variance $29.2 $134.7 Increase due to TER (a) --- (102.3) Net Variance $29.2 $32.4 __________________________ Note: All amounts in U.S. dollars and exclude certain items unless otherwise noted. (a) 2006 budget less D
Slide 9: KMP Expansion Capital Analysis
KMP Expansion Capital Analysis (millions) 2006 Expansion/Inclusion Products Pipelines $141 Natural Gas Pipelines 29 CO2 Pipelines 353 Terminals 150 Totals Expansion $673 Acquisitions 60 Total $733 Potential 2006 Expenditures (estimated) Entrega $450 REX 400 Total $850 TOTAL $1,583 __________________
Slide 10: KMP Financing
KMP Financing (millions) 2005 2006E Equity Issuance 3rd Quarter $295 $225 4th Quarter 135 --- Units Issued for Acquisitions 49 --- KMR Distribution 177 $200 Total $656 $425 Acquisitions $426 $60 Expansion 722 673 Total $1,143 $733 % Equity 57% 58% __________________________ Note: All amounts in U.S.
Slide 11: KMI: Consolidation of KMP
KMI: Consolidation of KMP Simplified and Unaudited As of December 31, 2005 (millions) KMI KMI KMP Adjustments (b) Consolidated Current Assets 1,230 1,216 2,446 Investments: Investment in KMP 2,211 (2,211) Goodwill/Other 3,468 1,546 5,014 Other Non-Current Assets 10,467 9,189 19,656 Total Assets $17,
Slide 12: KMI: Consolidation of KMP
KMI: Consolidation of KMP Simplified and Unaudited For the year ended December 31, 2005 (millions) KMI KMI KMP Adjustments (a) Consolidated Operating Revenues $1,587 $9,787 11,374 Operating Costs and Expense (1,107) (8,601) (9,708) Operating Income 480 1,186 1,666 Other Income KMP Equity in Earnings
Slide 13: Balance Sheet Ratios
Balance Sheet Ratios 2006E 2006E 2005 2004 2003 2002 2001 KMP CapEx = $1,583 CapEx = $733 Debt to Capital (a) 56% (b) 53% 52% 52% 54% 51% 46% Debt/EBITDA 3.5X (b) 3.1x 3.2x 3.5x 3.8x 3.7x 3.5x EBITDA/Interest Exp. 5.6X (b) 5.6x 6.3x 6.9x 6.2x 5.5x 4.6x KMI – Standalone Debt to Capital (a) 56% 56% 56
Slide 14: Financial Summary
Financial Summary KMP 5% growth in budgeted declared distribution to $3.28/unit before acquisitions $9 million in excess coverage Finance expansion budget and new acquisitions ~ 60% equity and ~ 40% debt Distributions total $1.28 billion Long-term growth of 8% KMI 12% growth in EPS to $5.00, 16% gro
Slide 15: NVDHOW YaaNIy
NVDHOW YaaNIy