Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Kinder Morgan Energy Partners — 2010 KMP Analyst Conference
32 slides from Kinder Morgan's conference presentation, Jan 28, 2010
Slide 1: Natural Gas Pipelines
ENERGY PARTNERS, L.P. Natural Gas Pipelines Steve Kean and Tom Martin President Natural Gas Pipeline Group
Slide 2: Overview
ENERGY PARTNERS, L.P. Overview Market Environment Transport spreads have flattened Storage spreads remain strong Processing margins expected to be roughly equivalent to 2009 performance Value Proposition Strong asset base with secure cash flows supported by long term contracts Limited expo
Slide 3: KMP Natural Gas Pipelines and Facilities
ENERGY PARTNERS, L.P. KMP Natural Gas Pipelines and Facilities NATURAL GAS PIPELINES NATURAL GAS STORAGE NATURAL GAS PROCESSING GAS TREATERS (KMP) FAYETTEVILLE EXPRESS PIPELINE (2,3,8) INDICATES NUMBER OF FACILITIES IN AREA KM HEADQUARTERS Trailblazer REX REX TransColorado KMIGT 2 FEP MEP KMTejas KM
Slide 4: Financial Targets 2010
ENERGY PARTNERS, L.P. Financial Targets 2010 '09 - '10 2005 2006 2007 2008 2009 2010 Change EBDDA 451,579 501,103 548,383 738,860 825,388 921,536 96,148 Sustaining Capex (25,244) (27,431) (29,927) (29,853) (22,676) (24,568) (1,892) DCF 426,335 473,672 518,456 709,007 802,712 896,968 94,256 Note: EBD
Slide 5: Contracted Capacity and Term
ENERGY PARTNERS, L.P. Contracted Capacity and Term Contracted Avg. Term Capacity Remaining Texas Intrastates Transport 3.4 bcf/d 6 yr, 6 mo Sales 2.6 bcf/d 2 yr, 0 mo Purchases 3.0 bcf/d 2 yr, 0 mo Storage 137 bcf 2 yr, 7 mo KMIGT Storage 10.0 bcf 4 yr, 11 mo Transport 0.9 bcf/d 4 yr, 7 mo TransColo
Slide 6: Asset Summaries
ENERGY PARTNERS, L.P. Asset Summaries 6
Slide 7: Rockies Express Pipeline (REX)
ENERGY PARTNERS, L.P. Rockies Express Pipeline (REX) REX 1,679 miles of 36” and 42” pipeline Originates in Meeker, CO and terminates in Clarington, OH Transports Rocky Mountain production to premium Northeast Markets Capacity = 1.8 Bcf/d Almost completely sold out under long term contracts
Slide 8: REX Future Opportunities
ENERGY PARTNERS, L.P. REX Future Opportunities… Growth Opportunities… 200,000 Dth/d Meeker to Cheyenne Expansion Fully Subscribed Leg one, in-service December 2009 (ahead of schedule and below original cost estimate) Leg two, in-service mid year 2010 Park and Loan Service Interruptible a
Slide 9: Kinder Morgan Interstate Gas Transmission (KMIGT)
ENERGY PARTNERS, L.P. Kinder Morgan Interstate Gas Transmission (KMIGT) KMIGT 4,500 miles of various diameter pipelines Markets: LDCs, Industrials, & Ag. in NE, KS, & MO Marketers transporting to mid-continent pipelines End Users including Ethanol Plants Growth Storage Capacity Tra
Slide 10: KMIGT Growth Projects
ENERGY PARTNERS, L.P. KMIGT Growth Projects… Huntsman Storage Expansion 10,000 Dth/d incremental firm storage service Demand charges will be invoiced pursuant to long-term binding contract with Atmos Phase I construction completed December 2009 Phase II construction to be completed late 3r
Slide 11: TransColorado Gas Transmission
ENERGY PARTNERS, L.P. TransColorado Gas Transmission TransColorado 301 miles of 22” & 24” pipeline Originates at Greasewood, CO Terminates at Blanco, NM Bidirectional Flow Capacity North - 650 MDth/d Capacity South Phase I - 150 MDth/d Phase II - 425 MDth/d FERC Regulated 11
Slide 12: TransColorado Growth Projects
ENERGY PARTNERS, L.P. TransColorado Growth Projects… Recontracting Challenges (average term remaining 4 yrs. 9 months) Basis spreads across the pipeline have contracted significantly Aggregation of gathering and processing has shifted gas supply from “along pipe” to “north end of pipe” Drill
Slide 13: Trailblazer Pipeline Company
ENERGY PARTNERS, L.P. Trailblazer Pipeline Company Trailblazer 436 Miles of Pipe Wyoming 3 Compressor Locations with 58,000 HP Nebraska Max Throughput = 0.878 Huntsman CheyenneStorage Bcf/d 602 Lincoln 601 Low cost pipeline out of Cheyenne Hub 603 region 106 Long term contracts Denver Colo
Slide 14: Trailblazer Pipeline Update
ENERGY PARTNERS, L.P. Trailblazer Pipeline Update Settlement obligation to file Rate Case by December 1, 2009 Discussions with customers began, received 90 day extension of filing requirement Reasonable Settlement opportunities within 90 day period Minimal revenue impact in 2010 14
Slide 15: Midcontinent Express Pipeline (MEP)
ENERGY PARTNERS, L.P. Midcontinent Express Pipeline (MEP) Project Facilities Summary Enogex Diameter Miles Zone Capacity From - To Waynoka Plant 30” 40 1 850,000 Enogex to 802 42” 266 1 1,800,000 802 to End of Zone 1 36” 201 2 1,200,000 Begin Zone 2 to Transco Enogex Total 507 West Enogex Ea
Slide 16: MEP Capacity
ENERGY PARTNERS, L.P. MEP Capacity Zone 1 (MMDth) Zone 2 (MMDth) NGPL/HPL to CGT 641 April 24, 2009 0 Phase 1 (Delhi) 1,147 May 1, 2009 0 Phase 2 (T85) 1,200 Aug 1, 2009 946 Aug 1, 2009 .8 Design Approval Zone 1 1,432 Oct 9, 2009 946 Zone 2 (a) 1,432 1,000 Jan 7, 2010 Expansion #1 1,532 June 2010 1,
Slide 17: MEP Expansion Progress and Commercial Opportunities
ENERGY PARTNERS, L.P. MEP Expansion Progress and Commercial Opportunities MEP Expansion # 1 and #2 Capacity is fully contracted on both expansions Construction has begun on both expansions Construction contracts are fixed price lump sum contracts Major materials have been procured Projecte
Slide 18: Kinder Morgan Louisiana Pipeline Project
ENERGY PARTNERS, L.P. Kinder Morgan Louisiana Pipeline Project 18
Slide 19: Kinder Morgan Louisiana Pipeline Opportunities
ENERGY PARTNERS, L.P. Kinder Morgan Louisiana Pipeline Opportunities Working on opportunities to contract additional services Multiple interconnections – with additional facilities may be able to capture opportunities between major interstate pipelines and storage Potential interconnections wi
Slide 20: Construction Environment Vastly Improved
ENERGY PARTNERS, L.P. Construction Environment Vastly Improved Construction contractors are now willing to provide lump sum fixed price terms (due to the competitive environment) Construction workforce is more experienced Large diameter pipe – pricing is down about 35% from early 2009 and fair
Slide 21: Fayetteville Express Pipeline (FEP)
ENERGY PARTNERS, L.P. Fayetteville Express Pipeline (FEP) Pipeline Length: 185 miles Pipe Diameter: 42” Initial Capacity: 2.0 Bcf/d 21
Slide 22: FEP Update and Construction Progress
ENERGY PARTNERS, L.P. FEP Update and Construction Progress Total of 1.85 Bcf/day capacity sold. Have 0.15 Bcf/day available available for sale Southwestern: 1,200,000 Dth/d, 10 yrs (capacity ramps up) Chesapeake: 375,000 Dth/d for 10 yrs BP: 125,000 Dth/d for 10 yrs XTO: 150,000 Dth/d 12 y
Slide 23: Texas Intrastate Pipelines
ENERGY PARTNERS, L.P. Texas Intrastate Pipelines 6,000 miles of pipeline Over 5 Bcf/d capacity 145 Bcf of storage 685 MMcf/d processing capacity 180 MMcf/d CO2 treating capacity Combination of fee- for-service, and purchase/sale activity Texas Railroad Commission regulated - - market-b
Slide 24: Texas Intrastate Pipelines
ENERGY PARTNERS, L.P. Texas Intrastate Pipelines Key Attributes Well positioned assets Built to serve Houston/Beaumont area - largest natural gas market in the world Connected to essentially all major gas consumers in the area Gas supply available from major basins across Texas and both Texa
Slide 25: Texas Intrastate Pipelines: Near Term Growth Prospects
ENERGY PARTNERS, L.P. Texas Intrastate Pipelines Near Term Growth Prospects Large asset footprint provides real and continued opportunities for Expansion Capital Investment 2010 Budget Full year (vs. 3 mos. in ’09) of Treating Business 262,000 MMBtu/d of capacity reservations from producers in
Slide 26: Keys to Success in 2010
ENERGY PARTNERS, L.P. Keys to Success in 2010 Continue to roll over sales and transport contracts at equal or better terms Maintain field supply volumes at current levels (plus West Beaumont) Favorable optimization spreads across the pipeline (Waha, TxOk vs HSC) Favorable storage spreads P
Slide 27: Texas Intrastate Pipelines: Near Term Growth Prospects
ENERGY PARTNERS, L.P. Texas Intrastate Pipelines Near Term Growth Prospects Other Near Term Project Opportunities Not Reflected In Budget: Additional supply lines, outside of the JV, to access Eagle Ford Shale gas Supply lines to access Haynesville/Bossier Shale gas in East Texas Other inves
Slide 28: Eagle Ford Shale
ENERGY PARTNERS, L.P. Eagle Ford Shale Overview Major acreage holders: Anadarko, Common, Conoco, El Paso, EOG, Exxon, Hilcorp, Laredo, Lewis, Murphy, PetroHawk, Pioneer, St. Mary, Swift, TXCO, Anadarko Competition: Enterprise, DCP, ETC, Regency Rich vs. lean areas being delineated by drilling
Slide 29: CrossTex Treating Acquisition
ENERGY PARTNERS, L.P. CrossTex Treating Acquisition Largest provider of contracted CO2 treating services in the USA Over 200 amine plants and over 50 dew point control (JT) plants which can be relocated Operations in 14 states Fee Based Contracts with over 130 customers • Contracts are typic
Slide 30: GMX Endeavor Gathering Investment Update
ENERGY PARTNERS, L.P. GMX Endeavor Gathering Investment Update Acquired 40% interest in Endeavor Pipeline (~100 miles of pipelines) for $36 million, effective November 1st GMX operated acreage dedicated to Endeavor GMX continues to operate Endeavor KM gets 80% of Endeavor cash flow (pre-cape
Slide 31: Growth Opportunities in 2010, 2011 and Beyond
ENERGY PARTNERS, L.P. Growth Opportunities in 2010, 2011 and Beyond 2010 Full year effect of new projects (REX, KMLP, MEP) New growth continues with MEP expansions, REX Expansion and Dayton Dayton Storage to be placed into service 2011 and beyond - long term/future growth Shale Gas Mainl
Slide 32: ENERGY PARTNERS, L.P.
ENERGY PARTNERS, L.P. KINDER/MORGAN
Kinder Morgan Energy Partners — 2010 KMP Analyst Conference on 6ix