Kinder Morgan, Inc. · NYSE:KMI

Kinder Morgan — Kinder Morgan 2014 Analysts Conference

26 slides from Kinder Morgan's conference presentation, Jan 29, 2014

  1. Slide 1: Appendix

    KINDER/MORGAN Appendix

  2. Slide 2: Toll Road-like, Fee-based Business Model

    Toll Road-like, Fee-based Business Model Natural Gas Products Kinder Morgan Terminals CO2 Pipelines Pipelines Canada (KMP) (KMP) (KMP/EPB/KMI) (KMP) (KMP) – Interstate & LNG: take or pay – Take or pay, minimum – S&T: primarily minimum – Intrastate: ~75% take or pay (a) – Essentially no  Volume Secu

  3. Slide 3: Incidents & Releases: Liquids Pipeline ROW

    Incidents & Releases Liquids Pipeline ROW Liquids Pipeline Incidents per 1,000 Miles (a) 1.0 0.8 Incidents per 1,000 Miles 0.6 0.4 0.45 0.39 0.29 0.24 0.21 0.2 0.08 0.08 - - 2006 2007 2008 2009 2010 2011 2012 2013 KM Incidents Industry 3-yr Avg (b) Industry 2010 Avg __________________________ Note:

  4. Slide 4: Incidents & Releases: Liquids Pipeline ROW (cont'd)

    Incidents & Releases Liquids Pipeline ROW (cont’d) Liquids Pipeline Release Rate (a) Barrels per billion barrel miles 50 40 30 20 15.5 13.1 10 6.0 2.5 - 0.01 0.11 0.67 - 2006 2007 2008 2009 2010 2011 2012 2013 KM Incidents Industry 3-yr Avg (b) Industry 2010 Avg __________________________ Note: KM t

  5. Slide 5: Incidents & Releases: Natural Gas Pipeline ROW

    Incidents & Releases Natural Gas Pipeline ROW Natural Gas Pipeline Incidents Rate (a) 1.0 Incidents per 1,000 Miles 0.8 0.6 0.4 0.32 0.30 0.30 0.27 0.27 0.2 0.13 0.13 0.04 - 2006 2007 2008 2009 2010 2011 2012 2013 KM Incidents Industry 3-yr Avg (b) 2005 Industry Avg __________________________ Note:

  6. Slide 6: KM Lost-time Incident Rate (DART)

    KM Lost-time Incident Rate (DART) 5 Lost-time injuries per 200k hours worked 4.45 4 3 2 1.70 1.20 1.19 1.20 1 0.85 1.06 0.82 0.70 0.63 0.40 0.71 0.33 0.09 - - Natural Gas CO2 Products Pipelines Terminals KM Canada Pipelines KM Rate (3-yr Avg) KM Rate (12-mo) Industry Avg 6

  7. Slide 7: OSHA Recordable Incident Rate

    OSHA Recordable Incident Rate 7 6.35 6.45 OSHA Recordable Incidents per 6 200k Hours Worked 5 4 3 2.60 2.50 2.50 2.30 2.50 2 1.50 1.50 1.20 1 2.11 1.48 1.53 1.46 1.66 1.20 0.69 0.57 0.69 - - Natural Gas CO2 Products Pipelines Terminals KM Canada Pipelines KM Rate (3-yr Avg) KM Rate (12-mo) Industry

  8. Slide 8: Vehicle Incident Rate

    Vehicle Incident Rate 5 Recordable Vehicle Accidents 4 per 1MM miles 3 2.23 2.23 2 1.80 1.80 1 0.67 0.72 0.94 0.70 0.36 0.66 0.63 0.28 0.43 0.42 - Natural Gas CO2 Products Pipelines Terminals (a) KM Canada Pipelines KM Rate (3-yr Avg) KM Rate (12-mo) Industry Avg __________________________ (a) Indus

  9. Slide 9: EPB Has Strong Contracted Cash Flow Profile

    EPB Has Strong Contracted Cash Flow Profile Contract Expiration Volume (MDth/d) (a) 2019 and 2014 2015 2016 2017 2018 Beyond Total CIG 270 428 1,689 191 178 1,855 4,612 WIC 265 589 121 225 528 1,926 3,653 Cheyenne Plains 7 465 58 - 8 340 878 SNG 24 52 1,536 417 679 1,426 4,133 Elba Express - - - - -

  10. Slide 10: KMP CO2 Asset Summary

    KMP CO2 Asset Summary KMP Remaining CO2 Reserves Interest Location Deliverability Operator McElmo Dome 45% SW Colorado 20+ years KMP Doe Canyon 87% SW Colorado 20+ years KMP Bravo Dome 11% NE New Mexico 10+ years Oxy KMP Capacity Pipelines Interest Location (MMcf/d) Operator McElmo Dome to Cortez 50

  11. Slide 11: Natural Gas Backlog – Additional Projects Detail

    Natural Gas Backlog – Additional Projects Detail TGP – Uniondale Project  Capacity: 34 MDth/d  Capital: $9.0 MM  Estimated In-Service: November 1, 2014  Project Scope: Modifications at Station 321  Commercial Benefit: Additional capacity from Station 219 pool to Uniondale  Rate: Negotiated  A

  12. Slide 12: Natural Gas Backlog – Additional Projects Detail

    Natural Gas Backlog – Additional Projects Detail SNG – FGT / TECO Interconnect  Capacity: 7 MMcf/d  Capital: $4.1 MM  Estimated In-Service: June, 2014  Project Scope: — New Zone 3 interconnect with FGT — 1.3 miles of 8” pipe and new measurement station  Commercial Benefit: Enables further servi

  13. Slide 13: Natural Gas Backlog – Additional Projects Detail

    Natural Gas Backlog – Additional Projects Detail EPNG – Washington Ranch Expansion Project Uinta Basin Piceance  Capacity: Increases operational capacity by Basin Anadarko Basin 4 Bcf COLORADO NEVADA UTAH  Capital: $7.6 MM  CALIFORNIA ARIZONA Blanco Expected In-Service Date: February 2015 San Jua

  14. Slide 14: Natural Gas Backlog – Additional Projects Detail

    Natural Gas Backlog – Additional Projects Detail NGPL – Silver Bullet Storage Optimization Project  Capacity: 5.0 Bcf incremental working gas  Capital (KM): $12.5 MM  In-Service: 2014 - 2015  Project Scope: — Four work locations • Sayre • Columbus Junction • Keota • New Compressor Station 206A 

  15. Slide 15: Natural Gas Backlog – Additional Projects Detail

    Natural Gas Backlog – Additional Projects Detail MEP – Entergy Interconnect and Transport  Capacity: 180 MDth/d  Capital (KM): $3.6 MM  In-Service: February 2014  Project Scope: — New interconnect with Entergy Ouachita Power Plant near Perryville, Louisiana  Commercial Benefit: — Low cost gas s

  16. Slide 16: Natural Gas Backlog – Additional Projects Detail

    Natural Gas Backlog – Additional Projects Detail Midstream – West Clear Lake Cushion Conversion  Capacity: 4 Bcf of storage capacity  Capital: $12.7 MM  Expected In-Service Date — 2013 (1 well) — 2014 (2 wells) — 2015 (1 well)  Project Scope: Drill four storage wells  Commercial Benefit — Incre

  17. Slide 17: KMP & EPB Current Cost of Capital Calculation

    KMP & EPB Current Cost of Capital Calculation KMP Cost of Capital Calculation EPB Cost of Capital Calculation Annualized KMP Annualized EPB 4Q 2013 Unit Price 4Q 2013 Unit Price Distribution 12/31/13 Distribution 12/31/13 Equity Equity Yield on LP units $ 5.44 ÷ $ 80.66 = 6.7% Yield on LP units $ 2.

  18. Slide 18: Explanation of KMP Return Calculations

    Explanation of KMP Return Calculations Formula Notes Segment Segment Distributable Cash Flow Return on Investment = before Certain Items (a) Average Total Investment (c) Total Segment KMP Distributable Cash Flow Return on Investment = before Certain Items (b) Average Total Investment (c) Total Distr

  19. Slide 19: Explanation of KMP Return Calculations (Cont'd)

    Explanation of KMP Return Calculations (Cont’d) Formula Notes Gross PP&E Investments (a) Calculation of Goodwill Total Investment: Gross intangibles (excluding amortization) Plus: Asset write-offs / retirements Cumulative environmental reserves Legal reserves / expenditures (b) Cumulative cash spent

  20. Slide 20: KMP Use of Non-GAAP Financial Measures

    KMP Use of Non-GAAP Financial Measures KMP The non-generally accepted accounting principles ("non-GAAP") financial measures of distributable cash flow before certain items (both in the aggregate and per unit), segment earnings before depreciation, depletion, amortization and amortization of excess c

  21. Slide 21: EPB Use of Non-GAAP Financial Measures

    EPB Use of Non-GAAP Financial Measures EPB The non-generally accepted accounting principles, or non-GAAP, financial measures of distributable cash flow before certain items, both in the aggregate and per unit, and earnings before depreciation, depletion, amortization, or DD&A, and certain items, are

  22. Slide 22: KMI Use of Non-GAAP Financial Measures

    KMI Use of Non-GAAP Financial Measures KMI The non-generally accepted accounting principles, or non-GAAP, financial measure of cash available to pay dividends is included in this presentation. This non-GAAP financial measure should not be considered as an alternative to a GAAP measure such as net in

  23. Slide 23: KMP GAAP Reconciliation

    KMP GAAP Reconciliation ($millions) 2014B 2013 2014B 2013 KMP Consolidated DCF Excluding Certain Items (a) Total Distributions Net income per GAAP income statement $ 3,082 $ 3,281 LP distributions per GAAP cash flow statement $ 1,516 Certain items (net of minority interest) (33) (570) Difference due

  24. Slide 24: EPB GAAP Reconciliation

    EPB GAAP Reconciliation ($millions) 2014B 2013 2014B 2013 EPB Consolidated DCF Excluding Certain Items (a) Debt Ratios Net income per GAAP income statement $ 568 $ 610 Long-term debt (before unamortized discounts) $ 4,179 Certain items (net of minority interest) 1 5 Notes payable & current maturitie

  25. Slide 25: KMI GAAP Reconciliation

    KMI GAAP Reconciliation ($millions) 2014B 2013 2014B 2013 Cash Available to Pay Dividends EBITDA Excluding Certain Items Income from continuing operations $ 2,390 $ 2,696 KMP EBITDA Excluding Certain Items $ 5,895 $ 5,165 DD&A 2,040 1,806 EPB EBITDA Excluding Certain Items 1,198 1,113 Amortization o

  26. Slide 26: Investor Relations Contacts

    Investor Relations Contacts Institutional Investors / Sell-side Analysts David Michels VP Finance & IR for KM, CFO of EPB (713) 369-9895 david_michels@kindermorgan.com Peter Staples Director Investor Relations (713) 369-9221 peter_staples@kindermorgan.com Retail Investors / Brokers Peter Staples Dir

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