Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Kinder Morgan Energy Partners — 2008 KMP Analyst Conference
26 slides from Kinder Morgan's conference presentation, Jan 24, 2008
Slide 1: Natural Gas Pipelines
ENERGY PARTNERS, L.P. Natural Gas Pipelines Scott Parker President Natural Gas Pipeline Group
Slide 2: Natural Gas Pipelines and Facilities
ENERGY PARTNERS, L.P. KMP Natural Gas Pipelines and Facilities NATURAL GAS PIPELINES NATURAL GAS STORAGE NATURAL GAS PROCESSING ROCKIES EXPRESS PIPELINE IN-SERVICE ROCKIES EXPRESS PIPELINE MIDCONTINENT EXPRESS PIPELINE KM LOUISIANA PIPELINE INDICATES NUMBER OF (2,3,8) FACILITIES IN AREA KM HEADQUART
Slide 3: KMP Natural Gas Pipelines
ENERGY PARTNERS, L.P. KMP Natural Gas Pipelines Texas Intrastates Trailblazer Pipeline Kinder Morgan Interstate Gas Transmission TransColorado Midcontinent Express Pipeline Rockies Express Pipeline Kinder Morgan Louisiana Pipeline 3
Slide 4: Texas Intrastate Pipelines
ENERGY PARTNERS, L.P. Texas Intrastate Pipelines 6,000 miles of pipeline 5 Bcf/d capacity Perryville 123 Bcf on-system storage Carthage 915 MMcf/d processing Waha capacity Katy Henry 250 MMcf/d CO2 treating capacity Kinder Morgan Texas Pipeline KMTP Storage KMTP Gas Processing Kinder Morgan Tejas Pi
Slide 5: Texas Intrastate Pipelines: Continued Growth
ENERGY PARTNERS, L.P. Texas Intrastate Pipelines Continued Growth Expansion of Existing Assets: Completed in 2007: 13 miles of 24” pipeline, $18 million – East Texas Expansion 7 Bcf, $41 million – Markham storage expansion Under Construction in 2008: 63 miles of 24” pipeline, $70 million - Goodrich
Slide 6: Texas Intrastate Pipelines: Continued Growth
ENERGY PARTNERS, L.P. Texas Intrastate Pipelines Continued Growth Growth from Existing Assets: Higher premiums for ratable / swing services, end-user gas sales, and transport Value of storage services continues to increase Rollovers of sales contracts at higher margins providing year on year growth
Slide 7: Trailblazer Pipeline Company
ENERGY PARTNERS, L.P. Trailblazer Pipeline Company Trailblazer 436 Miles of Pipe Wyoming 3 Compressor Locations with 58,000 HP Nebraska Huntsman Max Throughput = 0.878 CheyenneStorage Bcf/d 602 Lincoln 601 Low cost pipeline out of Cheyenne Hub 603 region 106 Long term contracts Denver Colorado 195 K
Slide 8: Kinder Morgan Interstate Gas Transmission (KMIGT)
ENERGY PARTNERS, L.P. Kinder Morgan Interstate Gas Transmission (KMIGT) 4,500 miles of various diameter pipelines Markets: Wyoming LDCs, Industrials, & Ag. In NE, KS, & MO Marketers transporting to mid-continent pipelines Nebraska End Users including Cheyenne Ethanol Plants Hub Growth: Color
Slide 9: KMIGT Growth Projects
ENERGY PARTNERS, L.P. KMIGT Growth Projects… New LDC Connection - Colorado Lateral is a new pipeline along the front range. KMIGT has a long term binding transport agreement and is moving forward to construct a $29 million pipeline In-service October 1st, 2008 Potential of future expansions to
Slide 10: TransColorado Pipeline
ENERGY PARTNERS, L.P. TransColorado Pipeline 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 10
Slide 11: TransColorado Growth Projects
ENERGY PARTNERS, L.P. TransColorado Growth Projects… Completed 250,000/day expansion for northbound capacity from Blanco to REX Pipeline $68 million capital investment Fully subscribed by ConocoPhillips In-service Jan 2008 Potential: New Producer Interconnects for example, Exxon Piceance Creek Trans
Slide 12: Midcontinent Express Pipeline
ENERGY PARTNERS, L.P. Midcontinent Express Pipeline Waynoka Plant Enogex West Enogex East Project Facilities Summary Diameter Miles Zone Capacity From - To 30” 40 1 850,000 Enogex to 802 42” 262 1 1,400,000 802 to End of Zone 1 36” 197 2 1,000,000 Begin Zone 2 to Transco Total 499 12
Slide 13: Midcontinent Express Pipeline (MEP)
ENERGY PARTNERS, L.P. Midcontinent Express Pipeline (MEP) 50/50 Joint Venture with ETC Key driver – Increasing production in Texas and Oklahoma Kinder Morgan coordinating construction and will operate MEP to Construct: • 40 miles of 30”, 257 miles of 42” and 197 miles of 36” • 70,900 of horsepow
Slide 14: Midcontinent Express Pipeline (MEP)
ENERGY PARTNERS, L.P. Midcontinent Express Pipeline (MEP) Key Items: Major material acquired within budget (pipe, compression & valves) Agreements executed with construction contractors In-service date for entire system projected March 1, 2009 Schedule going forward: • Draft EIS – Feb ‘08 • Final
Slide 15: Rockies Express Pipeline (REX)
ENERGY PARTNERS, L.P. Rockies Express Pipeline (REX) OVER- ROCKIES EXPRESS PIPELINE THRUST CAPACITY REX REX EAST LEASE IN-SERVICE 1,500,000 Dth/d - 2/2008 1,600,000 Dth/d - 12/2008 1,800,000 Dth/d - 7/2009 Opal Kanda Wamsutter Cheyenne Lebanon Meeker Greasewood Clarington PIPELINE – 1,679 MILES COMP
Slide 16: REX West Spreads
ENERGY PARTNERS, L.P. REX West Spreads In-service Jan 12th up to the ANR Interconnect 16
Slide 17: Project Overview – Rockies Express
ENERGY PARTNERS, L.P. Project Overview – Rockies Express REX West – Construction is winding down: Commenced Interim Service Deliveries into NNG, NGPL and ANR on January 12, 2008 • 1.4 Bcf of capacity Expect to Commence Full Service on REX West to include PEPL (Audrain County, Mo.) in mid Februar
Slide 18: REX East Detail
ENERGY PARTNERS, L.P. REX East Detail 2008 Construction: FERC approval anticipated in Spring 2008. Commencement of construction soon after FERC approval received. Partial in-service date for REX East Dec 31st, 2008 (to Clarington). Full 1.8 Bcf in-service (all compression) June 1st, 2009. Material a
Slide 19: REX Future Opportunities
ENERGY PARTNERS, L.P. REX Future Opportunities… Significant additional growth potential via other opportunities to be captured… Storage and Park and Loan Service Development and sale of storage off the pipeline Interruptible and short haul service Hub service at various key locations Extensions an
Slide 20: Proposed REX Northeast Express
ENERGY PARTNERS, L.P. Proposed REX Northeast Express 1.0 Bcf/d Expansion 1.5 Bcf/d Extension Hub Service 20
Slide 21: Proposed REX / NGPL Chicago Project
ENERGY PARTNERS, L.P. Proposed REX / NGPL Chicago Project 2121
Slide 22: Kinder Morgan Louisiana Pipeline LLC
ENERGY PARTNERS, L.P. Kinder Morgan Louisiana Pipeline LLC Texas Louisiana CGT Delivery Point 340 Transco Delivery Point ( ( TETCO Delivery Point ( ANR Delivery Point ( ( ( ( Texas Gas Delivery Point FGT Delivery Point Cypress Delivery Point ( ( Trunkline Delivery Point Lake Charles LNG Lafayette 30
Slide 23: Kinder Morgan Louisiana Pipeline
ENERGY PARTNERS, L.P. Kinder Morgan Louisiana Pipeline Capital - $510 MM - Construction has commenced!! Project Description NGPL Lateral 1, 597,500 Dth/d Rayne Lateral Rayne Lateral (Leg 1) 2,130,000 Dth/d 137 miles 42” Sabine Pass Facility 2,130,000 Dth/d In-service Jan 1st, 2009 NGPL Lateral
Slide 24: Kinder Morgan Louisiana Pipeline
ENERGY PARTNERS, L.P. Kinder Morgan Louisiana Pipeline Initial Project Capacity is Sold Out… Executed Precedent Agreement with Chevron USA MDQ: 1,697,500 Dth Negotiated Rate: Fixed for term of contract Term: 20 years Executed Precedent Agreement with Total Gas & Power North America, Inc MDQ: 1,697,5
Slide 25: Kinder Morgan Louisiana Pipeline
ENERGY PARTNERS, L.P. Kinder Morgan Louisiana Pipeline Beyond the Initial Project… Future Growth Potential: Continue discussions with multiple parties to potentially expand the capacity of the pipeline (with LNG upstream supply schedules extending discussions have continued) Potential for an addit
Slide 26: KMP Gas Pipeline Group: The Future
ENERGY PARTNERS, L.P. KMP Gas Pipeline Group The Future… Base business growth on existing assets… Re-contract existing pipeline and storage capacity Capture margin growth on existing capacity Growth opportunities from new projects focused on… Midcontinent Express, Rockies Express and KM Louisiana Pi
Kinder Morgan Energy Partners — 2008 KMP Analyst Conference on 6ix