Kinder Morgan, Inc. · NYSE:KMI

Kinder Morgan — Kinder Morgan Energy Partners — 2010 KMP Analyst Conference

22 slides from Kinder Morgan's conference presentation, Jan 28, 2010

  1. Slide 1: Products Pipelines

    ENERGY PARTNERS, L.P. Products Pipelines Tom Bannigan President Products Pipelines Group

  2. Slide 2: KMP Products Pipelines Assets

    ENERGY PARTNERS, L.P. KMP Products Pipelines Assets PRODUCTS PIPELINES PRODUCTS PIPELINES TERMINALS TRANSMIX FACILITIES Cochin (2,3,4) INDICATES NUMBER OF FACILITIES IN AREA KM HEADQUARTERS Pacific WCT Miles of Pipe ~ 8,900 Pacific Terminals – 52 2 Tank Capacity 2 CALNEV 2 Terminal ~ 32 MMbbls 4 3 2

  3. Slide 3: Segment Financial Overview

    ENERGY PARTNERS, L.P. Segment Financial Overview (a) ($ in millions) 2008 2009 2010 Plan Income Before DD&A $ 571.5 $ 635.1 $ 698.6 Sustaining Capital (b) (47.5) (42.5) (45.0) Distributable Cash Flow $ 524.0 $ 592.6 $ 653.6 Percent change over prior year 1.3% (c) 13.1% 10.3% ________________________

  4. Slide 4: 2009 Volumes/Markets

    ENERGY PARTNERS, L.P. 2009 Volumes/Markets Total volumes off 2.8% vs. 2008 – off 2.5% adjusted for leap year (EIA reported 3.1% national decline)  Gasoline (including CFPL ethanol) up .4%, Diesel down 9.3%, Jet Fuel down 5.1%  Increases on Plantation Pipe Line partially offset decreases on West Co

  5. Slide 5: Expanding to Meet Customer Demand: Recently Completed Projects

    ENERGY PARTNERS, L.P. Expanding to Meet Customer Demand Recently Completed Projects Project Description In Service Cost ($MM) Pacific Tucson Terminal Convert tanks for ethanol and transmix storage August 2009 $ 1.0 Concord Station Pump Upgrade pumps to increase throughput May 2009 $ 2.5 West Coast T

  6. Slide 6: Refined Products Demand Pressure

    ENERGY PARTNERS, L.P. Refined Products Demand Pressure PRESSURE POINTS  Ethanol mandates  CAFE standards – proposed increase of 4.3% to model year 2016 (a)  Driving demographics  “Vehicle Miles” essentially flat 2009 over 2008 but off 3.4% to 2007  Product prices  “Green” marketing PACE OF CHA

  7. Slide 7: Kinder Morgan Response

    ENERGY PARTNERS, L.P. Kinder Morgan Response RESPONSE  Index and cost of service filings to ameliorate volume declines  Ethanol/biodiesel storage and blending  Blend percentage increases  Year round blending  Pursue pipeline opportunities for transporting biofuels  Export/Import opportunities

  8. Slide 8: Historical Demand and 2010-11 EIA Outlook

    ENERGY PARTNERS, L.P. Historical Demand and 2010-11 EIA Outlook U.S. PRODUCT CONSUMPTION EIA Demand Outlook 10 2009 2010E 2011E 9 8 Mogas 0.1% 0.6% 0.7% MILLION BBLS PER DAY 7 Distillate -8.4% 2.1% 2.0% 6 Jet Fuel -8.1% 1.1% 1.2% 5 Total -3.1% 1.0% 1.1% 4 3 2 Refined Product Pipelines – MM bbls 1 20

  9. Slide 9: Historical FERC Tariff Index Regime

    ENERGY PARTNERS, L.P. Historical FERC Tariff Index Regime PPI FG PPI FG + 1.3% 2000 – 2005 2006 - 2011 FERC review in 2010 for five year period beginning in 2011 $1.50 $1.45 $1.40 7.60% $1.35 -1.50% (a) $1.30 Theoretical Growth of $1 5.17% $1.25 4.32% $1.20 6.15% $1.15 $1.10 3.63% $1.05 3.17% $1.00

  10. Slide 10: Refined Products Revenue Attribution

    ENERGY PARTNERS, L.P. Refined Products Revenue Attribution 2009 Revenue 2010 Plan Revenue $813 million $898 million $162 $294 $343 $168 36% 20% 38% 19% 44% 43% $387 $357 Interstate Intrastate Terminal Interstate Intrastate Terminal 2009-2010 Revenue Growth Rates Interstate +$49MM/17% Intrastate +$6M

  11. Slide 11: Refined Products Revenues

    ENERGY PARTNERS, L.P. Refined Products Revenues Includes Pacific, Calnev, Central Florida Pipeline, Plantation (51%), West Coast and Southeast Terminals and Transmix 1000 Compound annual growth rate 6.3% 800 43% 42% 44% 600 39% 40% 400 61% 60% 58% 56% 57% 200 0 2006 2007 2008 2009 2010P Pipelines Te

  12. Slide 12: 2010 Refined Product Pipelines Revenue Growth

    ENERGY PARTNERS, L.P. 2010 Refined Product Pipelines Revenue Growth (a) ($ in millions) $600 $34.2 $575.5 $575 $550 $6.8 $20.8 $525 $513.7 $500 $475 $450 2009 Expansion/ Volume Rate Adjust. 2010 Plan Acquisition Growth & Other (b) __________________________ (a) SFPP, CALNEV and CFPL (pipeline and as

  13. Slide 13: NGL Assets

    ENERGY PARTNERS, L.P. NGL Assets Combined represent $62.9 million Income before DD&A or 9% of 2010 segment Plan  Cochin  1,900 mile pipeline serving 5 propane terminals and petrochemical complex (ExxonMobil, BP, Nova) in Sarnia/Corunna, Ontario  2009 propane volume down 4.7% and revenue down 2.0%

  14. Slide 14: Positioned for Growth

    ENERGY PARTNERS, L.P. Positioned for Growth PRODUCTS PIPELINES Major Refining Hubs Cochin TRANSMIX FACILITIES Biofuel marine E/P Transport Pacific imports WCT Terminal Terminal acquisition Ethanol acquisition opportunities Distribution opportunities Pacific CALNEV Increased Pacific ethanol blend rat

  15. Slide 15: Expanding to Meet Customer Demand: Near Term Projects

    ENERGY PARTNERS, L.P. Expanding to Meet Customer Demand Near Term Projects Project Description In Service Cost ($MM) Pacific Travis Air Force Base Three 150k bbl tanks, 16 inch pipeline and facilities 2011 $ 47.5 Colton Terminal Expansion Add two 80k bbl tanks and two lane loading rack 2010 $ 19.2 C

  16. Slide 16: Biofuels: California Renewable Fuel Opportunities

    ENERGY PARTNERS, L.P. Biofuels California Renewable Fuel Opportunities  California ethanol blend rate increased from 5.7% to 10% (incremental 40,000 barrels per day of ethanol)  KM California terminals began 10% Ethanol blending on January 11, 2010  Over $15 MM improvements to offloading, storage

  17. Slide 17: Biofuels: Pacific Northwest Biofuels Opportunities

    ENERGY PARTNERS, L.P. Biofuels Pacific Northwest Biofuels Opportunities  Mandates  Washington: 2008 Requirement for Average 2% of volume ethanol and biodiesel  Oregon: 2008 Requirement for E-10; B-2 requirement effective October, 2009  KM Infrastructure  Seattle: E-10 blending instituted Septem

  18. Slide 18: Biofuels: Southeast Ethanol

    ENERGY PARTNERS, L.P. Biofuels Southeast Ethanol  Central Florida Pipeline  Tampa/Orlando markets – approximately 20,000 B/D of ethanol demand at 10% blend rate  10% ethanol blends required by the state January 1, 2011  350,000 BBLS of ethanol storage  Storage and blending fully subscribed by m

  19. Slide 19: Biofuels: Transportation of Biofuels by Pipeline

    ENERGY PARTNERS, L.P. Biofuels Transportation of Biofuels by Pipeline  Batching ethanol on CFPL began December 2008  No operational or integrity issues – Monitor/1Q 09 smart pig analysis  2009 transported 3,700 bpd; 2010 Plan transport volume – 6,000 bbls/day  Evaluating other pipeline segments

  20. Slide 20: Biofuels: Approved Ethanol and Biodiesel Projects

    ENERGY PARTNERS, L.P. Biofuels Approved Ethanol and Biodiesel Projects Eugene, Willbridge and Biofuel Volumes Handled Harbor Island Million bbls $20 MM Capex 2007 2008 2009 2010P 11.8 18.7 23.2 29.0 Southeast Terminals Reno, Phoenix $46 million Capex Biofuel Revenues and Tucson Compound Annual Growt

  21. Slide 21: Rate Case Update

    ENERGY PARTNERS, L.P. Rate Case Update  Global Complaint Case – O96-2 Compliance Filing (February 2008) and further rehearing requests remain pending at FERC  Updated reserve (4Q 2009) to reflect interest on reparations and related legal expenses  Completed settlements in SFPP cases:  FERC appro

  22. Slide 22: Rate Case Update – Cont'd

    ENERGY PARTNERS, L.P. Rate Case Update – Cont’d  Developments in subsequent cases:  Completed briefing to FERC on Initial Decision in OR-03 North/Oregon complaint cases  Initial Decision issued in OR-03 East/West complaint cases in June 2009; briefed to FERC  Initial Decision issued in December

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