Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Canoe Financial 3rd Annual CEO Series Conference (September 2012)
24 slides from Kinder Morgan's conference presentation, Sep 21, 2012
Slide 1: Canoe Financial
Canoe Financial September 21, 2012 Ian Anderson President, Kinder Morgan Canada
Slide 2: Forward-Looking Statements / Non-GAAP Financial Measures
Forward-Looking Statements / Non-GAAP Financial Measures This presentation contains forward-looking statements. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts. In particular, statements, express or implied, concerning fut
Slide 3: Kinder Morgan – Four Ways to Invest: KMP, KMR, EPB & KMI
Kinder Morgan – Four Ways to Invest: KMP, KMR, EPB & KMI 572MM Public Kinder Morgan, Inc. (55%) Float KMI (C-corp) 1.037 billion shares (a) Cash Market Equity $39.2B (a) dividends to 293MM Management/ Debt 11.1B (b) shareholders (28%) Original S/H Enterprise Value $50.3B 2012E Dividend per Share $1.
Slide 4: Tremendous Asset Footprint
Tremendous Asset Footprint 3rd largest energy company in North America with combined enterprise value of approximately $100 billion (a) Largest natural gas network in U.S. — Own an interest in / operate over 62,000 (b) miles of natural gas pipeline — Connected to every important U.S. natural gas
Slide 5: Our Strategy – Stay the Course
Our Strategy – Stay the Course Same Strategy Since Inception Focus on stable fee-based assets that are core to North American energy infrastructure — Market leader in each of our business segments Control costs — It’s the investors’ money, not management’s – treat it that way Leverage asset fo
Slide 6: 16 Years of Consistent Growth
16 Years of Consistent Growth Total Distributions (GP + LP) ($MM) KMP Annual LP Distribution per Unit (b) $4.98 $3,500 $5.00 $4.61 $3,118 $4.40 GP LP $4.50 $4.20 $3,000 $2,737 $4.02 $4.00 $2,450 (a) $3.48 $2,500 $2,171 $3.50 $3.13 $3.26 $2.87 $1,877 $3.00 $2.63 $2,000 $2.44 $1,469 $2.50 $2.15 $1,500
Slide 7: Promises Made, Promises Kept
Promises Made, Promises Kept Promises Made Promises Kept KMP Budgeted KMP Actual LP Distribution: LP Distribution: 2000: $1.60 2000: $1.71 2001: $1.95 2001: $2.15 2002: $2.40 2002: $2.435 2003: $2.63 2003: $2.63 2004: $2.84 2004: $2.87 2005: $3.13 2005: $3.13 KMP achieved 2006: $3.28 2006: $3.26 LP
Slide 8: KMP's Diversified Cash Flow
(KMP/KMR) KMP’s Diversified Cash Flow 2012 Pro Forma Natural Gas Pipelines ~60% interstate Business Mix (a) ~40% intrastate (c) CO2 Products Pipelines S&T ~55% pipelines ~45% associated terminals / transmix CO2 Oil Natural Gas Production (b) 7% CO2 Pipelines ~27% CO2 transport and sales 20
Slide 9: How We Have Done: KMP Returns on Capital
How We Have Done: KMP Returns on Capital 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Segment ROI (a): Products Pipelines 11.9% 11.8% 12.8% 12.9% 12.4% 11.6% 11.8% 13.2% 12.5% 13.4% 13.7% 12.9% Natural Gas Pipelines 13.3 15.5 12.9 13.5 14.0 15.5 16.7 17.5 16.9 14.0 11.9 11.9 CO2 27.5
Slide 10: Trans Mountain Expansion
KINDER/MORGAN Trans Mountain Expansion
Slide 11: Trans Mountain – West Coast Connected
Trans Mountain – West Coast Connected 400,000 350,000 300,000 Trans Mountain Barrels per day Offshore 250,000 History 200,000 Washington 150,000 State 100,000 British 50,000 Columbia Korean War - 1954 1957 1960 1963 1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 160,
Slide 12: Trans Mountain Expansion Project
Trans Mountain Expansion Project Open Season results announced April 12, 2012 Current Capacity: 300,000 Bpd Expansion up to 750,000 Bpd Approx. 510,000 Bpd Binding 20 yr contracts Scheduled In-service 2017 Twin Pipelines Existing Pipeline 265,000 Bpd Proposed New Line 490,000 Bpd App
Slide 13: New Infrastructure Challenges
New Infrastructure Challenges Firstly pipeline safety Commercial support Emergency response capabilities Environmental concerns current, future First Nations engagement Local interests risk vs. benefits Upstream/downstream concerns 13
Slide 14: Trans Mountain Expansion Schedule
Trans Mountain Expansion Schedule 14
Slide 15: TMEP Economic Benefits
TMEP Economic Benefits Project construction expenditures: Approximately $4 billion – 99 percent of this amount will be spent in Canada on goods and services Expenditure estimated to lead to increased Gross Domestic Product (GDP) in Canada of approximately $3.5 billion, labour income of approxima
Slide 16: TMEP Listening
TMEP Listening Initial meetings held with federal, provincial and municipal governments and First Nations to introduce the proposed expansion project and listen to feedback Strategic meetings with ENGOs who are influencers in different sectors: clean technology, research and conservation, climat
Slide 17: Kinder Morgan Terminals - Canada
Kinder Morgan Terminals - Canada Vancouver Wharves Terminals - Vancouver Acquired by KM in 2007 under 40 year lease from BC Government Handles copper, lead, & zinc concentrates; sulphur, agricultural products; diesel/jet fuel. Four ship docks and 500 rail car spots Connectivity to CNR, CPR a
Slide 18: Appendix
KINDER/MORGAN Appendix
Slide 19: Natural Gas Pipelines Segment
(KMP/EPB/KMI) Natural Gas Pipelines Segment Well-positioned connecting key natural gas resource plays with major demand centers Long-term Growth Drivers: Highly visible, attractive dropdown inventory at KMI via El Paso pipeline assets Natural gas the logical fuel of choice — Cheap, abundant, dom
Slide 20: Products Pipelines Segment
(KMP) Products Pipelines Segment Well-located with origin in refinery / port hubs and terminus in population centers Long-term Growth Drivers: Development of shale play liquids infrastructure — Condensate transportation, processing and storage services from Eagle Ford • Condensate processing facil
Slide 21: Terminals Segment
(KMP) Terminals Segment Well-located in refinery / port hubs and inland waterways Long-term Growth Drivers: $1.6 billion of identified major projects Newbuild and expansion of export coal and petcoke terminals (IMT, Houston, Whiting) Expansions and higher rates at well- located, high-connectiv
Slide 22: CO2 Segment
(KMP) CO2 Segment Own and operate best source of CO2 for EOR Long-term Growth Drivers: Strong demand for CO2 — Expansion of CO2 source fields and pipelines • Several large, long-term CO2 S&T contracts executed — Higher rates and better terms on new/renewed CO2 S&T contracts — St. Johns CO2 field a
Slide 23: Kinder Morgan Canada Segment
(KMP) Kinder Morgan Canada Segment Sole oil pipeline from Oilsands to West Coast / export markets Long-term Growth Drivers: Expand Oilsands export capacity to West Coast and Asia — TMPL is lowest-cost option for expansion to West Coast — Following successful open season, major expansion under way
Slide 24: Kinder Morgan Canada
KINDER: MORGAN CANADA
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