Kinder Morgan, Inc. · NYSE:KMI

Kinder Morgan — Kinder Morgan 2013 Analyst Conference

26 slides from Kinder Morgan's conference presentation, Jan 30, 2013

  1. Slide 1: Financial Review

    Financial Review Kimberly Dang Chief Financial Officer

  2. Slide 2: Agenda

    Agenda KMP  2013 budget — Distributable cash flow — Segment earnings before DD&A and LP net income — Quarterly profile — Budget assumptions — Sustaining capital — Growth capital — Financing plans  Credit ratios and liquidity EPB  2013 budget — Distributable cash flow — Earnings before DD&A and LP

  3. Slide 3: KMP

    KINDER/MORGAN KMP

  4. Slide 4: KMP 2013 DCF Budget

    KMP 2013 DCF Budget (a) (millions, except per unit) 2013 2012 Change Budget Actual $ % Distributable cash flow Net income $2,680 $2,222 $458 21% DD&A (b) 1,377 1,252 125 10 Book / cash tax difference 29 (2) 31 n/m Express / Endeavor 1 3 (2) (67) Sustaining capex (c) (339) (285) (54) 19 Total distrib

  5. Slide 5: KMP 2013 Income Budget

    KMP 2013 Income Budget (a) (millions, except per unit) 2013 2012 Change Budget Actual $ % Segment earnings before DD&A (EBDA) Natural Gas Pipelines $2,120 $1,374 $746 54% CO2 1,396 1,326 70 5 Terminals 839 752 87 12 Products Pipelines 791 703 88 13 Kinder Morgan Canada 212 229 (17) (7) Total segment

  6. Slide 6: KMP 2013 Budgeted Quarterly Profile

    KMP 2013 Budgeted Quarterly Profile (a) ($ in millions, except per unit) 1Q 2Q 3Q 4Q Year Total Segment EBDA w/JV DD&A (b) 2013B 24% 24% 25% 27% $5,444 2012 24% 22% 26% 28% $4,560 2011 24% 23% 26% 27% $3,810 DCF/unit (c) 2013B 26% 21% 24% 29% $5.37/unit 2012 27% 21% 25% 27% $5.07/unit 2011 26% 22% 2

  7. Slide 7: KMP 2013 Budget Assumptions

    KMP 2013 Budget Assumptions  Business Segments: — Natural Gas Pipelines • Full-year 2012 / partial-year 2013 dropdowns and expansions, partially offset by FTC Rockies divestitures • Cost savings — CO2 • Oil price on unhedged oil volumes in CO2 ~$91.68/Bbl • Increase in hedged oil price / CO2 contra

  8. Slide 8: KMP 2013 Sustaining Capital Budget

    KMP 2013 Sustaining Capital Budget (a) ($ in millions) 2013 2012 Budget Actual Change Sustaining capital Natural Gas Pipelines $119 $88 $31 CO2 17 12 5 Terminals 113 110 3 Products Pipelines 54 52 2 Kinder Morgan Canada 27 17 10 Corporate 9 6 3 Total sustaining capital $339 $285 $54 ________________

  9. Slide 9: KMP 2012 vs. 2013B Growth Capital

    KMP 2012 vs. 2013B Growth Capital ($ in millions) 2013 2012 Budget Actual Expansion capital Natural Gas Pipelines $748 $196 CO2 632 443 Terminals 559 625 Products Pipelines 472 247 Kinder Morgan Canada 59 31 Total expansion capital 2,470 1,542 Contributions to JVs 187 205 Subtotal 2,657 1,747 Acquis

  10. Slide 10: KMP 2013 Growth Capital Budget

    KMP 2013 Growth Capital Budget ($ in millions) Total Expansion Equity Growth Capital Contributions Acquisitions Capital Expansion capital Natural Gas Pipelines $748 $141 $1,730 $2,619 CO2 632 - - 632 Terminals 559 - 150 709 Products Pipelines 472 46 - 518 Kinder Morgan Canada 59 - - 59 Total growth

  11. Slide 11: KMP 2013 Budget Financing Plans

    KMP 2013 Budget Financing Plans ($ in millions) 2013 Budget Equity Secondary offerings / ATM $1,325 Units to KMI – dropdown 105 KMR dividends 626 Total equity $2,056 Debt Long-term debt issuance $2,200 Increase in revolver (a) 223 Proportionate share of debt assumed (b) 558 Debt maturity in December

  12. Slide 12: KMP Credit Ratios and Liquidity

    KMP Credit Ratios and Liquidity (a) ($ in millions) Credit Ratios 2013 Budget 2012 2011 2010 2009 2008 Net debt (b) / EBITDA 3.7x 3.7x 3.6x 3.7x 3.8x 3.4x EBITDA / Interest Exp. 5.9x 6.6x 6.5x 6.1x 6.4x 6.2x Revolver Capacity (c) Long-term Debt Maturities (d) (e) Committed revolving credit facility

  13. Slide 13: EPB

    KINDER/MORGAN EPB

  14. Slide 14: EPB 2013 DCF Budget

    EPB 2013 DCF Budget (a) (millions, except per unit) 2013 2012 Change Budget Actual $ % Distributable cash flow Net income $624 $598 $26 4% DD&A (b) 209 176 33 19 Other book / cash difference 1 3 (2) n/m Sustaining capex (c) (40) (46) 6 (13) Total distributable cash flow 794 731 63 9 General partner'

  15. Slide 15: EPB 2013 Income Budget

    EPB 2013 Income Budget (a) (millions, except per unit) 2013 2012 Change Budget Actual $ % Earnings before DD&A $1,215 $1,173 $42 4% DD&A (202) (175) (27) 15 G&A (91) (102) 11 (11) Interest (298) (289) (9) 3 Non-controlling interest - (9) 9 n/m Net income 624 598 26 4 GP share (210) (141) (69) 49 Lim

  16. Slide 16: EPB 2013 Budgeted Quarterly Profile

    EPB 2013 Budgeted Quarterly Profile (a) ($ in millions, except per unit) 1Q 2Q 3Q 4Q Year EBDA w/JV DD&A (b) 2013B 26% 23% 24% 27% $1,222 2012 24% 23% 26% 27% $1,174 DCF/unit (c) 2013B 28% 21% 22% 29% $2.67/unit 2012 25% 23% 25% 27% $2.82/unit Earnings/unit 2013B 30% 21% 22% 27% $1.89/unit 2012 25%

  17. Slide 17: EPB 2013 Budget Assumptions

    EPB 2013 Budget Assumptions  Natural Gas business drivers: — Pipelines • Full-year of 2012 dropdowns of Cheyenne Plains and remaining 14% interest in CIG • Elba Express reversal / expansion — LNG • Partial-year from planned 2013 GLNG dropdown 17

  18. Slide 18: EPB 2013 Sustaining and Growth Capital Budgets

    EPB 2013 Sustaining and Growth Capital Budgets (a) ($ in millions) 2013 2012 Budget Actual Change Sustaining capital (b) Natural Gas Pipelines $37 $43 $(6) Corporate 3 3 - Total sustaining capital $40 $46 $(6) 2013 2012 Budget Actual Growth capital Expansion $158 $65 Contributions to JVs - - Subtota

  19. Slide 19: EPB 2013 Budget Financing Plans

    EPB 2013 Budget Financing Plans ($ in millions) 2013 Budget Equity Secondary offerings / ATM $270 Units to KMI – dropdown 35 Total equity $305 Debt Long-term debt issuance - Increase in revolver (a) 291 Debt maturity in September (88) Incremental debt $203 $508 __________________________ (a) Exclude

  20. Slide 20: EPB Credit Ratios and Liquidity

    EPB Credit Ratios and Liquidity (a) ($ in millions) Credit Ratios 2013 Budget 2012 Net debt (b) / EBITDA 3.9x 3.9x EBITDA / Interest Exp. 3.8x 3.7x Revolver Capacity (c) Long-term Debt Maturities (d) Committed revolving credit facility $1,000 2013 $88 Less: 2014 $71 Revolver borrowing - 2015 $750 Le

  21. Slide 21: KMI

    KINDER/MORGAN KMI

  22. Slide 22: KMI 2013 Budgeted Cash Available to Pay Dividends

    KMI 2013 Budgeted Cash Available to Pay Dividends (a) ($ in millions) 2013 2012 Change Budget Actual $ % KMP distributions to KMI From ownership of general partner interest $1,729 $1,454 $275 19% On KMP units owned by KMI 146 120 26 22 On KMR shares owned by KMI 82 73 9 12 Total KMP distributions to

  23. Slide 23: KMI 2013 Budgeted Quarterly Profile

    KMI 2013 Budgeted Quarterly Profile (a) ($ in millions, except per share) 1Q 2Q 3Q 4Q Year Cash available to pay dividends 2013B 30% 18% 24% 28% $1,632 2012 21% 22% 26% 31% $1,411 2011 30% 19% 22% 29% $866 Earnings per share 2013B 25% 23% 25% 27% $1.09/sh 2012 26% 24% 25% 25% $1.08/sh 2011 n/m n/m n

  24. Slide 24: KMI Credit Ratio and Liquidity

    KMI Credit Ratio and Liquidity (a) Credit Ratio 2013 Budget Net debt (b) / consolidated EBITDA 5.0x Revolver Capacity (c) Long-term Debt Maturities (d) (e) Committed revolving credit facility $1,750 2013 $30 Less: 2014 $207 Revolver borrowing (1,035) 2015 $250 Letters of credit (77) 2016 $917 Excess

  25. Slide 25: 2013 Summary

    2013 Summary  KMI Budget — Declare $1.57 / share in dividends (12% growth) — Year-end 2013 Debt / EBITDA of 5.0x  KMP Budget — Declare $5.28 / unit in LP distributions (6% growth) • Total distributions to LPs and GP of $3.8 billion — $34 million in excess coverage — Finance expansion budget approx

  26. Slide 26: Kinder Morgan

    KINDER/MORGAN

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