Slide 1: Terminals – Jeff Armstrong
KINDER’ MORGAN Terminals Jeff Armstrong
Slide 2: KMT - 2002
KMT - 2002 (2) Legend Dry Bulk Locations Liquid Locations 2
Slide 3: KMT - 2004
KMT - 2004 (2) (2) (2) (2) (4) (4) (2) (2) (2) (2) (2) (4) (2) Legend Transload Operations Dry Bulk Locations Liquid Locations 3
Slide 4: Liquids Terminals
Liquids Terminals Pasadena Terminal Pasadena, Texas Carteret Terminal Carteret, New Jersey Argo Terminal Argo, Illinois Harvey Terminal Harvey, Louisiana 4
Slide 5: Bulk Terminals
Bulk Terminals Pinney Dock Terminal Ashtabula, Ohio West Memphis Terminal West Memphis, ARkansas Shipyard River Terminal Charleston, South Carolina International Marine Terminal Port Sulphur, Sulphur, Louisiana 5
Slide 6: Throughput - Liquids
Throughput - Liquids Variance 2003 vs 2004 Jan - Dec Jan - Dec Jan - Dec Amt % 2002 2003 2004 Chemical 31,636,912 28,999,370 29,136,619 137,249 0.5% Distillate 135,894,540 155,931,340 170,372,223 14,440,883 9.3% Petroleum 305,335,004 320,328,963 341,928,782 21,599,819 6.7% Fuel Grade Ethanol 3,653,4
Slide 7: Throughput - Bulk
Throughput - Bulk Variance 2003 vs 2004 Jan - Dec Jan - Dec Jan - Dec Amt % 2002 2003 2004 Coal 26,423,424 23,773,778 27,364,801 3,591,023 15.1% Coke 6,093,582 7,120,928 6,499,439 (621,489) -8.7% Cement (Including Clinker) 1,825,676 876,866 1,303,947 427,081 48.7% Fertilizers 1,504,846 4,221,488 3,2
Slide 8: Modal Count
Modal Count Vessels Trucks Railcars Barges Other Loaded 915 1,131,341 79,254 15,907 16,734 Unloaded 2,176 116,843 373,806 13,184 1,314 Total 3,091 1,248,184 453,060 29,091 18,048 8
Slide 9: Financials
Financials Total Total Total Budget 2002 2003 2004 2005 Revenue 428,113 473,555 541,857 581,427 Cost of Sales 4,943 7,507 7,777 6,362 Gross Margin 423,170 466,048 534,080 575,065 Op Exp 197,852 210,499 252,923 263,531 DD&A 30,045 37,072 42,890 47,544 TOTI 11,135 11,049 12,066 13,644 NOI 184,138 207,
Slide 10: Internal & External Growth
Internal & External Growth 2002 2003 2004 2005 Earnings before DD&A 208,963 240,774 263,168 288,168 Growth from prior year 25.94% 15.22% 9.30% 9.50% Internal 7.51% 7.47% 4.49% 9.50% Acquisition 18.43% 7.75% 4.81% 0.00% 10
Slide 11: Carteret New Build Tanks
KINDER” MORGAN Carteret New Build Tanks 01/10/2005 01/10/2005 11
Slide 12: Dakota Bulk
KINDER” MORGAN Dakota Bulk
Slide 13: Colonial Manifold
KINDER” MORGAN Colonial Manifold
Slide 14: Top Customer Breakout
Top Customer Breakout Ansac BASF Top 15 BP Oil Customers CSX 40% Dow Great Lakes ISG Koch / Flint Hills All Others Mosaic (Cargill and IMC) 60% Northville Industries Sempra Shell Tennessee Valley Authority (TVA) 2004 Revenue = $541MM Valero George E Warren Corporation 14
Slide 15: Contract Term Breakout
Contract Term Breakout Contract Breakdown by Total Revenue Liquid and Bulk, All Regions (using January 1, 2005 start date) Under 1 Year 3+ Years 28.8% 33.7% 2 - 3 Years 1 - 2 Years 11.6% 25.9% 15
Slide 16: Revenue by Product Breakout
Revenue by Product Breakout 2005 Budget 2004 27% 26% 41% 40% 18% 21% 6% 8% 5% 8% Petroleum Chemical Coal Coke Other Petroleum Chemical Coal Coke Other 16
Slide 17: US Petroleum Products Supply/Demand Balance
US Petroleum Products Supply/Demand Balance (‘000 BPD) 2002 2003 2004 2005 (EIA est) 2006 (EIA est) Demand Gasoline 8,846 8,932 (+1.0%) 9,057 (+1.4%) (+1.9%) (+2.4%) Distillate 3,775 3,930 (+4.0%) 4,080 (+3.8%) (+2.5%) (+1.3%) Jet 1,613 1,578 (-2.2%) 1,613 (+2.1%) (+2.6%) (+1.9%) Total 14,234 14,440
Slide 18: US Refining Capacity & Inputs
US Refining Capacity & Inputs 324 Refineries 18.6MM BPD capacity 20 Operable Capacity Million Barrels Per Day 18 16 149 Refineries 14 16.9MM BPD capacity 12 Gross Inputs 10 8 6 4 2 0 Ja 1 Ja 3 Ja 5 Ja 7 Ja 9 Ja 1 Ja 3 Ja 5 Ja 7 Ja 9 Ja 1 03 8 8 8 8 8 9 9 9 9 9 0 n- n- n- n- n- n- n- n- n- n- n- n- J
Slide 19: A Look at U.S. Refining Capacity
A Look at U.S. Refining Capacity 1 Data for each year are those reported for Jan 1 the following year. Data for each year are those reported for Jan 1 the following ye ar. Capacities not reported for 1997; values for that year are averages of 1996 and 1998 data. Source: Oil & Gas Journal, December 2
Slide 20: US Regional Refinery Creep
US Regional Refinery Creep Capacity MBPD Increase 1999 2004 MBPD % PAD I 1,691 1,741 50 3 PAD II 3,619 3,526 (93) -2.6 PAD III 7,411 7,882 471 6.4 PAD IV 528 582 54 10.2 PAD V 3,013 3,163 150 5 Total 16,262 16,894 632 3.9 Texas 4,185 4,468 283 6.8 Louisiana 2,600 2,753 153 5.8 California 1,929 2,022
Slide 21: Imports
Imports Imports as Percent of Demand 2002 2003 2004 Gasoline 9.2% 9.9% 10.1% Distillate 7.1% 8.5% 7.9% Jet 6.7% 6.9% 7.0% Source: Oil & Gas Journal, December 20, 1004 21
Slide 22: PAD I Gasoline
PAD I Gasoline U.S. Import Destinations PAD 1 Sources of Supply Other PADs 103MB/D Locally Produced 1,065MB/D Inter PAD Net Receipts 1,580MB/D PAD I Imports 782MB/D Share 782MB/D (2003) 88% of total U.S. Gasoline Product Demand for PAD I 3,216 MB/D (2003); 36% Total U.S. Source: EIA 22
Slide 23: European Gasoline/Diesel Demand
European Gasoline/Diesel Demand 23
Slide 24: US Petroleum Stocks
US Petroleum Stocks (‘000 BPD) 2002 2003 2004 Gasoline 211.5 202.8 206.6 500 ppm & under - 70.7 Distillate 128.6 117.1 115.7 500 ppm & greater - 45.0 Jet 40.5 38.7 39.2 Gasoline Distillate By PAD for 2004 PAD I 55.3 44.1 PAD IA 4.1 8.7 PAD IB 29.6 24.1 PAD IC 21.6 11.3 PAD II 51.8 28.8 PAD III 62.9
Slide 25: Stocks of Gasoline and Distillate
Stocks of Gasoline and Distillate Source: EIA 25
Slide 26: Ethanol/MTBE Production
Ethanol/MTBE Production (‘000BPD) 250 219 200 204 183 168 150 139 133 100 50 0 2002 2003 2004 (Through October) Ethanol MTBE Source: EIA 26
Slide 27: KM Assets
KM Assets 2,090M Fuel Grade Ethanol Combined Capacity 647M Fuel Grade Ethanol 578M Fuel Grade Ethanol 440M Fuel Grade Ethanol (2) (2) (4) (3) (2) Ethanol capacity shown in barrels Legend 425.7M Fuel Grade Ethanol Liquid Locations Product Pipelines Locations 27
Slide 28: U.S. Coal Production
U. S. Coal Production Compounded Annual 1,200 Growth Rate Appalachian -0.76% Interior -1.21% Western 3.68% U.S. Total 1.15% 1,000 800 Million Tons 600 400 200 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 est. Appalachian Total Interior Total Western Total U. S. Total Source: EIA Mon
Slide 29: Domestic Coal Supply Considerations
Domestic Coal Supply Considerations 29
Slide 30: U.S. Coal Imports
U. S. Coal Imports 30,000 26,600 25,000 20,000 Thousand Tons 15,000 10,000 5,000 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 *2004 * Estimate Source: EIA Monthly Production Reports 30
Slide 31: Potential Imports (2004-2010)
Potential Imports (2004-2010) East Coast 11 million tpy currently received by water served utilities Rapid Rail turnaround required Fairless Hills Fairless Hills, PA Import potential as high as 43 million tons Chesapeake Bulk Baltimore, MD Some infrastructure upgrade required Pier IX Newport
Slide 32: KMT's Coal Volumes
KMT’s Coal Volumes 30,000 25,000 20,000 16,670 19,496 Thousand Tons 16,906 20,119 17,405 15,000 10,000 8,219 8,830 7,925 5,000 6,098 5,529 2,472 76 198 662 1,016 0 2000 2001 2002 2003 2004 Imports Exports Transshipped 32
Slide 33: Coke Supply
Coke Supply 70 World Production (1) 60 US Production (2) 50 US Gulf Coast Production (2) 40 30 Worldwide Production (1) 20 North America 63% (Gulf Coast 39%)* 10 South America 12% Europe 7% 0 Africa 3% 1999 2000 2001 2002 2003 Asia 15% (1) Source: Oxbow Carbon * TX, MS, LA (2) Source: Oil & Gas Jour
Slide 34: Fuel Grade Petcoke Demand
Fuel Grade Petcoke Demand World United States Other (1) Storage Other (1) 4% Power 17% 15% 23% Residential 2% Iron & Steel Power 8% Cement 53% 26% Cement Iron & Steel 48% 4% (1) (Lime, Chemical Processes, Paper & Pulp) Source: Jacobs Consultancy 34
Slide 35: Chemical Demand
Chemical Demand Production Increases Import / Export Source: Chemical Week, December 22/29, 2004, Pg. 31 35
Slide 36: Chemical Railcars Shipped
U.S. Chemical Railcar Shipments 4.3% increase in 2004 1,580,000 1,560,000 Chemical Railcars Shipped 1,540,000 1,520,000 1,500,000 1,480,000 1,460,000 1,440,000 1,420,000 1,400,000 1,380,000 2001 2002 2003 2004 36
Slide 37: KMT - 2004
KMT - 2004 66MM barrels of combined capacity Kinder Morgan Terminals – 36.8MM barrels of capacity Kinder Morgan Product Pipelines – 29.2MM barrels of capacity (2) (2) (2) (2) (2) (4) (4) (3) (2) (2) (2) (2) (2) (2) (4) (2) Legend Transload Operations Dry Bulk Locations Liquid Locations Product Pipel