Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Kinder Morgan Energy Partners — 2009 KMP Analyst Conference
32 slides from Kinder Morgan's conference presentation, Jan 29, 2009
Slide 1: Terminals
ENERGY PARTNERS, L.P. Terminals Jeff Armstrong President Terminals Group
Slide 2: Kinder Morgan Terminal Locations
ENERGY PARTNERS, L.P. Kinder Morgan Terminal Locations (2) (2) (2) (3) (2) (3) (2) (2) (2) (2) (2) (2) (2) (2) (2) (4) (4) (2) (4) (3) (2) (2) (2) (2) (2) (2) (2) Legend (4) (3 (7) (3) (6) (3) Dry Bulk Locations Product Pipelines Locations (2) (2) Ferro Operation Locations Liquid Locations Petcoke O
Slide 3: Historical Growth
ENERGY PARTNERS, L.P. Historical Growth 2008 2009 2002 2003 2004 2005 (1) 2006 (1) 2007 (1) Actual (1) Budget Earnings before 208,963 240,774 263,168 318,140 396,858 442,330 538,836 615,789 DD&A Growth from 25.94% 15.22% 9.30% 20.89% 24.74% 11.46% 21.82% 14.28% prior year Internal 7.51% 7.47% 4.49%
Slide 4: Financials
ENERGY PARTNERS, L.P. Financials 2008 Actual 2009 Budget Revenue (net) $1,139,380 $1,207,743 Opex $580,423 $569,020 EBITDA $558,957 $638,723 Book Income Tax $20,123 $22,934 Earnings Before DD&A $538,834 $615,789 Expansion Capital $305,000 $166,000 Acquisitions $21,025 $100,000 4
Slide 5: 2009 Revenue Mix
ENERGY PARTNERS, L.P. 2009 Revenue Mix Total Revenue = $1,207 48% guaranteed Total Liquids 36% Total Bulk 64% Liquids Revenue by Bulk Revenue by Contract Term Contract Term Under 1 Year 3+ Under 3+ 23% Years 1 Year Years 38% 38% 40% 1-2 years 2-3 1-2 2-3 22% Years years Years 11% 13% 15% 5
Slide 6: 2009 Revenue by Commodity
ENERGY PARTNERS, L.P. 2009 Revenue by Commodity Liquids Revenue Bulk Revenue Breakout Breakout SODA ASH BREAK BULK AGGREGATE 3% 2% 2% SALT OTHER LIQUIDS 3% CEMENT & CLINKER 2% ANIMAL FATS 1% OIL FIELDS VEGETABLE OILS 0% OTHER BULK 1% 4% ALCOHOL 1% CHEMICALS 9% COAL ETHANOL 17% 19% 13% ORES/METALS BU
Slide 7: Capacity Additions - Liquids
ENERGY PARTNERS, L.P. Capacity Additions - Liquids Capacity First Full Year EBITDA Project In Service (barrels) Product CAPEX (M) Pit 9 (19 Tanks) Pasadena Terminal Q1 2,409,000 Gasoline / Diesel $107.6 Perth Amboy Terminal (9 Tanks) Q1 1,287,703 Gasoline / Diesel $69.2 Galena Park Terminal (8 Tanks
Slide 8: Capacity Additions - Bulk
ENERGY PARTNERS, L.P. Capacity Additions - Bulk Capacity First Full Year Project In Service (tons per year) Product CAPEX (M) (1) EBITDA Columbus Terminal 1Q 900,000 Scrap, Pig Iron, HBI $8.3 Pier 10, Newport News Terminal 1Q 6,000,000 Coal $68.7 2008 Fairless Hills Terminal – Facility Domes 3Q 120,
Slide 9: New Acquisitions 2008
ENERGY PARTNERS, L.P. New Acquisitions 2008 Wilmington, NC (Chemserve (Chemserve)) Stockton and San Diego, CA (LPC Packaging) 2009 EBITDA - $1,581K 2009 EBITDA - $1,175K • Purchase Price - $11.5M • 1.1 million barrels of capacity • 40 tanks (10,000 bbl – 100,000 bbl) • Handles petroleum and specialt
Slide 10: Bulk Tonnage
ENERGY PARTNERS, L.P. Bulk Tonnage 2008 Budget 2009 Coal 34,326,931 38,571,126 Petcoke 14,827,741 14,691,384 Cement (Including Clinker) 530,943 385,050 Fertilizers 5,948,401 6,713,790 Salt 3,433,735 3,133,562 Ores/Metals (Bulk) 24,298,394 23,720,299 KMBT Tonnage Ores/Metals (Break-Bulk) 6,676,353 6,
Slide 11: Liquids Throughput
ENERGY PARTNERS, L.P. Liquids Throughput 2008 Budget 2009 Chemical 23,363,114 23,542,246 Distillate 173,806,058 215,208,078 Petroleum 356,175,946 383,868,108 Fuel Grade Ethanol 31,110,105 52,674,501 Other 2,490,714 1,868,628 KMLT Throughput Vegetable Oils 6,011,320 6,613,784 (bbls) Animal Fats 642,8
Slide 12: Clean Petroleum Products
ENERGY PARTNERS, L.P. Clean Petroleum Products 12
Slide 13: U.S. Stocks
ENERGY PARTNERS, L.P. U.S. Stocks __________________________ * Contango markets pushing demand for tankage Source: Platts OPR Extra, January 20, 2009 13
Slide 14: U.S. Stocks
ENERGY PARTNERS, L.P. U.S. Stocks __________________________ Source: Platts OPR Extra, January 20, 2009 14
Slide 15: U.S. Refining Capacity & Crude Runs
ENERGY PARTNERS, L.P. U.S. Refining Capacity & Crude Runs 15.089 12.165 14.337 15.24 15.67 17.6 __________________________ Source: Turner, Mason & Company 15
Slide 16: U.S. Refinery Construction Outlook through 2015
ENERGY PARTNERS, L.P. U.S. Refinery Construction Outlook through 2015 Estimated Production Increases (Thousands of Barrels per Day) Total Year Gasoline Distillates Other Production 2009 42 22 (24) 40 2010 239 226 95 560 2011 96 174 (21) 249 2012 15 15 10 40 2013-2015 30 27 8 65 Total 422 464 68 954
Slide 17: Non U.S. Refinery Construction Outlook through 2015
ENERGY PARTNERS, L.P. Non U.S. Refinery Construction Outlook through 2015 Estimated Production Increases (Thousands of Barrels per Day) Residual Other Total Year Gasoline Distillates Fuel Products Production 2009 677 813 166 448 2,104 2010 321 379 (111) 135 724 2011 397 573 (65) 141 1,046 2012 542 7
Slide 18: Regional Crude Capacity Changes
ENERGY PARTNERS, L.P. Regional Crude Capacity Changes __________________________ Source: Turner, Mason & Company 18
Slide 19: U.S. Gasoline Imports
ENERGY PARTNERS, L.P. U.S. Gasoline Imports (Thousands of Barrels per Day) 2005 2006 2007 2008 Short-Haul 396 355 387 358 (Canada, US Virgin Islands, Venezuela, Trinidad & Tobago, Netherlands Antilles, Mexico, Aruba) Long-Haul 717 789 779 750 (United Kingdom, Netherlands, France, Russia, Italy, Belg
Slide 20: U.S. Gasoline Demand and Imports
ENERGY PARTNERS, L.P. U.S. Gasoline Demand and Imports (MMBPD) __________________________ Source: Turner, Mason & Company 20
Slide 21: KM Response
ENERGY PARTNERS, L.P. KM Response Total tankage increase from December 2007 47,537,246 December 2008 54,163,011 Built two new ship docks (Galena Park and Staten Island) in 2008 2,025,000 tankage under construction (2009 – 2010) Increased Domestic and International Supply = More Tankage 21
Slide 22: Renewable Fuels
ENERGY PARTNERS, L.P. Renewable Fuels 22
Slide 23: Ethanol / Biofuels Mandate: 2007 Law
ENERGY PARTNERS, L.P. Ethanol / Biofuels Mandate: 2007 Law Year Billion Gallons MB/D 2007 LAW 2007 LAW 2007 -- -- 2008 9 587 2009 11.1 724 2010 12.95 845 2011 13.95 910 2012 15.2 992 2015 20.5 1,337 2022 36 2,340 __________________________ Source: PIRA 28th Annual Retainer Client Seminar 23
Slide 24: Ethanol Industry Characterized by Imbalance
ENERGY PARTNERS, L.P. Ethanol Industry Characterized by Imbalance U.S. Ethanol Production Capacity vs. Demand 2007 through 2011 15 57 Forecast 14 53 Actual 13 49 Billion Liters/Year_ Billion Gallons/Year_ 12 45 11 42 10 38 9 34 8 30 7 27 Demand 6 23 Production Capacity 5 19 Ma 07 Ma 07 Ju 7 Se 07 No
Slide 25: Kinder Morgan Ethanol Handling Locations
ENERGY PARTNERS, L.P. Kinder Morgan Ethanol Handling Locations Average Ethanol Capacity KMT ETOH 2006 2007 2008 2006 2007 2008 Storage (Mbbls) 2,500 3,038 3,543 5 billion gallons 6.5 billion gallons 10.25 billion gallons Throughput (Mbbls) 22,184 25,624 31,110 326,157 BPD 424,005 BPD 668,623 BPD 25
Slide 26: KMT Response to Ethanol Market
ENERGY PARTNERS, L.P. KMT Response to Ethanol Market 2009 Move from proposal to construction of expanded rail and unit train facilities for Ethanol in California, Gulf Coast and Southeast. Expanding ethanol positions for both domestic and import markets in production and consumption regions. C
Slide 27: Petcoke / Sulfur
ENERGY PARTNERS, L.P. Petcoke / Sulfur 27
Slide 28: Increased Production and Use of Heavy Crude
ENERGY PARTNERS, L.P. Increased Production and Use of Heavy Crude Despite drop in crude price, oil slate still getting heavier – 1.4Mbbls/d of incremental heavy refining capacity forecast to be added by 2015 (b) Leverage strong Gulf Coast position into the Midwest and Canada North American Sulfur Ba
Slide 29: Increased Production and Use of Heavy Crude
ENERGY PARTNERS, L.P. Increased Production and Use of Heavy Crude Despite drop in crude price, oil slate still getting heavier – 1.4Mbbls/d of incremental heavy refining capacity forecast to be added by 2015 (b) Leverage strong Gulf Coast position into the Midwest and Canada Heavier, sour crude pr
Slide 30: Coal
ENERGY PARTNERS, L.P. Coal 30
Slide 31: Coal – Imports / Exports / Domestic
ENERGY PARTNERS, L.P. Coal – Imports / Exports / Domestic U.S. Coal Imports/Exports (a) Our terminals are well-positioned on coasts and inland waterways to handle import coal, 120 U.S. Coal Imports U.S. Coal Exports 111 export coal or domestic shipments 100 100 93 86 75 80 Coal Imports 80 68 57 50 5
Slide 32: KM Response
ENERGY PARTNERS, L.P. KM Response Invested capital to handle both exports and imports (SRT/Pier IX) Contracts secured with minimums Domestic business still very strong Growth opportunity on the domestic side – 2.5 mm ton - Cora Powder river coal to utilities by way of Mississippi river I
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