Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Investor Presentation (April 2021)
64 slides from Kinder Morgan's investor presentation, Apr 8, 2021
Slide 1: Southern Natural Gas Customer Working Group
Southern Natural Gas Customer Working Group April 8, 2021 1:30 p.m. CST
Slide 2: Welcome
Welcome Tracy Minter Scheduling Representative Customer Working Group Coordinator
Slide 3: Agenda
Agenda • Survey Results • DART Prioritization List • Departmental Updates & Open Forum – Commercial/Marketing – Contracts Administration – Gas Control – Scheduling • Next Steps
Slide 4: Survey Results
Survey Results Commercial/Marketing Scheduling • Pipeline updates • Winter Overview • Fuel updates (Summer rates) • SNG Segment Restrictions • Imbalance trading • Pipeline Conditions Report • OFO breakdown by level and Available capacity • Entitlement Reports Contracts Administration • Segmentation
Slide 5: Prioritization List Status
Prioritization List Status Screen Status as of April 2021 Status as of April 2021 Request Description/Question Topic Area (If provided) WebEx WebEx We would like SNG to provide a graphical pipe display within Estimated Completion DART which will show the path of Scheduling In Progress 3rd Quarter 20
Slide 6: Completed
Completed Request: Change Segment 400 name from Gwinville North to Pickens to Gwinville
Slide 7: Completed
Completed Scheduled Qty Report Enhancement
Slide 8: In Progress: Graphical Pipe
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Slide 9: Commercial Update
Commercial Update Lisa Guthrie and Jerry Nelson Account Managers
Slide 10: Commercial Organization
Commercial Organization Carl Haga Alan Barksdale Chris Triplett Vice President – Commercial Director - Account Svc Director -Commercial Contract Admin Office: 205.325.7544 Office: 205.325.7162 Office: 205.325.3778 Carl_Haga@kindermorgan.com Alan_Barksdale@kindermorgan.com Chris_Triplett@kindermorgan
Slide 11: SNG Pipeline Updates
SNG Pipeline Updates • April 1st Fuel approved filings for SNG and EEC • EEC fuel based on 10 months of data ending 12/31/2020 • FERC approved EEC to change annual fuel filing date from June 1st to April 1st • SNG seasonal transportation fuel (increase) • EEC annual transportation (decrease and incr
Slide 12: SNG Fuel Tracker
SNG Fuel Tracker • SNG Shipper meeting in Sept. 2019 provided a presentation on the fuel tracker. • At 2019 Shipper meeting SNG stated we are considering filing a tariff update to use estimated fuel volumes and estimated throughput (vs. actuals) • This may help reduce the volatility of fuel rates •
Slide 13: SNG Approved Fuel for April 1, 2021
SNG Approved Fuel for April 1, 2021 Transportation Fuel Zone 0 3.50% Zone 1 3.50% Zone 2 4.27% Zone 3 5.16% Intrazone 1-1, 2-2, 3-3 1.13% Backhaul .16% Seamless firm service Shipper also pays EEC fuel 1.38%North to South 0.48% South to North Storage CSS & ISS Fuel Injection/ Withdrawal 1.16% SNG and
Slide 14: Using Trades to Resolve Imbalances
Using Trades to Resolve Imbalances •Imbalances may be traded with another shipper who has an imbalance •in the opposite direction, or •in the same direction •Process •Navigate in IDart: Flowing Gas Imbal Trd (and Stor Trans) Imbal Trd (Stor Transfer) •No longer mandatory to post imbalance for tr
Slide 15: Summary of Operational Flow Orders
Summary of Operational Flow Orders
Slide 16: OFO Type 3 Defined
OFO Type 3 Defined •Daily Market Demand Exceeds Capacity •Daily Flows in Excess of Entitlements are not Acceptable •Daily Entitlements = Scheduled Deliveries + Available No-Notice (greater of after Scheduling or after Allocations) •Specific Delivery PIN or Group of Delivery PINs
Slide 17: OFO Type 3 Has 3 Levels
OFO Type 3 Has 3 Levels •Level 1 – Correction to Flow is Needed •Tolerance = Greater of 500 Dth or 5% of Daily Entitlement •Penalty = $10/Dth taken over Entitlement + Tolerance •Notification = 24 Hours Prior to Gas Day via Email
Slide 18: OFO Type 3 Has 3 Levels (cont'd)
OFO Type 3 Has 3 Levels (cont’d) • Level 2 – Prompt Correction to Flow is Needed – Tolerance = Greater of 200 Dth or 2% of Daily Entitlement – Penalty = $15 + Highest Regional Daily Average Price/Dth taken over Entitlement + Tolerance • Highest Regional Daily Average Price = For the applicable flow
Slide 19: OFO Type 3 Has 3 Levels (cont'd)
OFO Type 3 Has 3 Levels (cont’d) • Level 3 – Immediate Correction to Flow is Needed – Tolerance = Greater of 200 Dth or 2% of Daily Entitlement – Penalty = $25 + 2X Highest Regional Daily Average Price/Dth taken over Entitlement + Tolerance • Highest Regional Daily Average Price = For the applicable
Slide 20: OFO Type 3 Checks Prior to Billing
OFO Type 3 Checks Prior to Billing • SNG Performs Numerous Tariff-based Checks within each OFO Group before Assessing Penalties – Group Check – Operator Check – Nomination Agent Check – Shipper Check – PIN Check
Slide 21: Commercial Open Forum
Southern Natural Gas Company, L.L.C. Commercial Open Forum
Slide 22: Contracts Administration Update
Contracts Administration Update Shari Jones Contract Administrator Sr II
Slide 23: Agency
Agency • Approximately 200 Agency Agreements are set to expire 4/30/21 • To extend an existing agency arrangement, copy the existing agency, change the dates and submit the new agency • The other party to the agency agreement must approve the new submitted agency
Slide 24: How to copy an existing agency
How to copy an existing agency • Open the Agency folder • Open the Maintain/Approve/Terminate Agency Agreement screen
Slide 25: How to copy an existing agency cont'd
How to copy an existing agency cont’d • Click Principals for Company and click Retrieve • Highlight the agency to copy • Right click and select Copy Agency Agreement
Slide 26: How to copy an existing agency cont'd
How to copy an existing agency cont’d • Input the Start Date and End Date of the new Agency Agreement. If you don’t want the agency to have an End Date, input 12/31/49 • Click Save and Close
Slide 27: How to copy an existing agency cont'd
How to copy an existing agency cont’d • Go back to the Maintain/Approve/Terminate Agency Agreement screen • Highlight the Submitted agency, right click and select Maintain/Approve Business Functions • Right click and select Approve • The new Agency Agreement will display in Word • Print the new Agen
Slide 28: Approve Agency
Approve Agency • The Principal must now Approve by following the same steps above • If the Principal doesn’t have DART access, print the Agency Agreement and send to the Principal for hardcopy execution • Once executed, send the signed agreement to #sngcontractmgmt@kindermorgan.com and the agreement
Slide 29: Contract Brief Summary Report
Contract Brief Summary Report • Excel report that provides detailed contract information for all storage and transportation contracts including capacity release replacement contracts and PAL • Report can be run to include the contracts covered in an Agency Agreement • Since the report is in Excel, t
Slide 30: To run the report
To run the report • Click on the Contracts folder • Click on Contract Brief/Summary Report • Enter the desired criteria and click the Report button
Slide 31: Examples
Examples Southern Natural Gas Company, L.L.C. a Kinder Morgan operated company H 6- 5 CtretBriefReport 877179 [Compatibility Mode] - Excel ?7@-o.ox HOME INSERT PAGELAYOUT FORMULAS = DATA _-—s REVIEW Ss VIEW-—Ss TEAM Jones, Sharon P (Shari) » [1 From Access [3 Es Ts 2) Connections ea [E Flash Fill E-
Slide 32: Contract Dates and MDQ Varies
Contract Dates and MDQ Varies
Slide 33: Examples: Replacement Contracts
Examples Replacement Contracts Released/ Available Quantity Point Detail
Slide 34: Examples: Park and Loan
Examples Park and Loan Agent Report including Principal Contracts
Slide 35: Segment Report
Segment Report •Displays Shipper’s in-the-path quantity at the beginning of each segment and at the end of each segment for all nominatable firm transportation contracts •Displays both forward-haul rights and back-haul rights •Released capacity is subtracted from the rights displayed on the report
Slide 36: To run the report
To run the report • Click on the Contracts folder • Click on Segment Capacity • Enter the Effective Date and click the Retrieve button • Report includes Principal Shippers capacity when Agent retrieves report • Default setting is to display by Segment
Slide 37: To run the report
To run the report • Report view may be changed by moving any column to or from the header section • May be saved into Excel file using the Save As option (Columns must be dragged back down before saving in Excel
Slide 38: Contracts Open Forum
Southern Natural Gas Company, L.L.C. Contracts Open Forum
Slide 39: Gas Control Update
Gas Control Update Reese Hart Gas Control Manager
Slide 40: Gas Control Organization
Gas Control Organization Rob Perkins Layne Sanders Reese Hart Vice President – Gas Control Director- Gas Control Gas Control Manager Office: 713.420.5229 Office: 713.420.5024 Office: 713.420.4774 Rob_Perkins@kindermorgan.com Layne_Sanders@kindermorgan.com Maurice_Hartiii@kindermorgan.com Kal Dankovi
Slide 41: Gas Control Update
Gas Control Update • Covid 19 continues to be major event affecting GC operations • Winter Storm Impacts • Gas control requested various stations to be manned during expected ice storm in order to make sure there was no issues with compression being placed on line. • Gas control with field ops also
Slide 42: Operational Considerations for OFO Implementation
Operational Considerations for OFO Implementation • Factors SNG considers when evaluating whether to implement Segment Restrictions and/or Type 3 OFO penalties: • Weather Forecast • Expected duration of heavy demand and day of the week • Customer recent history and nominated deliveries • Actual take
Slide 43: Outage Impact Report
Outage Impact Report Southern Natural Gas Company, L.L.C. a Kinder Morgan operated company Fiestritions to Priniary n-Path transportation serv SNG - Outage Impact Report Rest Seven Day Forecast (updated 04/01/21) -Ho anticipated impact to transportation services Monday Tuesday Wednesday ‘Thursday Fr
Slide 44: Gas Control Open Forum
Southern Natural Gas Company, L.L.C. Gas Control Open Forum
Slide 45: Scheduling Update
Scheduling Update Katie Cornutt Scheduling Manager
Slide 46: SNG Scheduling Team
SNG Scheduling Team Gina Mabry Katie Cornutt Todd Davis Charlotte Hawkins Director - Scheduling Manager - Scheduling SNG Sr. Scheduler II SNG Sr. Scheduler I Office: 713.420.3685 Office: 713.420.5648 Office: 713.420.7440 Office: 713.420.4873 Cell: 281.744.8666 Cell: 407.902.8027 Gina_Mabry@kindermor
Slide 47: Scheduling Update
Scheduling Update • Winter Overview • SNG Winter Segment Restrictions • Pipeline Conditions Report • Segmentation Overview • Common Confirmation Reduction Reasons • Out of Cycle Nomination Procedure • Retro Procedure
Slide 48: Segment Scheduling
Segment Scheduling • Transport scheduling: • Is at the pipeline segment level for pipeline constraints and at the point level for location capacity constraints • Takes place each day and cycle with a goal of maximizing the volumes SNG can transport through the pipeline • Considers an evaluation and
Slide 49: SNG Winter 2020/2021 Segment Constraints
SNG Winter 2020/2021 Segment Constraints (November-March) Segment Location Days Impacted 90 DUNCANVILLE LATERAL 7 110 MCCONNELLS 7 120 PROVIDENCE 20 380 SNG-SESH 116 400 PICKENS TO GWINVILLE 47 420 BAY SPRINGS 10 430 ENTERPRISE 14 490 ELLERSLIE 5 540 BRUNSWICK LINE-S MAIN 14 670 WEBSTER-CLAY 12 JACK
Slide 50: Winter Restrictions Percentage Days Restricted
Winter Restrictions Percentage Days Restricted (November - March) Percentage Days Restricted Percentage Days Restricted Percentage Days Restricted Percentage Days Restricted (November - March) (November - March) (November - March) (November - March) 2018/2019 2019/2020 2020/2021 Segment 30 17.22% 55
Slide 51: Pipeline Conditions Report
Southern Natural Gas Company, L.L.C. a Kinder Morgan operated company Pipeline Conditions Report $ SNG SNG Critical, PIPELINE CONDITIONS/CURRENT PIPELINE CONDITIONS, 20210109, SNG,6900518 (i) This item will expire in 7 days. To keep this item longer apply a different Retention Policy. Effective ID-1
Slide 52: Common Confirmation Reduction Reasons
Common Confirmation Reduction Reasons Auto Confirm Pins and I/C’s 1. Volume mismatches 2. Off system GID vs. Buy 3. Contract mismatch at Dent-C 4. Loss of supply or market (PRR or PRD) EDI confirmed I/C’s 1. Volume mismatches 2. GID vs. Duns (other party identifier) 3. EDI data mismatches
Slide 53: Segmentation Overview
Segmentation Overview • Segmentation allows a customer to maximize the usage of their individual contract by increasing their scheduled activity above their associated contract quantity, however is subject to the following parameters: • DDS and DRS cannot be used to segment on SNG’s system • Segment
Slide 54: SNG Out-of-Cycle Nomination Procedure
SNG Out-of-Cycle Nomination Procedure • Request must be made and approved prior to 9:00 am and should be made as soon as the need for a change is recognized. The request must be in good faith effort to true up before the gas day ends. Changes to ID3 on an OFO day will be evaluated against system con
Slide 55: SNG Retro Procedure
SNG Retro Procedure • SNG has established procedures and guidelines to ensure a non- discriminatory policy with respects to Retro Approvals • Unacceptable reasons for retros: • Change of scheduled volumes cannot create/remove a potential penalty charge in an area under an OFO • Reallocation of suppl
Slide 56: Scheduling Open Forum
Southern Natural Gas Company, L.L.C. Scheduling Open Forum
Slide 57: Next Steps
Next Steps • Follow-Up Survey • Solicitation of Ideas
Slide 58: Thank you for your business!
Southern Natural Gas Company, L.L.C. a Kinder Morgan operated company Thank you for your business!
Slide 59: Appendix
Southern Natural Gas Company, L.L.C. Appendix
Slide 60: DART Confirmation Reduction Codes
DART Confirmation Reduction Codes IMB Imbalance Payback Quantity Exceeded CAP Confirming Party’s Capacity Constraint OBA OBA Payback CBL Contract Balancing PLM Pipeline Maintenance CPR Confirming Party Reduction PMD Pipeline Maintenance at Delivery Location CRN Confirmation Response not Received PMR
Slide 61: Segmentation Valid Examples
Segmentation Valid Examples • Valid: To segment on the North and South system; the nomination paths can not exceed the contract MDQ, within the same zone.
Slide 62: Segmentation Valid Examples
Segmentation Valid Examples • Valid: Shippers can segment up to the contract MDQ from both FH and BH routes, on the same system (North and South).
Slide 63: Segmentation Invalid Examples
Segmentation Invalid Examples • Invalid: A shipper cannot nominate overlap on both the North and South systems, within the same zone.
Slide 64: Segmentation Invalid Examples
Segmentation Invalid Examples • Invalid: To segment on the North and South system; the nomination paths can not exceed the contract MDQ, within the same zone.