Kinder Morgan, Inc. · NYSE:KMI

Kinder Morgan — Wachovia 2006 Pipeline / MLP Conference

71 slides from Kinder Morgan's conference presentation, Sep 20, 2006

  1. Slide 1: Natural Gas Pipeline Company of America / Trailblazer Pipeline 2006 Customer Meeting

    Natural Gas Pipeline Company of America / Trailblazer Pipeline 2006 Customer Meeting September 20th St. Andrews Country Club West Chicago, IL 1

  2. Slide 2: 2006 Customer Meeting

    2006 Customer Meeting l Welcome l Corporate Overview l Pipeline Management l Supply and Market Growth l Panel Discussion Storage Development l Business Development Projects 2

  3. Slide 3: Corporate Update

    Corporate Update Steve Kean Chief Operating Officer 3

  4. Slide 4: Forward Looking Statements

    Forward Looking Statements This presentation contains forward looking statements, including these, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended. Forward Forward looking statements are not guarantees of performanc

  5. Slide 5: KM Overview

    KM Overview 5

  6. Slide 6: Kinder Morgan Assets

    Kinder Morgan Assets NGPL (KMI) NGPL GAS STORAGE (KMI) Trans RETAIL GAS DISTRIBUTION (KMI) Mountain Corridor GAS­FIRED POWER PLANTS (KMI) PRODUCTS PIPELINES (KMP) 2 PRODUCTS PIPELINES TERMINALS (KMP) TRANSMIX FACILITIES (KMP) NATURAL GAS 2 PIPELINES (KMI­KMP) Express Cochin NATURAL GAS Pacific STORA

  7. Slide 7: Vision: Where We’re Going

    Vision: Where We’re Going Trend KM Opportunity l Growing Rockies Natural Gas Production l Rockies Express l Increased Supply of LNG on Gulf Coast l Kinder Morgan Louisiana Pipeline l Canadian Oilsands l Trans Mountain, Corridor pipeline expansions, Edmonton terminal l Increased Use of Heavy Crude l

  8. Slide 8: Corporate Update

    Corporate Update • Terasen • Divestiture of U.S. Retail Business • Oilsands 8

  9. Slide 9: Corporate Update: Terasen Operations

    Corporate Update: Terasen Operations • Terasen Gas • KM Canada l Trans Mountain Pipeline l Corridor Pipeline l Express/Platte Pipeline 9

  10. Slide 10: Terasen Gas

    Terasen Gas • 892K customers • Serve 95% of BC customers • 27K miles of pipeline • Third largest gas utility in Canada Whistler • Largest natural gas utility in the Pacific Northwest • C$2.9B rate base • C$275M EBIT (2005) 10

  11. Slide 11: KM Canada

    KM Canada • Operator of 3 Oil Pipelines Corridor Trans Mountain • Sole Pipeline from Alberta to West Coast • Express is primary line to Express/Platte PADD IV • Platte serves large PADD II market 11

  12. Slide 12: Corporate Update: Divestiture of U.S. Retail Operations

    Corporate Update: Divestiture of U.S. Retail Operations • Transaction: Assets: U.S./Mexican LDCs, ~260,000 customers Buyer: GE Financial Price: $710M plus wc Close: anticipated in 1Q 2007 • Rationale: — Attractive price, ~11x EBITDA — Small footprint — Provides platform for GE 12

  13. Slide 13: Corporate Update: The Canadian Oilsands Opportunity

    Corporate Update: The Canadian Oilsands Opportunity • Over $125 billion in announced oilsands projects by producers over the next 10 years l Production projected to almost triple 2005­2015 • Restricting factors: l Heavy­oil refining capacity l Takeaway pipeline capacity • Implications for U.S. Natur

  14. Slide 14: Canadian Oilsands: Supply

    Canadian Oilsands: Supply Canadian Crude Production by Type (a) World Oil & Bitumen Reserves – Top 10 (b) (MBbl/d) (reserves (billions of barrels) 4,000 Oilsands 350 345 315 Pentanes/Condensate 3,500 5 300 270 Conventional Heavy GR ‘05­‘1 Bitumen % CA 250 3,000 Conventional Light/Med nd s ~10 Oil Oi

  15. Slide 15: Canadian Oilsands: Takeaway Capacity

    Canadian Oilsands: Takeaway Capacity (PADDs II & IV Have the Most Access to Canada) Major Canadian Oilsands Takeaway into the U.S. Bb R ) 0 M IDO l/d AIN Fort McMurray Trunkline NT ( 2 2 RR U MO l/d) (MMBbl/d) Capacity CO NS MBb Cold Lake A TR ( 225 in to U.S. Edmonton Hardisty PADD II 2.0 R­ /d ) B

  16. Slide 16: Canadian Oilsands: KM Canada Opportunity - Trans Mountain Expansions

    Canadian Oilsands: KM Canada Opportunity ­ Trans Mountain Expansions l TMX1 – C$595 million ⇒ additional 75 MBbl/d l Pump Station Expansion, C$230 million, 35 MBbl/d, in­svc by April 2007 l Anchor Loop, C$365 million, 40 1,100 MBbl/d MBbl/d, in­svc at end of 2008 l TMX2 – Loop between Valemont & Kam

  17. Slide 17: Canadian Oilsands: Implications for U.S. Gas Markets

    Canadian Oilsands: Implications for U.S. Gas Markets • Oilsands producers will become heavy users of natural gas… Estimated Natural Gas consumption (Bcf/d) 1.6 in Alberta Oil Sand Projects 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 1990 1992 1994 1996 1998 2000 2002 2004 2006E 2008E 2010E 17

  18. Slide 18: Canadian Oilsands: Implications for U.S. Gas Markets

    Canadian Oilsands: Implications for U.S. Gas Markets Tcf 5 U.S. Natural Gas Supply by Source Forecast • …but Oilsands use 4 Canada only one factor in 3 supply / demand 2 LNG balance 1 0 • LNG Mexico ­1 • New Pipeline 1990 1995 2004 2010 2015 2020 2025 Infrastructure 20 (Bcf/d) Canadian Natural Propo

  19. Slide 19: Pipeline Management

    Pipeline Management Ray Miller VP Pipeline Management 19

  20. Slide 20: Pipeline Management

    Pipeline Management l Spring/Summer 2006 Review l Winter 2006/07 Expectations l Summer 2007 First Look l Gas Quality Topics l Contact Lists 20

  21. Slide 21: Spring/Summer 2006 Review

    Spring/Summer 2006 Review 21

  22. Slide 22: Spring/Summer 2006 Review

    Spring/Summer 2006 Review l Transport Summary l Amarillo Line was highly utilized l Cross Haul Line was highly utilized l Gulf Coast Line fluctuated with market demand l Louisiana Line was highly utilized l Increased South Texas and TexOk deliveries l Increased Permian deliveries l Trailblazer was h

  23. Slide 23: Spring/Summer 2006 Review

    Spring/Summer 2006 Review l Storage Summary l Storage has been unpredictable l Strong price spreads to future months l Market volatility and weather sensitivity l Aquifers on target l Finally… injections in September 23

  24. Slide 24: Spring/Summer 2006 Review

    Spring/Summer 2006 Review Using Field (non­aquifer) to keep Market (aquifer) on target Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Market Storage Field Storage Example Only 24

  25. Slide 25: Spring/Summer 2006 Review

    BCF ­50 ­40 ­30 ­20 ­10 0 10 20 30 40 2004 Apr May Jun Jul Aug Sep Oct Nov Dec 2005 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Monthly Injections/Withdrawals 2006 Jan Feb Mar Apr May Jun Jul Spring/Summer 2006 Review Aug (est) Sep (est) Oct 25

  26. Slide 26: Spring/Summer 2006 Review

    Spring/Summer 2006 Review Approximate Storage Balances on Nov 1st 250 200 150 BCF 100 Field Market 50 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 (est) 2006 26

  27. Slide 27: Spring/Summer 2006 Review

    Spring/Summer 2006 Review l Major 2006 Projects Completed l HP replacement/expansion and automation at Station 155 l HP expansion at Station 801 l Piping modifications at Station 154 l Piping modifications at Station 303 l Supply additions near Station 304 l Supply addition at Station 802 l Major un

  28. Slide 28: Spring/Summer 2006 Review

    Spring/Summer 2006 Review l Major 2006 Projects Underway l Electric system upgrades at Station 302 (Oct) l New HP installation at Columbus Junction storage (Oct) l HP replacement and piping changes at Sayre storage (Sep/Oct) l Piping modifications at Station 304 l New HP at Station 803 l Replace HP

  29. Slide 29: Spring/Summer 2006 Review

    Spring/Summer 2006 Review l Major 2006 Projects Planned l Permian line lowering near Station 169 (Sep) l Meter station replacement at N. Lansing storage (Oct/Nov) l Piping modifications at Station 342 (Sep) l Loop construction at N. Lansing storage l Supply additions in on GC system near Carthage l

  30. Slide 30: Filtration is Important!

    Spring/Summer 2006 Review Filtration is Important! 30

  31. Slide 31: Running a Gauge Pig

    Spring/Summer 2006 Review Running a Gauge Pig 31

  32. Slide 32: Storage work continues

    Spring/Summer 2006 Review Storage work continues 32

  33. Slide 33: New HP Installations

    Spring/Summer 2006 Review New HP Installations 33

  34. Slide 34: Winter 2006/07 Expectations

    Winter 2006/07 Expectations l Transport Expectations l Expect Amarillo Line to be highly utilized l Expect Cross Haul Line to be highly utilized l Expect Gulf Coast Line to swing with market demand l Expect Louisiana Line to be highly utilized l LNG Influence? l Expect Trailblazer system to be highl

  35. Slide 35: Winter 2006/07 Expectations

    Winter 2006/07 Expectations l Storage Expectations l Price influence l Market volatility continuing l Weather influence l No consensus on weather patterns l Reduced weekend/holiday demand 35

  36. Slide 36: Summer 2007 First Look

    Summer 2007 First Look l Major Projects Planned l HP expansion 346, 342, 343 and 302 l KMIP project work l Replace HP at Station 310 l Replace HP at Station 196 l Replace HP at Loudon storage l Replace HP at Herscher storage l Champaign lateral expansion project work l Amarillo interconnect with NNG

  37. Slide 37: Summer 2007 First Look

    Summer 2007 First Look Compression / HP Major Investment 2004 2005 2006 2007 37

  38. Slide 38: Summer 2007 First Look

    Summer 2007 First Look Natural Apr 07, 1 month, Reroute GC #1, #2, & #3 lines crossing US 59 in, Marion County Texas Apr 07, 1 day, Cleaning pig runs, La Line #1, Station 343 to Station 342 Apr 07, 1 day, Station 155 annual ESD test and electrical circuit maintenance Apr 07, 1 day, Cleaning pig runs

  39. Slide 39: Gas Quality Topics

    Gas Quality Topics l Natural RP01­503 l 05 hearing to establish “safe harbor” dew point l Favorable decision by Administrative Law Judge l FERC has not acted on Natural’s tariff language l Natural’s objectives have not changed l Gas Quality acceptable for safe and reliable operation l Gas Quality ac

  40. Slide 40: NGPL 2006 Contact List

    NGPL 2006 Contact List Gas Control Trans and Stor Services Account Services Field Operations 24 hr 713­369­9400 Paul Haas Dave Weeks Joe Mclaughlin ­ N. Region Emer 800­733­2490 713­369­3243 630­691­3616 630­691­3802 Pager 888­792­2669 Cell 713­829­0462 Cell 630­399­1193 Cell 630­269­3006 Trennis Cu

  41. Slide 41: Supply and Market Growth

    Supply and Market Growth Mark Kissel VP Business Management 41

  42. Slide 42: New Supply

    New Supply Mid­2006 vs. 2003 Iowa Keota Nebraska Herscher Columbus City Midcontinent Zone Increase Illinois Cooks Mills Receipt Capacity: 1,669 MMcf/d Loudon Avg. Daily Receipts: 389 MMcf/d Kansas Missouri Oklahoma Arkansas New Mexico Sayre Texok Zone Increase Receipt Capacity: 2,560 MMcf/d North La

  43. Slide 43: Market Growth

    Market Growth Direct Connect Power Plant Throughput 2006 2006 2004 2004 2005 2005 (Bcf) CDDs Normal Delivery Zone (Bcf) CDDs (Bcf) CDDs (YTD) (YTD) CDDs Market 2.3 615 12.1 1,166 9.5 880 830 Midcontinent 6.3 2,653 13.6 3,120 8.9 2,788 2,568 Texok 83.0 3,297 72.2 3,292 56.8 2,489 2,893 TOTAL 91.5 6,5

  44. Slide 44: Increased Utilization of System

    Increased Utilization of System 1,100,000 1,000,000 Average Daily Throughput (Dth/d) 900,000 800,000 700,000 Amarillo Sys.@ Sta. 109 (upstream of Harper, IA) 600,000 La Line Deliv in Seg. 23 & 24 Gulf Coast Sys. @ Sta. 307 500,000 44 2002 2003 2004 2005

  45. Slide 45: Increased usage of Gulf Coast System during peak periods

    Increase usage of Gulf Coast System during peak periods Gulf Coast Utilization on days during December with 42 HDD’s at Chicago O’Hare. 1,600 1,500 1,400 Average Daily Throughput (Dth/d) 1,300 1,200 1,100 Gulf Coast System @ Sta. 307 1,000 900 800 700 600 45 2002 2003 2004 2005

  46. Slide 46: Available Capacity Commencing September 2006

    Available Capacity Commencing September 2006 29 (As posted on NGPL Segment Capacity Grid, 9/14/06) LO AM AR IL 14 Trailbla IOW A­ILLINOIS z er 13 Amarillo System (Seg 14) 12 Sold Out Amarillo System (Segment 11 – 13) 28 Long Term starting Apr 07 – 27,407 Dth/d NT NE Gulf Coast System TI 27 ON 11 Seg

  47. Slide 47: Panel Discussion: Storage Development

    Panel Discussion Storage Development Ron Brown, KMI Pat De Ville, Enstor Paul Korman, Van Ness Feldman Bill McCartney, Vitol S.A., Inc. 47

  48. Slide 48: Business Development

    Business Development Steve Harris VP Business Development 48

  49. Slide 49: Topics of Discussion

    Topics of Discussion l Committed Projects l Kinder Morgan Rockies Express Pipeline l Kinder Morgan Louisiana Pipeline l NGPL LA Line Expansion l NGPL Segment 17 Expansion l Proposed Projects l KM Midcontinent Express Project l KM Fayetteville Pipeline Project l KM Carthage Project l Ethanol Projects

  50. Slide 50: Rockies Express Pipeline

    Rockies Express Pipeline Project Staging 50

  51. Slide 51: Rockies Express Project Overview

    Rockies Express Project Overview l Rockies Express (REX): 1.8 Bcf/d l REX Zone 1 (formerly Entrega) l 130 miles of 36” pipeline from Meeker, Co to Wamsutter, WY l 190 miles of 42” pipeline from Wamsutter to Cheyenne Hub l REX Zones 2 and 3 l 1,350 miles of 42” pipeline from Cheyenne Hub to Claringto

  52. Slide 52: REX Shippers

    REX Shippers es ENCANA a, ConocoPhillips bp — MN ne “We PETROLEUM fachies Express Ppeline

  53. Slide 53: Kinder Morgan Louisiana Pipeline

    Kinder Morgan Louisiana Pipeline Kirbyville Transco Delivery Point Mamou !? Tyler !? CGT Delivery Point TETCO Delivery Point Port Barre Beauregard Evangeline Opelousas Allen !? ANR Delivery Point Eunice St. Landry !? Kinder ANR Delivery Point !? !? !? Jasper Newton De Quincy Texas Gas Delivery Point

  54. Slide 54: Kinder Morgan Louisiana Pipeline

    Kinder Morgan Louisiana Pipeline l Capital Cost ­ $490 MM l Receipt Point: Cheniere Sabine Pass LNG Terminal l Delivery Point: Various inter/intra­state pipelines and ending in Evangeline Parish, LA. l Capacity l Rayne Lateral (Leg 1) l 137 miles 42” NGPL Lateral 1, 597,500 Dth/d Rayne Lateral l 2,1

  55. Slide 55: Kinder Morgan Louisiana Pipeline Procedural Timeline

    Kinder Morgan Louisiana Pipeline Procedural Timeline September 2006: File FERC Application June 2007: Receive FERC Certificate July 2008: Begin Construction October 1, 2008: In­service for NGPL Lateral (Leg 2) April 1, 2009: In­service for Rayne Lateral (Leg 1 ­ available for service as early as Sep

  56. Slide 56: NGPL Louisiana Line Expansion

    NGPL Louisiana Line Expansion 304 Install Piping for Bi­directional Compression n 303 sio n pa Ex h /d Dt 0 00 0, 20 340 Add 3.14 Upgrade Replace mile Loop & add HP 302 HP 304 Upgrade Henry & add HP 346 Upgrade 343 342 302 343 Henry & add HP 346 342 56

  57. Slide 57: NGPL Louisiana Line Expansion

    NGPL Louisiana Line Expansion § Capacity is 200,000 Dth/d and is fully subscribed § Contract path was sourced from the north end of the Gulf Coast Line § Binding Open Season was for 3 weeks ending May 2, 2006 § Estimated In­service is January 1, 2008 § Capital Cost estimate is $68.7 MM 57

  58. Slide 58: NGPL Segment 17 Expansion Project

    NGPL Segment 17 Expansion Project ") Sta. 801 ") ") Enogex Bryan New Compressor Sta. 803 ") ") Capital Cost: $15.5 MM ") Sta. 802 Se g Capacity: 140 MMcf/d (fully subscribed) m Exp ent 17 ans io n HP: 9,500 (new Sta. 803) Term of Contracts: 10 years 58 In­Service: November 2006 ")

  59. Slide 59: KM Midcontinent Express Pipeline

    KM Midcontinent Express Pipeline 801 812 Pine Bluff Oklahoma ENOGEX U + 306 Sherman CROSSTEX NGPL U + Arkansas Texarkana CROSSTEX 802 Denton 305 155 U + GULF SOUTH TGP Texas Perryville NGPL ANR Fort Worth Dallas U + + U U + U + SONAT U + U + U + Monroe Longview Shreveport TGT North Lansing 388 TETCO

  60. Slide 60: KM Midcontinent Express Project Specifics

    KM Midcontinent Express Project Specifics l Capacity: 1.1 Bcf/d l Route: Sherman (Barnett Shale) to Bennington area through Perryville to CGT l 343 Miles l 39 miles of 36” pipe l 304 miles of 42” pipe l Contract Term: 10 years l In­service Date: March­August 2009 l 3 Receipt Points l 9 Delivery Poin

  61. Slide 61: KM Midcontinent Express Pipeline Project Timeline

    KM Midcontinent Express Pipeline Project Timeline October 2­27, 2006: Conduct Open Season for capacity February 2007: NEPA Pre­Filing Application September 2007: File FERC Application July 2008: Receive FERC Certificate August 2008: Begin Construction January 2009: In­service 802 to NGPL Atlanta Mar

  62. Slide 62: KM Fayetteville Pipeline

    KM Fayetteville Pipeline Opt 3: Basin to Columbia Gulf Opt 2: Basin to Texas Gas Opt 1: Basin to NGPL Jackson Van Cleburne Buren Tennessee ! SWEC 307 ! ! Woodruff Memphis White ! Conway NGPL St. Francis MRT TETCO TGT Lee Little Rock Monroe ! Tate Tunica ! ! TGP ! ANR Lafayette TRUNKLINE Panola ! 306

  63. Slide 63: KM Fayetteville Pipeline

    KM Fayetteville Pipeline l Three construction options l 65 miles of 24” or 30” l 147 Miles of 24” or 30” l 212 miles of 24” or 30” l Capacity of 500 MMcf/d to 900 MMcf/d l Anticipated In Service of 1/1/09 63

  64. Slide 64: KM Carthage Project

    KM Carthage Project Lakeport 304 Gregg Harrison Easton Tatum Caddo Texas Louisiana Beckville Carthage Rusk Hub Panola DELIVERY Henderson ­ Centerpoint Panola ­ Gulf South • Two capacity options ­ 200 MMcf/d or 300 MMcf/d De Soto • 13 Miles of 20” Pipe • 3,500 HP to 6,000 HP of Compression • Proposed

  65. Slide 65: Ethanol Plants

    Ethanol Plants § With the passage of the Energy Policy Act of 2005 and enactment of the nationwide Renewable Fuels Standard (RFS), USA production of ethanol is mandated to meet 7,500 million gallons per year by 2012. § USA Production (MGPY): § Total US Current Capacity at 101 ethanol bio­refineries

  66. Slide 66: Ethanol Plants

    Ethanol Plants e Se e | Ry North Dakota Montana ° e@Minnesota South Dakota Idaho Wyoming, J _opar ex Kanda -/ Wamisutter \ £ * Rennsylvania Pi \ ee | Ohio: Clatin} a = fMarylan t ) Indiana auger ae ¥ 4 < nt fe West Virginié Colorado, Missouri kéntucky. Virginia ws 4 ct = NGPL Ethanol Plant Locations

  67. Slide 67: Ethanol Plants

    Ethanol Plants Potential NGPL & Trailblazer Ethanol Plants Potential NGPL & Trailblazer Ethanol Plants Million Gls. Million Gls. Location Pipeline Per Year MDth/d Location Pipeline Per Year MDth/d 1 Adams, NE Trailblazer 100 10.0 18 Hastings, NE Trailblazer 80 8.0 2 Annawan, IL NGPL 50 5.0 19 Henry

  68. Slide 68: NGPL 2005 Interconnects

    NGPL 2005 Interconnects Executed Agreements Capacity Company Co/State Pipe R/D MMcf/d Cimarex Kiowa, Ok NGPL Receipt 3 Copano/Live Oak Duval, TX NGPL Receipt 9 Crosstex (North TX PL) Lamar, TX NGPL Receipt 250 Dynegy Saunders Lea, NM NGPL Receipt 50 Enbridge Wheeler, TX NGPL Receipt 200 Enbridge Whe

  69. Slide 69: NGPL 2006 Interconnects

    NGPL 2006 Interconnects Executed Agreements Capacity Company Co/State Pipe R/D MMcf/d Agave Eddy, NM NGPL Receipt 40 Agave Eddy, NM NGPL Receipt 40 ETC – Atlas Pipeline Beckham, Ok NGPL Receipt 140 Enbridge Panola, TX NGPL Receipt 500 Enbridge Wheeler, TX NGPL Receipt 100 Famcor Oil, Inc San Jacinto

  70. Slide 70: Attendees

    Attendees Alliant Energy Conoco Phillips Kinder Morgan (cont’d) Jeff Hicken Bob Culler Sam Hosper Danny Ivy Ameren Constellation Energy Commodities Steve Kean James Massmann Group Mark Kissel Darren Espey Jim McElligott Ameren AEGC Andrew Swinick Joe McLaughlin Bradley Kloeppel Menis Mark Kathy Reev

  71. Slide 71: Attendees

    Attendees Nicor Gas Peoples Gas Light & Coke Vitol S.A., Inc. Clint Whybark Rich Dobson Bill McCartney Len Gilmore Bill Quigley Gary Bartlett Tom Smith We Energies Maureen Williams Tom Zack Tim McCollow Michelle Carbone Peter Newman Joe Deters PPM Energy Richard Quick Shirley Holmes Zarin Imam Jim V

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