Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — Kinder Morgan Energy Partners — 2009 KMP Analyst Conference
14 slides from Kinder Morgan's conference presentation, Jan 29, 2009
Slide 1: Appendix
ENERGY PARTNERS, L.P. Appendix
Slide 2: Investor Relations Contacts
ENERGY PARTNERS, L.P. Investor Relations Contacts Phone E-mail Institutional Investors / Sell-side Analysts David Kinder VP, Corporate Development & Treasurer (713) 369-9469 david_kinder@kindermorgan.com Peter Staples Treasury & Investor Relations Manager (713) 369-9221 peter_staples@kindermorgan.co
Slide 3: Distribution of Quarterly Earnings
ENERGY PARTNERS, L.P. Distribution of Quarterly Earnings Q1 Q2 Q3 Q4 Year KMP Earnings (a) 2009E 31% 16% 21% 32% $1.37 2008 31% 31% 26% 12% $2.07 2007 20% 25% 25% 30% $1.74 2006 27% 25% 20% 28% $1.98 2005 28% 22% 25% 25% $2.37 2004 23% 23% 27% 27% $2.22 2003 25% 24% 25% 26% $1.98 2002 24% 24% 26% 26
Slide 4: Cost of Capital Calculation
ENERGY PARTNERS, L.P. Cost of Capital Calculation LP Current KMP Equity Distribution Unit Price Current KMP Yield $4.20 $51.00 8.24% GP Gross-up 56% Cost of Equity = 14.80% Equity % of Capital Structure x 50% Equity Component of Cost of Capital = 7.40% % of Interest Overall Rate Debt Debt Short-
Slide 5: Explanation of Return Calculations
ENERGY PARTNERS, L.P. Explanation of Return Calculations Formula Notes Segment Segment Distributable Cash Flow Return on Investment = before Certain Items (a) Average Total Investment (c) KMP KMP Distributable Cash Flow Return on Investment = before Certain Items (b) Average Total Investment (c) Dis
Slide 6: Explanation of Return Calculations – Cont'd
ENERGY PARTNERS, L.P. Explanation of Return Calculations – Cont’d Formula Notes Gross PP&E Investments Calculation of Goodwill Total Investment: Intangibles Plus: Asset Write-offs/Retirements Cumulative Environmental Reserves Legal Reserves/Expenditures (a) Minus: Cumulative Sustaining Capex Assumed
Slide 7: Incidents & Releases: Liquids Pipeline ROW
ENERGY PARTNERS, L.P. Incidents & Releases: Liquids Pipeline ROW Liquids Pipeline Incidents per 1,000 Miles (a) Liquids Pipeline Release Rate (a) 1.0 0.96 35 34.0 Bbl per billion barrel miles Incidents per 1,000 miles 30 0.8 Industry 25 Industry 0.6 Avg. 20 0.45 Avg. 15.5 0.4 15 0.29 0.21 10 6.0 0.2
Slide 8: Incidents & Releases: Natural Gas Pipe ROW
ENERGY PARTNERS, L.P. Incidents & Releases: Natural Gas Pipe ROW Natural Gas Pipeline Release Rate (a) Industry 0.5 Avg. 0.4 0.35 Incidents per 1,000 miles 0.32 0.3 0.27 0.27 0.2 0.1 0.0 2005 KM 2006 KM 2007 KM 12 mo. avg. __________________________ (a) An Incident means any of the following events:
Slide 9: OSHA Recordable Incidents
ENERGY PARTNERS, L.P. OSHA Recordable Incidents OSHA Recordable Incidents per 200,000 Hours Worked 7 6.4 6 5 4 3.6 3.1 3.2 3 2.0 2 1.6 1.3 1.3 1.7 1.3 1.1 1.0 1.1 1.2 1.1 1 0.7 0.5 0.2 0.3 0 Natural Gas CO2 Products Terminals KM Canada Pipelines Pipelines 2005 KM 2006 KM 2007 KM 12-mo rolling avg. I
Slide 10: OSHA Lost Time Cases
ENERGY PARTNERS, L.P. OSHA Lost Time Cases 4.5 Lost Time Incidents per 200,000 Hours Worked 4.0 3.4 3.5 3.0 2.5 2.0 1.8 1.4 1.5 1.2 1.1 1.1 1.1 1.0 1.0 0.7 0.7 0.8 0.7 0.6 0.5 0.3 0.3 0.2 0.2 0.2 0.2 0.0 0.0 Natural Gas CO2 Products Terminals KM Canada Pipelines Pipelines 2005 KM 2006 KM 2007 KM 12
Slide 11: Avoidable Vehicle Incidents
ENERGY PARTNERS, L.P. Avoidable Vehicle Incidents 4.0 Avoidable Vehicle Incidents per Million Miles 3.5 3.0 2.5 2.0 1.8 1.5 1.3 0.9 0.9 1.0 0.7 0.7 0.7 0.7 0.6 0.6 0.8 0.4 0.5 0.3 0.2 0.2 0.0 Natural Gas CO2 Products Pipelines KM Canada Pipelines 2005 KM 2006 KM 2007 KM 12 mo. Industry Average 11
Slide 12: Contractor Safety Performance Summary
ENERGY PARTNERS, L.P. Contractor Safety Performance Summary Contractor Safety Total Recordable Lost Time Injury Rate (TRIR) Injury Rate (LTIR) Business Unit KM Industry Avg. KM Industry Avg. Gas 2.95 2.60 0.49 1.10 CO2 1.77 4.20 * 0.67 1.53 Products 5.05 2.60 1.01 1.10 Terminals 3.19 3.28 0.67 1.20
Slide 13: GAAP Reconciliation
ENERGY PARTNERS, L.P. GAAP Reconciliation Detailed calculations reconciling the non-GAAP terms in this presentation to GAAP are available on our website at: http://www.kindermorgan.com/investor/presentations/. 13
Slide 14: Kinder Morgan Energy Partners, L.P.
KINDER/MORGAN ENERGY PARTNERS, L.P.
Kinder Morgan Energy Partners — 2009 KMP Analyst Conference on 6ix