Kinder Morgan, Inc. · NYSE:KMI

Kinder Morgan — Kinder Morgan 2011 Analyst Conference

17 slides from Kinder Morgan's conference presentation, Mar 24, 2011

  1. Slide 1: Products Pipelines

    Products Pipelines Tom Bannigan President Products Pipelines Group

  2. Slide 2: Products Pipelines Assets

    Products Pipelines Assets PRODUCTS PIPELINES PRODUCTS PIPELINES TERMINALS TRANSMIX FACILITIES Cochin KM HEADQUARTERS Pacific WCT Pacific Miles of Pipe ~ 8,400 Terminals – 54 CALNEV Tank Capacity Pacific Terminal ~ 36 MMbbls Plantation Pipelines ~ 15 MMbbls Cypress Transmix – 6 facilities with proces

  3. Slide 3: Financial Overview

    Financial Overview (a) ($ in millions) 2009 2010 2011B Segment EBDA $635.1 $687.5 $730.5 Sustaining Capex (b) (42.5) (41.0) (46.2) DCF $592.6 $646.5 $684.3 Compound Annual Growth Rate of DCF = 7.5% __________________________ (a) Excludes Certain Items (b) Does not include corporate overhead 3

  4. Slide 4: 2010 Volumes / Markets

    2010 Volumes / Markets Total refined product volumes up slightly, 0.5% vs. 2009, up 1.6% adjusted for change in California ethanol blending mandate – (EIA reported 1.6% national increase) (a)  Gasoline (including CFPL ethanol) up 0.8% (up 2.6% adjusted for change in CA ethanol blending mandate), di

  5. Slide 5: Expanding to Meet Customer Demand

    Expanding to Meet Customer Demand Recently Completed Projects Project Description In Service Cost ($MM) Pacific California 10% ethanol Install & upgrade off-loading lanes & facility modifications January 2010 $15.8 Colton tanks & loading racks Two 80 MBbl tanks & two racks February 2010 19.2 Reno et

  6. Slide 6: Historical Demand and 2011-12 EIA Outlook

    Historical Demand and 2011-12 EIA Outlook U.S. Product Consumption EIA Demand Outlook MMBbl/d 2010 2011E 2012E 10 Mogas 0.4% 0.7% 0.7% 9 8 Distillate 4.5% 1.4% 2.7% 7 Jet Fuel 2.2% 1.2% 0.1% 6 Total 1.6% 1.0% 1.2% 5 4 Refined Product Pipelines (MMBbls) 3 2 2010 2011P % chg 1 Pacific CALNEV 476.1 485

  7. Slide 7: Historical FERC Tariff Index Regime

    Historical FERC Tariff Index Regime PPI FG + 1.3% PPI FG + 2.65% 2006 – 2010 2011 – 2015 $1.40 $1.35 6.82% (a) $1.30 Growth of $1 7.60% -1.30% $1.25 $1.20 5.17% $1.15 4.32% $1.10 6.15% $1.05 $1.00 $0.95 July 1, 2006 to July 1, 2007 to July 1, 2008 to July 1, 2009 to July 1, 2010 to July 1, 2011 to J

  8. Slide 8: Refined Products Revenues

    Refined Products Revenues (a) $MM $1,000 Compound Annual Growth Rate = 5.9% $800 $600 $400 $200 $- 2006 2007 2008 2009 2010 2011P Terminals Interstate Intrastate __________________________ (a) Product Segment, excludes Cochin and Cypress 8

  9. Slide 9: NGL Assets – Cochin and Cypress

    NGL Assets – Cochin and Cypress Combined, represent $53.3MM income before DD&A, or 7.3% of 2011 segment plan  Cochin — 1,900-mile pipeline serving 5 propane terminals and petrochemical complex (ExxonMobil, BP, Nova) in Sarnia / Corunna, Ontario — 2010 propane volume down 31.9% and revenue down 26.8

  10. Slide 10: Positioned for Growth

    Positioned for Growth PRODUCTS PIPELINES Major Refining Hubs Cochin TRANSMIX FACILITIES Shale Plays: NGL’s & Crude Bakken & Marcellus Pacific WCT Terminal Expansions Terminal Acquisition Pacific Opportunities Ethanol Unit Train Receipts CALNEV Pacific Biodiesel Plantation Blending Cypress Shale Play

  11. Slide 11: Asset Optimization

    Asset Optimization Cochin Marcellus: Ethane to Sarnia Petchems, Pacific Heavies to Chicago for Bakken Crude: Southern Lights to Alberta Cochin transport to interconnecting carriers, trading hubs and refiners Northern 2 2 CALNEV Eagle Ford: 2 PRODUCTS PIPELINES 4 Gas Pipeline Conversions 3 PRODUCTS P

  12. Slide 12: Expanding to Meet Customer Demand

    Expanding to Meet Customer Demand Near-Term Projects Project Description In-service Cost ($MM) Approved Expansion Projects: Pacific Travis Air Force Base Three 150 MBbl tanks, 16-inch pipeline and facilities 2012 $ 47.5 CALNEV Barstow terminal Modification to increase military jet volumes 2011 2.8 W

  13. Slide 13: Biofuels: Opportunities Amidst Challenges

    Biofuels: Opportunities Amidst Challenges  Opportunities — Mandate, subsidy and tariff protection advantage biofuels Products Pipelines Biofuel — Current ethanol blend equipment capable of Volumes Handled (MMBbls) handling mid-level blends (E12 – E15) as market 2008 2009 2010 2011 grows — Developme

  14. Slide 14: CPUC Rate Case Update

    CPUC Rate Case Update  Consolidation of multiple dockets dating from 1997-2006  Original ALJ proposed decision eliminated income tax allowance – alternate proposed decision, by Commissioner Simon, restored full income tax allowance  Matter is before Commission for decision  Shippers and SFPP eng

  15. Slide 15: FERC Rate Case Updates

    FERC Rate Case Updates  Resolved historical dockets (1992-2008) — 11 of 12 parties settled in May-2010; last party agreed to settle in Dec-2010 — FERC approved non-contested settlement in March 2011  Two remaining West Line / East Line cases — West Line Opinion 511: Commission vigorously defended

  16. Slide 16: Summary Highlights

    Summary Highlights  Modest volume growth with approved FERC index  Terminal revenues enjoy continued growth from expansion projects and biofuel mandates  Slate of expansion projects underway  Footprint and options to optimize/convert asset services (shale plays) provides significant future growt

  17. Slide 17: Kinder Morgan

    KINDER/MORGAN

Kinder Morgan — Kinder Morgan 2011 Analyst Conference on 6ix