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Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P.

KINDER MORGAN ENERGY PARTNERS, L.P. · Jun 12, 2014 · 35 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 1
    Companies Run By Shareholders, For Shareholders David Michels VP Finance & Investor Relations CFO of EPB June 12, 2014
  2. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 2
    Kinder Morgan Unparalleled Asset Footprint 4th largest energy company in North America with combined enterprise value of approximately 110 billion (a) Largest natural gas network in North America Own an interest in / operate…
  3. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 3
    Kinder Morgan Four Ways to Invest: KMI, KMP, KMR & EPB 665 MM Public Kinder Morgan, Inc. (64%) Float Market Equity 37.2B (a) Cash Debt 9.1B (b,g) dividends to KMI 301 MM (d) Management/ shareholders (C-corp) (29%) Original S/H…
  4. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 4
    Our Strategy Stay the Course Same Strategy Since Inception Focus on stable fee-based assets that are core to North American energy infrastructure Market leader in each of our business segments Control costs Its the investors…
  5. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 5
    18 Years of Consistent Growth at KMP KMP Total Distributions (GP + LP) (MM) KMP Annual LP Distribution per Unit (c) (a) 5,000 (a) 6.00 5.58 4,499 5.33 4,500 GP LP 4.98 4,017 5.00 4.61 4,000 4.40 4.20 3,500 3,230 4.02 4.00 3.48…
  6. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 6
    Financial Rigor Promises Made, Promises Kept Promises Made Promises Kept KMI Budgeted KMI Actual Dividend: Dividend: KMI has exceeded 2011: 1.16 (a) 2011: 1.20 (a) its dividend target 2012: 1.35 2012: 1.40 in each of past 3…
  7. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 7
    2014 Guidance Supported by Diversified, Substantially Fee-based Cash Flow CO2 S&T CO2 Oil Production 6% KMI Budget: Natural Gas 14% Pipelines KMI 2014 dividend: 1.72/sh (8% growth over 2013) Terminals 12% 54% Fully-consolidated…
  8. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 8
    Tremendous Natural Gas Market Opportunities U.S. Natural Gas Projected Supply & Demand (a) (Bcf/d) KM Natural Gas Footprint Demand 2014 2019 2024 LNG exports -0.3 4.7 9.8 Mexican net exports 2.1 3.8 4.6 Power 21.3 23.9 28.5…
  9. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 9
    Generating Real-time, Long-term Benefits 641B of investment in midstream energy infrastructure needed through 2035, implying 29B per year annual spend (a) compared to 18B annual spend by MLPs (b) over past five years Kinder Morgans…
  10. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 10
    5-year Project Backlog (a) 16.4 Billion of Currently Identified Organic Growth Projects Tremendous footprint provides 16.4B of currently identified growth projects over next 5 years 5-year Growth Capex Backlog (B) 9M 2014 2015 2016…
  11. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 11
    Risks Regulatory (KMP/EPB/KMI) Products Pipeline FERC / CPUC cases Natural Gas FERC rate cases Legislative and regulatory changes Crude oil production volumes (KMP) Commodity prices (KMP) CO2 oil production 2014 budget assumes…
  12. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 12
    Summary KMI, KMP, KMR & EPB: Attractive Value Proposition Unparalleled asset footprint Long-term Growth Targets Diversified midstream energy KMI 3-year targeted dividend / platform provides stable, fee-based share CAGR of about 8%…
  13. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 13
    Appendix
  14. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 14
    KMR 101 Discount Has Narrowed (Again), But Still Wide KMR is KMP KMR Discount to KMP KMR shares are pari passu with KMP units 10% KMR dividend equal to KMP cash distribution, but paid in additional shares; effectively a dividend…
  15. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 15
    Toll Road-like, Fee-based Business Model Natural Gas Products Kinder Morgan Terminals CO2 Pipelines Pipelines Canada (KMP) (KMP) (KMP/EPB/KMI) (KMP) (KMP) Interstate & LNG: take or pay Take or pay, minimum S&T: primarily minimum…
  16. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 16
    KMPs Diversified Cash Flow Natural Gas Pipelines 2014E KMP Segment 53% interstate pipelines Earnings before DD&A 34% gathering, processing & treating = 6.4 billion (a) 13% intrastate pipelines & storage Products Pipelines CO2 S&T…
  17. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 17
    KMP 2014 Growth Capital Budget ( in millions) 2014 2014 Forecast Budget Expansion capital Natural Gas Pipelines 797 687 CO2 (forecast split S&T 481 / EOR 549) 1,030 1,076 Products Pipelines 766 712 Terminals 644 562 Kinder…
  18. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 18
    46B of Growth Capital Invested at KMP (a,b) ( in billions) Total Invested by Type (a,b) Total Invested by Year 25 11 20 Expansion 10.0 10 15 Acquisition 21.9 24.5 9 10 8 5 7 6.6 (b) - Expansions Acquisitions 6 5 4.8 Total…
  19. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 19
    How We Have Done: KMP Returns on Capital 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Segment ROI (a): Natural Gas Pipelines 13.3% 15.5% 12.9% 13.5% 14.0% 15.5% 16.7% 17.5% 16.9% 14.0% 11.9% 11.9% 11.9% 11.6%…
  20. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 20
    The Value of the Platform Original Asset Kinder Morgan Crude & Condensate Pipeline (KMCC) May 2011 Kinder Morgan announced a 220 million investment to convert 113 miles of an existing under-utilized natural gas pipeline and build 65…
  21. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 21
    KMP Acquires Jones Act Tankers for 960 Million Transaction Overview On 1/17/2014, KMP closed its acquisition of American Petroleum Tankers (APT) and State Class Tankers (SCT) 960 million in cash Immediate and long-term accretion to…
  22. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 22
    Significant Historical Returns (a) KMP: 23% CATR Since 96 (b) KMI: 9% CATR Since Inception (e) 4,000 KMP = 3,608 175 Dollars Dollars 3,500 150 3,000 125 2,500 S&P 500 = 158 100 RMZ = 148 2,000 UTY = 146 AMZ 75 KMI = 133 (d)…
  23. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 23
    EPB Focused on Natural Gas Pipelines 2014E EPB Segment Natural Gas Earnings before DD&A Highly stable cash flow stream = 1.3 billion (a) 85% interstate pipelines Average contract life = 8 years (b) 15% LNG Average contract life =…
  24. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 24
    EPB 2014 Growth Capital Budget ( in millions) 2014 Budget Growth capital Expansion 103 Contributions to JVs 66 Subtotal 169 Acquisitions 972 Total growth capital 1,141 25
  25. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 25
    EPB Contract Expirations Strong Contracted Cash Flow Profile Contract Expiration Volume (a) 2019 and 2014 2015 2016 2017 2018 Beyond Total (MDth/d) CIG 270 428 1,689 191 178 1,855 4,611 WIC 265 589 121 225 528 1,925 3,653…
  26. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 26
    KMI Overview KMI pays a regular c-corp dividend with attractive combination of yield plus growth KMI Investments / Assets: Investment in MLPs KMP: General Partner (GP) interest receives incentive distributions from KMP KMI owns 10%…
  27. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 27
    Natural Gas Pipelines Segment Outlook Well-positioned connecting key natural gas resource plays with major demand centers Project Backlog: 4.1 billion of identified growth projects over next seven years (a), including: LNG…
  28. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 28
    Products Pipelines Segment Outlook Opportunities for growth from increased liquids production Project Backlog: 1.0 billion of identified growth projects over next two years (a), including: Cochin reversal / conversion Eagle Ford…
  29. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 29
    Terminals Segment Outlook Well-located in refinery / port hubs and inland waterways Project Backlog: 2.0 billion of identified growth projects over next five years (a), including: Liquids BOSTCO Phases 1, 2, & 3 Alberta crude by…
  30. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 30
    CO2 Segment Outlook Own and operate best source of CO2 for EOR (a) Project Backlog: Identified growth projects totaling 1.8 billion and 2.1 billion in S&T and EOR (a), respectively, over next five years (b), including: S&T…
  31. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 31
    Kinder Morgan Canada Segment Outlook Sole oil pipeline from Oilsands to West Coast / export markets Project Backlog: 5.4 billion expansion of Trans Mountain Pipeline Long-term Growth Drivers: Expand Oilsands export capacity to West…
  32. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 32
    Incidents & Releases Liquids Pipeline Right-of-way Liquids Pipeline Incidents per 1,000 Miles (a) Liquids Pipeline Release Rate (a) 1.0 50 Barrels per billion barrel miles 0.8 40 Incidents per 1,000 Miles 0.6 30 0.4…
  33. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 33
    Incidents & Releases Natural Gas Pipeline Right-of-way Natural Gas Pipeline Incidents Rate Natural Gas Pipeline Incidents Rate All Reportable Incidents (a) Onshore Ruptures-only (c) 1.0 1.0 0.8 0.8 Incidents per 1,000 Miles…
  34. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 34
    Employee Safety Statistics (a) KM Lost-time Incident Rate (DART) OSHA Recordable Incident Rate 6 7 Lost-time injuries per 200k hours worked 5.20 6.35 6 OSHA Recordable Incidents per 5 5.70 5 200k Hours Worked 4 4…
  35. Investor Presentation – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 35

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