MUFG Oil & Gas Conference Anthony Ashley VP Finance and Treasurer May 7, 2015
KMI Acquisition of KMP, KMR & EPB Simplicity is Bliss Value enhancing combination paves way for significant growth, simplifies structure 77 billion transaction closed 11/26/2014 Greater dividend growth and visibility 2015 budgeted…
Weathering the Storm Well-positioned Assets, Stable Cash Flow KMI Bond Trading Since Oil was last 90(b) Low commodity price sensitivity October 6, 2014 April 30, 2015 Change KMI 24s UST+189 bps UST+205 bps +16 bps 2015 budgeted EBDA…
Credit Strengths Industry-leading Footprint, Business Diversification and Liquidity Best-in-class scale and diversified cash flow Largest energy infrastructure company in North America Significant positions across multiple energy…
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 Maintaining strong balance sheet is…
Unparalleled Asset Footprint Largest Energy Infrastructure Company in North America 3rd largest energy company in N. America with an enterprise value of over 135 billion Over 18 billion of currently identified organic growth…
18 Years of Stable Growth Strategy Has Led to Consistent, Growing Results KMP Annual LP Distribution per Unit(a) KMI Annual Dividend per Share(c) 6.00 5.58 2.50 5.33 4.98 2.00 5.00 4.61 2.00 4.40 4.20 1.74 4.02 1.60 4.00…
Capital Invested 48 Billion of Asset Investment & Acquisitions Since Inception(a,b) ( in billions) Total Invested by Type Total Invested by Year 30 25.7 11 25 21.8 Expansion 10.1 20 10 Acquisition 15 9 10 8 5 7.3 (c) 7 (b)…
Financial Rigor Promises Made, Promises Kept Promises Made Promises Kept KMI Budgeted KMI Actual Dividend: Dividend: 2011: 1.16(a) 2011: 1.20(a) KMI has exceeded 2012: 1.35 2012: 1.40 its dividend target 2013: 1.57 2013: 1.60…
2015 Budget Guidance Supported by Diversified, Fee-based Cash Flow 2015 Budget Commodity Price Sensitivity KMI 2015 budgeted dividend of 2.00 per share 2015 budgeted coverage over declared 15% growth over 2014 dividend of 654…
2015 Budgeted Segment Earnings Profile Driven by Natural Gas 2015 Budgeted Segment Natural Gas Pipelines EBDA = 8.2 billion(a) 71% interstate pipelines 21% gathering, processing & treating 8% intrastate pipelines & storage CO2…
2015 Growth Capital Expenditure Forecast ( in millions) 2015 2015 Forecast Budget Growth capital Natural Gas 1,922 2,002 CO2 - S&T 310 713 CO2 - EOR 452 524 Products 541 327 Terminals 876 731 Kinder Morgan Canada 99 84 (a )…
5-year Project Backlog(a) Over 18 Billion of Currently Identified Organic Growth Projects Tremendous footprint provides 18.3B of currently identified growth projects over next 5 years 5-year Growth Capex Backlog (B) 2015 2016 2017…
Natural Gas Megatrend Strong Natural Gas Footprint & Market Opportunity Set U.S. Natural Gas Projected Supply & Demand(a) Real- time, Long-term Benefits of Footprint Demand (Bcf/d) 2015 2020 2025 LNG exports 0.0 7.3 10.8 Natural…
Business Risks Regulatory Products Pipeline FERC rate cases Natural Gas FERC rate cases Legislative and regulatory changes Crude oil production volumes Commodity prices CO2 oil production 2015 budget assumes 70/Bbl realized price…
Summary Unparalleled asset footprint Diversified energy infrastructure platform with stable, fee-based cash flow Industry leader in all business segments KMI: 4.5% current yield and 10% expected Highly visible, attractive growth…
Appendix
Energy Toll Road Diversified, Fee-based Business Model Natural Gas Products Kinder Morgan Terminals CO2 Pipelines Pipelines Canada Interstate & LNG: take or pay Liquids & Jones Act: Refined products: S&T: primarily Intrastate: 75%…
Natural Gas Pipelines Segment Outlook Well-positioned connecting key natural gas resource plays with major demand centers Project Backlog: 5.3 billion of identified growth projects over next six years(a), including: LNG…
Products Pipelines Segment Outlook Opportunities for growth from increased liquids production Project Backlog: 1.9 billion of identified growth projects over next four years(a), including: UTOPIA Eagle Ford condensate processing…
Terminals Segment Outlook Well-located in refinery / port hubs and inland waterways Project Backlog: 2.3 billion of identified growth projects over next four years(a), including: BOSTCO Phase 3 Alberta crude by rail projects…
CO2 Segment Outlook Own and operate best source of CO2 for EOR(a) Project Backlog: Identified growth projects totaling 1.4 billion and 2.0 billion in S&T and EOR, respectively, over next five years(b), including: S&T Southwest…
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 (TMEP) Long-term Growth Drivers: Expand Oilsands export capacity…
Credit Ratios and Liquidity(a) ( in millions) Credit Ratios 2015 2011 2012 2013 2014 Budget Net debt(b) to EBITDA 4.5x 5.4x 5.0x 5.5x 5.6x EBITDA to interest 5.0x 4.0x 3.9x 4.1x 3.6x Revolver Capacity(c,d) Long-term Debt…
Cost of Capital A whole new ballgame No more incentive distribution rights Prior long-term hurdle rate for accretion (at KMP) = 9% pre-tax New long-term hurdle rate for accretion = 4% after-tax 50% equity(a) x 4.1% yield(b)…
Incidents & Releases Liquids Pipeline Right-of-way Liquids Pipeline Incidents per 1,000 Miles(a) Liquids Pipeline Release Rate(a) 0.8 50 Barrels per billion barrel miles Incidents per 1,000 Miles 40 0.6 30 0.4 20…
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) 0.8 0.20 Incidents per 1,000 Miles Incidents…
Employee Safety Statistics(a) KM Lost-time Incident Rate (DART) OSHA Recordable Incident Rate Lost-time injuries per 200k hours worked 5 7 4.90 6.35 6 OSHA Recordable Incidents per 4 5.20 5 200k Hours Worked 3 4 2…
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