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Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P.

El Paso Pipeline Partners, L.P. · Dec 11, 2013 · 35 slides

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Slides

  1. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 1
    Companies Run By Shareholders, For Shareholders Steve Kean President & Chief Operating Officer December 11, 2013
  2. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 2
    Kinder Morgan Four Ways to Invest: KMI, KMP, KMR & EPB 671MM Public Kinder Morgan, Inc. (65%) Float Market Equity 36.0B (a) Cash Debt 9.8B (b) dividends to KMI 296MM (d) Management/ shareholders (C-corp) (28%) Original S/H…
  3. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 3
    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…
  4. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 4
    Kinder Morgan Unparalleled Asset Footprint 4th largest energy company in North America with combined enterprise value of approximately 105 billion (a) Largest natural gas network in U.S. Own an interest in / operate almost 70,000…
  5. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 5
    17 Years of Consistent Growth at KMP KMP Total Distributions (GP + LP) (MM) KMP Annual LP Distribution per Unit (c) 3,997(a) 6.00 4,000 5.33 (a) GP LP 4.98 3,500 3,230 5.00 4.61 4.40 3,000 2,737 4.20 4.02 2,450 (b) 4.00…
  6. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 6
    Budget Guidance Promises Made, Promises Kept Promises Made Promises Kept KMI Budgeted KMI Actual Dividend: Dividend: 2011: 1.16 (a) 2011: 1.20 (a) 2012: 1.35 2012: 1.40 KMP Budgeted KMP Actual LP Distribution: LP Distribution:…
  7. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 7
    2013 Guidance Supported by Diversified Cash Flow CO2 S&T CO2 Oil Production 5% KMI Forecast: Natural Gas 14% Pipelines KMI 2013 dividend: 1.60/sh (14.3% growth over 2012) Terminals 11% 56% Original budgeted 2013 dividend was…
  8. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 8
    2014 Budget Guidance Supported by Diversified Cash Flow KMI 2014 budgeted dividend: 1.72 per share KMP 2014 budgeted LP distribution: 5.58 per unit Total segment EBDA of over 6.4 billion Assumes WTI oil price of 96.15/Bbl for…
  9. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 9
    Toll Road-like Assets: Predominantly Fee-based with Limited Commodity Exposure Significantly stable cash flow 82% of 2014 budgeted cash flow is fee-based (a) 94% is fee-based or hedged (a) Modest sensitivity to commodity prices and…
  10. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 10
    5-year Project Backlog (a) Over 14 Billion of Currently Identified Organic Growth Projects Tremendous footprint provides over 14B of currently identified growth projects over next 5 years 5-year Growth Capex Backlog (B) 4Q 2013…
  11. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 11
    Vast Opportunity Set Leverages Diverse Energy Themes Pipeline / terminal expansions for Oilsands export to Asia Cochin conversion/ Canadian reversal for natural gas Oilsands diluent demand Northeast power demand growth to…
  12. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 12
    Natural Gas Pipelines Segment Outlook Well-positioned connecting key natural gas resource plays with major demand centers Project Backlog: 2.9 billion of identified growth projects over next five years (a), including: TGP…
  13. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 13
    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…
  14. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 14
    Terminals Segment Outlook Well-located in refinery / port hubs and inland waterways Project Backlog: 2.1 billion of identified growth projects over next three years (a), including: Liquids Edmonton Phase I / II expansions…
  15. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 15
    CO2 Segment Outlook Own and operate best source of CO2 for EOR (a) Project Backlog: Identified growth projects totaling 1.8 billion and 1.2 billion in S&T and EOR (a), respectively, over next five years (b), including: S&T…
  16. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 16
    Kinder Morgan Canada Segment Outlook Sole oil pipeline from Oilsands to West Coast / export markets Project Backlog: 5.4 billion expansion of TMPL TMX 5.4 Billion Expansion Long-term Growth Drivers: Expand Oilsands export capacity…
  17. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 17
    KMP / KMR
  18. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 18
    KMPs Diversified Cash Flow Natural Gas Pipelines 2013E KMP Segment 55% interstate pipelines Earnings before DD&A 31% gathering, processing & treating = 5.7 billion (a) 14% intrastate pipelines & storage Products Pipelines CO2 S&T…
  19. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 19
    KMP 2013 Growth Expenditure Forecast Without dropdown & CPNO With acquisitions acquisition = 3.8 billion (a) = 10.3 billion CO2 CO2 S&T S&T 2% Natural Gas Oil Natural Gas Terminals 7% Pipelines CO2 Oil Pipelines Production…
  20. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 20
    Over 40B of Growth Capital Invested at KMP (a,b,c) ( in billions) Total Invested by Type Total Invested by Year 24 11.0 20 JV Contributions 10.3 16 3.5 10.0 Expansion 12 21.9 9.0 Acquisition 8 15.0 8.0 4 7.0 - Expansions…
  21. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 21
    How We Have Done: KMP Returns on Capital 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 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% Products…
  22. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 22
    EPB
  23. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 23
    EPB System Map Pipelines: 100% Wyoming Interstate Co. (WIC) 100% Colorado Interstate Gas (CIG) 100% Cheyenne Plains (CP) 100% Southern Natural Gas (SNG) 100% Elba Express (EEC) LNG: 100% Southern LNG (SLNG) 24
  24. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 24
    EPB Focused on Natural Gas Pipelines 2013E EPB Segment Natural Gas Earnings before DD&A Highly stable cash flow stream = 1.2 billion (a) 89% interstate pipelines Average contract life = 7 years 11% LNG Average contract life = 19…
  25. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 25
    KMI
  26. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 26
    KMI System Map 27
  27. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 27
    KMI Overview KMI pays 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%…
  28. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 28
    Risks Regulatory (KMP/EPB/KMI) Pacific Products Pipeline FERC / CPUC cases Periodic rate reviews Legislative and regulatory changes Crude oil production volumes (KMP) Commodity prices (KMP) CO2 oil production 2013 budget assumes…
  29. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 29
    Summary KMI, KMP, KMR & EPB: Attractive Value Proposition Unparalleled asset footprint Attractive dropdown inventory Long-term Growth Targets (a) Significant, identified growth Next 3 to 5 Years (2012+) opportunities KMP = 5-6%…
  30. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 30
    Appendix
  31. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 31
    KMR 101 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 reinvestment 5% program (a) 0% Like KMP units,…
  32. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 32
    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…
  33. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 33
    Liquids Pipeline ROW Incident & Release Record Consistent, Better-than-industry Performance Liquids Pipeline Incidents per 1,000 Miles (a) Liquids Pipeline Release Rate (a) 1.0 50 Barrels per billion barrel miles 0.8 40…
  34. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 34
    Natural Gas Pipeline ROW Incident & Release Record Consistent, Better-than-industry Performance Natural Gas Pipeline Incidents Rate (a) 1.0 Incidents per 1,000 Miles 0.8 0.6 0.4 0.2 0.32 0.27 0.27 0.30 0.26 0.13…
  35. Wells Fargo 12th Annual MLP Pipeline Energy Conference – El Paso Pipeline Partners, L.P. – slide 35

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