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RBC Capital Markets MLP Conference – Kinder Morgan, Inc.

Kinder Morgan, Inc. · Nov 16, 2012 · 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. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 1
    Companies Run By Shareholders, For Shareholders David Kinder VP, Corporate Development and Treasurer November 16, 2012
  2. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 2
    Forward-Looking Statements / Non-GAAP Financial Measures This presentation contains forward-looking statements. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts.…
  3. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 3
    Kinder Morgan Four Ways to Invest: KMP, KMR, EPB & KMI 640MM Public Kinder Morgan, Inc. (62%) Float KMI (C-corp) 1.037 billion shares (a) Cash Market Equity 35.2B (a) dividends to 315MM Management/ Debt 11.2B (b) shareholders…
  4. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 4
    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,…
  5. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 5
    Unparalleled Asset Footprint 3rd largest energy company in North America with combined enterprise value of approximately 100 billion (a) Largest natural gas network in U.S. Own an interest in / operate over 62,000 (b) miles of…
  6. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 6
    Significant Identified Growth Opportunities Tremendous footprint provides 11B of identified growth projects over next 5 years (a) Approximate Growth Capex (a) Selected Potential (B) Growth Projects TGP Northeast upgrade Natural…
  7. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 7
    Opportunity Set Within Existing Assets Leverages Diverse Energy Themes Pipeline / terminal expansions for Oilsands export to Asia Cochin conversion/ reversal for Northeast power Oilsands dilluent demand growth Pipeline to…
  8. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 8
    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 money,…
  9. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 9
    16 Years of Consistent Growth Total Distributions (GP + LP) (MM) KMP Annual LP Distribution per Unit (b) 4.98 3,500 5.00 4.61 3,118 4.40 GP LP 4.50 4.20 3,000 2,737 4.02 4.00 2,450 (a) 3.48 2,500 2,171 3.50 3.13 3.26 2.87…
  10. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 10
    Significant Historical Returns (a) KMP: 25% CATR Since 96 (b) KMI: 9% CATR Since Inception (e) 4,000 140 RMZ = 117 Dollars KMP = 3,363 Dollars KMI = 116 3,500 120 3,000 100 2,500 UTY= 114 80 S&P 500 = 108 2,000 60 1,500 AMZ…
  11. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 11
    Promises Made, Promises Kept Promises Made Promises Kept KMP Budgeted KMP Actual LP Distribution: LP Distribution: 2000: 1.60 2000: 1.71 2001: 1.95 2001: 2.15 2002: 2.40 2002: 2.435 2003: 2.63 2003: 2.63 2004: 2.84 2004: 2.87…
  12. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 12
    Stable, Diversified Cash Flow Addition of El Paso assets increases natural gas pipeline business mix KMPs natural gas pipelines segment contribution increases from 30% to 38% pro forma for dropdown of TGP / 50% EPNG and FTC…
  13. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 13
    Toll Road-like, Fee-based Business Model Natural Gas Products Kinder Morgan CO2 Terminals Pipelines Pipelines Canada (KMP) (KMP) (KMP/EPB/KMI) (KMP) (KMP) Interstate: virtually all Take or pay, S&T: primarily take or pay minimum…
  14. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 14
    KMP / KMR
  15. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 15
    (KMP/KMR) KMP System Map 15
  16. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 16
    (KMP/KMR) KMPs Diversified Cash Flow 2012 Pro Forma Natural Gas Pipelines 60% interstate Business Mix (a) 40% intrastate (c) CO2 Products Pipelines S&T 55% pipelines 45% associated terminals / transmix CO2 Oil Natural Gas…
  17. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 17
    (KMP/KMR) KMP 2012 Growth Expenditure Forecast Pre-dropdown Post-dropdown = 2.2 billion (a,b,c) = 5.2 billion (a,b,d) CO2 CO2 S&T CO2 Oil S&T Production CO2 Oil 3% Production 8% Natural Gas Natural Gas 28% 6% 14% Pipelines…
  18. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 18
    (KMP/KMR) 30B of Growth Capital Invested at KMP (a,b) ( in billions) Total Invested by Type (a,b) Total Invested by Year (a) 16 5.5 3.3 JV Contributions 5.2 12 5.0 Expansion 8 15.0 4.5 Acquisition 11.9 4.0 4 3.5 3.3 -…
  19. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 19
    (KMP/KMR) How We Have Done: KMP Returns on Capital 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Segment ROI (a): Products Pipelines 11.9% 11.8% 12.8% 12.9% 12.4% 11.6% 11.8% 13.2% 12.5% 13.4% 13.7% 12.9% Natural…
  20. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 20
    EPB
  21. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 21
    (EPB) EPB System Map Rockies: 100% Wyoming Interstate Co. (WIC) 100% Colorado Interstate Gas (CIG) 100% Cheyenne Plains (CPGP) Southeast: 100% Southern Natural Gas (SNG) 100% Southern LNG (SLNG) 21
  22. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 22
    (EPB) Well-positioned in Natural Gas Natural Gas 2012 Highly stable cash flow stream Business Mix Over 90% of revenue comes from capacity reservation charges LNG Average contract life of 8 years Minimal throughput and commodity…
  23. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 23
    KMI
  24. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 24
    (KMI) 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…
  25. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 25
    (KMI) Stable Fee-based Cash Flow, Substantial Growth Opportunities Through MLPs Vast majority of cash flow comes from stable, fixed-fee energy infrastructure 85% from fee-based energy pipelines, storage and ancillary services 15%…
  26. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 26
    (KMI) KMI Remaining Assets Available For Dropdown Plan to move all assets to KMP / EPB over time, except NGPL (a) __________________________ (a) Plan to dropdown all assets to KMP / EPB over time, except for KMI legacy 20% interest…
  27. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 27
    Risks Regulatory (KMP/EPB/KMI) Pacific Products Pipeline FERC / CPUC cases Periodic rate reviews Unexpected policy changes Crude oil production volumes (KMP) Crude oil prices (KMP) 2012 budget assumes 93.75/Bbl realized price on…
  28. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 28
    Attractive Value Proposition Unparalleled asset footprint Highly visible, attractive dropdown inventory at KMI via El Paso pipeline assets Significant, identified growth opportunities across each segment Attractive returns driven by…
  29. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 29
    Appendix
  30. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 30
    (KMP/EPB/KMI) Natural Gas Pipelines Segment Well-positioned connecting key natural gas resource plays with major demand centers Long-term Growth Drivers: Highly visible, attractive dropdown inventory at KMI via El Paso pipeline…
  31. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 31
    (KMP) Products Pipelines Segment Well-located with origin in refinery / port hubs and terminus in population centers Long-term Growth Drivers: Development of shale play liquids infrastructure Condensate transportation,…
  32. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 32
    (KMP) Terminals Segment Well-located in refinery / port hubs and inland waterways Long-term Growth Drivers: 1.6 billion of identified major projects Newbuild and expansion of export coal and petcoke terminals (IMT, Houston,…
  33. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 33
    (KMP) CO2 Segment Own and operate best source of CO2 for EOR Long-term Growth Drivers: Strong demand for CO2 Expansion of CO2 source fields and pipelines Several large, long-term CO2 S&T contracts executed Higher rates and…
  34. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 34
    (KMP) Kinder Morgan Canada Segment Sole oil pipeline from Oilsands to West Coast / export markets Long-term Growth Drivers: Expand Oilsands export capacity to West Coast and Asia TMPL is lowest-cost option for expansion to West…
  35. RBC Capital Markets MLP Conference – Kinder Morgan, Inc. – slide 35

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