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RBC MLP Conference – Kinder Morgan, Inc.

Kinder Morgan, Inc. · Nov 18, 2015 · 29 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 MLP Conference – Kinder Morgan, Inc. – slide 1
    Run By Shareholders, For Shareholders David Michels VP Corporate Finance & Investor Relations November 18, 2015
  2. RBC MLP Conference – Kinder Morgan, Inc. – slide 2
    KMI Overview Management Aligned with Investors; 14% Stake in KMI Simple Public Structure Management / Public Original S/H(a) Float(b) 317MM (14%) 1,920MM (86%) Kinder Morgan, Inc. (C-corp, NYSE: KMI) Greatly simplified…
  3. RBC MLP Conference – Kinder Morgan, Inc. – slide 3
    Unparalleled Asset Footprint Largest Energy Infrastructure Company in North America 3rd largest energy company in N. America with an enterprise value of 100 billion 21.3 billion of currently identified organic growth projects…
  4. RBC MLP Conference – Kinder Morgan, Inc. – slide 4
    Relative Performance Well-positioned Assets, Stable Cash Flow Weathering the High Seas(a) Low commodity price sensitivity Oil last closed above 90/Bbl on 10/6/2014 2015 budgeted EBDA is 86% fee-based, 95% Oil significantly lower…
  5. RBC MLP Conference – Kinder Morgan, Inc. – slide 5
    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…
  6. RBC MLP Conference – Kinder Morgan, Inc. – slide 6
    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…
  7. RBC MLP Conference – Kinder Morgan, Inc. – slide 7
    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 10.2 20 10 Acquisition 15 9 10 8 5 7 (b) (c) -…
  8. RBC MLP Conference – Kinder Morgan, Inc. – slide 8
    Returns on Invested Capital Consistent Returns Demonstrate Asset Performance, Management Discipline 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Segment ROI(a): Nat. Gas Pipes-KMP 13.3% 15.5% 12.9%…
  9. RBC MLP Conference – Kinder Morgan, Inc. – slide 9
    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…
  10. RBC MLP Conference – Kinder Morgan, Inc. – slide 10
    2015 Budget Guidance Supported by Diversified, Fee-based Cash Flow 2015 Budget Current Outlook KMI 2015 budgeted dividend of 2.00 per KMI 2015 dividend of 2.00 per share share Excess dividend coverage of 300 million 15% growth…
  11. RBC MLP Conference – Kinder Morgan, Inc. – slide 11
    2015 Budgeted Segment Earnings Profile Driven by Natural Gas Natural Gas Pipelines 2015 Budgeted Segment 71% interstate pipelines EBDA = 8.2 billion(a) 21% gathering, processing & treating 8% intrastate pipelines & storage CO2…
  12. RBC MLP Conference – Kinder Morgan, Inc. – slide 12
    KMIs High Quality Cash Flow Not all fee-based cash flow is created equal 2015 Budgeted Segment Composition of 86% EBDA = 8.2 billion(a) Fee-based Cash Flow 5% Commodity- CO2 S&T based 0.4 /…
  13. RBC MLP Conference – Kinder Morgan, Inc. – slide 13
    5-year Project Backlog(a) 21.3 Billion of Currently Identified Organic Growth Projects Tremendous footprint provides 21.3B of currently identified growth projects over next 5 years 5-year Growth Capex Backlog (B) 4Q 2015 2016 2017…
  14. RBC MLP Conference – Kinder Morgan, Inc. – slide 14
    Natural Gas Megatrend Strong Natural Gas Footprint & Market Opportunity Set U.S. Natural Gas Projected Real- time, Long-term Supply & Demand(a) (Bcf/d) Benefits of Footprint Demand 2015 2020 2025 Natural Gas Segment Asset Footprint…
  15. RBC MLP Conference – Kinder Morgan, Inc. – slide 15
    Business Risks Regulatory Products Pipeline FERC rate cases Natural Gas FERC rate cases Legislative and regulatory changes CO2 crude oil production volumes Commodity prices 2015 budget price assumptions: 70/Bbl for crude, and…
  16. RBC MLP Conference – Kinder Morgan, Inc. – slide 16
    Summary Largest energy infrastructure company in North America with unparalleled asset footprint Diversified and stable, fee-based cash flow Industry leader in all business segments Insulated from commodity price changes Highly…
  17. RBC MLP Conference – Kinder Morgan, Inc. – slide 17
    Appendix
  18. RBC MLP Conference – Kinder Morgan, Inc. – slide 18
    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%…
  19. RBC MLP Conference – Kinder Morgan, Inc. – slide 19
    2015 Growth Capital Expenditure Forecast ( in millions) 2015 2015 Growth capital Forecast Budget Natural Gas Pipelines 1,390 2,002 CO2 - S&T 175 713 CO2 - EOR 459 524 Products Pipelines 454 327 Terminals 880 731 KM Canada 117…
  20. RBC MLP Conference – Kinder Morgan, Inc. – slide 20
    Natural Gas Pipelines Segment Outlook Well-positioned connecting key natural gas resource plays with major demand centers Project Backlog: 9.1 billion of identified growth projects over next five years(a), including: TGP Northeast…
  21. RBC MLP Conference – Kinder Morgan, Inc. – slide 21
    Products Pipelines Segment Outlook Opportunities for growth from increased liquids production Project Backlog: 1.7 billion of identified growth projects over next four years(a), including: UTOPIA KMCC extensions Palmetto Double…
  22. RBC MLP Conference – Kinder Morgan, Inc. – slide 22
    Terminals Segment Outlook Well-located in refinery/ port hubs and inland waterways Project Backlog: 2.7 billion of identified growth projects over next four years(a), including: Terminals network expansion in Houston Ship Channel…
  23. RBC MLP Conference – Kinder Morgan, Inc. – slide 23
    CO2 Segment Outlook Own and operate best source of CO2 for EOR(a) Project Backlog: Identified growth projects totaling 0.6 billion and 1.8 billion in S&T and EOR, respectively, over next five years(b), including: S&T Southwest…
  24. RBC MLP Conference – Kinder Morgan, Inc. – slide 24
    Kinder Morgan Canada Segment Outlook Sole oil pipeline from Oilsands to West Coast/ export markets Project Backlog: 5.4B Trans Mountain Pipeline expansion (TMEP) Long-term Growth Drivers: Expand Oilsands export capacity to West…
  25. RBC MLP Conference – Kinder Morgan, Inc. – slide 25
    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…
  26. RBC MLP Conference – Kinder Morgan, Inc. – slide 26
    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)…
  27. RBC MLP Conference – Kinder Morgan, Inc. – slide 27
    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…
  28. RBC MLP Conference – Kinder Morgan, Inc. – slide 28
    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…
  29. RBC MLP Conference – Kinder Morgan, Inc. – slide 29
    Employee Safety Statistics(a) KM Lost-time Incident Rate (DART) OSHA Recordable Incident Rate Lost-time injuries per 200k hours worked 5 7 4.9 6.4 6 OSHA Recordable Incidents per 4 5.2 5 200k Hours Worked 3 4 2 3…

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