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UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc.

Kinder Morgan, Inc. · Mar 1, 2016 · 35 slides

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Slides

  1. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 1
    Run For Shareholders, By Shareholders David Michels VP Corporate Finance & Investor Relations March 1, 2016
  2. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 2
    Unparalleled Asset Footprint Largest Energy Infrastructure Company in North America World class asset footprint: Largest natural gas pipeline network in North America Own an interest in / operate over 69,000 miles of natural gas…
  3. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 3
    KMI Overview Management Aligned with Investors; 14% Stake in KMI Simple Public Structure Management / Public Original S/H(a) Float Simple Structure: 317MM (14%) 1,920MM (86%) One equity base Kinder Morgan, Inc. One dividend…
  4. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 4
    Our Strategy Focus on stable fee-based assets that are core to North American energy infrastructure Market leader in each of our business segments Maintaining a strong balance sheet is paramount Our primary investing entity has been…
  5. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 5
    19 Years of Stable Growth Strategy Has Led to Consistent, Growing Results KMP Annual LP DCF per Unit(a) KMI Annual DCF per Common Share(c) 6 5.61 2.50 5.39 5.07 2.14 2.10 4.68 2.00 5 4.43 2.00 4.15 4.25 1.65 4 3.65 1.46 3.38…
  6. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 6
    Capital Invested 54 Billion of Asset Investment & Acquisitions Since Inception(a,c) ( in billions) Total Invested by Type(a,c) Total Invested by Year(b,c) 30 28.8 25.0 11 25 Expansion 20 10 9.8 Acquisition 15 9 10 8 5 - 7…
  7. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 7
    Returns on Invested Capital Consistent Returns Demonstrate Asset Performance, Management Discipline Segment ROI(a): 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Natural Gas Pipes 13.3% 15.5% 12.9%…
  8. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 8
    2016 Budget Guidance Supported by Diversified, Fee-based Cash Flow 2016 Budget Commodity Price Sensitivity KMI 2016 budgeted distributable cash flow available 2016 budgeted coverage of 3.6 billion to common shareholders of 4.7…
  9. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 9
    Segment Overview The Markets that Actually Drive our Business Natural Gas Pipelines 2016 Budgeted Segment 72% interstate pipelines EBDA = 8.0 billion(a) 20% gathering, processing & treating 87% fixed-fee(b) 13% other CO2 S&T KM…
  10. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 10
    KMIs High Quality Cash Flow Not all fee-based cash flow is created equal 2016 Budgeted Segment Composition of 91% EBDA = 8.0 billion(a) Fee-based Cash Flow 3% Commodity- based CO2 S&T 0.3 / Other 6% Hedged…
  11. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 11
    Natural Gas Transportation & Storage 57% of 2016 Budgeted Total Segment EBDA Natural gas transport & storage is KMIs largest business U.S. Natural Gas Supply & Demand(a) (Bcf/d) U.S. natural gas demand expected to rise 27% through…
  12. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 12
    Liquids Transportation, Storage & Handling 33% of 2016 Budgeted Total Segment EBDA(a) Strong Fundamentals & Demand Drivers Highlighting Asset Utilization Stable refined products demand: vital pipeline network connecting refinery /…
  13. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 13
    KMI Counterparty Exposure Strong Customer Credit Profiles Limit KMIs Risk(a) Top 25 Customers(b) Insulated from Market Headwinds Top 25 customers represent 45% of KMIs revenue Scale and Diversification Protect Cash Flows…
  14. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 14
    5-year Growth Capex Program(a) 18.2B of Attractive, Fee-based Projects World class asset footprint has helped secure growth projects with attractive returns, secured by long-term, fee-based contracts with creditworthy counterparties…
  15. UBS Utilities and Natural Gas Conference Presentation – 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 2016 budget price assumptions: 38/Bbl for crude, and…
  16. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 16
    KMI: Attractive Value Proposition Unparalleled asset footprint Diversified energy infrastructure platform with stable, fee-based cash flow Industry leader in all business segments Focus on strong balance sheet and enhanced credit…
  17. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 17
    Appendix
  18. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 18
    Energy Toll Road Security of Cash Natural Gas Products Kinder Morgan Terminals CO2 Pipelines Pipelines Canada Interstate & LNG: take or pay Liquids & Jones Act: Refined products: S&T: primarily Intrastate: 73% take or pay(a)…
  19. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 19
    Incidents & Releases Liquids Pipeline Right-of-way Liquids Pipelines Liquids Pipelines Incidents per 1,000 Miles(a) Release Rate(a) 1.0 50 Barrels per billion barrel miles 0.8 40 Incidents per 1,000 Miles 0.6 0.57 30…
  20. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 20
    Incidents & Releases Natural Gas Pipeline Right-of-way Natural Gas Pipelines Natural Gas Pipelines Incidents Rate All Reportable Incidents(a) Incidents Rate Onshore Ruptures-only(c) 1.0 0.5 0.8 0.4 Incidents per 1,000 Miles…
  21. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 21
    Employee Safety Statistics(a) KM Lost-time Incident Rate (DART) OSHA Recordable Incident Rate 4 3.7 7 6.4 Lost-time injuries per 200k hours OSHA Recordable Incidents per 6 6.1 200k Hours Worked 3 5 4 worked 2 3…
  22. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 22
    Natural Gas Pipelines Segment Outlook Well-positioned connecting key natural gas resources with major demand centers Long-term Growth Drivers: Shale-driven expansions / extensions LNG exports Liquefaction facilities Pipeline…
  23. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 23
    Natural Gas Pipelines Contracted Capacity and Term by Region Contracted Avg. Term Region Service Capacity Remaining Storage 356 Bcf 3 yrs., 7 mos. North Transport 19.1 Bcf/d 5 yrs., 7 mos. Storage 52 Bcf 1 yrs., 10 mos.…
  24. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 24
    Products Pipelines Segment Outlook Opportunities for growth from increased liquids production Long-term Growth Drivers: Miles of Pipe: 9,900 Transmix: 6 facilities with process capability of Increased demand for refined product…
  25. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 25
    Products Pipelines Historical Demand and 2016 EIA Outlook(a) U.S. Refined Product Consumption U.S. Refined Product Demand Outlook 2014 2015 2016E (MMBbl/d) 10 Mogas 0.9% 2.6% 1.1% 9 Distillate 5.5% -1.9% 2.1% 8 Jet Fuel 2.5%…
  26. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 26
    Terminals Segment Outlook Well-located in refinery / port hubs and inland waterways Long-term Growth Drivers: KM Terminal Facilities* Refined product supply and demand growth Bulk 59 Terminals Gulf Coast liquids exports Liquids…
  27. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 27
    Terminals Terminals Segment 76% of 2016 Budgeted Segment EBDA Based on Liquids Business Terminals 2016 Budgeted EBDA Liquids Revenue(a) 79% of liquids revenues secured by 100% take-or-pay contracts Other Fixed monthly advanced…
  28. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 28
    Terminals Houston Ship Channel Market: Worlds largest integrated refined product terminaling system Infrastructure: 43 million barrels of capacity connected to 10 refineries Customers: Refiners, integrated majors, international…
  29. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 29
    CO2 Segment Outlook(a) Own and operate best source of CO2 for EOR Long-term Growth Drivers: Demand for scarce supply of CO2 drives volume and price Expect to maintain current CO2 production levels with minimal incremental…
  30. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 30
    Kinder Morgan Canada Segment Outlook Sole oil pipeline from Oilsands to West Coast / export markets Long-term Growth Drivers: Expand Oilsands export capacity to West Coast and Asia Following successful open season, major…
  31. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 31
    2016 Budgeted Growth Capital (millions) 2016 2015 (a) Growth capital Budget Actual Natural Gas Pipelines 1,565 1,528 CO2 - S&T 9 163 CO2 - EOR 213 449 Products Pipelines 344 431 Terminals 935 854 Kinder Morgan Canada 215…
  32. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 32
    Credit Ratios and Liquidity(a) ( in millions) 2016 Leverage metrics 2012 2013 2014 2015 Budget (b) Net debt to EBITDA 5.4x 5.0x 5.5x 5.6x 5.5x EBITDA to interest 4.0x 3.9x 4.1x 3.5x 3.6x (c) (d) Revolver capacity Long-term…
  33. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 33
    Notes 34
  34. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 34
    Notes 35
  35. UBS Utilities and Natural Gas Conference Presentation – Kinder Morgan, Inc. – slide 35

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