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Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P.

KINDER MORGAN ENERGY PARTNERS, L.P. · Feb 12, 2014 · 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. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 1
    Companies Run By Shareholders, For Shareholders Kimberly Dang Vice President and Chief Financial Officer February 12, 2014
  2. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 2
    Kinder Morgan Four Ways to Invest: KMI, KMP, KMR & EPB 668 MM Public Kinder Morgan, Inc. (64%) Float Market Equity 35.8B (a) Cash Debt 9.8B (b) dividends to KMI 300 MM (d) Management/ shareholders (C-corp) (29%) Original S/H…
  3. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 3
    KMR 101 Discount Has Narrowed (Again), But Still Wide 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…
  4. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 4
    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…
  5. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 5
    Kinder Morgan Unparalleled Asset Footprint 3rd largest energy company in North America with combined enterprise value of approximately 105 billion (a) Largest natural gas network in North America Own an interest in / operate…
  6. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 6
    18 Years of Consistent Growth at KMP KMP Total Distributions (GP + LP) (MM) KMP Annual LP Distribution per Unit (c) (a) (a) 5,000 6.00 5.58 4,499 5.33 4,500 GP LP 4.98 4,017 5.00 4.61 4,000 4.40 4.20 3,500 3,230 4.02 4.00 3.48…
  7. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 7
    Significant Historical Returns (a) KMP: 23% CATR Since 96 (b) KMI: 8% CATR Since Inception (e) 4,000 KMP = 3,586 150 Dollars Dollars 3,500 125 3,000 S&P 500 = 143 100 2,500 UTY = 131 RMZ = 130 2,000 75 KMI = 126 1,500 AMZ…
  8. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 8
    Guidance Promises Made, Promises Kept Promises Made Promises Kept KMI Budgeted KMI Actual Dividend: Dividend: KMI has exceeded 2011: 1.16 (a) 2011: 1.20 (a) its dividend target 2012: 1.35 2012: 1.40 in each of past 3 yrs.…
  9. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 9
    2014 Guidance Supported by Diversified Cash Flow CO2 S&T CO2 Oil Production 6% KMI Budget: Natural Gas 14% Pipelines KMI 2014 dividend: 1.72/sh (8% growth over 2013) Terminals 12% 54% Fully-consolidated year-end 2014 debt /…
  10. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 10
    5-year Project Backlog (a) 14.8 Billion of Currently Identified Organic Growth Projects Tremendous footprint provides 14.8B of currently identified growth projects over next 5 years 5-year Growth Capex Backlog (B) 2014 2015 2016…
  11. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 11
    KMPs Diversified Cash Flow Natural Gas Pipelines 2014E KMP Segment 53% interstate pipelines Earnings before DD&A 34% gathering, processing & treating = 6.4 billion (a) 13% intrastate pipelines & storage Products Pipelines CO2 S&T…
  12. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 12
    42B of Growth Capital Invested at KMP (a,b) ( in billions) Total Invested by Type (a,b) Total Invested by Year 24 11 20 Expansion 10.0 16 10 Acquisition 12 23.3 9 18.3 8 8 4 7 6.6 (b) - Expansions Acquisitions 6 5 4.6…
  13. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 13
    How We Have Done: KMP Returns on Capital 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 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% 11.6%…
  14. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 14
    EPB Focused on Natural Gas Pipelines 2014E EPB Segment Natural Gas Earnings before DD&A Highly stable cash flow stream = 1.3 billion (a) 85% interstate pipelines Average contract life = 8 years (b) 15% LNG Average contract life =…
  15. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 15
    KMI Overview KMI pays a 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%…
  16. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 16
    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 2014 budget assumes…
  17. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 17
    Summary KMI, KMP, KMR & EPB: Attractive Value Proposition Unparalleled asset footprint Long-term Growth Targets Diversified midstream energy KMI 3-year targeted dividend / platform provides stable, fee-based share CAGR of about 8%…
  18. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 18
    Appendix
  19. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 19
    KMP 2014 Growth Capital Budget ( in millions) 2014E Growth Capital Budget = 3.6 billion CO2 S&T Natural Gas Pipelines CO2 Oil 15% Production 28% 15% 18% 22% Terminals Products 2% Pipelines KM Canada…
  20. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 20
    EPB 2014 Growth Capital Budget ( in millions) 2014 2013 Budget Actual Growth capital Expansion 103 111 Contributions to JVs 66 - Subtotal 169 111 Acquisitions 972 - Total growth capital 1,141 111 21
  21. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 21
    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…
  22. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 22
    KMP Acquires Jones Act Tankers for 962 Million Transaction Overview On 1/17/2014, KMP closed its acquisition of American Petroleum Tankers (APT) and State Class Tankers (SCT) 962 million in cash Immediate and long-term accretion to…
  23. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 23
    The Value of the Platform Original Asset Kinder Morgan Crude & Condensate Pipeline (KMCC) May 2011 Kinder Morgan announced a 220 million investment to convert 113 miles of an existing under-utilized natural gas pipeline and build 65…
  24. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 24
    Natural Gas Pipelines Segment Outlook Well-positioned connecting key natural gas resource plays with major demand centers Project Backlog: 2.7 billion of identified growth projects over next five years(a), including: LNG…
  25. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 25
    Products Pipelines Segment Outlook Opportunities for growth from increased liquids production Project Backlog: 1.1 billion of identified growth projects over next two years (a), including: Cochin reversal / conversion Eagle Ford…
  26. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 26
    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: Liquids Edmonton Phase 1 & 2 expansions BOSTCO…
  27. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 27
    CO2 Segment Outlook Own and operate best source of CO2 for EOR (a) Project Backlog: Identified growth projects totaling 1.8 billion and 1.5 billion in S&T and EOR (a), respectively, over next five years (b), including: S&T…
  28. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 28
    Kinder Morgan Canada Segment Outlook Sole oil pipeline from Oilsands to West Coast / export markets Project Backlog: 5.4 billion expansion of TMPL Long-term Growth Drivers: Expand Oilsands export capacity to West Coast TMX 5.4…
  29. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 29
    EPB Has Strong Contracted Cash Flow Profile Contract Expiration Volume (MDth/d) (a) 2019 and 2014 2015 2016 2017 2018 Beyond Total CIG 270 428 1,689 191 178 1,855 4,611 WIC 265 589 121 225 528 1,925 3,653 Cheyenne Plains 7 465…
  30. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 30
    KMP CO2 Asset Summary KMP Remaining CO2 Reserves Interest Location Deliverability Operator McElmo Dome 45% SW Colorado 20+ years KMP Doe Canyon 87% SW Colorado 20+ years KMP Bravo Dome 11% NE New Mexico 10+ years Oxy KMP…
  31. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 31
    Incidents & Releases Liquids Pipeline Right-of-way Liquids Pipeline Incidents per 1,000 Miles (a) Liquids Pipeline Release Rate (a) 1.0 50 Barrels per billion barrel miles 0.8 40 Incidents per 1,000 Miles 0.6 30 0.4…
  32. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 32
    Incidents & Releases Natural Gas Pipeline Right-of-way Natural Gas Pipeline Incidents Rate (a) 1.0 Incidents per 1,000 Miles 0.8 0.6 0.4 0.32 0.30 0.30 0.27 0.27 0.2 0.13 0.13 0.04 - 2006 2007 2008 2009 2010 2011…
  33. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 33
    Employee Safety Statistics KM Lost-time Incident Rate (DART) OSHA Recordable Incident Rate 5 7 6.45 Lost-time injuries per 200k hours worked 4.45 6 OSHA Recordable Incidents per 6.35 4 5 200k Hours Worked 3 4 2…
  34. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 34
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  35. Companies Run By Shareholders For Shareholders – KINDER MORGAN ENERGY PARTNERS, L.P. – slide 35

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