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Investor Presentation – Kinder Morgan, Inc.

Kinder Morgan, Inc. · Jan 28, 2015 · 46 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. Investor Presentation – Kinder Morgan, Inc. – slide 1
    With Change Comes Opportunity January 28, 2015
  2. Investor Presentation – Kinder Morgan, Inc. – slide 2
    Kinder Morgan Investor Conference 8:00 - 8:30 Corporate Overview: Vision Rich Kinder 8:30 - 9:00 Corporate Overview: Operational Excellence Steve Kean 9:00 - 9:15 Corporate Overview: Financial Excellence Kimberly Dang 9:15 - 9:30…
  3. Investor Presentation – Kinder Morgan, Inc. – slide 3
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  4. Investor Presentation – Kinder Morgan, Inc. – slide 4
    Vision Rich Kinder Chief Executive Officer
  5. Investor Presentation – Kinder Morgan, Inc. – slide 5
    KMI: The One and Only Whole New Ball Game Exciting new opportunity New company provides unique investment proposition with strong combination of yield and growth Expect 2.00 per share dividend in 2015 and 10% growth through 2020…
  6. Investor Presentation – Kinder Morgan, Inc. – slide 6
    Thoughts on Lower Commodity Prices Major shift in power OPEC no longer in charge of oil pricing Free market approach in future Impossible to predict when or at what price oil will reach its bottom Price to sustain supply to match…
  7. Investor Presentation – Kinder Morgan, Inc. – slide 7
    Set to Weather the Storm Low commodity price sensitivity 2015 budgeted EBDA is 85% fee-based, 94% fee-based or hedged 1/Bbl change in oil price = 10 million DCF impact; 10/MMBtu change in natural gas price = 3 million DCF impact…
  8. Investor Presentation – Kinder Morgan, Inc. – slide 8
    Weathering the High Seas Oil last closed above 90/Bbl on 10/6/2014 Oil prices significantly lower today, down 50% Safe harbor: KMI has demonstrated strong relative stock performance since 10/6/2014 Stock Price Performance Since…
  9. Investor Presentation – Kinder Morgan, Inc. – slide 9
    Then (Inception) and Now: Stable Platforms, Exceptional Growth ( in millions) Inception (1996)(a) Current (2015) Enterprise Value 349 132,111(b) Consolidated Segment EBDA(c) 36 8,197(d) Total Distributions 17 4,351(d) Total…
  10. Investor Presentation – Kinder Morgan, Inc. – slide 10
    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 investors money,…
  11. Investor Presentation – Kinder Morgan, Inc. – slide 11
    Strategy Proven Effective Creating large, diversified, midstream-focused energy platform 3rd largest energy company, single largest in midstream energy, in North America(a) Market cap of 91 billion and enterprise value of 132 billion…
  12. Investor Presentation – Kinder Morgan, Inc. – slide 12
    KMI Acquisition of KMP, KMR & EPB Simplicity is Bliss Value enhancing combination paves way for significant growth, simplifies structure 77 billion transaction closed 11/26/2014 Greater dividend growth and visibility 2015 budgeted…
  13. Investor Presentation – Kinder Morgan, Inc. – slide 13
    Unparalleled Asset Footprint Largest Energy Infrastructure Company in North America 3rd largest energy company in North America with an enterprise value of more than 130 billion Nearly 18 billion of currently identified organic…
  14. Investor Presentation – Kinder Morgan, Inc. – slide 14
    18 Years of 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 4.40 2.00 4.20 1.74 4.02 1.57 4.00 3.48…
  15. Investor Presentation – Kinder Morgan, Inc. – slide 15
    Returns to Investors Tremendous Total Returns Spanning 18 Years KMI: 14% CATR (2/10/2011-12/31/2014) 175 Dollars Total Return 2014 2-yr 3-yr 5-yr 10-yr 140 KMI 23% 31% 49% n/a n/a KMP 35%(b) 45%(b) 45%(b) 129%(b) 344%(b) 105 KMR…
  16. Investor Presentation – Kinder Morgan, Inc. – slide 16
    Financial Rigor 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 KMI has exceeded its dividend target 2013: 1.57 2013: 1.60…
  17. Investor Presentation – Kinder Morgan, Inc. – slide 17
    2014 Highlights Another Great Year, Capped by Simplifying Transaction Exceeded dividend budget, grew backlog by nearly 3 billion KMI 2014 dividend of 1.74 per share exceeded 1.72 budget (9% growth from 2013) Invested 4.8 billion in…
  18. Investor Presentation – Kinder Morgan, Inc. – slide 18
    2015 Budget Guidance Supported by Diversified, Fee-based Cash Flow 2015 Budget Commodity Price Sensitivity KMI 2015 budgeted dividend of 2.00 per share 2015 budgeted coverage over declared dividend of 654 million (assumes 15%…
  19. Investor Presentation – Kinder Morgan, Inc. – slide 19
    Natural Gas Megatrend Strong Natural Gas Footprint & Market Opportunity Set U.S. Natural Gas Projected Supply & Demand(a) Generates Real-time, Demand (Bcf/d) 2015 2020 2025 KM Natural Gas Asset Footprint Long-term Benefits LNG…
  20. Investor Presentation – Kinder Morgan, Inc. – slide 20
    KMI: Attractive Value Proposition Unparalleled asset footprint Diversified energy infrastructure platform with stable, fee-based cash flow Industry leader in all business segments Highly visible, attractive growth project backlog…
  21. Investor Presentation – Kinder Morgan, Inc. – slide 21
    Operational Excellence Steve Kean President and Chief Operating Officer
  22. Investor Presentation – Kinder Morgan, Inc. – slide 22
    2015 Budgeted Segment Profile 2015 Budgeted Segment Natural Gas Pipelines EBDA = 8.2 billion(a) 71% interstate pipelines 21% gathering, processing & treating 8% intrastate pipelines & storage CO2 S&T Products Pipelines CO2 Oil 61%…
  23. Investor Presentation – Kinder Morgan, Inc. – slide 23
    5-year Project Backlog(a) Nearly 18 Billion of Currently Identified Organic Growth Projects Tremendous footprint provides 17.6B of currently identified growth projects over next 5 years 5-year Growth Capex Backlog (B) 2015 2016…
  24. Investor Presentation – Kinder Morgan, Inc. – slide 24
    KMI to Acquire Hiland Partners for 3 Billion Transaction Announced 1/21/2015 KMI announced a definitive agreement to acquire Hiland Partners KMI to acquire Hiland from its founder, Harold Hamm and certain Hamm family trusts 3 billion…
  25. Investor Presentation – Kinder Morgan, Inc. – slide 25
    Hiland Acquisition: Strategic Acquisition of Premier Midstream Position in the Bakken Strategic Acquisition: Establishes premier midstream platform in the core of the Williston, ND Tioga, ND Bakken, one of the most prolific oil…
  26. Investor Presentation – Kinder Morgan, Inc. – slide 26
    Natural Gas Pipelines Segment Outlook Well-positioned connecting key natural gas resource plays with major demand centers Project Backlog: 4.6 billion of identified growth projects over next seven years(a), including: LNG…
  27. Investor Presentation – Kinder Morgan, Inc. – slide 27
    Products Pipelines Segment Outlook Opportunities for growth from increased liquids production Project Backlog: 1.9 billion of identified growth projects over next two years(a), including: UTOPIA Eagle Ford condensate processing…
  28. Investor Presentation – Kinder Morgan, Inc. – slide 28
    Terminals Segment Outlook Well-located in refinery / port hubs and inland waterways Project Backlog: 2.1 billion of identified growth projects over next five years(a), including: BOSTCO Phase 3 Alberta crude by rail projects…
  29. Investor Presentation – Kinder Morgan, Inc. – slide 29
    CO2 Segment Outlook Own and operate best source of CO2 for EOR(a) Project Backlog: Identified growth projects totaling 1.8 billion and 1.8 billion in S&T and EOR, respectively, over next five years(b), including: S&T Southwest…
  30. Investor Presentation – Kinder Morgan, Inc. – slide 30
    Kinder Morgan Canada Segment Outlook Sole oil pipeline from Oilsands to West Coast / export markets Project Backlog: 5.4 billion expansion of Trans Mountain Pipeline (TMEP) Long-term Growth Drivers: Expand Oilsands export capacity…
  31. Investor Presentation – Kinder Morgan, Inc. – slide 31
    Asset Integrity and Safety are Top Priorities Consistently Better-than-industry Performance Across our Businesses Safe operation of our assets is mission critical to our long-term success Continuous reduction in risk to the public,…
  32. Investor Presentation – Kinder Morgan, Inc. – slide 32
    How We Do It The Management Process Annual Quarterly Monthly Weekly Vision Budget Process Quarterly Business Weekly asset Review meeting Financial Budget Process Quarterly Business Earnings meetings Weekly asset Excellence Investor…
  33. Investor Presentation – Kinder Morgan, Inc. – slide 33
    Incidents & Releases Natural Gas Pipeline Right-of-way Natural Gas Pipeline Incidents Onshore Ruptures-only(a) 0.20 0.16(b) Incidents per 1,000 Miles 0.15 0.10 0.05 0.04 0.02 0.02 0.0 - 2011 2012 2013 2014 LTM…
  34. Investor Presentation – Kinder Morgan, Inc. – slide 34
    Spending on What Matters, and Not What Doesnt Hand-crank 35
  35. Investor Presentation – Kinder Morgan, Inc. – slide 35
    Focusing on What Matters: KMAP Technology Circumferential MFL Data Comparison C Scan Normal Presentation KMAP Presentation for Metal Loss Optimizes Graphic for Seam Weld Defects 36
  36. Investor Presentation – Kinder Morgan, Inc. – slide 36
    Business Risks Regulatory Products Pipeline FERC rate cases Natural Gas FERC rate cases Legislative and regulatory changes Crude oil production volumes Commodity prices Project cost overruns / in-service delays Economically…
  37. Investor Presentation – Kinder Morgan, Inc. – slide 37
    Financial Excellence Kimberly Dang Chief Financial Officer
  38. Investor Presentation – Kinder Morgan, Inc. – slide 38
    Capital Invested 48 Billion of Asset Investment & Acquisitions Since Inception(a,b) ( in billions) Total Invested by Type Total Invested by Year 30 11 25 Expansion 10.1 20 10 Acquisition 15 9 25.7 10 21.8 8 5 7 6.6 (b) -…
  39. Investor Presentation – Kinder Morgan, Inc. – slide 39
    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): Natural Gas PipesKMP 13.3% 15.5% 12.9%…
  40. Investor Presentation – Kinder Morgan, Inc. – slide 40
    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 Current hurdle rate: 50% equity(a) x…
  41. Investor Presentation – Kinder Morgan, Inc. – slide 41
    2015 Growth Expenditure Budget 2015E Growth Capital Budget = 4.4 billion CO2 S&T Natural Gas Pipelines 16% CO2 Oil Production 12% 46% 17% 7% Terminals 2% KM Products Canada Pipelines __________________________ Note:…
  42. Investor Presentation – Kinder Morgan, Inc. – slide 42
    Access to Capital Issued 45.6 billion of capital in public markets since inception in 1997(a) 23.4 billion in equity raised(a) 22.2 billion in long-term debt (41.6 billion net of refinancing)(a) Accessed in difficult markets Sep01…
  43. Investor Presentation – Kinder Morgan, Inc. – slide 43
    Insulated from Market Headwinds Best-in-class scale and diversified cash flow 8.2 billion in EBDA budgeted for 2015 (including KM share of JV DD&A) 2015 budgeted EBDA is 85% fee-based, 94% fee-based or hedged Significant positions…
  44. Investor Presentation – Kinder Morgan, Inc. – slide 44
    CO2 Oil Production Hedge Profile Avoid businesses with direct Net Oil Production commodity exposure Avg Hedge Px WTI & WTS 79.79 78.76 78.70 81.36 (/Bbl)(a) Hedge CO2 BOE equivalent 50 Targeted minimum Net Equity Production…
  45. Investor Presentation – Kinder Morgan, Inc. – slide 45
    Financial Excellence Invested significant capital, opportunities to invest significantly more Disciplined capital allocation Hedge direct commodity exposure Maintain strong balance sheet Strong return on investments…
  46. Investor Presentation – Kinder Morgan, Inc. – slide 46

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