Run By Shareholders, For Shareholders Kimberly Dang Vice President and Chief Financial Officer March 4, 2015
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…
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…
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,…
Unparalleled Asset Footprint Largest Energy Infrastructure Company in North America 3rd largest energy company in N. America with an enterprise value of 130 billion Nearly 18 billion of currently identified organic growth projects…
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 2.00 4.40 4.20 1.74 4.02 1.57 4.00 3.48…
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 10.1 20 10 Acquisition 15 9 10 8 5 7 (b) - 6.6…
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…
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 15% growth over 2014 dividend of 654…
2015 Budgeted Segment Profile Driven by Natural Gas 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…
2015 Growth Expenditure Budget 2015 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 __________________________ Notes:…
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…
Natural Gas Megatrend Strong Natural Gas Footprint & Market Opportunity Set U.S. Natural Gas Projected Supply & Demand(a) Real- time, Long-term Benefits of Footprint Demand (Bcf/d) 2015 2020 2025 LNG exports 0.0 7.3 10.8 Natural…
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…
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…
Appendix
Energy Toll Road Diversified, Fee-based Business Model Natural Gas Products Kinder Morgan Terminals CO2 Pipelines Pipelines Canada Interstate & LNG: take or pay Intrastate: 75% take or pay(a) Take or pay, minimum S&T: primarily…
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…
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…
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…
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…
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…
Hiland Acquisition Establishes Pipeline and Gathering Position in Bakken KMI acquisition of Hiland Partners closed KMI acquired Hiland from its founder, Harold Hamm and certain Hamm family trusts Transaction closed on 2/13/2015 3…
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…
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) Long-term Debt…
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)…
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…
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 0.8 Incidents per 1,000 Miles Incidents…
Employee Safety Statistics(a) KM Lost-time Incident Rate (DART) OSHA Recordable Incident Rate Lost-time injuries per 200k hours worked 6 7 5.20 6.35 6 OSHA Recordable Incidents per 5 5.70 5 200k Hours Worked 4 4…
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