Tennessee Gas Pipeline Shipper Meeting October 1 st – 3 rd , 2014 1 1
Forward-Looking Statements / Non-GAAP Financial Measures • This presentation contains forward-looking statements. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts. In particular, statements, express or implied, concerning future actions, conditions or events, future operating results or the ability to generate revenues, income or cash flow or to make distributions or pay dividends are forward- looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future actions, conditions or events and future results of operations of Kinder Morgan Energy Partners, L.P., Kinder Morgan Management, LLC, El Paso Pipeline Partners, L.P., and Kinder Morgan, Inc. may differ materially from those expressed in these forward- looking statements. Many of the factors that will determine these results are beyond Kinder Morgan's ability to control or predict. These statements are necessarily based upon various assumptions involving judgments with respect to the future, including, among others, the ability to achieve synergies and revenue growth; national, international, regional and local economic, competitive and regulatory conditions and developments; technological developments; capital and credit markets conditions; inflation rates; interest rates; the political and economic stability of oil producing nations; energy markets; weather conditions; environmental conditions; business and regulatory or legal decisions; the pace of deregulation of retail natural gas and electricity and certain agricultural products; the timing and success of business development efforts; terrorism; and other uncertainties. There is no assurance that any of the actions, events or results of the forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial condition. Because of these uncertainties, you are cautioned not to put undue reliance on any forward-looking statement. Please read "Risk Factors" and "Information Regarding Forward-Looking Statements" in our most recent Annual Reports on Form 10-K and our subsequently filed Exchange Act reports, which are available through the SEC’s EDGAR system at www.sec.gov and on our website at www.kindermorgan.com. • We use non- generally accepted accounting principles (“non - GAAP”) financial measures in this presentation. Our reconciliation of non- GAAP financial measures to comparable GAAP measures can be found in the appendix to this presentation and on our website at www.kindermorgan.com. These non-GAAP measures should not be considered an alternative to GAAP financial measures. 2 2
Agenda Thursday, October 2 nd , 2014 8:45 a.m. Welcome Sital Mody 8:55 a.m. Pipeline Operations Update Ray Miller 9:30 a.m. Macro Overview and TGP changes Ernesto Ochoa 9:50 a.m. Break 10:00 a.m. Business Development Projects Preston Troutman 10:30 a.m. AccuWeather Winter Forecast 2014/2015 Bob Smerbeck 11:20 a.m. Closing Remarks and Q&A TGP Team 11:45 a.m. Lunch Hill Country Dinning Room 1:00 p.m. Afternoon Activities (As Selected) 6:30 p.m. Social and Dinner Governors Ballroom 7:00 p.m. Dinner Governors Ballroom 3 3
Pipeline Operations Update Ray Miller 4 4
Agenda • TGP System Overview • Winter 2013 / 2014 Summary • Summer Review • Maintenance • 2014 Expansion Projects • Winter 2014 / 2015 Preview • DART / Scheduling Update • Gas & Electric Harmonization 5 5
TGP Facility Map Harrison Storage St 237 St 245 St 261 Niagara Spur Colden H-C Line • Miles of pipe 12,000 miles Storage St 219 • Flow Meters 800 Hebron St 321 • Storage Capacity 92.1 BCF Ellisburg Storage St 315 St 209 Storage • Mainline Linepack 12.5 BCF St 313 Lost Creek St 200 • Winter Peak Day Delivery 10.2 BCF Storage St 110 Broad Run Approximate values St 106 St 87 St 860 Bear Creek Storage St 47 Carthage St 40 Compressor Stations St 823 Storage Fields St 527 St 1 St 409 Donna Line 6 6
Cold New England Weather 1400 1200 1000 Winter 2013/14 HDDs Winter 2012/13 800 Winter 2011/12 30 Year Average 600 400 200 Nov Dec Jan Feb Mar 7 7
2013/2014 Winter Overview • Peak, total system deliveries on Jan 6 of 10.2 BCF • Winter system deliveries increased by about 4.5% over previous winter – Increased deliveries to Pipeline Interconnects – Availability of Marcellus and Utica supply in Market Area • Consistently moved .9 Bcf/d southbound from Pa. through station 219 – .6 Bcf/d southbound through station 200 from Oh. (currently ~1.2 Bcf/d) • Storage cycled to low storage inventory late season – Colden, Ellisburg, and Harrison in the market on power withdrawal – Bear Creek in the field also on power withdrawal • High utilization of compressor stations from Nov through Mar – Emphasis was on maintaining high level of reliability – Station 254 outage impact • More scheduling constraints due to high utilization – Path and point restrictions to firm services – Reduced flexibility for all shippers, particulary in zones 4,5 and 6 8 8
Difficult Operations at Times 9 9
Winter Total System Deliveries 2011-2012 2012-2013 2013-2014 % Change LDC 1,565 1,830 1,986 +8.5% Power 1,388 1,130 1,064 -5.8% Interconnects 3,202 3,924 4,688 +20% Other 491 572 62 -90% TOTAL 6,646 7,455 7,799 +4.5% • All volumes are MDth/d 10 10
Winter New England Deliveries 2011-2012 2012-2013 2013-2014 % Change LDC 1,082 1,324 1,427 +7.8% Power 463 346 267 -23% Interconnects 346 468 1,280 +173% TOTAL 1,889 2,137 2,974 +39% • All volumes are MDth/d 11 11
Winter New England LDC Deliveries 2011 2012 2013 2014 YTD 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec • All volumes are MDth/d 12 12
Winter New England Supply Analysis 4,000 3,500 Utica 3,000 Marcellus 2,500 Rex Dracut 2,000 Distrigas 1,500 Wright 1,000 Shelton Niagara 500 0 08-09 09-10 10-11 11-12 12-13 13-14 Winter Period (Nov – Mar) Average Dth/d 13 13
Winter Days - (%) Restricted Restriction Point Percentage Days Restricted Highly Utilized TGP Paths (November - March) 2013/2014 Sta. 200 77.48% Sta. 245 100% Sta. 261 32.45% Sta. 307 BH 56.29% Sta. 315 BH 93.38% Sta. 321 96.68% MLV 336 80.79% MLV 355 BH 58.94% Sta. 1 BH 52.32% Mahwah 56.29% Rivervale 82.11% 14 14
Winter System Exports 1,000 900 +80% -2% 800 700 600 +15% Canada 500 Mexico 400 300 200 100 0 2011 2012 2013 2014 YTD • All volumes are MDth/d 15 15
2014 Summer Overview • System Demand is basically flat to the previous summer • Market Deliveries increase driven by Pipeline Interconnects – Exports remain strong to Mexico and Canada • System Power Plant demand is slightly lower than previous summer • Market Area Supply continues to increase – Driven by increase in Utica and Marcellus Supply • 200 line southbound volumes through Ohio remain at max available capacity – Currently in the 1.1 – 1.2 Bcf/d Range • 500 line southbound volumes through Sta 860(TN) have increased significantly – Currently in the 700 – 750 mmscf/d range (last year in the 150-200 mmscf/d range) • South Texas Supply remains strong • Firm Storage Service (FSS) continues to track below average 16 16
Summer Total System Deliveries 2012 2013 2014 % Change LDC 840 881 831 -5.6% Power 1,736 1,353 1,276 -5.6% Interconnects 3,214 3,558 4,301 +21% Other 450 540 56 -90% TOTAL 6,240 6,332 6,464 +2% • All volumes are MDth/d 17 17
Summer New England Deliveries 2012 2013 2014 % Change LDC 531 571 556 -2.6% Power 565 542 478 -12% Interconnects 388 393 1,217 +210% TOTAL 1,484 1,506 2,251 +50% • All volumes are MDth/d 18 18
Summer Total System Power Deliveries 2,000 1,800 +21.5% 1,600 +7.5% -22% 1,400 +25% -5.6% Zone 6 1,200 Zone 5 +2.5% Zone 4 1,000 Zone 2 800 Zone 1 600 Zone 0 400 200 - 2008 2009 2010 2011 2012 2013 2014 • All volumes are MDth/d 19 19
Summer New England Supply Analysis 4,000 +46% 3,500 3,000 Dracut +1% Distrigas +12% 2,500 Shelton +54% Wright 2,000 Niagara +99% 1,500 Marcellus Utica 1,000 Rex 500 0 2009 2010 2011 2012 2013 2014 • All volumes are MDth/d 20 20
Summer Days - (%) Restricted Restriction Point Percentage Days Highly Utilized TGP Paths Restricted (April – October) 2014 ( Apr- Sept ) Sta. 1 BH 70.62% Sta. 200 68.93% Sta. 245 98.31% Sta. 307 BH 84.75% MLV 314 BH 33.33% Sta. 315 BH 99.44% Sta. 321 89.27% MLV 355 35.02% Mahwah 96.61% Rivervale 22.60% 21 21
National Storage Activity As of 9-5-2014 BCF 443 Bcf < 2013; 463 Bcf < 5 Yr. Avg. 3.3 – 3.5 Projection 4,000 2.801 Current Inventory 3,500 3,000 2,500 2,000 2000-2001 1,500 2002-2003 2008-2009 2009-2010 1,000 2010-2011 2011-2012 500 2012-2013 5 Year Average 2008-2013 2013-2014 0 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 22 22
National Storage Activity As of 9-5-2014 4,500 4,000 3,500 3,000 2,500 BCF 2,000 1,500 2013-2014 Winter 1,000 Seasonal Record Withdrawal 3.01 Tcf 500 1.97 Injected to date 0 23 23
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