Renewable Natural Gas Growth and CO2 Emission Reduction Strategies slide image

Renewable Natural Gas Growth and CO2 Emission Reduction Strategies

CO2 EOR & Transport Consistently Generate Free Cash Flow Low cash cost structure yields healthy margins through commodity price cycles. Interest in 5 crude fields with 9.2 billion barrels of Original Oil In Place Interest in 3 CO₂ fields with 37 tcf of Original Gas In Place ~1,500 miles of CO2 pipelines with capacity to move up to 1.5 bcfd Doe Canyon Colorado McElmo Dome New Mexico Cortez Bravo Dome KINDER MORGAN CO2 EOR & TRANSPORT FREE CASH FLOW(a) $ millions CO2 pipelines CO2 source fields oil fields ■FCF Uri Benefit ☐ Capex Acquisitions Adj. Segment EBDA crude pipelines $907 permian basin $746 $707 $685 $652 $185 $397 $186 $138 $259 $349 Denver City Sacroc Tall Cotton $489 $358 $466 $423 $426 Katz 2018 2019 2020 2021 2022B Snyder SIZEABLE MARGIN ON OIL PRODUCTION $ per net barrel ■Cash costs Avg. realized oil price Midland El Paso Wink Goldsmith Yates $80 $60 $57.83 $61.14 $49.49 $53.78 $52.71 McCamey Texas Iraan $40 $20 $- 2018 2019 2020 2021 2022B Note: Cash costs & revenue per net oil barrel, including hedges where applicable. Lower cash costs in 2021 were driven by a benefit from returning power to the grid during Winter Storm Uri. See Non-GAAP Financial Measures & Reconciliations for CO2 EOR & Transport Free Cash Flow. a) 2021 Adjusted Segment EBDA & FCF include $138mm benefit from reduced costs attributable to Winter Storm Uri. b) The net CO2 sales figure is corrected to reflect our budgeted volume of 330 mmcfd (original figure presented in our Investor Day materials was incorrectly shown as 392 mmcfd). 27 Net oil production 2022B: 28 mbbld Net CO2 sales 2022B: 330 mmcfd(b) Cash costs $20 / barrel
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