A Compelling Investment Opportunity
Stable, Multi-Year Fee-Based Cash Flow
-96% of 2019B segment cash flow is from take-or-pay and other fee-based contracts or hedged(a)
$5.5
66% Fee-Based Take-or-Pay: highly dependable cash flow under multi-year contracts
Entitled to payment regardless of throughput for periods of up to 20+ years
KINDER MORGAN
25% Other Fee-Based: dependable cash flow, volumes largely independent from commodity price
Supported by stable volumes, critical infrastructure between major supply hubs and stable end-user demand
Products Pipelines (10%): competitively advantaged connection between refineries and end markets has
resulted in stable or growing refined products piped volumes (2011-2019E CAGR of 1.4%) (b)
Natural Gas Pipelines (10%): gathering and processing cash flow underpinned by dedications of economically
viable acreage
Terminals/other (5%): 86% of fee-based cash flow associated with high-utilization liquids assets and
requirements contracts for petcoke and steel
5% Hedged: disciplined approach to managing price volatility
■ CO2 actual oil volumes produced have been within 1.4% of budget over the past 11 years
Substantially hedged near-term exposure
$2.1
■ CO2 oil production hedge schedule (c): Year
Hedged Vol.
Avg. Px.
2019
36,784
$56
2020
23,338
$56
$0.4
$0.4
2021
11,200
$55
4% Commodity Based
2022
5,400
$56
2023
2,100
$54
a) Based on 2019 budgeted Segment EBDA before Certain Items plus JV DD&A. See Non-GAAP Financial Measures and Reconciliations.
b) Kinder Morgan refined products volumes transported. Volumes include SFPP, CALNEV, Central Florida, Plantation Pipe Line (KM share).
c) Average hedge price is WTI only. As of 6/30/2019, the Midland-Cushing differential was also hedged at $(8.08)/bbl on 33,850 bpd for H2 2019 and $0.06/bbl on 26,850 bpd for 2020.
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