NCCI NCCI –– The Coal InstituteThe Coal Institute2013 Summer Trade Seminar2013 Summer Trade Seminar

Kinder MorganKinder Morgan Coal Terminal Coal Terminal Exports and Expansion ProjectsExports and Expansion Projects

Will Browning

Commercial Director and Coal Team Product Leader

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Commercial Director and Coal Team Product Leader

Kinder Morgan Terminals

Forward Looking StatementsForward Looking StatementsForward/Non GAPP Financial MeasuresForward/Non GAPP Financial Measures

F d l ki t t t t t f f Th i l Forward looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. The future results and securities values of Kinder Morgan Inc. and Kinder Morgan Energy Partners, L.P. (collectively known as "Kinder Morgan") may differ materially from those expressed in the g ) y y pforward-looking statements contained throughout this presentation. Many of the factors that will determine these results and values are beyond Kinder Morgan's ability to control or predict. These statements are necessarily based upon various assumptions involving judgments with respect to the futureupon 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 markets conditions; inflation rates; interest rates; the political and economic stability of oil producing nations; energy markets; weather 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 businesselectricity and certain agricultural products; the timing and success of business development efforts; and other uncertainties. You are cautioned not to put undue reliance on any forward-looking statement.

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Largest Midstream Energy Largest Midstream Energy Company in North AmericaCompany in North AmericaCompany in North AmericaCompany in North America

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1998

Kinder Morgan Terminal Network Kinder Morgan Terminal Network -- 20132013

• Approximately 180 terminals in 32 states and in Canada

Largest Terminal Operating Company in North America

• 2 Terminals: Cora Terminal; Grand Rivers Terminal

• 1998 Acquisition of Hall-Buck Marine added 20+ locations2001 A i iti f GATX dd d

1998

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states and in Canada• Serving all major cities and ports• Wide scope of commodity

expertise• Strong alignment with

transportation operators and ports

• 2001 Acquisition of GATX added 12 liquid locations

• Over 50 individual acquisitions executed since 1998

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3

2

po ts

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32

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2

22

2

2

2

2

2

3

2

4

2

3

44 323

Legend

Liquid Locations

Dry and/or Break Bulk Locations

Transload Operations

Product Pipelines Locations

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KM Dry Bulk DiversificationKM Dry Bulk DiversificationDry Bulk Dry Bulk RRevenue evenue BreakoutBreakout

Ores/Metals 29%Other Bulk

8%

Fertilizer ‐Bulk7%

Soda Ash3%

Building Materials3%

Salt2%

Budgeted 2013 Revenue and Tonnage:

Coal24%

Petroleum Coke14%

Ancillaries10%- Total overall revenue = $ 1,462 MM

(Liquid and Dry Bulk Revenues)

- Total dry bulk tonnage = 106 MM tonsDry Bulk Tonnage Breakout Dry Bulk Tonnage Breakout

Total dry bulk tonnage 106 MM tons

- Total coal tonnage = 44 MM tons

C l k @ 24% f b d t d- Coal makes up @ 24% of budgeted 2013 Dry Bulk Revenue

- Coal makes up @ 42% of budgeted

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p @ g2013 Dry Bulk Tonnage

Domestic Coal MarketDomestic Coal Market

U.S. Coal U.S. Coal Plant RetirementsPlant Retirements U.S. Electricity Generation by Fuel, All Sectors

(thousand megawatthours per day)

__________________________Source: EIA, IEA 5

International Markets International Markets -- MetallurgicalMetallurgical

Short Term Demand Forecast forShort Term Demand Forecast forU.S. U.S. Met Coal Met Coal ExportsExports

Long Term Demand Forecast forLong Term Demand Forecast forGlobal Global Met Met Coal Exports Coal Exports

__________________________Source: U.S. EIA, IEA 6

International Markets International Markets -- ThermalThermal

Short Term Demand Forecast for Short Term Demand Forecast for U.S. Thermal Coal ExportsU.S. Thermal Coal Exports

Long Term Demand Forecast forLong Term Demand Forecast forGlobal Thermal Coal Exports Global Thermal Coal Exports

__________________________Source: U.S. EIA, Wood Mackenzie 7

Fairless Hills TerminalFairless Hills Terminal

• Kinder Morgan Fairless Hills Terminal Fairless Hills, Pennsylvania– Owned by Kinder Morgan– Served by Norfolk Southern and

CSX Railroads – 600k tons exported in 2012 – 2 MM tons est nameplate capacity

No expansion planned– No expansion planned

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Pier IX TerminalPier IX Terminal

• Kinder Morgan Pier IX Terminal Newport News, Virginia– Served by CSX Railroad– 14.77 MM tons exported in 2012 – 16.0 MM tons nameplate capacity y– 17.0 MM tons est capacity with

current expansion

KMs expansion is on track for completion and operation by April 1, 20141, 2014

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International Marine Terminal (IMT)International Marine Terminal (IMT)

I t ti l M i T i l• International Marine TerminalMyrtle Grove, Louisiana– Owned by Kinder Morgan

and AEP– 3.8 MM tons exported in

2012 – 10 MM tons nameplate

capacity– Expansion underway for p y

20 mm tons ttl capacity

KMs expansion is on trackKMs expansion is on track for completion and operation by April 1, 2014

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Houston Bulk TerminalHouston Bulk Terminal

• Kinder Morgan Houston Bulk Terminal Houston, TX,– Owned by Kinder Morgan– Served by Union Pacific and

BNSF RailroadsBNSF Railroads – 1.7 MM tons exported in 2012 – 2.7 MM tons coal export

capacitycapacity– No expansion planned

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DeepwaterDeepwater TerminalTerminal

Ki d M D t• Kinder Morgan Deepwater Terminal Houston , TX– Owned by Kinder Morgan– Served by Union Pacific and

BNSF Railroads – 643k tons exported in 2012 – Expansion underway for 10

mm tons ttl capacityp y

KMs expansion is on track for completion and operation bycompletion and operation by April 1, 2014

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Future ProjectsFuture Projects

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Charleston SC Charleston SC -- Kinder Morgan Kinder Morgan Shipyard River Terminal Expansion Shipyard River Terminal Expansion

Kinder Morgan Investment: $230 mmgExpected Coal export throughput : 10 mm tons per year

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West Coast Coal Terminal West Coast Coal Terminal

Port Westward Terminal - KM not continuing site due diligence;

KM looking at other West Coast locations for designing

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g gSite determined not viable for design of a coal export terminal

g ga coal export terminal project for customers

Wh i fWh i fWhat is next for What is next for

Ki d M ?Ki d M ?Kinder Morgan? Kinder Morgan?

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Kinder Morgan Coal Terminal NetworkKinder Morgan Coal Terminal Network

Fairless Hills Terminal

Import and Export Coal

Milwaukee Bulk TerminalDomestic Coal

Cahokia Terminal

West Coast Export Coal

Chesapeake Terminal

Import Coal

Pier IX Terminal

Import and

Domestic Coal

Kellogg Dock Domestic Coal

Current major KM coal terminals2012 Investment = @ $400MM

Cora Terminal Domestic Coal

Import and Export Coal

Grand Rivers Terminal

Domestic Coal

Houston Bulk Terminal

Export Coal

Shipyard River Terminal

Import Coal

Possible future KM export coal terminalsEstimated investment between $200- $500MM

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IMT TerminalExport Coal Deepwater

TerminalExport Coal

KM Coal Terminal Project Summary KM Coal Terminal Project Summary APPROVED DEALS MODELED NEW CAPACITY CAPITALAPPROVED DEALS MODELED NEW CAPACITY CAPITAL

MNTPYIMT - PHASE 1 4.0 $ 49.1

IMT- PHASE 2 2.5 $ 30.6

IMT - PHASE 3 3 3 $70 8IMT - PHASE 3 3.3 $70.8

DEEPWATER 7.0 $138.8

HOUSTON BULK TERMINAL – PHASE 1 & 2 2.0 $ 51.5

PIER IX – SYNFUEL YARD 1.0 $ 29.3$

TOTAL 19.8 $439.20

DEALS IN PRELIMINARY REVIEW MODELED NEW CAPACITY CAPITALMNTPY

SHIPYARD RIVER 10.0 EST $230 +

TOTAL 10.0 EST . $230 +

COMBINED TOTAL 29.8 $ 669.2 (+) ( )

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Ki d M R LLCKi d M R LLC• Owns, manages & leases natural resource properties in North America

Kinder Morgan Resources LLCKinder Morgan Resources LLC, g p p

• Does NOT operate mines

• Key Commercial Structures Sale – Leaseback Reserves Sale – Leaseback Reserves Jointly Acquire New Reserves Sale – Leaseback/Operate Infrastructure Acquisitions

• Target Commodities: Coal Petroleum Natural Gas Aggregates (Limestone, Granite, Clay, Sand, and Gravel) Ores/metals (Copper, Silver, Iron, Lead, Zinc and Mercury) Timber Soda Ash Salt

• Rick Whiting : newly announced President, KM Resources Division 19

C l iC l iU.S. Supply and Demand Contraction

ConclusionConclusionpp y

International Demand Expansion

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THANK YOUTHANK YOU

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