Tim Bradley President CO Group - Kinder Morgan

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Oil and Gas Segment Production ForecastsProduction expectations tend to grow over time5040302010-605040302010Evolution of Forecasted 2012Production (a) over <strong>Tim</strong>e (MBbl/d, 8/8ths)SACROC Yates Katz Total2006 2007 2008 2009 2010 2011 2012Proved Reserves ProductionForecast (a) (MBbl/d, 8/8ths)KatzYatesSACROCKM FcstDespite oil price volatility, we have replaced allof our oil production and 98% of our HCproduction with new proved reserves for thepast 3 yearsWe expect production to exceed our reservereport over the long-term• Higher recoveries and additional targets addedto inventory at SACROC• Addition of Katz projectCurrent challenge: slow the decline02012 2013 2014 2015 2016__________________________(a) 2007+ Forecasts based on independent consultant NSAI Reserve Report. Excludes minor properties16
Oil & Gas, and Business Unit IRR35%30%25%20%15%10%5%0%10-K + Reserve ReportKatzGas ProcessingP2's, Development CostsS&TAll-in O&G IRR (2000-2021) ~23.7%• Required disclosures in 10-K plus provedreserves cash flows: 14.8%— With unhedged prices, IRR would havebeen 40%• Adding in Katz and Gas Processing excludedfrom disclosures increases IRR to 17.3%• Adding in reserves discounted to P2 by NSAI,and using planned development costs increasesreturn to 23.7%Total Business IRR = 31%• Includes S&T assuming volumes increase withhigher capacity, valued at market pricesAs of 12/31/11, <strong>CO</strong> 2 Segment Cumulative free cashflow is $1.8B+• As of 12/31/12 expect cumulative FCF of $2.8B__________________________Note: Segments shown without elimination17
Page 2: History of CO 2 Group and Looking F
Page 5 and 6: 2012 Expansion Capital Budget - $43
Page 7 and 8: Impact of Oil Price / Volume Varian
Page 9 and 10: CO 2 Source & TransportationGrowing
Page 11 and 12: Demand Growth and Regeneration5-yea
Page 13 and 14: St. John’s CO 2 Source Opportunit
Page 15: Oil & GasBasis for Hedging PolicyOi
Page 19 and 20: SACROC Production & Operations High
Page 21 and 22: Yates ProductionSteady25,00020,0001
Page 23 and 24: Katz CO 2 ProjectSolid oil response
Page 25: Historical Long-term OutlookThe bes

Tim Bradley President CO Group - Kinder Morgan

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