Tim Bradley President CO Group - Kinder Morgan

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Oil and Gas SegmentOver past 5 years, capex 10% below plan, oil production 1% below planCapex ($MM)Net Oil Production (MBbl/d)$60050$5004540$4003530$30025$2002015$100105$-2007 2008 2009 2010 2011-2007 2008 2009 2010 2011BudgetActualBudgetActual18
SACROC Production & Operations Highlights40ActualBudget302010-90%80%70%60%50%40%30%20%10%0%Oil Production 2003-2012 (MBbl/d)Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12Sub-pump ImprovementsFailure RateAverage Bbls off-2007 2008 2009 2010 20112,7002,4002,1001,8001,5001,2009006003002011 – Review• Oil production 2.6% below plan— Platform pressure and conformance issues— Injection rates higher than expected –curtailed pattern activations from 35 to 27— Field gas production continues to increase— Sub-pump performance continued toimprove— Compressor run-time improved from 96.2%to 97%• Costs below plan— Opex/sustaining capex: $18MM below plan— Expansion capex: $23MM below plan— Lower rig costs due to lower failure rate— Lower activity level due to pattern selections2012 – Focus• Costs, vendors beginning to push increases• Add patterns at the right pace, manage gasvolumes• Continue Conformance improvement projects• Evaluate 3D for infill opportunities19
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 and 16: Oil & GasBasis for Hedging PolicyOi
Page 17: Oil & Gas, and Business Unit IRR35%
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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