Tim Bradley President CO Group - Kinder Morgan
Tim Bradley President CO Group - Kinder Morgan
Tim Bradley President CO Group - Kinder Morgan
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ENERGY PARTNERS, L.P.Eastern Shelf Pipeline & Katz <strong>CO</strong> 2 Project3025Profitability vs. Oil PriceKM Price Deck = 22.6% IRRKatz Project Details57 Patterns, First injection 1st qtr 2011PipelineIRR (%)20151020% IRR Threshold$56.75 Flat = 20% IRR• 10” 91 miles, $36.3 MMWellwork• CAPEX = $103.2 MM5030 35 40 45 50 55 60 65 70 75800070006000500040003000200010000Oil Price ($/bbl)Katz Project Oil Production/ <strong>CO</strong> 2PurchasesDec‐10Dec‐12Total <strong>CO</strong> 2Purchases= 226.2 BCFDec‐14Dec‐16Peak Production = 7,000 BOPDDec‐18OilDec‐20Dec‐22Dec‐24<strong>CO</strong>2 PurchaseTotal Production =25.1 MMBODec‐26Dec‐28Dec‐30Dec‐32160000140000120000100000800006000040000200000• 66% New Drills (Lower Chance of ProblemWells)• Drilling Rig Contract – Rate tied to oil price• Well tubulars purchased at discountFacilities/Misc.• CAPEX = $42.9 MM• Will Re-inject All Gas (HC & <strong>CO</strong> 2 ); No NGLRecoveryExecution Risks• More Remote Location (Schedule & Costs)• 5-Year Execution Plan (Costs)13
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