Tim Bradley President CO Group - Kinder Morgan

ENERGY PARTNERS, L.P.SACROC Production & Operations HighlightsBOPD40,00035,00030,00025,00020,00015,00010,000Oil Production 2001-20102010ActualBudget2009 – ReviewOil production exceeded plan• Sub-Pump performance continued to improve• Compressor run-time improved from 91.5% to94.7%• High graded pattern selection• Injection rates higher than expected – curtailedpattern activations from 46 to 265,00000.90.80.70.60.50.40.30.20.10.0Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10Sub-pump ImprovementsFailure RateAverage Bbls off2007 2008 2009300025002000150010005000Costs below plan• Opex/Sustaining Capex: 31 MM$• Expansion Capex:89 MM$• Lower rig costs, goods and services• Cost reduction efforts• Lower activity level due to pattern selections2010 - Focus• Costs, Vendors beginning to push increases• Add patterns at the right pace, manage gasvolumes• Continue to increase run-timetime• Continue Conformance improvement projects8