el paso 05_22%20Yardley_MLP%20Investor%20Confr_FINAL(Web)

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  • 1. El Paso Pipeline Partners James C. Yardley President & Chief Executive Officer El Paso Pipeline GP Company, L.L.C. 2008 MLP Investor Conference May 22, 2008
  • 2. Cautionary Statement Regarding Forward-Looking Statements This presentation includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. El Paso Pipeline Partners has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this presentation, including, without limitation, the ability to obtain necessary governmental approvals for proposed pipeline projects and to successfully construct and operate such projects; operating hazards, natural disasters, weather-related delays, casualty losses and other matters beyond our control; the risks associated with recontracting of transportation commitments; regulatory uncertainties associated with pipeline rate cases and other tariff filings; actions taken by third-party operators, processors and transporters; conditions in geographic regions or markets served by El Paso Pipeline Partners and its affiliates and equity investees or where its operations and affiliates are located; the effects of existing and future laws and governmental regulations; competitive conditions in our industry; changes in the availability and cost of capital; and other factors described in El Paso Pipeline Partners’ (and its affiliates’) Securities and Exchange Commission filings. While these statements and projections are made in good faith, El Paso Pipeline Partners and its management cannot guarantee that anticipated future results will be achieved. Reference must be made to those filings for additional important factors that may affect actual results. El Paso Pipeline Partners assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made, whether as a result of new information, future events, or otherwise. 2
  • 3. Investment Highlights El Paso is the premier U.S. natural gas pipeline company Strong Sponsorship Alignment of interests (67% ownership + IDRs) 90%+ revenue from capacity reservation charges Stable Cash Flow Average contract life of more than 8 years Strategic growth vehicle for El Paso Well located, high-quality assets Growth Vehicle Significant contracted organic growth projects Growth through potential acquisitions - third party, drop down or both Financial Strong and flexible financial position Flexibility 3
  • 4. MLP Opportunities High Price stability Cash Flow Stability Interstate Long-term firm Pipelines demand contracts Stable asset base Majority of alternative MLP’s Low Low Asset Life High 4
  • 5. El Paso Pipeline Partners Primary focus is natural gas transmission and storage assets Three FERC regulated interstate pipelines: 100% of WIC: 800 miles, 2.7 Bcf/d 10% of CIG: 4,000 miles, 3.0 Bcf/d 10% of SNG: 7,600 miles, 3.7 Bcf/d Demand-based revenues from high- quality customers with strong credit profiles Several organic expansions underway WIC CIG SNG Diverse, growing supply regions High connectivity to growing demand regions 5
  • 6. Sponsor Committed to Growth Public Unitholders 28,437,786 EPB Common Units 28,756,250 EPB 27,727,411 EPB Subordinated Units Common Units GP interest and incentive distribution rights 64.8% LP 33.2% LP 2.0% GP Commitment to Growth Organic projects Third-party acquisitions Drop downs from El Paso Most pipeline assets suitable for MLP $2.4 billion NOL at December 31, 2007 6
  • 7. Stable Cash Flow Capacity reservation charges result in cash flow stability 2007 Revenue Composition* WIC CIG SNG Capacity Reservation Charges 98.1% 89.3% 88.3% 1.3% 7.0% 7.4% Variable Charges 0.6% 3.7% 4.3% Interruptible Contracts Weighted Average 10 years 5 years 6 years Contract Life 7 *Excludes liquids and fuel retention revenues
  • 8. Best Positioned Assets Changes 2007–2016 (Bcf/d) -2.0 -1.3 -1.0 -0.7 0.6 -0.8 -1.1 -1.0 0.4 2.7 2.2 1.5 1.1 3.8 0.6 4.9 1.2 0.6 2.1 5.6 0.6 0.4 8 Source: El Paso Corporation
  • 9. Rockies Production Growth Wellhead Volumes in Bcf/d 14 Forecast Denver +3 Bcf/d 12 Piceance Uinta Powder River 10 Overthrust Green River 8 Wind River Big Horn 6 Forecast by 2016 (Bcf/d): 4 High Case 13.3 Mid Case 11.9 2 Low Case 10.4 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1990–2006: Wellhead total data from HIS database 2007–2016: El Paso forecast 9
  • 10. Committed Expansion Projects $ Millions 2008–2009 2010 & Beyond WIC Kanda Lateral Medicine Bow Piceance Basin CIG High Plains Totem Storage SNG Cypress (II&III) Cypress III SESH SESH SS III SS III 100% Share $430 $324 Net to EPB 156 32 Solid inventory of organic growth Note: $ in each column represents costs for each project, shown in the year of expenditure; As of March 31, 2008 10
  • 11. Wyoming Interstate Company—WIC Organic Growth Powder River WIC Medicine Basin Douglass Bow Expansion Compressor $37 MM Station September 2008 330 MMcf/d Greater Green Opal Hub Contracted River Basin Capacity Wamsutter WY Compression Contracted Station Capacity Midpoint Compression Cheyenne Hub Station CO WIC Piceance Lateral Uinta $62 MM Basin Greasewood 4Q 2009 Compressor 220 MMcf/d Station Piceance UT Basin Nearly $100 MM of committed growth projects Note: As of March 31, 2008 11
  • 12. Colorado Interstate Gas—CIG Organic Growth SD WY Major Hubs CIG Storage Fields Powder River High Plains Basin Wind River Basin CIG Greater Green NE CIG High Plains River Basin Pipeline Opal Hub $198 MM (100%) Overthrust Cheyenne Hub November 2008 Basin 900 MMcf/d DJ Basin Uinta Basin CIG Totem Storage $133 MM (100%) Piceance July 2009 UT Basin 200 MMcf/d CO KS Beaver Compressor Station Raton Basin Anadarko NM Basin $166 MM of CIG committed growth projects, $17 MM net to EPB 12 Note: As of March 31, 2008
  • 13. Southern Natural Gas—SNG Organic Growth SNG South System III/ SNG SESH—Phase I SESH Phase II $150 MM $285 MM / $35 MM July 2008 2010–2012 140 MMcf/d 370 MMcf/d / 350 MMcf/d SNG Cypress Phase II & III $20 MM / $85 MM May 2008 / January 2011 115 MMcf/d / 160 MMcf/d $575 MM of committed growth projects, $58 MM net to EPB Note: As of March 31, 2008 13
  • 14. Strong Financial Position $ Millions March 31, 2008 Cash and cash equivalents $ 9 Revolving borrowings 495 Capital lease obligations 8 Total debt 503 Partners’ capital 408 Total capitalization $911 Credit Statistics Debt/capitalization 55% Well positioned for future growth 14
  • 15. The MLP to Own Strong sponsorship Stable cash flow Growth vehicle Financial flexibility WIC CIG SNG Diverse, growing supply regions High connectivity to growing demand regions 15
  • 16. El Paso Pipeline Partners James C. Yardley President & Chief Executive Officer El Paso Pipeline GP Company, L.L.C. 2008 MLP Investor Conference May 22, 2008
  • 17. Appendix
  • 18. El Paso Pipeline Group North America’s Leading Natural Gas Pipeline Franchise Tennessee Wyoming Gas Pipeline Colorado Interstate Interstate Gas Cheyenne Mojave Plains Pipeline Pipeline Southern Natural Gas Elba Island El Paso LNG Natural Gas Mexico Florida Gas Ventures Gulf LNG Transmission (50%) (50%) 19% of total U.S. interstate pipeline mileage 24 Bcf/d capacity (16% of total U.S.) 17 Bcf/d throughput (28% of gas delivered to U.S. consumers) Source: El Paso Corporation based on 2007 data Note: Includes El Paso Corporation and El Paso Pipeline Partners, L.P. 18