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Pm587 Week 1

By | November 2012
Page 1 of 4
9/16/2012
PM 587 Professor Leslie Morgan | Rodney Blackwell | Alex Sam | Kobena Andah|

Kinder Morgan Inc.| Portfolio Management Plan Outline|

I. ORGANIZATION STRATEGIC PLAN

A. Focusing on stable, core energy infrastructure, growing markets in North America 1. fee-based energy transportation and
2. storage assets

B. Increasing utilization of our existing assets
1. while controlling costs,
2. operating safely,
3. employing environmentally sound operating practices;

C. Leveraging economies of scale from incremental acquisitions and expansions of assets that 1. fit within our strategy 2. accretive to cash flow;

D. Maximizing the benefits of our financial structure to create and return value to our stockholders

II. STRATEGIC CAPACITY PLAN

A. Divestiture of $3.3 Billion in assets
1. Rockies Express Pipeline
2. Kinder Morgan Interstate Gas Transmission
3. Trailblazer Pipeline Company

B. Acquisition of $2 Billion in assets
1. Tennessee Gas Pipeline
2. El Paso Natural Gas

C. Construction of New Facilities
1. Phillips 66 project
2. Dewitt County project
3. Wharton County project
III.FLOW CHART OF PORTFOLIO PROCESS
A. There is diversified portfolio which this company manages. 1. Energy transportation
2. Storage Assets

B. There are five business segments also under this process 1. Products pipeline
2. Natural gas pipeline
3. CO2- kMP
4. Terminals-KMP
5. Kinder Morgan Canada-KM

C. The company also operates and has about 37 miles of pipelines and 180 terminals. This pipeline transport natural gas, also refined petroleum products, crude oil and carbon dioxide

IV.PROJECT SELECTION CRITERIA

A. NPV – Net Present Value should be calculated for every project

1. Generally Projects with a positive Net Present Value are projects that get funded...
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