CO2
Jesse Arenivas
President CO2 Group
Kinder Morgan CO2 Asset Map
2
History of CO2 Group and Looking Forward
Track Record – Consistently very close to budget despite inherent volatility
 Shell CO2 formed in 1998, KM share 20%
 Acquired remaining 80% in April 2000
DCF ($MM)(a)
 Acquired SACROC interests June 2000
 Acquired Yates interests in 2001 and 2003
 Ramped up developments at SACROC 2003+
—
—
—
Constructed Centerline pipeline in 2003
Constructed power plant in 2005
Increased oil production 3X+
 Acquired Wink pipeline in 2004
 Acquired Katz field 2006
 Increased SW Colorado CO2 capacity 30% 2008
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$-
 Katz CO2 project: CO2 injection commenced Dec-
2010
 2013-Acquired Goldsmith Landreth San Andres
(GLSAU)
 Tall Cotton (ROZ) CO2 project: CO2 injection
commenced Nov-2014
CO2 S &T
CO2 Flood Properties
Plan for Each Ye ar
Our assets, resources and technologies provide us with growth opportunities
— Strong CO2 demand
— Continued developments at SACROC, Yates, Katz, ROZ, and
GLSAU
__________________________
(a) CO2 Sales and Transportation includes Yates Oil Gathering System (YOGS), CO2 sales profit on own use has not been eliminated
3
Historical Growth
Gross volumes
Oil Production (Bbl/d)
SACROC
YATES
KATZ
GOLDSMITH (a)
SGP NGLs (Bbl/d)
CO2 (MMCF/d)
__________________________
(a) Goldsmith acquired June 2013.
2012
Actual
2013
Actual
2014
Actual
2015
Budget
28,968
20,839
1,722
N/A
30,655
20,360
2,691
1,278
33,155
19,531
3,641
1,257
33,005
19,216
5,025
2,408
18,900
19,520
19,835
19,815
1,212
1,218
1,282
1,421
4
2015 DCF by Asset Group(a)
2015 DCF = $1,327 MM
GLSAU
1%
Katz Tall Cotton
1%
4%
S&T
33%
Sacroc
Complex
48%
Yates
13%
__________________________
(a) Segments shown without elimination.
5
2015 Expansion Capital Budget - $1,237MM
REVISED - $978MM
2015 Budget –
$1,237 Expansion Capital
2015 Budget REVISED –
$978MM Expansion Capital
ROZ Katz
4%
GLSAU 4%
Katz
ROZ 5%
5%
7%
Yates
3%
SACROC
24%
GLSAU
9%
Yates
3%
S&T
58%
__________________________
Note: CO2 purchases and staff overhead are allocated to assets
S&T
47%
SACROC
31%
6
2015 Expansion Program Summary
REVISED Capex Program $978MM(a)
S&T – $454MM Capex (includes $36MM Cap OH & Cap CO2)
$454MM
47%
$300MM
31%
Yates – $33MM Capex(c) (includes $12MM Cap OH & Cap CO2)

Drill 30 wells (one 20 Well East Side HDH Programs and 10 stranded oil wells)

Purchase 95 MMscf/d CO2

Produce 19.3 MBbl/d oil (19.2 MMBbl/d YFU, 0.1 MBbl/d Deep)
$33MM
3%
Katz – $48MM Capex (includes $30MM Cap OH & Cap CO2)
$48MM
5%
$85MM
9%
$54MM
5%





Continue Cow Canyon Development
Wink to Colorado City pipeline
Hovenweep Cooling
St Johns unit and Lobos pipeline development
CO2 Production 1,421 MMCF/d
SACROC Complex – $300MM Capex(b,c) (includes $100MM Cap OH & Cap CO2)








Activate 30 patterns
Expand success of Infill Program and Bypassed Pay
Continuing developing Platform 4 expansion area
Purchase 130 MMcf/d CO2, Produce 33 MBbl/d oil, 19.8 MBbl/d NGL
SACROC Services Reinecke $25MM CAPEX
Activate 7 patterns, Reservoir Conformance Work in 15+ Patterns
Install Additional Compression
Purchase 55 MMcf/d CO2, Produce 5,025 Bbl/d oil
GLSAU - $85MM Capex (includes $22MM Cap OH & Cap CO2)



Drill 32 Wells
Activate 10 Patterns in Phase IV
Purchase 50MMcf/d CO2, Produce 2,408 Bbl/d oil
ROZ - $54MM Capex (includes $20MM Cap OH & Cap CO2)



Drill 4 Wells for Phase 1
Initiate Work on Phase 2; Drill 14 Wells and Begin Facilities Design/Installation starting 3Q
Purchase 50MMcf/d CO2, Produce 1,085 Bbl/d oil
Total $978MM Capex(a)
__________________________
(a) Included in $978 million total capex program are overhead and CO2 purchases, in the aggregate, of approximately $221 million.
(b) Includes minor properties, unallocated costs.
(c) Includes secondary objectives.
7
Impact of Oil Price / Volume Variance on 2015 DCF
($ in millions)
2015 Budget:
Volume +/- 1,000 Bbl/d
SACROC / Katz / GLSAU
Yates
CO2 Volume +/- 50 MMcf/d
$1,327MM
$20.0MM
$10.6MM
$8.8MM
Oil Price +/- $1/Bbl WTI
NGL
CO2
Crude
TOTAL:
$2.1MM
$1.7MM
$3.2MM
$7.0MM
Mid/Cush Diff +/- $1/Bbl
$4.7MM
__________________________
Notes: Unhedged WTI price presumed to average $70/Bbl; WTI-WTS spread = ($2.00)/Bbl / Midland-Cushing spread = ($2.30)/Bbl
NGL price presumed to be $32.90 (47% WTI)
8
Actions Taken/Budget Upsides
Projected oil production increase
1,500 Bbl/d at SACROC
$30MM
Targeted OPEX Savings
$30MM
Potential DCF Impact
$60MM
Targeted CAPEX Savings
$113MM
9
CO2 Source & Transportation
Continuing Business Opportunities – Record Year for SW Colorado Production
Permian Basin CO2 Deliveries
1800
MMcf/d
Other
1600
1400
1200
1000
800
Sheep Mtn.
Bravo Dome
600
400
McElmo Dome &
Doe Canyon
200
0
1986
1993
2000
Permian Basin
 Permian Basin demand continues. No near term
erosion of demand for CO2 in existing CO2
contracts.
 Opportunities in the Permian Residual Oil Zone
(ROZ)
__________________________
Sources: KM estimates, Oil and Gas Journal, EIA, XOM, Dakota Gasification, DRI, Denbury
2007
2014
Domestic EOR
 CO2 Industry EOR activity is steady
10
CO2 Entitlement Volumes
Produced and Sold to our Customers
CO2 KM-share
MMcf/d
800
700
No decline in CO2 demand in 2009
600
500
400
300
200
100
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Significant growth since 2005:
 CAGR: volumes +5.57%
 2015 vs 2014: volumes +9.05%
As a reminder:
 Sales revenues are based on our working
interest entitlement and not deliveries
 KM share of EOR demand consumes ~42% of
our entitled production in 2015
 Elimination: consolidation results in eliminating
profit on sales to ourselves, however we view
our S&T and O&G businesses independently,
and price sales to ourselves at market prices
11
Demand Growth and Regeneration
5-year Contracted CO2 Volumes
CO2 Daily Contract Quantities
2006
MMcf/d
1,200
2015
1,000
Previously higher oil prices increased
long-term demand for CO2

Weighted average contract life with
3rd parties is 10 years
800
600
400
200
1
2
3
4
5
Year
12
Serving the Market
Timely Supply Expansions…
Southwest Colorado CO2 Production
Volumes as of:
SWC Actual Average Daily Volumes
Year-end System Capacity
Capacity of Approved Supply Projects - By Year Completed:
Doe Expansion
Yellow Jacket
Cow Canyon
Required (debottlenecking) Cortez Pipeline Expansion - North
Projects Pending Further Appraisal/Approval:
St Johns
Additional SWC Source Projects
CO2 Recapture Projects
Required (debottlenecking) Cortez Pipeline Expansion - South
Actual Actual Actual Budget
2012
2013
2014
2015
MMcfd
MMcfd
MMcfd
Future
MMcfd Potential
1,212
1,264
1,218
1,358
1,282
1,371
1,421 Projects
1,568
est. cost $MM
$255
$214
$380
$233
65MMcfd
80MMcfd
200MMcfd
est. cost $MM
$982
$184
$80
$97
300MMcfd
60MMcfd
70MMcfd
13
McElmo Dome Field Expansion
Cow Canyon Development
Projected Production Forecast (MMcf/d)

Additional 200 MMcf/d Opportunity
— 1.3 TCF reserves potential
— Known area from past drilling

Project Costs $344MM
— 14 development wells
— Compression & gathering facilities
Successful Pre-Development Phase
— 2 appraisal wells, 3D seismic
— Enabled optimized development plan
— Initial development wells exceeding
expectations
1.6
1.4
Cow Canyon
Gas Rate (BCFD)
1.2
1.0
Base
Decline
0.8
0.6
0.4
Compression
0.2

0.0
1982
1992
2002
2012
2022
2032
2042
Time (Date)
Well Clusters
Cow
Canyon

Plant
Appraisal
Wells
Targeting mid-2015 1st Production
— Progressing on time/on budget
Seismic Boundary
14
St. Johns Development
Project Update
AZ
Cortez CO2 Pipeline

Develops additional 300 MMcf/d
— 1.3 TCF reserves potential
— 450 sq. mi Unit, 300 sq. mi developed
— 216-mile Lobos PL w/interconnect to
Cortez

Successful 2014 Appraisal Program
— 8 Wells, Grav/Mag, 2D Seismic
— Better than expected well performance

Full project cost of $982MM
NM
216 mi Lobos CO2
Pipeline
Pump Stations
St. Johns
Field
—

Includes field development costs and
216 mile Lobos pipeline build cost
Evaluating Timing versus Market Demand
15
Cortez Pipeline Expansion Project
Expansion enables significant growth in CO2 supply to the Permian
Cow
Canyon
Cortez
Station
HW/CC
Booster
Station
La Plata
Station

Increases current capacity from 1.3
Bcf/d to nearly 2.0 Bcf/d

$330 MM (100%) planned investment
— Phase I - $233 MM
— Phase II - $97 MM
CO2
Recapture
Projects
Blanco
Station
Torreon
Station
Placitas
Station
St. Johns
CO2
Development

70 mi 30” loop, 87,000 additional
horsepower


Financed 100% by Cortez Partnership
Phase I Construction start in Feb. 2015
Duran
Station
Caprock
Station
Allred
Station
16
Oil and Gas Segment
Production and DCF
Net Hydrocarbon Production (Mboe/d)
SACROC
60.0
Yates
Katz
GLSAU
Gas Processing
50.0
40.0
30.0
20.0
10.0
0.0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
DCF ($MM)
$1,200
$1,000
$800
$600
SACROC Group
Gross production (Bbl/d)(a)
 SACROC oil
 SGP NGLs
 Yates
 Katz
 GLSAU
2014
33,155
19,835
19,531
3,641
1,257
2015
33,005
19,815
19,216
5,025
2,408
Yates
Katz
GLSAU
ROZ (TC)
$400
$200
$0
Original oil in place (Billion Bbls)
 SACROC
2.8
 Yates
5.0
 Katz
0.23
 GLSAU
0.48
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
DCF(a) ($MM, without Elimination)
 SACROC Group(a,b)
 Yates(a)
 Katz
 GLSAU
 ROZ
__________________________
Notes: Yates DCF does not include contribution from MKM
BOE: Oil and NGL =1:1, Residue gas sales = 6:1
Gas Processing includes net Boe attributable to our plant interests and processing agreements but excluded from reserve report
(a) Includes Secondary Objectives
(b) Includes other minor oil and gas properties near SACROC
2014
778
204
32
(15)
2015
639
170
51
19
10
17
Oil & Gas
Margins and Cost Structure
Oil & Gas Cash Cost Structure(a) ($/Net Boe)
$100
O&G cost structure has strong
correlation to energy prices
$90
$80
$70
 Power is tied to gas prices
$60
$50
$40
 High activity levels have increased
$30
staffing and other service costs –
expect change
$20
$10
$2007
2008
2009
2010
2011
2012
2013
2014
2015 Plan 2015 Plan
with 15%
Cost
Reduction
(c)
Power
Labor
Other
Workover Exp
CO2 Expense
TOTI(b)
WTI (d)
Unhedged Revenue
Hedged Revenue
__________________________
(a) Costs and Revenue per net Boe, including hedges where applicable; includes acquisition and all development costs
(b) Taxes other than income taxes
(c) 15% targeted cost reduction on Workover Expense and Other
(d) WTI Cushing Price, Source: www.eia.gov
 Well-work and rig contracts now being
tied to oil prices
 Purchased CO2 and TOTI(b) are
strongly correlated to oil prices
18
Oil and Gas Segment
Over past 7 years capex 0.5% above plan, oil production 0.1% below plan
Capex ($MM)
Net Oil Production (MBbl/d)
45
$600
40
$500
35
30
$400
25
$300
20
15
$200
10
$100
$-
5
2008
2009
2010
Budget
2011
Actual
__________________________
Note: Capex includes CO2 purchases and capitalized overhead
2012
2013
2014
2008
2009
2010
2011
Budget
2012
2013
2014
Actual
19
SACROC Production & Operations Highlights
Oil Production 2003-2015 (MBbl/d)
40
Actual
Budget
35
30
25
20
15
10
5
0
1Q03
1Q05
1Q07
1Q09
1Q11
1Q13
NGL Production 2007-2014 (MBbl/d)
25
1Q15
2014 – Review
 Oil production 7.1% above plan
— Harvest better than expected
— Infill results significantly better than plan
— Platform 2 and 3 meeting oil expectations
— GOR under control
— Record Year
 NGL production 2.5% above plan
— Strong yields
— Record year
 Costs
— Opex/sustaining capex: $4MM below plan
— Expansion capex: $26 MM above plan
•
•
Additional infill wells drilled
Initiated Reinecke Project
Actual
Budget
20
15
10
5
2015 – Focus
 Expand infill program
 Develop bypass pay opportunity with horizontal
injectors
 Add Platform 3 patterns at the right pace –
manage gas volumes
0
Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14
20
SACROC Unit Harvest Project:
2,200 Bbl/d of incremental oil & ~45 MMcf of additional recycled CO2 to inject

Harvest Production – 2012 and 2013 projects
2-6
2-2
4-3
—
Pump upsizes and reactivations
4-1
8-2
8-4
8-9
8-5
8-1
3-2
9-8
9-15
9-5
9-7
2-4
3-8
3-1
10-6
10-15
10-2
10-11
9-9
9-6
11-7
12-12
10-13
12-13
10-16
10-1
10-9
11-6
12-5
10-8
10-3
10-12
10-4
10-10
9-10
12-4
12-6
7-1
9-1
9-2
9-3
12A-3
11-8
11-3
11-1
9-12
11-12
19-9
21-1
19-1
19-3
19-8
19-5
19-7
19-6
19-11
21-2
19-4
20-15
21-6
21-3
20-7
20-3
20-2
20-14
17-5
17A-3
12A-7
18-2
18-14
17-6
17A-13
18-1
11-4
12-15
12A-9
12A-14
12A-2
12A-8
12A-11
15-6
15-7
13-17
12A-23
12A-1
13-16
11-2 17-10
17-8
17A
17A--11
11A
17A-12
17A-1
18-13
20-10
20-1
11-15
11-14
17A-9
19-10
19-2
19-12
20-11
17-7
12A-21
11-9
11-10
9-4
9-14
12-10
12-19
12A-22A
1155
ST
11-
11-13 11-11A
11-11
12-18
12-20
10-5
9-13
CR 1, CR 2 and GI primary areas of well-work
Potential exists in other areas
Defer to exploit bypass pay opportunities
10-7
10-14
8-3
9-11
—
—
3-3
2-1
3-7
3-4
8-6
8-8
8-7
5-1
6-1

3-6
3-5
17A-4
17A-2
18-9
15-10
15-4
15-9
14-3
15-5
15-11
15-1
15-2
15-8
16-10 15-12
18-5
16-1
16-3 ST
16-5
14-5
18-3
18-12
20-9
16-7
16-9
18-11
18-10
16-3
20-5
20-4
18-7
18-4
20-13
18-6
20-12
16-4
16-6
18-8
20-17
16-2
14-4
16-8
27-19
27-10
27-18
27-13
26-1
26-2A
27-1
27-3
27-2
26-1A
31-13
27-1A
26-2
27-3A
29-3
29-4
26-14
27-4 29-1
26-9
29-7
27-1227-2A
27-11
27-16
27-9 27-15A
26-3A
27-5
26-5
27-7A
26-3
27-15
27-6
27-7
24-6
27-6A
27-5A
27-8
29-5
29-6
24-2 24-7
29-2
29-8
27-17
26-11
28-12
25-1
23-2
26-6
27-14
29-9
25-4
26-10
26-4A
28-2A
28-1A
28-3A
30-1
28-7
26-4
28-1
25-5
28-2_ST
28-3
25-6
30-6
30-8
26-12
30-12
28-2
28-17
28-13 28-9A
28-15
28-9
23-1
25-3
28-11 30-20
25-2A
26-7A
26-8
28-5A
25-2
28-4
28-6A
26-7
28-8
30-2
28-5
28-6
30-13
30-11
40-10
26-13
40-11
28-16
28-1028-18 28-14
30-18
41-2
40-8
34-12A 32-31_ST
40-5
38-4
38-3A
32-3132-29
34-5 34-1334-6A 34-14 34-7A
32-28
38-3
34-1234-8
32-4
34-6
32-25
32-9
40-12
38-6
32-14
38-5
32-17
34-11
34-10
34-7
41-4
41-1
34-934-9A34-15
40-7
32-30 32-22
40-4
35-5
38-2
38-1A
32-23
35-1
40-4A
38-1
35-2A 35-2 35-3A
32-21
35-4
35-3
32-3
32-5
40-13
40-14
32-1632-26
35-6
32-27
36-6
39-7
42-3
42-1
36-8
36-7
40-6
36-5
40-3
39-4
33-13 32-24
39-3A
36-A1
332-2A
3333-5
40-3A
33-7
36-C3
33-9
36-B2
36-D4
39-3
36-C3A36-D4A
40-9
36-B2A
39-6 37-7
33-15 33-11
39-5
39-8
37-8
33-12
42-2
37-5
43-1
40-2
40-1A
39-1
37-1
33-10
37-2A
40-1 39-2A 39-2 39-9
37-11
37-3A
37-2
37-9
33-1
37-3
33-3
49-17
33-4
49-16
37-10
49-12
37-6
33-14
55-7
48-2
49-8
49-6
48-4
33-16
37-4
49-4A
59-5
46-11
58-1A
55-1A 55-3
49-1
49-6A 49-4
5949-13
62
-11A
62623A3
59-1
A1
48-5
58-1
49-14
6249-1_ST55-1
62-8
55-3A
49-9
58-4
55-6
55-5
59-4
49-3A
58-3
62-10
49-7
49-5A
62-13
58-2A
55-4A
46-8
49-2A
49-3
A
A
59-2A
46-10
48-3
58-2
49-5
55-2 55-2
48-148ST1
49-11
62-7
49-15
55-855-4
59-3 59-3A 62-2
59-2
62-9
49-2
64-9
56-25
53-3 53-3A
59-2_ST
56-26
64-8
48-1
56-18
56-17
50-3
62-12
56-16
52-1
50-1_ST
62-11
53-53-1_ST
1
4635
44-4
52-1_ST
46-1
56-1A
46-1
56-8A
56-2
46-9
50-1
63-1
63-5
46-6
56-4_ST56-4
56-8
45-3
56-1
45A-2
62-5
56-6A56-6_ST
56-21 56-2A
50-5A
56-24
52-3
63-4
53-4
56-4A
566
64-3
56-12
56-20
50-5
46-13
56-19
46-14
44-1
46-13_ST
56-14
44-3
56-20A
44-2
50-2A
56-11
45A-1
52-2A
56-356-3A 56-5A
53-2A
46-7
50-4 50-5045-2
2_S2T
_T
N_o-1
_S
No-2
56-7
45-1
46-5
56-9A 56-10A
56-5
46-4
50-6
56-7A
62-6
46-2B
63-2
50-2 52-4 52-2
5663-3
56-23
46-16
64-4
56-1
5 9 56-27
64-5
56-13
99A-1
53-2 56-22 56-22A
99-4
95-1
54-6
46-2A
57-8
93-4
63-6
56-10
51-3
93-3
60-10
5191-1
51-8
511A1 54-1A
8762-6A
87-1
A1
91-8
86-5 76-1
60-3
88-1
60-4
61-2
65-1 65-12
86-1
92-7
57-1
54-1A ST_1 54-2
86-6
65-5
65-8
61-2_ST
92-8
57-2A 57-2
60-3A60-760-4A
54-1A_ST_2
65-13
86-5A
61-3
86-1_Sidetrack 51-5
91-12 91-1A
51-7
54-7
100-2
88-3
91-13
100-1
54-5
86-13
60-9
87-4
99-3
87-3
86-10
65-4A65-4
96-1
65-16 65-10
57-7
57-5
93-2
92-12
9365-11
65-14
61-6
93-11A
61-5
9151-4A
92-11
91-2
65-6
91-77A
92-5
8686-1
5 15A
51-2_ST 54-3
92-6
60-2
54-4
60-1
88-2
87-2
3T
51-6
57-573_S
57-4
86-9A
94-5
61-9
65-2A
60-6
91-14
86-851-4
61-4
92-10
51-2
65-3
102-4
57-6
91-11
102-2
91-15
65-2
65-9
60-861-1
74-12
101-2
65-15 65-7
99B-2A
90-7
74-6
71-9
61-8
97-1
86-9 86-12
60-6_ST
61-7
57-9
94-3
81-2
81-1 74-1
86-17
94-4
92-3A
74-2
90-3
92-4
73-723-2_ST
67-13
69-1A
91-6
91-3
80-1
74-10
89-2
69-2
67-1
71-1
67-4A
71-8
67-6
863A
71-2
86-11
92-3
67-4
90-8
67-7
73-1
74-5 ST_1
67-1A
86-3 82-1
73-8
102-1
69-1 69-7
102-5
91-9
90-5
101-1
92-9
73-5_Sidetrack
102-3
81-4 81-3 74-5 ST_2
99B-1
71-6
86-16
91-5_ST2
67-12
69-5
94-1
74-11
69-8
67-9
94-2
7498-1
74-5
9
86-14
71-5
91-5_ST1
73-WW
-1
-WW7
4
1
91-4_ST
67-10
73-5
89-1A
92-912-1A
67-11
69-3
90-4A
69-44
A
91-5
91-4
92-2
82-2
89-1
73-3 73-WW-2
74-4
69-3A 6974-3
74-_3ST
90-4
81A-1
73-4
71-4
86-4
71-3
91-10
69-6
74-7
67-3A
90-6
67-5A
86-2
107-2
67-2
74-13
74-8
7
71108-1
67-8
89-3
69-9
69-10
110-2
107A-1
120-4
110-1
105-2
85-1383-1 84-1
115-4
75-15
112-1
1151B1
1B2B
W W75-13
115112-2
121-8
117-3
117-2
67-3
77-1_ST
77-2
75-W W -2 75-1 72-3
67-5
120-1 121-2
77-2_ST 75-2
70-1 70-7
121-1 85-1
72-1
84-3
119-2
77-5
68-1
68-3
68-4
75-16
77-1
68-7
70-3A70-3
109-6
84-2
117-7
77-6 75-12
109-5
75-W W-1 72-6
121-985-1485-12
103-1 105-1
115-5
117-5
121-11
110-4A
107-1
85-10
117-6
72-7
77-8
70-6
120-3
70-9
110-3
77-3_ST
121-10
68-10
75-1475-9_ST
77-3
112-4
72-5
112-3
68-11
79-4
110-4
109-8
85-4
115-3
121-4 85-3
75-9
104-3
72-8
115-2
72-4
70-5
104-2
68-5
117-4
68-6
75-4
77-9
119-1
68-8
117-1
72-2
78-1A
106-3
75-3
112-5
120-2 121-5
106-4
77-10
104A-3
104A-1
70-2
85-11
70-4
68-2 68-9
109-4
68-12
75-11
116-6
116-8
109-3A109-3 111-4
119-1_ST
78-1 79-5
70-8
118-19
75-17
118-24
121-6 121-7
77-4
111-3
122-5
118-25
116-3
113-3A
116-4118-12 Side 1
72A-5
113-2
118-6
85-6
72A-7
85-5
79-8
118-1
118-12
104B-1
79-3
116-7
129-1 129-5 129-3
118-5
77-7 75-8
116-3_Sidetrack
132-1
104A-4
122-3
111-6 113-3
75-6 75-6_ST
132-2
109-7
133-1
111-5
104A-2
133-3
118-12_ST 2
114-3
121-3
118-14 118-15
85-9
104-4
114-2
104-1 106-2
109-1 ST
85-8
118-20
75-18
79-779-6_ST
116-5
75-10
106-1 109-2
111-2
118-21
118-27
113-1
118-28
122-6
111-1
72A-6
129-4A
76-4
109-1A
129-2 ST
85-7
118-9
114-1 116116111-7
85-2
2 2A
79-6 79-2 76-2 75-775-WW-3
79-1
118-11
116-1
118-7_ST
132-3
79-11
118-3
133-2
75-5
156-6 109-1
160-2 158-2
122-2
122-1
118-26 118-16
154-1_ST
158-1 156-4
1187
126-1
129-2
156-1
153-9
118-22 118-23
148-9
148-10_ST
124-12
127-1 128-1
154-1
123-7
124-10
130-1
124-11
153-3 148-3
145-5
123-8
153-1
125-4
122-4
148-2
123-4
124-4
154-2
153-14
125-1
156-7
125-3
154-3
118-8
156-1A
118-10
158-5
123-3
148-8
147-8
148-11
156-5
130-2
147-4
145-2_ST
124-9124-3 124-6
123-6
144-2
128-3
153-13
160-4
145-4
123-5
127-3
155-10
118-18
124-13 124-7
158-4
148-5 148-7
153-5 153-7
118-13
155-5
158-3 156-3
147-9A
145-2 144-3
144-5
124-15
125-5
156-2
145-3
155-3
153-12
123-9
124-8
118-4
131-1A
123-2
128-2
1184A
124-17
147-7_ST 147-9
123-1 124-1
118-2
148-4
155-6
125-2
148-1
124-2
159-4A
127-5
124-5
124-14
145157-6
147-9 ST147-2
155-13
145-1A
1
159-3
144-1
148-6
124-16
159-4 157160-11
1574
118-17
4A
153-4
128-4
160-9
157-3
131-2A
127-4 127-2
160-6
155-9
147-7 147-11
142-5
160-3
142-7
151-3
142-4
155-8
147-10
152-3
146-6
142-2 139-139-6
139-2A
144-4
138138-3
153-11
1386 6A
155-15
159-5
155-7
151-1
151-2A
136-3
139-2
149-1
147-5
1364A4
136153-6
142-8
155-16
146-2 142-9
147-6
134-1
151-2
146-4
155-17
153-8 152-3A
139-5 139-3
160-10
139-4
157-5
160-7
151-4
160-5
138-10
160-1 159-1
142-6A142-6
147-13
155-11
159-2 157-2
152-4
146-5
147-12
150-4
155-2_ST
146-8
138-8
140-5
157-1 155-1
146-7
138-2
152-5
155-2
150-2
155-4
153-2 152-2
142-1_ST_1
152-1_ST
142-3 142-1_ST_2
162-2
140-6
135-1 136-5
153-10
155-12
147-1
150-1 147-3
163-2 166-9A
142-1
167-10
138-9
140-1 140-4140-2 140-3
142-10
150-5
166-10A
150-3
161B-1
152-1
146-3
166-6
152-6
166-4 167-8
146-1
141-6
162-5
134-2
163-3
136-9
169-4
169-5
143-3
169-2171-7171-4
137-376-3
1381384 13
173-12
166-10
174-5
141-4
172-4
143-1
173-4
141-1
162-1
176-1A 176-7
173-2
166-17
136-6
163-1
166-15
138-7A
169-7
166-18 167-8_ST
176-1
169-8
171-5
174-4
173-9
176-4
174-1
166-11
138-7
143-1_ST
172-5
136-8
167-7
173-10
162-4
141-5
138-12
169-1
166-7
143-5
138-11
169-3
166-21
137-2
141-7
169-6
176-9
174-7
174-6
171-3
172-3_ST
166-14
176-6
173-7
176-5
164-3
169-9
164-2
137-4
166-5 167-6
136-7
161-3B
143-4
164-1
143-2 141-2
126A-2
141-3 138-1
138-5_ST
167-5
172-7 172-3
173-3 174-3
166-12
174-2
167-4
170-2 170-4
173-11
172-6
162-3
166-8
178-6
178-7
141-8
166-19
176-2
138-5
176-3
166-16
166-20
136-10
176-8
178-2
167-9
137-1
171-2
172-2
178-1 179-2
161A-3
161A-2
180-5
179-1 180-1
173-8
161-2B
168-5 168-4 170-6
165-3
161-1B
173-6
165-2
177-8
165-1
170-3
181-4
175-3
175-1 177-1
166-13
172-8
177-6
182-1
177-2
166-3
180-6
181-1
166-2
166-1 168-1
235A-1
178-8
179-5
180-3
181-3
168-2
178-5
177-9
168-3 170-1
175-1A
240-4
170-5 171-1 171-6 172-1 173-5A 173-13
240-3
177-7
173-1 175-2 175-4
232-2 229-4
242-3
177-4A
232-4
178-3
180-2
2292A 227-4
229-2
180-4
177-5
178-9 178-4 179-4
177-3
227-3
179-3
173-5
182-2
224-2 223-3 223-1
238-4
181-2
238-3
235-4
220-1 220-8 220-3A
235-3
179-6
177-4
216-3 216-7 216-2
178-4_ST
214-2A
203-9
213-2A
214-2
207-6
210-3 210-9 210-4_ST
240-2
2032A2
203-1
240-1
207-4
227-5
203216-2_ST
199-1
220-3
207-1
199-2 188-1
216-3 ST
242-2
238-2
188-4
220-9
183-2
238-1 235-1
223-2
224-1
220-5 220-7 216-6 216-8 216-5
2132
240-5
232-3
210-4
229-3
232-1
210-5
235-2
213-4
207-5 207-1_ST
199-5
241-8
229-1 227-2
203-6 203-5 203-8 199-6
183-1 ST
210-7
239-8
210-8 207-7
227-1
244-2 243-2
220-2
243-4
216-1
241-4
214-1
220-4 216-4
213-1A
225-1
241-3
225-5
228-6
239-4
220-6
199-7
183-1
213-1
188-2
225-10
239-2A 237-2
203-3_ST
233-2
210-1
236-2
203-4 199-4
213-3
210-2 207-2
233-1
230-1 228-2
199-3
243-5
225-7
203-7
207-3
228-1
230-3
243-7
213-5
214-3
188-6 185-1
241-7
217-7
184-1
210-6
228-9
203-3
239-7
221-3
239-6
215-5
230-4
217-4
225-8
221-2
217-2
211-2
243-3
225-2
200-3
244-1 243-1
204-2_ST
241-1
200-2
215-4
217-6
204-3
241-2
228-8
225-9
243-1A
215-3
239-3
208-2 208-4
228-5
212-3
218-2
211-1
204-5
225-6
241-5
243-6
188-5
239-1
241-6
221-5
234-1
237-1
188-3
209-2
239-5
204-2
217-5
217-8
236-1
204-7
231-1
215-6
228-10
233-3
215-7
212-4
186-1
230-2 228-4
212-5
246-1 248-1
217-9
208-3
221-1
187-1
200-5
251A-9
228-3
204-4
225-11 225-4 221-4
248-2
215-1
251-2
217-3 217-1
251A-3 254-3
251-6
215-2
189-2
189-1
212-1
251A-8
228-4_ST 228-7 228-3A
254-1 256-1
205-2
212-2
200-4
225-3A225-3
208-5
221-2221_S
T
219256-3
246-4
200-1
209-1 208-1
1 1
204-6
248-6
263-8
259-1 260-4
258-1
251-13
260-1 262-4
191-2
251-12
263-7
262-4A262-3 263-3
251A-11
204-1
251A-10
264-1 267-4
267-2A
248-4
202-1
248-3
245-5 246-3
269-1A
201-1
246-2
251-1
269-2A 271-1
190-2
271-3
251-4
190-1
263-4
205-1
262-7
263-9 263-5
269-1
251A-7
251A-5
271-1A
206-1
273-4
267-2
263-4_ST
260-5
248-5
254-4
259-35
273-3A
254-2
259269-2
262-5A
256-2
271-3A
256-4
250-3
206-4
252-8
269-5
247-3
2594 2
252-7
263-1A
271-5
247-4
259273-3
252-6
260-2A
269-6
273-5
190-3
2631
2603
262-5
249-2
263-2
267-1A
201-2
262-6A
250-2
267-3
252-1
245-2
263-6
269-4
196-1
252-2
255-1
260-3A
269-3
255-2
260-2
193-1 192-1
252-4
257-1
267-1
273-2
257-4
271-2271-2A
206-6
262-6
273-1A
197-1
194-2
271-4
261-3
261-2
206-2
262A-2A
252-5
261-1
198-1
206-3
262A-2
261-8
273-1
273-2A
195-1
261-1A
247-2
265-2A 265-2265-1
262A-9
247-1
268-2A
249-1
253-4
250-1
255-3
268-3
245-1
272-1
270-1
253-1
272-2
253-2
265-3
268-2
270-2
206A-8
253-3
206-5
198-6
274-2
261-9
274-3
262A-7
206A-9
262A-1
255-4 257-2
206A-7
261-10
198-7
262A-8A
257-3 261-6
255-5
261-4
261-7
261-5
206-7
262A-1A
266-1A
266-2
307-4
304-2
262A-8
307-3
306-4
304-4
268-1
304-6
306-3
304-5
268-4
266-1
270-4
309-2
303-3
270-3
303-2
303-1
293-4
274A-2
272-4
272-3A
303-4
274-4
299-3
274-1
299-5
299-1A
290-2
299-4
299-1
293-2
303-17
304-10 304-9
290-3
309-1
272-3
307-1
289-1 288-1 284-1
307-2
284-2A
306-2
299-9
299-10
280-1
274A-1
280-2
283-1A
277-2A
306-1 304-1
289-2
283-2A
293-3
303-6
303-5
304-3
303-9
283-1
277-1A
303-12
293-1
304-7
304-8
284-2
293-3A
283-2
299-6
277-3
299-8
299-7
282-1
275-1
299-2
284-3A
305-9
305-1 305-3
288-3
280-4
305-5
28035
280284-4
294-1 290-1 288-2
283-3
278-3
305-6
303-8
283-4
303-10
303-14
284-3
303-13
278-2
276-1
301-2
295-1
295-4
301-1
281-2
300-6
291-1
300-1
303-18
291-2
285-3
285-8A
285-9
305-2
305-8
300-5
285-4
305-7
281-3 279-1
295-5
305-4
295-9
303-7
303-11
303-16
303-15
285-8
301-3
291-4
301-4
295-2
300-8
300-7
291-5
285-11
285-10
295-3
320-1
320-8
285-1
320-7
291-3 285-2
320-6
281-1
323-2
323-3
292-1
323-5
302A-3
324-1
302-3
298-1 296-2
302-2
296-1 285-7
298-2
285-6
285-5
286-1
287-1
320-2
320-5
320-3
323-1
320-4
323-4
323-6
324-2
302-4
296-4
285-12
320-9
298298-6
298-43
296-3
323-4A
285A-1
321-1
302-5
321-3
287-2
322-1
285A-2
322-2
302-1
325-1A
325-3
325-5
325-7
325-1
297-4
286B-1 286A-1
325-6
322-3
321-2
322-4
325-2
321-4
325-4
21-5
21-4
20-8
20-6
20-16
22-6
24-3
24-1
24-5A
24-5
22-5
SACROC Unit: All Harvest Projects – Allocated Daily Volumes
(Bbl/d)
245-4
309-6
309-4
309-7
245-3
309-5
309-3
24-4
24-8
SACR
WS2
Area
328-3
327-2
328-2
327-1
326-1
WS1
328-4
328-1
329-1
WS1
327-3
Proje
327-4
329-4327A-1 327A-3
0
329-6327A-2 327A-4
Locat
Oil W
Shut-
329-3
343-1
343-3
344-1
344-2
344-3
Inject
Pre C
CO2-
WS1
WS1
WS1
WS1A
2,33
W
3WS1
W SW
WS1
ShutWate
Shut-
21
SACROC Unit – Bypassed Pay Project
 Middle Canyon re-development (CR 1 and 2)
—
—
—
—
—
Injection began on 8/5/14 – current 30 MMcf/d
78% of injection going into 2 heel patterns
Production exceeding expectations
Injection sleeves can be closed to divert
injection into remaining patterns
Next project – S Platform – drill in March
S Platform
22
SACROC Unit – Infill Drilling Project
 Denser-spaced Platform Drilling Project
—
—
—
—
—
26 GZ PO wells currently producing 3,600 Bbl/d
3 Conventional Infill wells producing 712 Bbl/d
Results indicate that 104 solid prospects exist
Defers pattern activations and extends field life
Success could lead to extension throughout the
field
23
SACROC Unit – Long Range Plan
SACROC Oil Production LRP
 Changes from 2014 plan
40,000
—
35,000
30,000
—
25,000
—
BOPD_Actual
20,000
15,000
BOPD_2015Plan
BOPD_2014 Plan
BOPD_2013 Plan
10,000
5,000
BOPD_2012 Plan
—
—
—
104 Well Platform Infill
Program identified
Chiquita Expansion projects
added
Platform 4, Platform 5 and
West Shore pushed back with
slower activation pace
4 Horizontal Injectors per year
Harvest Operations deferred
19 MMBO added recovery
BOPD_2011 Plan
BOPD_2010 Plan
0
24
Yates Production
Steady
2014 Oil Production (Bbl/d)
25,000
20,000
Oil Production 1.7% below plan
 Oil column is stable
 Continued success in targeted East Side drilling
— Focus deeper completions to minimize gas
15,000
 West Side water-flood success
— Phase I & II above budgeted volumes
10,000
5,000
0
Jan Feb Mar Apr May Jun
Jul
Plan
Aug Sep Oct Nov Dec
Actual
2014 NGL Production (Bbl/d)
1,000
800
600
400
200
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Plan
Strategies to add long-term reserves include:
 Continuing strategy of raising reservoir pressure,
increasing oil swelling and drainage
 Continue Deep East Side horizontal drilling in
targeted areas
 Expanding water-flooding of West Side
 Utilize seismic to develop shallow/deep horizons
 Hydrocarbon miscible pilot (HCM)
— Pilot NGL injection 1/2015
— Next phase 6/2015
— Overall Target - 200 MMB OOIP
Actual
25
Katz CO2 Project
Production Building on Slower Trend
Investment
 $258MM project total, $225MM through 2014
 Continued expectation of 16% recovery and
25.1 MMBbls reserves
Oil Response
 Oil rate improved 3,605 to 3,910 Bbl/d (Dec to Dec)
 2014 Plan 4,646 vs. Actual 3,643 Bbl/d
—
Phase 4-5 delayed response 300 Bbl/d
—
Phase 2-3 underperformed by 700 Bbl/d
•
•

High GOR, Vertical Conformance
Low Water Injectivity
Bbl/d
7000
6000
5000
4000
Successful injector stimulations
3000
Recent Operational Challenges
 High GOR curtailment, pump failures, 65 Bbl/d hurt
 Opex up 20% for power and chemicals
2000
Actuals
2015 Expected Production – 5,025 Bbl/d
 Phase 4-5 response
 Phase 2-3 conformance work
 Increase pattern activations by 14% (44-50)
 Reduce CO2 purchases to 55 MMcf/d
1000
2014 Budget
2015 Budget
0
Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16
26
GLSAU Production
2014 Results:
- Oil Production below plan
- Opex over plan
2013-14 Oil Production (Bbl/d)
3,000
2,500
BOEPD
2,000
1,500
1,000
500
Oil
2014 Budget
Operational and Reservoir challenges:
 Processing rate slower than expected
— Conformance issues
— Severe scale and asphaltenes
— High CO2 production
 High downtime due to impaired wells
 Facility issues inhibiting proper surveillance
0
2015 Expectations and Focus
 Better understanding of the reservoir
—
—
—
—
This is typical San Andres – the oil is there
Determine operating parameters
Improve processing rate
Fix the conformance issues
 Improve well and facility operations
27
GLSAU Production
Strategies to address the challenges:
2015 Oil Plan (Bbl/d)
• Improve Facilities to Aid Surveillance
― Add bulk separation at each satellite
― Add and upgrade test facilities
― Optimize operating parameters
3,000
Oil
2,500
2015 Budget
2,000
BOPD
• Improve Response
― Execute wellwork for the impaired wells
― Improve processing rates
• Infill drill
• Stimulate existing wells (larger frac’s)
― Conformance work
1,500
1,000
500
0
• Costs
― Convert from ESP to gas lift where practical
• Continue Development
― Activate phase 4 (more net pay than 3B)
― 10 pattern activations – new drills + conversions
28
KM ROZ Phase I Project

San Andres ROZ oil saturation
similar to water-flooded main
pay San Andres
 Several significant San Andres
ROZ projects underway in San
Andres
KM ROZ Phase I Production Forecast
Phase 1
—
—
—
—
—
$88.3 MM CAPEX
Nine 20-acre 5 spots
4.7 MMBO recoverable reserves
Phi-H better than average
7,127 acres leased
Project Execution
—
Injection ahead of schedule
—
Production Facilities on schedule
—
Oil Response Expected in 2Q 2015


November 2014
January 2015
__________________________
(a) Phi = Reservoir Porosity, H = Reservoir Thickness
29
KM ROZ Future Development
 6 Section Development


Based On 3D Seismic, Cores, Well Logs
194 Patterns






194 WAG Injectors
233 Producers
Peak Oil Rate: 25,000 Bbl/d (2021)
~ 93.5MM STBO Reserves
12% Recovery Factor
647 BCF CO2 Purchases
30
Oil and Gas Segment Production Forecasts
Production expectations tend to grow over time
Evolution of Forecasted 2015
Production(a) over Time (MBbl/d, 8/8ths)
60
50
40
30
20
We expect production to exceed our reserve
report over the long-term
 Higher recoveries and additional targets added
to inventory at SACROC
 New Technologies at Yates and perched oil
found
10
-
SACROC
Yates
2010
Katz
2011
2012
GLSAU
2013
2014
Total
2015
Proved Reserves Production
Forecast (MBbl/d, 8/8ths)
Current challenge: slow the decline
 More efficient operations
 New opportunities
 Improve OpEx at Katz and GLSAU
80
60
GLSAU (a)
40
Katz (a)
Yates (a)
20
SACROC (a)
0
2015
2016
2017
2018
KM Fcst
__________________________
(a) Forecasts based on independent consultant Reserve Report. Excludes minor properties
31
Oil & Gas, and Business Unit IRR
15%
10%
5%
0%
__________________________
Note: Segments shown without elimination
Total
S&T
P2's, Development Costs
20%
Gas Processing
25%
10-K + Reserve Report
30%
All-in O&G IRR (2000-2024) ~22.5%
 Required disclosures in 10-K plus
proved reserves cash flows: 16.9%
 Adding in Gas Processing excluded
from disclosures increases IRR to
17.9%
 Adding in reserves discounted to P2 and
using planned development costs
increases return to 22.5%
Total business IRR (2000-2024) ~28.3%
 Includes S&T assuming volumes
increase with higher capacity, valued at
market prices
As of 12/31/14, CO2 Segment cumulative
free cash flow is $3.6B+ (net of
cumulative invested capital)
32
Response to Current Oil Price Environment
Focus on Costs
SACROC, Yates and S&T have low cost structures
GLSAU Katz Tall Cotton
1%
1%
4%
 Cash lifting cost per BOE
 SACROC $11.62
 Yates $7.90
S&T
37%
Sacroc
Complex
45%
 Projects profitable at current prices
Other EOR
 Higher OPEX per barrel
 Most investments profitable at current prices
Yates
12%
 Cost Reduction opportunities targeted in
both CAPEX and OPEX
33
2015 Projects – Price Sensitivity
IRR % at Variable Oil Price
$ / BO
40
50
60
70
SACROC Infill
35%
68%
100%
100%
SACROC- Bypass
35%
65%
100%
100%
--
8%
11%
21%
Yates HDH
23%
40%
57%
74%
GLSAU 4a
3%
8%
12%
16%
Tall Cotton Ph 2
--
12%
20%
28%
Cow Canyon(a)
21%
21%
21%
29%
SACROC P4
__________________________
(a) Economics assume contract weighted average floor price
34
2015 Projects – Price Sensitivity
15% Cost Reduction
IRR % at Variable Oil Price
$ / BO
40
50
60
70
SACROC Infill
70%
82%
98%
100%
SACROC- Bypass
50%
79%
98%
100%
--
10%
20%
30%
Yates HDH
34%
58%
76%
87%
GLSAU 4a
7%
11%
20%
30%
Tall Cotton Ph 2
6%
16%
26%
32%
Cow Canyon(a)
27%
27%
27%
38%
SACROC P4
__________________________
(a) Economics assume contract weighted average floor price
35
KM CO2 Current Outlook
Development Plans 2015-2023

—
—
—


Capex
Overhead
(MMBoe)
(MM) (d)
(MM)
SACROC
74
$1,278
$268
28
$234
$95
KATZ
16
$246
$218
—
—
GLSAU
24
$661
$326
ROZ
48
Continue HDH programs and gravity drainage depletion plan
Initiate HCM pilot
CO2 S&T
Katz
Total
Continue development plans at Katz
Implement conformance program
Implement conformance program
Phases 1 & 2 responding
ROZ
Evaluate pilot performance
Initiate Phase II full field development
Develop additional project prospects
CO2 S&T
—
—
—
Increase capacity in existing source fields (McElmo and Doe Canyon)
Evaluate timing for St John’s
Find and develop new source fields and develop new markets
189
$1,252
$654
$1,810
$192
$5,481
$1,753
DCF ($MM)(b)
GLSAU
—
—
—

Net BOE (a)
YATES GROUP
—
—

Continue platform development plan; production forecast is based on
existing recovery expectations
Initiate Bypass Pay development in South Platform area
Exploit infill program
KM Share Cap CO2 &
Yates Group
—
—

10 Year
SACROC Group Forecast
$2,200
$2,000
$1,800
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$-
Katz
Goldsmith
ROZ
SACROC
Com plex
Yates
S&T (c)
__________________________
(a) Net BOE = Net Crude plus Net NGLs plus Net Residue Gas sold divided by 6.
(b) 2015 = Budget, 2016 at $65/Bbl, 2017 at $70/Bbl, 2018+ at $75/Bbl; cost metrics based on 2014 run rate; development plans may change in different price scenarios
(c) CO2 profits not eliminated from S&T
(d) KM Share Capex is inclusive of Capitalized CO2 and Capitalized OH
36