the $641 billion opportunity that could put your retirement on autopilot
TRANSCRIPT
The $641 Billion Opportunity
That Could Put Your Retirement
on Autopilot
Photo credit: Kinder Morgan
The problem
According to analysis by ICF International, America
needs $641 billion in energy infrastructure by
2035.
The problem
That’s $30 billion per year, or triple the previous
estimate.
The problem
Half of that spending will be on natural gas
infrastructure.
The problem
We need 35,000 miles of new transmission pipeline and 303,000 miles of gas
gathering lines.
The problem
That’s enough pipe if laid end-to-end to go around
the earth 13.5 times!
The problem
America’s $641 billion infrastructure build out
could put your retirement on autopilot, if...
The problem
…you invest in the companies that will build and operate these assets.
Energy Transfer Partners
• Owns and operates 35,000 miles of natural gas and natural gas liquids pipelines across the U.S.
NYSE: ETP
Photo credit: Flickr/Nicholas A. Tonelli
Energy Transfer Partners
Key facts:• Operates the largest intrastate pipeline system
in Texas.
• Retail marketing segments consist of over 5,000 convenience stores in the U.S.
• Owns an interest in a variety of other MLPs with assets that include retail propane marketing, refining and gas distribution.
Energy Transfer Partners
Key facts:• Operates the largest intrastate pipeline system
in Texas.
• Retail marketing segments consists of over 5,000 convenience stores in the U.S.
• Owns an interest in a variety of other MLPs with assets that include retail propane marketing, refining and gas distribution.
Energy Transfer Partners
Why invest?• Placed $2.1 billion of new assets into service
over the past year.
• Actively working on more than $2 billion of near-term growth projects.
• Long-term opportunities include LNG and LPG exports.
Energy Transfer Partners
Why invest?• Current assets support a distribution of 6.68%.
• However, Energy Transfer Partners was finally in a position to begin raising its distribution after five years of stagnant payouts.
• Plan is to target ongoing distribution growth in a sustained manner as new projects come online.
Boardwalk Pipeline Partners
• Owns and operates 14,450 miles of pipelines across the U.S.
NYSE: BWP
Photo credit: Flickr/Daniel Oines
Boardwalk Pipeline Partners
Key facts:• Focused on transporting, storing, gathering and
processing natural gas and natural gas liquids.
• Owns and operates 14,195 miles of natural gas pipelines and anther 225 miles of liquids pipelines.
• Boardwalk also owns 207 billion cubic feet of natural gas storage capacity along with 17.6 million barrels of liquids storage capacity.
Boardwalk Pipeline Partners
Key facts:• Focused on transporting, storing, gathering and
processing natural gas and natural gas liquids.
• Owns and operates 14,195 miles of natural gas pipelines and anther 225 miles of liquids pipelines.
• Boardwalk also owns 207 billion cubic feet of natural gas storage capacity along with 17.6 million barrels of liquids storage capacity.
Boardwalk Pipeline Partners
Why invest?• Directly connected to 40 natural gas fired power
generating facilities in 10 states.
• New natural gas-fired power plants forecasted to add 2.2 billion cubic feet to U.S. natural gas demand by 2020.
• Also well positioned for increased industrial demand for natural gas as well as LNG exports.
Boardwalk Pipeline Partners
Why invest?• Completed $2.1 billion of acquisitions or new
projects since 2011. • Current focus on attracting new customers to its
current assets, which could include identifying new uses for its assets.
• Currently pays a 2.53% distribution, which while cut substantially earlier this year offers long-term upside as Boardwalk grows.
Kinder Morgan Energy Partners
• Owns and operates 54,000 miles of pipelines across the U.S.
NYSE: KMP
Photo credit: Kinder Morgan
Kinder Morgan Energy Partners
Key facts:• Kinder Morgan family of companies controls the
largest natural gas pipeline network in North America.
• Also the largest independent transporter of petroleum products and transporter of carbon dioxide in North America.
• Finally, the largest independent terminal operator in North America.
Kinder Morgan Energy Partners
Key facts:• Kinder Morgan family of companies controls the
largest natural gas pipeline network in North America.
• Also the largest independent transporter of petroleum products and transporter of carbon dioxide in North America.
• Finally, the largest independent terminal operator in North America.
Kinder Morgan Energy Partners
Why invest?• Invested $42 billion since 1997 in expansions,
new build projects, joint ventures and acquisitions.
• Delivered an average annual growth rate of 24% over that timeframe.
• Current 5-year project backlog of $16.4 billion.
Kinder Morgan Energy Partners
Why invest?• Project backlog continues to grow as the company
signed on new capacity demand representing $1.5 in new investments just since December.
• Asset base supports a distribution that currently yields 7.28%.
• However, new projects are expected to grow the distribution payout by 5% annually through 2016, with plenty of growth beyond that date.
Bottom line:
America’s $641 billion infrastructure spending boom will fuel tremendous growth in the industry.
It’s a remarkable opportunity to put your retirement on autopilot.
Photo credit: Kinder Morgan
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