Steven J. Kean, President and COO of Kinder Morgan Energy Partners, L.P. (KMP), Interviews with The Wall Street Transcript

Wall Street Transcript

67 WALL STREET, New York - March 21, 2013 - The Wall Street Transcript has just published its Oil & Gas: Master Limited Partnerships Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Increasing Demand for Midstream Assets - U.S. Energy Infrastructure Build Out - Emerging Shale Plays - Oil and Gas Transportation Infrastructure Demand - Master Limited Partnerships Distribution Growth - Outlook for Natural Gas Liquids - Low Treasury Yields and MLP Dividends

Companies include: Kinder Morgan Energy Partners (KMP) and many more.

In the following excerpt from the Oil & Gas: Master Limited Partnerships Report, the President and COO of Kinder Morgan Energy Partners, L.P. (KMP) discusses his company's strategy and the outlook for the industry:

TWST: How has the integration of the El Paso acquisition gone?

Mr. Kean: It has gone very well. We closed that acquisition at the end of May 2012. We said when we announced that transaction that we thought we could generate about $350 million in cost savings annually by putting the two companies together. We are over $400 million per year in cost savings. Again, that's an annual figure, so that's a recurring benefit from the transaction.

I think we've been very pleased with how well the integration has gone, very happy with the assets and with the organization that came with the El Paso acquisition. We started very early on the integration process so that on day one we had our organizations in place, including any transitional aspects of that organization identified, and we had budgets in place. We had made our key choices with respect to systems and policies and procedures, so we had things very much up and running on day one for the combined company. The integration has gone very well.

TWST: Now KMP is in the process of purchasing Copano. I realize this transaction is pending, but to the extent you can, please talk about the strategy behind this acquisition and why it's a good fit for the company.

Mr. Kean: We have worked with Copano for a long time. In fact, we have a large joint venture in the Eagle Ford shale play in South Texas, and we have had a long commercial relationship with the folks at Copano. What we like about the company is that they have been able to build a good business in the gathering-and-processing sector, and they have been able to migrate that business more toward a fee-for-service basis, which is the way we like to do business.

We like to get paid for the transportation and storage of energy commodities; we don't particularly like to be exposed to fluctuations in commodity prices. Copano has done a very good job of building a company in a sector that we're finding increasingly attractive.

On the other hand, Copano, I think, has been...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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