Kinder Morgan Energy Partners Increases Quarterly Distribution to $1.26 Per Unit

  Kinder Morgan Energy Partners Increases Quarterly Distribution to $1.26 Per
  Unit

                Distribution 9% Higher Than Third Quarter 2011

Business Wire

HOUSTON -- October 17, 2012

Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today increased its quarterly
cash distribution per common unit to $1.26 ($5.04 annualized) payable on Nov.
14, 2012, to unitholders of record as of Oct. 31, 2012. This represents a 9
percent increase over the third quarter 2011 cash distribution per unit of
$1.16 ($4.64 annualized) and is up from $1.23 per unit ($4.92 annualized) for
the second quarter of 2012. KMP has increased the distribution 45 times since
current management took over in February 1997.

Chairman and CEO Richard D. Kinder said, “KMP had a strong third quarter with
all five of our business segments reporting better results than in the third
quarter of 2011. In total, KMP produced $1.14 billion in segment earnings
before DD&A and certain items, a 21 percent increase over $0.94 billion for
the same period a year ago. Third quarter highlights included contributions
from the dropdowns of 100 percent of Tennessee Gas Pipeline (TGP) and
50percent of El Paso Natural Gas (EPNG), record export coal volumes in our
Terminals business, strong oil production at SACROC in our CO[2 ]segment and
increased natural gas demand for electric power generation on the TGP system.
Looking ahead, we see significant growth opportunities across all of our
business segments, and we remain very excited about the additional prospects
that we expect KMP to realize from Kinder Morgan, Inc.’s acquisition of El
Paso Corporation, which closed in the second quarter. With our large footprint
of assets in North America, KMP is well positioned for future growth.”

KMP reported third quarter distributable cash flow before certain items of
$455million, up 15 percent from $394 million for the comparable period in
2011. Distributable cash flow per unit before certain items was $1.28 compared
to $1.19 for the third quarter last year. Third quarter net income before
certain items was $574million compared to $451million for the same period in
2011. Including certain items, net income was $383million compared to $216
million for the third quarter last year. Certain items for the third quarter
totaled a net loss of $191million versus a net loss of $235million for the
same period last year.

For the first nine months of the year, distributable cash flow before certain
items was $1.29 billion, up 17 percent from $1.10 billion for the comparable
period in 2011. Distributable cash flow per unit before certain items was
$3.72 compared to $3.40 for the same period last year. Net income before
certain items was $1.58 billion compared to $1.27 billion for the first three
quarters of 2011. Including certain items, net income was $737 million versus
$789million for the same period last year. Certain items for the first nine
months of the year totaled a net loss of $838 million versus a net loss of
$479 million for the comparable period in 2011. The loss, due to certain items
for the first three quarters, was primarily attributable to the re-measurement
of discontinued operations to fair value related to the KMP assets to be
divested in order to obtain Federal Trade Commission approval for Kinder
Morgan, Inc.’s acquisition of El Paso.

Overview of Business Segments

The Products Pipelines business produced third quarter segment earnings before
DD&A and certain items of $185 million, up 4 percent from $178 million for the
comparable period in 2011. This segment currently is expected to end the year
slightly below its published annual budget of 6percent growth.

“The increase in earnings compared to the third quarter of 2011 was driven by
higher earnings at our West Coast and Southeast Terminals,” Kinder said.
“Growth at our West Coast Terminals was attributable to the Carson, Calif.,
tank expansion project which is being completed ahead of schedule, while
growth at our Southeast Terminals was a result of two acquisitions and
increased throughput volumes of refined products and biofuels. Earnings were
also favorably impacted by higher volumes on the Cochin Pipeline reflecting a
completed expansion project and a favorable tax adjustment, as well as better
results from our transmix business due to favorable gasoline and diesel
pricing.” Natural gas liquids (NGL) volumes on Cochin increased by 40 percent
compared to the third quarter last year.

Total refined products volumes decreased 2.5 percent compared to the third
quarter of 2011. Overall segment gasoline volumes (including transported
ethanol on the Central Florida Pipeline) were down 3.5 percent compared to the
third quarter of 2011 attributable to lower volumes on Plantation, Pacific and
CALNEV (reflecting ongoing weak demand, higher retail prices and lower volumes
transported to and on CALNEV due to a competing pipeline), offset somewhat by
an increase in gasoline and ethanol volumes on Central Florida Pipeline of
7.4percent versus the third quarter last year. Overall segment diesel volumes
declined 2.6percent versus the same period last year, although they were up
on Plantation (due to increased volumes related to a refinery upgrade).
Overall segment commercial and military jet fuel volumes were up 1.2percent
compared to the third quarter of 2011, due primarily to a 1.9percent increase
in commercial volumes on Pacific and an increase in military volumes on CALNEV
resulting from a recently completed project in Barstow, Calif.

The Products Pipelines segment handled 8.9 million barrels of biofuels
(ethanol and biodiesel) in the third quarter, up 12 percent from the same
period a year ago. Once again this segment realized significant growth in
biodiesel barrels stored and blended, and continues to make investments in
assets across its operations to accommodate more biofuels.

The Natural Gas Pipelines business produced third quarter segment earnings
before DD&A and certain items of $383 million, up 54 percent from $247 million
for the comparable period in 2011, and is currently expected to exceed its
published annual budget of 19 percent growth due to the dropdowns, as
described below.

“Growth in the third quarter compared to the same period last year was driven
by the TGP and EPNG dropdowns, contributions from our Eagle Ford assets, good
results at Kinder Morgan Treating (benefiting from SouthTex acquisition) and
higher earnings at Fayetteville Express (contracts ramping up),” Kinder said.
Earnings declined on the Texas intrastate pipeline system compared to the
third quarter last year due to timing associated with integrity management
projects and specific repair costs to a well at the Markham storage facility.
KMIGT and Trailblazer also produced lower results.

TGP experienced significantly higher throughput for natural gas fired power
generation in both the third quarter and for the first nine months, as power
operators continued to consume more natural gas. TGP’s gas-fired power
generation volumes increased by 8 percent versus the third quarter of 2011 and
by 20 percent during the first nine months of this year compared to the same
period a year ago.

Overall segment transport volumes (including volumes from acquired pipelines
for all periods) were up 11 percent in the third quarter compared to the same
period last year attributable to higher volumes on Fayetteville Express and
solid transport volumes on the Texas intrastate pipeline system, due in part
to Eagle Ford Gathering volumes. Sales volumes on the Texas intrastates were
up 6 percent compared to the third quarter of 2011.

The CO[2] business produced third quarter segment earnings before DD&A and
certain items of $332 million, up 16 percent from $287million for the same
period in 2011. Due to lower NGL prices, this segment is expected to be
modestly below its published annual budget of 26 percent growth.

“Growth in the third quarter compared to the same period last year was
attributable to excellent oil production at SACROC, strong NGL production at
the Snyder Gasoline Plant, higher production at the Katz Field and higher oil
prices,” Kinder said. “This segment’s results were impacted again by lower NGL
prices, which are now projected to be about 21 percent lower for the full year
than was assumed when the 2012 budget was developed, which equates to a
negative impact of over $50 million.”

The company continued to realize strong NGL production in the third quarter,
producing gross volumes of 18.7 thousand barrels per day (MBbl/d), up 12
percent from the same period in 2011. NGL production declined compared to the
second quarter this year due to planned vessel inspections in September at the
Snyder plant.

Oil production at the SACROC Unit increased to 30 MBbl/d in the third quarter,
up 2percent from the same period last year and 6 percent from the second
quarter this year, and well above plan. Production continued to be relatively
stable at the Yates Field, which produced 20.6 MBbl/d in the third quarter,
about a 4 percent decline compared to the same period last year and flat
versus the second quarter this year, and slightly below plan. Production at
the Katz Field was 1.8 MBbl/d in the third quarter, up significantly from 0.5
MBbl/d for the same period last year, but flat with the second quarter this
year and well below plan. The average West Texas Intermediate (WTI) crude oil
price for the third quarter was $92.25 per barrel compared to a budgeted
projection of $93.60 for the same period.

This segment is an area where KMP is exposed to commodity price risk, but that
risk is partially mitigated by a long-term hedging strategy intended to
generate more stable realized prices. The realized weighted average oil price
per barrel for the quarter, with all hedges allocated to oil, was $88.64
versus $70.43 for the third quarter of 2011. The realized weighted average NGL
price per barrel for the second quarter, allocating none of the hedges to
NGLs, was $44.27 compared to $68.86 for the same period last year.

The Terminals business produced third quarter segment earnings before DD&A and
certain items of $184 million, up 2 percent from $181million for the
comparable period in 2011, and is currently expected to meet its published
annual budget of 8percent growth. Growth for the quarter was evenly
distributed among organic sources and acquisitions.

“Internal growth in this segment was led again by strong export coal volumes
across our terminal network, including new shipments at our Houston bulk
terminals,” Kinder said. Export coal volumes increased by 32 percent (up 1.2
million tons) compared to the third quarter of 2011, while overall coal
throughput declined by 8 percent. For the first nine months of this year,
export coal volumes increased by 45 percent (up 4.9 million tons) versus 2011,
and overall coal throughput is up 2 percent.

“Segment earnings also received a boost from good results at our liquids
terminals on the Houston Ship Channel and in New York Harbor (resulting from
increased volumes, new contracts and incremental tank capacity), and at
Fairless Hills (resulting from increased steel volumes),” Kinder said.
Acquisitions that contributed to growth versus the third quarter last year
included an additional equity investment in December of 2011 in Watco
Companies, which owns the largest privately held short line railroad business
in the United States.

In the third quarter, this segment handled 15.7 million barrels of ethanol, up
slightly compared to the same period last year. Combined, the terminals and
products pipelines business segments handled about 24.6million barrels of
ethanol compared to 23.5 million barrels in the third quarter of 2011. KMP
continues to handle approximately 30percent of the ethanol used in the United
States.

Kinder Morgan Canada produced third quarter segment earnings before DD&A and
certain items of $56 million, up 15 percent from $48 million for the same
period last year, and currently is expected to slightly exceed its published
annual budget of 1 percent growth.

“Highlights in the third quarter compared to the same period last year
included the impact of the 2012 toll agreement on the Trans Mountain pipeline
system, favorable book taxes, strong throughput on Trans Mountain and at the
Westridge Terminal, and continued good results from the Express-Platte
Pipeline,” Kinder said. Trans Mountain volumes increased compared to the third
quarter last year due to a pressure restriction in 2011 that was lifted
earlier in 2012.

2012 Outlook

As previously announced, KMP expects to declare cash distributions of $4.98
per unit for 2012, an 8 percent increase over the $4.61 it distributed for
2011. Due to deteriorating NGL prices, KMP now expects to generate 2012
distributable cash flow slightly above its distributions, but below budget.
Excluding the dropdown transactions discussed below and expansion projects
associated with those assets, KMP now expects to invest approximately
$2.2billion in expansions (including contributions to joint ventures) and
acquisitions for 2012. Approximately $500 million of the equity required for
this investment program is expected to be funded by Kinder Morgan Management,
LLC (NYSE: KMR) dividends. As previously announced, and related to KMI’s
acquisition of El Paso Corporation, the average annual growth rate in KMP
distributions per unit and KMR dividends per share is expected to be around 7
percent from 2011 through 2015.

KMP’s budget assumed an average WTI crude oil price of approximately $93.75
per barrel in 2012, which approximated the forward curve at the time the
budget was prepared. The overwhelming majority of cash generated by KMP’s
assets is fee based and is not sensitive to commodity prices. In its CO[2]
segment, the company hedges the majority of its oil production, but does have
exposure to unhedged volumes, a significant portion of which are natural gas
liquids. For 2012, the company expects that every $1 change in the average WTI
crude oil price per barrel will impact the CO[2 ]segment by approximately
$6million, or slightly over 0.1 percent of KMP’s combined business segments’
anticipated segment earnings before DD&A.

KMR also expects to declare dividends of $4.98 per share for 2012.

Impact of El Paso Corporation Acquisition on KMP

KMI reached an agreement with Federal Trade Commission (FTC) staff in the
second quarter to divest certain KMP assets in order to receive regulatory
approval of its acquisition of El Paso. In August, KMP entered into an
agreement with Tallgrass Energy Partners to sell Kinder Morgan Interstate Gas
Transmission, Trailblazer Pipeline Company, its Casper-Douglas natural gas
processing and West Frenchie Draw treating facilities in Wyoming, and the
company’s 50percent interest in the Rockies Express Pipeline. KMP will
receive approximately $1.8 billion in cash from the transaction. Including the
proportionate amount of REX debt, this amount is equivalent to a value of $3.3
billion. Subject to FTC approval, this transaction is expected to close in
November. Also in August (and previously announced), KMP acquired all of
Tennessee Gas Pipeline and 50 percent of the El Paso Natural Gas pipeline for
$6.22 billion from KMI to more than replace the cash flow from the divested
assets. It is expected that the combination of the divestitures and the
dropdowns will be slightly accretive to KMP’s distributable cash flow in 2012
and nicely accretive thereafter.

Other News

Products Pipelines

  *KMP is investing approximately $90 million to build a 27-mile, 12-inch
    diameter lateral pipeline to extend its Kinder Morgan Crude Condensate
    (KMCC) pipeline to Phillips 66’s Sweeny Refinery in Brazoria County,
    Texas. In August, the companies announced an agreement whereby KMP will
    provide Phillips 66 with a significant portion of the lateral pipeline’s
    initial 30,000 barrels per day (bpd) of capacity, which is expandable to
    100,000 bpd. The company will also add associated receipt facilities by
    constructing a five-bay truck offloading facility and three new storage
    tanks with approximately 360,000 barrels of crude/condensate capacity at
    stations in DeWitt and Wharton counties in Texas. Pending receipt of
    environmental and regulatory approvals, construction is scheduled to begin
    in the fourth quarter of 2012.
  *Construction continues on a petroleum condensate processing facility
    Kinder Morgan is building near its Galena Park terminal on the Houston
    Ship Channel which, when combined with the crude and condensate pipeline,
    will provide customers with unparalleled connectivity to crude oil and
    clean products markets on the Texas Gulf Coast. The cost of the facility
    is now projected to be approximately $200 million, with anticipated
    initial throughput capacity of about 50,000 bpd. The project is being
    supported by a fee-based contract with BP North America and the plant can
    be expanded to process 100,000 bpd. The facility is expected to be in
    service in the first quarter of 2014.
  *KMP began construction of the approximately $220 million Parkway Pipeline
    in August. A joint venture with Valero, the 141-mile, 16-inch pipeline
    will transport gasoline and diesel from a refinery in Norco, La., to an
    existing petroleum transportation hub in Collins, Miss., which is owned by
    Plantation Pipe Line Company. The pipeline will have an initial capacity
    of 110,000 bpd with the capability to expand to over 200,000 bpd. The
    project is supported by a long-term throughput agreement with a major
    refiner and is on schedule to be in service in September 2013.
  *KMP completed an expansion and modification of facilities at its Port of
    Tampa terminal in Florida as part of a joint venture with the Tampa Port
    Authority, TRANSFLO and CSX Corporation to bring ethanol into Tampa, Fla.,
    which will be distributed throughout the market via the first U.S. ethanol
    unit train to refined products pipeline system. Kinder Morgan invested in
    new pipelines to transport the ethanol from the rail offloading facilities
    to its Tampa terminal where it can be distributed by a dedicated ethanol
    pipeline to other Tampa terminals for blending, or be transported along
    with gasoline shipments via the Central Florida pipeline to Orlando for
    gasoline blending at the company’s Orlando terminal. The system is
    expected to be fully operational in December 2012.

  *KMP closed on its approximately $38 million acquisition of a biofuel
    transload terminal located in Belton, S.C., in August. The terminal is
    designed for the receipt, storage and truck loading of ethanol and
    biodiesel received from unit trains. The 38-acre facility has
    45,000barrels of storage capacity, a three-bay truck rack and rail
    receipt capabilities for more than 200 cars. The terminal is located
    adjacent to two refined products terminals along the Plantation and
    Colonial pipelines corridor.
  *KMP completed facility modifications to provide for receipt, storage and
    blending of biodiesel at the company’s Fresno, Calif., terminal and began
    biodiesel blending service in August. Similar modifications are also
    complete at the company’s Colton, Calif., facility where blending will
    begin this month.
  *KMP’s $77 million expansion at its Carson Terminal in California continues
    to run ahead of schedule with three additional tanks coming online in
    September and this month. The first two tanks went into service last
    October. The company expects the two remaining tanks to be in service in
    the fourth quarter of 2012. Combined, the tanks will increase storage
    capacity by 560,000 barrels for refined petroleum products. All seven
    tanks have been leased under long-term agreements with large U.S. oil
    refiners.
  *KMP is continuing its plans for the Cochin Pipeline Reversal Project,
    which will allow the company to offer a new service to move light
    condensate from Kankakee County, Ill., to existing terminal facilities
    near Fort Saskatchewan, Alberta. The company received more than 100,000
    bpd of binding commitments for a minimum 10-year term during a successful
    open season earlier this year. The approximately $260 million project
    involves modifying the western leg of the Cochin Pipeline to Fort
    Saskatchewan from a point of interconnection with Explorer Pipeline
    Company’s pipeline in Kankakee County, where Cochin will build a 1million
    barrel tank farm and associated piping. Subject to the timely receipt of
    necessary regulatory approvals, light condensate shipments could begin as
    early as July 1, 2014.

Natural Gas Pipelines

Kinder Morgan currently has approximately $3.3 billion of approved major
projects across all of its natural gas pipelines assets, the majority of which
are at KMP.

  *Oct. 1, following Federal Energy Regulatory Commission (FERC) approval,
    Tennessee Gas Pipeline (TGP) placed in service a portion of its
    approximately $55 million Northeast Supply Diversification Project to
    support interim customer capacity requirements. The fully subscribed
    project is expected to be totally in service Nov. 1 and will create an
    additional 250,000 dekatherms per day (Dth/d) of firm service capacity
    from the Marcellus shale region along TGP’s system to serve existing
    markets in New England and the Niagara Falls area of New York.

  *The FERC issued a certificate of public convenience and necessity to TGP
    in August for its proposed approximately $86 million Marcellus Pooling
    Project (MPP). The fully subscribed project will provide 240,000 Dth/d of
    additional firm Marcellus transportation capacity. The expansion includes
    approximately 7.9 miles of 30-inch diameter pipeline looping, system
    modifications and upgrades to allow bi-directional flow at four existing
    compressor stations in Pennsylvania. Construction is anticipated to occur
    primarily in the summer of 2013 with an in service date of November 2013.
  *State technical reviews are nearing completion on TGP’s Northeast Upgrade
    Project, which will boost system capacity on TGP’s 300 Line by
    approximately 636 Dth/d via pipeline looping and system upgrades. This
    approximately $426 million project will provide for additional takeaway
    capacity from the prolific Marcellus shale area. The fully subscribed,
    FERC-certificated project has a targeted in service date of Nov. 1, 2013.
    Subject to final regulatory approvals, construction is anticipated to
    begin this quarter.
  *On Oct. 10, TGP filed a certificate application with the FERC proposing
    the Rose Lake expansion project, which would provide long-term firm
    transportation service for two shippers that have fully subscribed 230,000
    Dth/d of firm capacity offered in TGP’s Zone 4 in Pennsylvania. The
    capacity was offered in a binding open season held in the summer of 2012.
    TGP proposes to retire older compressor units, add new, more efficient and
    cleaner burning units, and make other modifications involving three
    existing compressor stations that serve its 300 Line, all in northeastern
    Pennsylvania. The anticipated in service date for the approximately $84
    million project is Nov. 1, 2014.

CO[2]

  *To help meet increasing CO[2] demand, KMP continues to make progress on
    its previously announced $255million expansion of its Doe Canyon Unit
    CO[2] source field in southwestern Colorado, which will increase capacity
    from 105 MMcf/d to 170 MMcf/d. In the third quarter, construction
    continued on both primary and booster compression. The primary compression
    is expected to be in service in the fourth quarter of 2013 and the booster
    compression is targeted to be completed in the second quarter of 2014.
  *Well testing and predevelopment activities continue on the St. Johns CO[2]
    source field in Arizona and New Mexico that KMP acquired earlier this
    year. The company anticipates that CO[2] production from this potential
    new source field would be transported to the Permian Basin for use by
    customers in tertiary recovery.

Terminals

KMP currently has more than $1.4 billion of approved major projects in this
segment. The company is experiencing strong demand in particular for liquids
storage capacity and coal exports in its terminals business. Approximately
$880 million will be spent on three liquids projects (BOSTCO, Edmonton South
and Galena Park) and over $400 million will be invested to expand coal
facilities along the Gulf Coast and East Coast.

  *In conjunction with the previously announced Arch and Peabody
    multi-terminal long-term agreements, KMP is proceeding with Phase 3 of its
    approximately $190 million export coal expansion at the International
    Marine Terminal (IMT) located on the lower Mississippi River in Myrtle
    Grove, La. The project entails adding a new continuous barge unloader, a
    new reclaim system and an additional four million tons of coal storage
    capacity. The new expansion is expected to be operational late first
    quarter 2014.

  *KMP has entered into a long-term commercial agreement with BP North
    America for 750,000 barrels per day of refined products capacity at its
    Galena Park Terminal on the Houston Ship Channel. Construction has begun
    and KMP will invest approximately $75million to build five new tanks,
    which will provide storage for BP’s product that will be processed at the
    condensate splitter that KMP’s Products Pipelines business segment is
    currently building near the Galena Park facility.
  *Construction continues on the approximately $430 million Battleground Oil
    Specialty Terminal (BOSTCO) located on the Houston Ship Channel. The first
    phase of the project includes construction of 52 storage tanks that will
    have a capacity of 6.6 million barrels for handling residual fuels and
    other black oil terminal services. Terminal service agreements or letters
    of intent have been executed with customers for almost all of the
    capacity. Commercial operations are expected to begin in the third quarter
    of 2013.
  *Construction also continues on the Edmonton terminal expansion in
    Strathcona County, Alberta. The approximately $284 million project entails
    building3.6 million barrels of new merchant and system tank storage and
    is expected to be fully completed in December 2013. The project is
    underpinned by long-term commercial agreements with major Canadian
    producers. Kinder Morgan is currently in discussions with other companies
    for further expansion that would ultimately allow for over 6 million
    barrels of dedicated storage at the terminal.
  *KMP is investing approximately $20 million to expand its fertilizer
    handling capabilities at terminals in Fairless Hills, Pa., and West
    Memphis, Ark. Upon completion of these projects, the Fairless Hills
    Terminal will be capable of storing approximately 60,000 tons of dry-bulk
    and up to 25,000 tons of liquid fertilizer, while the West Memphis
    Arkansas Terminal will be capable of storing approximately 9,000 tons of
    dry-bulk fertilizer. The expansions are backed by long-term customer
    agreements and are anticipated to be in service in the second quarter of
    2013.
  *Kinder Morgan Canada Terminals executed a long-term agreement with
    Thompson Creek Metals to receive mined materials at the Vancouver Wharves
    terminal in Vancouver, B.C., beginning in September 2013. The $13.5
    million modification and expansion project includes additional rail and
    new enclosed conveyors, which will provide environmental benefits. The
    contract calls for handling 120,000 to 180,000 metric tons per year.

Kinder Morgan Canada

  *As previously announced, KMP confirmed binding commercial support for its
    proposed expansion of the Trans Mountain pipeline system in the second
    quarter. Following an open season, 10 companies in the Canadian producing
    and oil marketing business have signed firm contracts in support of the
    expansion. In August, Trans Mountain filed an application seeking National
    Energy Board (NEB) approval of the contract terms and toll structure that
    would be implemented under the expansion. Consistent with Trans Mountain’s
    request, the NEB has set a process for this application that results in a
    hearing starting on Feb. 13, 2013, with a decision anticipated by May
    2013. The proposed $4.1 billion expansion would increase capacity on Trans
    Mountain from 300,000 bpd to 750,000 bpd. The company plans to file a
    Facilities Application with the NEB in late 2013, which will seek
    authorization to build and operate the necessary facilities for the
    expansion. This filing will initiate a comprehensive regulatory and public
    review of the proposed expansion. If the application is approved,
    construction is currently forecast to commence in 2015 or 2016 with the
    proposed expansion operating in late 2017. This summer Kinder Morgan
    Canada commenced an extensive and thorough engagement on all aspects of
    the project with local communities along the proposed route and marine
    corridor, including First Nations, environmental organizations and all
    other interested parties.

Financings

  *KMP sold common units valued at approximately $120 million under its
    at-the-market program during the third quarter, bringing the total to
    about $398 million through the first nine months of the year.
  *Kinder Morgan Management (KMR) conducted a secondary offering in August,
    which issued 10.1 million shares and raised almost $727 million. The funds
    were used in connection with the TGP and EPNG dropdowns.

Kinder Morgan Management, LLC

Shareholders of KMR will also receive a $1.26 dividend ($5.04 annualized)
payable on Nov. 14, 2012, to shareholders of record as of Oct. 31, 2012. The
dividend to KMR shareholders will be paid in the form of additional KMR
shares. The dividend is calculated by dividing the cash distribution to KMP
unitholders by KMR’s average closing price for the 10 trading days prior to
KMR’s ex-dividend date.

Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline
transportation and energy storage company and one of the largest publicly
traded pipeline limited partnerships in America. It owns an interest in or
operates approximately 53,000 miles of pipelines and 180 terminals. The
general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI). Kinder
Morgan is the largest midstream and the third largest energy company in North
America with a combined enterprise value of approximately $100 billion. It
owns an interest in or operates approximately 75,000 miles of pipelines and
180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO[2]
and other products, and its terminals store petroleum products and chemicals
and handle such products as ethanol, coal, petroleum coke and steel. KMI owns
the general partner interest of KMP and El Paso Pipeline Partners, L.P. (NYSE:
EPB), along with limited partner interests in KMP and EPB and shares in Kinder
Morgan Management, LLC (NYSE: KMR). For more information please visit
www.kindermorgan.com.

Please join Kinder Morgan at 4:30 p.m. Eastern Time on Wednesday, Oct. 17, at
www.kindermorgan.com for a LIVE webcast conference call on the company’s third
quarter earnings.

The non-generally accepted accounting principles, or non-GAAP, financial
measures of distributable cash flow before certain items, both in the
aggregate and per unit, and segment earnings before depreciation, depletion,
amortization and amortization of excess cost of equity investments, or DD&A,
and certain items, are presented in this news release. Our non-GAAP financial
measures should not be considered as alternatives to GAAP measures such as net
income or any other GAAP measure of liquidity or financial performance.
Distributable cash flow before certain items is a significant metric used by
us and by external users of our financial statements, such as investors,
research analysts, commercial banks and others, to compare basic cash flows
generated by us to the cash distributions we expect to pay our unitholders on
an ongoing basis. Management uses this metric to evaluate our overall
performance. It also allows management to simply calculate the coverage ratio
of estimated ongoing cash flows to expected cash distributions. Distributable
cash flow before certain items is also an important non-GAAP financial measure
for our unitholders because it serves as an indicator of our success in
providing a cash return on investment. This financial measure indicates to
investors whether or not we typically are generating cash flow at a level that
can sustain or support an increase in the quarterly distributions we are
paying pursuant to our partnership agreement. Our partnership agreement
requires us to distribute all available cash. Distributable cash flow before
certain items and similar measures used by other publicly traded partnerships
are also quantitative measures used in the investment community because the
value of a unit of such an entity is generally determined by the unit’s yield
(which in turn is based on the amount of cash  distributions the entity pays
to a unitholder). The economic substance behind our use of distributable cash
flow before certain items is to measure and estimate the ability of our assets
to generate cash flows sufficient to make distributions to our investors.

We define distributable cash flow before certain items to be limited partners’
pretax income before certain items and DD&A, less cash taxes paid and
sustaining capital expenditures for KMP, plus DD&A less sustaining capital
expenditures for Rockies Express, Midcontinent Express, Fayetteville Express,
KinderHawk through second quarter 2011, EagleHawk, Eagle Ford, El Paso Natural
Gas, Bear Creek Storage Company, Red Cedar, Cypress and EP Midstream
Investment Co., LLC, our equity method investees, less equity earnings plus
cash distributions received for Express and Endeavor, additional equity
investees. Distributable cash flow before certain items per unit is
distributable cash flow before certain items divided by average outstanding
units. “Certain items” are items that are required by GAAP to be reflected in
net income, but typically either (1) do not have a cash impact, for example,
goodwill impairments, allocated compensation for which we will never be
responsible, and results from assets prior to our ownership that are required
to be reflected in our results due to accounting rules regarding entities
under common control, or (2) by their nature are separately identifiable from
our normal business operations and in our view are likely to occur only
sporadically, for example legal settlements, hurricane impacts and casualty
losses. Management uses this measure and believes it is important to users of
our financial statements because it believes the measure more effectively
reflects our business’ ongoing cash generation capacity than a similar measure
with the certain items included. For similar reasons, management uses segment
earnings before DD&A and certain items in its analysis of segment performance
and managing our business. We believe segment earnings before DD&A and certain
items is a significant performance metric because it enables us and external
users of our financial statements to better understand the ability of our
segments to generate cash on an ongoing basis. We believe it is useful to
investors because it is a measure that management believes is important and
that our chief operating decision makers use for purposes of making decisions
about allocating resources to our segments and assessing the segments’
respective performance.

We believe the GAAP measure most directly comparable to distributable cash
flow before certain items is net income. Our calculation of distributable cash
flow before certain items, which begins with net income after subtracting
certain items that are specifically identified in the accompanying tables, is
set forth in those tables. Net income before certain items is presented
primarily because we use it in this calculation. Segment earnings before DD&A
as presented in our GAAP financials is the measure most directly comparable to
segment earnings before DD&A and certain items. Segment earnings before DD&A
and certain items is calculated by removing the certain items attributable to
a segment, which are specifically identified in the footnotes to the
accompanying tables, from segment earnings before DD&A. In addition, segment
earnings before DD&A as presented in our GAAP financials is included on the
first page of the tables presenting our financial results.

Our non-GAAP measures described above should not be considered as an
alternative to GAAP net income, segment earnings before DD&A or any other GAAP
measure. Distributable cash flow before certain items and segment earnings
before DD&A and certain items are not financial measures in accordance with
GAAP and have important limitations as analytical tools. You should not
consider either of these non-GAAP measures in isolation or as a substitute for
an analysis of our results as reported under GAAP. Because distributable cash
flow before certain items excludes some but not all items that affect net
income and because distributable cash flow measures are defined differently by
different companies in our industry, our distributable cash flow before
certain items may not be comparable to distributable cash flow measures of
other companies. Segment earnings before DD&A and certain items has similar
limitations. Management compensates for the limitations of these non-GAAP
measures by reviewing our comparable GAAP measures, understanding the
differences between the measures and taking this information into account in
its analysis and its decision making processes.

This news release includes forward-looking statements. These forward-looking
statements are subject to risks and uncertainties and are based on the beliefs
and assumptions of management, based on information currently available to
them. Although Kinder Morgan believes that these forward-looking statements
are based on reasonable assumptions, it can give no assurance that such
assumptions will materialize. Important factors that could cause actual
results to differ materially from those in the forward-looking statements
herein include those enumerated in Kinder Morgan’s reports filed with the
Securities and Exchange Commission. Forward-looking statements speak only as
of the date they were made, and except to the extent required by law, Kinder
Morgan undertakes no obligation to update or review any forward-looking
statement because of new information, future events or other factors. Because
of these uncertainties, readers should not place undue reliance on these
forward-looking statements.



Kinder Morgan Energy Partners, L.P. and Subsidiaries
Preliminary Consolidated Statement of Income
(Unaudited)
(in millions except per unit amounts)
                                                              
                                                                     
                                                                     
                       Three Months Ended September   Nine Months Ended
                       30,                            September 30,
                         2012          2011         2012        2011  
                                                                     
Revenues               $  2,336       $  2,111      $  6,135      $ 5,966 
                                                                     
Costs, expenses
and other
Operating                 1,260           1,313          3,133         3,713
expenses
Depreciation,
depletion and             292             247            796           685
amortization
General and               131             100            379           387
administrative
Taxes, other
than income               63              37             169           133
taxes
Other expense            (8     )       (1     )      (28     )    (15   )
(income)
                         1,738         1,696        4,449       4,903 
Operating income          598             415            1,686         1,063
                                                                     
Other income
(expense)
Earnings from
equity                    100             52             225           155
investments
Amortization of
excess cost of            (1     )        (2     )       (5      )     (5    )
equity
investments
Interest, net             (176   )        (128   )       (461    )     (380  )
Other, net               4             (164   )      14          (156  )
                                                                     
Income before             525             173            1,459         677
income taxes
                                                                     
Income taxes             (11    )       (12    )      (40     )    (33   )
                                                                     
Income from
continuing                514             161            1,419         644
operations
                                                                     
Income from
discontinued              47              55             145           145
operations
Loss on
remeasurement of
discontinued             (178   )       -            (827    )    -     
operations to
fair value
(Loss) income
from                      (131   )        55             (682    )     145
discontinued
operations
                                                                     
Net income               383           216          737         789   
                                                                     
Net income
attributable to          (4     )       (1     )      (12     )    (6    )
Noncontrolling
Interests
                                                                     
Net income
attributable to        $  379         $  215        $  725        $ 783   
KMP
                                                                     
                                                                     
Calculation of
Limited
Partners'
interest in net
income (loss)
attributable to
KMP
Income from
continuing
operations             $  509          $  161         $  1,400       $ 640
attributable to
KMP
Less:
Pre-acquisition
earnings                  (36    )        -              (23     )     -
allocated to
General Partner
Less: General
Partner's                (367   )       (298   )      (1,024  )    (870  )
remaining
interest
Limited
Partners'                 106             (137   )       353           (230  )
interest
Add: Limited
Partners'
interest in              (128   )       54           (668    )    142   
discontinued
operations
Limited
Partners'              $  (22    )     $  (83    )    $  (315    )   $ (88   )
interest in net
income
                                                                     
Limited
Partners' net
income (loss)
per unit:
Income from
continuing             $  0.30         $  (0.41  )    $  1.02        $ (0.71 )
operations
Income (loss)
from                     (0.36  )       0.16         (1.93   )    0.44  
discontinued
operations
Net income             $  (0.06  )     $  (0.25  )    $  (0.91   )   $ (0.27 )
(loss)
Weighted average
units                    356           331          345         323   
outstanding
                                                                     
Declared
distribution /         $  1.26        $  1.16       $  3.69       $ 3.45  
unit
                                                                     
                                                                     
                       Three Months Ended September   Nine Months Ended
                       30,                            September 30,
                         2012          2011         2012        2011  
Segment earnings
before DD&A and
amortization of
excess
investments
Products               $  150          $  103         $  492         $ 304
Pipelines
Natural Gas               405             19             877           319
Pipelines
CO[2]                     327             295            988           823
Terminals                 183             179            565           525
Kinder Morgan            56            48           158         150   
Canada
                       $  1,121       $  644        $  3,080      $ 2,121 
                                                                             
                                                                             

Kinder Morgan Energy Partners, L.P. and Subsidiaries
Preliminary Earnings Contribution by Business Segment
(Unaudited)
(in millions except per unit amounts)
                                                              
                       Three Months Ended            Nine Months Ended
                       September 30,                 September 30,
                         2012          2011        2012         2011  
Segment earnings
before DD&A and
amort. of excess
investments (1)
Products               $  185          $  178        $  527          $ 533
Pipelines
Natural Gas               383             247           900            661
Pipelines (2)
CO[2]                     332             287           989            813
Terminals                 184             181           554            517
Kinder Morgan            56            48          158          148   
Canada
Total                    1,140         941         3,128        2,672 
                                                                     
Segment DD&A and
amortization of
excess
investments
Products               $  32           $  27         $  90           $ 81
Pipelines
Natural Gas               72              50            166            114
Pipelines (3)
CO[2]                     110             116           326            329
Terminals                 51              49            153            144
Kinder Morgan            14            14          42           42    
Canada
Total                    279           256         777          710   
                                                                     
Segment earnings
contribution
Products               $  153          $  151        $  437          $ 452
Pipelines (1)
Natural Gas               311             197           734            547
Pipelines (1)
CO[2 ](1)                 222             171           663            484
Terminals (1)             133             132           401            373
Kinder Morgan             42              34            116            106
Canada (1)
General and
administrative            (115   )        (102  )       (324    )      (301  )
(1) (4)
Interest, net            (172   )       (132  )      (452    )     (393  )
(1) (5)
Net income
before certain            574             451           1,575          1,268
items
Certain items
Loss on disposal
and
remeasurement of          (178   )        (167  )       (827    )      (167  )
discontinued
operations to
fair value
Allocated
non-cash                  -               1             -              (84   )
compensation
Acquisition               (3     )        (1    )       (3      )      (2    )
costs (6)
Legal expenses            -               1             -              (1    )
(7)
Legal reserves            (9     )        (69   )       (9      )      (234  )
(8)
Pre-acquisition
earnings
allocated to              36              -             23             -
general partner
(9)
Environmental             (34    )        (7    )       (34     )      (7    )
reserves
Mark to market
and
ineffectiveness           (5     )        8             (8      )      10
of certain
hedges (10)
Insurance
deductible,
casualty losses           (2     )        (1    )       10             1
and
reimbursements
(11)
Gain (loss) on
sale of assets
and asset                 8               -             15             15
disposition
expenses (12)
Prior period
asset write-off           -               -             -              (10   )
(13)
Other (14)               (4     )       -           (5      )     -     
Sub-total                 (191   )        (235  )       (838    )      (479  )
certain items
Net income             $  383         $  216       $  737         $ 789   
Less:
Pre-acquisition
earnings                  (36    )        -             (23     )      -
allocated to
General Partner
Less: General
Partner's
remaining                 (365   )        (298  )       (1,017  )      (871  )
interest in net
income (15)
Less:
Noncontrolling           (4     )       (1    )      (12     )     (6    )
Interests in net
income
Limited
Partners' net          $  (22    )     $  (83   )    $  (315    )    $ (88   )
income (loss)
                                                                     
Net income
before certain         $  574          $  451        $  1,575        $ 1,268
items
Less:
Noncontrolling           (5     )       (4    )      (16     )     (13   )
Interest before
certain items
Net income
attributable to           569             447           1,559          1,255
KMP before
certain items
Less: General
Partner's
interest in net          (367   )       (301  )      (1,025  )     (876  )
income before
certain items
(15)
Limited
Partners' net             202             146           534            379
income before
certain items
Depreciation,
depletion and             331             292           913            834
amortization
(16)
Book (cash)               -               9             7              19
taxes - net
Express &
Endeavor                  -               2             3              8
contribution
Sustaining
capital                  (78    )       (55   )      (174    )     (140  )
expenditures
(17)
DCF before             $  455         $  394       $  1,283       $ 1,100 
certain items
                                                                     
Net income /
unit before            $  0.57        $  0.44      $  1.55        $ 1.17  
certain items
DCF / unit
before certain         $  1.28        $  1.19      $  3.72        $ 3.40  
items
Weighted average
units                    356           331         345          323   
outstanding
                                                                     

Notes ($ million)
(1)   Excludes certain items:
       3Q 2011 - Products Pipelines $(75), Natural Gas Pipelines $(167), CO2
       $8, Terminals $(1)
       YTD 2011 - Products Pipelines $(229), Natural Gas Pipelines $(177), CO2
       $10, Terminals $8, KMC $2, general and administrative expense $(93)
       3Q 2012 - Products Pipelines $(35), Natural Gas Pipelines $(109), CO2
       $(5), Terminals $(1), general and administrative expense $(18),
       interest expense $(9)
       YTD 2012 - Products Pipelines $(35), Natural Gas Pipelines $(698), CO2
       $(1), Terminals $11, general and administrative expense $(62), interest
       expense $(22)
       Includes $62 in 3Q 2011 and $175 YTD 2011, and $47 in 3Q 2012 and $152
(2)    YTD 2012 related to assets classified for GAAP purposes as discontinued
       operations.
       Also excludes $71 in 3Q 2012 and $131 YTD 2012 from our drop down asset
       group for periods prior to our acquisition date of August 1, 2012.
       Includes $7 in 3Q 2011 and $20 YTD 2011, and $0 in 3Q 2012 and $7 YTD
(3)    2012 of DD&A expense related to assets classified for GAAP purposes as
       discontinued operations. $14 in 3Q 2012
       Also excludes and $31 YTD 2012 of DD&A expense from our drop down asset
       group for periods prior to our acquisition date of August 1, 2012.
       General and administrative expense includes income tax that is not
       allocable to the segments: 3Q 2011 - $2, YTD 2011 - $7, 3Q 2012 - $2,
(4)    YTD 2012 - $7. Also excludes $12 in 3Q 2012 and $55 YTD 2012 of G&A
       expense from our drop down asset group for periods prior to our
       acquisition date of August 1, 2012.
       Interest expense excludes interest income that is allocable to the
       segments: 3Q 2011 - $6, YTD 2011 - $15, 3Q 2012 - $5, YTD 2012 - $13.
(5)    Also excludes $8 in 3Q 2012 and $21 YTD 2012 of interest expense from
       our drop down asset group for periods prior to our acquisition date of
       August 1, 2012.
(6)    Acquisition expense items related to closed acquisitions previously
       capitalized under prior accounting standards.
(7)    Legal expenses associated with Certain Items such as legal settlements
       and pipeline failures.
(8)    Legal reserve adjustments related to the rate case litigation of west
       coast Products Pipelines.
(9)    Earnings from our drop down asset group for periods prior to our
       acquisition date of August 1, 2012.
(10)   Actual gain or loss will continue to be taken into account in earnings
       before DD&A at time of physical transaction.
(11)   Insurance deductible, write-off of assets, expenses and insurance
       reimbursements related to casualty losses.
(12)   Gain or loss on sale of assets and expenses related to the preparation
       of assets for sale.
(13)   Natural Gas Pipelines write-off of receivable for fuel under-collected
       prior to 2011.
       Imputed interest on Cochin acquisition, FX gain on Cochin note payable,
(14)   Terminals severance and overhead credit on certain items capex, and
       other unallocated severance.
       General Partner's interest in net income reflects a reduction for the
(15)   KinderHawk acquisition GP incentive giveback of $7 in 3Q and $21 YTD
       2011, and $6 in 3Q and $19 YTD 2012.
       Includes Kinder Morgan Energy Partner's (KMP) share of Rockies Express
       (REX), Midcontinent Express (MEP), Fayetteville Express (FEP),
(16)   KinderHawk (2011), Cypress, EagleHawk, Eagle Ford (2012), Midstream
       (2012), Red Cedar, EPNG (2012), and Bear Creek (2012) DD&A: 3Q 2011 -
       $36, YTD 2011 - $124, and 3Q 2012 - $52, YTD 2012 - $136.
       Includes KMP share of REX, MEP, FEP, Cypress, EagleHawk, Eagle Ford,
(17)   Red Cedar, EPNG, and Bear Creek sustaining capital expenditures: 3Q
       2011 - $0, YTD 2011 - $3, and 3Q 2012 - $8, YTD 2012 - $13.
       
       

Volume Highlights
(historical pro forma for acquired assets)
                                                            
                                                                   
                                                                   
                   Three Months Ended September      Nine Months Ended
                   30,                               September 30,
                     2012            2011         2012        2011    
Products
Pipelines
Pacific,
Calnev, and
CFPL (MMBbl)
Gasoline (1)          68.4              70.6           201.4         205.7
Diesel                27.4              28.9           78.5          82.0
Jet Fuel             21.7            21.7         65.5        64.0    
Sub-Total
Refined
Product               117.5             121.2          345.4         351.7
Volumes -
excl.
Plantation
Plantation
(MMBbl)
Gasoline              29.7              31.1           91.5          91.5
Diesel                8.9               8.3            27.2          28.7
Jet Fuel             6.6             6.4          18.5        18.9    
Sub-Total
Refined
Product               45.2              45.8           137.2         139.1
Volumes -
Plantation
Total
(MMBbl)
Gasoline (1)          98.1              101.7          292.9         297.2
Diesel                36.3              37.2           105.7         110.7
Jet Fuel             28.3            28.1         84.0        82.9    
Total
Refined               162.7             167.0          482.6         490.8
Product
Volumes
NGLs (2)             8.5             7.6          23.1        19.8    
Total
Delivery              171.2             174.6          505.7         510.6
Volumes
(MMBbl)
Ethanol               8.9               8.0            24.1          23.0
(MMBbl) (3)
                                                                   
Natural Gas
Pipelines
(4) (5)
Transport
Volumes               1,772.1           1,598.1        5,175.8       4,708.9
(Bcf)
Sales
Volumes               228.7             215.1          657.2         598.7
(Bcf)
                                                                   
CO[2]
Southwest
Colorado
Production -          1.2               1.2            1.2           1.2
Gross
(Bcf/d) (6)
Southwest
Colorado
Production -          0.5               0.5            0.5           0.5
Net (Bcf/d)
(6)
Sacroc Oil
Production -          30.0              29.4           28.4          28.9
Gross
(MBbl/d) (7)
Sacroc Oil
Production -          25.0              24.5           23.7          24.1
Net (MBbl/d)
(8)
Yates Oil
Production -          20.6              21.5           20.9          21.7
Gross
(MBbl/d) (7)
Yates Oil
Production -          9.3               9.5            9.3           9.6
Net (MBbl/d)
(8)
Katz Oil
Production -          1.8               0.5            1.7           0.3
Gross
(MBbl/d) (7)
Katz Oil
Production -          1.5               0.4            1.4           0.3
Net (MBbl/d)
(8)
NGL Sales
Volumes               9.3               8.4            9.3           8.4
(MBbl/d) (9)
Realized
Weighted
Average Oil        $  88.64          $  70.43        $ 88.39       $ 69.54
Price per
Bbl (10)
(11)
Realized
Weighted
Average NGL        $  44.27          $  68.86        $ 51.53       $ 65.53
Price per
Bbl (11)
                                                                   
Terminals
Liquids
Leasable              60.2              59.5           60.2          59.5
Capacity
(MMBbl)
Liquids
Utilization           92.9     %        93.2     %     92.9    %     93.2    %
%
Bulk
Transload
Tonnage               23.7              26.7           74.2          74.8
(MMtons)
(11)
Ethanol               15.7              15.5           49.9          44.9
(MMBbl)
                                                                   
Trans
Mountain
(MMBbls -             28.1              25.6           79.9          75.2
mainline
throughput)

(1)   Gasoline volumes include ethanol pipeline volumes.
(2)    Includes Cochin and Cypress.
(3)    Total ethanol handled including pipeline volumes included in gasoline
       volumes above.
(4)    Includes KMIGT, Texas Intrastates, KMNTP, Monterrey, Trailblazer,
       TransColorado, REX, MEP, KMLA, FEP, TGP, and EPNG pipeline volumes.
(5)    Volumes for acquired pipelines are included for all periods.
(6)    Includes McElmo Dome and Doe Canyon sales volumes.
(7)    Represents 100% production from the field.
(8)    Represents KMP's net share of the production from the field.
(9)    Net to KMP.
(10)   Includes all KMP crude oil properties.
(11)   Hedge gains/losses for Oil and NGLs are included with Crude Oil.
(12)   Includes KMP's share of Joint Venture tonnage.
       
       

KINDER MORGAN ENERGY PARTNERS, L.P. AND SUBSIDIARIES
PRELIMINARY ABBREVIATED CONSOLIDATED BALANCE SHEET
(Unaudited)
(in millions)
                                            
                                                                  
                                               September 30,      December 31,
                                                 2012             2011    
ASSETS
                                                                  
Cash and cash equivalents                      $  532             $  409
Other current assets ((1))                        3,236              1,167
Property, plant and equipment, net                19,326             15,596
Investments                                       3,070              3,346
Goodwill, deferred charges and other             7,429            3,585   
assets
TOTAL ASSETS                                   $  33,593         $  24,103  
                                                                  
LIABILITIES AND PARTNERS' CAPITAL
                                                                  
Liabilities
Notes payable and current maturities of        $  2,697           $  1,638
long-term debt
Other current liabilities ^(1)                    1,865              1,481
Long-term debt                                    15,217             11,183
Debt fair value adjustments                       1,530              1,055
Other                                            1,227            1,142   
Total liabilities                                 22,536             16,499
                                                                  
Partners' capital
Accumulated other comprehensive income            178                3
Other partners' capital                          10,726           7,505   
Total KMP partners' capital                      10,904           7,508   
Noncontrolling interests                         153              96      
Total partners' capital                          11,057           7,604   
TOTAL LIABILITIES AND PARTNERS' CAPITAL        $  33,593         $  24,103  
                                                                  
                                                                  
Total Debt, net of cash and cash
equivalents, and excluding the debt fair       $  17,382          $  12,412
value adjustments
                                                                  
Segment earnings before DD&A and certain       $  4,278           $  3,810
items
G&A                                               (410    )          (388    )
Income taxes                                     53               55      
EBITDA ^(2) (3)                                $  3,921           $  3,477
                                                                  
Debt to EBITDA                                    4.0        (4 )    3.6

(1)  Includes assets / liabilities held for sale
(2)   EBITDA is last twelve months
      EBITDA includes add back of KMP's share of REX, MEP, FEP, Cypress,
(3)   EagleHawk, Eagle Ford (beginning 2012), Red Cedar, Midstream (beginning
      2Q 2012), EPNG (beginning in 3Q 2012), and Bear Creek (beginning in 3Q
      2012) DD&A.
      Reduced net debt by $(1,760) for the sale of the FTC assets, which is
(4)   expected to close in November 2012. Without this adjustment, Debt to
      EBITDA would be 4.4.

Contact:

Kinder Morgan Energy Partners, L.P.
Larry Pierce, 713-369-9407
Media Relations
larry_pierce@kindermorgan.com
or
Mindy Mills Thornock, 713-369-9490
Investor Relations
mindy_thornock@kindermorgan.com
www.kindermorgan.com
 
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