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Kinder Morgan, Inc. Increases Quarterly Dividend to $0.36 Per Share



  Kinder Morgan, Inc. Increases Quarterly Dividend to $0.36 Per Share

                 Dividend 20% Higher Than Third Quarter 2011

Business Wire

HOUSTON -- October 17, 2012

Kinder Morgan, Inc. (NYSE: KMI) today reported third quarter cash available to
pay dividends of $362 million, up 93 percent from $188 million for the
comparable 2011 period. Through the first nine months, KMI reported cash
available to pay dividends of $972 million compared to $623 million for the
same period in 2011. The company now expects to generate cash available to pay
dividends of more than $1.325 billion for the year, significantly ahead of its
published annual budget. The increase is attributable to the El Paso
Corporation acquisition which closed in late May.

The board of directors increased the quarterly cash dividend to $0.36 per
share ($1.44 annualized), which is payable on Nov. 15, 2012, to shareholders
of record as of Oct. 31, 2012. This represents a 20 percent increase over the
third quarter 2011 cash distribution per unit of $0.30 ($1.20 annualized) and
is up from the second quarter 2012 dividend of $0.35 ($1.40 annualized) per
share.

Chairman and CEO Richard D. Kinder said, “KMI had an outstanding quarter and
our cash available to pay dividends nearly doubled compared to the third
quarter of 2011. Growth was attributable to the strong performance of Kinder
Morgan Energy Partners, and a full quarter of contributions from El Paso
Pipeline Partners and the natural gas assets that we acquired in the El Paso
Corporation transaction. We continue to be very pleased with the El Paso
assets that we purchased and the people we have added to the Kinder Morgan
team, and we are making significant progress in fully integrating the two
companies. We are well on our way to achieving anticipated annual cost savings
of more than $400 million, which is higher than our original estimate of
$350 million. As the largest natural gas transporter and storage operator in
North America, the Kinder Morgan companies are well positioned to play a
leading and integral role as demand for natural gas continues to increase.”

Outlook

As previously announced, KMI expects to declare dividends of at least $1.40
per share for 2012, well above its 2012 budget of $1.35 per share, and an
increase of approximately 17 percent over its 2011 declared dividend of $1.20
per share. The 2011 per share amounts are presented as if KMI were publicly
traded for all of 2011.

As a result of the acquisition of El Paso and KMI’s normal expected annual
growth, KMI continues to expect its dividend per share to grow at an average
annual rate of around 12.5 percent through 2015 from its budgeted 2011
dividend of $1.16 per share.

KMI’s future results will be driven primarily by its ownership of the general
partner of both Kinder Morgan Energy Partners, L.P. (NYSE: KMP) and El Paso
Pipeline Partners, L.P. (NYSE: EPB). KMP and EPB reported 9 percent and 18
percent increases, respectively, in declared cash distributions per unit for
the third quarter compared to the same period in 2011, and both consist of
strategic and diversified assets which generate stable and growing cash flows.
Former El Paso assets currently at KMI include interests in El Paso Natural
Gas pipeline, Mojave Pipeline, Florida Gas Transmission, Ruby Pipeline,
midstream assets and Gulf LNG. Over time it is anticipated that these assets
will be offered to KMP and EPB in future dropdown transactions.

Other News

  * In August, KMI completed the sale (drop down) of its 100 percent interest
    in Tennessee Gas Pipeline (TGP) and 50 percent interest in El Paso Natural
    Gas (EPNG) pipeline to Kinder Morgan Energy Partners for approximately
    $6.22 billion, including about $1.8 billion in assumed debt at TGP and
    approximately $560 million of proportional debt at EPNG.
  * As previously announced, KMI reached agreement with the Federal Trade
    Commission staff to divest certain KMP assets in order to receive
    regulatory approval to complete the El Paso Corporation acquisition. 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 50 percent interest in
    the Rockies Express Pipeline. Subject to FTC approval, this transaction is
    expected to close in November 2012.
  * On Oct. 11, stockholders Goldman, Sachs & Co., The Carlyle Group and
    Riverstone Holdings LLC sold the remaining portion of their KMI common
    stock. Neither KMI nor KMI’s management sold any shares of common stock in
    the offering. KMI will not receive any of the proceeds from the offering.
    As previously announced, Goldman, Sachs & Co., The Carlyle Group and
    Riverstone Holdings LLC no longer have representatives on KMI’s board of
    directors.

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. Kinder
Morgan, Inc. (NYSE: KMI) owns the general partner interest of Kinder Morgan
Energy Partners, L.P. (NYSE: 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
measure of cash available to pay dividends is presented in this news release.
This non-GAAP financial measure should not be considered as an alternative to
a GAAP measure such as net income or any other GAAP measure of liquidity or
financial performance. Cash available to pay dividends 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 dividends we expect to pay our
shareholders on an ongoing basis. Management uses this metric to evaluate our
overall performance. Cash available to pay dividends is also an important
non-GAAP financial measure for our shareholders 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 dividends we are paying. Our dividend policy provides that, subject
to applicable law, we will pay quarterly cash dividends generally representing
the cash we receive from our subsidiaries less any cash disbursements and
reserves established by our board of directors. Cash available to pay
dividends is also a quantitative measure used in the investment community
because the value of a share of an entity like KMI that pays out all or a
substantial proportion of its cash flow, is generally determined by the
dividend yield (which in turn is based on the amount of cash dividends the
corporation pays to its shareholders). The economic substance behind our use
of cash available to pay dividends is to measure and estimate the ability of
our assets to generate cash flows sufficient to pay dividends to our
investors.

We believe the GAAP measure most directly comparable to cash available to pay
dividends is income from continuing operations. A reconciliation of cash
available to pay dividends to income from continuing operations is provided in
this release. Our non-GAAP measure described above should not be considered as
an alternative to GAAP net income and has important limitations as an
analytical tool. Our computation of cash available to pay dividends may differ
from similarly titled measures used by others. You should not consider this
non-GAAP measure in isolation or as a substitute for an analysis of our
results as reported under GAAP. Management compensates for the limitations of
this non-GAAP measure 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, Inc. and Subsidiaries
Preliminary Cash Available to Pay Dividends
(Non-GAAP, Unaudited)
(In millions)
                                                                    
                   Three Months Ended              Nine Months Ended September
                   September 30,                   30,
                   2012            2011            2012            2011
KMP
distributions to
us
From ownership
of general         $  378          $  310          $  1,057        $  904
partner interest
(1)
On KMP units          33              25              86              74
owned by us (2)
On KMR shares         18              16              53              47      
owned by us (3)
Total KMP
distributions to      429             351             1,196           1,025
us (4)
EPB
distributions to
us
From ownership
of general            40              -               72              -
partner interest
(5)
On EPB units          52              -               102             -       
owned by us (6)
Total EPB
distributions to      92              -               174             -
us
NGPL's cash
available for         -               3               7               23      
distribution to
us (4)
                                                                    
Total cash            521             354             1,377           1,048
generated
General and
administrative
expenses and          (8     )        (2    )         (14    )        (7     )
sustaining
capital
expenditures
Interest expense      (82    )        (80   )         (167   )        (161   )
                                                                    
Cash available
to pay dividends      431             272             1,196           880
before cash
taxes
Cash taxes            (117   )        (84   )         (310   )        (257   )
                                                                    
Subtotal - Cash
available to pay      314             188             886             623
dividends (4)
                                                                    
El Paso
Corporation's
cash available
for distribution
EP operations -       236             -               378             -
EBITDA (7)
Interest expense      (139   )        -               (219   )        -
(8)
EP general and
administrative        (27    )        -               (35    )        -
expenses
Sustaining
capital               (22    )        -               (38    )        -       
expenditures (9)
EP's net cash         48              -               86              -
available (10)
                                                                    
Total -
Consolidated
cash available     $  362          $  188          $  972          $  623     
to pay dividends
(11)
Average Shares        1,039           708             864             707
Outstanding
                                                                    
Cash Available
Per Average        $  0.35         $  0.27         $  1.13         $  0.88
Share
Outstanding
Declared           $  0.36         $  0.30         $  1.03         $  0.74
Dividend

Notes
       Based on (i) Kinder Morgan Energy Partners, L.P. (KMP) distributions of
       $1.26 and $3.69 per common unit declared for the three and nine months
       ended September 30, 2012, respectively, and $1.16 and $3.45 per common
       unit declared for the three and nine months ended September 30, 2011,
       respectively, (ii) 340 million and 319 million aggregate common units,
       Class B units and i-units (collectively, KMP units) outstanding as of
       April 30, 2012 and April 29, 2011, respectively, (iii) 347 million and
       330 million aggregate KMP units outstanding as of July 31, 2012 and
       July 29, 2011, respectively, (iv) 365 million aggregate KMP units
(1)    estimated to be outstanding as of October 31, 2012 and 333 million
       aggregate KMP outstanding as of October 31, 2011 and (iv) waived
       incentive distributions of $6 million and $19 million for the three and
       nine months ended September 30, 2012, respectively, and $7 million and
       $21 million for the three and nine months ended September 30, 2011,
       respectively. In conjunction with KMP’s acquisition of its initial 50%
       interest in May 2010, and subsequently, the remaining 50% interest in
       May 2011 of KinderHawk, we as general partner of KMP have agreed to
       waive receipt of a portion of our incentive distributions related to
       this investment from the first quarter of 2010 through the first
       quarter of 2013.
       Based on 26 million KMP units ownd by us for the three months ended
(2)    September 30, 2012, and 22 million KMP units owned by us in the prior
       periods, multiplied by the KMP per unit distribution declared, as
       outlined in footnote (1) above.
       Assumes that we sold the Kinder Morgan Management, LLC (KMR) shares
       that we estimate to be received as distributions for the three and nine
       months ended September 30, 2012 and received as distributions for the
(3)    three and nine months ended September 30, 2011, respectively. We did
       not sell any KMR shares in the first nine months of 2012 or 2011. We
       intend periodically to sell the KMR shares we receive as distributions
       to generate cash.
       2011 KMP distributions to us have been presented on a declared basis
(4)    and NGPL amounts have been presented on a cash available basis to be
       consistent with the current year presentation.
       Based on (i) El Paso Pipelines Partners, L.P. (EPB) distributions of
       $0.58 and $1.13 per common unit declared for the three months and six
(5)    months ended September 30, 2012, respectively, and (ii) 208 million
       common units outstanding as of July 31, 2012 and 216 million common
       units estimated to be outstanding as of October 31, 2012.
(6)    Based on 90 million EPB units owned by us multiplied by the EPB per
       unit distribution declared, as outlined in footnote (5) above.
(7)    Includes our share of depreciation expense incurred by our equity
       investees.
       2012 amounts include interest associated with Kinder Morgan, Inc.'s
       (KMI) incremental debt issued to finance the cash portion of the El
       Paso Corporation (EP) acquisition purchase price as well as EP
(8)    consolidated interest expense, excluding EPB. EP interest expense is
       shown on an accrual basis (rather than a cash basis, as KMI is shown).
       Due to the timing of the EP cash interest payments, more than 7/12 of
       the payments occur after May 24.
(9)    Includes our share of sustaining capital expenditures incurred by our
       equity investees.
(10)   Represents cash available from El Paso Corporation (EP), exclusive of
       EPB operations, for the period after May 24, 2012.
       Excludes $37 million and $322 million in after-tax expenses associated
       with the EP acquisition and El Paso Energy (EPE) sale for the three and
       nine months ended September 30, 2012, respectively. The three months
       ended September 30, 2012 include (i) $60 million of expense for
       capitalized financing fees that were written-off in the third quarter
       upon the $360 million payoff and termination of the Bridge loan and a
(11)   $2.3 billion paydown on the Term loan and (ii) $23 million benefit
       associated with pension income and tax benefits on deferred
       compensation. The nine months ended September 30, 2012 include (i) $99
       million in employee severance, retention and bonus costs, (ii) $55
       million of accelerated EP stock based compensation allocated to the
       post-combination period under applicable GAAP rules, (iii) $37 million
       in advisory fees, (iv) $60 million write-off of capitalized financing
       fees described above, and (v) $69 million for legal fees and reserves.

                                                                  
Kinder Morgan, Inc. and Subsidiaries
Preliminary Consolidated Statements of Income (1)
(Unaudited)
(In millions, except per share amounts)
                                                                     
                                                                     
                   Three Months Ended September     Nine Months Ended
                   30,                              September 30,
                   2012            2011             2012            2011
                                                                     
Revenues           $  2,870        $  2,122         $  6,894        $  6,006  
                                                                     
Costs, expenses
and other
Operating             1,272           1,313            3,182           3,714
expenses
Depreciation,
depletion and         403             281              1,010           789
amortization
General and           259             109              889             399
administrative
Taxes, other
than income           88              37               207             134
taxes
Other expense         (4     )        1                (22    )        (12   )
(income)
                      2,018           1,741            5,266           5,024  
                                                                     
Operating income      852             381              1,628           982
                                                                     
Other income
(expense)
Earnings from
equity                101             50               238             156
investments
Amortization of
excess cost of        (5     )        (2     )         (9     )        (5    )
equity
investments
Interest, net         (523   )        (170   )         (993   )        (507  )
Other, net            21              (164   )         29              (156  )
                                                                     
Income before         446             95               893             470
income taxes
                                                                     
Income tax            (60    )        (66    )         (165   )        (249  )
expense
                                                                     
Income from
continuing            386             29               728             221
operations
                                                                     
Income from
discontinued          47              55               145             146
operations
Loss on
remeasurement to
fair value of         (178   )        -                (934   )        -      
discontinued
operations
(Loss) income
from                  (131   )        55               (789   )        146    
discontinued
operations
                                                                     
Net income            255             84               (61    )        367
(loss)
                                                                     
Net (income)
loss
attributable to       (55    )        68               156             72     
noncontrolling
interests
                                                                     
Net income
attributable to    $  200          $  152           $  95           $  439    
KMI
                                                                     
Class P Shares
Basic Earnings
Per Common Share
From Continuing    $  0.21         $  0.20          $  0.33         $  0.50
Operations (2)
(3)
Basic (Loss)
Earnings Per
Common Share          (0.02  )        0.01             (0.22  )        0.02   
From
Discontinued
Operations (1)
Total Basic
Earnings Per       $  0.19         $  0.21          $  0.11         $  0.52   
Common Share
                                                                     
Class A Shares
Basic Earnings
Per Common Share
From Continuing    $  0.19         $  0.18          $  0.26         $  0.46
Operations (2)
(3)
Basic (Loss)
Earnings Per
Common Share          (0.02  )        0.01             (0.22  )        0.02   
From
Discontinued
Operations (1)
Total Basic
Earnings Per       $  0.17         $  0.19          $  0.04         $  0.48   
Common Share
                                                                     
Basic Weighted
Average Number
of Shares
Outstanding
Class P Shares        605             111              366             111    
Class A Shares        432             596              496             596    
                                                                     
Class P Shares
Diluted Earnings
Per Common Share
From Continuing    $  0.21         $  0.20          $  0.33         $  0.50
Operations (2)
(3)
Diluted (Loss)
Earnings Per
Common Share          (0.02  )        0.01             (0.22  )        0.02   
From
Discontinued
Operations (1)
Total Diluted
Earnings per       $  0.19         $  0.21          $  0.11         $  0.52   
Common Share
                                                                     
Class A Shares
Diluted Earnings
Per Common Share
From Continuing    $  0.19         $  0.18          $  0.26         $  0.46
Operations (2)
(3)
Diluted (Loss)
Earnings Per
Common Share          (0.02  )        0.01             (0.21  )        0.02   
From
Discontinued
Operations (1)
Total Diluted
Earnings per       $  0.17         $  0.19          $  0.04         $  0.48   
Common Share
                                                                     
Diluted Weighted
Average Number
of Shares
Outstanding (4)
Class P Shares        1,039           708              864             707    
Class A Shares        432             596              496             596    
                                                                     
Declared
dividend per       $  0.36         $  0.30          $  1.03         $  0.74   
share (5)

Notes
      Includes the operations of EP and its consolidated subsidiaries for the
(1)   periods after May 25, 2012 and earnings per share reflect the issuance
      of 330 million shares that were used to provide for the equity portion
      of the EP acquisition purchase price.
      Nine months ended September 30, 2011 earnings exclude $71 million of
(2)   Members’ interest in net income prior to our Initial Public Offering,
      $67 million of which has been allocated to continuing operations and $4
      million of which has been allocated to discontinued operations.
      The Class A shares earnings per share as compared to the Class P shares
(3)   earnings per share has been primarily reduced by the dividends paid to
      the Class B shares on February 15, May 15, and August 15, 2012.
      Outstanding KMI warrants and convertible preferred securities (assumed
(4)   from the May 25, 2012 EP acquisition) were anti-dilutive during the
      three and nine months ended September 30, 2012.
      Nine months 2011 dividend per share has been prorated for the portion of
      the first quarter we were a public company ($0.14 per share). If KMI had
(5)   been a public company for the entire nine months, the year to date
      declared dividend would have been $0.89 per share ($0.29, $0.30 and
      $0.30 per share for the first, second and third quarter of 2011,
      respectively).

                                                                
Kinder Morgan, Inc. and Subsidiaries
Preliminary Reconciliation of Cash Available to Pay Dividends from Continuing
Operations
(Unaudited)
(In millions)
                                                                   
                  Three Months Ended             Nine Months Ended September
                  September 30,                  30,
                  2012           2011            2012             2011
Income from
continuing        $  386         $  29           $  728           $  221
operations (1)
Income from
discontinued         48             55              145              146
operations (1)
Income
attributable to      -              -               (37     )        -
EPB (2)
Distributions
declared by EPB      -              -               82               -
(2)
Depreciation,
depletion and        403            288             1,017            808
amortization
(3)
Amortization of
excess cost of       5              2               9                5
investments (1)
Earnings from
equity               (123  )        (71   )         (302    )        (215    )
investments (4)
Distributions
from equity          115            65              283              201
investments
Distributions
from equity
investments in       46             54              159              185
excess of
cumulative
earnings
KMP certain          48             232             33               480
items (5)
EP acquisition
related costs        70             -               464              -
(6)
EP certain           11             -               16               -
items (7)
KMI deferred
tax adjustment       (3    )        -               35               -
(8)
Difference
between cash         (65   )        (21   )         (212    )        (29     )
and book taxes
Difference
between cash
and book             (39   )        (39   )         (14     )        (37     )
interest
expense for KMI
Sustaining
capital              (117  )        (55   )         (232    )        (141    )
expenditures
(9)
KMP declared
distribution on
its limited          (408  )        (345  )         (1,155  )        (1,007  )
partner units
owned by the
public (10)
EPB declared
distribution on
its limited          (72   )        -               (137    )        -
partner units
owned by the
public (11)
Other (12)           57             (6    )         90               6        
                                                                   
Cash available
to pay            $  362         $  188          $  972           $  623      
dividends (13)

Notes                                                               
(1)    Consists of the corresponding line items in the preceding Preliminary
       Unaudited Consolidated Statement of Income.
       On May 25, 2012, we began recognizing income from our investment in
(2)    EPB, and we received in the third quarter the full distribution for the
       second quarter as we were the holder of record as of July 31, 2012.
(3)    Consists of    Three Months Ended              Nine Months Ended
       the following: September 30,                   September 30,
                      2012           2011             2012            2011
       Depreciation,
       depletion and
       amortization   $  403         $  282           $  1,010        $ 790   
       from
       continuing
       operations
       Depreciation,
       depletion and
       amortization   $  -           $  6             $  7            $ 18    
       from
       discontinued
       operations
                                                                       
(4)    Consists of    Three Months Ended              Nine Months Ended
       the following: September 30,                   September 30,
                      2012           2011             2012            2011
       Earnings from
       equity
       investments    $  (101  )     $  (50  )        $  (238   )     $ (156 )
       from
       continuing
       operations
       Earnings from
       equity
       investments    $  (22   )     $  (21  )        $  (64    )     $ (59  )
       from
       discontinued
       operations
                                                                       
       Consists of items such as hedge ineffectiveness, legal and
       environmental reserves, gain/loss on sale, insurance proceeds from
       casualty losses, and asset disposition expenses. Three months 2011
       includes $167 million non-cash loss on remeasurement of KMP’s
       previously held equity interest in KinderHawk to fair value and $69
       million related to rate case and other litigation matters in KMP’s
       products pipelines on the West Coast. Nine months 2011 includes (i)
       $167 million non-cash loss on KMP’s previously held equity interest in
       KinderHawk discussed above, (ii) $234 million increase to KMP’s legal
       reserve attributable to rate case and other litigation involving KMP’s
       products pipelines on the West Coast and (iii) KMP’s portion ($87
(5)    million) of a $100 million special bonus expense for non-senior
       employees, which KMP is required to recognize in accordance with U.S.
       generally accepted accounting principles. However, KMP has no
       obligation, nor did it pay any amounts in respect to such bonuses. The
       cost of the $100 million special bonus to non-senior employees was not
       borne by our Class P shareholders. In May of 2011 we paid for the $100
       million of special bonuses, which included the amounts allocated to
       KMP, using $64 million (after-tax) in available earnings and profits
       reserved for this purpose and not paid in dividends to our Class A
       shareholders. KMP adds back these certain items in its calculation of
       distributable cash flow used to determine its distribution. For more
       information, see KMP’s 3rd Quarter 2012 Earnings Release filed on Form
       8-K with the SEC on October 17, 2012.
       Includes pre-tax expenses associated with the EP acquisition and EPE
       sale. The three months ended September 30, 2012 include (i) $94 million
       of expense for capitalized financing fees that were written-off in the
       third quarter upon the $360 million payoff and termination of the
       Bridge loan and a $2.3 billion paydown on the Term loan and (ii) $38
(6)    million benefit associated with pension income and legal recoveries.
       The nine months ended September 30, 2012 include (i) $157 million in
       employee severance, retention and bonus costs, (ii) $87 million of
       accelerated EP stock based compensation allocated to the
       post-combination period under applicable GAAP rules, (iii) $37 million
       in advisory fees, (iv) $94 million write-off of capitalized financing
       fees described above, and (v) $96 million for legal fees and reserves.
(7)    Amounts primarily represent legacy marketing contracts and associated
       interest.
(8)    Due to an increase in our effective income tax rate as a result of the
       EP acquisition.
(9)    We define sustaining capital expenditures as capital expenditures that
       do not expand the capacity of an asset.
       Declared distribution multiplied by limited partner units outstanding
       on the applicable record date less units owned by us. Includes
(10)   distributions on KMR shares. KMP must generate the cash to cover the
       distributions on the KMR shares, but those distributions are paid in
       additional shares and KMP retains the cash. We do not have access to
       that cash.
(11)   Declared distribution multiplied by limited partner units outstanding
       on the applicable record date less units owned by us.
       Consists of items such as timing and other differences between earnings
       and cash, KMP’s and EPB's cash flow in excess of their distributions,
       non-cash purchase accounting adjustments related to the EP acquisition
(12)   and going private transaction primarily associated with non-cash
       amortization of debt fair value adjustments, and in the nine months of
       2011 KMP’s crude hedges, and KMI certain items, which includes for the
       first nine months of 2011, our portion ($13 million) of the special
       bonus as described in footnote (5) above.
       2011 KMP distributions to us have been presented on a declared basis
(13)   and NGPL amounts have been presented on a cash available basis to be
       consistent with the current year presentation.

                                                                
Kinder Morgan, Inc. and Subsidiaries
Preliminary Consolidated Balance Sheets
(Unaudited)
(In millions)
                                                                  
                                               September 30,     December 31,
                                               2012 (1)          2011
ASSETS
                                                                  
Cash and cash equivalents - KMI                $  175            $  2
Cash and cash equivalents - KMP                   532               409
Cash and cash equivalents - EPB                   68                -
Other current assets                              4,347             1,252
Property, plant and equipment, net - KMI          5,601             2,330
Property, plant and equipment, net - KMP          19,326            15,596
Property, plant and equipment, net - EPB          5,954             -
Investments                                       6,135             3,744
Goodwill - KMI                                    18,997            3,637
Goodwill - KMP                                    4,605             1,437
Goodwill - EPB                                    22                -
Deferred charges and other assets                 4,382             2,311    
TOTAL ASSETS                                   $  70,144         $  30,717   
                                                                  
LIABILITIES AND SHAREHOLDERS' EQUITY
                                                                  
Liabilities
Short-term debt:
KMI                                            $  1,159          $  1,261
KMP                                               2,697             1,638
EPB                                               93                -
Other current liabilities                         2,911             1,630
Long-term debt:
KMI                                               10,213            1,978
KMP                                               15,217            11,184
EPB                                               4,250             -
Preferred interest in general partner of KMP      100               100
Debt fair value adjustments (2)                   2,695             1,094
Deferred income taxes                             4,012             2,199
Other long-term liabilities                       2,900             1,065    
Total liabilities                                 46,247            22,149   
                                                                  
Shareholders' Equity
Accumulated other comprehensive loss              (60     )         (115    )
Other shareholders' equity                        14,202            3,435    
Total KMI equity                                  14,142            3,321
Noncontrolling interests                          9,755             5,247    
Total shareholders' equity                        23,897            8,568    
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY     $  70,144         $  30,717   
                                                                  
Debt, net of cash
KMI (3)                                        $  11,197         $  3,237
KMP                                               17,382            12,413
EPB                                               4,275             -        
Total Consolidated Debt                        $  32,854         $  15,650   

Notes
(1)   Includes the May 25, 2012 acquisition of EP, and its consolidated
      subsidiaries.
      Amounts include the fair value of interest rate swaps, debt discounts
(2)   and premiums, and as of September 30, 2012, purchase price allocation
      adjustments to record EP's debt, including EPB debt, at its May 25, 2012
      fair value.
(3)   Amounts exclude Preferred interest in general partner of KMP.

Contact:

Kinder Morgan, Inc.
Emily Mir, 713-369-8060
Media Relations
emily_mir@kindermorgan.com
or
Mindy Mills Thornock, 713-369-9490
Investor Relations
mindy_thornock@kindermorgan.com
www.kindermorgan.com
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