Kinder Morgan Energy Partners Increases Ownership Stake to 100 Percent in El Paso Natural Gas Pipeline and Midstream Assets

  Kinder Morgan Energy Partners Increases Ownership Stake to 100 Percent in El
  Paso Natural Gas Pipeline and Midstream Assets

Business Wire

HOUSTON -- March 1, 2013

Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced that it has
completed the previously announced acquisition (drop down) of 50percent of El
Paso Natural Gas Company, L.L.C. (EPNG) and 50 percent of former El Paso
Midstream assets in Utah and South Texas from Kinder Morgan, Inc. (NYSE: KMI).
The transaction has a total value of approximately $1.655 billion, including
approximately $560 million of proportional debt at EPNG. The transaction is
expected to be immediately accretive to cash available for distribution to KMP
unitholders. KMP now owns 100 percent of both EPNG and the midstream assets.
The transaction, which closed and is effective March 1, was approved by the
independent boards of both KMI and Kinder Morgan Management, L.L.C. (NYSE:
KMR).

KMP purchased the assets at about eight times 2013 EBITDA. KMP funded 10
percent of the transaction value, net of debt assumed, with KMP units valued
at approximately $110million that were issued to KMI at closing. The
remaining value was funded with cash. KMI intends to use the proceeds from the
dropdown to pay down debt that was associated with the May 2012 purchase of El
Paso Corporation.

EPNG is a 10,200-mile pipeline system with a design capacity of about 5.6
billion cubic feet per day (Bcf/d) of gas. It transports natural gas from the
San Juan, Permian and Anadarko basins to California, other western states,
Texas and northern Mexico. EPNG has up to 44 Bcf of working natural gas
storage capacity.

The midstream assets include Altamont gathering, processing and treating
assets in the Uinta Basin in Utah and the Camino Real gathering system in the
Eagle Ford shale in South Texas. The Altamont System has over 1,200 miles of
pipeline infrastructure, over 450 well connections with producers, and it
operates a processing plant with a design capacity of over 60million cubic
feet per day (MMcf/d) of gas being expanded to 80 MMcf/d and a 5,600 barrel
per day (bpd) natural gas liquids fractionator. The Camino Real Gathering
System has 150MMcf/d of gas gathering capacity and 110,000 bpd of oil
gathering capacity.

In connection with the transaction, BofA Merrill Lynch provided certain
financial advisory services to the board of directors of Kinder Morgan, Inc.
Greenhill & Co., LLC provided certain financial advisory services to the
conflicts and audit committee of the board of directors of Kinder Morgan G.P.,
Inc. and Kinder Morgan Management, LLC.

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 46,000 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 interests of KMP and El Paso Pipeline Partners, L.P.
(NYSE: EPB), along with limited partner interests in KMP, Kinder Morgan
Management, LLC (NYSE: KMR) and EPB. For more information please visit
www.kindermorgan.com.

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/EPB 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.

Contact:

Kinder Morgan Energy Partners, L.P.
Richard Wheatley, (713) 420-6828
Media Relations
richard_wheatley@kindermorgan.com
Peter Staples, (713) 369-9221
Investor Relations
peter_staples@kindermorgan.com
www.kindermorgan.com
 
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