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El Paso Pipeline Partners Increases Quarterly Distribution to $0.62 Per Unit

  El Paso Pipeline Partners Increases Quarterly Distribution to $0.62 Per Unit

              Distribution Up 22 Percent From First Quarter 2012

Business Wire

HOUSTON -- April 17, 2013

El Paso Pipeline Partners, L.P. (NYSE: EPB) today increased its quarterly cash
distribution per common unit to $0.62 ($2.48 annualized) payable on May 15,
2013, to unitholders of record as of April 29, 2013. This represents a 22
percent increase over the first quarter 2012 cash distribution per unit of
$0.51 ($2.04 annualized) and is up from $0.61 per unit ($2.44 annualized) for
the fourth quarter of 2012. EPB has increased its cash distribution 20
consecutive quarters since its initial public offering in November 2007.

Chairman and CEO Richard D. Kinder said, “EPB had a solid first quarter with
total asset earnings before DD&A and certain items of $317 million, up 12
percent from $283 million for the same period last year. Results were led by
contributions from the May 24, 2012, dropdown from its general partner of the
remaining 14 percent of Colorado Interstate Gas and all of Cheyenne Plains
Pipeline, along with good results from Southern Natural Gas (SNG) attributable
to a completed expansion project. Deliveries to gas-fired power generation
were up 4 percent on SNG in the first quarter versus the same period a year
ago, which also had experienced very strong growth in natural gas demand for
power generation.”

“Looking ahead, growth at EPB is expected to be driven by our stable,
regulated natural gas pipeline and storage assets,” Kinder said. “We are
particularly excited about the significant LNG export opportunities we are
pursuing, including our recent announcement with a subsidiary of Shell to
build a natural gas liquefaction plant at our existing LNG terminal on Elba
Island (see other news section).”

EPB reported first quarter distributable cash flow before certain items of
$169 million, an 18 percent increase from $143 million for the comparable
period in 2012. Distributable cash flow per unit before certain items was
$0.78, compared to $0.69 for the first quarter last year.

First quarter net income before certain items was $177 million compared to
$141 million for the same period in 2012. Including certain items, net income
was $174 million versus $155million for the first quarter last year.

2013 Outlook

As previously announced, EPB expects to declare cash distributions of $2.55
per unit for 2013, a 13 percent increase over the $2.25 per unit it
distributed for 2012. EPB’s budget includes the expected purchase (dropdown)
of 50 percent of Gulf LNG from Kinder Morgan, Inc. (NYSE: KMI) during 2013.

In 2013, EPB expects to generate earnings before DD&A of $1.22 billion (adding
back EPB’s share of joint venture DD&A), an increase of over $40 million
compared to 2012. Additionally, EPB expects to produce excess cash flow of
approximately $25 million above the 2013 distribution target of $2.55.

Other News

  *In January, Southern LNG Company (SLNG), a subsidiary of EPB, and Shell US
    Gas & Power LLC, a subsidiary of Royal Dutch Shell plc, announced their
    intent to form a limited liability company to develop a natural gas
    liquefaction plant in two phases at SLNG’s existing Elba Island LNG
    Terminal, near Savannah, Ga. Subject to regulatory approval, Shell and
    SLNG will also modify EPB’s Elba Express Pipeline and Elba Island LNG
    Terminal to physically transport natural gas to the terminal and to load
    the liquefied natural gas (LNG) onto ships for export by Shell. The
    project has already received Free Trade Agreement (FTA) approval and has
    applied for non-FTA approval. The construction of the first phase is not
    contingent on FTA approval. Under two phases of development, the total
    project is expected to have liquefaction capacity of approximately
    2.5million tonnes per year of LNG or approximately 350 million cubic feet
    of gas per day. The company expects to file full project applications with
    the Federal Energy Regulatory Commission (FERC) during the fourth quarter
    2013.
  *Gulf LNG, which EPB expects to purchase the 50 percent membership interest
    from KMI later this year, is working with potential customers on a project
    to build a future LNG liquefaction export terminal on a site adjacent to
    its existing LNG import/regasification facility at Pascagoula, Miss. In
    June 2012, the proposed LNG export project received FTA approval for a
    25-year period from the U.S. Department of Energy for exporting up to
    11.5million tonnes per year of domestically produced LNG, equivalent to
    approximately 1.5billion cubic feet per day of natural gas. The project
    has also applied for non-FTA approval.
  *Elba Express Pipeline completed the construction of a new 10,000
    horsepower compressor station in Hart County, Ga., on schedule and placed
    the station in service in early April. The station provides customers with
    an additional 220 million cubic feet per day of capacity and increased
    operational flexibility in transporting natural gas either north or south
    on the 190-mile Elba Express Pipeline to serve the proposed Elba Island
    liquefaction project. The company is also planning an additional
    compression station for future installation along the Elba Express
    Pipeline.

  *Wyoming Interstate Company (WIC) filed a cost and revenue study with FERC
    at the end of January in order to comply with the commission’s rate
    proceeding that it initiated last year under Section 5 of the Natural Gas
    Act. The as-filed cost and revenue study supports WIC’s current rates. If
    this matter is not resolved through settlement negotiations, a hearing is
    scheduled in the third quarter of this year. The expected outcome from
    this FERC action is not anticipated to have a substantial impact on the
    overall earnings of EPB.

Financings

  *EPB sold common units valued at almost $22 million during the first
    quarter under its at-the-market program.

El Paso Pipeline Partners (NYSE: EPB) is a publicly traded pipeline limited
partnership. It owns an interest in or operates more than 13,000 miles of
interstate natural gas transportation pipelines in the Rockies and the
Southeast, natural gas storage facilities with a capacity of nearly 100
billion cubic feet and LNG assets in Georgia. The general partner of EPB 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 $110 billion. It owns an interest
in or operates approximately 73,000 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 Kinder Morgan Energy Partners, L.P. (NYSE: 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 http://www.kindermorgan.com.

Please join Kinder Morgan at 4:30 p.m. Eastern Time on Wednesday, April 17, at
www.kindermorgan.com for a LIVE webcast conference call which will include a
discussion of EPB’s first 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 earnings before depreciation, depletion,
amortization, or DD&A, and certain items, are presented in this news release.
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 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 sustaining capital
expenditures for EPB, plus DD&A less sustaining capital expenditures for our
equity method investees Bear Creek, WYCO and as of January 1, 2013 Elba
Liquefaction, plus other income and expenses, net (which primarily includes
deferred revenue, non-cash AFUDC equity and other items). 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 earnings before DD&A and certain items in
its analysis of the performance and management of our business. We believe
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 our ability 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 and assessing our 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. Earnings before DD&A as
presented in our GAAP financials is the measure most directly comparable to
earnings before DD&A and certain items. Earnings before DD&A and certain items
is calculated by removing the certain items attributable to the partnership,
which are specifically identified in the footnotes to the accompanying tables,
from earnings before DD&A. In addition, 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, operating income or any other GAAP measure.
Distributable cash flow before certain items and 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.
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 EPB 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 EPB’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, 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.


El Paso Pipeline Partners, L.P.
Preliminary Consolidated Statements of Income
(Unaudited)
(in millions, except per unit amounts)
                                                        
                                                                   
                                           Three Months Ended March 31,
                                           2013                    2012 ^(1)
                                                                   
Revenues                                   $  386                 $  390   
                                                                   
Costs, expenses and other
Operations and maintenance                    71                      100
Depreciation and                              45                      46
amortization
Taxes, other than income                     21                    22    
taxes
                                             137                   168   
Operating income                              249                     222
                                                                   
Other income (expense)
Earnings from equity                          3                       3
investments
Interest expense, net                         (75   )                 (72   )
Other, net                                   (3    )                2     
Net income                                   174                   155   
                                                                   
Net income attributable to                   -                     (6    )
noncontrolling interests
Net income attributable to                 $  174                 $  149   
EPB
                                                                   
Calculation of Limited
Partners' interest in net
income attributable to EPB
Net income attributable to                 $  174                  $  149
EPB
Less: Pre-acquisition
earnings allocated to                         -                       (14   )
General Partner (2)
Less: General Partner's 2%                    (3    )                 (3    )
interest allocation
Less: General Partner's                      (45   )                (21   )
incentive distribution
Limited Partners' interest                 $  126                 $  111   
in net income
                                                                   
Limited Partners' net
income per unit
Net income                                 $  0.58                $  0.54  
Weighted average units                       216                   206   
outstanding
                                                                   
Declared distribution /                    $  0.62                $  0.51  
unit
                                                                   
Notes:
(1) Retrospectively adjusted to reflect reorganization of entities under
common control and change in reporting entity due to EPB's May 24, 2012
acquisition of Cheyenne Plains from El Paso LLC.
(2) Represents Cheyenne Plains' earnings prior to EPB's May 24, 2012
acquisition of Cheyenne Plains from El Paso LLC.


                                                           
El Paso Pipeline Partners, L.P.
Preliminary Reconciliation of Distributable Cash Flow to Net Income
(Unaudited)
(in millions, except per unit amounts)
                                                                     
                                                                     
                                                  Three Months Ended March 31,
                                                  2013               2012
Earnings before DD&A and certain items            $  317             $ 283
DD&A                                                45              43    
Earnings contribution                                272               240
General and administrative expense                   (20   )           (30   )
Interest expense, net                               (75   )          (69   )
Net income before certain items                      177               141
Certain items
Cheyenne Plains pre-acquisition                      -                 14
earnings
Amortization of regulatory asset                    (3    )          -     
related to offshore asset sale
Sub-total certain items                             (3    )          14    
Net Income                                        $  174            $ 155   
Less: Pre-acquisition earnings                       -                 (14   )
allocated to General Partner (1)
Less: General Partner's 2% interest                  (3    )           (3    )
allocation
Less: General Partner's incentive                    (45   )           (21   )
distribution
Less: Noncontrolling Interests in net               -               (6    )
income
Limited Partners' net income                      $  126            $ 111   
                                                                     
Net income before certain items                   $  177             $ 141
Less: Net income attributable to
Noncontrolling Interests before certain             -               (6    )
items
Net income attributable to EPB before                177               135
certain items
Less: General Partner's 2% interest                  (3    )           (3    )
allocation
Less: General Partner's incentive                   (45   )          (21   )
distribution
Limited Partners' net income before                  129               111
certain items
Depreciation and amortization (2)                    45                43
Net income attributable to
noncontrolling interests before certain              -                 6
items
Declared distributions to
noncontrolling interests before certain              -                 (8    )
items (3)
Other (4)                                            -                 (1    )
Sustaining capital expenditures (5)                 (5    )          (8    )
DCF before certain items - Limited                $  169            $ 143   
Partners
                                                                     
Net income / unit before certain items            $  0.60           $ 0.54  
DCF / unit before certain items                   $  0.78           $ 0.69  
Weighted average units outstanding                  216             206   
                                                                     
Notes ($ millions):
(1) Represents earnings related to Cheyenne Plains prior to the May 24, 2012
acquisition.
(2) Includes EPB's share of Bear Creek and WYCO DD&A (less than $0.3 for each
of the periods presented).
(3) Cash distributions made to the noncontrolling interest holder.
(4) Includes deferred revenue and other non-cash items such as AFUDC equity
and other items.
(5) Includes EPB's share of Bear Creek and WYCO sustaining capital
expenditures:
Approximately $1 and $0.1 for the three months ended March 31, 2013 and 2012,
respectively.
                                                                     
Transport Volumes (BBtu/d)                          7,884           7,810 
                                                                             


El Paso Pipeline Partners, L.P.
Preliminary Abbreviated Consolidated Balance Sheet
(Unaudited)
(in millions)
                                                       
                                       March 31,                  December 31,
                                       2013                       2012
ASSETS
Cash and cash                          $   206                    $  114
equivalents
Other current assets                       231                       241
Property, plant and                        5,900                     5,931
equipment, net
Investments                                71                        72
Regulatory assets and                     218                     223    
other assets
TOTAL ASSETS                           $   6,626                 $  6,581  
                                                                  
LIABILITIES AND
PARTNERS' CAPITAL
Liabilities
Notes payable and
current maturities of                  $   164                    $  93
long-term debt
Other current                              213                       188
liabilities
Long-term debt (1)                         4,174                     4,246
Other                                     71                      67     
Total liabilities                          4,622                     4,594
                                                                  
Partners' capital
Accumulated other                          10                        10
comprehensive income
Other partners'                           1,994                   1,977  
capital
Total partners'                           2,004                   1,987  
capital
TOTAL LIABILITIES AND                  $   6,626                 $  6,581  
PARTNERS' CAPITAL
                                                                  
Total Debt, net of
cash and cash                          $   4,140                  $  4,233
equivalents (2)
EBITDA (3) (4)                         $   1,117                  $  1,073
Debt to EBITDA (2)                         3.7                       3.9
                                                                  
                                       Twelve Months Ended
                                       March 31, 2013             December 31,
                                                                  2012
Net Income                             $   608                    $  589
Certain items:
Cheyenne Plains before                     (8      )                 (22    )
dropdown
CIG environmental                          (6      )                 (6     )
reserve adjustment
Loss on write-off of                       11                        11
asset
Non-cash severance                         34                        34
costs
Amortization of
regulatory asset                          5                       2      
related to offshore
asset sale
Subtotal certain items                    36                      19     
Net income before                          644                       608
certain items
Add:
Depreciation and                           178                       176
amortization (4)
Interest expense, net                     295                     289    
EBITDA                                 $   1,117                 $  1,073  
                                                                  
Notes ($ millions):
(1) Amounts are net of unamortized discount of $8 as of March 31, 2013 and
December 31, 2012, respectively.
(2) Amounts reflect the gross debt balance before unamortized discount for
each of the periods presented.
(3) Amounts represent the last twelve months.
(4) Includes add back of EPB's share of Bear Creek and WYCO DD&A, which was
less than $1 for each of the twelve months ended March 31, 2013 and December
31, 2012.


Contact:

El Paso Pipeline Partners, L.P.
Media Relations
Emily Mir, (713) 369-8060
emily_mir@kindermorgan.com
or
Investor Relations
(713) 369-9490
km_ir@kindermorgan.com
www.kindermorgan.com