Double Eagle Pipeline Announces Expansion to Allow More Eagle Ford Shale Crude and Condensate to Move to Houston Ship Channel

  Double Eagle Pipeline Announces Expansion to Allow More Eagle Ford Shale
  Crude and Condensate to Move to Houston Ship Channel

Business Wire

HOUSTON & TULSA -- December 20, 2013

Kinder Morgan Crude and Condensate LLC (KMCC) and Double Eagle Pipeline LLC, a
50/50 joint venture between Magellan Midstream Partners, L.P. (NYSE: MMP) and
Kinder Morgan Energy Partners, L.P. (NYSE: KMP), today announced that they
have entered into a long-term agreement with Anadarko Petroleum Corporation
(NYSE: APC) to transport Eagle Ford Shale production from Gardendale, Texas,
in LaSalle County, to the Houston Ship Channel via the KMCC Pipeline. Double
Eagle will construct 160,000 barrels of storage capacity and a pump station at
Gardendale in addition to building an approximately 10-mile pipeline to
connect the Double Eagle Pipeline and the KMCC Pipeline in Karnes County,
Texas. Double Eagle will transport product from its new Gardendale station to
the KMCC Helena station in Karnes County. KMCC will construct 240,000 barrels
of storage at its Helena Station to move crude and condensate from the Double
Eagle Pipeline to the KMCC delivery points. Double Eagle and KMCC expect to
complete construction of these facilities in early 2015 to move production to
the Houston Ship Channel.

“We believe connecting the Double Eagle and KMCC systems will offer unique
flexibility for Anadarko and other Eagle Ford producers to access both the
Corpus Christi and Houston-area markets,” said Don Lindley, president of
Natural Gas Liquids for KMP, regarding the approximately $45 million Kinder
Morgan investment. The transaction is expected to be immediately accretive to
cash distributable to MMP and KMP unitholders upon the project’s completion.

“We are pleased that customer demand on the Double Eagle system is continuing
to grow,” said Michael Mears, Magellan’s chief executive officer. “The
increased connectivity for the Double Eagle system is in direct response to
our customers’ desire to more efficiently supply additional condensate barrels
to the Houston Ship Channel.”

The Double Eagle Pipeline includes 140 miles of new 12-inch pipeline
connecting to an existing 50-mile, 14- and 16-inch pipeline segment owned by
Kinder Morgan extending from Three Rivers, Texas, to Magellan’s marine and
storage terminal in Corpus Christi, Texas. The initial capacity of the
pipeline is 100,000 barrels per day, but can be expanded with additional

About Magellan Midstream Partners, L.P.

Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly traded partnership
that primarily transports, stores and distributes refined petroleum products
and crude oil. The partnership owns the longest refined petroleum products
pipeline system in the country, with access to more than 40% of the nation’s
refining capacity, and can store over 80 million barrels of petroleum products
such as gasoline, diesel fuel and crude oil. More information is available at

About Kinder Morgan Energy Partners

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 more than 54,000 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 fourth largest energy company in North America
with a combined enterprise value of approximately $105 billion. It owns an
interest in or operates more than 82,000 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 and EPB and shares in Kinder
Morgan Management, LLC (NYSE: KMR). For more information please visit

Kinder Morgan’s Forward-Looking Statement

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.

Magellan Midstream Partners’ Forward-Looking Statement

Portions of this document constitute forward-looking statements as defined by
federal law. Although Magellan Midstream Partners, L.P. believes any such
statements are based on reasonable assumptions, actual outcomes may be
materially different. Among the key risk factors associated with the project
that may have a direct impact on the partnership’s results of operations and
financial condition are: (1) the ability to obtain all required permits and
regulatory approvals on time; (2) the ability to complete construction of the
project on time and at expected costs; (3) price fluctuations and overall
demand for refined petroleum products; (4) changes in tariff rates or other
terms imposed by state or federal regulatory agencies; (5) the occurrence of
an operational hazard or unforeseen interruption; (6) disruption in the debt
and equity markets that negatively impacts the ability to finance capital
spending and (7) failure of customers or vendors to meet or continue
contractual obligations. Additional information about issues that could lead
to material changes in Magellan Midstream Partners, L.P.’s performance is
contained in the partnership’s filings with the Securities and Exchange
Commission. Magellan Midstream Partners, L.P. undertakes no obligation to
revise these forward-looking statements to reflect events or circumstances
occurring after today’s date.

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Kinder Morgan Energy Partners
Media Relations
Richard Wheatley, (713) 420-6828
Investor Relations, (713) 369-9490
Magellan Midstream Partners
Media Relations
Bruce Heine, (918) 574-7010
Investor Relations
Paula Farrell, (918) 574-7650
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