Breaking News

Tweet TWEET

KMI Cash Available to Pay Dividends up 21% over 2012

  KMI Cash Available to Pay Dividends up 21% over 2012

                 Dividend 11% Higher Than Fourth Quarter 2012

Business Wire

HOUSTON -- January 15, 2014

Kinder Morgan, Inc. (NYSE: KMI) today reported fourth quarter cash available
to pay dividends of $482 million, an increase of 10 percent from $439million
for the comparable period in 2012. For the full year, KMI reported cash
available to pay dividends of $1.713 billion, up 21 percent from $1.411
billion in 2012 and exceeding its published annual budget of $1.632 billion.

The board of directors declared a quarterly dividend of $0.41 per share ($1.64
annualized), which is payable on Feb. 18, 2014, to shareholders of record as
of Jan. 31, 2014. This represents an increase of 11 percent from the fourth
quarter 2012 cash dividend per share of $0.37 ($1.48 annualized).

Chairman and CEO Richard D. Kinder said, “KMI had an excellent fourth quarter
and year. Growth was driven by continued outstanding performance at Kinder
Morgan Energy Partners (KMP) highlighted by the strong results produced by the
assets it acquired through the Copano and El Paso transactions, and a full
year of contributions from El Paso Pipeline Partners (EPB). As a result, KMI
met its revised target to declare a dividend of $1.60 per share for the full
year and actually generated $1.65 per share in cash available per share
outstanding. Looking ahead, we believe that our large footprint of diversified
assets will continue to generate stable, attractive risk-adjusted returns to
our investors. We are excited about 2014, and currently have identified
approximately $14.8 billion in expansion and joint venture investments at KMP
and EPB that we are confident will come to fruition and drive growth at KMI
for years to come. We are also pursuing customer commitments for many more
projects.”

Outlook

As previously announced, KMI expects to declare dividends of $1.72 per share
for 2014, an 8 percent increase over its 2013 declared dividend of $1.60 per
share. Growth in 2014 is expected to be driven by continued strong performance
at KMP and contributions from EPB.

The growth at KMI from KMP and EPB will be partially offset by the loss of
income from the 2013 and expected 2014 sales (dropdowns) of certain assets to
KMP and EPB. Subject to appropriate board approvals, KMI expects to drop down
its 50 percent interest in Ruby Pipeline, its 50 percent interest in Gulf LNG
and its 47.5 percent interest in Young Gas Storage to EPB during 2014.

The boards of directors of the Kinder Morgan companies approved the 2014
budgets at the January board meeting, and the budgets will be discussed in
detail during the company’s annual analyst conference on Jan. 29, 2014, in
Houston. The conference starts at 8 a.m. CT and will be webcast live.

Other News

  *KMI repurchased 5.2 million shares of its common stock during the fourth
    quarter for approximately $172 million. KMI has fully utilized the $350
    million share and warrant repurchase program authorized by the board of
    directors in July of 2013 and has $94 million remaining on the $250
    million authorized by the board in October of 2013 for share and warrant
    repurchase.

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 80,000 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 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 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, Jan. 15, at
www.kindermorgan.com for a LIVE webcast conference call on the company’s
fourth quarter and year-end earnings.

The non-generally accepted accounting principles, or non-GAAP, financial
measure of cash available to pay dividends is presented in this news release.
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 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 relative to share price).
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, except per share amounts)
                                                             
                         Three Months Ended December         Year Ended December 31,
                         31,
                         2013              2012              2013              2012
KMP
distributions
to us
From ownership
of general               $ 462             $ 397             $ 1,756           $ 1,454
partner
interest (1)
On KMP units
owned by us                37                34                147               120
(2)
On KMR shares
owned by us               22              20              83              73    
(3)
Total KMP
distributions             521             451             1,986           1,647 
to us
                                                                               
EPB
distributions
to us
From ownership
of general                 56                46                211               118
partner
interest (4)
On EPB units
owned by us               58              55              230             157   
(5)
Total EPB
distributions             114             101             441             275   
to us
                                                                               
Cash generated
from KMP and               635               552               2,427             1,922
EPB
General and
administrative             (9    )           (9    )           (50   )           (35   )
expenses and
other (6)
Interest                   (10   )           (14   )           (132  )           (181  )
expense
Cash taxes (7)            (130  )          (109  )          (516  )          (419  )
Cash available
for
distribution              486             420             1,729           1,287 
to us from KMP
and EPB
                                                                               
Cash available
from other
assets
Cash generated
from other                 84                115               375               439
assets (8)
EP debt
assumed                    (71   )           (81   )           (316  )           (235  )
interest
expense (9)
EP acquisition
debt interest             (17   )          (15   )          (75   )          (80   )
expense (10)
Cash available
for
distribution              (4    )          19              (16   )          124   
to us from
other assets
                                                                               
Cash available
to pay                   $ 482            $ 439            $ 1,713          $ 1,411 
dividends (11)
                                                                               
Weighted
Average Shares
Outstanding                1,041             1,039             1,040             908
for Dividends
(12)
                                                                               
Cash Available
Per Average              $ 0.46            $ 0.42            $ 1.65            $ 1.55
Share
Outstanding
Declared                 $ 0.41            $ 0.37            $ 1.60            $ 1.40
Dividend
                                                                                       

      
Notes
            Based on (i) Kinder Morgan Energy Partners, L.P. (KMP)
            distributions of $1.36 and $5.33 per common unit declared for the
            three months and year ended December 31, 2013, respectively, and
            $1.29 and $4.98 per common unit declared for the three months and
            year ended December 31, 2012, respectively; (ii) 381 million and
            340 million aggregate common units, Class B units and i-units
            (collectively KMP units) outstanding as of April 29, 2013 and
            April 30, 2012, respectively; (iii) 433 million and 347 million
            KMP units outstanding as of July 31, 2013 and 2012, respectively;
            (iv) 438 million and 365 million KMP units outstanding as of
            October 31, 2013 and 2012, respectively; (v) 444 million KMP units
            estimated to be outstanding as of January 31, 2014 and 373 million
(1)      KMP units outstanding as of January 31, 2013; (vi) waived
            incentive distributions of $4 million for the year ended December
            31, 2013 and $7 million and $26 million for the three months and
            year ended December 31, 2012, respectively, related to KMP's
            acquisition of its initial 50% interest in May 2010, and
            subsequently, the remaining 50% interest in May 2011 of
            KinderHawk; and (vii) waived incentive distributions of $25
            million and $75 million for the three months and year ended
            December 31, 2013, respectively, as a result of KMP's acquisition
            of Copano. In addition, we as the general partner of KMP, agreed
            to waive a portion of our future incentive distributions related
            to the Copano acquisition in the amounts of $120 million in 2014,
            $120 million in 2015, $110 million in 2016, and annual amounts
            thereafter decreasing by $5 million per year from the 2016 level.
            
            Based on 28 million in 2013, and 22 million as of March 31 and
(2)         June 30, 2012, and 26 million as of September 30 and December 31,
            2012, KMP units owned by us, 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 months and year ended December 31, 2013 and received as
(3)         distributions for the three months and year ended December 31,
            2012, respectively. We did not sell any KMR shares in 2013 or
            2012. We intend periodically to sell the KMR shares we receive as
            distributions to generate cash.
            
            Based on (i) El Paso Pipelines Partners, L.P. (EPB) distributions
            of $0.65 and $2.55 per common unit declared for the three months
            and year ended December 31, 2013, respectively, and $0.61 and
            $1.74 per common unit declared for the three and nine months ended
            December 31, 2012; (ii) 216 million common units outstanding as of
(4)         April 29, 2013; (iii) 218 million and 208 million common units
            outstanding as of July 31, 2013 and 2012, respectively; (iv) 218
            million and 216 million common units outstanding as of October 31,
            2013 and 2012, respectively; and (v) 218 million common units
            estimated to be outstanding as of January 31, 2014 and 216 million
            common units outstanding as of January 31, 2013.
            
            Based on 90 million EPB units owned by us as of December 31, 2013
(5)         and 2012, multiplied by the EPB per unit distribution declared, as
            outlined in footnote (4) above.
            
            Represents corporate general and administrative expenses,
(6)         corporate sustaining capital expenditures, and other income and
            expense.
            
            2013 and 2012 Cash taxes were calculated based on the income and
(7)         expenses included in the table, deductions related to the income
            included, and use of net operating loss carryforwards of $300
            million and $200 million, respectively.
            
            Represents cash available from former El Paso Corporation (EP)
            assets that remain at KMI , including TGP, EPNG and El Paso
            midstream assets for the periods presented prior to their
(8)         drop-down to KMP, and our 20% interest in NGPL, net of general and
            administrative expenses related to KMI's EP assets. Amounts
            include our share of pre-tax earnings, plus depreciation,
            depletion and amortization, and less cash taxes and sustaining
            capital expenditures from equity investees.
            
(9)         Represents interest expense on debt assumed from the May 25, 2012
            EP acquisition.
            
            Represents interest associated with Kinder Morgan, Inc.'s (KMI)
(10)        remaining debt issued to finance the cash portion of EP
            acquisition purchase price.
            
            Excludes $310 million in after-tax expenses associated with the EP
            acquisition and EP Energy sale for the year ended December 31,
            2012. This included (i) $101 million in employee severance,
            retention and bonus costs; (ii) $55 million of accelerated EP
            stock based compensation allocated to the post-combination period
(11)        under applicable GAAP rules; (iii) $37 million in advisory fees;
            (iv) $68 million write-off associated with the EP acquisition
            (primarily due to debt repayments) or amortization of capitalized
            financing fees; (v) $51 million for legal fees and reserves, net
            of recoveries; and (vi) $19 million benefit associated with
            pension income.
            
            Includes weighted average common stock outstanding and (i) for
            2013, approximately 6 million of unvested restricted stock awards
(12)        issued to management employees that contain rights to dividends
            and (ii) for 2012, Class B shares, Class C shares and unvested
            restricted stock awards.
            


Kinder Morgan, Inc. and Subsidiaries
Preliminary Consolidated Statements of Income (1)
(Unaudited)
(In millions, except per share amounts)
                                                              

                         Three Months Ended December         Year Ended December 31,
                         31,
                         2013              2012              2013               2012
                                                                                
Revenue                  $ 3,872          $ 3,079          $ 14,070          $ 9,973  
                                                                                
Costs,
expenses and
other
Operating                  2,019             1,504             7,365              4,759
expenses
Depreciation,
depletion and              479               409               1,806              1,419
amortization
General and                132               113               613                929
administrative
Taxes, other
than income                100               79                395                286
taxes
Other expense             (18   )          9               (99    )          (13    )
                          2,712           2,114           10,080           7,380  
                                                                                
Operating                  1,160             965               3,990              2,593
income
                                                                                
Other income
(expense)
Earnings from
equity                     33                (85   )           327                153
investments
Amortization
of excess cost             (10   )           (14   )           (39    )           (23    )
of equity
investments
Interest, net              (428  )           (406  )           (1,675 )           (1,399 )
Gain on
remeasurement
of previously
held equity
interest in
Eagle Ford
Gathering to
fair value                 -                 -                 558                -
Gain on sale
of investments             -                 -                 224                -
in Express
Other, net                18              (10   )          53               19     
                                                                                
Income from
continuing
operations                 773               450               3,438              1,343
before income
taxes
                                                                                
Income tax                (67   )          26              (742   )          (139   )
expense
                                                                                
Income from
continuing                706             476             2,696            1,204  
operations
                                                                                
Income from
discontinued               -                 15                -                  160
operations,
net of tax
Loss on sale
and
remeasurement
of KMP's FTC
Natural Gas
Pipelines
disposal group
to
fair value,               (2    )          (3    )          (4     )          (937   )
net of tax
Loss from
discontinued              (2    )          12              (4     )          (777   )
operations
                                                                                
Net income                 704               488               2,692              427
                                                                                
Net income
attributable
to                        (366  )          (268  )          (1,499 )          (112   )
noncontrolling
interests
                                                                                
Net income
attributable             $ 338            $ 220            $ 1,193           $ 315    
to KMI
                                                                                
Class P Shares
Basic and
Diluted
Earnings Per
Common Share             $ 0.33            $ 0.21            $ 1.15             $ 0.56
From
Continuing
Operations (2)
Basic and
Diluted Loss
Per Common                -               -               -                (0.21  )
Share From
Discontinued
Operations
Total Basic
and Diluted              $ 0.33           $ 0.21           $ 1.15            $ 0.35   
Earnings Per
Common Share
                                                                                
Class A Shares
(2)
Basic and
Diluted
Earnings Per
Common Share                               $ 0.19                               $ 0.47
From
Continuing
Operations (2)
Basic and
Diluted Loss
Per Common                                  -                                  (0.21  )
Share From
Discontinued
Operations
Total Basic
and Diluted                                $ 0.19                              $ 0.26   
Earnings Per
Common Share
                                                                                
Basic Weighted
Average Number
of Shares
Outstanding
Class P Shares            1,035           742             1,036            461    
Class A Shares                              294                                446    
                                                                                
Diluted
Weighted
Average Number
of Shares
Outstanding
(3)
Class P Shares            1,035           1,039           1,036            908    
Class A Shares                              294                                446    
                                                                                
Declared
dividend per             $ 0.41           $ 0.37           $ 1.60            $ 1.40   
common share
                                                                                

        
Notes
            Includes the operations of EP and its consolidated subsidiaries
(1)         for the 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.
            
            The Class A shares earnings per share as compared to the Class P
            shares earnings per share has been primarily reduced by the
(2)         dividends paid to the Class B shares on February 15, May 16,
            August 15, and November 15, 2012. On December 26, 2012, all
            remaining Class A, B and C shares were converted into Class P
            shares and cancelled.
            
            The outstanding KMI warrants and convertible preferred securities
(3)         (assumed from the May 25, 2012 EP acquisition) were anti-dilutive
            during the periods presented.
            

                                                           
Kinder Morgan, Inc. and Subsidiaries
Preliminary Reconciliation of Cash Available to Pay Dividends from Income from
Continuing Operations
(Unaudited)
(In millions)
                                                                             
                        Three Months Ended                Year Ended December 31,
                        December 31,
                        2013             2012             2013               2012
Income from
continuing              $ 706            $ 476            $ 2,696            $ 1,204
operations
(1)
Income from
discontinued
operations,               -                15               -                  160
net of tax
(1) (2)
Income
attributable              -                -                -                  (37    )
to EPB (3)
Distributions
declared by
EPB for the
second
quarter and               -                -                -                  82
payable in
the third
quarter of
2012 to KMI
(3)
Depreciation,
depletion and             479              409              1,806              1,426
amortization
(1) (4)
Amortization
of excess
cost of                   10               14               39                 23
equity
investments
(1)
Earnings from
equity                    (98  )           79               (392   )           (223   )
investments
(5)
Distributions
from equity               95               91               398                381
investments
Distributions
from equity
investments               68               41               185                200
in excess of
cumulative
earnings
Difference
between
equity
investment                21               68               157                160
distributable
cash flow and
distributions
received (6)
KMP certain               (23  )           59               (559   )           92
items (7)
KMI certain               56               (2   )           55                 482
items (8)
KMI deferred
tax                       -                (92  )           -                  (57    )
adjustment
(9)
Difference
between cash              (70  )           (52  )           105                (264   )
and book
taxes
Difference
between cash
and book                  41               37               14                 23
interest
expense for
KMI
Sustaining
capital                   (148 )           (161 )           (405   )           (393   )
expenditures
(10)
KMP declared
distribution
on its
limited                   (544 )           (428 )           (2,031 )           (1,583 )
partner units
owned by the
public (11)
EPB declared
distribution
on its
limited                   (83  )           (77  )           (324   )           (214   )
partner units
owned by the
public (12)
Other (13)               (28  )          (38  )          (31    )          (51    )
                                                                             
Cash
available to            $ 482           $ 439           $ 1,713           $ 1,411  
pay dividends
                                                                                      

        
Notes
(1)         Consists of the corresponding line items in the preceding
            Preliminary Unaudited Consolidated Statements of Income.
            
(2)         2012 amounts primarily represent income from KMP's FTC Natural Gas
            Pipelines disposal group, net of tax.
            
            On May 25, 2012, we began recognizing income from our investment
(3)         in EPB, and we received in the third quarter the full distribution
            for the second quarter of 2012 as we were the holder of record as
            of July 31, 2012.
            
(4)         Year ended 2012 amount includes $7 million associated with KMP's
            FTC Natural Gas Pipelines disposal group.
            
            2013 amounts exclude a $65 million impairment of our investment in
            NGPL Holdco LLC. 2012 includes $6 million and $70 million for the
(5)         three months and year ended December 31, 2012, respectively,
            associated with KMP's FTC Natural Gas Pipelines disposal group's
            investment in Rockies Express Pipeline LLC.
            
            Consists of the difference between cash available for
(6)         distributions and the distributions received from our equity
            investments.
            
            Consists of items such as hedge ineffectiveness, legal and
            environmental reserves, gain/loss on sale, insurance proceeds from
            casualty losses, and asset acquisition and/or disposition
            expenses. Year ended 2013 includes (i) $558 million gain on
            remeasurement of previously held equity interest in Eagle Ford
(7)         Gathering to fair value; (ii) $177 million for legal reserves
            related to the rate case and other litigation and environmental
            matters on KMP's west coast Products Pipelines; and (iii) $140
            million, net of tax, gain on the sale of Express. For more
            information, see KMP’s 4th Quarter 2013 Earnings Release filed on
            Form 8-K with the SEC on January 15, 2014.
            
            2013 amounts include NGPL Holdco LLC impairment discussed above in
            footnote (5). The year ended December 31, 2012 primarily
            represents pre-tax (income) expense associated with the EP
            acquisition and EP Energy sale and includes (i) $160 million in
            employee severance, retention and bonus costs; (ii) $87 million of
(8)         accelerated EP stock based compensation allocated to the
            post-combination period under applicable GAAP rules; (iii) $37
            million in advisory fees; (iv) $108 million write-off (primarily
            due to repayments) or amortization of capitalized financing fees;
            (v) $68 million for legal fees and reserves, net of recoveries;
            and (vi) $29 million benefit associated with pension income.
            
(9)         2012 amounts represent an increase in our state effective tax rate
            as a result of the EP acquisition.
            
(10)        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.
(11)        Includes 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.
            
(12)        Declared distribution multiplied by EPB 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
(13)        distributions, non-cash purchase accounting adjustments related to
            the EP acquisition and going private transaction primarily
            associated with non-cash amortization of debt fair value
            adjustments.
            


Kinder Morgan, Inc. and Subsidiaries
Preliminary Consolidated Balance Sheets
(Unaudited)
(In millions)
                                                         
                                             December 31,         December 31,
                                             2013                 2012 (1)
ASSETS
Cash and cash equivalents - KMI              $  116               $  71
Cash and cash equivalents - KMP                 377                  529
Cash and cash equivalents - EPB                 78                   114
Other current assets                            3,257                2,960
Property, plant and equipment, net -            2,563                2,735
KMI
Property, plant and equipment, net -            27,405               22,330
KMP
Property, plant and equipment, net -            5,879                5,931
EPB
Investments                                     5,951                5,804
Goodwill - KMI                                  17,935               18,193
Goodwill - KMP                                  6,547                5,417
Goodwill - EPB                                  22                   22
Deferred charges and other assets              4,965              4,139   
TOTAL ASSETS                                 $  75,095           $  68,245  
                                                                  
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Short-term debt - KMI                        $  725               $  1,153
Short-term debt - KMP                           1,504                1,155
Short-term debt - EPB                           77                   93
Other current liabilities                       3,733                2,827
Long-term debt - KMI                            9,221                9,148
Long-term debt - KMP                            18,410               15,907
Long-term debt - EPB                            4,179                4,254
Preferred interest in general                   100                  100
partner of KMP
Debt fair value adjustments (2)                 1,977                2,591
Deferred income taxes                           4,637                4,071
Other long-term liabilities                    2,247              2,846   
Total liabilities                              46,810             44,145  
                                                                  
Shareholders' Equity
Accumulated other comprehensive loss            (24     )            (118    )
Other shareholders' equity                     13,117             13,984  
Total KMI equity                                13,093               13,866
Noncontrolling interests                       15,192             10,234  
Total shareholders' equity                     28,285             24,100  
TOTAL LIABILITIES AND SHAREHOLDERS'          $  75,095           $  68,245  
EQUITY
                                                                  
Debt, net of cash
KMI (3)                                      $  9,830             $  10,230
KMP                                             19,537               16,533
EPB                                            4,178              4,233   
Total Consolidated Debt                      $  33,545           $  30,996  
                                                                             

        
Notes
(1)         December 2012 balance sheet recast to reflect the transfer of
            assets among entities under common control.
            
            Amounts include the fair value adjustments related to interest
(2)         rate swaps, debt discounts and premiums, and purchase price
            allocation adjustments, including adjustments to record EP's debt,
            including EPB debt, at its May 25, 2012 fair value.
            
(3)         Amounts exclude the preferred interest in general partner of KMP.
            

Contact:

Kinder Morgan, Inc.
Media Relations
Larry Pierce, (713) 369-9407
larry_pierce@kindermorgan.com
or
Investor Relations
(713) 369-9490
km_ir@kindermorgan.com
www.kindermorgan.com
 
Press spacebar to pause and continue. Press esc to stop.