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Kinder Morgan Energy Partners Increases Quarterly Distribution to $1.36 Per Unit, up 5%

  Kinder Morgan Energy Partners Increases Quarterly Distribution to $1.36 Per
  Unit, up 5%

        Fourth Quarter DCF 28 Percent Higher Than Fourth Quarter 2012

Business Wire

HOUSTON -- January 15, 2014

Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today increased its quarterly
cash distribution per common unit to $1.36 ($5.44 annualized) payable on Feb.
14, 2014, to unitholders of record as of Jan. 31, 2014. This represents a 5
percent increase over the fourth quarter 2012 cash distribution per unit of
$1.29 ($5.16 annualized) and is up from $1.35 per unit ($5.40 annualized) for
the third quarter of 2013. KMP has increased the distribution 50 times since
current management took over in February 1997.

Chairman and CEO Richard D. Kinder said, “KMP had a strong fourth quarter and
a very successful year. We will distribute $5.33 per unit for the full year,
which represents a 7 percent increase over the 2012 distribution of $4.98 per
unit, and an increase of $0.05 per unit from our 2013 plan. We earned
distributable cash flow before certain items of $5.39 per unit for 2013 or
coverage in excess of our distributions of $22million. For 2013, our five
business segments produced $5.550 billion in segment earnings before DD&A and
certain items, up 27 percent from last year. Growth was led by the dropdowns
from Kinder Morgan, Inc. associated with its acquisition of El Paso
Corporation in 2012, contributions from the midstream assets KMP acquired in
the Copano Energy transaction in May of 2013, increased oil production in our
CO[2 ]segment, and good results at our Products Pipelines and Terminals
businesses. KMP invested $3.5 billion in expansions and acquisitions during
2013 (not including dropdowns and the Copano acquisition), which exceeded our
budget of $2.9 billion. We are excited about 2014 and continue to see
exceptional growth opportunities across all of our business segments. We
currently have identified approximately $13.5 billion in expansion and joint
venture investments at KMP that we are confident will come to fruition and
drive future growth.”

KMP reported fourth quarter distributable cash flow before certain items of
$635million, up 28 percent from $495 million for the comparable period in
2012. Distributable cash flow per unit before certain items was $1.44 compared
to $1.35 for the fourth quarter last year. Fourth quarter net income before
certain items was $796million compared to $669 million for the same period in
2012. Including certain items, net income was $818 million compared to $647
million for the fourth quarter last year. Certain items for the fourth quarter
totaled a net gain of $22million versus a net loss of $22 million for the
same period last year. Certain items principally reflected an insurance
reimbursement for damage at certain terminals in the Northeast following
Hurricane Sandy.

For the full year, KMP reported distributable cash flow before certain items
of $2.244billion, up 26 percent from $1.778 billion for the comparable period
in 2012. Distributable cash flow per unit before certain items was $5.39
compared to $5.07 for the same period last year. Net income before certain
items was $2.742billion compared to $2.244 billion for 2012. Including
certain items, net income was $3.317 billion compared to $1.401 billion for
the same period last year. Certain items for the full year totaled a net gain
of approximately $575million (primarily reflecting a gain in the second
quarter related to re-measurement of KMP’s original 50 percent interest in the
Eagle Ford joint venture to fair market value) versus a net loss of $843
million for the same period last year.

Overview of Business Segments

The Natural Gas Pipelines business produced fourth quarter segment earnings
before DD&A and certain items of $665 million, up 40 percent from $474 million
for the same period last year due primarily to the dropdowns from KMI
associated with the El Paso acquisition and contributions from the Copano
transaction. For the year, Natural Gas Pipelines produced segment earnings
before DD&A and certain items of $2.336 billion, up 70 percent from
$1.374billion in 2012, exceeding its published annual budget of 54 percent
growth as a result of the Copano acquisition.

“Growth in this segment compared to both the fourth quarter and full year 2012
was driven by the midstream assets we acquired from Copano in May of 2013,
including the other 50percent of Eagle Ford Gathering which we did not
already own, dropdowns from KMI (Tennessee Gas Pipeline and 50 percent of El
Paso Natural Gas were dropped down to KMP in August 2012, and KMP purchased
the remainder of EPNG in March of 2013) and strong results from TGP,” Kinder
said. “TGP benefited from continued strong demand for its services, driven by
ongoing growth in the Marcellus and Utica Shale plays and a number of
expansion projects that began service in November of 2012 and November of
2013, including the approximately $500 million Northeast Upgrade Project. EPNG
realized higher throughput in 2013 versus 2012 due to an increase in natural
gas exports to Mexico and capturing a larger percentage of the Southwest
market.”

While both the fourth quarter and 2013 earnings in this segment reflect the
impact of the November 2012 divestitures of our Rockies assets, that impact
was more than offset by the financial results produced by the assets acquired
in the El Paso and Copano transactions.

“We continue to believe that natural gas is the future play for America
because it’s domestic, clean, abundant and very reasonably priced,” Kinder
stated. “Our El Paso and Copano transactions have significantly increased our
natural gas footprint in the United States, and KMP is well positioned to play
a leading role in building and expanding infrastructure required to connect
developing natural gas supplies to markets.”

The CO[2] business produced fourth quarter segment earnings before DD&A and
certain items of $392 million, up 16 percent from $337million for the same
period in 2012. For the year, CO[2] produced segment earnings before DD&A and
certain items of $1.432 billion, up 8percent from $1.326 billion in 2012,
exceeding its published annual budget of 5 percent growth.

“Growth in this segment compared to both the fourth quarter and full year of
2012 was led by increased oil and NGL production, and higher prices,” Kinder
said. “Combined gross oil production volumes averaged over 57 thousand barrels
per day (MBbl/d) for the fourth quarter, which was led by significantly
increased production at our large SACROC Unit, and also included 1.3 MBbl/d
from the Goldsmith Unit we acquired in June. This represents more than a 7
percent increase in oil production versus the fourth quarter last year. The
Snyder Gas Plant also produced superb results and set a record for NGL
production with an average of 19.5MBbl/d for the full year. Additionally, we
set a CO[2] production record in December in southwest Colorado, averaging 1.3
billion cubic feet per day (Bcf/d), primarily due to our Doe Canyon CO[2]
source field expansion coming online ahead of schedule.” Following completion
of a $255 million expansion, Doe Canyon averaged almost 200million cubic feet
per day (MMcf/d) for the fourth quarter, substantially higher than the initial
projection of 170 MMcf/d.

Oil production at the SACROC Unit was 32.3 MBbl/d in the fourth quarter, up
almost 6percent from 30.6 MBbl/d for the same period last year, and
significantly higher than plan. SACROC volumes for the full year were also up
approximately 6 percent from 2012. Production continued to be relatively
stable at the Yates Field, which produced 20MBbl/d in the fourth quarter
versus 20.8 MBbl/d for the same period last year, and slightly above plan.
Production at the Katz Field was 3.5 MBbl/d in the fourth quarter, almost
doubling from 1.8MBbl/d for the same period last year and slightly above
plan. Fourth quarter production at Goldsmith was 1.3MBbl/d, slightly below
plan, but integration is going well. The average West Texas Intermediate (WTI)
crude oil price for the full year was $97.97 compared to the $91.68 per barrel
that was assumed when the company developed the 2013 budget.

In this segment, KMP is exposed to commodity price risk, but that risk is
partially mitigated by a long-term hedging strategy intended to generate more
stable realized prices. The realized weighted average oil price per barrel for
the year, with all hedges allocated to oil, was $92.70 versus $87.72 for 2012.
The realized weighted average NGL price per barrel for the year, allocating
none of the hedges to NGLs, was $46.43 compared to $50.95 for 2012, as NGL
prices remained low.

The Products Pipelines business produced fourth quarter segment earnings
before DD&A and certain items of $203 million, up 16 percent from $176 million
for the comparable period in 2012. For the year, Products Pipelines produced
segment earnings before DD&A and certain items of $784 million, up 12 percent
from $703 million in 2012, slightly below its published annual budget of 13
percent growth. Segment earnings would have been higher except for lower
revenues on SFPP’s intrastate pipelines in California, primarily due to the
adverse California Fourth District Court of Appeal ruling in the second
quarter which denied an income tax allowance on the company’s intrastate
pipelines in that state.

“The increase in earnings compared to the fourth quarter of 2012 was driven by
significantly higher volumes and associated revenues on the Cochin pipeline
system and higher margins and volumes in our transmix business,” Kinder said.
“For the full year, earnings increased due to higher NGL volumes on the Cochin
and Cypress pipelines, an increase in refined products volumes, higher
transmix volumes and a full year of operations on the Kinder Morgan Crude and
Condensate pipeline. Incremental earnings for this segment came from placing
the Parkway Pipeline in service in September and contributions from crude and
condensate assets obtained in the Copano transaction. Including joint ventures
and other projects, KMP’s planned investments related to Eagle Ford Shale
crude and condensate opportunities currently total approximately $1billion.”

Total refined products volumes for the fourth quarter were up over 6 percent
compared to the same period last year, including Plantation. Segment gasoline
volumes (including transported ethanol on the Central Florida Pipeline) were
up over 8 percent, reflecting a boost in Plantation volumes due to allocations
on a competing pipeline, a completed unit train project which increased
Tampa-sourced ethanol to Orlando and the completion of Parkway. Jet fuel
volumes increased almost 7 percent attributable to high commercial and
military activity on the West Coast. NGL volumes were up almost 23 percent,
primarily on Cochin, due to strong grain drying and winter heating demand. For
the full year, mainline volumes were up over 2 percent on the Pacific pipeline
system on the West Coast, the first meaningful increase since 2007.

The Products Pipelines segment handled over 10.8 million barrels of biofuels
(ethanol and biodiesel) in the fourth quarter, up 15 percent from the same
period a year ago. The increase was driven by the August 2012 acquisition of a
biofuel transload terminal in South Carolina and SFPP biodiesel blending
projects coming online this year on the West Coast. This segment continues to
make investments in assets across its operations to accommodate more biofuels.

The Terminals business produced fourth quarter segment earnings before DD&A
and certain items of $221 million, up 12 percent from $198 million for the
same period in 2012. For the year, Terminals produced segment earnings before
DD&A and certain items of $798 million, up 6 percent from $752 million in
2012, but below its published annual budget of 12 percent annual growth
primarily due to lower bulk volumes.

“Growth in this segment versus both the fourth quarter and full year of 2012
was almost all organic and was driven by higher earnings from our liquids
facilities along the Houston Ship Channel (reflecting new and restructured
contracts with higher rates and expansion projects coming online), an increase
in export coal revenue (primarily from expansions at our IMT terminal in
Louisiana), and incremental earnings from the BP Whiting and Edmonton Terminal
expansions,” Kinder explained. “While export coal tonnage was up only 2
percent compared to the fourth quarter last year and 1 percent versus full
year 2012, our earnings were up nicely in this business due to long-term
minimum tonnage commitments that we have with many of our customers.”

For the fourth quarter, Terminals handled 18.3 million barrels of ethanol, up
from 15.4million barrels for the same period last year. Combined, the
terminals and products pipelines business segments handled 28.4 million
barrels of ethanol, up 16 percent from 24.5million barrels for the fourth
quarter of 2012. KMP continues to handle approximately 30percent of the
ethanol used in the United States.

Kinder Morgan Canada produced fourth quarter segment earnings before DD&A and
certain items of $54 million versus the $71 million it reported for the same
period in 2012. For the year, Kinder Morgan Canada produced segment earnings
before DD&A and certain items of $200 million, down from $229million in 2012.
For both the fourth quarter and the full year, earnings were impacted by the
sale of the Express-Platte pipeline system, which occurred in the second
quarter of 2013, and unfavorable book taxes. Overall, however, the sale of
Express-Platte is modestly accretive at KMP.

2014 Outlook

As previously announced, KMP expects to declare cash distributions of $5.58
per unit for 2014, an approximate 5 percent increase over the $5.33 per unit
it will distribute for 2013. (KMR also expects to declare distributions of
$5.58 per share for 2014, and the distribution to KMR shareholders will be
paid in the form of additional KMR shares.) In 2014, KMP expects to:

  *Generate approximately $6.4 billion in segment earnings before DD&A
    (adding back KMP’s share of joint venture DD&A), an increase of
    approximately $750 million over $5.6 billion in 2013 (adding back KMP’s
    share of joint venture DD&A).
  *Distribute over $2.5 billion to its limited partners.
  *Invest approximately $3.6 billion in expansions (including contributions
    to joint ventures) and small acquisitions. Almost $720 million of the
    equity required for this investment program is expected to be funded by
    KMR share dividends with a substantial additional portion of the equity
    coming from at-the-market equity sales.

KMP’s expectations assume an average WTI crude oil price of approximately
$96.15 per barrel in 2014, which approximated the forward curve at the time
the budget was prepared. The cash generated by KMP’s assets is predominantly
fee-based and is not sensitive to commodity prices. In its CO[2] segment, the
company hedges the majority of its oil production, but does have exposure to
unhedged volumes, a significant portion of which are natural gas liquids. For
2014, the company expects that every $1 change in the average WTI crude oil
price per barrel will impact the CO[2 ]segment by approximately $7million, or
approximately 0.125percent of KMP’s combined business segments’ anticipated
segment earnings before DD&A.

Other News

Natural Gas Pipelines

  *On Nov. 1 TGP placed in service on schedule its Northeast Upgrade and
    Marcellus Pooling Point projects. Northeast Upgrade, an approximately
    $500million, fully subscribed project spanning portions of Pennsylvania
    and New Jersey, boosts capacity on TGP’s system by approximately
    636,000dekatherms per day and provides additional takeaway capacity from
    the Marcellus Shale area. In Pennsylvania, the approximately $54 million
    Marcellus Pooling Point Project, also fully subscribed, provides about
    240,000 dekatherms per day of additional firm Marcellus transportation
    capacity.
  *TGP completed a successful binding open season in December for
    incremental, north-to-south natural gas transportation capacity on the TGP
    system totaling 500,000 dekatherms per day, which was awarded to six
    different shippers. The awarded capacity will provide firm transportation
    service for Marcellus and Utica production from receipt points as far
    north as Mercer, Penn., for delivery to multiple delivery points on the
    Gulf Coast. TGP will invest approximately $156million in this Utica
    Backhaul project. Capacity bids were for volumes well in excess of the
    capacity offered, and TGP is exploring further capacity expansions for its
    customers.
  *The proposed Cameron LNG liquefaction facility at Hackberry, La., is now
    first in the Department of Energy queue for non-Free Trade Agreement
    export approval, and TGP continues to advance plans to transport 900,000
    dekatherms per day of natural gas to the future facility under long-term
    agreements. Following a binding open season in the spring of 2013, TGP
    awarded 300,000 dekatherms per day of capacity to a subsidiary of MMGS
    Inc. (Mitsui) for a 20-year agreement to transport natural gas earmarked
    for the liquefaction facility, which is slated to begin LNG exports in the
    second half of 2017. Earlier in 2013, TGP announced a binding, 20-year
    agreement with anchor shipper Mitsubishi Corporation to ship
    600,000dekatherms per day of natural gas for the proposed project. Future
    shipments by TGP are part of its approximately $138 million Southwest
    Louisiana Supply Project.
  *TGP continues to move forward on its approximately $83 million Rose Lake
    expansion project in northeastern Pennsylvania. The project will provide
    long-term firm transportation service for two shippers that have fully
    subscribed 230,000 dekatherms per day of firm capacity. Subject to
    regulatory approvals, a Nov. 1, 2014, in-service is anticipated.
  *Field survey work continues for TGP’s fully subscribed approximately
    $77million Connecticut expansion project. The project will provide
    72,000dekatherms per day of additional long-term capacity to two local
    distribution customers. The project includes approximately 13 miles of new
    pipeline loops along the TGP system in Connecticut, New York and
    Massachusetts, and the planned acquisition of an existing pipeline lateral
    from another operator. Pending regulatory approvals, the expansion is
    expected to be operational Nov. 1, 2016.

  *TGP signed a binding, 15-year firm transportation agreement with Seneca
    Resources Corporation to ship 158,000 dekatherms per day of natural gas to
    eastern Canadian markets on the Niagara Expansion Project. Subject to
    regulatory approvals, the approximately $26million project is expected to
    begin service Nov. 1, 2015. Seneca will be the foundation shipper for
    TGP’s Niagara Expansion Project, designed to provide transportation from
    the prolific Marcellus Shale in Pennsylvania to TGP’s interconnect with
    TransCanada Pipeline in Niagara County, N.Y., to serve growing markets for
    U.S. gas in eastern Canada.
  *KMP continues to invest capital and explore opportunities to transport
    more natural gas to Mexico. The company will invest approximately $72
    million in the proposed Sierrita Pipeline Project, which would include
    construction of a 60-mile pipeline that would extend from the EPNG
    pipeline system, near Tucson, Ariz., to the Mexican border at Sasabe,
    Ariz. The 36-inch Sierrita Pipeline will have approximately 200,000
    dekatherms per day of capacity and an affiliate of PEMEX previously
    executed a 25-year agreement for all of the capacity. KMP owns 35 percent
    of and will construct and operate the approximately $204million Sierrita
    Pipeline. Subject to regulatory approvals, the pipeline is expected to be
    in service in September 2014.
  *KMP is investing approximately $108 million for additional compression and
    pipeline system modifications to expand the Kinder Morgan Texas and
    Mier-Monterrey pipelines. The project is supported by three customers in
    Mexico that entered into long-term firm transportation contracts for more
    than 200,000 dekatherms per day of capacity, which will be phased in from
    2014 through 2016. A fourth customer has also recently contracted for
    150,000 dekatherms per day of the project’s capacity on an interim basis
    for use prior to the effective date of the contracts with the other
    customers, accelerating the timing of the expansion for a projected
    initial in-service date of Sept. 1, 2014.
  *EPNG placed its Willcox Lateral II Expansion Project in service in late
    December in southeastern Arizona, which assists an existing customer in
    Mexico to meet electric power plant fuel load requirements. The combined
    capital costs of the Willcox I and Willcox II expansions totaled
    approximately $37 million.

CO[2]

In response to the industry’s continuing robust demand for CO[2], KMP
continues to make progress on constructing expansion projects and pursuing
opportunities designed to increase production and transportation of CO[2 ]for
use in enhanced oil recovery projects in the Permian Basin of West Texas. This
could lead to over $2 billion in investments that would increase KMP’s CO[2]
sales and transport volumes by an additional 700 MMcf/d by 2017, which would
bring the company’s total system capacity to more than 2 Bcf/d of CO[2].

  *Construction is going well on KMP’s approximately $214 million Yellow
    Jacket Central Facility expansion at the McElmo Dome CO[2] source field in
    southwest Colorado. The project is on budget and on schedule and the first
    of four planned expansion projects is expected to be operational by
    November 2014. These expansions will increase CO[2] production from 1.1
    Bcf/d to 1.23 Bcf/d and maintain it at that level.
  *Work also continues on the expansion of KMP’s Wink Pipeline System, which
    transports crude from the company’s West Texas oil fields to Western
    Refining Company’s facility in El Paso, Texas. The company is in the
    process of increasing Wink’s capacity from 132,000barrels per day (bpd)
    to 145,000 bpd to [ ]meet expected higher future throughput requirements
    at Western’s refinery. KMP, in coordination with Western’s maintenance
    schedule, anticipates that the new facilities will be online in late
    February or early March of this year.

Products Pipelines

  *KMP continues to make progress on pipeline modifications for its
    approximately $310million Cochin Reversal project to move light
    condensate from Kankakee County, Ill., to existing terminal facilities
    near Fort Saskatchewan, Alberta. Construction also is underway on the 1
    million barrel storage capacity Kankakee tank farm and associated pipeline
    facilities where Cochin will interconnect with the Explorer Pipeline and
    the Enterprise TEPPCO Pipeline. The project remains on schedule for a late
    June 2014 in-service date.
  *Construction continues on KMP’s approximately $360 million petroleum
    condensate processing facility near its Galena Park terminal on the
    Houston Ship Channel. Supported by a long-term, fee-based agreement with
    BP North America for all 100,000 bpd of throughput capacity at the
    facility, the project includes building two separate units to split
    condensate into its various components and the construction of storage
    tanks for the almost 2 million barrels of product that will be split at
    the facility. The first phase of the splitter is scheduled to be
    commissioned in June 2014 and the second phase is expected to come online
    in the second quarter of 2015.
  *KMP and NOVA Chemicals Corporation announced in December a letter of
    intent to develop a new products pipeline from the Utica Shale. Under the
    agreement, Kinder Morgan Cochin will construct, own and operate a 210-mile
    pipeline from multiple fractionation facilities in Harrison County, Ohio,
    to Kinder Morgan’s Cochin Pipeline near Riga, Mich., where the company
    will then move product via Cochin east to Windsor, Ontario, Canada. The
    proposed approximately $300 million Kinder Morgan Utica To Ontario
    Pipeline Access (UTOPIA) would transport previously refined or
    fractionated NGLs, including ethane and propane. UTOPIA is expected to
    have an initial 50,000 bpd of capacity, which is expandable to more than
    75,000 bpd, and anticipates a mid-year 2017 in-service date, pending
    NOVA’s execution of a definitive agreement during the binding open season
    (which is expected in 2014) and timely receipt of necessary permitting and
    regulatory approvals.
  *KMP and Targa Resources Partners signed a letter of intent in December to
    form a joint venture to construct new NGL fractionation facilities at Mont
    Belvieu, Texas, to provide services for producers in the Utica and
    Marcellus Shale resource plays in Ohio, West Virginia and Pennsylvania.
    Those facilities will be located adjacent to Targa’s existing
    fractionation facilities at Mont Belvieu and will provide fractionation
    services for customers of the Utica Marcellus Texas Pipeline (UMTP), a
    proposed joint venture between MarkWest Utica EMG and KMP (also announced
    in the fourth quarter), of up to 150,000 bpd expandable to 400,000 bpd of
    maximum pipeline capacity over time. To allow shippers time to assess
    their Gulf Coast fractionation and pipeline needs, the binding open season
    currently under way for the proposed Y-grade UMTP has been extended until
    Feb. 28, 2014. The UMTP would involve the abandonment and conversion of
    over 1,000 miles of KMP’s existing Tennessee Gas Pipeline system,
    currently in natural gas service, and building approximately 200 miles of
    new pipeline. These projects and partnerships can provide one-stop
    shopping to meet the producers’ needs.

Due to strong interest for transportation of Eagle Ford crude and condensate
to the Houston Ship Channel, KMP has secured long-term commitments for more
than two-thirds of the 300,000bpd ofcapacity on its KMCC pipeline, which
includes the following projects currently under construction.

  *KMP expects its approximately $101 million Sweeny Lateral pipeline
    project, which will transport Eagle Ford crude and condensate from the
    company’s KMCC pipeline to Phillips 66’s Sweeny Refinery in Brazoria
    County, Texas, to be fully in service this month. The 27-mile pipeline is
    complete and is being commissioned. The two 120,000-barrel storage tanks
    and seven truck offloading racks at the company’s DeWitt County station
    are also complete and in service, and the new pumps and two 120,000-barrel
    storage tanks at the company’s Wharton County pump station will be
    completed later this month.
  *KMP has entered into an agreement with a large Eagle Ford Shale producer
    to extend the KMCC pipeline farther into the Eagle Ford Shale in South
    Texas. KMP will invest approximately $74 million to build an 18-mile
    lateral pipeline northwest from its DeWitt Station to a new facility in
    Gonzales County, where KMP will construct 300,000 barrels of storage, a
    pipeline pump station and truck offloading facilities. The lateral will
    have a capacity of 300,000 bpd and will enable Kinder Morgan to batch
    Eagle Ford crude and condensate from the new Gonzales Station via KMCC to
    its delivery points on the Houston Ship Channel and the soon to be in
    service Sweeny Lateral pipeline serving the Phillips 66 Sweeny Refinery in
    Brazoria County, Texas. Construction on the pipeline will start later this
    month and the project is expected to be completed in the first quarter of
    2015.
  *Tank and pipeline construction continues on KMP’s approximately $109
    million expansion of its KMCC pipeline to ConocoPhillips’ central delivery
    facility in Karnes County. The project, supported by a long-term contract
    with ConocoPhillips, will extend the 178-mile pipeline 31 miles west from
    the company’s DeWitt Station (west of Cuero, Texas) to ConocoPhillips’
    central delivery facility in Helena, Texas. The company expects to
    complete the project in the third quarter of 2014.
  *KMCC and Double Eagle Pipeline, a joint venture with Magellan Midstream
    Partners, entered into a long-term agreement in December with Anadarko
    Petroleum Corporation to transport Eagle Ford Shale production from
    Gardendale, Texas, 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, along with a 10-mile pipeline to connect the Double
    Eagle and KMCC pipelines 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 two 120,000-barrel storage
    tanks at its Helena Station to move crude and condensate from the Double
    Eagle Pipeline to the KMCC delivery points. By connecting the Double Eagle
    and KMCC systems, Anadarko and other Eagle Ford producers will have the
    flexibility to access both the Corpus Christi and Houston-area markets.
    KMP will invest approximately $45million in this project which is
    expected to be completed in early 2015.

Terminals

  *As a strategic, complementary extension of Kinder Morgan’s existing crude
    oil and refined products transportation business and to meet growing
    product demand and changes in sources of supply, KMP announced in December
    a definitive agreement to acquire American Petroleum Tankers (APT) and
    State Class Tankers (SCT) from affiliates of The Blackstone Group and
    Cerberus Capital Management for $962 million in cash. APT and SCT are
    engaged in the marine transportation of crude oil, condensate and refined
    products in the United States domestic trade, commonly referred to as the
    Jones Act trade. The transaction, which is subject to standard regulatory
    approvals, is expected to close in January of 2014, at which time it will
    be immediately accretive to cash available to KMP unitholders.
  *The 185-acre Battleground Oil Specialty Terminal Company (BOSTCO) project
    located on the Houston Ship Channel is continuing to progress toward
    completion. Thirty-one of the 51 storage tanks built during phase one
    construction have been placed in service and the remaining tanks will come
    online during the first half of 2014. A two-berth ship dock and 12 barge
    berths were also placed in service in October. Phase two construction also
    continues and involves building an additional 900,000 barrels of storage
    capacity. BOSTCO expects phase two to begin service in the third quarter
    of 2014. The approximately $500 million BOSTCO terminal is fully
    subscribed for a total capacity of 7.1 million barrels and is able to
    handle ultra-low sulfur diesel, residual fuels and other black oil
    terminal services. KMP owns 55percent of and operates BOSTCO.
  *KMP is preparing a 42-acre site along the Houston Ship Channel for
    construction of a new ship dock to handle ocean going vessels and 1.5
    million barrels of liquids storage tanks. The approximately $172 million
    project is supported by a long-term contract with a major ship channel
    refiner to construct the tanks and connectivity to KMP’s Galena Park
    terminal and to the refiner’s location. Construction is scheduled to begin
    in the second quarter of 2014 and the project is expected to be in service
    in the first quarter of 2016.
  *Construction continues on KMP’s investment of $106 million on the
    purchased 20acres adjacent to the company’s Pasadena terminal and nine
    new storage tanks being built with a capacity of 1.2million barrels at
    its Galena Park terminal to meet customer demand. A new barge dock is also
    being constructed that is expected to help relieve current dock congestion
    on the Houston Ship Channel. The new barge dock will provide additional
    capacity to handle up to 50 barges per month. The tanks are expected to be
    in service as completed starting in the fourth quarter of 2014 and ending
    in the first quarter of 2015. The barge dock is slated for a fourth
    quarter 2015 completion.
  *Deeprock Development, a joint venture at KMP, is proceeding on time and on
    budget to construct 1.5 million barrels of storage capacity and two
    pipelines to five Cushing, Okla., area destinations. Tallgrass Energy
    Partners, the customer, anticipates an initial start-up date of August
    this year, at which time up to 350,000 bpd of capacity is expected to be
    online. KMP owns 51 percent of the joint venture project and will
    contribute $26 million of the approximately $51 million project.

  *Construction continues at KMP’s Edmonton Terminal expansion in Alberta. By
    the end of February, nine tanks with a capacity of 3.4 million barrels
    will be in service and phase one will be complete. Construction also
    continues on phase two, which will add an incremental 1.2million barrels
    of storage capacity and is expected to be completed in late 2014. The
    approximately $438 million project is supported by long-term contracts
    with major producers and refiners.
  *KMP in December announced a joint venture with Imperial Oil to build the
    Edmonton Rail Terminal, a crude oil and loading facility, near its
    Edmonton storage terminal on land adjacent to Imperial’s Strathcona
    Refinery. Construction is underway on the Edmonton Rail Terminal, which
    will be capable of loading one to three unit trains per day totaling
    100,000bpd at startup, with the potential to expand up to 250,000 bpd.
    The new rail terminal will be connected via pipeline to the Trans Mountain
    terminal and will be capable of sourcing crude streams handled by KMP for
    delivery by rail to North American markets and refineries. The rail will
    be constructed and operated by KMP and will connect to both Canadian
    National and Canadian Pacific mainlines. The joint venture is investing
    approximately $175 million in the project and KMP will invest an
    additional approximately $100 million in pipeline connections and new
    staging tanks. The facility is expected to be in service at the end of
    2014.
  *KMP’s previously announced joint venture with Keyera Corp. to build a
    crude oil rail loading facility in Edmonton is progressing. The Alberta
    Crude Terminal will be able to accept crude oil streams handled at KMP’s
    North 40 Terminal for loading and delivery via rail to refineries anywhere
    in North America. KMP is investing approximately $33 million in this
    project. The facility, which will be operated by Keyera, will be capable
    of loading approximately 40,000 bpd of crude oil into tank cars and is
    expected to be in service in the third quarter of 2014.

Kinder Morgan Canada

  *Trans Mountain Pipeline filed a Facilities Application with the National
    Energy Board (NEB) in December requesting authorization to build and
    operate the necessary facilities for the proposed $5.4 billion pipeline
    system expansion. With this filing, the proposed project will undergo a
    comprehensive public regulatory review. For the past 18 months Kinder
    Morgan Canada has engaged extensively with landowners, Aboriginal groups,
    communities and stakeholders along the proposed expansion route, and
    marine communities and will continue to do so. The next step is for the
    NEB to establish a hearing schedule that corresponds to the federal
    government’s legislated 15-month review and decision time frame. Thirteen
    companies in the Canadian producing and oil marketing business have signed
    firm contracts bringing the total volume of committed shippers to
    approximately 708,000 bpd. Kinder Morgan Canada received approval of the
    commercial terms related to the expansion from the NEB in May of 2013. The
    proposed expansion will increase capacity on Trans Mountain from
    approximately 300,000 bpd to 890,000 bpd. If approvals are received as
    planned, the expansion is expected to be operational at the end of 2017.

Financings

  *KMP and KMR sold common units and shares valued at approximately $294
    million under their at-the-market programs during the fourth quarter,
    bringing the total to more than $1.1billion for the year.

Kinder Morgan Management, LLC

Shareholders of KMR will also receive a $1.36 dividend ($5.44 annualized)
payable on Feb. 14, 2014, to shareholders of record as of Jan. 31, 2014. The
dividend to KMR shareholders will be paid in the form of additional KMR
shares. The dividend is calculated by dividing the cash distribution to KMP
unitholders by KMR’s average closing price for the 10 trading days prior to
KMR’s ex-dividend date.

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 52,000 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 $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. 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
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 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 segment earnings before depreciation, depletion,
amortization and amortization of excess cost of equity investments, 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 relative to the unit price). 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 cash taxes paid and
sustaining capital expenditures for KMP, plus DD&A less sustaining capital
expenditures for our equity method investees, less equity earnings plus cash
distributions received for Express and Endeavor (additional equity investees).

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 certain 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 segment earnings before DD&A and certain
items in its analysis of segment performance and management of our business.
General and administrative expenses are generally not controllable by our
business segment operating managers, and therefore, are not included when we
measure business segment operating performance. We believe segment 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
the ability of our segments 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 about allocating resources to our segments and assessing the
segments’ respective 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 adjusting for
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. Segment earnings before DD&A
as presented in our GAAP financials is the measure most directly comparable to
segment earnings before DD&A and certain items. Segment earnings before DD&A
and certain items is calculated by adjusting for the certain items
attributable to a segment, which are specifically identified in the footnotes
to the accompanying tables, from segment earnings before DD&A. In addition,
segment 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, segment earnings before DD&A or any other GAAP
measure. Distributable cash flow before certain items and segment 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. Segment 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 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 Energy Partners, L.P. and Subsidiaries
Preliminary Consolidated Statements of Income
(Unaudited)
(in millions except per unit amounts)
                                                            
                      Three Months Ended               Year Ended December 31,
                      December 31,
                      2013            2012             2013         2012
                                                                    
Revenues              $  3,471       $  2,680        $ 12,530    $ 9,035  
                                                                    
Costs, expenses
and other
Operating                1,953           1,440           7,128        4,634
expenses
Depreciation,
depletion and            384             325             1,446        1,159
amortization
General and              127             123             560          547
administrative
Taxes, other than        76              60              296          239
income taxes
Other expense           (46    )       -             (129   )    (28    )
(income)
                        2,494         1,948         9,301      6,551  
Operating income         977             732             3,229        2,484
                                                                    
Other income
(expense)
Earnings from
equity                   72              88              297          295
investments
Amortization of
excess cost of           (3     )        (2    )         (10    )     (7     )
equity
investments
Interest, net            (223   )        (198  )         (855   )     (683   )
(Loss) gain on
sale of                  -               -               224          -
investments in
Express
Gain on
remeasurement of         -               -               558          -
net assets to
fair value
Other, net              14            4             42         20     
                                                                    
Income before            837             624             3,485        2,109
income taxes
                                                                    
Income taxes            (17    )       10            (164   )    (39    )
                                                                    
Income from
continuing               820             634             3,321        2,070
operations
                                                                    
Income from
discontinued             -               15              -            160
operations
Loss on
remeasurement of
discontinued            (2     )       (2    )        (4     )    (829   )
operations to
fair value
(Loss) income
from discontinued        (2     )        13              (4     )     (669   )
operations
                                                                    
Net income              818           647           3,317      1,401  
                                                                    
Net income
attributable to         (9     )       (7    )        (36    )    (18    )
Noncontrolling
Interests
                                                                    
Net income
attributable to       $  809         $  640          $ 3,281     $ 1,383  
KMP
                                                                    
                                                                    
Calculation of
Limited Partners'
interest in net
income (loss)
attributable to
KMP
Income from
continuing
operations            $  811          $  627           $ 3,285      $ 2,045
attributable to
KMP
Less:
Pre-acquisition
earnings and             3               (17   )         (8     )     (58    )
severance
allocated to
General Partner
Less: General
Partner's               (448   )       (386  )        (1,708 )    (1,410 )
remaining
interest
Limited Partners'        366             224             1,569        577
interest
Add: Limited
Partners'
interest in             (2     )       13            (4     )    (655   )
discontinued
operations
Limited Partners'
interest in net       $  364         $  237          $ 1,565     $ (78    )
income
                                                                    
Limited Partners'
net income (loss)
per unit:
Income from
continuing            $  0.83         $  0.61          $ 3.77       $ 1.64
operations
Income (loss)
from discontinued       -             0.03          (0.01  )    (1.86  )
operations
Net income (loss)     $  0.83        $  0.64         $ 3.76      $ (0.22  )
Weighted average        440           368           416        351    
units outstanding
                                                                    
Declared
distribution /        $  1.36        $  1.29         $ 5.33      $ 4.98   
unit
                                                                    
                                                                    
                      Three Months Ended               Year Ended December 31,
                      December 31,
                      2013            2012             2013         2012
Segment earnings
before DD&A and
amortization of
excess
investments
Natural Gas           $  662          $  561           $ 2,977      $ 1,562
Pipelines
CO[2]                    395             334             1,435        1,322
Products                 203             178             602          670
Pipelines
Terminals                243             144             853          709
Kinder Morgan           54            71            340        229    
Canada
                      $  1,557       $  1,288        $ 6,207     $ 4,492  


Kinder Morgan Energy Partners, L.P. and Subsidiaries
Preliminary Earnings Contribution by Business Segment
(Unaudited)
(in millions except per unit amounts)
                                                             
                     Three Months Ended December       Year Ended December 31,
                     31,
                     2013            2012              2013         2012
Segment earnings
before DD&A and
amort. of excess
investments (1)
Natural Gas          $  665          $  474            $ 2,336      $ 1,374
Pipelines (2)
CO[2]                   392             337              1,432        1,326
Products                203             176              784          703
Pipelines
Terminals               221             198              798          752
Kinder Morgan          54            71             200        229    
Canada
Total                  1,535         1,256          5,550      4,384  
                                                                    
Segment DD&A and
amortization of
excess
investments
Natural Gas          $  158          $  87             $ 555        $ 253
Pipelines (3)
CO[2]                   121             115              477          441
Products                34              31               134          121
Pipelines
Terminals               61              52               217          205
Kinder Morgan          13            14             54         56     
Canada
Total                  387           299            1,437      1,076  
                                                                    
Segment earnings
contribution
Natural Gas          $  507          $  387            $ 1,781      $ 1,121
Pipelines (1) (3)
CO[2 ](1)               271             222              955          885
Products                169             145              650          582
Pipelines (1)
Terminals (1)           160             146              581          547
Kinder Morgan           41              57               146          173
Canada (1)
General and
administrative          (127   )        (108   )         (521   )     (432   )
(1) (4)
Interest, net (1)      (225   )       (180   )        (850   )    (632   )
(5)
Net income before       796             669              2,742        2,244
certain items
Certain items
Remeasurement of
net assets to           -               (2     )         558          (829   )
fair value
Acquisition costs       (1     )        (5     )         (34    )     (8     )
(6)
Legal and
environmental           -               (2     )         (177   )     (45    )
reserves (7)
Drop down asset
groups'                 -               28               19           68
pre-acquisition
earnings (8)
Mark to market,
ineffectiveness,
and amortization        (3     )        (3     )         (13    )     (11    )
of certain hedges
(9)
Insurance
deductible,
casualty losses         24              (51    )         57           (41    )
and
reimbursements
(10)
Gain (loss) on
sale of assets,         (2     )        -                167          15
net of income tax
expense
Severance (11)          (3     )        (5     )         (11    )     (9     )
Release of
reserves related
to                      3               18               3            18
pre-acquisition
periods (12)
Other (13)             4             -              6          (1     )
Sub-total certain       22              (22    )         575          (843   )
items
Net income           $  818         $  647           $ 3,317     $ 1,401  
Less:
Pre-acquisition
earnings and            3               (17    )         (8     )     (58    )
severance
allocated to
General Partner
Less: General
Partner's
remaining               (448   )        (386   )         (1,708 )     (1,403 )
interest in net
income (14)
Less:
Noncontrolling         (9     )       (7     )        (36    )    (18    )
Interests in net
income
Limited Partners'    $  364         $  237           $ 1,565     $ (78    )
net income (loss)
                                                                    
Net income before    $  796          $  669            $ 2,742      $ 2,244
certain items
Less:
Noncontrolling         (9     )       (6     )        (31    )    (22    )
Interests before
certain items
Net income
attributable to         787             663              2,711        2,222
KMP before
certain items
Less: General
Partner's
interest in net        (448   )       (387   )        (1,703 )    (1,412 )
income before
certain items
(14)
Limited Partners'
net income before       339             276              1,008        810
certain items
Depreciation,
depletion and           407             339              1,524        1,252
amortization (15)
Book (cash) taxes       10              (9     )         44           (2     )
- net
Express &
Endeavor                (4     )        -                (5     )     3
contribution
Sustaining
capital                (117   )       (111   )        (327   )    (285   )
expenditures (16)
DCF before           $  635         $  495           $ 2,244     $ 1,778  
certain items
                                                                    
Net income / unit
before certain       $  0.77        $  0.75          $ 2.42      $ 2.31   
items
DCF / unit before    $  1.44        $  1.35          $ 5.39      $ 5.07   
certain items
Weighted average       440           368            416        351    
units outstanding
                                                                    
Notes ($ million)
(1) Excludes certain items:
4Q 2012 - Natural Gas Pipelines $102, CO2 $(3), Products Pipelines $2,
Terminals $(54), general and administrative expense $(17), interest expense
$(22)
YTD 2012 - Natural Gas Pipelines $355, CO2 $(4), Products Pipelines $(33),
Terminals $(43), general and administrative expense $(124), interest expense
$(68)
4Q 2013 - Natural Gas Pipelines $(3), CO2 $3, Terminals $22, interest $2.
YTD 2013 - Natural Gas Pipelines $641, CO2 $3, Products Pipelines $(182),
Terminals $55, Kinder Morgan Canada $140, general and administrative expense
$(49), interest $(10).
(2) Includes $15 in 4Q and $167 in YTD 2012 related to assets classified for
GAAP purposes as discontinued operations.
(3) Includes $7 in YTD 2012 of DD&A expense related to assets classified for
GAAP purposes as discontinued operations. Excludes $28 in 4Q and $97 in YTD
2012 and $19 in YTD 2013 of
DD&A expense from our drop down asset groups for periods prior to our
acquisition dates of August 1, 2012 and March 1, 2013.
(4) General and administrative expense includes income tax that is not
allocable to the segments: 4Q 2012 - $2, YTD 2012 - $9, YTD 2013 - $10.
Excludes $9 in 4Q and $110 in YTD 2012 and $9 in
YTD 2013 of G&A expense from our drop down asset groups for periods prior to
our acquisition dates of August 1, 2012 and March 1, 2013, which are included
in certain items above.
(5) Interest expense excludes interest income that is allocable to the
segments: 4Q 2012 - $4, YTD 2012 - $17, YTD 2013 - $5. Excludes $21 in 4Q and
$66 in YTD 2012 and $15 in YTD 2013 of interest expense from our drop down
asset groups for periods prior to our acquisition dates of August 1, 2012 and
March 1, 2013, which are included in certain items above.
(6) Acquisition expense items related to closed acquisitions.
(7) Legal reserve adjustments related to the rate case and other litigation
and environmental matters of west coast Products Pipelines.
(8) Earnings from our drop down asset groups for periods prior to our
acquisition dates of August 1, 2012 and March 1, 2013.
(9) Actual gain or loss will continue to be reflected in earnings before DD&A
at time of physical transaction.
(10) Insurance deductible, write-off of assets, expenses and insurance
reimbursements related to casualty losses.
(11) Drop-down asset groups severance expense allocated to the General
Partner.
(12) Operating expense and franchise and income tax adjustments related to the
drop down assets pertaining to periods prior to the acquisition.
(13) Amortization of debt fair value adjustments related to purchase
accounting, Terminals severance, certain Terminals asset removal expenses and
capitalized overhead, and payroll and income tax expense adjustments.
(14) General Partner's interest in net income reflects a reduction for the
KinderHawk acquisition GP incentive giveback of $7 in 4Q 2012, $26 in YTD
2012, and $4 in YTD 2013, and a reduction for the Copano acquisition GP
incentive giveback of $25 in 4Q and $75 in YTD 2013.
(15) Includes Kinder Morgan Energy Partner's (KMP) share of equity investees'
DD&A: 4Q 2012 - $40, YTD 2012 - $176, 4Q 2013 - $20, and YTD 2013 - $87.
(16) Includes KMP share of equity investees' sustaining capital expenditures:
4Q 2012 - $6, YTD 2012 - $19, 4Q 2013 - $1, and YTD 2013 - $3.

                                                          
Volume Highlights
(historical pro forma for acquired assets)
                                                                   
                     Three Months Ended              Year Ended December 31,
                     December 31,
                     2013          2012              2013          2012
Natural Gas
Pipelines
Transport
Volumes (Tbtu)         1,414.2       1,488.5           5,738.3       5,875.0
(1) (2)
Sales Volumes          234.4         221.9             897.3         879.1
(Tbtu) (3)
Gathering
Volumes                2,857.8       2,959.7           2,959.3       2,996.2
(Bbtu/d) (2)
(4)
                                                                   
CO[2]
Southwest
Colorado
Production -           1.3           1.2               1.2           1.2
Gross (Bcf/d)
(5)
Southwest
Colorado
Production -           0.5           0.5               0.5           0.5
Net (Bcf/d)
(5)
Sacroc Oil
Production -           32.3          30.6              30.7          29.0
Gross (MBbl/d)
(6)
Sacroc Oil
Production -           26.9          25.4              25.5          24.1
Net (MBbl/d)
(7)
Yates Oil
Production -           20.0          20.8              20.4          20.8
Gross (MBbl/d)
(6)
Yates Oil
Production -           8.9           9.2               9.0           9.3
Net (MBbl/d)
(7)
Katz Oil
Production -           3.5           1.8               2.7           1.7
Gross (MBbl/d)
(6)
Katz Oil
Production -           2.9           1.5               2.2           1.4
Net (MBbl/d)
(7)
Goldsmith Oil
Production -           1.3           -                 0.7           -
Gross (MBbl/d)
(6)
Goldsmith Oil
Production -           1.1           -                 0.6           -
Net (MBbl/d)
(7)
NGL Sales
Volumes                10.0          10.0              9.9           9.5
(MBbl/d) (8)
Realized
Weighted
Average Oil          $ 93.65       $ 85.84           $ 92.70       $ 87.72
Price per Bbl
(9) (10)
Realized
Weighted
Average NGL          $ 48.24       $ 49.38           $ 46.43       $ 50.95
Price per Bbl
(10)
                                                                   
Products
Pipelines
Pacific,
Calnev, and
CFPL (MMBbl)
Gasoline (11)          68.3          67.5              273.6         268.9
Diesel                 26.8          26.8              107.0         105.3
Jet Fuel              22.3        20.2            86.0        85.7    
Sub-Total
Refined
Product                117.4         114.5             466.6         459.9
Volumes -
excl.
Plantation
Plantation
(MMBbl) (12)
Gasoline               41.4          34.9              148.7         126.4
Diesel                 8.7           9.0               34.8          36.2
Jet Fuel              6.0         6.4             24.6        24.9    
Sub-Total
Refined
Product                56.1          50.3              208.1         187.5
Volumes -
Plantation
Parkway
(MMBbl) (12)
Gasoline               1.1           -                 1.1           -
Diesel                 0.4           -                 0.6           -
Jet Fuel              -           -               -           -       
Sub-Total
Refined
Product                1.5           -                 1.7           -
Volumes -
Parkway
Total (MMBbl)
Gasoline (11)          110.8         102.4             423.4         395.3
Diesel                 35.9          35.8              142.4         141.5
Jet Fuel              28.3        26.6            110.6       110.6   
Total Refined
Product                175.0         164.8             676.4         647.4
Volumes
NGLs (13)              10.6          8.6               37.3          31.7
Condensate            3.6         1.4             12.6        1.4     
(14)
Total Delivery
Volumes                189.2         174.8             726.3         680.5
(MMBbl)
Ethanol                10.1          9.1               38.7          33.1
(MMBbl) (15)
                                                                   
Terminals
Liquids
Leasable               68.1          60.4              68.1          60.4
Capacity
(MMBbl)
Liquids                94.5    %     92.8    %         94.5    %     92.8    %
Utilization %
Bulk Transload
Tonnage                21.8          22.6              89.9          96.9
(MMtons) (16)
Ethanol                18.3          15.4              65.0          65.3
(MMBbl)
                                                                   
Trans Mountain
(MMBbls -              23.6          26.2              101.1         106.1
mainline
throughput)
                                                                   
                                                                   
(1) Includes
Texas
Intrastates,         (8) Net to KMP.
Copano South
Texas, KMNTP,
Monterrey,
TransColorado,
MEP (100%),
KMLA, FEP
(100%), TGP,         (9) Includes all KMP crude oil properties.
and EPNG
pipeline
volumes.
(2) Volumes
for acquired         (10) Hedge gains/losses for Oil and NGLs are included
pipelines are        with Crude Oil.
included for
all periods.
(3) Includes
Texas                (11) Gasoline volumes include ethanol pipeline volumes.
Intrastates
and KMNTP.
(4) Includes
Copano
Oklahoma,
Copano South         (12) Plantation and Parkway reported at 100%.
Texas, Eagle
Ford
Gathering,
Copano
North Texas,
Altamont,
KinderHawk,
Camino Real,         (13) Includes Cochin and Cypress (100%).
Endeavor,
Bighorn,
Webb/Duval
Gatherers,
Fort Union,
EagleHawk, and       (14) Includes KMCC and Double Eagle (100%).
Red Cedar
throughput
volumes. Joint
Venture
throughput           (15) Total ethanol handled including pipeline volumes
reported at          included in gasoline volumes above.
KMP share.
(5) Includes
McElmo Dome          (16) Includes KMP's share of Joint Venture tonnage.
and Doe Canyon
sales volumes.
(6) Represents
100%
production           
from the
field.
(7) Represents
KMP's net
share of the
production
from the
field.

                                                      
KINDER MORGAN ENERGY PARTNERS, L.P. AND SUBSIDIARIES
PRELIMINARY ABBREVIATED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions)
                                                                          
                                      December 31,          December 31,
                                      2013                  2012 ^(1)
ASSETS
Cash and cash equivalents             $   377               $  529
Other current assets                      2,313                1,848
Property, plant and equipment,            27,405               22,330
net
Investments                               2,233                1,864
Goodwill, deferred charges and           10,385             8,405   
other assets
TOTAL ASSETS                          $   42,713           $  34,976  
                                                                          
LIABILITIES AND PARTNERS'
CAPITAL
                                                                          
Liabilities
Current maturities of                 $   1,504             $  1,155
long-term debt
Other current liabilities                 3,038                2,092
Long-term debt                            18,410               15,907
Debt fair value adjustments               1,214                1,698
Other                                    1,326              1,362   
Total liabilities                         25,492               22,214
                                                                          
Partners' capital
Accumulated other                         33                   168
comprehensive income
Other partners' capital                  16,768             12,327  
Total KMP partners' capital              16,801             12,495  
Noncontrolling interests                 420                267     
Total partners' capital                  17,221             12,762  
TOTAL LIABILITIES AND                 $   42,713           $  34,976  
PARTNERS' CAPITAL
                                                                          
                                                                          
Total Debt, net of cash and
cash equivalents, and
excluding
the debt fair value                   $   19,537            $  16,533
adjustments
                                                                          
Segment earnings before DD&A          $   5,637             $  4,560
and certain items
G&A                                       (521     )           (432    )
Income taxes                              80                   40
Noncontrolling interests                 (31      )          (22     )
EBITDA ^(2)(3)                        $   5,165             $  4,146
                                                                          
Debt to EBITDA                            3.8                  4.0        ^(4)
                                                                          
(1) December 2012 balance sheet recast to reflect the transfer of assets among
entities under common control.
(2) EBITDA includes add back of KMP's share of equity investees' DD&A and is
before certain items.
(3) EBITDA is last twelve months
(4) Actual December 2012 Debt to EBITDA as reported prior to the recast of
assets under common control was 3.7.

Contact:

Kinder Morgan Energy Partners, L.P.
Larry Pierce, (713) 369-9407
Media Relations
larry_pierce@kindermorgan.com
or
Investor Relations
(713) 369-9490
km_ir@kindermorgan.com
www.kindermorgan.com
 
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