Kinder Morgan Energy Partners Increases Quarterly Distribution to $0.92 per Unit



    HOUSTON, Jan. 16 /CNW/ -- Kinder Morgan Energy Partners, L.P. (NYSE:   KMP)
today increased its quarterly cash distribution per common unit to $0.92 from
$0.88.  Payable on Feb. 14, 2008, to unitholders of record as of Jan. 31,
2008, the distribution represents an 11 percent increase over the fourth
quarter 2006 cash distribution per unit of $0.83.  KMP has increased the
distribution 31 times since current management took over in February of 1997. 
In total, KMP declared cash distributions for 2007 of $3.48 per unit,
exceeding its published annual budget of $3.44, and 7 percent higher than
declared cash distributions in 2006 of $3.26 per unit.  The excess of
distributable cash flow before certain items above distributions for 2007 was
approximately $40 million.
    KMP reported record quarterly distributable cash flow before certain
items of $242 million, up 21 percent from $200 million for the fourth quarter
of 2006.  Distributable cash flow per unit before certain items was $1.00, up
15 percent from $0.87 per unit for the comparable period last year.  Fourth
quarter net income before certain items was $299.2 million compared to $245.8
million for the same period last year.  Including certain items, net income
for the fourth quarter was $293.3 million compared to $267.3 million for the
same period in 2006.  Certain items in the fourth quarter resulted in a net
loss of $5.9 million and included a gain from the sale of the North System, as
well as increases in legal and environmental reserves.
    For 2007, KMP produced distributable cash flow before certain items of
$865 million, up 16 percent from $743.1 million for the same period last year.
Distributable cash flow per unit before certain items was $3.65, up 11 percent
from $3.30 for 2006.  Net income before certain items for the year was $1
billion compared to $958.6 million for 2006.  Net income including certain
items for the full year was $590.3 million compared to $1.0 billion in 2006.
As was explained in the second and third quarter earnings releases, the net
income including certain items includes the impact of a non-cash reduction in
the carrying value of the Trans Mountain Pipeline's goodwill that was taken at
Knight Inc. (formerly Kinder Morgan, Inc. -- KMI) in the first quarter of
2007.  Following KMP's purchase of Trans Mountain in the second quarter, the
historical KMI financial results of Trans Mountain, including the impact of
the goodwill reduction, must be reflected at KMP as well.  KMP's overall
carrying value for Trans Mountain must also reflect KMI's basis and as a
result, exceeds the amount that KMP paid for the asset.
    Chairman and CEO Richard D. Kinder said, "KMP had a superb fourth quarter
and an outstanding year with all of our business segments reporting an
increase in earnings before DD&A.  Total full-year segment earnings before
DD&A increased by 14 percent compared to 2006 to an all-time high of $2.2
billion.  Results were driven by strong performances from the Natural Gas and
Products pipelines business segments, along with contributions from Trans
Mountain Pipeline, which was acquired in the second quarter of 2007.
Considering that we achieved these strong 2007 results without realizing any
significant contributions from a number of large new infrastructure projects
that we are building through our capital expansion program, I'm extremely
confident in stating that KMP is well positioned for future growth.  For
example, we invested over $2.5 billion last year in new infrastructure and
expansion projects, and REX-West -- the second major segment of the Rockies
Express Pipeline project -- began interim service Jan. 12 and is expected to
be fully operational in February.  We are very excited to begin delivering
value from projects such as this to our unitholders and shareholders.  We plan
to invest over $3 billion in additional capital expansion projects this year,
and the REX-East, Midcontinent Express and Kinder Morgan Louisiana pipeline
projects are expected to be under construction in 2008 and drive growth in
2009 and beyond."

    Overview of Business Segments

    The Products Pipelines segment produced fourth quarter segment earnings
before DD&A of $138.5 million, up 7 percent from the same period last year.
For the year, this segment generated $585.9 million in earnings before DD&A,
up 17 percent from 2006 and exceeding its published annual budget of 14
percent growth.  Results would have been even higher except for the sale of
the North System which closed Oct. 5, 2007.
    "The Products Pipelines business had an excellent year with all of the
businesses in this segment delivering higher earnings before DD&A than they
did in 2006," Kinder said.  "Growth was spearheaded by the Cochin Pipeline,
reflecting both strong performance and the remaining interest in the asset
that we acquired from BP in the first quarter of 2007.  The West Coast
terminals, Plantation Pipe Line Company and our Transmix operations also
produced significantly higher earnings before DD&A than they did in 2006."
    For the year, total refined products revenues were up 6 percent and
volumes were down 0.4 percent.  Excluding Plantation, which was impacted by a
competing pipeline that began service midyear 2006, total refined products
volumes were up 0.8 percent for the year.  Overall, gasoline volumes were down
3.2 percent (primarily due to Plantation) and diesel and jet fuel volumes were
up 3.7 and 4.7 percent, respectively.  Volumes for the year were up 1 percent
on the Pacific and 2 percent on the Central Florida pipeline systems,
respectively.  While NGL volumes in this segment were down for the year, NGL
revenues were up substantially due to KMP's increased ownership stake in
Cochin.
    The Natural Gas Pipelines business produced fourth quarter segment
earnings before DD&A of $178.5 million, up 28 percent from the same period
last year.  For the year, this segment generated $600.8 million in earnings
before DD&A, up 8 percent from 2006 and exceeding its published annual budget
of 1 percent growth.  "Our Natural Gas Pipelines business had a tremendous
year, once again led by the Texas intrastate pipelines," Kinder said.  "Growth
by the intrastates was attributable to higher sales margins and increased
transportation revenue from renewal and incremental contracts, along with
greater value from storage activities.  Additionally, the Texas intrastate and
Casper-Douglas processing activities produced strong results."
    For the year, transport volumes were up 10 percent and sales volumes were
down 5 percent versus 2006.
    The CO2 business delivered fourth quarter segment earnings before DD&A of
$144.9 million, up 26 percent from the same period last year.  For the year,
this segment produced $537.2 million, up 10 percent from 2006, but well below
its published annual budget of 24 percent growth.  "With the exception of
SACROC, which had significantly lower earnings before DD&A than budgeted, the
CO2 segment had a good year," Kinder said.  "Results were driven by oil
production at Yates, higher NGL sales volumes due to increased recoveries at
our SACROC gas processing operations and solid sales and transport volumes,
particularly in the fourth quarter."
    For the quarter, average oil production at Yates increased to 27.8
thousand barrels per day (MBbl/d), a record since KMP invested in Yates. For
the year, average production increased 4 percent from 2006 to 27 MBbl/d. At
the SACROC Unit, average oil production for the quarter fell to 25.3 MBbl/d
and decreased by 10 percent for the year to 27.6 MBbl/d.  NGL sales volumes
increased by 9 percent compared to 2006.
    The CO2 segment is an area where KMP is exposed to commodity price risk,
but that risk is mitigated by a long-term hedging strategy intended to
generate more stable realized prices.  The realized weighted average oil price
per barrel, with all hedges allocated to oil, was $37.57 for the quarter and
$36.05 for the year.  The realized weighted average NGL price per barrel,
allocating none of the hedges to NGLs, was $66.67 for the quarter and $52.91
for the year.
    The Terminals business reported fourth quarter segment earnings before
DD&A of $124.2 million, up 16 percent from the same period last year.  For the
year, this segment had $442.4 million in earnings before DD&A, up 12 percent
from 2006 and basically flat with its published annual budget.  "Our terminals
business had a solid year, with growth attributable to both acquisitions and
organic opportunities," Kinder said.  "Internal expansions contributed to
increased earnings before DD&A in the fourth quarter and are expected to boost
future throughput."
    For example, approximately 28 new tanks were completed in the fourth
quarter or will be brought online in the first quarter 2008 at terminals on
the Houston Ship Channel, in New York Harbor, in Argo, Ill., and near
Edmonton, Alberta.  This represents over 1 million barrels of new tankage
capacity that went into service in the fourth quarter and approximately 3.75
million barrels of additional new capacity that is expected to come online
this quarter.  Several acquisitions also contributed to earnings including
Vancouver Wharves in British Columbia and Marine Terminals, which has five
facilities in four states.
    The Trans Mountain Pipeline, which KMP acquired April 30, 2007, produced
fourth quarter segment earnings before DD&A of $14.2 million and contributed
$56.9 million for the year, about 6 percent higher than its published annual
budget.  Volumes were up 13 percent for the year compared to 2006 due in part
to a pump station expansion.

    Outlook

    As previously announced, KMP expects to declare cash distributions of
$4.02 per unit for 2008.  This projection includes contributions from assets
currently owned by KMP and does not include any benefits from unidentified
acquisitions.  Kinder Morgan Management, LLC (NYSE:   KMR) also expects to
declare distributions of $4.02 per share for 2008.
    "As previously noted, our capital expansion program will begin to produce
significant dividends in 2008, and we expect to grow KMP's distribution per
unit by about 16 percent compared to our 2007 results," Kinder said.  "We
project our business units will deliver approximately $2.6 billion in
distributable cash flow, which is an increase of about $500 million over their
2007 performance.  This expected robust growth will be spearheaded by
REX-West, higher hedge prices on our crude production and anticipated strong
performances from other assets."
    KMP will provide details of its 2008 financial plan at its annual
investor conference in Houston on Thursday, Jan. 24, which will be webcast
live.  As in previous years, KMP will post its budget on its web site at
http://www.kindermorgan.com to enable investors to follow the company's
progress throughout the year.  "We remain committed to transparency, and we
will continue to review and explain any variances to the budgets during our
quarterly earnings calls," Kinder said.

    
    Other News

    Products Pipelines
    --  KMP completed and placed into service the approximately $153 million
        East Line expansion in December 2007 which increased pipeline
        capacity from El Paso, Texas, to Tucson and Phoenix, Ariz. The
        expansion replaced almost 130 miles of 8-inch diameter pipeline
        between El Paso and Tucson with new state-of-the-art 16-inch diameter
        pipe, increasing capacity on the East Line to over 200,000 barrels
        per day. The company completed the first phase of its pipeline
        expansion into Arizona in 2006. With the completion of these
        projects, KMP is well positioned to meet future consumer demand for
        motor and jet fuels in one of the nation's fastest growing areas.
    --  Central Florida Pipeline recently completed a successful open season
        for offloading, storage and blending of ethanol at its Tampa and
        Orlando, Fla., terminals.  Term contracts have been negotiated with
        producers, marketers and gasoline blenders.  The company has
        undertaken an approximately $25 million project to construct new, as
        well as modify and convert, infrastructure such as storage tanks,
        truck racks and rail off-load facilities to support customers'
        ethanol blending needs.


    Natural Gas Pipelines
    --  Interim service with capacity of about 1.4 billion cubic feet (Bcf)
        per day began Jan. 12 on approximately 500 miles of Rockies
        Express-West (REX-West) from the Cheyenne Hub in Weld County, Colo.,
        to the ANR delivery point in Brown County, Kan.  The remaining 213
        miles of REX-West will continue eastward to Audrain County, Mo., and
        are expected to be in service in early February at which time
        capacity will increase to about 1.5 Bcf.  REX-West is a 713-mile, 42-
        inch diameter pipeline with deliveries available on the pipeline
        system to interconnects with Kinder Morgan Interstate Gas
        Transmission, Northern Natural Gas Company, Natural Gas Pipeline
        Company of America, ANR and Panhandle Eastern Pipeline Company.
    --  The FERC issued a draft environmental report in late November 2007
        for REX-East, the third and final segment of the 1,678-mile REX
        pipeline. Subject to receipt of regulatory approvals, it is
        anticipated that interim service on REX-East will begin as early as
        Dec. 30, 2008, and be fully operational by June 2009. REX-East is a
        638-mile pipeline segment that will extend REX eastward from Audrain
        County to Clairington, Ohio. One of the largest natural gas pipelines
        to be constructed in North America, REX is a joint venture of KMP,
        Sempra Pipelines and Storage and ConocoPhillips. When completed, the
        pipeline will have a capacity of approximately 1.8 Bcf per day.
        Binding firm commitments from creditworthy shippers have been secured
        for all of the capacity on the pipeline. KMP is overseeing
        construction of the project and will operate the pipeline.
    --  In December 2007, a promising non-binding open season was completed
        for the Northeast Express project, a proposed 375-mile extension of
        REX that would extend the pipeline's route from Clarington, and add
        capacity to receive volumes from Lebanon, Ohio, to the endpoint in
        Princeton, N.J.  Binding commitments are currently being negotiated
        with potential customers.  Subject to receipt of sufficient binding
        commitments and regulatory approvals, the pipeline extension could go
        into service in late 2010.
    --  Midcontinent Express Pipeline LLC filed an application with the FERC
        in October 2007 to request a certificate of public convenience and
        necessity that would authorize construction and operation of the
        approximately 500-mile project.  Subject to receipt of regulatory
        approvals, Midcontinent Express is expected to be in service by March
        of 2009.  The approximately $1.3 billion project will extend from
        southeast Oklahoma, across northeast Texas, northern Louisiana and
        central Mississippi, to an interconnection with the Transco Pipeline
        near Butler, Ala.  Midcontinent Express will have initial capacity of
        up to 1.4 billion cubic feet per day (Bcf/d) and has binding
        commitments of approximately 1 Bcf/d from creditworthy shippers for
        long-term transportation capacity.  The project is a 50/50 joint
        venture between KMP and Energy Transfer Partners, LLC (NYSE:   ETP).
    --  The approximately $510 million Kinder Morgan Louisiana Pipeline, a
        135-mile, 42-inch diameter line, will be constructed in 2008 and
        transport natural gas from the Cheniere Sabine Pass liquefied natural
        gas terminal that is currently being built in Louisiana to multiple
        pipelines.  All of the approximately 3.2 Bcf/d of capacity on the
        pipeline has been subscribed by creditworthy counterparties.  The
        pipeline is anticipated to be fully operational not later than
        Jan. 1, 2009, about three months sooner than initially projected
    --  The TransColorado Pipeline recently completed an approximately $48
        million expansion which was placed into service Jan. 1.  The project
        boosted capacity on the pipeline by 250,000 dekatherms per day from
        Blanco, N.M., to Meeker, Colo., all of which is subscribed under a
        long-term contract with ConocoPhillips.


    CO2
    --  KMP's new Doe Canyon Deep Unit is expected to begin commercial
        production this week and will gradually ramp up production to deliver
        up to 100 million cubic feet per day of CO2 from this new source
        field in Dolores County, Colo. The approximately $87 million project
        includes six new CO2 production wells and construction of a new
        pipeline that will connect the existing Cortez Pipeline to Doe
        Canyon.


    Terminals
    --  KMP plans to invest approximately $56 million to construct a
        petroleum coke terminal at the BP refinery in Whiting, Ind. KMP has
        entered into a long-term contract to build and operate the facility
        that will handle approximately 2.2 million tons of petcoke per year
        from a coker unit BP plans to construct to process heavy crude from
        Canada. The facility is expected to be in service midyear 2011.


    Miscellaneous
    --  KMP raised approximately $343 million in net proceeds in late
        November through a public offering of approximately 7.13 million
        common units, including the exercise by the underwriters of an option
        to purchase an additional 930,000 units at the offer price. Kinder
        Morgan Management, LLC
    

    Shareholders of Kinder Morgan Management, LLC (NYSE:   KMR) will also
receive a $0.92 distribution ($3.68 annualized), payable on Feb. 14, 2008, to
shareholders of record as of  Jan. 31, 2008.  The distribution to KMR
shareholders will be paid in the form of additional KMR shares.  The
distribution 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 in North America.  KMP owns an
interest in or operates more than 24,000 miles of pipelines and 150 terminals.
Its pipelines transport natural gas, gasoline, crude oil, CO2 and other
products, and its terminals store petroleum products and chemicals and handle
bulk materials like coal and petroleum coke.  KMP is also the leading provider
of CO2 for enhanced oil recovery projects in North America.  One of the
largest publicly traded pipeline limited partnerships in America, KMP has an
enterprise value of approximately $20 billion.  The general partner of KMP is
owned by Knight Inc. (formerly Kinder Morgan, Inc.), a private company.
    Please join KMP at 4:30 p.m. Eastern Time on Wednesday, Jan. 16, at
http://www.kindermorgan.com for a LIVE webcast conference call on the
company's 2007 and fourth quarter earnings.
    The non-generally accepted accounting principles financial measures of
distributable cash flow, distributable cash flow per unit, and earnings before
DD&A are presented in this news release.  For KMP overall, we define
distributable cash flow to be limited partners' pretax income before DD&A less
cash taxes paid and sustaining capital expenditures for KMP, plus DD&A less
sustaining capital expenditures for Rockies Express, our equity method
investee.  For our segments we define distributable cash flow as segment net
income (which is before corporate costs of G&A and interest) plus DD&A less
sustaining capital expenditures.  The components of the difference between
overall KMP distributable cash flow and segment distributable cash flow are
cash versus book taxes, DD&A and sustaining capital expenditures on Rockies
Express, G&A, interest, minority interest and the general partner's interest.
Distributable cash flow per unit is overall KMP distributable cash flow
divided by average outstanding units.  We define segment earnings before DD&A
as segment earnings plus DD&A and amortization of excess cost of equity
investments.  The amounts included in the calculation of these measures are
computed in accordance with generally accepted accounting principles (GAAP),
with the exception of certain items which are clearly identified in the
attached charts and "sustaining capital expenditures," which is not a defined
term under GAAP.  Consistent with the partnership agreement of Kinder Morgan
Energy Partners, L.P., sustaining or maintenance capital expenditures are
defined as capital expenditures (as defined by GAAP) which do not increase the
capacity of an asset.  We routinely calculate and communicate these measures
to investors.  We believe that continuing to provide this information results
in consistency in our financial reporting.  In addition, we believe that these
measures are useful to investors because they enhance the investors' overall
understanding of our current financial performance and our prospects for
future performance.  Specifically, we believe that these measures provide
investors an enhanced perspective on the operating performance of our assets
and the cash that our businesses are generating.
    This news release includes forward-looking statements. Although Kinder
Morgan believes that its expectations 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 are enumerated in Kinder Morgan's Forms 10-K
and 10-Q as filed with the Securities and Exchange Commission.



    
              Kinder Morgan Energy Partners, L.P. and Subsidiaries
                  Preliminary Consolidated Statement of Income
                                   (Unaudited)
                      (in millions except per unit amounts)
    

    
                                        Three Mos. Ended   Twelve Mos. Ended
                                            Dec. 31             Dec. 31
                                          2007     2006      2007      2006
    

    Revenues                             2,448.8  2,122.5  $9,217.7  $9,048.7

    
    Costs and Expenses
      Operating expenses                 1,955.2  1,594.8   7,028.7   6,991.6
      Depreciation, depletion and
       amortization                        138.2    119.4     540.0     423.9
      General and administrative            56.0     43.3     321.9     238.4
      Taxes, other than income taxes        41.8     31.7     153.8     134.4
      Other expense (income)                 0.4    (15.2)    365.6    (31.2)
                                         2,191.6  1,774.0   8,410.0   7,757.1
    Operating Income                       257.2    348.5     807.7   1,291.6
    

    
    Other Income/(Expense)
      Earnings from equity investments      18.3     18.5      69.7      74.0
      Amortization of excess cost of
       equity investments                   (1.5)    (1.4)     (5.8)    (5.6)
      Interest, net                       (101.1)   (86.5)   (391.4)  (337.8)
      Other, net                             4.8     (1.1)     14.2      12.0
      Minority interest                     (2.6)    (7.3)     (7.0)   (15.4)
    

    
    Income from continuing operations
     before income taxes                   175.1    270.7     487.4   1,018.8
    

    Income tax expense                     (34.6)    (8.9)    (71.0)   (29.0)

    Income from continuing operations      140.5    261.8     416.4     989.8

    Income from discontinued operations    152.8      5.5     173.9      14.3

    Net Income                            $293.3   $267.3    $590.3  $1,004.1

    
    Calculation of Limited Partners'
     interest in Net Income:
      Income from Continuing Operations   $140.5   $261.8    $416.4    $989.8
      Less:  General Partner's
       interest                           (170.0)  (119.4)   (609.9)  (513.2)
      Limited Partners' interest           (29.5)   142.4    (193.5)    476.6
      Add:  Limited Partner's interest
       in Discontinued Operations          151.3      5.4     172.2      14.2
      Limited Partners' interest in Net
       Income                             $121.8   $147.8    $(21.3)   $490.8
    

    
    Diluted Limited Partners' Net
     Income per Unit:
      Income from Continuing Operations   $(0.12)   $0.62    $(0.82)    $2.12
      Income from Discontinued Operations  $0.62    $0.02     $0.73     $0.06
      Net Income                           $0.50    $0.64    $(0.09)    $2.18
      Weighted Average Units
       Outstanding                         242.3    230.2     236.9     224.9
    

    Declared distribution                $0.92    $0.83     $3.48     $3.26



    
               Kinder Morgan Energy Partners, L.P. and Subsidiaries
              Preliminary Earnings Contribution by Business Segment
                                   (Unaudited)
                      (in millions except per unit amounts)
    

    
                                   Three Mos. Ended        Twelve Mos. Ended
                                        Dec. 31                Dec. 31
                                     2007     2006         2007        2006
    Segment Earnings Before DD&A
     and Amort. of Excess
     Investments:
      Products Pipelines            $138.5    $129.2      $585.9      $502.0
      Natural Gas Pipelines          178.5     139.7       600.8       554.9
      CO2                            144.9     115.3       537.2       490.0
      Terminals                      124.2     106.8       442.4       396.8
      Trans Mountain                  14.2       -          56.9         -
        Total                       $600.3    $491.0    $2,223.2    $1,943.7
    

    
    Segment DD&A and Amort. of
     Excess Investments:
      Products Pipelines             $22.3     $22.3       $92.6       $86.3
      Natural Gas Pipelines           16.4      17.6        65.2        65.7
      CO2                             69.5      59.3       284.2       192.9
      Terminals                       25.4      19.3        89.3        74.6
      Trans Mountain                   6.1       -          15.2          -
        Total                       $139.7    $118.5      $546.5      $419.5
    

    
    Segment Earnings Contribution:
      Products Pipelines            $116.2    $106.9      $493.3      $415.7
      Natural Gas Pipelines          162.1     122.1       535.6       489.2
      CO2                             75.4      56.0       253.0       297.1
      Terminals                       98.8      87.5       353.1       322.2
      Trans Mountain                   8.1       -          41.7          -
      General and Administrative     (57.1)    (36.1)     (245.5)     (217.6)
      Interest, net                 (101.6)    (86.6)     (392.2)     (336.1)
      Minority Interest               (2.7)     (4.0)      (10.9)      (11.9)
      Certain Items (net of minority
       interest):
        Trans Mountain Before
         Dropdown                     (1.3)     12.7        13.4        32.0
        Trans Mountain Goodwill
         Impairment                     -        -        (373.3)        -
        Gain on Sale(A)              151.3       -         151.3        15.1
        Environmental Reserves       (15.3)      -         (17.5)      (17.9)
        Loss on Debt Retirement        -         -          (1.0)         -
        Allocated non-cash long-term
         compensation                 (1.4)      -         (26.0)         -
        Legal Reserves and
         Settlements                (138.7)      -        (181.5)       (0.5)
        Hurricanes                     -         8.8         1.3         8.8
        Other(B)                      (0.5)      -          (4.5)        8.0
          Sub-total Certain Items     (5.9)     21.5      (437.8)       45.5
      Net income                    $293.3    $267.3      $590.3    $1,004.1
        Less:  General Partner's
         Interest in Net Income     (171.5)   (119.5)     (611.6)     (513.3)
        Limited Partners' Net
         Income                     $121.8    $147.8      $(21.3)     $490.8
    

    
      Net income before certain
       items                        $299.2    $245.8    $1,028.1      $958.6
        Less:  General Partner's
         Interest in Net Income
         before certain items       (171.6)   (119.3)     (616.0)     (512.8)
        Limited Partners' Net
         Income before Certain
          Items                     $127.6    $126.5      $412.1      $445.8
         Depreciation, depletion
          and amortization(C)        142.1     118.5       554.8       419.5
         Book/(Cash) Taxes - Net      30.0       4.3        50.7         3.3
         Sustaining capital
          expenditures(D)            (57.7)    (49.3)     (152.6)     (125.5)
      DCF before certain items      $242.0    $200.0      $865.0      $743.1
    

    
      Net income/unit before
       certain items                 $0.53     $0.55       $1.74       $1.98
      DCF/unit before certain
       items                         $1.00     $0.87       $3.65       $3.30
      Weighted Average Units
       Outstanding                   242.3     230.2       236.9       224.9
    

    
    (A) 2006 gain on sale of Douglas Gathering System, 2007 gain on sale of
        North System
    (B) 2006 primarily includes contract settlements and the release of a
        reserve related to a natural gas pipeline contract obligation
        2007 includes insurance cancellation charge, acquisition expenses,
        and currency loss on note payable
    (C) Includes Kinder Morgan's share of Rockies Express DD&A of $2.4 & $8.4
        respectively for 4th quarter and full year 2007
    (D) Excludes Trans Mountain prior to the April 30 acquisition
    



    
                               Volume Highlights
                  (historical pro forma for acquired assets)
    

    
                                         Three Mos. Ended  Twelve Mos. Ended
                                             Dec. 31          Dec. 31
                                           2007    2006     2007     2006
    Products Pipelines
      Gasoline                             103.5   109.8    435.5    449.8
      Diesel                                41.8    40.2    164.1    158.2
      Jet Fuel                              31.1    30.1    125.1    119.5
      Total Refined Product Volumes(MMBbl) 176.4   180.1    724.7    727.5
      NGL's                                  7.5     8.4     30.4     34.0
      Total Delivery Volumes (MMBbl)(A)    183.9   188.5    755.1    761.5
    

    
    Natural Gas Pipelines(B)
      Transport Volumes (Bcf)              402.1   373.5  1,577.3  1,440.9
      Sales Volumes (Bcf)                  224.5   219.3    865.5    909.3
    

    
    CO2
      Delivery Volumes (Bcf)(C)            164.7   165.8    637.3    669.2
      Sacroc Oil Production - Gross
       (MBbl/d)(D)                          25.3    30.8     27.6     30.8
      Sacroc Oil Production - Net
       (MBbl/d)(E)                          21.1    25.6     23.0     25.7
      Yates Oil Production Gross -
       (MBbl/d)(D)                          27.8    26.7     27.0     26.1
      Yates Oil Production - Net
       (MBbl/d)(E)                          12.3    11.9     12.0     11.6
      NGL Sales Volumes (MBbl/d)(F)          9.0     8.7      9.6      8.9
      Realized Weighted Average Oil Price
       per Bbl(G)(H)                      $37.57  $31.41   $36.05   $31.42
      Realized Weighted Average NGL
       Price per Bbl(H)                   $66.67  $41.10   $52.91   $43.90
    

    
    Terminals
      Liquids Leaseable Capacity(MMBbl)     47.5    43.5     47.5     43.5
      Liquids Utilization %                 95.9%   96.3%    95.9%    96.3%
      Bulk Transload Tonnage (MMtons)       23.9    25.4     87.1     95.1
    

    Trans Mountain (MMBbl)                  24.2    20.7     94.4     83.7

    
    (A) Includes Pacific, Calnev, Plantation, Central Florida, Cochin and
        Cypress
    (B) Includes KMIGT, Texas Intrastates, KMNTP, Monterrey, Trailblazer and
        TransColorado
    (C) Includes Cortez, Central Basin, CRC, CLPL and PCPL pipeline volumes
    (D) Represents 100% production from the field
    (E) Represents Kinder Morgan's net share of the production from the
        field
    (F) Net to Kinder Morgan
    (G) Includes all Kinder Morgan crude oil properties
    
    (H) Hedge gains/losses for Oil and NGLs are included with Crude Oil
KINDER MORGAN ENERGY PARTNERS, L.P. AND SUBSIDIARIES
    
               PRELIMINARY ABBREVIATED CONSOLIDATED BALANCE SHEET
                                   (Unaudited)
                                   (Millions)
    

    
                                                        Dec. 31      Dec. 31,
                                                         2007          2006
    ASSETS
    

    
    Cash and cash equivalents                              $59             $7
    Other current assets                                 1,151          1,030
    Property, Plant and Equipment, net                  11,591         10,106
    Investments                                            659            426
    Deferred charges and other assets                    1,713          1,973
    TOTAL ASSETS                                       $15,173        $13,542
    

    LIABILITIES AND PARTNERS' CAPITAL

    
    Notes payable and current maturities of
     long-term debt                                       $610         $1,359
    Other current liabilities                            1,963          1,778
    Long-term debt                                       6,456          4,384
    Value of interest rate swaps                           144             43
    Other                                                1,507            970
    Minority interest                                       54             60
    Partners' Capital
      Accumulated Other Comprehensive Loss              (1,273)         (866)
      Other Partners' Capital                            5,712          5,814
        Total Partners' Capital                          4,439          4,948
    TOTAL LIABILITIES AND PARTNERS' CAPITAL             15,173        $13,542
    


    
    Total Debt, net of cash and cash equivalents,
     and excluding the value of interest rate swaps     $7,007         $5,736
    

    Total Capitalization (Excl. Accum. OCI)            $12,773        $11,610

    Debt to Total Capitalization                          54.9%         49.4%

    
    Total Debt, net of cash and cash
     equivalents, and excluding the value of
     interest rate swaps                                $7,007         $5,736
    

    
    Segment Earnings before DD&A and certain items      $2,223         $1,944
    G&A                                                   (246)         (218)
    Income Taxes                                            67             19
    EBITDA before certain items                         $2,044         $1,745
    

    Debt to EBITDA                                         3.4            3.3




For further information:

For further information: Larry Pierce, Media Relations, +1-713-369-9407,
 or Mindy Mills, Investor Relations, +1-713-369-9490, both of Kinder Morgan 
Energy Partners, L.P. Web Site: http://www.kindermorgan.com

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Kinder Morgan Energy Partners, L.P.

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