KMP Increases Quarterly Distribution to $0.88 Per Unit



    
    Expects to exceed annual budget of $3.44 in cash distributions for 2007
    

    HOUSTON, Oct. 17 /CNW/ -- Kinder Morgan Energy Partners, L.P. (NYSE:   KMP)
today announced an increase in its quarterly cash distribution per common unit
to $0.88 ($3.52 annualized) from $0.85 per unit ($3.40 annualized). Payable on
Nov. 14, 2007, to unitholders of record as of Oct. 31, 2007, the distribution
represents a 9 percent increase over the third quarter 2006 cash distribution
per unit of $0.81 ($3.24 annualized). KMP has increased the distribution 30
times since current management took over in February of 1997.
    KMP reported record quarterly distributable cash flow before certain
items of $229.7 million, up 26 percent from $182.6 million for the third
quarter of 2006. Distributable cash flow before certain items was $0.96 per
unit, up 19 percent from $0.81 per unit for the comparable period last year.
Third quarter net income before certain items was $258.9 million compared to
$223.8 million for the same period last year. Including certain items, net
income for the third quarter was $241.8 million compared to $229.5 million for
the same period in 2006. Certain items in the third quarter were primarily
attributable to legal settlements.
    For the first nine months of 2007, KMP produced distributable cash flow
before certain items of $623 million, up 15 percent from $544.1 million for
the same period last year. Net income before certain items for the first three
quarters was $728.9 million compared to $712.8 million for the same period in
2006. Net income including certain items for the first nine months of the year
was $325 million compared to $736.8 million for the first nine months last
year. The net income including certain items for the first three quarters of
2007 includes the impact of a non-cash reduction in the carrying value of the
Trans Mountain Pipeline's goodwill that was taken at 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 third quarter,
and we now expect to exceed our budgeted $3.44 in cash distributions per unit
for 2007. For the quarter, total segment earnings before DD&A increased by 17
percent to over $566.7 million versus the same period last year. The 19
percent increase in DCF per unit for the quarter and the 9 percent increase in
DCF per unit year to date are even before we realize any significant benefits
from our large expansion projects. All of our business segments reported an
increase in earnings before DD&A compared to the third quarter of 2006. Third
quarter results were driven by strong performance from the Products Pipelines
and Natural Gas Pipelines business segments, along with contributions from
Trans Mountain Pipeline, which was acquired in the second quarter of this
year. For the first three quarters of 2007, total segment earnings before DD&A
were up 12 percent to $1.6 billion. We are well on our way to generating north
of $2.2 billion in segment earnings before DD&A in 2007."
    "We also continued to make significant progress in the third quarter on
new projects and expansions, which are expected to result in substantial
future growth at KMP," Kinder said. "Including our share of joint venture
projects like Rockies Express, we plan to invest approximately $3 billion in
expansion projects this year alone."

    
    Overview of Business Segments
    
    The Products Pipelines segment generated third quarter earnings before
DD&A of $155.3 million, up 33 percent from $116.9 million for the comparable
period a year ago. This segment was well above its plan for the quarter and is
on track to exceed its published annual budget. "All of the assets in the
Products Pipelines segment reported higher earnings before DD&A than in the
third quarter of 2006," Kinder said. "The first quarter 2007 acquisition of
the remaining interest in Cochin drove some of the improvement. Plantation,
Pacific, CALNEV and the West Coast Terminals delivered nice increases compared
to the same period last year. Additionally, our Transmix business outperformed
its plan for the quarter as our Greensboro, N.C., processing facility
continued to handle higher than budgeted volumes."
    Total refined products revenues increased by 3.8 percent over the third
quarter of 2006, while volumes declined by 0.8 percent. Overall, gasoline
volumes were down, while diesel and jet fuel volumes were up. Excluding
Plantation Pipe Line Company (which continues to be impacted by a competing
pipeline that began service midyear 2006), total refined products volumes
increased by 0.6 percent for the quarter and by 2 percent for the first nine
months of the year. Volumes on the CALNEV and Central Florida pipelines were
up 1.2 and 1.8 percent, respectively, for the quarter compared to the same
period last year.
    The Natural Gas Pipelines segment produced third quarter earnings before
DD&A of $141.9 million. Results were about 1 percent above a strong third
quarter last year, well above its plan for the quarter and on track to exceed
its published annual budget. "Growth for the quarter was driven by another
outstanding performance from the Texas intrastate pipelines, which generated
more than half of this segment's earnings before DD&A," Kinder said. "The
intrastates' earnings before DD&A were primarily due to higher sales margins
on renewal and incremental contracts, increased transportation revenue from
higher volumes and rates, and greater value from storage activities.
Additionally, the Texas Intrastate and Casper-Douglas processing activities
produced strong results for the quarter."
    Transport volumes for the entire segment increased by almost 5 percent
compared to the third quarter last year, while sales volumes were down about 8
percent.
    The CO2 segment produced third quarter earnings before DD&A of $138
million, up 9 percent from $127.1 million for the same period a year ago.
However, as has been previously reported, this segment is expected to fall
substantially short of its published annual budget due to continued below
budget oil production at the SACROC Unit. "Highlights for the quarter compared
to the same period last year included an increase in oil production at the
Yates Field and higher NGL sales volumes due to increased recoveries at our
SACROC gas processing operations," Kinder said.
    Average oil production for the third quarter was 27.1 thousand barrels
per day (MBbl/d) at Yates, up 3 percent from the third quarter of 2006, and
27.3 MBbl/d at SACROC, a decline of 10 percent versus the third quarter of
2006. NGL sales volumes were up 18 percent.
    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 $36.77 for the quarter, and
the realized weighted average NGL price per barrel, allocating none of the
hedges to NGLs, was $53.68.
    The Terminals segment reported third quarter earnings before DD&A of
$109.4 million, up 11 percent from $98.4 million for the same period a year
ago. This segment was slightly below its plan for the quarter and should
finish the year at or slightly below its published annual budget. Growth for
the quarter was attributable to both acquisitions and organic opportunities.
    "Internal growth was driven by new tank capacity at the Galena Park
liquids terminal on the Houston Ship Channel, increased petcoke throughput at
the Port of Houston facility, strong ethanol volumes at the Argo terminal in
Illinois and improved performance from the Harvey facility in the lower river
region," Kinder said.
    Among the acquisitions made since the third quarter last year that
contributed to this quarter's results are Devco (which owns a proprietary
technology that transforms molten sulfur into solid pellets that are
environmentally friendly and easier to transport), Vancouver Wharves (a bulk
marine terminal in the Port of Vancouver, British Columbia, which includes
significant rail infrastructure along with bulk and liquids storage facilities
and material handling systems) and Marine Terminals (five facilities in four
states that primarily handle scrap, alloys and finished steel products).
    The Trans Mountain Pipeline contributed to KMP's third quarter by
delivering earnings before DD&A of $22.1 million and this segment remains on
track to meet its annual budget target. Throughput increased 16 percent
compared to the third quarter of 2006, in part due to the pump station
expansion that came online earlier this year. Acquired April 30, 2007, Trans
Mountain transports crude oil and refined products from Edmonton, Alberta, to
marketing terminals and refineries in British Columbia and Washington state.

    
    Outlook
    KMP expects to exceed its budgeted $3.44 in cash distributions per unit
    for 2007.
    

    
    Other News
    Products Pipelines
    --  KMP remains on schedule to bring the EPX products pipeline project
        online by early December of this year. This approximately $150
        million project is an additional expansion of the East Line from El
        Paso, Texas, to Tucson, Ariz., and includes replacing existing pipe
        with larger diameter pipe and making related pump station and
        facility improvements. The expansion will boost capacity to over
        200,000 barrels per day (bpd) on the pipelines, which transport
        gasoline, jet fuel and diesel.
    

    
    --  KMP is continuing the development of the approximately $400 million
        expansion of its CALNEV pipeline system into Las Vegas, Nev.,
        following approval from the FERC in July of the project's proposed
        rate structure. The expansion involves the construction of a new 16-
        inch diameter pipeline, which will parallel existing utility
        corridors to minimize environmental impacts, from Colton, Calif., to
        Las Vegas. Capacity for refined petroleum products on CALNEV would
        increase to approximately 200,000 bpd upon completion of the new
        pipeline and could be increased to over 300,000 bpd with the addition
        of pump stations. This expansion is expected to be complete in 2010.
    

    
    --  KMP completed its sale of the North System to ONEOK Partners, L.P.
        Oct. 5, 2007, for approximately $300 million in cash proceeds, which
        will be used to pay down debt and reduce equity offerings.
    


    
    Natural Gas Pipelines
    --  Construction activities are in full swing on Rockies Express
        (REX)-West, the second segment of the REX project which will consist
        of 713 miles of 42-inch diameter pipeline from Weld County, Colo., to
        Audrain County, Mo. REX-West is on schedule and expected to be in
        service by Jan. 1, 2008. Rockies Express Pipeline LLC is a
        $4.4 billion joint venture of KMP, Sempra Pipelines and Storage, a
        unit of Sempra Energy (NYSE:   SRE), and ConocoPhillips (NYSE:   COP).
        KMP is overseeing construction of the 1,679-mile project and will
        operate the pipeline.
    

    
    --  An application was filed with the FERC last spring requesting a
        certificate of public convenience and necessity to authorize
        construction and operation of REX-East. Subject to receipt of
        regulatory approvals, this 638-mile segment will run from Audrain
        County, Mo., to Clarington, Ohio, with initial service projected to
        begin as early as Dec. 30, 2008, and full operations anticipated by
        June 2009.
    

    
    --  Midcontinent Express Pipeline LLC this month filed an application
        with the FERC requesting a certificate of public convenience and
        necessity to authorize construction and operation of the
        approximately 500-mile transmission pipeline. Subject to receipt of
        regulatory approvals, construction on the pipeline is expected to
        commence in August 2008 and be in service by the first quarter of
        2009. The approximately $1.3 billion project will extend from
        Oklahoma to Alabama. 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 credit worthy shippers for
        long-term transportation capacity. Midcontinent Express is a joint
        venture of KMP and Energy Transfer Partners (NYSE:   ETP).
    

    
    --  The approximately $517 million Kinder Morgan Louisiana Pipeline, a
        135-mile, 42-inch diameter pipeline 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 now anticipated to be fully operational not later than
        Jan. 1, 2009, about three months sooner than initially expected.
    

    
    --  KMP will invest approximately $23 million to expand its Kinder Morgan
        Interstate Gas Transmission pipeline to serve five plants (four of
        which produce ethanol) near Grand Island, Neb. The project is fully
        subscribed with long-term customer contracts. Subject to receipt of
        regulatory approvals, the expansion is expected to be fully
        operational by the fall of 2008. In addition to this project, KMIGT
        has connected 17 new ethanol plants to the pipeline since 2000, 11 of
        which are located in Nebraska.
    

    
    Terminals
    --  In late September, KMP purchased the assets of Marine Terminals, Inc.
        for approximately $100 million. With two facilities in Blytheville,
        Ark., and individual terminals in Decatur, Ala., Hertford, N.C., and
        Berkley, S.C., Marine Terminals handled approximately 13.4 million
        tons of scrap, alloys and finished steel products in 2006. In
        conjunction with the acquisition, KMP entered into long-term
        contracts for the terminals to continue to provide handling,
        processing, harboring, warehousing and other value added services to
        Nucor Corporation, one of the largest steel and steel products
        companies in the world.
    


    
    Trans Mountain
    --  Kinder Morgan Canada began construction in August on the
        approximately C$443 million Anchor Loop project, the second phase of
        the Trans Mountain pipeline system expansion that will increase
        capacity on Trans Mountain from about 260,000 to 300,000 bpd. The
        project is expected to be fully operational not later than November
        2008. Earlier this year Kinder Morgan Canada commissioned 10 new pump
        stations which boosted capacity on Trans Mountain from 225,000 to
        approximately 260,000 bpd. The pipeline has been operating at
        capacity since then.

    Kinder Morgan Management, LLC
    
    Shareholders of Kinder Morgan Management, LLC (NYSE:   KMR) will also
receive an $0.88 distribution ($3.52 annualized), payable on Nov. 14, 2007, to
shareholders of record as of Oct. 31, 2007. 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 known as Kinder Morgan, Inc.), a private
company.
    Please join KMP at 4:30 p.m. Eastern Time on Wednesday, October 17, at
http://www.kindermorgan.com for a LIVE webcast conference call about the
company's third quarter earnings.
    The non-generally accepted accounting principles financial measures of
segment earnings before depletion, depreciation and amortization (DD&A), and
distributable cash flow or distributable cash flow per unit, are presented in
this earnings release. We define segment earnings before DD&A as segment
earnings plus DD&A and amortization of excess cost of equity investments. We
define distributable cash flow to be 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. The
amounts included in the calculation of this measure are computed in accordance
with generally accepted accounting principles (GAAP), with the exception of
"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. Reconciliations of segment earnings before DD&A to
segment earnings, and distributable cash per unit to net income per unit are
provided in the earnings release. Segment earnings before DD&A should be
considered in conjunction with segment earnings, as defined by GAAP, and
distributable cash per unit should be considered in conjunction with earnings
per unit as defined by GAAP.
    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     Nine Mos. Ended
                                             Sept. 30            Sept. 30
                                           2007      2006      2007      2006
    

    Revenues                           $2,230.8  $2,296.8  $6,768.9  $6,926.2

    
    Costs and Expenses
      Operating expenses                1,638.8   1,781.0   5,073.5   5,396.8
      Depreciation, depletion and
       amortization                       138.0     109.1     401.8     304.5
      General and administrative           78.0      63.5     237.7     195.1
      Taxes, other than income taxes       38.9      31.8     112.0     102.7
      Other expense (income)               (2.5)        -     365.2    (16.0)
                                        1,891.2   1,985.4   6,190.2   5,983.1
    Operating Income                      339.6     311.4     578.7     943.1
    

    
    Other Income/(Expense)
      Earnings from equity investments     15.8      13.6      51.4      55.5
      Amortization of excess cost of
       equity investments                  (1.4)     (1.4)     (4.3)    (4.2)
      Interest, net                      (102.4)    (90.1)   (290.3)  (251.3)
      Other, net                            5.0       3.9       9.4      13.1
      Minority interest                    (2.6)     (2.1)     (4.6)    (8.1)
    

    
    Income from continuing operations
     before income taxes                  254.0     235.3     340.3     748.1
    

    Income tax expense                    (20.8)     (8.2)    (36.4)   (20.1)

    Income from continuing operations     233.2     227.1     303.9     728.0

    
    Income from discontinued
     operations                             8.6       2.4      21.1       8.8
    

    Net Income                           $241.8    $229.5    $325.0    $736.8

    
    Calculation of Limited Partners'
     interest in Net Income:
      Income from Continuing
       Operations                        $233.2    $227.1    $303.9    $728.0
      Less:  General Partner's
       interest                          (156.0)   (134.0)   (440.2)  (393.7)
      Limited Partners' interest           77.2      93.1    (136.3)    334.3
      Add:  Limited Partner's interest
       in Discontinued Operations           8.5       2.4      20.9       8.7
      Limited Partners' interest in
       Net Income                         $85.7     $95.5   $(115.4)   $343.0
    

    
    Diluted Limited Partners' Net
     Income per Unit:
      Income from Continuing
       Operations                         $0.32     $0.41    $(0.58)    $1.50
      Income from Discontinued
       Operations                         $0.04     $0.01     $0.09     $0.04
      Net Income                          $0.36     $0.42    $(0.49)    $1.54
      Weighted Average Units
       Outstanding                        239.0     226.2     235.1     223.1
    

    Declared distribution               $0.88     $0.81     $2.56     $2.43



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

    
                                         Three Mos. Ended     Nine Mos. Ended
                                              Sept. 30            Sept. 30
                                           2007      2006      2007      2006
    Segment Earnings Before DD&A
     and Amort. of Excess
     Investments:
      Products Pipelines                 $155.3    $116.9    $447.4    $372.8
      Natural Gas Pipelines               141.9     140.7     422.3     415.2
      CO2                                 138.0     127.1     392.3     374.7
      Terminals                           109.4      98.4     318.2     290.0
      Trans Mountain                       22.1         -      42.7         -
        Total                            $566.7    $483.1  $1,622.9  $1,452.7
    

    
    Segment DD&A and Amort. of
     Excess Investments:
      Products Pipelines                  $23.8     $21.6     $70.3     $64.0
      Natural Gas Pipelines                16.4      16.0      48.8      48.1
      CO2                                  73.6      51.3     214.7     133.6
      Terminals                            22.2      19.4      63.9      55.3
      Trans Mountain                        5.7         -       9.1         -
        Total                            $141.7    $108.3    $406.8    $301.0
    

    
    Segment Earnings Contribution:
      Products Pipelines                 $131.5     $95.3    $377.1    $308.8
      Natural Gas Pipelines               125.5     124.7     373.5     367.1
      CO2                                  64.4      75.8     177.6     241.1
      Terminals                            87.2      79.0     254.3     234.7
      Trans Mountain                       16.4         -      33.6         -
      General and Administrative          (60.4)    (59.7)   (188.4)  (181.5)
      Interest, net                      (102.9)    (89.3)   (290.6)  (249.5)
      Minority Interest                    (2.8)     (2.0)     (8.2)    (7.9)
      Certain Items (net of minority
       interest):
        Trans Mountain Before
         Dropdown                             -       5.7      14.7      19.1
        Trans Mountain Goodwill
         Impairment                           -         -    (373.3)        -
        Gain on Sale                          -         -         -      15.1
        Cochin Note Payable (net)           0.4         -         -         -
        Environmental Reserves                -         -      (2.2)   (17.9)
        Loss on Debt Retirement               -         -      (1.0)        -
        Allocated non-cash long-term
         compensation                      (1.5)        -     (24.6)        -
        Legal settlements                 (14.8)        -     (14.8)    (0.5)
        Hurricanes                            -         -       1.3         -
        Other (A)                          (1.2)        -      (4.0)      8.2
          Sub-total Certain Items         (17.1)      5.7    (403.9)     24.0
      Net income                         $241.8    $229.5    $325.0    $736.8
        Less:  General Partner's
         Interest in Net Income          (156.1)   (134.0)   (440.4)  (393.8)
        Limited Partners' Net Income      $85.7     $95.5   $(115.4)   $343.0
    

    
      Net income before certain items    $258.9    $223.8    $728.9    $712.8
        Less:  General Partner's
         Interest in Net Income
         before certain items            (156.2)   (133.9)   (444.4)  (393.5)
        Limited Partners' Net Income
         before Certain Items            $102.7     $89.9    $284.5    $319.3
        Depreciation, depletion and
         amortization (B)                 144.1     108.3     412.8     301.0
        Book/(Cash) Taxes - Net            14.7         -      20.7         -
        Sustaining capital
         expenditures (C)                 (31.8)    (15.6)    (95.0)   (76.2)
      DCF before certain items           $229.7    $182.6    $623.0    $544.1
    

    
      Net income/unit before certain
       items                              $0.43     $0.40     $1.21     $1.43
      DCF/unit before certain items       $0.96     $0.81     $2.65     $2.44
      Weighted Average Units
       Outstanding                        239.0     226.2     235.1     223.1
    

    
    (A)  2006 primarily includes contract settlements and the release of a
         reserve related to a natural gas pipeline contract obligation 2007
         includes insurance cancellation charge and acquisition expenses
    (B)  Includes Kinder Morgan's share of Rockies Express DD&A of $2.4 &
         $6.0 respectively for 3rd quarter and year-to-date 2007
    (C)  Excludes Trans Mountain prior to the April 30 acquisition
    



    
                               Volume Highlights
                  (historical pro forma for acquired assets)
    

    
                                          Three Mos. Ended  Nine Mos. Ended
                                             Sept. 30         Sept. 30
                                            2007    2006     2007     2006
    Products Pipelines
      Gasoline                             112.9   117.1    336.3    344.1
      Diesel                                43.0    42.2    124.5    120.2
      Jet Fuel                              31.9    30.0     94.0     89.4
        Total Refined Product Volumes
         (MMBbl)                           187.8   189.3    554.8    553.7
      NGL's                                 13.5    13.0     41.3     42.4
        Total Delivery Volumes (MMBbl) (A)
                                           201.3   202.3    596.1    596.1
    

    
    Natural Gas Pipelines (B)
      Transport Volumes (Bcf)              402.4   384.9  1,175.2  1,067.4
      Sales Volumes (Bcf)                  224.4   243.5    641.0    690.0
    

    
    CO2
      Delivery Volumes (Bcf) (C)           150.4   164.3    472.6    503.4
      Sacroc Oil Production - Gross
       (MBbl/d) (D)                         27.3    30.3     28.4     30.8
      Sacroc Oil Production - Net
       (MBbl/d) (E)                         22.8    25.3     23.6     25.7
      Yates Oil Production Gross -
       (MBbl/d) (D)                         27.1    26.3     26.7     25.9
      Yates Oil Production - Net
       (MBbl/d) (E)                         12.0    11.7     11.9     11.5
      NGL Sales Volumes (MBbl/d) (F)        10.0     8.4      9.8      8.9
      Realized Weighted Average Oil
       Price per Bbl (G)(H)               $36.77  $32.49   $35.56   $31.42
      Realized Weighted Average NGL
       Price per Bbl (H)                  $53.68  $47.68   $48.66   $44.82
    

    
    Terminals
      Liquids Leaseable Capacity (MMBbl)    46.3    43.5     46.3     43.5
      Liquids Utilization %                 96.5%   97.8%    96.5%    97.8%
      Bulk Transload Tonnage (MMtons)       22.6    25.4     63.2     69.6
    

    Trans Mountain (MMBbl)                  25.3    21.8     70.1     63.0

    
    (A)  Includes Pacific, Calnev, Plantation, Central Florida, Heartland,
         North System, 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)
    

    
                                                    Sept. 30          Dec. 31
                                                       2007              2006
    ASSETS
    

    
    Cash and cash equivalents                           $58                $7
    Other current assets                                999             1,030
    Property, Plant and Equipment, net               11,079            10,106
    Investments                                         440               426
    Deferred charges and other assets                 1,812             1,973
    TOTAL ASSETS                                    $14,388           $13,542
    

    LIABILITIES AND PARTNERS' CAPITAL

    
    Notes payable and current maturities
     of long-term debt                                 $597            $1,359
    Other current liabilities                         1,626             1,778
    Long-term debt                                    6,457             4,384
    Value of interest rate swaps                         45                43
    Other                                             1,020               970
    Minority interest                                    56                60
    Partners' Capital
        Accumulated Other Comprehensive Loss           (823)            (866)
        Other Partners' Capital                       5,410             5,814
          Total Partners' Capital                     4,587             4,948
    TOTAL LIABILITIES AND PARTNERS' CAPITAL         $14,388           $13,542
    


    
    Total Debt, net of cash and cash equivalents,
     and excluding the value of interest rate swaps  $6,996            $5,736
    

    Total Capitalization (Excl. Accum. OCI)         $12,462           $11,610

    Debt to Total Capitalization                       56.1%            49.4%

    
    Total Debt, net of cash and cash equivalents,
     and excluding the value of interest rate swaps  $6,996            $5,736
    

    
    Segment Earnings Before DD&A and
     certain items                                   $2,114            $1,944
    G&A                                               $(224)            (218)
    EBITDA (A)                                       $1,889            $1,726
    

    Debt to EBITDA                                     3.70              3.32

    (A)  2007 EBITDA is last twelve months




For further information:

For further information: Media Relations, Larry Pierce, +1-713-369-9407,
or Investor Relations, Mindy Mills, +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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