Kinder Morgan Expects to Distribute $4.02 Per Unit for 2008

    Represents 17% Growth Over 2007 Budgeted Distribution per Unit

    HOUSTON, Nov. 26 /CNW/ -- Kinder Morgan Energy Partners, L.P. (NYSE:   KMP)
today announced it 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.
    KMP Chairman and CEO Richard D. Kinder said, "We expect to grow our
distribution per unit about 17 percent in 2008 relative to our 2007 budget of
$3.44.  As we stated previously, we anticipate actual distributions per unit
for 2007 will come in above budget.  Our business units in 2008 are projected
to deliver approximately $2.6 billion in distributable cash flow, which is an
increase of about $500 million over their 2007 performance."  Additionally,
the 2008 budget includes an excess of distributable cash flow over
distributions of approximately $15 million.
    "We are very excited to begin to deliver back to our KMP unitholders and
KMR shareholders the value being created through our large expansion capital
program," Kinder said.  "Our expected robust growth in 2008 will be fueled by
the addition of Rockies Express-West, higher hedge prices on our crude
production and anticipated strong performance from our other assets."  Kinder
noted the CO2 segment is expected to produce incremental distributable cash
flow of approximately $200 million in 2008, but that growth will be driven by
higher hedge prices rather than an expected increase in volumes.  Budgeted
production volumes for the SACROC Unit in 2008 are slightly below the volumes
being realized in 2007.
    "Our capital expansion program will continue to be significant in 2008,
as we expect to invest about $2.1 billion in expansion capital expenditures
(including equity contributions to the Rockies Express and Midcontinent
Express pipeline projects) which will drive growth in 2009 and beyond," Kinder
    The company remains committed to transparency and a detailed budget for
KMP will be discussed during the company's annual analyst meeting Jan. 24,
2008, in Houston, and will be published on the company's web site,  The 2008 budget will be the standard by which
KMP measures its performance next year and will be a target for determining
employee bonuses.
    Kinder Morgan Management, LLC
    Kinder Morgan Management, LLC (NYSE:   KMR) expects to declare cash
distributions of $4.02 per share for 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.
    The non-generally accepted accounting principles financial measures of
distributable cash flow or distributable cash flow per unit, 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.  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.
    This news release includes forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934.  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.

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:

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