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Kinder Morgan Energy Partners Increases Quarterly Distribution To $1.36 Per Unit, Up 5%

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 $22 million. 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 $635 million, 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 $796 million 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 $22 million 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.

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