Kinder Morgan Energy Partners Increases Quarterly Distribution To $1.23 Per Unit

Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today increased its quarterly cash distribution per common unit to $1.23 ($4.92 annualized) payable on Aug. 14, 2012, to unitholders of record as of July 31, 2012. This represents a 7 percent increase over the second quarter 2011 cash distribution per unit of $1.15 ($4.60 annualized) and is up from $1.20 per unit ($4.80 annualized) for the first quarter of 2012. KMP has increased the distribution 44 times since current management took over in February 1997.

Chairman and CEO Richard D. Kinder said, “KMP had a strong second quarter, as our stable and diversified assets continued to grow and produce incremental cash flow. Our distributable cash flow increased by 13 percent versus the second quarter of 2011, and our CO 2, Natural Gas Pipelines and Terminals business segments produced robust results. Looking ahead, we believe there are multiple growth opportunities across all of our businesses related to the natural gas shale plays, growing CO 2 needs in West Texas for enhanced oil recovery, increasing demand for export coal, and additional infrastructure requirements to transport products from the Canadian oilsands and to move and store natural gas liquids. We are also excited about the growth opportunities that KMP is expected to realize from Kinder Morgan, Inc.’s acquisition of El Paso Corporation, which closed in the second quarter. With our large footprint of assets in North America, KMP is well positioned for future growth.”

KMP reported second quarter distributable cash flow before certain items of $366 million, up 13 percent from $324 million for the comparable period in 2011. Distributable cash flow per unit before certain items was $1.07 compared to $1.01 for the second quarter last year. Second quarter net income before certain items was $467 million compared to $393 million for the same period in 2011. Including certain items, net income was $159 million compared to $232 million for the second quarter last year. Certain items for the second quarter totaled a net loss of $308 million versus a net loss of $161 million for the same period last year.

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