Table of Contents

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| [X] |    | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d)OF      THE SECURITIES EXCHANGE ACT OF 1934 |
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| [   ] |    | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d)OF      THE SECURITIES EXCHANGE ACT OF 1934 |
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| Kansas                                                                  |    | 48-0290000                                    |
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| (State      or other jurisdiction ofincorporation      or organization) |    | (I.R.S.      EmployerIdentification      No.) |

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KINDER MORGAN, INC. AND SUBSIDIARIES

|            |                                                                                                  | PageNumber |
|-----------------|-------------------------------------------------------------------------------------------------------|------------|
|            | PART I                                                                                                |       |   |
| Items 1. and 2. | Business and Properties                                                                               | 5          |   |
|            | (a) General Development of      Business                                                              | 5          |   |
|            | Organizational    Structure                                                                           | 5          |   |
|            | Recent Developments                                                                                   | 6          |   |
|            | (b) Financial Information about      Segments                                                         | 11         |   |
|            | (c) Narrative Description of      Business                                                            | 11         |   |
|            | Business Strategy                                                                                     | 11         |   |
|            | Business Segments                                                                                     | 11         |   |
|            | Products Pipelines–KMP                                                                          | 12         |   |
|            | Natural Gas    Pipelines–KMP                                                                    | 16         |   |
|            | CO2–KMP                                                                                         | 23         |   |
|            | Terminals–KMP                                                                                   | 25         |   |
|            | Kinder Morgan Canada–KMP                                                                        | 29         |   |
|            | NGPL PipeCo LLC                                                                                       | 31         |   |
|            | Power                                                                                                 | 31         |   |
|            | Major Customers                                                                                       | 31         |   |
|            | Regulation                                                                                            | 32         |   |
|            | Environmental Matters                                                                                 | 35         |   |
|            | Other                                                                                                 | 37         |   |
| Item 1A.        | Risk Factors                                                                                          | 38         |   |
| Item 1B.        | Unresolved Staff      Comments                                                                        | 46         |   |
| Item 3.         | Legal Proceedings                                                                                     | 47         |   |
| Item 4.         | Submission of Matters to a Vote of      Security Holders                                              | 47         |   |
|       |                                                                                                  |       |   |
|            | PART II                                                                                               |       |   |
| Item 5.         | Market for Registrant’s Common Equity,      Related Stockholder                                 |       |   |
|            | Matters and Issuer Purchases of Equity      Securities                                                | 48         |   |
| Item 6.         | Selected Financial Data                                                                               | 48         |   |
| Item 7.         | Management’s Discussion and Analysis of      Financial Condition and Results of Operations | 49         |   |
|            | General                                                                                               | 49         |   |
|            | Critical Accounting Policies and      Estimates                                                       | 50         |   |
|            | New Basis of Accounting                                                                               | 53         |   |
|            | Results of Operations                                                                                 | 54         |   |
|            | Income Taxes—Continuing      Operations                                                         | 75         |   |
|            | Income Taxes—Realization of Deferred Tax      Assets                                            | 75         |   |
|            | Liquidity and Capital      Resources                                                                  | 76         |   |
|            | Cash Flows                                                                                            | 79         |   |
|            | Investment in Kinder Morgan Energy      Partners                                                      | 84         |   |
|            | Noncontrolling Interests Distributions to      Kinder Morgan Energy Partners’                   |       |   |
|            | Common Unit Holders                                                                              | 84         |   |
|            | Recent Accounting      Pronouncements                                                                 | 85         |   |
|            | Information Regarding Forward-looking      Statements                                                 | 85         |   |
| Item 7A.        | Quantitative and Qualitative Disclosures About Market      Risk                                       | 87         |   |
|            | Energy Commodity Market Risk                                                                          | 87         |   |
|            | Interest Rate Risk                                                                                    | 89         |   |
|            | Foreign Currency Risk                                                                                 | 90         |   |
| Item 8.         | Financial Statements and Supplementary      Data                                                      | 90         |   |
| Item 9.         | Changes in and Disagreements with Accountants on Accounting      and                                  |       |   |
|            | Financial Disclosure                                                                                  | 90         |   |

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| Item 9A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Controls and Procedures                                                                             | 90     |   |
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Conclusion Regarding the Effectiveness of      Disclosure Controls and Procedures                   | 90     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Management’s Report on Internal Control over      Financial Reporting                         | 90     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Changes in Internal Control over      Financial Reporting                                           | 91     |   |
| Item 9B.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Other Information                                                                                   | 91     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | PART III                                                                                            |   |   |
| Item 10.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Directors, Executive Officers and Corporate      Governance                                         | 92     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Directors and Executive      Officers                                                               | 92     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Compensation Committee Interlocks and      Insider Participation                                    | 94     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | CorporateGovernance                                                                                 | 94     |   |
| Item 11.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Executive Compensation                                                                              | 94     |   |
| Item 12.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Security Ownership of Certain Beneficial Owners and      Management and Related Stockholder Matters | 103    |   |
| Item 13.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Certain Relationships and Related Transactions, and      Director Independence                      | 105    |   |
| Item 14.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Principal Accounting Fees and Services                                                              | 105    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | PART IV                                                                                             |   |   |
| Item 15.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Exhibits, Financial Statement Schedules                                                             | 106    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Index to Financial Statements                                                                       | 109    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                |   |   |
| Signatures                                                                                                                              | 199                                                                                                 |   |

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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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|   | ▪ | On      June 1, 2009, Kinder Morgan Energy Partners completed a phased horsepower      expansion on its West Coast Products Pipelines’ 12-inch diameter, 175-mile      Concord to Fresno, California refined petroleum products pipeline      segment.  The expansion added approximately 10,000 barrels per      day of capacity; |
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|   | ▪ | On      June 16, 2009, Plantation Pipe Line Company successfully completed the      first United States (“U.S.”) transmarket commercial shipment of blended      biodiesel (a 5% blend commonly referred to as B5) on a mainline segment of      its pipeline.  During 2009, Plantation successfully delivered      blended biodiesel to marketing terminals located in Georgia North Carolina      and Virginia. Plantation is prepared to deliver biodiesel to other markets      along its pipeline system in response to customers’ need for blending and      transporting biodiesel to meet federal regulatory      requirements; |
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|   | ▪ | On      September 22, 2009, Kinder Morgan Energy Partners began commercial      transportation of blended biodiesel (a 2% blend commonly referred to as      B2) on its West Coast Products Pipelines’ 115-mile Oregon Pipeline that      extends from Portland to Eugene, Oregon.  The first commercial      batch of approximately 100,000 barrels of B2 was created using a newly      installed blending system to inject B99 (a diesel blend that contains 99%      biodiesel and 1% petroleum diesel) into ultra low sulfur diesel at the      Willbridge refined products terminal located in Portland,      Oregon. |
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|   |   | Subsequently, Kinder Morgan Energy Partners has      undertaken additional renewable fuels projects at several of its West      Coast refined products terminal locations, including improvements to allow      for the blending of biodiesel at both the truck-loading rack at its      Willbridge terminal and the barge-loading facilities at its Linnton      terminal, also located in Portland.  All of these biodiesel      shipments help diesel fuel suppliers throughout Oregon meet a state      biodiesel mandate that became effective on October 1,  2009; |
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|   | ▪ | During      2009, Kinder Morgan Energy Partners approved an approximately $15.8      million investment to install new infrastructure at its West Coast      Products Pipelines’ California terminals to facilitate customer      requirements to increase the ethanol blend rate to 10%, consistent with      recent California environmental initiatives.  All of Kinder      Morgan Energy Partners’ California refined products terminals began      blending ethanol at 10% effective January 11, 2010;  and |
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|   | ▪ | As      of December 31, 2009, Kinder Morgan Energy Partners completed      modifications to its Central Florida Pipeline to more efficiently move      gasoline and ultra-low sulfur diesel fuel within the terminal community at      the Port of Tampa.  Kinder Morgan Energy Partners modified its      existing inter-terminal pipelines to provide BP with access to the port’s      deep-draft ship berths.  The modifications also provide a      platform for third-party Port of Tampa terminals to tie-in to the Central      Florida pipeline system.  Relatedly, in the fourth quarter of      2009, Kinder Morgan Energy Partners placed into service two new storage      tanks at its Central Florida’s Orlando terminal.  The additional      tankage (half for ethanol and half for refined petroleum products)      increased the facility’s total storage capacity by 200,000      barrels. |
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|   | ▪ | On      June 21, 2009, Kinder Morgan Energy Partners completed construction and      fully placed into service its Kinder Morgan Louisiana Pipeline, a      133-mile, 42-inch diameter, pipeline that provides approximately 3.2      billion cubic feet per day of take-away natural gas capacity from the      Cheniere Sabine Pass liquefied natural gas terminal, located in Cameron      Parish, Louisiana.  The pipeline system interconnects with      multiple third-party pipelines in Louisiana, and all of the pipeline      capacity has been fully subscribed by Chevron and Total under 20-year firm      transportation contracts.  The Kinder Morgan Louisiana Pipeline      project cost approximately $1 billion to  complete; |
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|   | ▪ | On      August 1, 2009, Kinder Morgan Energy Partners completed construction and      fully placed into service its 50%-owned Midcontinent Express Pipeline, a      507-mile natural gas pipeline system.  Energy Transfer Partners      L.P. owns the remaining interest.  The pipeline’s Zone 1 segment      extends from Bennington, Oklahoma to an interconnect with Columbia Gulf      Transmission Company in Madison Parish, Louisiana.  It has a      design capacity of approximately 1.5 billion cubic feet per day, and      currently transports approximately 1.4 billion cubic feet per      day.  The pipeline’s Zone 2 segment extends from the Columbia      Gulf interconnect, and terminates at an interconnection with the Transco      Pipeline near Butler, Alabama.  It has a design capacity of      approximately 1.2 billion cubic feet per day, and currently transports      approximately 1.0 billion cubic feet perday. |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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|   |   | The Midcontinent Express pipeline system connects the      Barnett Shale, Bossier Sands and other natural gas producing regions in      Texas, Oklahoma and Louisiana to markets in the eastern United States, and      substantially all of the pipeline’s capacity is fully subscribed with      long-term binding commitments from creditworthy shippers.  In an      order issued September 17, 2009, the Federal Energy Regulatory Commission,      referred to in this report as the FERC, approved Midcontinent Express’ (i)      amendment to move one compressor station in Mississippi and modify the      facilities at another station in Texas; and (ii) application to expand the      capacity in Zone 1 by 0.3 billion cubic feet per day (this expansion is      expected to be completed in December 2010).  The current      estimate of total construction costs on the entire project, including      expansions, is approximately $2.3billion; |
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|   | ▪ | On      June 29, 2009, Kinder Morgan Energy Partners commenced interim      transportation service for up to 1.6 billion cubic feet per day of natural      gas on the first 444 miles of its then 51%-owned Rockies Express-East      pipeline segment.  This segment extends from Audrain County,      Missouri to the Lebanon Hub in Warren County, Ohio.  On November 12, 2009,      Kinder Morgan Energy Partners completed and placed into service the      remainder of Rockies Express-East, consisting of approximately 195-miles      of 42-inch diameter pipe extending to a terminus near the town of      Clarington in Monroe County, Ohio. On November 14, 2009, Rockies Express-East      experienced a pipeline girth weld failure downstream of its      Chandlersville, Ohio compressor station (approximately 60 miles upstream      from the system terminus at Clarington).  Rockies Express      declared a force majeure on its contractual obligations to provide service      east of the Chandlersville compressor station, in order to repair and      inspect the affected segment.  Reservation charges under certain      shipper service contracts were credited to shippers, in part, during this      force majeure outage. Following coordination with the United States      Department of Transportation Pipeline and Hazardous Materials Safety      Administration, Kinder Morgan Energy Partners developed a Return to      Service Plan.  The pipeline was repaired and the affected      segment returned to reduced capacity on January 27, 2010.  The      restoration of service at reduced capacity was sufficient to meet current      contractual obligations and the reservation fees under shipper service      contracts were billed at the level in effect prior to the force majeure      event.  On February 6, 2010, the force majeure was lifted and      the segment was returned to pre-failure capacity.  On February      17, 2010, the United States Department of Transportation Pipeline and      Hazardous Materials Safety Administration issued a Corrective Action Order      that incorporates the Return to Service Plan.  Rockies      Express-East has completed implementation of the majority of the      requirements of the Return to Service Plan and the Corrective Action      Order. The 639-mile, Rockies Express-East pipeline      segment is the third and final phase of the Rockies Express      Pipeline.  It permits natural gas delivery to pipelines and      local distribution companies providing service to the midwestern and      eastern U.S. markets.  The interconnecting interstate pipelines      include Missouri Gas Pipeline, Natural Gas Pipeline Company of America LLC      (a 20% owned equity investee of Kinder Morgan, Inc. and referred to in      this report as NGPL), Midwestern Gas Transmission, Trunkline, Panhandle      Eastern Pipe Line, ANR, Columbia Gas, Dominion Transmission, Tennessee      Gas, Texas Eastern, and Texas Gas Transmission.  The local      distribution companies include Ameren, Vectren, and Dominion East      Ohio.  Now fully operational, the 1,679-mile Rockies Express      Pipeline has the capacity to transport up to 1.8 billion cubic feet of      natural gas per day.  Effective December 1, 2009, Kinder Morgan      Energy Partners’ ownership interest in the Rockies Express Pipeline was      reduced to 50% and ConocoPhillips’ interest was increased to 25% (from      24%).  Sempra Pipelines and Storage owns the remaining 25%      interest. Binding firm commitments from creditworthy      shippers have been secured for nearly all of the capacity on the Rockies      Express Pipeline, including a compression expansion on the Rockies      Express-Entrega segment.  The first leg of this expansion      extends from Meeker, Colorado to Wamsutter, Wyoming, and began service in      December 2009.  The second leg of the expansion will extend from      Wamsutter to the Cheyenne Hub in Colorado and is expected to be completed      in July 2010.  The Rockies Express Pipeline is one of the      largest natural gas pipeline systems ever constructed in North America,      and the current estimate of total construction costs on the entire      project, including expansions, is approximately $6.8    billion; |
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|   | ▪ | On      September 30, 2009, the FERC issued authority to Kinder Morgan Energy      Partners’ subsidiary, Kinder Morgan Interstate Gas Transmission LLC, the      right to construct and operate $14 million in capital improvements to      increase the withdrawal capability of its Huntsman natural gas storage      facility.  Incremental storage capacity arising from the      expansion project is contracted under a firm service agreement for a      five-year term.  The service for these new facilities commenced      on February 1, 2010; |
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|   | ▪ | Effective      October 1, 2009, Kinder Morgan Energy Partners acquired the natural gas      treating business from Crosstex Energy, L.P. and Crosstex Energy, Inc. for      an aggregate consideration of $270.7 million.  The acquired      assets primarily consist of approximately 290 natural gas amine-treating      and dew-point control plants and related equipment that are used to remove impurities      and liquids from natural gas in order to meet pipeline quality      specifications.  The assets are predominantly located in      Texas and Louisiana, with additional facilities located in Mississippi,      Oklahoma, |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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|   |   | Arkansas      and Kansas.  The acquisition makes Kinder Morgan Energy Partners      the largest contract provider of natural gas treating services in the U.S.      and complements and expands the existing natural gas treating operations      currently being offered by its Texas intrastate natural gas pipeline      group; |
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|   | ▪ | On      October 22, 2009, Kinder Morgan Energy Partners announced that it had      received the Continuing Excellence Award for its participation in the      United States Environmental Protection Agency’s Natural Gas STAR      program.  The Natural Gas STAR Program is a flexible, voluntary      partnership that encourages oil and natural gas companies—both      domestically and abroad—to adopt cost-effective technologies and practices      that improve operational efficiency and reduce emissions of      methane. |
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|   |   | The      Continuing Excellence Award recognizes a partner’s outstanding performance      over multiple years in reducing methane emissions, identifying and      implementing new emission-reducing technologies and practices, and      supporting the overall objectives of the Natural Gas STAR      program.  In 2008, Kinder Morgan Energy Partners implemented      several technologies and operational practices that resulted in methane      emission reductions of 3,469,719 thousand cubic feet.  These      reductions were achieved through the installation of new electric motor      driven compressors and gas turbines, using compressors to pump down      pipeline sections prior to maintenance activities, implementation of      directed inspection and maintenance programs and other methane emission      reduction practices; |
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|   | ▪ | Effective      November 1, 2009, Kinder Morgan Energy Partners acquired a 40% ownership      interest in Endeavor Gathering LLC, the natural gas gathering and      compression business of GMX Resources Inc., for an aggregate consideration      of $36.0 million.  Endeavor Gathering LLC provides natural gas      gathering service to GMX Resources’ exploration and production activities      in its Cotton Valley Sands and Haynesville/Bossier Shale horizontal well      developments located in East Texas.  GMX Resources operates and      owns the remaining 60% interest in Endeavor Gathering LLC.  The      acquisition complements Kinder Morgan Energy Partners’ existing natural      gas gathering and transportation business located in the state of      Texas; |
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|   | ▪ | On      November 13, 2009, Kinder Morgan Energy Partners and Copano Energy, L.L.C.      announced that they have entered into a letter of intent for a joint      venture to provide natural gas gathering, transportation and processing      services to natural gas producers in the Eagle Ford Shale formation in      south Texas.  Kinder Morgan Energy Partners will own 50% of the      equity in the project and Copano will own the remaining 50%      interest.  As a first phase, the joint venture will construct an      approximately 22-mile, 24-inch diameter, natural gas gathering pipeline      and enter into new commercial arrangements with both Kinder Morgan Energy      Partners and Copano.  The natural gas pipeline will originate in      LaSalle County, Texas and will terminate in Duval County,      Texas.  It will have an initial capacity of 350 million cubic      feet per day and is expected to be completed in the third quarter of 2010;      and |
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|   | ▪ | On      December 17, 2009, the FERC approved and issued Fayetteville Express      Pipeline LLC’s certificate application, authorizing construction of its      previously announced Fayetteville Express Pipeline.  Kinder      Morgan Energy Partners own a 50% interest in Fayetteville Express Pipeline      LLC and Energy Transfer Partners L.P. owns the remaining      interest.  As of February 2010, development continues on the      construction of the Fayetteville Express Pipeline, a 187-mile, 42-inch      diameter, natural gas pipeline that will provide shippers in the Arkansas      Fayetteville Shale area with takeaway natural gas capacity and further      access to growing markets.  The pipeline will extend from Conway      County, Arkansas to a terminus located in Panola County, Mississippi, and      construction is expected to begin before the end of the first quarter of      2010. |
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|   |   | The      pipeline will have an initial capacity of two billion cubic feet per day,      and has currently secured binding commitments for at least ten years      totaling 1.85 billion cubic feet per day of capacity.  Pending      necessary regulatory approvals, the pipeline is expected to be in service      by late 2010 or early 2011.  Currently, it is estimated that the      Fayetteville Express Pipeline project will cost approximately $1.2 billion      to complete. |
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|   | ▪ | In      July 2009, Kinder Morgan Energy Partners announced that it would invest      approximately $180 million over the next several years to further expand      its carbon dioxide operations in the eastern Permian Basin area of      Texas.  The expansion will involve the installation of a      91-mile, 10-inch carbon dioxide distribution pipeline, and the development      of a new carbon dioxide flood in the Katz field.  It is      anticipated that the carbon dioxide pipeline will be placed in service in      early 2011 and initial carbon dioxide injections      into the Katz field will commence shortly  thereafter. |
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|   | ▪ | In      the second quarter of 2009, Kinder Morgan Energy Partners completed an      approximately C$45.6 million expansion project at its Vancouver Wharves      bulk marine terminal located in British Columbia, Canada.  The      project added 250,000 barrels of liquids petroleum storage capacity and      expanded copper, zinc, and lead bulk-handling operations at the      facility; |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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|   | ▪ | Effective      April 23, 2009, Kinder Morgan Energy Partners acquired certain marine      vessels from Megafleet Towing Co., Inc. for an aggregate consideration of      $21.7 million.  Kinder Morgan Energy Partners’ consideration      included $18.0 million in cash and an obligation to pay additional cash      consideration on April 23, 2014 (five years from the acquisition date)      contingent upon the purchased assets providing an agreed-upon amount of      earnings, as defined by the purchase and sale agreement, during the five      year period.  The acquired assets primarily consist of nine      marine vessels that provide towing and harbor boat services along the Gulf      coast, the intracoastal waterway and the Houston Ship    Channel; |
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|   | ▪ | In      May 2009, Kinder Morgan Energy Partners completed an approximately $12.8      million expansion at its Cora, Illinois coal terminal.  The      expansion project increased terminal storage capacity by approximately      250,000 tons (to 1.25 million tons) and expanded maximum throughput at the      terminal to approximately 13 million tons  annually; |
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|   | ▪ | On      July 15, 2009, Kinder Morgan Energy Partners announced that it had entered      into an agreement with a major oil company and will invest approximately      $60 million to construct one million barrels of new petroleum and ethanol      storage tank capacity at its liquids terminal located in Carteret, New      Jersey.  The project is expected to be completed in the first      quarter of 2011; |
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|   | ▪ | In      the fourth quarter of 2009, Kinder Morgan Energy Partners brought      approximately 450,000 barrels of new liquids storage capacity into service      at its Galena Park and Pasadena, Texas liquids terminals, which are      located on the Houston Ship Channel.  The incremental tank      capacity is supported by multi-year customer agreements.  For      the full year 2009, approximately 1.85 million barrels of combined liquids      storage capacity at these two terminals was added;  and |
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|   | ▪ | Effective      January 15, 2010, Kinder Morgan Energy Partners acquired three unit train      ethanol handling terminals from U.S Development Group (“USD”)for an      aggregate consideration of $197.4 million, consisting of $115.7 million in      cash and $81.7 million in common units.  The three train      terminals are located in Linden, New Jersey, Baltimore, Maryland, and      Dallas, Texas. |
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|   |   | As part of the transaction, Kinder Morgan Energy Partners      announced the formation of a joint venture with USD to optimize and      coordinate customer access to the three acquired terminals, other ethanol      terminal assets already owned and operated by Kinder Morgan Energy      Partners, and other terminal projects currently under development by both      parties.  The joint agreement will combine USD’s expertise in      designing, developing and operating ethanol terminals with Kinder Morgan      Energy Partners’ ethanol terminal assets and pipeline assets to create a      nationwide distribution network of ethanol handling facilities connected      by rail, marine, truck and pipeline, capable of meeting the growing U.S.      demand for biofuels.  With the new terminal joint venture and      other projects completed or underway (including projects in the Products      Pipelines–KMP business segment) Kinder Morgan Energy Partners expects to      handle in excess of 250,000 barrels of ethanol per day in 2010;    and |
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|   | ▪ | On      March 5, 2010, Kinder Morgan Energy Partners acquired four terminals from      Slay Industries for approximately $98 million in cash.  The      facilities include (i) a marine terminal located in Sauget, Illinois, (ii)      a transload liquid operation located in Muscatine, Iowa, (iii) a liquid      bulk terminal located in St. Louis, Missouri and (iv) a warehousing      distribution center located in St. Louis.  All of the acquired      terminals have long-term contracts with large credit worthy      shippers.  As part of the transaction, Kinder Morgan Energy      Partners and Slay Industries entered into joint venture agreements at both      the Kellogg Dock coal bulk terminal, located in Modoc, Illinois, and at      the newly created North Cahokia terminal, located in Sauget and which has      approximately 175 acres to develop.  All of the assets in Sauget      have access to the Mississippi River and five rail    carriers. |
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|   | ▪ | On      January 12, 2009, Kinder Morgan Energy Partners terminated an existing      fixed-to-variable interest rate swap agreement having a notional principal      amount of $300 million.  Kinder Morgan Energy Partners received      proceeds of $144.4 million from the early termination of this swap      agreement, and it used the proceeds to reduce the borrowings under its      bank credit facility; |
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|   | ▪ | On      February 1, 2009, Kinder Morgan Energy Partners paid $250 million to      retire the principal amount of 6.30% senior notes that matured on that      date; |
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|   | ▪ | In      2009, Kinder Morgan Energy Partners issued a combined 22,942,447 common      units, described following.  The net proceeds received from the      issuance of these common units were used to reduce the borrowings under      its bank credit facility: |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
|--------------------------------------------------------------------------|------------------------------------|

|   |   | On      January 16, 2009, Kinder Morgan Energy Partners entered into an equity      distribution agreement with UBS Securities LLC as sales agent, and      according to the provisions of this agreement, it issued 5,488,947 of its      common units during 2009.  After commissions, net proceeds of      $281.2 million were received from the issuance of these common      units; On March 27, 2009,      Kinder Morgan Energy Partners completed a public offering of 5,666,000 of      its common units at a price of $46.95 per unit, less commissions and      underwriting expenses; On July 6, 2009,      Kinder Morgan Energy Partners completed a public offering of 6,612,500 of      its common units at a price of $51.50 per unit, less commissions and      underwriting expenses; and On December 4, 2009,      Kinder Morgan Energy Partners completed a public offering of 5,175,000 of      its common units at a price of $57.15 per unit, less commissions and      underwriting expenses; and |
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|   | ▪ | In      2009, Kinder Morgan Energy Partners completed two separate public      offerings of senior notes, described following.  The net      proceeds received from the issuance of these notes were used to reduce the      borrowings under its bank creditfacility: |
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|   |   | On      May 14, 2009, Kinder Morgan Energy Partners issued a total of $1 billion      in principal amount of senior notes, consisting of $300 million of 5.625%      notes due February 15, 2015 and $700 million of 6.850% notes due February      15, 2020; and On      September 16, 2009, Kinder Morgan Energy Partners issued a total of $1      billion in principal amount of senior notes, consisting of $400 million of      5.80% notes due March 1, 2021 and $600 million of 6.50% notes due      September 1, 2039. |
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|   | 2010      Outlook |
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|   | ▪ | On      November 23, 2009, Kinder Morgan Energy Partners announced that it expects      to declare cash distributions of $4.40 per unit for 2010, a 4.8% increase      over its cash distributions of $4.20 per unit for 2009.  Kinder      Morgan Energy Partners’ expected growth in distributions in 2010 assumes      an average West Texas Intermediate (“WTI”) crude oil price of      approximately $84 per barrel in2010. |
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|   |   | Although      the majority of the cash generated by Kinder Morgan Energy Partners’      assets is fee based and is not sensitive to commodity prices, theCO2–KMP      business segment is exposed to commodity price risk related to the price      volatility of crude oil and natural gas liquids.  Kinder Morgan      Energy Partners hedges the majority of its crude oil production, but does      have exposure to unhedged volumes, the majority of which are natural gas      liquids volumes.  For 2010, Kinder Morgan Energy Partners      expects that every $1 change in the average WTI crude oil price per barrel      will impact its CO2–KMP      segment’s cash flows by approximately $6 million (or less than 0.2% of its      combined business segments’ anticipated earnings before depreciation,      depletion and amortization expenses).  This sensitivity to the      average WTI price is very similar to what was experienced in      2009.  Kinder Morgan Energy Partners’ 2010 cash distribution      expectations do not take into account any capital costs associated with      financing any payment it may be required to make of reparations sought by      shippers on its West Coast Products Pipelines’ interstate pipelines. Any      resolution of claims of shippers on Kinder Morgan Energy Partners West      Coast Products Pipelines’ interstate pipelines that requires it to pay      reparations, absent other changes, could mean it may not generate      sufficient cash from operations to cover its expected cash distributions.      There are some items that could be adjusted—such as reductions in      operating, general and administrative expenses and/or sustaining capital      expenditures—to somewhat enhance cash from operations.  However,      cumulative excess coverage may be reduced and/or we, as indirect owner of      Kinder Morgan Energy Partners’ general partner, may decide to forego part      of our incentive distribution in order for Kinder Morgan Energy Partners      to meet its distribution forecast.  Cumulative excess coverage is      cash from operations (as described under Item 7. “Management's Discussion      and Analysis of Financial Condition and Results of Operations—Liquidity      and Capital Resources—Noncontrolling Interests Distributions to Kinder      Morgan Energy Partners’ Common Unit Holders”) generated since the      inception in excess of cash distributions paid. Also      on that date, Kinder Morgan Energy Partners announced that for the year      2010, Kinder Morgan Energy Partners anticipates that (i) its business      segments will generate approximately $3.4 billion in earnings before all      non-cash depreciation, depletion and amortization expenses, including      amortization of excess cost of equity investments, (ii) it will distribute      approximately $1.35 billon to its limited partners and (iii) it will      invest approximately $1.5 billion for its capital expansion program      (including small acquisitions). Kinder      Morgan Energy Partners anticipates 2010 expansion investment will help      drive earnings and cash flow growth in 2010 and beyond, and estimates that      approximately $400 million of the equity required for its 2010 investment      program will be funded by cash retained as a function of Kinder Morgan      Management dividends.  In 2009,Kinder |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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|   |   | Morgan Energy Partners’ capital expansion program was      approximately $3.3 billion—including both sustaining and discretionary      capital spending, equity contributions (net of distributions) to its      equity investees, and acquisition cashexpenditures. |
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|   | ▪ | focusing      on stable, fee-based energy transportation and storage assets that are the      core of the energy infrastructure of growing markets within North      America; |
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|   | ▪ | increasing      utilization of our existing assets while controlling costs, operating      safely, and employing environmentally sound operating      practices; |
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|   | ▪ | leveraging      economies of scale from incremental acquisitions and expansions of assets      that fit within our strategy and are accretive to cash flow;      and |
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|   | ▪ | maximizing      the benefits of our financial structure to create and return value to our      stockholder. |
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|   | ▪ | Products      Pipelines–KMP—which consists of approximately 8,400 miles of refined      petroleum products pipelines that deliver gasoline, diesel fuel, jet fuel      and natural gas liquids to various markets; plus approximately 60      associated product terminals and petroleum pipeline transmix processing      facilities serving customers across the United  States; |
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|   | ▪ | Natural      Gas Pipelines–KMP—which consists of approximately 15,000 miles of natural      gas transmission pipelines and gathering lines, plus natural gas storage,      treating and processing facilities, through which natural gas is gathered,      transported, stored, treated, processed and  sold; |
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|   | ▪ | CO2–KMP—which      produces, markets and transports, through approximately 1,400 miles of      pipelines, carbon dioxide to oil fields that use carbon dioxide to      increase production of oil; owns interests in and/or operates ten oil      fields in West Texas; and owns and operates a 450-mile crude oil pipeline      system in West Texas; |
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|   | ▪ | Terminals–KMP—which      consists of approximately 120 owned or operated liquids and bulk terminal      facilities and more than 32 rail transloading and materials handling      facilities located throughout the United States and portions of Canada,      which together transload, store and deliver a wide variety of bulk,      petroleum, petrochemical and other liquids products for customers across      the United States and Canada; |
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|   | ▪ | Kinder      Morgan Canada–KMP—which consists of approximately 800 miles of common      carrier pipelines, originating at Edmonton, Alberta, for the      transportation of crude oil and refined petroleum to the interior of      British Columbia and to marketing terminals and refineries located in the      greater Vancouver, British Columbia area and Puget Sound in Washington      State, along with five associated product terminals.  It also      includes a one-third interest in an approximately 1,700-mile integrated      crude oil pipeline connecting Canadian and United States producers to      refineries in the U.S. Rocky Mountain and Midwest regions, and a 25-mile      aviation turbine fuel pipeline serving the Vancouver International      Airport; |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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|   | ▪ | NGPL      PipeCo LLC—consists of our 20% interest in NGPL PipeCo LLC, the owner of      Natural Gas Pipeline Company of America and certain affiliates,      collectively referred to as Natural Gas Pipeline Company of America or      NGPL, a major interstate natural gas pipeline and storage system, which we      operate.  Prior to February 15, 2008, we owned 100% of NGPL;      and |
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|   | ▪ | Power—consists      of two natural gas-fired electric generation  facilities. |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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|   | ▪ | a      132-mile, 42-inch diameter pipeline with firm capacity of approximately      2.0 billion cubic feet per day of natural gas that extends from the Sabine      Pass terminal to a point of interconnection with an existing Columbia Gulf      Transmission line in Evangeline Parish, Louisiana (an offshoot consists of      approximately 2.3 miles of 24-inch diameter pipeline  with |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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|   |   | firm      peak day capacity of approximately 300 million cubic feet per day      extending away from the 42-inch diameter line to the Florida Gas      Transmission Company compressor station in Acadia Parish, Louisiana);      and |
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|   | ▪ | a      1-mile, 36-inch diameter pipeline with firm capacity of approximately 1.2      billion cubic feet per day that extends from the Sabine Pass terminal and      connects to NGPL’s natural gaspipeline. |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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|   | ▪ | the      Houston, Texas terminal complex located in Pasadena and Galena Park,      Texas, along the Houston Ship Channel.  Recognized as a      distribution hub for Houston’s refineries situated on or near the Houston      Ship Channel, the Pasadena and Galena Park terminals are the western Gulf      Coast refining community’s central interchange point.  The      complex has approximately 26.2 million barrels of capacity and is      connected via pipeline to 14 refineries, four petrochemical plants and ten      major outbound pipelines.  Combined, the Pasadena and Galena      Park terminals brought an incremental 1.85 million barrels of liquids      storage capacity online during 2009 (including incremental truck loading      capacity) as refinery outputs along the Gulf Coast have continued to      increase. Since Kinder Morgan Energy Partners’ acquisition of the terminal      complex in January 2001, it has upgraded its pipeline manifold connection      with the Colonial Pipeline system; added pipeline connections to new      refineries and an additional cross-channel pipeline to increase the      connectivity between the two terminals and constructed an additional      loading bay at its fully automated truck loading rack located at its      Pasadena terminal.  In addition, the facilities have five ship      docks and seven barge docks for inbound and outbound movement of      products.  The terminals are served by the Union Pacific      railroad; |
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|   | ▪ | three      liquids facilities in the New York Harbor area: one in Carteret, New      Jersey; one in Perth Amboy, New Jersey; and one on Staten Island, New      York.  Kinder Morgan Energy Partners’ two New Jersey facilities      offer viable alternatives for moving petroleum products between the      refineries and terminals throughout the New York Harbor and both are New      York Mercantile Exchange delivery points for gasoline and heating      oil.  Both facilities are connected to the Intra Harbor Transfer      Service, an operation that offers direct outbound pipeline connections      that allow product to be moved from over 20 harbor delivery points to      destinations north and west of New York City. The      Carteret facility is located along the Arthur Kill River just south of New      York City and has a capacity of approximately 7.8 million barrels of      petroleum and petrochemical products.  Since its acquisition of      the terminal in January 2001, Kinder Morgan Energy Partners has added more      than 1.5 million barrels of new storage capacity and completed the      construction of a 16-inch diameter pipeline that connects to the Buckeye      pipeline system, a major products pipeline serving the East      Coast.  In the second quarter of 2009, Kinder Morgan Energy      Partners announced a major expansion to the facility, which will add over      one million barrels of new liquids capacity for a large petroleum      customer.  Kinder Morgan Energy Partners expects the expansion      to come on-line in the first quarter of 2011. Kinder Morgan Energy      Partners’ Carteret facility has two ship docks and four barge      docks.  It is connected to the Colonial, Buckeye, Sun and Harbor      pipeline systems, and the CSX and Norfolk Southern railroads service the      facility. The      Perth Amboy facility is also located along the Arthur Kill River and has a      capacity of approximately 3.5 million barrels of petroleum and      petrochemical products.  The Perth Amboy terminal provides      chemical and petroleum storage and handling, as well as dry-bulk handling      of salt and aggregates.  In addition to providing product      movement via vessel, truck and rail, Perth Amboy has direct access to the      Buckeye and Colonial pipelines. The facility has one ship dock and one      barge dock, and is connected to the CSX and Norfolk Southern      railroads. The      Kinder Morgan Staten Island terminal is located on Staten Island, New      York.  The facility is bounded to the north and west by the      Arthur Kill River and covers approximately 200 acres, of which 120 acres      are used for site operations.  The terminal has a storage      capacity of approximately 3.0 million barrels for gasoline, diesel fuel      and fuel oil.  The facility also maintains and operates an above      ground piping network to transfer petroleum products throughout the      operating portion of the site, and since the acquisition of the terminal      in July 2005, Kinder Morgan Energy Partners has constructed ship and barge      berths at the facility that accommodate tanker    vessels; |
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|   | ▪ | two      liquids terminal facilities in the Chicago area: one facility located in      Argo, Illinois, approximately 14 miles southwest of downtown Chicago and      situated along the Chicago sanitary and ship channel; and the other      located in the Port of Chicago along the Calumet River.  The      Argo facility is a large petroleum product and ethanol blending facility      and a major break bulk facility for large chemical manufacturers and      distributors.  It has approximately 2.7 million barrels of      tankage capacity and three barge docks.  The facility is      connected to the Enterprise and Westshore pipelines, and has a direct      connection to Midway Airport.  The Canadian National railroad      services this facility. |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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|   |   | The      Port of Chicago facility handles a wide variety of liquid chemicals with a      working capacity of approximately 796,000 barrels.  The facility      provides access to a full slate of transportation options, including a      deep water barge/ship berth on Lake Calumet, and offers services including      truck loading and off-loading, iso-container handling and      drumming.  There are two ship docks and four barge docks, and      the facility is served by the Norfolk Southern  railroad; |
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|   | ▪ | the      Port of New Orleans facility, located in Harvey, Louisiana.  The      New Orleans facility handles a variety of liquids products such as      chemicals, vegetable oils, animal fats, alcohols and oil field products,      and also provides ancillary services including drumming, packaging,      warehousing, and cold storage services.  It has approximately      3.0 million barrels of tankage capacity, three ship docks, and one barge      dock.  The Union Pacific railroad provides rail service and the      terminal can be accessed by vessel, barge, tank truck, or rail;      and |
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|   | ▪ | the      Kinder Morgan North 40 terminal, located near Edmonton, Alberta,      Canada.  Kinder Morgan Energy Partners constructed and placed      into service its North 40 terminal, which is a crude oil tank farm that      serves as a premier blending and storage hub for Canadian crude      oil.  The facility has storage for approximately 2.15 million      barrels of crude oil and has access to more than 20 incoming pipelines and      several major outbound systems, including a connection with Kinder Morgan      Energy Partners’ Trans Mountain pipeline system.  The entire      capacity of this terminal is contracted under long-term      contracts. |
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|   | ▪ | the      Vancouver Wharves bulk marine terminal, located at the entrance to the      Port of Vancouver, British Columbia, Canada.  Kinder Morgan      Energy Partners owns certain bulk terminal buildings and equipment and      operates the terminal under a 40-year agreement.  The facility      consists of five vessel berths situated on a 139-acre site, extensive rail      infrastructure, dry-bulk and liquid storage, and material handling      systems, rail track and transloading systems, and a      shiploader.  The terminal can handle over 3.5 million tons of      cargo annually.  In the second quarter of 2009, Kinder Morgan      Energy Partners completed a terminal expansion that brought on-line an      additional 225,000 barrels of liquids capacity.  Vancouver      Wharves has access to three major rail carriers connecting to shippers in      western and central Canada and the U.S. Pacific      Northwest.  Vancouver Wharves offers a variety of inbound,      outbound and value-added services for mineral concentrates, wood products,      agri-products and sulfur; |
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|   | ▪ | approximately      32 petroleum coke or coal terminals Kinder Morgan Energy Partners operates      or owns.  Kinder Morgan Energy Partners is the largest      independent handler of petroleum coke in the U.S., in terms of volume, and      in 2009, it handled approximately 12.9 million tons of petroleum coke, as      compared to approximately 14.8 million tons in 2008.  Petroleum      coke is a by-product of the crude oil refining process and has      characteristics similar to coal.  It is used in domestic utility      and industrial steam generation facilities and by the steel industry in      the manufacture of ferro alloys and carbon and graphite      products.  A portion of the petroleum coke handled is imported      from or exported to foreign markets.  Most of Kinder Morgan      Energy Partners’ customers are large integrated oil companies that choose      to outsource the storage and loading of petroleum coke for a      fee.  All of Kinder Morgan Energy Partners’ petroleum coke      assets are located in the state of Texas, and include facilities at the      Port of Houston, the Port of Beaumont and the TGS Deepwater Terminal      located on the Houston Ship Channel.  These facilities also      provide handling and storage services for a variety of other bulk      materials. In 2009, Kinder Morgan Energy Partners also      handled approximately 27.8 million tons of coal, as compared to      approximately 34.3 million tons of coal handled in 2008.  Coal      continues to be the fuel of choice for electric generation plants,      accounting for more than 50% of U.S. electric generation      feedstock.  Current domestic supplies are predicted to last for      several hundred years and most coal transloaded through Kinder Morgan      Energy Partners’ coal terminals is destined for use in coal-fired electric      generation facilities.  Kinder Morgan Energy Partners’ Cora coal      terminal is a high-speed, rail-to-barge coal transfer and storage facility      located on approximately 480 acres of land along the upper Mississippi      River near Rockwood, Illinois.  The terminal sits on the      mainline of the Union Pacific |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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|   |   | Railroad      and is strategically positioned to receive coal shipments from the western      United States.  The majority of the coal arrives at the terminal      by rail from the Powder River Basin in Wyoming, and the coal is then      transferred out on barges to power plants along the Ohio and Mississippi      rivers, although small quantities are shipped overseas.  The      Cora terminal can receive and dump coal from trains and can load barges at      the same time, has ground capacity to store a total of 1.25 million tons      of coal, and maximum throughput at the terminal is approximately 13      million tons annually.  This coal storage and transfer capacity      provides customers the flexibility to coordinate their supplies of coal      with the demand at power plants. |
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|   |   | The      Grand Rivers, Kentucky terminal is a coal transloading and storage      facility located along the Tennessee River just above the Kentucky      Dam.  The terminal is operated on land under easements with an      initial expiration of July 2014 and has current annual throughput capacity      of approximately 12 million tons with a storage capacity of approximately      one million tons.  The Grand Rivers Terminal provides easy      access to the Ohio-Mississippi River network and the Tennessee-Tombigbee      River system.  The Paducah & Louisville Railroad, a short      line railroad, serves Grand Rivers with connections to seven Class I rail      lines including the Union Pacific, CSX, and Burlington Northern Santa      Fe. |
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|   |   | The      Cora and Grand Rivers terminals handle low sulfur coal originating in      Wyoming, Colorado, and Utah, as well as coal that originates in the mines      of southern Illinois and western Kentucky.  However, since many      shippers, particularly in the East, are using western coal or a mixture of      western coal and other coals as a means of meeting environmental      restrictions, Kinder Morgan Energy Partners anticipates that growth in      volume through the two terminals will be primarily due to increased use of      western low sulfur coal originating in Wyoming, Colorado and      Utah; |
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|   | ▪ | Kinder      Morgan Energy Partners’ approximately 47 ferro alloys terminals located at      strategic locations throughout the United States, which transload and      handle steel, ferro chrome, ferro manganese, ferro silicon, silicon metal      and many other alloys and ores.  Kinder Morgan Energy Partners’      value-added services include canning, drumming, bagging and filling boxes      and supersacks, and its handling methods and integrity eliminates product      degradation and assures accurate inventory control.  Combined,      these facilities handled approximately 15.7 million tons and 30.8 million      tons of ores/metals in 2009 and 2008, respectively.  The 49%      decrease in year-to-year volumes was primarily due to the difficult      economic environment during 2009, and while the operating results of the      metal handling terminals are affected by a number of business-specific      factors, the primary drivers for Kinder Morgan Energy Partners’ ores/metal      volumes are general economic conditions in North America, Europe and      China, and the levels of worldwide steel production and      consumption. |
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|   |   | In      addition to steel handling activities done at the Vancouver Wharves bulk      marine terminal, Kinder Morgan Energy Partners handles numerous types of      steel and bulk commodities at two deepwater port facilities, the      Chesapeake bulk terminal facility, located on Chesapeake Bay in Sparrows      Point, Maryland, and the Berkley facility, located in Huger, South      Carolina.  The Chesapeake terminal offers stevedoring services,      storage, and rail, ground, or water transportation for products such as      coal, petroleum coke, iron and steel slag, and other mineral      products.  It offers both warehouse storage and approximately      100 acres of open storage.  The facility is serviced by the      Norfolk Southern and CSX railroads and offers storage services to and from      vessels, barges, tank trucks or rail cars.  The Berkley facility      provides dedicated storage to Nucor Corporation (a large domestic steel      company with significant operations in the Southeast region of the U.S.)      for finished steel, scrap, hot briquetted iron, and direct reduced iron      along the Cooper River.  The facility also provides scrap      handling and processing services and can unload barges, vessels and      railcars. |
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|   |   | The      Kinder Morgan Texas terminal is a 30-acre site, which provides 50,000      square feet of climate-controlled, covered storage, and provides another      100,000 square feet of leased covered storage located on the Houston Ship      Channel.  The facility can handle coils, pipe, and other      finished steel products.  The facility also has 55 rail spots      and performs rail loading and unloading  services. |
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|   |   | Kinder      Morgan Energy Partners’ river steel facilities include facilities on the      Mississippi, Ohio, Tennessee, Missouri, and Arkansas rivers, and on other      smaller inland waterways.  The Hickman and Barfield terminals      are located near Blytheville, Arkansas and provide storage and handling      services on the Mississippi river, primarily for Nucor.  Both      facilities can service barge, truck, and perform rail loading and      unloading.  Kinder Morgan Energy Partners’ Industry facility is      located along the Ohio River in Industry, Pennsylvania, and it provides      435,000 square feet of covered warehouse space and 200,000 square feet of      open storage.  This facility primarily handles ferro alloy      products and provides value-added ancillary services such as screening,      processing, and packaging of alloy products.  The Decatur,      Alabama facility is located along the Tennessee River and provides      dedicated storage to Nucor as well as scrap handling and charge bucket      handling. |
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|   |   | In      September 2007, Kinder Morgan Energy Partners acquired five steel handling      facilities from Marine Terminals, Inc. (including those described above      that are primarily dedicated to servicing Nucor’s steel plants), and as      part of the asset purchase, Kinder Morgan Energy Partners entered into a      service contract with Nucor.  It is estimated    that |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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|   |   | approximately      95% of the projected revenues and profits of these five facilities will be      generated from this contract with Nucor;and |
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|   | ▪ | the      Pier IX terminal located on a 30-acre storage site in Newport News,      Virginia.  The terminal has the capacity to transload      approximately 12 million tons of bulk products per year, and for coal,      offers storage capacity of 1.4 million tons, blending services and rail to      storage or direct transfer to ship.  For other dry bulk      products, the terminal offers ship to storage to rail or      truck.  The Pier IX Terminal exports coal to foreign markets,      serves power plants on the eastern seaboard of the United States, and      imports cement pursuant to a long-term contract.  The Pier IX      Terminal is served by the CSX Railroad, which transports coal from central      Appalachian and other eastern coal basins.  Cement imported to      the Pier IX Terminal primarily originates in  Europe; |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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|   | · | the      Energy Policy Act of 2005 (2005), which, among other things, amended the      Natural Gas Act to prohibit market manipulation by any entity, directed      the FERC to facilitate market transparency in the market for sale or      transportation of physical natural gas in interstate commerce, and      significantly increased the penalties for violations of the Natural Gas      Act, the Natural Gas Policy Act of 1978, or FERC rules, regulations or      orders thereunder; |
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|   | · | Order      No. 436 (1985) which required open-access, nondiscriminatory      transportation of natural gas; |
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|   | · | Order      No. 497 (1988) which set forth new standards and guidelines imposing      certain constraints on the interaction between interstate natural gas      pipelines and their marketing affiliates and imposing certain disclosure      requirements regarding thatinteraction; |
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|   | · | Order      No. 636 (1992) which required interstate natural gas pipelines that      perform open-access transportation under blanket certificates to      “unbundle” or separate their traditional merchant sales services from      their transportation and storage services and to provide comparable      transportation and storage services with respect to all natural gas      supplies. Natural gas pipelines must now separately      state the applicable rates for each unbundled service they provide (i.e.,      for the natural gas commodity, transportation and      storage).  Order No. 636 contains a number of procedures      designed to increase competition in the interstate natural gas industry,      including (i) requiring the unbundling of sales services from other      services, (ii) permitting holders of firm capacity on interstate natural      gas pipelines to release all or a part of their capacity for resale by the      pipeline and (iii) providing for the issuance of blanket sales      certificates to interstatepipelines |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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|   | · | Order      No. 717 (2008 and 2009) which revised the FERC standards of conduct for      natural gas and electric transmission providers by eliminating Order No.      2004’s concept of energy affiliates and corporate separation in favor of      an employee functional approach as used in Order No. 497. On      November 25, 2003, the FERC issued Order No. 2004, adopting revised      standards of conduct that apply uniformly to interstate natural gas      pipelines and public utilities.  In light of the changing      structure of the energy industry, these standards of conduct govern      relationships between regulated interstate natural gas pipelines and all      of their energy affiliates.  These standards were designed to      (i) eliminate the loophole in the previous regulations that did not cover      an interstate natural gas pipeline’s relationship with energy affiliates      that are not marketers, (ii) prevent interstate natural gas pipelines from      giving an undue preference to any of their energy affiliates and (iii)      ensure that transmission is provided on a nondiscriminatory      basis.  In addition, unlike the prior regulations, these      requirements applied even if the energy affiliate was not a customer of      its affiliated interstate pipeline.  However, on November 17,      2006, the United States Court of Appeals for the District of Columbia      Circuit vacated FERC Order No. 2004 as applied to natural gas pipelines,      and remanded these same orders back to the FERC. On      October 16, 2008, the FERC issued a Final Rule in Order No.      717.  According to the provisions of Order No. 717, a      transmission provider is prohibited from disclosing to a marketing      function employee non-public information about the transmission system or      a transmission customer.  The final rule also retains the      long-standing no-conduit rule, which prohibits a transmission function      provider from disclosing non-public information to marketing function      employees by using a third party conduit.  Additionally, the final      rule requires that a transmission provider provide annual training on the      Standards of Conduct to all transmission function employees, marketing      function employees, officers, directors, supervisory employees, and any      other employees likely to become privy to transmission function      information.  This rule became effective November 26,      2008. On      October 15, 2009, the FERC issued Order No. 717-A, an order on rehearing      and clarification regarding FERC’s Affiliate Rule—Standards of Conduct,      and on November 16, 2009, the FERC issued Order No. 717-B, an order      clarifying what employees should be considered marketing function      employees.  In both orders, the FERC clarified a lengthy list of      issues relating to: the applicability, the definition of transmission      function and transmission function employees, the definition of marketing      function and marketing function employees, the definition of transmission      function information, independent functioning, transparency, training, and      North American Energy Standards Board business practice      standards.  The FERC generally reaffirmed its determinations in      Order No. 717, but granted rehearing on and clarified certain      provisions.  Order Nos. 717-A and 717-B aim to make the      Standards of Conduct clearer and aim to refocus the rules on the areas      where there is the greatest potential for abuse.  The rehearing      and clarification granted in Order No. 717-A are not anticipated to have a      material impact on the operation of our interstate      pipelines. |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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| Items 1 and      2.  Business      and Properties. (continued) | Kinder      Morgan, Inc. Form 10-K |
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| Item      1A.  Risk      Factors. (continued) | Kinder      Morgan, Inc. Form 10-K |
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| Item      1A.  Risk      Factors. (continued) | Kinder      Morgan, Inc. Form 10-K |
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| Item      1A.  Risk      Factors. (continued) | Kinder      Morgan, Inc. Form 10-K |
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| Item      1A.  Risk      Factors. (continued) | Kinder      Morgan, Inc. Form 10-K |
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| Item      1A.  Risk      Factors. (continued) | Kinder      Morgan, Inc. Form 10-K |
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| Item      1A.  Risk      Factors. (continued) | Kinder      Morgan, Inc. Form 10-K |
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| Item      1A.  Risk      Factors. (continued) | Kinder      Morgan, Inc. Form 10-K |
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| Item      1A.  Risk      Factors. (continued) | Kinder      Morgan, Inc. Form 10-K |
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|   | Kinder      Morgan, Inc. Form 10-K |
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|   | Kinder      Morgan, Inc. Form 10-K |
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|   | Item      5.  Market for      Registrant’s Common Equity, Related Stockholder Matters and Issuer      Purchases of EquitySecurities. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                     |   | Successor Company                 |    |   | Predecessor Company                |   |
|------------------------------------------------------------------------------------------|--------|----------------------------------------|---------|--------|-----------------------------------------|--------|
|                                                                                     |   | Year Ended December 31, |    |   | Seven MonthsEndedDecember      31, |   |   | Five MonthsEndedMay      31, |   |   | Year Ended December 31, |   |
|                                                                                     |   | 2009(a)(b)                             |    |   | 2008(a)(b)                              |   |   | 2007(a)(b) |   |   | 2007(b)(c) |   |   | 2006(b)(c) |   |   | 2005(c) |   |
| Income      and Cash Flow Data                                                           |   | (In      millions)                     |    |   | (In      millions)                      |   |
| Revenues                                                                                 |   | $                                      | 7,185.2 |   |                                    | $      | 12,094.8 |   |   | $ | 6,394.7 |   |   | $ | 4,165.1 |   |   | $ | 10,208.6 |   |   | $ | 1,025.6 |   |
| Operating      income (loss) (d)(e)                                                      |   | $                                      | 1,407.2 |   |                                    | $      | (2,472.1 | ) |   | $ | 1,042.8 |   |   | $ | 204.8 |   |   | $ | 1,745.2 |   |   | $ | 381.3 |   |
| Earnings      from equity investments                                                    |   | $                                      | 221.9   |   |                                    | $      | 201.1 |   |   | $ | 56.8 |   |   | $ | 40.7 |   |   | $ | 104.2 |   |   | $ | 620.7 |   |
| Income      (loss) from continuing operations                                            |   | $                                      | 773.8   |   |                                    | $      | (3,202.3 | ) |   | $ | 286.1 |   |   | $ | (142.0 | ) |   | $ | 974.6 |   |   | $ | 564.7 |   |
| Income (loss) from discontinued operations,      net of tax (f) |   | $                                      | 0.3     |   |                                    | $      | (0.9 | ) |   | $ | (1.5 | ) |   | $ | 298.6 |   |   | $ | (528.5 | ) |   | $ | 40.4 |   |
| Net      income (loss)                                                                   |   | $                                      | 774.1   |   |                                    | $      | (3,203.2 | ) |   | $ | 284.6 |   |   | $ | 156.6 |   |   | $ | 446.1 |   |   | $ | 605.1 |   |
| Net      income attributable to noncontrolling interests (g)                        |   | $                                      | 278.1   |   |                                    | $      | 396.1 |   |   | $ | 37.6 |   |   | $ | 90.7 |   |   | $ | 374.2 |   |   | $ | 50.5 |   |
| Net      income (loss) attributable to Kinder Morgan, Inc.’s      stockholder      |   | $                                      | 496.0   |   |                                    | $      | (3,599.3 | ) |   | $ | 247.0 |   |   | $ | 65.9 |   |   | $ | 71.9 |   |   | $ | 554.6 |   |
| Capital      expenditures (h)                                                            |   | $                                      | 1,324.3 |   |                                    | $      | 2,545.3 |   |   | $ | 1,287.0 |   |   | $ | 652.8 |   |   | $ | 1,375.6 |   |   | $ | 134.1 |   |

|                              |   | Successor Company            |     |   | Predecessor      Company          |   |
|-----------------------------------|--------|-----------------------------------|----------|--------|-----------------------------------|--------|
|                              |   | As of December 31, |     |   | As of December 31, |   |
|                              |   | 2009                              |     |   | 2008                              |   |   |   | 2007(a) |   |   |   | 2006(b) |   |   |   | 2005(c) |  |
| Balance      Sheet Data           |   | (In      millions)                |     |   | (In      millions)                |   |
| Net property, plant and equipment |   | $                                 | 16,803.5 |   |                              | $      | 16,109.8 |   |   | $ | 14,803.9 |   |   | $ | 18,839.6 |   |   | $ | 9,545.6 |   |
| Total assets                      |   | $                                 | 27,586.3 |   |                              | $      | 25,444.9 |   |   | $ | 36,101.0 |   |   | $ | 26,795.6 |   |   | $ | 17,451.6 |   |
| Long-term debt(i)                 |   | $                                 | 12,879.7 |   |                              | $      | 11,155.8 |   |   | $ | 15,097.7 |   |   | $ | 11,014.4 |   |   | $ | 6,677.6 |   |

| (a) | Includes      significant impacts resulting from the Going Private transaction. See Note      2 of the accompanying Notes to Consolidated Financial Statements for      additional information.                                                                                                                                                                              |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | Effective      January 1, 2006, the accounts, balances and results of operations of      Kinder Morgan Energy Partners were consolidated into our financial      statements and we ceased applying the equity method of accounting for our      investments in Kinder Morgan Energy Partners. See Note 2 of the      accompanying Notes to Consolidated FinancialStatements. |
| (c) | Reflects      the acquisition of Terasen Inc. on November 30, 2005.                                                                                                                                                                                                                                                                                                          |
| (d) | Includes      non-cash goodwill charges of $4,033.3 million in the year ended December      31, 2008.                                                                                                                                                                                                                                                                        |
| (e) | Includes      a goodwill impairment charge of $377.1 million in the five months ended      May 31, 2007 relating to Kinder Morgan Energy Partners’ acquisition of      Trans Mountain pipeline from us on April 30, 2007. See Note 7 of the      accompanying Notes to Consolidated FinancialStatements.                                                               |
| (f) | Includes      a goodwill impairment charge of $650.5 million in 2006 to reduce the      carrying value of Terasen Inc.                                                                                                                                                                                                                                                       |
| (g) | Includes      application of new accounting policies for noncontrolling interests adopted in 2009      and applied to all years presented. See Note 2 of the accompanying Notes      to Consolidated Financial Statements.                                                                                                                                              |
| (h) | Capital      expenditures shown are for continuing operations only.                                                                                                                                                                                                                                                                                                          |
| (i) | Excludes      value of interest rate swaps.  Increases to long-term debt for      value of interest rate swaps totaled $361.0 million, $971.0 million,      $199.7 million, $46.4 million and $51.8 million as of December 31, 2009,      2008, 2007, 2006 and 2005,respectively.                                                                                  |

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|   | Kinder      Morgan, Inc. Form 10-K |
|--------|------------------------------------|

|   | · | helping      customers by providing energy, bulk commodity and liquids products      transportation, storage and distribution;and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | · | creating      long-term value for ourshareholder. |
|--------|--------|---------------------------------------------------|

|   | · | Products Pipelines–KMP:      the ownership and operation of refined petroleum products pipelines that      deliver gasoline, diesel fuel, jet fuel and natural gas liquids to various      markets, plus the ownership and/or operation of associated product      terminals and petroleum pipeline transmix  facilities; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Natural Gas      Pipelines–KMP: the ownership and operation of major interstate and      intrastate natural gas pipeline and storage systems, plus the ownership      and/or operation of associated natural gas processing and treating      facilities; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | CO2      –KMP: (i)      the production, transportation and marketing of carbon dioxide, referred      to as CO2, to      oil fields that use CO2 to      increase production of oil, (ii) ownership interests in and/or operation      of oil fields in West Texas and (iii) the ownership and operation of a      crude oil pipeline system in WestTexas; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Terminals–KMP: the      ownership and/or operation of liquids and bulk terminal facilities and      rail transloading and materials handling facilities located throughout the      United States and portions ofCanada; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Kinder Morgan      Canada–KMP: (i) the ownership and operation of the Trans Mountain      pipeline system that transports crude oil and refined petroleum products      from Edmonton, Alberta, Canada to marketing terminals and refineries in      British Columbia, Canada and the state of Washington and (ii) the 33 1/3%      interest in the Express crude oil pipeline system, which connects Canadian      and U.S. producers to refineries located in the U.S. Rocky Mountain and      Midwest regions, and the Jet Fuel aviation turbine fuel pipeline that      serves the Vancouver (Canada) International  Airport; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | NGPL PipeCo      LLC—consists of our 20% interest in NGPL PipeCo LLC, the owner of      Natural Gas Pipeline Company of America and certain affiliates,      collectively referred to as Natural Gas Pipeline Company of America or      NGPL, a major interstate natural gas pipeline and storage system, which we      operate.  Prior to February 15, 2008, we owned 100% of NGPL;      and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Power—which consists of      two natural gas-fired electric generation  facilities. |
|--------|--------|-------------------------------------------------------------------------------------------|

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| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

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| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

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| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

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| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

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| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|                                                                                                                                                         |   | Successor      Company       |     |   | PredecessorCompany                      |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|----------|--------|-----------------------------------------|--------|
|                                                                                                                                                         |   | Year      Ended December 31, |     |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEndedMay      31, |   |
|                                                                                                                                                         |   | 2009                         |     |   | 2008                                    |   |   | 2007 |   |   | 2007 |   |
|                                                                                                                                                         |   | (In      millions)           |     |   | (In      millions)                      |   |
| Segment      earnings (loss) before depreciation, depletion and amortization      expense and amortization of excess cost of equity      investments(a) |   |                         |     |   |                                    |   |   |   |   |   |   |   |
| Products      Pipelines–KMP(b)                                                                                                                         |   | $                            | 584.0    |   |                                    | $      | (722.0 | ) |   | $ | 162.5 |   |   | $ | 224.4 |   |
| Natural      Gas Pipelines–KMP(c)                                                                                                                      |   |                         | 788.7    |   |                                    |   | (1,344.3 | ) |   |   | 373.3 |   |   |   | 228.5 |   |
| CO2–KMP(d)                                                                                                                                             |   |                         | 878.5    |   |                                    |   | 896.1 |   |   |   | 433.0 |   |   |   | 210.0 |   |
| Terminals–KMP(e)                                                                                                                                       |   |                         | 596.4    |   |                                    |   | (156.5 | ) |   |   | 243.7 |   |   |   | 172.3 |   |
| Kinder      Morgan Canada–KMP(f)                                                                                                                       |   |                         | 154.5    |   |                                    |   | 152.0 |   |   |   | 58.8 |   |   |   | (332.0 | ) |
| NGPL      PipeCo LLC(g)                                                                                                                                      |   |                         | 42.5     |   |                                    |   | 129.8 |   |   |   | 422.8 |   |   |   | 267.4 |   |
| Power                                                                                                                                                        |   |                         | 4.8      |   |                                    |   | 5.7 |   |   |   | 13.4 |   |   |   | 8.9 |   |
| Segment      earnings (loss) before depreciation, depletion and amortization expense      and amortization of excess cost of equity investments              |   |                         | 3,049.4  |   |                                    |   | (1,039.2 | ) |   |   | 1,707.5 |   |   |   | 779.5 |   |
| Depreciation,      depletion and amortization expense                                                                                                        |   |                         | (1,070.2 | )      |                                    |   | (918.4 | ) |   |   | (472.3 | ) |   |   | (261.0 | ) |
| Amortization      of excess cost of equity investments                                                                                                       |   |                         | (5.8     | )      |                                    |   | (5.7 | ) |   |   | (3.4 | ) |   |   | (2.4 | ) |
| NGPL      PipeCo LLC fixed fee revenue(h)                                                                                                                    |   |                         | 45.8     |   |                                    |   | 39.0 |   |   |   | - |   |   |   | - |   |
| General      and administrative expenses(i)                                                                                                                  |   |                         | (373.0   | )      |                                    |   | (352.5 | ) |   |   | (175.6 | ) |   |   | (283.6 | ) |
| Unallocable      interest and other, net(j)                                                                                                                  |   |                         | (583.7   | )      |                                    |   | (623.6 | ) |   |   | (586.7 | ) |   |   | (254.6 | ) |
| Income      (loss) from continuing operations before income taxes                                                                                       |   |                         | 1,062.5  |   |                                    |   | (2,900.4 | ) |   |   | 469.5 |   |   |   | (22.1 | ) |
| Unallocable      income tax expense(a)                                                                                                                       |   |                         | (288.7   | )      |                                    |   | (301.9 | ) |   |   | (183.4 | ) |   |   | (119.9 | ) |
| Income      (loss) from continuing operations                                                                                                                |   |                         | 773.8    |   |                                    |   | (3,202.3 | ) |   |   | 286.1 |   |   |   | (142.0 | ) |
| Income      (loss) from discontinued operations, net of tax                                                                                        |   |                         | 0.3      |   |                                    |   | (0.9 | ) |   |   | (1.5 | ) |   |   | 298.6 |   |
| Net      (loss) income                                                                                                                                       |   |                         | 774.1    |   |                                    |   | (3,203.2 | ) |   |   | 284.6 |   |   |   | 156.6 |   |
| Net      income attributable to noncontrolling interests                                                                                                     |   |                         | (278.1   | )      |                                    |   | (396.1 | ) |   |   | (37.6 | ) |   |   | (90.7 | ) |
| Net      (loss) income attributable to Kinder Morgan, Inc.                                                                                                   |   | $                            | 496.0    |   |                                    | $      | (3,599.3 | ) |   | $ | 247.0 |   |   | $ | 65.9 |   |

| (a) | Kinder      Morgan Energy Partners’ income taxes expenses for the years ended December      31, 2009 and 2008, seven months ended December 31, 2007 and five months      ended May 31, 2007 were $36.9 million, $2.4 million, $44.0 million and      $15.6 million, respectively, and are included in segment      earnings.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | 2009      amount includes (i) a $23.0 million increase in expense from the amounts      previously reported in Kinder Morgan Energy Partners’ 2009 fourth quarter      earnings release issued on January 20, 2010, associated with adjustments      to long-term receivables for environmental cost recoveries, which is      primarily non-cash in 2009, (ii) an $18.0 million increase in expense      associated with rate case and other legal liability adjustments, (iii) an      $11.5 million increase in expense associated with environmental liability      adjustments, (iv) a $1.7 million increase in income resulting from      unrealized foreign currency gains on long-term debt transactions, (v) a      $0.2 million increase in income from hurricane casualty gains and (vi)      $0.5 million decrease in earnings related to assets sold which had been      revalued as part of the Going Private transaction and recorded in the      application of the purchase method of accounting .  2008 amount      includes (i) a combined $10.0 million decrease in income from the proposed      settlement of certain litigation matters related to Kinder Morgan Energy      Partners Pacific operations’ East Line pipeline and other legal liability      adjustments, (ii) a combined $10.0 million decrease in income associated      with environmental liability adjustments, (iii) a $3.6 million decrease in      income resulting from unrealized foreign currency losses on long-term debt      transactions, (iv) a combined $2.7 million decrease in income resulting      from refined product inventory losses and certain property, plant and      equipment write-offs, (v) a $0.3 million decrease in income related to      hurricane clean-up and repair activities, (vi) non-cash goodwill      impairment adjustments of $1,266.5 million and (vii)  $0.4      million decrease in earnings related to assets sold which had been      revalued as part of the Going Private transaction and recorded in the      application of the purchase method of accounting. |
| (c) | 2009      amount includes (i) a $7.8 million increase in income from hurricane      casualty gains, (ii) a decrease in income of $5.6 million resulting from      unrealized mark to market gains and losses due to the discontinuance of      hedge accounting at Casper Douglas, (iii) a $0.1 million increase in      expense from the amounts previously reported in Kinder Morgan Energy      Partners’ 2009 fourth quarter earnings release issued on January 20, 2010,      associated with adjustments to long-term receivables for environmental      cost recoveries and (iv) a                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

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| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|   | combined      $0.9 million decrease in earnings related sales and valuation adjustments      of assets which had been revalued as part of the Going Private transaction      and recorded in the application of the purchase method of      accounting.  2008 amount includes (i) a combined $5.6 million      increase in income resulting from unrealized mark to market gains and      losses due to the discontinuance of hedge accounting at Casper Douglas,      (ii) a $0.5 million decrease in expense associated with environmental      liability adjustments, (iii) a $5.0 million increase in expense related to      hurricane clean-up and repair activities, (iv) a $0.3 million increase in      expense associated with legal liability adjustments, (v) a non-cash      goodwill impairment adjustments of $2,090.2 million, and (vi) a combined      $1.7 million decrease in earnings related to sales and valuation      adjustments of assets which had been revalued as part of the Going Private      transaction and recorded in the application of the purchase method of      accounting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d)    | 2009      amount includes (i) a $13.5 million unrealized loss on derivative      contracts used to hedge forecasted crude oil sales and (ii) increases in      earnings resulting from valuation adjustments of $95.6 million related to      derivative contracts in place at the time of the Going Private transaction      and recorded in the application of the purchase method of      accounting.  2008 amount includes (i) a $0.3 million increase in      expense associated with environmental liability adjustments and (ii)      increases in earnings resulting from valuation adjustments of $136.2      million related to derivative contracts in place at the time of the Going      Private transaction and recorded in the application of the purchase method      of accounting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (e)    | 2009      amount includes (i) a combined $24.0 million increase in income from      hurricane and fire casualty gains and clean-up and repair activities, (ii)      a $0.5 million decrease in expense associated with legal liability      adjustments related to a litigation matter involving the Staten Island      liquids terminal, (iii) a $0.9 million increase in expense associated with      environmental liability adjustments, (iv) a $0.7 million increase in      expense from the amounts previously reported in Kinder Morgan Energy      Partners’ 2009 fourth quarter earnings release issued on January 20, 2010,      associated with adjustments to long-term receivables for environmental      cost recoveries and (v) a decreases in earnings of $2.6 million related to      assets sold, which had been revalued as part of the Going Private      transaction and recorded in the application of the purchase method of      accounting.  2008 amount includes (i) a combined $7.2 million      decrease in income related to fire damage and repair activities, (ii) a      combined $5.7 million decrease in income related to hurricane clean-up and      repair activities, (iii) a combined $2.8 million increase in expense from      both the settlement of certain litigation matters related to Kinder Morgan      Energy Partners’ Elizabeth River bulk terminal and Staten Island liquids      terminal, and other legal liability adjustments, (iv) a $0.6 million      decrease in expense associated with environmental liability adjustments,      (v) a non-cash goodwill impairment charge of $676.6 million and (vi) a      decreases in earnings of $3.7 million related to assets sold, which had      been revalued as part of the Going Private transaction and recorded in the      application of the purchase method of accounting. |
| (f)    | 2009      amount includes a $14.9 million increase in expense primarily due to      certain non-cash regulatory accounting adjustments to the carrying amount      of the previously established deferred tax liability, and a $3.7 million      decrease in expense due to a certain non-cash accounting change related to      book tax accruals.  2008 amount includes a $19.3 million      decrease in expense associated with favorable changes in Canadian income      tax rates, and a combined $18.9 million increase in expense due to certain      non-cash regulatory accounting adjustments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (g)    | Effective      February 15, 2008, we sold an 80% ownership interest in NGPL PipeCo LLC.      As a result of the sale, beginning February 15, 2008, we account for our      20% ownership interest in NGPL PipeCo LLC as an equity method      investment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (h)    | General      administration fixed fee charges under an Operations and Reimbursement      Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (i)    | Includes      unallocated litigation and environmental expenses.  2009 amount      includes (i) a $2.3 million increase in expense for certain asset and      business acquisition costs, which under prior accounting standards would      have been capitalized, (ii) a $1.3 million increase in expense for certain      land transfer taxes associated with the April 30, 2007 Trans Mountain      acquisition and (iii) a $2.7 million decrease in expense related to      capitalized overhead costs associated with the 2008 hurricane      season.  2008 amount includes (i) a $0.9 million increase in      expense for certain Express pipeline system acquisition costs, (ii) a $0.4      million increase in expense resulting from the write-off of certain      acquisition costs, which under prior accounting standards would have been      capitalized, (iii) a $0.1 million increase in expense related to hurricane      clean-up and repair activities and (iv) a $2.0 million decrease in expense      due to the adjustment of certain insurance related      liabilities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (j)    | 2009      amount includes a $1.6 million increase in imputed interest expense      related to the January 1, 2007 Cochin Pipeline      acquisition.  2008 amount includes (i) a $7.1 million decrease      in interest expense due to certain non-cash Trans Mountain regulatory      accounting adjustments, (ii) a $2.0 million increase in imputed interest      expense related to the January 1, 2007 Cochin Pipeline acquisition and      (iii) a $0.2 million increase in interest expense related to the proposed      settlement of certain litigation matters related to Kinder Morgan Energy      Partners Pacific operations’ East Linepipeline.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|                                                                                                                                    |   | Successor      Company                          |   |   | PredecessorCompany                              |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|--------|-------------------------------------------------|--------|
|                                                                                                                                    |   | Year      Ended December 31,                    |   |   | Seven      MonthsEndedDecember      31,         |   |   | Five      MonthsEndedMay      31, |   |
|                                                                                                                                    |   | 2009                                            |   |   | 2008                                            |   |   | 2007 |   |   | 2007 |   |
|                                                                                                                                    |   | (In      millions, except operating statistics) |   |   | (In      millions, except operating statistics) |   |
| Revenues(a)                                                                                                                             |   | $                                               | 826.6  |   |                                            | $      | 815.9 |   |   | $ | 471.5 |   |   | $ | 331.8 |   |
| Operating      expenses(b)                                                                                                              |   |                                            | (269.5 | )      |                                            |   | (291.0 | ) |   |   | (320.6 | ) |   |   | (116.4 | ) |
| Other      income (expense)(c)                                                                                                          |   |                                            | (1.1   | )      |                                            |   | (3.0 | ) |   |   | 0.8 |   |   |   | (0.6 | ) |
| Goodwill      impairment(d)                                                                                                             |   |                                            | -      |   |                                            |   | (1,266.5 | ) |   |   | - |   |   |   | - |   |
| Earnings      from equity investments(e)                                                                                                |   |                                            | 18.7   |   |                                            |   | 15.7 |   |   |   | 11.5 |   |   |   | 12.4 |   |
| Interest      income and Other, net(f)                                                                                                  |   |                                            | 12.4   |   |                                            |   | 2.0 |   |   |   | 4.7 |   |   |   | 4.7 |   |
| Income      tax benefit (expense)(g)                                                                                                    |   |                                            | (3.1   | )      |                                            |   | 4.9 |   |   |   | (5.4 | ) |   |   | (7.5 | ) |
| Earnings      (loss) before depreciation, depletion and amortization expense and      amortization of excess cost of equity investments |   | $                                               | 584.0  |   |                                            | $      | (722.0 | ) |   | $ | 162.5 |   |   | $ | 224.4 |   |
|                                                                                                                                    |   |                                            |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Gasoline      (MMBbl) (h)                                                                                                               |   |                                            | 400.1  |   |                                            |   | 398.4 |   |   |   | 252.7 |   |   |   | 182.8 |   |
| Diesel      fuel (MMBbl)                                                                                                                |   |                                            | 143.2  |   |                                            |   | 157.9 |   |   |   | 97.5 |   |   |   | 66.6 |   |
| Jet      fuel (MMBbl)                                                                                                                   |   |                                            | 111.4  |   |                                            |   | 117.3 |   |   |   | 73.8 |   |   |   | 51.3 |   |
| Total      refined product volumes (MMBbl)                                                                                              |   |                                            | 654.7  |   |                                            |   | 673.6 |   |   |   | 424.0 |   |   |   | 300.7 |   |
| Natural      gas liquids (MMBbl)                                                                                                        |   |                                            | 26.5   |   |                                            |   | 27.3 |   |   |   | 16.7 |   |   |   | 13.7 |   |
| Total      delivery volumes (MMBbl)(i)                                                                                                  |   |                                            | 681.2  |   |                                            |   | 700.9 |   |   |   | 440.7 |   |   |   | 314.4 |   |

| (a) | 2008      amount includes a $5.1 million decrease in revenues from the proposed      settlement of certain litigation matters related to the Pacific      operations’ East Line pipeline.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | 2009      and 2008 amounts include increases in expense of $11.5 million and $9.2      million, respectively, associated with environmental liability      adjustments.  2009 amount also includes (i) a $23.0 million      increase in expense from the amounts previously reported in Kinder Morgan      Energy Partners’ 2009 fourth quarter earnings release issued on January      20, 2010, associated with adjustments to long-term receivables for      environmental cost recoveries, which is primarily non-cash in 2009 and      (ii) an $18.0 million increase in expense associated with rate case and      other legal liability adjustments. 2008 amount also includes a combined      $5.0 million increase in expense from the proposed settlement of certain      litigation matters related to the Pacific operations’ East Line pipeline      and other legal liability adjustments, a $0.5 million increase in expense      resulting from refined product inventory losses, and a $0.2 million      increase in expense related to hurricane clean-up and repair      activities. |
| (c) | 2009      amount includes a gain of $0.2 million from hurricane casualty      indemnifications.  2008 amount includes a $2.2 million decrease      in income resulting from certain property, plant and equipment      write-offs.  Also, 2009 and 2008 amounts include $0.5 million      and $0.4 million, respectively, of decreases in earnings related to assets      sold which had been revalued as part of the Going Private transaction and      recorded in the application of the purchase method of      accounting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (d) | 2008      includes non-cash goodwill impairment adjustments of $1,266.5      million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (e) | 2008      amount includes an expense of $1.3 million associated with the portion of      environmental liability adjustments on Plantation Pipe Line Company,      and an expense of $0.1 million reflecting Kinder Morgan Energy Partners’      portion of Plantation Pipe Line Company’s expenses related to hurricane      clean-up and repair activities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| (f) | 2009      and 2008 amounts include a $1.7 million increase in income and a $3.6      million decrease in income, respectively, resulting from unrealized      foreign currency gains and losses on long-term debt      transactions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (g) | 2008      amount includes a $0.5 million decrease in expense reflecting the tax      effect (savings) on a proportionate share of environmental expenses      incurred by Plantation Pipe Line Company and described in footnote (e),      and a $0.1 million decrease in expense reflecting the tax effect (savings)      on the incremental legal expenses described in footnote    (b).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (h) | Years      ended December 31, 2009 and 2008, seven months ended December 31, 2007 and      five months ended May 31, 2007 volumes include ethanol volumes of 23.1      million barrels, 18.7 million barrels, 7.0 million barrels and 4.8 million      barrels, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (i) | Includes      Pacific, Plantation, Calnev, Central Florida, Cochin, and Cypress pipeline      volumes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|                                     |   | EBDAIncrease/(Decrease)                |   |   | RevenuesIncrease/(Decrease) |   |
|------------------------------------------|--------|----------------------------------------|--------|--------|-----------------------------|--------|
|                                     |   | (In      millions, except percentages) |   |
| Pacific      operations                  |   | $                                      | 21.2   |   |                        |   | 8 | % |   | $ | 4.2 |   |   |   | 1 | % |
| West      Coast Terminals                |   |                                   | 13.4   |   |                        |   | 25 | % |   |   | 12.8 |   |   |   | 16 | % |
| Central      Florida Pipeline            |   |                                   | 9.2    |   |                        |   | 22 | % |   |   | 10.7 |   |   |   | 20 | % |
| Transmix      operations                 |   |                                   | 7.7    |   |                        |   | 26 | % |   |   | 6.2 |   |   |   | 15 | % |
| Plantation      Pipeline                 |   |                                   | 3.8    |   |                        |   | 10 | % |   |   | (24.9 | ) |   |   | (57 | )      % |
| Calnev      Pipeline                     |   |                                   | 3.3    |   |                        |   | 6 | % |   |   | (0.2 | ) |   |   | - |   |
| All      others (including eliminations) |   |                                   | 5.0    |   |                        |   | 5 | % |   |   | (3.2 | ) |   |   | (2 | )      % |
| Total      Products Pipelines–KMP  |   | $                                      | 63.6   |   |                        |   | 11 | % |   | $ | 5.6 |   |   |   | 1 | % |

|   | ▪ | a      $21.2 million (8%) increase in earnings from the Pacific      operations—consisting of an $18.8 million decrease in combined operating      expenses, a $4.2 million increase in total revenues, and a $1.8 million      decrease in other operating and non-operating income items, relative to      2008. The decrease in the Pacific operations’      operating expenses in 2009 versus 2008 was primarily due to the following:      (i) overall cost reductions (due in part to a 4% decrease in overall      mainline delivery volumes) and delays in certain non-critical spending,      (ii) lower fuel and power, and outside services expenses, (iii) higher      product gains, (iv) lower right-of-way and environmental expenses and (v)      lower legal expenses (due in part to incremental expenses associated with      certain litigation settlements reached in 2008).  The      year-over-year increase in revenues was driven by higher delivery revenues      to U.S. military customers, due to military tender increases in 2009,      annual tariff rate increases which positively impacted the California      products delivery revenues, and higher terminal revenues, primarily      related to incremental ethanol handling  services; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a      $13.4 million (25%) increase in earnings from the West Coast terminal      operations—largely revenue related, driven by higher revenues from the      combined Carson/Los Angeles Harbor terminal system and by incremental      returns from the completion of a number of capital expansion projects that      modified and upgraded terminal infrastructure since the end of last      year.  Revenues at the Carson/Los Angeles terminal complex      increased $8.8 million in 2009 versus 2008, due mainly to both increased      warehouse charges (escalated warehousing contract rates resulting from      customer contract revisions made since the end of 2008) and to new      customers (including incremental terminaling for U.S. defense fuel      services).  Revenues from the remaining West Coast facilities      increased $4.0 million in 2009 versus 2008, due mostly to additional      throughput and storage services associated with renewable fuels (both      ethanol and biodiesel), and partly to incremental revenues of $0.8 million      from the terminals’ Portland, Oregon Airport pipeline, which was acquired      on July 31, 2009; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a      $9.2 million (22%) increase in earnings from the Central Florida      Pipeline—driven by incremental ethanol revenues and higher refined      products delivery revenues, when compared to 2008.  The increase      from ethanol handling resulted from completed capital expansion projects      that provided ethanol storage and terminal service beginning in mid-April      2008 at the Tampa and Orlando terminals, and the increase in pipeline      delivery revenues was driven by higher average transportation rates that      reflect two separate mid-year tariff rate increases that became effective      July 1, 2008 and 2009; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a      $7.7 million (26%) increase in earnings from the transmix      operations—mainly due to a combined $8.0 million increase in revenues in      2009, associated with certain true-ups related to transmix settlement      gains; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a      $3.8 million (10%) increase in earnings from the approximate 51% equity      ownership in the Plantation Pipe Line Company.  Plantation’s net      income increased as a result of higher pipeline transportation revenues      (due to both higher volumes and average tariffs) and incremental other      income in 2009 from insurance reimbursements related to the settlement of      certain previous environmentalmatters. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|   |   | The      decrease in revenues associated with the investment in Plantation in 2009      compared to 2008 was mainly due to a restructuring of the Plantation      operating agreement between ExxonMobil and Kinder Morgan Energy      Partners.  On January 1, 2009, both parties agreed to reduce the      fixed operating fees Kinder Morgan Energy Partners earns from operating      the pipeline and to charge pipeline operating expenses directly to      Plantation, resulting in a minimal impact to the      earnings.  Accordingly, the $24.9 million reduction in the fee      revenues in 2009 was offset by a corresponding decrease in the operating      expenses of $26.9 million; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a      $3.3 million (6%) increase in earnings from the Calnev Pipeline—driven by      a $2.9 million reduction in combined fuel and power expenses in 2009      versus 2008.  The drop in fuel and power expenses was due      primarily to an overall 8% decrease in refined products delivery volumes,      chiefly due to lower dieselvolumes. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                  |   | SuccessorCompany                            |   |   | PredecessorCompany                          |   |
|---------------------------------------|--------|---------------------------------------------|--------|--------|---------------------------------------------|--------|
|                                  |   | Seven MonthsEndedDecember 31,2007 |   |   | Five MonthsEndedMay 31, 2007 |   |
|                                  |   | (In      millions)                          |   |   | (In      millions)                          |   |
| Pacific      operations               |   | $                                           | (10.3  | )      |                                        | $      | 105.1 |   |
| Calnev      Pipeline                  |   |                                        | 27.5   |   |                                        |   | 20.1 |   |
| West      Coast Terminals             |   |                                        | 24.3   |   |                                        |   | 19.3 |   |
| Plantation      Pipeline              |   |                                        | 22.2   |   |                                        |   | 18.2 |   |
| Central      Florida Pipeline         |   |                                        | 21.9   |   |                                        |   | 15.3 |   |
| Cochin      Pipeline System           |   |                                        | 30.6   |   |                                        |   | 15.3 |   |
| Southeast      Terminals              |   |                                        | 24.8   |   |                                        |   | 16.6 |   |
| Transmix      operations              |   |                                        | 18.3   |   |                                        |   | 12.4 |   |
| All      others                       |   |                                        | 3.2    |   |                                        |   | 2.1 |   |
| Segment      Earnings Before DD&A |   | $                                           | 162.5  |   |                                        | $      | 224.4 |   |

|                                                                                                                                                                                                                                                                                                                                    |   | SuccessorCompany                            |   |   | PredecessorCompany                          |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|--------|--------|---------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                    |   | Seven MonthsEndedDecember 31,2007 |   |   | Five MonthsEndedMay 31, 2007 |   |
|                                                                                                                                                                                                                                                                                                                                    |   | (In      millions)                          |   |   | (In      millions)                          |   |
| Pacific      operations                                                                                                                                                                                                                                                                                                                 |   | $                                           | 224.4  |   |                                        | $      | 156.0 |   |
| Calnev      Pipeline                                                                                                                                                                                                                                                                                                                    |   |                                        | 41.9   |   |                                        |   | 27.7 |   |
| West      Coast Terminals                                                                                                                                                                                                                                                                                                               |   |                                        | 42.9   |   |                                        |   | 29.1 |   |
| Plantation      Pipeline                                                                                                                                                                                                                                                                                                                |   |                                        | 24.6   |   |                                        |   | 17.6 |   |
| Central      Florida Pipeline                                                                                                                                                                                                                                                                                                           |   |                                        | 27.1   |   |                                        |   | 19.3 |   |
| Cochin      Pipeline System                                                                                                                                                                                                                                                                                                             |   |                                        | 42.6   |   |                                        |   | 32.3 |   |
| Southeast      Terminals                                                                                                                                                                                                                                                                                                                |   |                                        | 38.4   |   |                                        |   | 29.9 |   |
| Transmix      operations                                                                                                                                                                                                                                                                                                                |   |                                        | 25.8   |   |                                        |   | 17.5 |   |
| All      others                                                                                                                                                                                                                                                                                                                         |   |                                        | 3.8    |   |                                        |   | 2.4 |   |
| Segment      Revenues                                                    |   | $                                           | 471.5  |   |                                        | $      | 331.8 |   |

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|                                                                                                                                    |   | Successor      Company                          |     |   | Predecessor      Company                        |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|----------|--------|-------------------------------------------------|--------|
|                                                                                                                                    |   | Year      Ended December 31,                    |     |   | Seven      MonthsEndedDecember      31,         |   |   | Five      MonthsEndedMay      31, |   |
|                                                                                                                                    |   | 2009                                            |     |   | 2008                                            |   |   | 2007 |   |   | 2007 |   |
|                                                                                                                                    |   | (In      millions, except operating statistics) |     |   | (In      millions, except operating statistics) |   |
| Revenues                                                                                                                                |   | $                                               | 3,806.9  |   |                                            | $      | 8,422.0 |   |   | $ | 3,825.9 |   |   | $ | 2,640.6 |   |
| Operating      expenses(a)                                                                                                              |   |                                            | (3,192.7 | )      |                                            |   | (7,803.3 | ) |   |   | (3,461.4 | ) |   |   | (2,418.5 | ) |
| Other      income (expense) (b)                                                                                                         |   |                                            | 6.6      |   |                                            |   | 0.2 |   |   |   | 1.9 |   |   |   | (0.1 | ) |
| Goodwill      impairment(c)                                                                                                             |   |                                            | -        |   |                                            |   | (2,090.2 | ) |   |   | - |   |   |   | - |   |
| Earnings      from equity investments                                                                                                   |   |                                            | 141.8    |   |                                            |   | 113.4 |   |   |   | 10.3 |   |   |   | 8.9 |   |
| Interest      income and other, net-income                                                                                              |   |                                            | 31.8     |   |                                            |   | 16.3 |   |   |   | - |   |   |   | 0.2 |   |
| Income      tax expense                                                                                                                 |   |                                            | (5.7     | )      |                                            |   | (2.7 | ) |   |   | (3.4 | ) |   |   | (2.6 | ) |
| Earnings      (loss) before depreciation, depletion and amortization expense and      amortization of excess cost of equity investments |   | $                                               | 788.7    |   |                                            | $      | (1,344.3 | ) |   | $ | 373.3 |   |   | $ | 228.5 |   |
|                                                                                                                                    |   |                                            |     |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Natural      gas transport volumes (Trillion Btus)(d)                                                                                   |   |                                            | 2,284.8  |   |                                            |   | 2,008.6 |   |   |   | 1,067.0 |   |   |   | 645.6 |   |
| Natural      gas sales volumes (Trillion Btus)(e)                                                                                       |   |                                            | 794.5    |   |                                            |   | 866.9 |   |   |   | 519.7 |   |   |   | 345.8 |   |

| (a) | 2009      and 2008 amounts include a $5.6 million decrease in income and a $5.6      million increase in income, respectively, resulting from unrealized mark      to market gains and losses due to the discontinuance of hedge accounting      at Casper Douglas.  Beginning in the second quarter of 2008, the      Casper and Douglas gas processing operations discontinued hedge      accounting.  2009 amount also includes a $0.1 million increase      in expense from the amounts previously reported in Kinder Morgan Energy      Partners’ 2009 fourth quarter earnings release issued on January 20, 2010,      associated with adjustments to long-term receivables for environmental      cost recoveries. 2008 amount includes a $5.0 million increase in expense      related to hurricane clean-up and repair activities, a $0.3 million      increase in expense associated with legal liability adjustments, and a      $0.5 million decrease in expense associated with environmental liability      adjustments.  Amounts also include increases in earnings of $0.3      million and $0.8 million for the years ended 2009 and 2008, respectively,      resulting from valuation adjustments related to derivative contracts in      place at the time of the Going Private transaction and recorded in the      application of the purchase method of  accounting. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

| (b) | 2009      amount includes gains of $7.8 million from hurricane casualty      indemnifications.  2009 and 2008 amounts include $1.2 million      and $3.1 million, respectively, in decreased earnings related to assets      sold, and 2008 amount also includes a $0.6 million increase in earnings      related to valuation adjustments of assets.  These assets had      been revalued as part of the Going Private transaction and recorded in the      application of the purchase method of accounting. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c) | 2008      amount include non-cash goodwill impairment adjustments of $2,090.2      million.                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (d) | Includes      Kinder Morgan Interstate Gas Transmission LLC, Trailblazer Pipeline      Company LLC, TransColorado Gas Transmission Company LLC, Rockies Express      Pipeline LLC, Midcontinent Express Pipeline LLC, Kinder Morgan Louisiana      Pipeline LLC and Texas intrastate natural gas pipeline group pipeline      volumes.                                                                                                                                                                                             |
| (e) | Represents      Texas intrastate natural gas pipeline group  volumes.                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

|                                                                 |   | EBDAIncrease/(Decrease)                |   |   | RevenuesIncrease/(Decrease) |   |
|----------------------------------------------------------------------|--------|----------------------------------------|--------|--------|-----------------------------|--------|
|                                                                 |   | (In      millions, except percentages) |   |
| Kinder      Morgan Louisiana Pipeline                                |   | $                                      | 30.2   |   |                        |   | n/a |   |   | $ | 25.3 |   |   |   | n/a |   |
| Midcontinent      Express Pipeline                                   |   |                                   | 14.1   |   |                        |   | n/a |   |   |   | - |   |   |   | - |   |
| Rockies      Express Pipeline                                        |   |                                   | 13.2   |   |                        |   | 16 | % |   |   | - |   |   |   | - |   |
| Kinder Morgan Interstate Gas Transmission        |   |                                   | 9.6    |   |                        |   | 8 | % |   |   | (24.6 | ) |   |   | (4 | )      % |
| Kinder      Morgan Gas Treating                                      |   |                                   | 9.4    |   |                        |   | n/a |   |   |   | 14.2 |   |   |   | n/a |   |
| TransColorado      Pipeline                                          |   |                                   | (3.5   | )      |                        |   | (6 | )      % |   |   | (2.6 | ) |   |   | (4 | )      % |
| Texas Intrastate Natural Gas Pipeline Group |   |                                   | (34.0  | )      |                        |   | (9 | )      % |   |   | (4,580.7 | ) |   |   | (57 | )      % |
| All      others                                                      |   |                                   | 1.7    |   |                        |   | 2 | % |   |   | (46.7 | ) |   |   | (25 | )      % |
| Intrasegment      eliminations                                       |   |                                   | -      |   |                        |   | - |   |   |   | - |   |   |   | - |   |
| Total      Natural Gas Pipelines–KMP                           |   | $                                      | 40.7   |   |                        |   | 5 | % |   | $ | (4,615.1 | ) |   |   | (55 | )      % |

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|   | ▪ | a      $9.6 million (8%) increase in earnings from the Kinder Morgan Interstate      Gas Transmission pipeline system (“KMIGT”)— driven by higher operational      gas sales margins, higher firm transportation demand fees (resulting from      both system expansions and incremental ethanol customers) and higher      pipeline fuel recoveries (KMIGT’s operational gas sales are primarily made      possible by its collection of fuel in-kind pursuant to its transportation      tariffs and recovery of storage cushion gas  volumes); |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | incremental      earnings of $9.4 million from Kinder Morgan Gas Treating, L.P., which      acquired the natural gas treating business from Crosstex Energy, L.P. and      Crosstex Energy, Inc. effective October 1, 2009.  The business      consists of multiple natural gas treating plants, predominantly located in      Texas and Louisiana, that are used to remove impurities and liquids from      natural gas in order to meet pipeline quality    specifications; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a      $3.5 million (6%) decrease in earnings from the TransColorado      Pipeline—primarily due to a $2.6 million (4%) drop in natural gas      transportation revenues and partly to increases in both pipeline      remediation expenses and property tax expenses in 2009 compared to      2008.  The decrease in transportation revenues related primarily      to the negative impact caused by the increased transportation service      offered by a competing pipeline in 2009;and |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a      $34.0 million (9%) decrease in earnings from the Texas intrastate natural      gas pipeline group—mainly attributable to (i) lower margins from natural      gas sales, primarily due to lower sales volumes and to higher supply      prices relative to sales prices in 2009.  The increase in supply      prices resulted from a decline in field volumes being replaced with more      expensive supplies from more liquid supply locations in 2009, (ii) lower      natural gas processing margins, due to unfavorable gross processing      spreads as a result of significantly lower average natural gas liquids      prices in 2009 and (iii) higher system operational expenses, due primarily      to higher pipeline integrity expenses relative to last      year.  The overall decreases in earnings were partially offset      by higher year-to-year natural gas storage margins which resulted from      favorable proprietary and fee based storage activities and from the      leasing of additional storage capacity to customers from completed capital      expansion projects. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|                                                                 |   | SuccessorCompany                            |   |   | PredecessorCompany                          |   |
|----------------------------------------------------------------------|--------|---------------------------------------------|--------|--------|---------------------------------------------|--------|
|                                                                 |   | Seven MonthsEndedDecember 31,2007 |   |   | Five MonthsEndedMay 31, 2007 |   |
|                                                                 |   | (In      millions)                          |   |   | (In      millions)                          |   |
| Texas Intrastate Natural Gas Pipeline Group |   | $                                           | 221.1  |   |                                        | $      | 133.0 |   |
| Kinder Morgan Interstate Gas Transmission        |   |                                        | 65.7   |   |                                        |   | 43.1 |   |
| Trailblazer Pipeline                                            |   |                                        | 31.9   |   |                                        |   | 18.1 |   |
| TransColorado Pipeline                                          |   |                                        | 25.7   |   |                                        |   | 17.9 |   |
| Rockies Express Pipeline                                   |   |                                        | (8.3   | )      |                                        |   | (4.3 | ) |
| Casper and Douglas Gas Processing                |   |                                        | 18.0   |   |                                        |   | 7.3 |   |
| All others                                                      |   |                                        | 19.2   |   |                                        |   | 13.4 |   |
| Segment Earnings Before DD&A                      |   | $                                           | 373.3  |   |                                        | $      | 228.5 |   |

|                                                                 |   | SuccessorCompany                            |    |   | PredecessorCompany                          |   |
|----------------------------------------------------------------------|--------|---------------------------------------------|---------|--------|---------------------------------------------|--------|
|                                                                 |   | Seven MonthsEndedDecember 31,2007 |    |   | Five MonthsEndedMay 31, 2007 |   |
|                                                                 |   | (In      millions)                          |    |   | (In      millions)                          |   |
| Texas Intrastate Natural Gas Pipeline Group |   | $                                           | 3,562.0 |   |                                        | $      | 2,492.4 |   |
| Kinder Morgan Interstate Gas Transmission        |   |                                        | 130.7   |   |                                        |   | 70.7 |   |
| Trailblazer Pipeline                                            |   |                                        | 36.4    |   |                                        |   | 22.6 |   |
| TransColorado Pipeline                                          |   |                                        | 30.3    |   |                                        |   | 20.7 |   |
| Casper and Douglas Gas Processing                |   |                                        | 67.1    |   |                                        |   | 34.7 |   |
| All others                                                      |   |                                        | 0.2     |   |                                        |   | - |   |
| Intrasegment eliminations                                       |   |                                        | (0.8    | )      |                                        |   | (0.5 | ) |
| Segment Revenues                                                |   | $                                           | 3,825.9 |   |                                        | $      | 2,640.6 |   |

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|                                                                                                                                  |   | Successor      Company                          |    |   | Predecessor      Company                        |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|---------|--------|-------------------------------------------------|--------|
|                                                                                                                                  |   | Year      Ended December 31,                    |    |   | Seven      MonthsEndedDecember      31,         |   |   | Five      MonthsEndedMay      31, |   |
|                                                                                                                                  |   | 2009                                            |    |   | 2008                                            |   |   | 2007 |   |   | 2007 |   |
|                                                                                                                                  |   | (In      millions, except operating statistics) |    |   | (In      millions, except operating statistics) |   |
| Revenues(a)                                                                                                                           |   | $                                               | 1,131.3 |   |                                            | $      | 1,269.2 |   |   | $ | 605.9 |   |   | $ | 324.2 |   |
| Operating      expenses(b)                                                                                                            |   |                                            | (271.1  | )      |                                            |   | (391.8 | ) |   |   | (182.7 | ) |   |   | (121.5 | ) |
| Earnings      from equity investments                                                                                                 |   |                                            | 22.3    |   |                                            |   | 20.7 |   |   |   | 10.5 |   |   |   | 8.7 |   |
| Other,      net income (expense)                                                                                                      |   |                                            | -       |   |                                            |   | 1.9 |   |   |   | 0.1 |   |   |   | (0.1 | ) |
| Income      tax expense                                                                                                               |   |                                            | (4.0    | )      |                                            |   | (3.9 | ) |   |   | (0.8 | ) |   |   | (1.3 | ) |
| Earnings      before depreciation, depletion and amortization expense and amortization      of excess cost of equity investments |   | $                                               | 878.5   |   |                                            | $      | 896.1 |   |   | $ | 433.0 |   |   | $ | 210.0 |   |
|                                                                                                                                  |   |                                            |    |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Carbon      dioxide delivery volumes (Bcf)(c)                                                                                         |   |                                            | 774.0   |   |                                            |   | 732.1 |   |   |   | 365.0 |   |   |   | 272.3 |   |
| SACROC      oil production (gross)(MBbl/d)(d)                                                                                         |   |                                            | 30.1    |   |                                            |   | 28.0 |   |   |   | 26.5 |   |   |   | 29.1 |   |
| SACROC      oil production (net)(MBbl/d)(e)                                                                                           |   |                                            | 25.1    |   |                                            |   | 23.3 |   |   |   | 22.1 |   |   |   | 24.2 |   |
| Yates      oil production (gross)(MBbl/d)(d)                                                                                          |   |                                            | 26.5    |   |                                            |   | 27.6 |   |   |   | 27.4 |   |   |   | 26.4 |   |
| Yates      oil production (net)(MBbl/d)(e)                                                                                            |   |                                            | 11.8    |   |                                            |   | 12.3 |   |   |   | 12.2 |   |   |   | 11.7 |   |
| Natural      gas liquids sales volumes (net)(MBbl/d)(e)                                                                               |   |                                            | 9.5     |   |                                            |   | 8.4 |   |   |   | 9.5 |   |   |   | 9.7 |   |
| Realized      weighted average oil price per Bbl(f)(g)                                                                                |   | $                                               | 49.55   |   |                                            | $      | 49.42 |   |   | $ | 36.80 |   |   | $ | 35.03 |   |
| Realized      weighted average natural gas liquids price    per Bbl(g)(h)                                                        |   | $                                               | 37.96   |   |                                            | $      | 63.00 |   |   | $ | 58.55 |   |   | $ | 45.04 |   |

| (a) | 2009      amount includes a $13.5 million unrealized loss (from a decrease in      revenues) on derivative contracts used to hedge forecasted crude oil      sales. Also, amounts include increases in segment earnings resulting from      valuation adjustments of $95.6 million and $136.2 million for the years      ended 2009 and 2008, respectively, related to derivative contracts in      place at the time of the Going Private transaction and recorded in the      application of the purchase method of accounting. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | 2008      amount includes increases in expense associated with environmental      liability adjustments of $0.3 million.                                                                                                                                                                                                                                                                                                                                                                                                          |
| (c) | Includes      Cortez, Central Basin, Canyon Reef Carriers, Centerline and Pecos pipeline      volumes.                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (d) | Represents      100% of the production from the field.  Kinder Morgan Energy      Partners owns an approximately 97% working interest in the SACROC unit and      an approximately 50% working interest in the Yatesunit.                                                                                                                                                                                                                                                                                               |
| (e) | Net      to Kinder Morgan Energy Partners after royalties and outside working      interests.                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| (f) | Includes      all Kinder Morgan Energy Partners owned crude oil production      properties.                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (g) | Hedge      gains/losses for crude oil and natural gas liquids are included with crude      oil.                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (h) | Includes      production attributable to leasehold ownership and production attributable      to Kinder Morgan Energy Partners ownership in processing plants and third      party processing agreements.                                                                                                                                                                                                                                                                                                                         |

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|                                     |   | EBDAIncrease/(Decrease)                |   |   | RevenuesIncrease/(Decrease) |   |
|------------------------------------------|--------|----------------------------------------|--------|--------|-----------------------------|--------|
|                                     |   | (In      millions, except percentages) |   |
| Sales      and transportation activities |   | $                                      | (84.4  | )      |                        |   | (28 | )      % |   | $ | (78.2 | ) |   |   | (23 | )      % |
| Oil      and gas producing activities    |   |                                   | 120.6  |   |                        |   | 26 | % |   |   | (44.5 | ) |   |   | (5 | )      % |
| Intrasegment      eliminations           |   |                                   | -      |   |                        |   | - |   |   |   | 38.9 |   |   |   | 46 | % |
| Total      CO2–KMP                 |   | $                                      | 36.2   |   |                        |   | 5 | % |   | $ | (83.8 | ) |   |   | (7 | )      % |

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|                                                  | SuccessorCompany                            |     |    | PredecessorCompany                          |   |
|-------------------------------------------------------|---------------------------------------------|--------------------|--------------|---------------------------------------------|--------|
|                                                  | Seven MonthsEndedDecember 31,2007 |               |         | Five MonthsEndedMay 31, 2007 |   |
|                                                  | (In      millions)                          |               |         | (In      millions)                          |   |
| Sales and transportation activities    |                                        | $                  | 110.4        |                                        |   |   | $ | 67.2 |   |
| Oil and gas production activities |                                        |               | 322.6        |                                        |   |   |   | 142.8 |   |
| Segment Earnings Before DD&A       |                                        | $                  | 433.0        |                                        |   |   | $ | 210.0 |   |

|                                     | Successor      Company                      |     |    | Predecessor      Company                    |   |
|------------------------------------------|---------------------------------------------|--------------------|--------------|---------------------------------------------|--------|
|                                     | Seven MonthsEndedDecember 31,2007 |               |         | Five MonthsEndedMay 31, 2007 |   |
|                                     | (In      millions)                          |               |         | (In      millions)                          |   |
| Sales      and transportation activities |                                        | $                  | 116.1        |                                        |   |   | $ | 71.3 |   |
| Oil      and gas production activities   |                                        |               | 518.7        |                                        |   |   |   | 271.7 |   |
| Intrasegment      eliminations           |                                        |               | (28.9        | )                                           |   |   |   | (18.8 | ) |
| Segment      Revenues                    |                                        | $                  | 605.9        |                                        |   |   | $ | 324.2 |   |

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|                                                                                                                                    |   | Successor      Company                          |    |   | PredecessorCompany                              |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|---------|--------|-------------------------------------------------|--------|
|                                                                                                                                    |   | Year      Ended December 31,                    |    |   | Seven      MonthsEndedDecember      31,         |   |   | Five      MonthsEndedMay      31, |   |
|                                                                                                                                    |   | 2009                                            |    |   | 2008                                            |   |   | 2007 |   |   | 2007 |   |
|                                                                                                                                    |   | (In      millions, except operating statistics) |    |   | (In      millions, except operating statistics) |   |
| Revenues                                                                                                                                |   | $                                               | 1,109.0 |   |                                            | $      | 1,173.6 |   |   | $ | 599.2 |   |   | $ | 364.5 |   |
| Operating      expenses(a)                                                                                                              |   |                                            | (536.8  | )      |                                            |   | (631.8 | ) |   |   | (344.2 | ) |   |   | (192.2 | ) |
| Other      income (expense)(b)                                                                                                          |   |                                            | 25.0    |   |                                            |   | (6.4 | ) |   |   | 3.3 |   |   |   | 3.0 |   |
| Goodwill      impairment(c)                                                                                                             |   |                                            | -       |   |                                            |   | (676.6 | ) |   |   | - |   |   |   | - |   |
| Earnings      from equity investments                                                                                                   |   |                                            | 0.7     |   |                                            |   | 2.7 |   |   |   | 0.6 |   |   |   | - |   |
| Other,      net-income                                                                                                                  |   |                                            | 3.7     |   |                                            |   | 1.7 |   |   |   | 0.7 |   |   |   | 0.3 |   |
| Income      tax expense(d)                                                                                                              |   |                                            | (5.2    | )      |                                            |   | (19.7 | ) |   |   | (15.9 | ) |   |   | (3.3 | ) |
| Earnings      (loss) before depreciation, depletion and amortization expense and      amortization of excess cost of equity investments |   | $                                               | 596.4   |   |                                            | $      | (156.5 | ) |   | $ | 243.7 |   |   | $ | 172.3 |   |
|                                                                                                                                    |   |                                            |    |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Bulk      transload tonnage (MMtons)(e)                                                                                                 |   |                                            | 78.0    |   |                                            |   | 103.0 |   |   |   | 62.5 |   |   |   | 33.7 |   |
| Ethanol      (MMBbl)                                                                                                                    |   |                                            | 32.9    |   |                                            |   | 30.7 |   |   |   | 15.4 |   |   |   | 10.2 |   |
| Liquids      leaseable capacity (MMBbl)                                                                                                 |   |                                            | 56.4    |   |                                            |   | 54.2 |   |   |   | 47.5 |   |   |   | 43.6 |   |
| Liquids      utilization %                                                                                                              |   |                                            | 96.6    | %      |                                            |   | 97.5 | % |   |   | 95.9 | % |   |   | 97.5 | % |

| (a) | 2009      and 2008 amounts include a $0.9 million increase in expense and a $0.6      million decrease in expense, respectively, associated with environmental      liability adjustments.  2009 amount also includes a $0.5 million      decrease in expense associated with legal liability adjustments related to      a litigation matter involving the Staten Island liquids terminal, a $0.3      million decrease in expense related to hurricane clean-up and repair      activities and a $0.7 million increase in expense from the amounts      previously reported in Kinder Morgan Energy Partners’ 2009 fourth quarter      earnings release issued on January 20, 2010, associated with adjustments      to long-term receivables for environmental cost      recoveries.  2008 amount also includes a $5.3 million increase      in expense related to hurricane clean-up and repair activities, a combined      $2.8 million increase in expense from both the settlement of certain      litigation matters related to the Elizabeth River bulk terminal and the      Staten Island liquids terminal, and other legal liability adjustments and      a $1.9 million increase in expense related to fire damage and repair      activities. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | 2009      amount includes gains of $24.6 million from hurricane and fire casualty      indemnifications.  2008 amount includes losses of $5.3 million      from asset write-offs related to fire damage, and losses of $0.8 million      from asset write-offs related to hurricane damage.  2009 and      2008 amounts include decreases of earnings of $2.6 million and $3.7      million, respectively, related to assets sold, which had been revalued as      part of the Going Private transaction and recorded in the application of      the purchase method of accounting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (c) | 2008      amount includes a non-cash goodwill impairment charge of $676.6      million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (d) | 2009      amount includes a $0.9 million increase in expense related to hurricane      and fire casualty gains.  2008 amount includes a decrease in      expense (reflecting tax savings) of $0.4 million related to hurricane      clean-up and repair expenses and casualty losses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (e) | Volumes      for acquired terminals are included for all  periods.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|                                          |   | EBDAIncrease/(Decrease)                |   |   | RevenuesIncrease/(Decrease) |   |
|-----------------------------------------------|--------|----------------------------------------|--------|--------|-----------------------------|--------|
|                                          |   | (In      millions, except percentages) |   |
| Lower      River (Louisiana)                  |   | $                                      | 24.8   |   |                        |   | 106 | % |   | $ | (9.5 | ) |   |   | (9 | )      % |
| Gulf      Coast                               |   |                                   | 16.6   |   |                        |   | 12 | % |   |   | 18.5 |   |   |   | 11 | % |
| West                                          |   |                                   | 10.4   |   |                        |   | 27 | % |   |   | 7.5 |   |   |   | 9 | % |
| Texas      Petcoke                            |   |                                   | 4.1    |   |                        |   | 6 | % |   |   | (10.2 | ) |   |   | (7 | )      % |
| Mid      River                                |   |                                   | (10.2  | )      |                        |   | (35 | )      % |   |   | (32.4 | ) |   |   | (36 | )      % |
| Ohio      Valley                              |   |                                   | (7.7   | )      |                        |   | 36 | % |   |   | (16.9 | ) |   |   | (26 | )      % |
| Materials      Management (rail transloading) |   |                                   | (4.4   | )      |                        |   | (24 | )      % |   |   | (12.8 | ) |   |   | (26 | )      % |
| All      others                               |   |                                   | (1.0   | )      |                        |   | - |   |   |   | (25.7 | ) |   |   | (5 | )      % |
| Intrasegment      eliminations                |   |                                   | -      |   |                        |   | - |   |   |   | 0.8 |   |   |   | 79 | % |
| Total      Terminals - KMP                    |   | $                                      | 32.6   |   |                        |   | 6 | % |   | $ | (80.7 | ) |   |   | (7 | )      % |

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|                                  |               | SuccessorCompany                            |   |               | PredecessorCompany                          |    |
|---------------------------------------|--------------------|---------------------------------------------|--------|--------------------|---------------------------------------------|---------|
|                                  |               | Seven MonthsEndedDecember 31,2007 |   |               | Five MonthsEndedMay 31, 2007 |    |
|                                  |               | (In      millions)                          |   |               | (In      millions)                          |    |
| Gulf      Coast                       |     |  $                                     | 66.7   |     |                              |  $ | 43.3 |     |
| Northeast                             |               |                                        | 35.6   |               |                                        |    | 28.1 |   |
| Texas      Petcoke                    |               |                                        | 30.9   |               |                                        |    | 22.5 |   |
| Mid-Atlantic                          |               |                                        | 24.2   |               |                                        |    | 14.6 |   |
| West                                  |               |                                        | 19.8   |               |                                        |    | 3.8 |   |
| Ferro                                 |               |                                        | 17.2   |               |                                        |    | 5.1 |   |
| Lower      River (Louisiana)          |               |                                        | 14.9   |               |                                        |    | 18.5 |   |
| All      others                       |               |                                        | 34.4   |               |                                        |    | 36.4 |   |
| Segment      Earnings Before DD&A |               | $                                           | 243.7  |               |                                        | $       | 172.3 |   |

|                           |     | SuccessorCompany                            |     |     | PredecessorCompany                          |     |
|--------------------------------|--------------------|---------------------------------------------|--------------------|--------------------|---------------------------------------------|--------------------|
|                           |               | Seven MonthsEndedDecember 31,2007 |               |               | Five MonthsEndedMay 31, 2007 |               |
|                           |               | (In      millions)                          |               |               | (In      millions)                          |               |
| Gulf      Coast                |               |  $                                     | 97.8               |               |                                        | $                  | 64.0 |   |
| Northeast                      |               |                                        | 59.5               |               |                                        |     | 43.2 |   |
| Texas      Petcoke             |               |                                        | 68.5               |               |                                        |               | 43.8 |   |
| Mid-Atlantic                   |               |                                        | 59.0               |               |                                        |               | 38.4 |   |
| West                           |               |                                        | 43.4               |               |                                        |               | 9.5 |   |
| Ferro                          |               |                                        | 45.9               |               |                                        |               | 15.6 |   |
| Lower      River (Louisiana)   |               |                                        | 61.6               |               |                                        |               | 49.6 |   |
| All      others                |               |                                        | 164.4              |               |                                        |               | 101.0 |   |
| Intrasegment      eliminations |               |                                        | (0.9               | )                  |                                        |               | (0.6 | ) |
| Segment      Revenues          |               | $                                           | 599.2              |               |                                        | $                  | 364.5 |   |

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|                                                                                                                                    |   | Successor      Company                          |   |   | PredecessorCompany                              |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|--------|-------------------------------------------------|--------|
|                                                                                                                                    |   | Year      Ended December 31,                    |   |   | Seven      MonthsEndedDecember      31,         |   |   | Five      MonthsEndedMay      31, |   |
|                                                                                                                                    |   | 2009                                            |   |   | 2008                                            |   |   | 2007 |   |   | 2007 |   |
|                                                                                                                                    |   | (In      millions, except operating statistics) |   |   | (In      millions, except operating statistics) |   |
| Revenues                                                                                                                                |   | $                                               | 226.1  |   |                                            | $      | 198.9 |   |   | $ | 100.9 |   |   | $ | 62.0 |   |
| Operating      expenses                                                                                                                 |   |                                            | (72.5  | )      |                                            |   | (68.0 | ) |   |   | (44.3 | ) |   |   | (23.1 | ) |
| Goodwill      impairment(a)                                                                                                             |   |                                            | -      |   |                                            |   | - |   |   |   | - |   |   |   | (377.1 | ) |
| Earnings      from equity investments                                                                                                   |   |                                            | (4.1   | )      |                                            |   | 8.3 |   |   |   | 14.4 |   |   |   | 5.4 |   |
| Interest      income and other, net-income (expense)(b)                                                                                 |   |                                            | 23.9   |   |                                            |   | (6.2 | ) |   |   | 6.3 |   |   |   | 1.7 |   |
| Income      tax expense(c)                                                                                                              |   |                                            | (18.9  | )      |                                            |   | 19.0 |   |   |   | (18.5 | ) |   |   | (0.9 | ) |
| Earnings      (loss) before depreciation, depletion and amortization expense and      amortization of excess cost of equity investments |   | $                                               | 154.5  |   |                                            | $      | 152.0 |   |   | $ | 58.8 |   |   | $ | (332.0 | ) |
|                                                                                                                                    |   |                                            |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Transport      volumes (MMBbl)(d)                                                                                                       |   |                                            | 102.5  |   |                                            |   | 86.7 |   |   |   | 58.0 |   |   |   | 36.4 |   |

| (a) | Amount      for the five months ended May 31, 2007 represents a non-cash goodwill      impairment charge; see Note 7 of the accompanying Notes to Consolidated      Financial Statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | 2008      amount includes a $12.3 million decrease in other non-operating      income, due to certain non-cash Trans Mountain regulatory accounting      adjustments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (c) | 2009      amount includes a $14.9 million increase in expense primarily due to      certain non-cash regulatory accounting adjustments to Trans Mountain’s      carrying amount of the previously established deferred tax liability, and      a $3.7 million decrease in expense due to a certain non-cash accounting      change related to book tax accruals made by the Express pipeline      system.  2008 amount includes a $19.3 million decrease in      expense associated with favorable changes in Canadian income tax rates,      and a $6.6 million increase in expense due to certain non-cash Trans      Mountain regulatory accounting adjustments. |
| (d) | Represents      Trans Mountain pipeline systemvolumes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|                                  |   | Successor      Company       |   |   | Predecessor      Company                |   |
|---------------------------------------|--------|------------------------------|--------|--------|-----------------------------------------|--------|
|                                  |   | Year      Ended December 31, |   |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEnded |   |
|                                  |   | 2009                         |   |   | 2008                                    |   |   | 2007 |   |   | May      31, 2007 |   |
|                                  |   | (In      millions)           |   |   | (In      millions)                      |   |
| Segment      earnings before DD&A |   | $                            | 42.5   |   |                                    | $      | 129.8 |   |   | $ | 422.8 |   |   | $ | 267.4 |   |

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|                                                                                   | Successor      Company                 |   |                                    | PredecessorCompany |   |
|----------------------------------------------------------------------------------------|----------------------------------------|--------|-----------------------------------------|--------------------|--------|
|                                                                                   | Year Ended December 31, |   | Seven MonthsEndedDecember 31, |               |   | Five MonthsEndedMay 31, |   |
|                                                                                   | 2009                                   |   | 2008                                    |               | 2007   |   |   | 2007 |   |
|                                                                                   | (In      millions)                     |   |                                    | (In      millions) |   |
| Revenues(a)                                                                            |                                   | $      | 40.4                                    |               |   | $ | 44.0 |   |   | $ | 40.2 |   |   |   | $ | 19.9 |   |
| Operating expenses and noncontrolling interests(a)                 |                                   |   | (35.6                                   | )                  |   |   | (38.3 | ) |   |   | (34.8 | ) |   |   |   | (16.1 | ) |
| Equity in earnings of Thermo Cogeneration      Partnership(b) |                                   |   | -                                       |               |   |   | - |   |   |   | 8.0 |   |   |   |   | 5.1 |   |
| Segment earnings before DD&A                                        |                                   | $      | 4.8                                     |               |   | $ | 5.7 |   |   | $ | 13.4 |   |   |   | $ | 8.9 |   |

| (a) | Upon      the adoption of Accounting Standards Update No. 2009-17, which amended the      codification’s “Consolidation” topic, on January 1, 2010, Triton Power      operations will no longer be consolidated into our financial statements,      but be treated as an equity investment, resulting in decreases to      revenues, operating expenses and noncontrolling interests with no impact      to segment earnings before DD&A. See Note 18 of the accompanying Notes      to Consolidated Financial Statements for “Recent Accounting      Pronouncements.” |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | This      equity interest was part of the sale effective January 1, 2008 as      discussed above.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Successor      Company       |   |   | PredecessorCompany                      |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|--------|-----------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Year      Ended December 31, |   |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEnded      May 31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2009                         |   |   | 2008                                    |   |   | 2007 |   |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | (In      millions)           |   |   | (In      millions)                      |   |
| Kinder Morgan, Inc. general and administrative expense                                                                                                                                                                                                                                                                                                                                                      |   | $                            | (42.7  | )      |                                    | $      | (54.6 | ) |   | $ | (33.2 | ) |   | $ | (138.6 | ) |
| Kinder Morgan Energy Partners general and administrative      expense                                                                                                                                                                                                                                                                                                                                       |   |                         | (330.3 | )      |                                    |   | (297.9 | ) |   |   | (142.4 | ) |   |   | (136.2 | ) |
| Terasen general and administrative expense                                                                                                                                                                                                                                                                                                                                                                       |   |                         | -      |   |                                    |   | - |   |   |   | - |   |   |   | (8.8 | ) |
| Consolidated general and administrative expense                                                                                                                                                                                                                                                                                                                                                                       |   | $                            | (373.0 | )      |                                    | $      | (352.5 | ) |   | $ | (175.6 | ) |   | $ | (283.6 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                         |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Kinder Morgan, Inc. interest, net                                                               |   | $                            | (164.4 | )      |                                    | $      | (240.1 | ) |   | $ | (357.9 | ) |   | $ | (70.4 | ) |
| Kinder Morgan Energy Partners interest, net                                                                                                                                                                                                                                                                                                                                                                      |   |                         | (409.0 | )      |                                    |   | (388.2 | ) |   |   | (236.4 | ) |   |   | (155.0 | ) |
| Terasen interest, net                                                                                     |   |                         | -      |   |                                    |   | - |   |   |   | - |   |   |   | (24.8 | ) |
| Other, net (a)                                                                                            |   |                         | (10.3  | )      |                                    |   | 4.7 |   |   |   | 7.6 |   |   |   | (4.4 | ) |
| Unallocable interest and other, net                                                                                                                                                                                                                                                                                                                                                                                   |   | $                            | (583.7 | )      |                                    | $      | (623.6 | ) |   | $ | (586.7 | ) |   | $ | (254.6 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                         |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Kinder Morgan Management noncontrolling interests                                                                                                                                                                                                                                                                                                                                                                     |   | $                            | (53.6  | )      |                                    | $      | (80.5 | ) |   | $ | (35.8 | ) |   | $ | (17.1 | ) |
| Kinder Morgan Energy Partners noncontrolling interests                                                                                                                                                                                                                                                                                                                                                           |   |                         | (210.0 | )      |                                    |   | (302.4 | ) |   |   | 7.3 |   |   |   | (75.1 | ) |
| Triton noncontrolling interests                                                                           |   |                         | (11.3  | )      |                                    |   | (13.0 | ) |   |   | (9.0 | ) |   |   | 2.3 |   |
| Other noncontrolling interests                                                                            |   |                         | (3.2   | )      |                                    |   | (0.2 | ) |   |   | (0.1 | ) |   |   | (0.8 | ) |
| Net income attributable to noncontrolling interests(b)                                                                                                                                                                                                                                                                                                                                                           |   | $                            | (278.1 | )      |                                    | $      | (396.1 | ) |   | $ | (37.6 | ) |   | $ | (90.7 | ) |

| (a) | “Other,      net” primarily represents offset to noncontrolling interests and interest      income shown above and included in segment earnings.                                                         |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | 2008      and 2007 periods restated for certain provisions concerning the accounting      and reporting for noncontrolling interests; see Note 2 of the accompanying      Notes to Consolidated FinancialStatements. |

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|   | · | We      have generated $1,587.5 in cash from operations during    2009; |
|--------|--------|-------------------------------------------------------------------------|

|   | · | In      2009, Kinder Morgan Energy Partners has demonstrated its continued access      to the equity market by raising approximately $1,155.6 million in net      proceeds from equity offerings in the aggregate of 22.9 million additional      common units; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Kinder      Morgan Energy Partners has demonstrated substantial flexibility in the      debt market by issuing $2 billion in principal amount of long-term senior      notes in 2009 that generated $1,980.7 million in net proceeds;      and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We      had available credit capacity of approximately $0.8 billion and Kinder      Morgan Energy Partners had available credit capacity of approximately $1.2      billion under existing bank credit facilities as of December 31,      2009. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|                                                                                               |   | At      December 31, 2009 |   |
|----------------------------------------------------------------------------------------------------|--------|---------------------------|--------|
|                                                                                               |   | Short-termDebtOutstanding |   |   | AvailableBorrowingCapacity |   |
|                                                                                               |   | (In      millions)        |   |
| Credit      Facilities                                                                             |   |                      |   |   |   |   |
| Kinder      Morgan, Inc.                                                                           |   |                      |   |   |   |   |
| $1.0      billion, six-year secured revolver, due May 2013                                         |   | $                         | 171.0  |   |   | $ | 758.8 |   |
|                                                                                          |   |                      |   |   |   |   |   |   |
| Kinder      Morgan Energy Partners                                                                 |   |                      |   |   |   |   |   |   |
| $1.85      billion, five-year unsecured revolver, due August      2010(a) |   | $                         | 300.0  |   |   | $ | 1,203.8 |   |

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|                                                      |   | Successor      Company       |     |   | Predecessor      Company                |   |
|-----------------------------------------------------------|--------|------------------------------|----------|--------|-----------------------------------------|--------|
|                                                      |   | Year      Ended December 31, |     |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEndedMay      31, |   |
|                                                      |   | 2009                         |     |   | 2008                                    |   |   | 2007 |   |   | 2007 |   |
|                                                      |   | (In      millions)           |     |   | (In      millions)                      |   |
| Net      Cash Provided by (Used in)                       |   |                         |     |   |                                    |   |   |   |   |   |   |   |
| Operating      activities                                 |   | $                            | 1,587.5  |   |                                    | $      | 1,396.8 |   |   | $ | 1,044.5 |   |   | $ | 603.0 |   |
| Investing      activities                                 |   |                         | (3,477.5 | )      |                                    |   | 3,210.0 |   |   |   | (15,751.1 | ) |   |   | 723.7 |   |
| Financing      activities                                 |   |                         | 1,931.0  |   |                                    |   | (4,628.1 | ) |   |   | 12,956.8 |   |   |   | 440.9 |   |
|                                                      |   |                         |     |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Effect      of Exchange Rate Changes on Cash              |   |                         | 6.0      |   |                                    |   | (8.7 | ) |   |   | (2.8 | ) |   |   | 7.6 |   |
|                                                 |   |                         |     |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Cash      Balance Included in Assets Held for Sale        |   |                         | -        |   |                                    |   | - |   |   |   | (1.1 | ) |   |   | (2.7 | ) |
|                                                 |   |                         |     |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Net      Increase (Decrease) in Cash and Cash Equivalents |   | $                            | 47.0     |   |                                    | $      | (30.0 | ) |   | $ | (1,753.7 | ) |   | $ | 1,772.5 |   |

|   | ▪ | a      $557.6 million increase in cash from overall higher net income, net of      non-cash items; |
|--------|---------|----------------------------------------------------------------------------------------------------|

|   | ▪ | a      $35.4 million increase in cash related to higher distributions received      from equity investments in 2009—chiefly due to incremental distributions      received from Kinder Morgan Energy Partners’ equity investment in Rockies      Express Pipeline LLC.  The additional distributions were mainly      due to the incremental earnings attributable to both the Rockies      Express-East natural gas pipeline segment, which began initial pipeline      service in June 2009, and the Rockies Express-West segment, which began      full operations in May 2008. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | $23.8      million of non cash expense associated with adjustments to long-term      receivables for Kinder Morgan Energy Partners’ environmental cost      recoveries recognized in the fourth quarter of  2009; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a      $379.4 million increase in cash outflows relative to net changes in      working capital items, primarily driven by (i) timing differences that      resulted in lower net cash inflows from the collection and payment of      trade and related party receivables and payables (including collections      and payments on natural gas transportation and exchange imbalance      receivables and payables), (ii) higher payments in 2009 for both the      settlement of certain refined product imbalance liabilities owed to U.S.      military customers of the Products Pipelines–KMP business segment and      (iii) a net decrease in estimated current tax accruals;  and |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a      $46.0 million decrease in cash from settlements related to the early      termination of interest rate swap agreements, primarily attributable to      Kinder Morgan Energy Partners’ January 2009 termination of a      fixed-to-floating interest rate swap agreement having a notional principal      amount of $300 million and a maturity date of March 15, 2031, for which it      received $144.4 million, compared to $194.3 million it received in 2008      for the termination of two fixed-to-variable interest rate swap agreements      having a combined notional principal amount of $700    million. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a      $2,899.3 million cash inflow in 2008 for net cash proceeds received from      the sale of an 80% interest in NGPL PipeCoLLC; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------|

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|   | ▪ | a      $3,106.4 million cash inflow in 2008 for proceeds received from NGPL      PipeCo LLC restricted cash; |
|--------|---------|--------------------------------------------------------------------------------------------------------------|

|   | ▪ | a      $1,685.6 million increase in cash used due to higher contributions to      equity investees in 2009, relative to 2008.  The increase was      primarily driven by incremental contributions to Rockies Express Pipeline      LLC, Midcontinent Express Pipeline LLC, and Fayetteville Express Pipeline      LLC to partially fund their respective Rockies Express, Midcontinent      Express, and Fayetteville Express Pipeline construction and/or      pre-construction costs, and the repayment of senior notes by Rockies      Express Pipeline LLC in August 2009.  As discussed in Note 6 of      the accompanying Consolidated Financial Statements, Kinder Morgan Energy      Partners contributed a combined $2,040.8 million in 2009 compared to      $342.5 million in 2008 to partially fund its proportionate share of these      three pipeline projects; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a      $281.3 million increase in cash used for the acquisition of assets and      investments, when compared to 2008.  The increase was driven by      the $265.3 million Kinder Morgan Energy Partners paid to acquire the      natural gas treating business from Crosstex Energy, L.P. and Crosstex      Energy, Inc. effective October 1, 2009, and the $36.0 million Kinder      Morgan Energy Partners paid to acquire a 40% membership interest in      Endeavor Gathering LLC effective November 1,  2009; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a      $126.7 million net increase in cash used for investments versus proceeds      from margin and restricted deposits in 2009 compared to      2008.  The decrease in cash was primarily due to the return of      margin deposits in 2008, which were posted in a prior period. Margin money      is deposited with counterparties in order to maintain certain energy      commodity hedging positions and are associated largely with our      utilization of derivative contracts to hedge (offset) against the      volatility of energy commodity price risks. These margin deposits must be      posted and maintained daily, and provide financial security to ensure      performance on the hedgingcontracts; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a      $63.2 million decrease in cash received relative to 2008, due to lower net      proceeds received from the sales of investments, property, plant and      equipment, and other net assets (net of salvage and removal      costs).  The decrease in cash sales proceeds was driven      primarily by $63.1 million received for the sale of our interest in three      natural gas-fired power plants in Colorado in the first quarter of      2008; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a      $1,221.0 million decrease in cash used for capital expenditures—largely      due to Kinder Morgan Energy Partners’ higher investment undertaken in 2008      to construct its Kinder Morgan Louisiana Pipeline and to expand its Trans      Mountain crude oil and refined petroleum products pipeline      system; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a      $219.2 million decrease in cash used due to Kinder Morgan Energy Partners’      receipt, in 2009, of the full repayment of a $109.6 million loan it made      in December 2008 to a single customer of its Texas intrastate natural gas      pipeline group; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a      $27.6 million increase in cash  relative to 2008, related to      returns of capital received from equity investments in excess of the      equity investees’ cumulative earnings, primarily consisting of (i) a $22.9      million increase from Kinder Morgan Energy Partners’ equity investments,      described following, and (ii) a $4.7 million increase from our equity      investment in NGPL PipeCo LLC. On      November 13, 2009, Fayetteville Express Pipeline LLC entered into and then      made borrowings under a new $1.1 billion two and one-half year, unsecured      revolving credit facility due May 11, 2012.  Fayetteville      Express Pipeline LLC then made distributions to its two member owners      (Energy Transfer Partners, L.P. and Kinder Morgan Energy Partners) to      reimburse them for prior contributions made to fund its pre-construction      costs for the Fayetteville Express Pipeline, and Kinder Morgan Energy      Partners received returns of capital totaling $112.0      million.  Prior to the establishment of its credit facility,      Fayetteville Express Pipeline LLC funded its pipeline construction costs      with contributions from its member owners. Similarly,      in February 2008, Midcontinent Express Pipeline LLC entered into and then      made borrowings under a new $1.4 billion three-year, unsecured revolving      credit facility due February 28, 2011.  Midcontinent Express      Pipeline LLC then made distributions in excess of cumulative earnings to      its two member owners to reimburse them for prior contributions made to      fund its pipeline construction costs.  Kinder Morgan Energy      Partners’ proportionate share of these distributions was $89.1      million. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a      $6,763.5 million decrease in cash used for overall debt financing      activities, which include issuances and payments of debt and debt issuance      costs.  The year-to-year decrease in cash used was primarily due      to (i) a $5,421.0 million decrease in cash used due to lower net      repayments of senior notes, discussed following; (ii) a $589.1 million      increase in cash due to net commercial paper repayments by Kinder Morgan      Energy Partners in 2008; (iii) a $452.4 million increase in cash from      lower net repayments under our bank credit facility and (iv) a $300.0      million increase in cash from incremental net borrowings under Kinder      Morgan Energy Partners’ bank credit facility in  2009. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|   |   | The      year-to-year increases and decreases in cash inflows from commercial paper      and credit facility borrowings were related in part to Kinder Morgan      Energy Partners’ short-term credit rating downgrade discussed above in      “Credit Ratings and Capital Market Liquidity,” and in part to the      year-to-year changes in working capital items.  The increase in      cash inflows from changes in senior notes outstanding primarily includes      (i) the combined $5,789.3 million of our Going Private debt that was      repaid in 2008 primarily using proceeds from the sale of an 80% interest      in NGPL PipeCo LLC and (ii) the net $1,730.7 million Kinder Morgan Energy      Partners received after issuing and repaying senior notes in 2009      (discussed in Note 8 of the accompanying Notes to Consolidated Financial      Statements) versus the combined $2,080.2 million Kinder Morgan Energy      Partners received from its three public offerings of senior notes in      2008.  Kinder Morgan Energy Partners used the proceeds from its      first two 2008 offerings to reduce borrowings under its commercial paper      program and used the proceeds from the third 2008 debt offering and from      each of the 2009 offerings to reduce the borrowings under its revolving      bank credit facility; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a      $594.1 million increase in cash from noncontrolling interests      contributions primarily related to Kinder Morgan Energy Partners’      issuances totaling approximately 22.9 million common units in 2009      receiving combined net proceeds (after underwriting commissions and      expenses) of $1,155.6 million versus issuances totaling approximately 10.7      million common units in 2008 receiving combined net proceeds (after      underwriting commissions and expenses) of $560.9  million; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | $650.0      million cash used in 2009 to paydividends; |
|--------|---------|--------------------------------------------------------|

|   | ▪ | a      $113.7 million increase in cash used for noncontrolling interests      distributions, primarily due to an increase in Kinder Morgan Energy      Partners’ cash distributions to its common unit owners;  and |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a      $23.0 million decrease in cash inflows from net changes in cash book      overdrafts—resulting from timing differences on checks issued but not yet      presented for payment. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Entity                                                                  |   | InvestmentType   |   | OurOwnershipInterest |   | RemainingInterest(s)Ownership                                     |   | Total      EntityAssets(a) |    | Total      EntityDebt |   | Kinder      Morgan Energy Partners’ContingentShare      ofEntity      Debt(b) |
|-------------------------------------------------------------------------|--------|------------------|--------|----------------------|--------|-------------------------------------------------------------------|--------|----------------------------|---------|-----------------------|--------|-------------------------------------------------------------------------------------|
| Rockies      Express Pipeline LLC(c)                                    |   | LimitedLiability |   | 50%                  |   | ConocoPhillips      and Sempra Energy                             |   | $                          | 6,606.2 |                  |   | $                                                                                   | 2,970.8 | (d) |   | $ | 836.4 |   |
|                                                               |   |             |   |                 |   |                                                              |   |                       |    |                  |   |                                                                                |   |   |   |   |   |   |
| Fayetteville      Express Pipeline LLC(e)                               |   | LimitedLiability |   | 50%                  |   | Energy      Transfer Partners, L.P.                               |   | $                          | 406.1   |                  |   | $                                                                                   | 355.0 |   |   | $ | 177.5 |   |
|                                                               |   |             |   |                 |   |                                                              |   |                       |    |                  |   |                                                                                |   |   |   |   |   |   |
| Cortez      Pipeline Company                                            |   | GeneralPartner   |   | 50%                  |   | (f)                                                               |   | $                          | 76.1    |                  |   | $                                                                                   | 152.8 |   |   | $ | 76.4 | (g) |
|                                                                    |   |             |   |                 |   |                                                              |   |                       |    |                  |   |                                                                                |   |   |   |   |   |   |
| Midcontinent      Express Pipeline LLC(h)                               |   | LimitedLiability |   | 50%                  |   | Energy      Transfer Partners, L.P.                               |   | $                          | 2,227.1 |                  |   | $                                                                                   | 828.3 | (i) |   | $ | 14.8 | (j) |
|                                                               |   |             |   |                 |   |                                                              |   |                       |    |                  |   |                                                                                |   |   |   |   |   |   |
| Nassau      County,Florida      Ocean Highwayand      Port Authority(k) |   | N/A              |   | N/A                  |   | Nassau      County, Florida Ocean Highway and Port Authority |   |                       | N/A     |                  |   |                                                                                | N/A |   |   | $ | 19.8 |   |

| (a) | Principally      property, plant and equipment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | Represents      the portion of the entity’s debt that Kinder Morgan Energy Partners may be      responsible for if the entity cannot satisfy the    obligation.                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (c) | Rockies      Express Pipeline LLC is a limited liability company and the surviving      legal entity from its December 30, 2009 merger with its parent entity      West2East Pipeline LLC.  As of December 31, 2009, the remaining      limited liability member interests in Rockies Express Pipeline LLC are      owned by ConocoPhillips (25%) and Sempra Energy (25%).  Kinder      Morgan Energy Partners owned a 51% ownership interest in Rockies Express      Pipeline LLC from June 30, 2006 until December 1, 2009.                                                          |
| (d) | Amount      includes an aggregate carrying value of $1,298.1 million in fixed rate      senior notes issued by Rockies Express Pipeline LLC in a private offering      in June 2008.  All payments of principal and interest in respect      of these senior notes are the sole obligation of Rockies      Express.  Noteholders have no recourse against Kinder Morgan      Energy Partners or the other member owners of Rockies Express Pipeline LLC      for any failure by Rockies Express to perform or comply with its      obligations pursuant to the notes or the indenture. |
| (e) | Fayetteville      Express Pipeline LLC is a limited liability company and the owner of the      Fayetteville Express Pipeline.                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

| (f)    | The      remaining general partner interests are owned by ExxonMobil Cortez      Pipeline, Inc., an indirect wholly-owned subsidiary of Exxon Mobil      Corporation and Cortez Vickers Pipeline Company, an indirect subsidiary of      M.E. Zuckerman Energy Investors Incorporated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (g)    | Kinder      Morgan Energy Partners is severally liable for its percentage ownership      share (50%) of the Cortez Pipeline Company debt.  As of December      31, 2009, Shell Oil Company shares Kinder Morgan Energy Partners’ several      guaranty obligations jointly and severally for $42.9 million of Cortez’s      debt balance; however, Kinder Morgan Energy Partners is obligated to      indemnify Shell for the liabilities it incurs in connection with such      guaranty.  Accordingly, as of December 31, 2009 Kinder Morgan      Energy Partners has a letter of credit in the amount of $21.4 million      issued by JP Morgan Chase, in order to secure its indemnification      obligations to Shell for 50% of the Cortez debt balance of $42.9      million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Further,      pursuant to a Throughput and Deficiency Agreement, the partners of Cortez      Pipeline Company are required to contribute capital to Cortez in the event      of a cash deficiency.  The agreement contractually supports the      financings of Cortez Capital Corporation, a wholly-owned subsidiary of      Cortez Pipeline Company, by obligating the partners of Cortez Pipeline to      fund cash deficiencies at Cortez Pipeline, including anticipated      deficiencies and cash deficiencies relating to the repayment of principal      and interest on the debt of Cortez Capital Corporation.  The      partners’ respective parent or other companies further severally guarantee      the obligations of the Cortez Pipeline owners under this      agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (h)    | Midcontinent      Express Pipeline LLC is a limited liability company and the owner of the      Midcontinent Express Pipeline.  In January 2008, in conjunction      with the signing of additional binding pipeline transportation      commitments, Midcontinent Express Pipeline LLC and MarkWest Pioneer,      L.L.C. (a subsidiary of MarkWest Energy Partners, L.P.) entered into an      option agreement which provided MarkWest Pioneer, LLC a one-time right to      purchase a 10% ownership interest in Midcontinent Express Pipeline LLC      after the pipeline was fully constructed and placed into      service.  In September 2009, MarkWest Pioneer, LLC declined to      exercise this option.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (i)    | Amount      includes an aggregate carrying value of $798.8 million in fixed rate      senior notes issued by Midcontinent Express Pipeline LLC in a private      offering in September 2009.  All payments of principal and      interest in respect of these senior notes are the sole obligation of      Midcontinent Express.  Noteholders have no recourse against      Kinder Morgan Energy Partners or the other member owners of Midcontinent      Express Pipeline LLC for any failure by Midcontinent Express Pipeline LLC      to perform or comply with its obligations pursuant to the notes or the      indenture.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (j)    | In      addition to Kinder Morgan Energy Partners’ contingent share of entity      debt, there is a letter of credit outstanding to support the construction      of the Midcontinent Express pipeline.  As of December 31, 2009,      this letter of credit, issued by the Royal Bank of Scotland plc, had a      face amount of $33.3 million.  Kinder Morgan Energy Partners’      contingent responsibility with regard to this outstanding letter of credit      was $16.7 million (50% of total face amount).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (k)    | Arose      from Kinder Morgan Energy Partners’ Vopak terminal acquisition in July      2001.  Nassau County, Florida Ocean Highway and Port Authority      is a political subdivision of the state of Florida.  During      1990, Ocean Highway and Port Authority issued its Adjustable Demand      Revenue Bonds in the aggregate principal amount of $38.5 million for the      purpose of constructing certain port improvements located in Fernandino      Beach, Nassau County, Florida.  A letter of credit was issued as      security for the Adjustable Demand Revenue Bonds and was guaranteed by the      parent company of Nassau Terminals LLC, the operator of the port      facilities.  In July 2002, Kinder Morgan Energy Partners      acquired Nassau Terminals LLC and became guarantor under the letter of      credit agreement.  In December 2002, Kinder Morgan Energy      Partners issued a $28 million letter of credit under its credit facilities      and the former letter of credit guarantee was terminated.  As of      December 31, 2009, the face amount of this letter of credit outstanding      under Kinder Morgan Energy Partners’ credit facility was $19.8      million.  Principal payments on the bonds are made on the first      of December each year and reductions are made to the letter of      credit. |

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|                                             |   | Payments      due by period |     |
|--------------------------------------------------|--------|-----------------------------|----------|
|                                             |   | Total                       |     |   | Less      than1      year |   |   | 1-3      years |   |   | 3-5      years |   |   | More      than5      years |   |
|                                             |   | (In      millions)          |     |
| Contractual      obligations                     |   |                        |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Debt      borrowings-principal payments          |   | $                           | 13,715.5 |   |   | $ | 766.8 |   |   | $ | 3,778.4 |   |   | $ | 1,008.8 |   |   | $ | 8,161.5 |   |
|                                             |   |                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      payments(a)                        |   |                        | 10,601.2 |   |   |   | 843.0 |   |   |   | 1,469.3 |   |   |   | 1,210.3 |   |   |   | 7,078.6 |   |
| Lease      obligations(b)                        |   |                        | 238.8    |   |   |   | 43.8 |   |   |   | 67.9 |   |   |   | 44.2 |   |   |   | 82.9 |   |
| Pension      and postretirement welfare plans(c) |   |                        | 324.6    |   |   |   | 27.4 |   |   |   | 57.4 |   |   |   | 60.1 |   |   |   | 179.7 |   |
| Other      obligations(d)                        |   |                        | 11.5     |   |   |   | 6.5 |   |   |   | - |   |   |   | 5.0 |   |   |   | - |   |
| Total                                            |   | $                           | 24,891.6 |   |   | $ | 1,687.5 |   |   | $ | 5,373.0 |   |   | $ | 2,328.4 |   |   | $ | 15,502.7 |   |
|                                             |   |                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      commercial commitments                |   |                        |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Standby      letters of credit(e)                |   | $                           | 438.8    |   |   | $ | 343.2 |   |   | $ | 95.6 |   |   | $ | - |   |   | $ | - |   |
| Capital      expenditures(f)                     |   | $                           | 260.4    |   |   | $ | 260.4 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |

| (a) | Interest      payment obligations exclude adjustments for interest rate swap      agreements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | Represents      commitments pursuant to the terms of operating lease      agreements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (c) | Represents      expected benefit payments from pension and postretirement welfare plans as      of December 31, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (d) | For      the Less than 1 year column only, represents payments due under carbon      dioxide take-or-pay contracts and, for the 3-5 Years column only,      represents payments due pursuant to Kinder Morgan Energy Partners’      purchase and sale agreement with Megafleet Towing Co., Inc. for the      acquisition of certain marine vessels effective April 23,      2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (e) | The      $438.8 million in letters of credit outstanding as of December 31 2009      consisted of the following: (i) a $100 million letter of credit that      supports certain proceedings with the California Public Utilities      Commission involving refined products tariff charges on the intrastate      common carrier operations of Kinder Morgan Energy Partners Pacific      operations’ pipelines in the state of California, (ii) a combined $55.5      million in two letters of credit supporting Kinder Morgan Energy Partners’      pipeline and terminal operations in Canada, (iii) a combined $55.0 million      in two letters of credit supporting Kinder Morgan Energy Partners’ hedging      of energy commodity price risks, (iv) a combined $33.1 million in four      letters of credit required under provisions of our property and casualty,      worker’s compensation and general liability insurance policies, (v) Kinder      Morgan Energy Partners’ $30.3 million guarantee under letters of credit      totaling $45.5 million supporting Kinder Morgan Energy Partners’      International Marine Terminals Partnership Plaquemines, Louisiana Port,      Harbor, and Terminal Revenue Bonds, (vi) a $25.4 million letter of credit      supporting Kinder Morgan Energy Partners’ Kinder Morgan Liquids Terminals      LLC New Jersey Economic Development Revenue Bonds, (vii) a $24.1 million      letter of credit supporting Kinder Morgan Energy Partners’ Kinder Morgan      Operating L.P. “B” tax-exempt bonds, (viii) a $21.4 million letter of      credit supporting Kinder Morgan Energy Partners’ indemnification      obligations on the Series D note borrowings of Cortez Capital Corporation,      (ix) a combined total of $20.4 million of two letters of credit supporting      the subordination of operating fees payable to us for the operation of the      Jackson, Michigan power generation facility to payments due under the      operating lease of the facilities, (x) a $19.8 million letter of credit      supporting Nassau County, Florida Ocean Highway and Port Authority      tax-exempt bonds, (xi) a combined $17.0 million in eight letters of credit      supporting environmental and other obligations of Kinder Morgan Energy      Partners’ and its subsidiaries, (xii) a $16.2 million letter of credit to      fund the debt service reserve account required under Kinder Morgan Energy      Partners Express System’s trust indenture and (xiii) a $5.4 million letter      of credit supporting Kinder Morgan Energy Partners’ Arrow Terminals, L.P.      Illinois Development Revenue Bonds. |
| (f) | Represents      commitments for the purchase of plant, property and equipment as of      December 31, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

| Other      Contingent Commitments:                                    |   | Contingency                  |   | Amount      of Contingent Liabilityat      December 31, 2009                       |
|-----------------------------------------------------------------------|--------|------------------------------|--------|------------------------------------------------------------------------------------|
| Guarantor      of the Bushton Gas processing plant lease(a) |   | Default      by ONEOK, Inc.  |   | Total      $54.8 million; Averages $27.4 million per year through 2011   |
|                                                                  |   |                         |   |                                                                               |
| Jackson,      Michigan power plant incremental investment        |   | Operational      performance |   | $3      to $8 million per year for 9 years beginning 2010 through    2018          |
|                                                                  |   |                         |   |                                                                               |
| Jackson,      Michigan power plant incremental investment        |   | Cash      flow performance   |   | Up      to a total of $25 million beginning in2018                                 |

|   | ____________ |
|--------|--------------|

| (a) | In      conjunction with our sale of the Bushton gas processing facility to ONEOK,      Inc., at December 31, 1999, ONEOK, Inc. became primarily liable under the      associated operating lease and we became secondarily      liable.  Should ONEOK, Inc. fail to make payments as required      under the lease, we would be required to make such payments, with recourse      only to ONEOK, Inc. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|   | · | first,      98% to the owners of all classes of units pro rata and 2% to Kinder Morgan      G.P., Inc. as general partner of Kinder Morgan Energy Partners until the      owners of all classes of units have received a total of $0.15125 per unit      in cash or equivalent i-units for suchquarter; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | second,      85% of any available cash then remaining to the owners of all classes of      units pro rata and 15% to Kinder Morgan G.P., Inc. as general partner of      Kinder Morgan Energy Partners until the owners of all classes of units      have received a total of $0.17875 per unit in cash or equivalent i-units      for such quarter; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | third,      75% of any available cash then remaining to the owners of all classes of      units pro rata and 25% to Kinder Morgan G.P., Inc. as general partner of      Kinder Morgan Energy Partners until the owners of all classes of units      have received a total of $0.23375 per unit in cash or equivalent i-units      for such quarter; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | fourth,      50% of any available cash then remaining to the owners of all classes of      units pro rata, to owners of common units in cash and to Kinder Morgan      Management as owners of i-units in the equivalent number of i-units, and      50% to Kinder Morgan G.P., Inc. as general partner of Kinder Morgan Energy      Partners. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 98%      to all owners of common units and Class B units pro rata in cash and      to Kinder Morgan Management as the sole holder of i-units in equivalent      i-units; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 2%      to Kinder Morgan G.P., Inc. as the general partner of Kinder Morgan Energy      Partners, until Kinder Morgan Energy Partners has distributed cash from      this source in respect of a common unit outstanding since its original      public offering in an aggregate amount per unit equal to the initial      common unit price of $5.75, as adjusted for  splits. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|   | · | price      trends and overall demand for natural gas liquids, refined petroleum      products, oil, carbon dioxide, natural gas, electricity, coal, steel and      other bulk materials and chemicals in North  America; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | economic      activity, weather, alternative energy sources, conservation and      technological advances that may affect price trends and demand; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes      in tariff rates charged by our or those of Kinder Morgan Energy Partners’      pipeline subsidiaries implemented by the Federal Energy Regulatory      Commission, or other regulatory agencies or the California Public      Utilities Commission; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our      ability to acquire new businesses and assets and integrate those      operations into our existing operations, as well as the ability to expand      our facilities; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | difficulties      or delays experienced by railroads, barges, trucks, ships or pipelines in      delivering products to or from Kinder Morgan Energy Partners’ terminals or      pipelines; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our      ability to successfully identify and close acquisitions and make      cost-saving changes in operations; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | · | shut-downs      or cutbacks at major refineries, petrochemical or chemical plants, ports,      utilities, military bases or other businesses that use our services or      provide services or products to us; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes      incrude oil and natural gas production from exploration and      production areas that we or Kinder Morgan Energy Partners serve, such as      the Permian Basin area of West Texas, the U.S. Rocky Mountains and the      Alberta, Canada oil sands; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes      in laws or regulations, third-party relations and approvals and decisions      of courts, regulators and governmental bodies that may adversely affect      our business or ability to compete; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes      in accounting pronouncements that impact the measurement of our results of      operations, the timing of when such measurements are to be made and      recorded, and the disclosures surrounding these  activities; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our      ability to offer and sell equity securities, and Kinder Morgan Energy      Partners’ ability to offer and sell equity securities and its ability to      sell debt securities or obtain debt financing in sufficient amounts to      implement that portion of our or Kinder Morgan Energy Partners’ business      plans that contemplates growth through acquisitions of operating      businesses and assets and expansions of  facilities; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our      indebtedness, which could make us vulnerable to general adverse economic      and industry conditions, limit our ability to borrow additional funds      and/or place us at competitive disadvantages compared to our competitors      that have less debt or have other adverse  consequences; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | interruptions      of electric power supply to our facilities due to natural disasters, power      shortages, strikes, riots, terrorism, war or other  causes; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our      ability to obtain insurance coverage without significant levels of      self-retention of risk; |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | acts      of nature, sabotage, terrorism or other similar acts causing damage      greater than our insurance coveragelimits; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

|   | · | capital      and credit markets conditions, inflation and interest    rates; |
|--------|--------|------------------------------------------------------------------------------|

|   | · | the      political and economic stability of the oil producing nations of the      world; |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | national,      international, regional and local economic, competitive and regulatory      conditions and developments; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | · | foreign      exchange fluctuations; |
|--------|--------|-------------------------------------|

|   | · | the      timing and extent of changes in commodity prices for oil, natural gas,      electricity and certain agriculturalproducts; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      extent of Kinder Morgan Energy Partners’ success in discovering,      developing and producing oil and gas reserves, including the risks      inherent in exploration and development drilling, well completion and      other development activities; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | engineering      and mechanical or technological difficulties that Kinder Morgan Energy      Partners may experience with operational equipment, in well completions      and workovers, and in drilling newwells; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      uncertainty inherent in estimating future oil and natural gas production      or reserves that Kinder Morgan Energy Partners may    experience; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      ability to complete expansion projects on time and on    budget; |
|--------|--------|---------------------------------------------------------------------------|

----

| Item      7. | Management’s      Discussion and Analysis of Financial Condition and Results ofOperations.      (continued) | Kinder      Morgan, Inc. Form 10-K  |
|--------------|-------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|   | · | the      timing and success of Kinder Morgan Energy Partners’ and our business      development efforts; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

|   | · | unfavorable      results of litigation and the fruition of contingencies referred to in the      accompanying Notes to Consolidated Financial  Statements. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                       | Credit      Rating |
|--------------------------------------------|--------------------|
| J.      Aron & Company / Goldman Sachs | A                  |
| Morgan      Stanley                        | A                  |
| BNP      Paribas                           | AA                 |

----

| Item      7A. | Quantitative      and Qualitative Disclosures About Market      Risk. (continued) | Kinder      Morgan, Inc. Form 10-K |
|---------------|----------------------------------------------------------------------------------------|------------------------------------|

----

| Item      7A. | Quantitative      and Qualitative Disclosures About Market      Risk. (continued) | Kinder      Morgan, Inc. Form 10-K |
|---------------|----------------------------------------------------------------------------------------|------------------------------------|

----

| Item      7A. | Quantitative      and Qualitative Disclosures About Market      Risk. (continued) | Kinder      Morgan, Inc. Form 10-K |
|---------------|----------------------------------------------------------------------------------------|------------------------------------|

----

| Item      9A. | Controls      and Procedures. (continued) | Kinder      Morgan, Inc. Form 10-K |
|---------------|------------------------------------------------|------------------------------------|

|   | · | the      marine vessels Kinder Morgan Energy Partners acquired from Megafleet      Towing Co., Inc. effective April 23,2009; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      natural gas treating business Kinder Morgan Energy Partners acquired from      Crosstex Energy, L.P. and Crosstex Energy, Inc. effective October 1, 2009;      and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      40% equity ownership interest in Endeavor Gathering LLC Kinder Morgan      Energy Partners acquired effective November 1,  2009. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

----

| Kinder      Morgan, Inc. Form 10-K |
|------------------------------------|

| Name                       | Age | Position                                                  |
|----------------------------|-----|-----------------------------------------------------------|
| Richard      D. Kinder     | 65  | Director,      Chairman and Chief Executive Officer       |
| C.      Park Shaper        | 41  | Director      and President                               |
| Steven      J. Kean        | 48  | Executive      Vice President and Chief Operating Officer |
| Kenneth      A. Pontarelli | 46  | Director                                                  |
| Kimberly      A. Dang      | 40  | Vice      President and Chief Financial Officer           |
| David      D. Kinder       | 35  | Vice      President, Corporate Development and Treasurer  |
| Joseph      Listengart     | 41  | Vice      President, General Counsel and Secretary        |
| Thomas      A. Martin      | 48  | Vice      President, Natural Gas Pipelines                |
| James      E. Street       | 53  | Vice      President, Human Resources andAdministration    |

----

| Item      10.  Directors,      Executive Officers and Corporate Governance    (continued) | Kinder      Morgan, Inc. Form 10-K |
|-----------------------------------------------------------------------------------------------------|------------------------------------|

----

| Item      10.  Directors,      Executive Officers and Corporate Governance    (continued) | Kinder      Morgan, Inc. Form 10-K |
|-----------------------------------------------------------------------------------------------------|------------------------------------|

----

| Item      11.  Executive      Compensation (continued) | Kinder      Morgan, Inc. Form 10-K |
|------------------------------------------------------------------|------------------------------------|

----

| Item      11.  Executive      Compensation (continued) | Kinder      Morgan, Inc. Form 10-K |
|------------------------------------------------------------------|------------------------------------|

----

| Item      11.  Executive      Compensation (continued) | Kinder      Morgan, Inc. Form 10-K |
|------------------------------------------------------------------|------------------------------------|

|   | · | our      EBITDA less capital spending, or the EBITDA less capital spending of one      of our subsidiaries or businessunits; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | · | our      free cash flow or the free cash flow of one of our subsidiaries or      business units; |
|--------|--------|--------------------------------------------------------------------------------------------------|

|   | · | our      net income or the net income of one of our subsidiaries or business      units; |
|--------|--------|------------------------------------------------------------------------------------------|

|   | · | our      revenues or the revenues of one of our subsidiaries or business      units; |
|--------|--------|--------------------------------------------------------------------------------------|

|   | · | our      unit revenues minus unit variable costs or the unit revenues minus unit      variable costs of one of our subsidiaries or business    units; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our      return on capital, return on equity, return on assets, or return on      invested capital, or the return on capital, return on equity, return on      assets, or return on invested capital of one of our subsidiaries or      business units; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our      free cash flow, cash flow return on assets or cash flows from operating      activities, or the cash flow return on assets or cash flows from operating      activities of one of our subsidiaries or business  units; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our      capital expenditures or the capital expenditures of one of our      subsidiaries or business units; |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | · | our      operations and maintenance expense or general and administrative expense,      or the operations and maintenance expense or general and administrative      expense of one of our subsidiaries or business  units; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our      debt-equity ratios and key profitability ratios, or the debt-equity ratios      and key profitability ratios of one of our subsidiaries or business units;      or |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Kinder      Morgan Energy Partners’ distribution perunit |
|--------|--------|----------------------------------------------------------------|

----

| Item      11.  Executive      Compensation (continued) | Kinder      Morgan, Inc. Form 10-K |
|------------------------------------------------------------------|------------------------------------|

| Name      and Principal Position                                             |   | Dollar      Value |
|------------------------------------------------------------------------------|--------|-------------------|
| Richard      D. Kinder, Chairman and Chief Executive Officer                 | $      | -                 | (a) |
| Kimberly      A. Dang, Vice President and Chief Financial Officer            |   | 1,000,000         | (b) |
| Steven      J. Kean, Executive Vice President and Chief Operating    Officer |   | 1,500,000         | (c) |
| Joseph      Listengart, Vice President, General Counsel and Secretary        |   | 1,000,000         | (b) |
| C.      Park Shaper, Director and President                                  |   | 1,500,000         | (c) |

| (a) | Declined      to participate.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | Under      the plan, for 2009, if neither of the targets was met, no bonus      opportunities would have been provided; if one of the targets was met,      $500,000 in bonus opportunities would have been available; if both of the      targets had been exceeded by 10%, $1,500,000 in bonus opportunities would      have been available.  The Kinder Morgan Management compensation      committee may, in its sole discretion, reduce the award payable by us to      any participant for any reason. |
| (c) | Under      the plan, for 2009, if neither of the targets was met, no bonus      opportunities would have been provided; if one of the targets was met,      $750,000 in bonus opportunities would have been available; if both of the      targets had been exceeded by 10%, $2,000,000 in bonus opportunities would      have been available. The Kinder Morgan Management compensation committee      may, in its sole discretion, reduce the award payable by us to any      participant for any reason.            |

----

| Item      11.  Executive      Compensation (continued) | Kinder      Morgan, Inc. Form 10-K |
|------------------------------------------------------------------|------------------------------------|

| Pension      Benefits  |
|------------------------|
| Name                   |   | Plan      Name |   | CurrentCredited      Yrsof      Service |   | Present      Value ofAccumulatedBenefit(a) |   | ContributionsDuring      2009(b) |
| Richard      D. Kinder |   | Cash      Balance |   | 9 |   |   | $ | - |   |   |   | $ | - |   |
| Kimberly      A. Dang  |   | Cash      Balance |   | 8 |   |   |   | 43,936 |   |   |   |   | 4,243 |   |
| Steven      J. Kean    |   | Cash      Balance |   | 8 |   |   |   | 55,162 |   |   |   |   | 4,683 |   |
| Joseph      Listengart |   | Cash      Balance |   | 9 |   |   |   | 65,349 |   |   |   |   | 5,082 |   |
| C.      Park Shaper    |   | Cash      Balance |   | 9 |   |   |   | 65,349 |   |   |   |   | 5,082 |   |

| (a) | The      present values in the Pension Benefits table are based on certain      assumptions, including a 6.0% discount rate, 5.0% cash balance interest      crediting rate, and a lump sum calculated using the IRS 2010 Mortality      Tables. We assumed benefits would commence at normal retirement age, which      is 65. No death or turnover was assumed prior to retirement      date. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | Contributions      were made from January 1, 2009 through April 12, 2009.  The plan      suspended contributions for the remainder of 2009; however, individual      accounts were credited with interest for the entire twelve month      period.                                                                                                                                    |

----

| Item      11.  Executive      Compensation (continued) | Kinder      Morgan, Inc. Form 10-K |
|------------------------------------------------------------------|------------------------------------|

|                                                                                                                                 |   |                                                 |   |   |                                                   |   |    |                                                  |   |   | (a)                                       |   |   | (b)                                                                              |      |   | (c)                        |   |   | (d)                                                 |   |   |                                                  |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|--------|--------|--------------------------------------------------------|--------|---------|-------------------------------------------------------|--------|--------|-------------------------------------------|--------|--------|----------------------------------------------------------------------------------|-----------|--------|----------------------------|--------|--------|-----------------------------------------------------|--------|--------|-------------------------------------------------------|--------|
| Name and        Principal Position         |   |     Year     |   |   |     Salary     |   |    |     Bonus     |   |   | Non-EquityIncentive PlanCompensation |   |   | Changein Pension     Value     |      |   | All OtherCompensation |   |   | Unit Awardsby KinderMorganHoldco LLC |   |   |     Total     |   |
| Richard      D. Kinder                                                                                                               |   |                                                 | 2009   |   |                                                   | $      | 1       |                                                  |   | $      | -                                         |   |   | $                                                                                | -         |   |                       |   | -      |                                                |   | $      | -                                                     |   |   | $ | - |   |   | $ | 1 |   |
| Director,      Chairman and                                                                                                          |   |                                                 | 2008   |   |                                                   |   | 1       |                                                  |   |   | -                                         |   |   |                                                                             | -         |   |                       |   | -      |                                                |   |   | -                                                     |   |   |   | - |   |   |   | 1 |   |
| Chief      Executive Officer                                                                                                         |   |                                                 | 2007   |   |                                                   |   | 1       |                                                  |   |   | -                                         |   |   |                                                                             | -         |   |                       |   | -      |                                                |   |   | -                                                     |   |   |   | 9,200,000 |   |   |   | 9,200,001 |   |
|                                                                                                                                 |   |                                                 |   |   |                                                   |   |    |                                                  |   |   |                                      |   |   |                                                                             |      |   |                       |   |   |                                                |   |   |                                                  |   |   |   |   |   |   |   |   |   |
| Kimberly      A. Dang                                                                                                                |   |                                                 | 2009   |   |                                                   |   | 257,692 |                                                  |   |   | -                                         |   |   |                                                                             | 550,000   |   |                       |   | 4,243  |                                                |   |   | 3,115                                                 |   |   |   | - |   |   |   | 815,050 |   |
| Vice      President and                                                                                                              |   |                                                 | 2008   |   |                                                   |   | 223,077 |                                                  |   |   | -                                         |   |   |                                                                             | 440,000   |   |                       |   | 8,285  |                                                |   |   | 11,863                                                |   |   |   | - |   |   |   | 683,225 |   |
| Chief      Financial Officer                                                                                                         |   |                                                 | 2007   |   |                                                   |   | 200,000 |                                                  |   |   | -                                         |   |   |                                                                             | 400,000   |   |                       |   | 7,294  |                                                |   |   | 32,253                                                |   |   |   | 672,409 |   |   |   | 1,311,956 |   |
|                                                                                                                                 |   |                                                 |   |   |                                                   |   |    |                                                  |   |   |                                      |   |   |                                                                             |      |   |                       |   |   |                                                |   |   |                                                  |   |   |   |   |   |   |   |   |   |
| Steven      J. Kean                                                                                                                  |   |                                                 | 2009   |   |                                                   |   | 257,692 |                                                  |   |   | -                                         |   |   |                                                                             | 1,250,000 |   |                       |   | 4,683  |                                                |   |   | 4,251                                                 |   |   |   | - |   |   |   | 1,516,626 |   |
| Executive      Vice President                                                                                                        |   |                                                 | 2008   |   |                                                   |   | 223,077 |                                                  |   |   | -                                         |   |   |                                                                             | 1,150,000 |   |                       |   | 8,755  |                                                |   |   | 13,007                                                |   |   |   | - |   |   |   | 1,394,839 |   |
| and      Chief Operating Officer                                                                                                     |   |                                                 | 2007   |   |                                                   |   | 200,000 |                                                  |   |   | -                                         |   |   |                                                                             | 1,100,000 |   |                       |   | 7,767  |                                                |   |   | 147,130                                               |   |   |   | 2,708,095 |   |   |   | 4,162,992 |   |
|                                                                                                                                 |   |                                                 |   |   |                                                   |   |    |                                                  |   |   |                                      |   |   |                                                                             |      |   |                       |   |   |                                                |   |   |                                                  |   |   |   |   |   |   |   |   |   |
| Joseph      Listengart                                                                                                               |   |                                                 | 2009   |   |                                                   |   | 257,692 |                                                  |   |   | -                                         |   |   |                                                                             | 925,000   |   |                       |   | 5,082  |                                                |   |   | 2,866                                                 |   |   |   | - |   |   |   | 1,190,640 |   |
| Vice      President, General                                                                                                         |   |                                                 | 2008   |   |                                                   |   | 223,077 |                                                  |   |   | -                                         |   |   |                                                                             | 900,000   |   |                       |   | 9,188  |                                                |   |   | 11,629                                                |   |   |   | - |   |   |   | 1,143,894 |   |
| Counsel      and Secretary                                                                                                           |   |                                                 | 2007   |   |                                                   |   | 200,000 |                                                  |   |   | -                                         |   |   |                                                                             | 1,000,000 |   |                       |   | 8,194  |                                                |   |   | 102,253                                               |   |   |   | 1,706,963 |   |   |   | 3,017,410 |   |
|                                                                                                                                 |   |                                                 |   |   |                                                   |   |    |                                                  |   |   |                                      |   |   |                                                                             |      |   |                       |   |   |                                                |   |   |                                                  |   |   |   |   |   |   |   |   |   |
| C.      Park Shaper                                                                                                                  |   |                                                 | 2009   |   |                                                   |   | 257,692 |                                                  |   |   | -                                         |   |   |                                                                             | 1,300,000 |   |                       |   | 5,082  |                                                |   |   | 3,971                                                 |   |   |   | - |   |   |   | 1,566,745 |   |
| Director      and President                                                                                                          |   |                                                 | 2008   |   |                                                   |   | 223,077 |                                                  |   |   | -                                         |   |   |                                                                             | 1,200,000 |   |                       |   | 9,188  |                                                |   |   | 12,769                                                |   |   |   | - |   |   |   | 1,445,034 |   |
|                                                                                                                                 |   |                                                 | 2007   |   |                                                   |   | 200,000 |                                                  |   |   | -                                         |   |   |                                                                             | 1,200,000 |   |                       |   | 8,194  |                                                |   |   | 155,953                                               |   |   |   | 4,296,125 |   |   |   | 5,860,272 |   |

| (a) | Represents      amounts paid according to the provisions of the Kinder Morgan, Inc. Annual      Incentive Plan.  Amounts were earned in the fiscal year      indicated but were paid in the next fiscal year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | Represents      the 2009, 2008 and 2007, as applicable, change in the actuarial present      value of accumulated defined pension benefit (including unvested benefits)      according to the provisions of Kinder Morgan, Inc.’s Cash Balance      Retirement Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (c) | Amounts      include value of contributions to the Kinder Morgan, Inc. Savings Plan (a      401(k) plan), value of group-term life insurance exceeding $50,000,      taxable parking subsidy and, for 2007 only, dividends paid on unvested      restricted stock awards.  Amounts in 2009, 2008 and 2007      representing the value of contributions to the Kinder Morgan, Inc. Savings      Plan are $2,308, $11,154 and $10,000, respectively.  For 2009,      Mrs. Dang also has $226 in imputed income from company provided cell      phone.  Amounts in 2007 representing the value of dividends paid      on unvested restricted stock awards are as follows: for Mrs. Dang $21,875;      for Mr. Kean $136,500; for Mr. Listengart $91,875; and for Mr. Shaper      $144,375. |
| (d) | Such      amounts represent the grant date fair value of the Class A-1 and Class B      units of Kinder Morgan Holdco LLC received by the named executive      officers.  None of our named executive officers has received any      payments in connection with such units, and none of us or our subsidiaries      are obligated, nor do we expect, to pay any amounts in respect of such      units.  See “Elements of Compensation—Other Compensation—Kinder      Morgan Holdco LLC Units” above for further discussion of these      units.                                                                                                                                                                                                                          |

----

| Item      11.  Executive      Compensation (continued) | Kinder      Morgan, Inc. Form 10-K |
|------------------------------------------------------------------|------------------------------------|

|                   |   | Estimated      Future Payouts UnderNon-Equity Incentive Plan      Awards(a) |    |
|------------------------|--------|-----------------------------------------------------------------------------|---------|
| Name                   |   | Threshold                                                                   |    |   | Target |   |   | Maximum |   |
| Richard      D. Kinder |   | $                                                                           | -       |   |   | $ | - |   |   | $ | - |   |
| Kimberly      A. Dang  |   |                                                                        | 500,000 |   |   |   | 1,000,000 |   |   |   | 1,500,000 |   |
| Steven      J. Kean    |   |                                                                        | 750,000 |   |   |   | 1,500,000 |   |   |   | 2,000,000 |   |
| Joseph      Listengart |   |                                                                        | 500,000 |   |   |   | 1,000,000 |   |   |   | 1,500,000 |   |
| C.      Park Shaper    |   |                                                                        | 750,000 |   |   |   | 1,500,000 |   |   |   | 2,000,000 |   |

| (a) | See      “Elements of Compensation—Possible Annual Cash Bonus (Non-Equity Cash      Incentive)” above for further discussion of these  awards. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                   |   | Stock      Awards  |
|------------------------|--------|--------------------|
| Name                   |   | Type      of units |   | Number      of unitsthat      have not vested |   | Market      value ofunits      of stock thathave      not vested(a) |
| Richard      D. Kinder |   | Class      B units |   | 791,405,452 |   | N/A |
| Kimberly      A. Dang  |   | Class      B units |   | 49,462,841 |   | N/A |
| Steven      J. Kean    |   | Class      B units |   | 158,281,090 |   | N/A |
| Joseph      Listengart |   | Class      B units |   | 79,140,545 |   | N/A |
| C.      Park Shaper    |   | Class      B units |   | 217,636,499 |   | N/A |

| (a) | Because      the Class B units are equity interests of Kinder Morgan      Holdco LLC, a private limited liability company, the market value of      such interests is not readily determinable. None of our named executive      officers has received any payments in connection with such units, and none      of us or our subsidiaries are obligated, nor do we expect, to pay any      amounts in respect of such units. See “Elements of Compensation—Other      Compensation—Kinder Morgan Holdco LLC Units” above for further discussion      of these units. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Item      11.  Executive      Compensation (continued) | Kinder      Morgan, Inc. Form 10-K |
|------------------------------------------------------------------|------------------------------------|

----

|                                                             |   | Kinder      Morgan EnergyPartners      Common Units |    |   | Kinder      MorganManagement      Shares |   |
|------------------------------------------------------------------|--------|-----------------------------------------------------|---------|--------|------------------------------------------|--------|
| Name                                                             |   | Numberof Units    (b)                               |    |   | Percentof      Class                     |   |   | Number      ofShares    (c) |   |   | Percentof      Class |   |
| Richard      D. Kinder (d)                                       |   |                                                | 315,979 |   |                                     |   | * |   |   |   | 144,464 |   |   |   | * |   |
| C.      Park Shaper                                              |   |                                                | 4,000   |   |                                     |   | * |   |   |   | 30,652 |   |   |   | * |   |
| Kenneth      A. Pontarelli                                       |   |                                                | 1,000   |   |                                     |   | * |   |   |   | - |   |   |   | - |   |
| Steven      J. Kean                                              |   |                                                | 1,780   |   |                                     |   | * |   |   |   | 2,118 |   |   |   | * |   |
| Joseph      Listengart                                           |   |                                                | 5,498   |   |                                     |   | * |   |   |   | 1,414 |   |   |   | * |   |
| Kimberly      A. Dang                                            |   |                                                | 121     |   |                                     |   | * |   |   |   | 519 |   |   |   | * |   |
| Directors      and Executive Officers as a group (9 persons) (e) |   |                                                | 340,564 |   |                                     |   | * |   |   |   | 202,985 |   |   |   | * |   |

| (a) | Except      as noted otherwise, each beneficial owner has sole voting power and sole      investment power over the units and shares listed.                                                                                                                                                                                                                                                                                     |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | As      of January 31, 2010, Kinder Morgan Energy Partners had 207,310,563 common      units issued and outstanding.                                                                                                                                                                                                                                                                                                             |
| (c) | As      of January 31, 2010, Kinder Morgan Management had 85,538,263 issued and      outstanding shares representing limited liability company interests,      including two voting shares owned by Kinder      Morgan G.P., Inc.                                                                                                                                                                                      |
| (d) | Includes      7,879 common units and 1,000 Kinder Morgan management shares owned by      Mr. Kinder’s spouse. Mr. Kinder disclaims any and all beneficial      or pecuniary interest in these common units and shares.                                                                                                                                                                                           |
| (e) | Includes      2,450 restricted common units.  Also includes 7,879 common units      and 1,000 Kinder Morgan Management shares owned by an executive’s spouse      and 786 Kinder Morgan Management shares held by one of our executives for      his children.  The respective executives disclaim any beneficial      ownership in 7,879 common units and 1,786 Kinder Morgan Management      shares. |

| Name                                                                   |   | KinderMorganHoldco      LLCClass      A Units |   | %      of ClassA Units      (b) |   | KinderMorganHoldco      LLCClass      A-1Units |       | %      of ClassA-1 Units      (c) |   | KinderMorganHoldco      LLCClass      B Units |   | %      of ClassB Units      (d) |
|------------------------------------------------------------------------|--------|-----------------------------------------------|--------|--------------------------------------|--------|------------------------------------------------|------------|----------------------------------------|--------|-----------------------------------------------|--------|--------------------------------------|
| Richard      D. Kinder (e)                                             |   | 2,424,000,000                                 |   | 30.6                                 | %      |                                           | -          |                                   | -      | %                                             |   | 791,405,452                          |   | 40.0 | % |
| C.      Park Shaper (f)                                                |   | 13,598,785                                    |   | *                                    |   |                                           | 7,799,775  |                                   | 28.3   | %                                             |   | 217,636,499                          |   | 11.0 | % |
| Steven      J. Kean (g)                                                |   | 6,684,149                                     |   | *                                    |   |                                           | 3,833,788  |                                   | 13.9   | %                                             |   | 158,281,090                          |   | 8.0 | % |
| Kimberly      A. Dang (h)                                              |   | 750,032                                       |   | *                                    |   |                                           | 430,191    |                                   | 1.6    | %                                             |   | 49,462,841                           |   | 2.5 | % |
| Joseph      Listengart (i)                                             |   | 6,059,449                                     |   | *                                    |   |                                           | 3,475,483  |                                   | 12.6   | %                                             |   | 79,140,545                           |   | 4.0 | % |
| Kenneth      A. Pontarelli (j)                                         |   | 1,997,795,088                                 |   | 25.2                                 | %      |                                           | -          |                                   | -      |                                          |   | -                                    |   | - |   |
| Directors      and Executive Officers as a group (9 persons) |   | 4,454,118,070                                 |   | 56.3                                 | %      |                                           | 18,539,303 |                                   | 67.2   | %                                             |   | 1,420,572,786                        |   | 71.8 | % |

| (a) | Except      as noted otherwise, each beneficial owner has sole voting power and sole      investment power over the units and shares listed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | As      of January 31, 2010, Kinder Morgan Holdco LLC had 7,914,367,913      Class A Units issued and outstanding.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (c) | As      of January 31, 2010, Kinder Morgan Holdco LLC had 27,225,694      Class A-1 Units issued and outstanding and 345,042 phantom      Class A-1 Units issued and outstanding. The phantom Class A-1      Units were issued to Canadian management employees.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (d) | As      of January 31, 2010, Kinder Morgan Holdco LLC had 1,933,997,073      Class B Units issued and outstanding and 44,516,557 phantom      Class B Units issued and outstanding. The phantom Class B Units      were issued to Canadian management employees.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (e) | Includes      522,372 Class A units owned by Mr. Kinder’s wife.      Mr. Kinder disclaims any and all beneficial or pecuniary interest in      the Class A units held by his wife. Also includes 263,801,817      Class B Units that Mr. Kinder transferred to a limited      partnership. Mr. Kinder may be deemed to be the beneficial owner of      these transferred Class B Units, because Mr. Kinder controls the      voting and disposition power of these Class B Units, but he disclaims      ninety-nine percent of any beneficial and pecuniary interest in them.      Mr. Kinder contributed 23,994,827 shares of Kinder Morgan, Inc.      common stock and his wife contributed 5,173 shares of Kinder Morgan, Inc.      common stock to Kinder Morgan Holdco LLC that were valued for      purposes of Kinder Morgan Holdco LLC’s limited liability agreement at      $2,423,477,628 and $522,372, respectively, in exchange for their      respective Class A units. The Class B  units  |

----

| Item      12. | Security      Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters. (continued) | Kinder      Morgan, Inc. Form 10-K  |
|---------------|-----------------------------------------------------------------------------------------------------------------------|------------------------------------------|

|      | received      by Mr. Kinder had a grant date fair value as calculated in accordance      with the accounting provisions governing share-based compensation of      $9,200,000.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (f)       | Includes      217,636,499 Class B Units that Mr. Shaper transferred to a      limited partnership. Mr. Shaper may be deemed to be the beneficial      owner of these transferred Class B Units because he controls the      voting and disposition power of these Class B Units, but he disclaims      approximately twenty-two percent of any beneficial and pecuniary interest      in them. Mr. Shaper made a cash investment of $13,598,785 of his      after-tax proceeds from the conversion in the Going Private transaction of      82,500 shares of Kinder Morgan, Inc. restricted stock and options to      acquire 197,969 shares of Kinder Morgan, Inc. common stock in exchange for      his Class A units. The Class A-1 units and Class B units      received by Mr. Shaper had an aggregate grant date fair value as      calculated in accordance with the accounting provisions governing      share-based compensation of $4,296,125.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (g)       | Mr. Kean      made a cash investment of $6,684,149 of his after-tax proceeds from the      conversion in the Going Private transaction of 78,000 shares of Kinder      Morgan, Inc. restricted stock and options to acquire 25,533 shares of      Kinder Morgan, Inc. common stock in exchange for his Class A units.      The Class A-1 units and Class B units received by Mr. Kean      had an aggregate grant date fair value as calculated in accordance with      the accounting provisions governing share-based compensation of      $2,708,095.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (h)       | Includes      49,462,841 Class B Units that Mrs. Dang transferred to a limited      partnership. Mrs. Dang may be deemed to be the beneficial owner of      these transferred Class B Units because Mrs. Dang has voting and      disposition power of these Class B Units, but she disclaims ten      percent of any beneficial and pecuniary interest in them. Mrs. Dang      made a cash investment of $750,032 of her after-tax proceeds from the      conversion in the Going Private transaction of 8,000 shares of Kinder      Morgan, Inc. restricted stock and options to acquire 24,750 shares of      Kinder Morgan, Inc. common stock in exchange for her Class A units.      The Class A-1 units and Class B units received by Mrs. Dang      had an aggregate grant date fair value as calculated in accordance with      the accounting provisions governing share-based compensation of      $672,409.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (i)       | Mr. Listengart      made a cash investment of $6,059,449 of his after-tax proceeds from the      conversion in the Going Private transaction of 52,500 shares of Kinder      Morgan, Inc. restricted stock and options to acquire 48,459 shares of      Kinder Morgan, Inc. common stock in exchange for his Class A units.      The Class A-1 units and Class B units received by      Mr. Listengart had an aggregate grant date fair value as calculated      in accordance with the accounting provisions governing share-based      compensation of $1,706,963.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (j)  | Consists      of 240,454,180 units owned by GS Capital Partners V Fund, L.P., a      Delaware limited partnership; 124,208,587 units owned by GS Capital      Partners V Offshore Fund, L.P., a Cayman Islands exempted limited      partnership; 82,455,031 units owned by GS Capital Partners V      Institutional, L.P., a Delaware limited partnership; 9,533,193 units      owned by GS Capital Partners V GmbH & Co. KG, a German      limited partnership; 233,596,750 units owned by GS Capital Partners VI      Fund, L.P., a Delaware limited partnership; 194,297,556 units owned      by GS Capital Partners VI Offshore Fund, L.P., a Cayman Islands      exempted limited partnership; 64,235,126 units owned by GS Capital      Partners VI Parallel, L.P., a Delaware limited partnership; 8,302,031      units owned by GS Capital Partners VI GmbH & Co. KG, a      German limited partnership; 250,215,732 units owned by Goldman Sachs KMI      Investors, L.P., a Delaware limited partnership; 344,448,791 units      owned by GSCP KMI Investors, L.P., a Delaware limited partnership;      49,873,203 units owned by GSCP KMI Investors Offshore, L.P., a Cayman      Islands exempted limited partnership; 100,534,014 units owned by GS Global      Infrastructure Partners I, L.P., a Delaware limited partnership;      10,740,192 units owned by GS Institutional Infrastructure Partners      I, L.P., a Delaware limited partnership; and 284,900,702 units owned      by GS Infrastructure Knight Holdings, L.P., a Delaware limited      partnership (collectively the “GS Entities”). The GS Entities, of which      affiliates of The Goldman Sachs Group, Inc. (“GSG”) are the general      partner, managing general partner or investment manager, share voting and      investment power with certain of its respective affiliates.      Mr. Pontarelli is a managing director of Goldman,      Sachs & Co. (“GS”), which is a direct and indirect wholly      owned subsidiary of GSG. Each of GS, GSG and Mr. Pontarelli disclaims      beneficial ownership of the equity interests and the units held directly      or indirectly by the GS Entities except to the extent of their pecuniary      interest therein, if any. GS, a FINRA member, is an investment banking      firm that regularly performs services such as acting as a financial      advisor and serving as principal or agent in the purchase and sale of      securities. In the future, GS may be called upon to provide similar or      other services for us or our affiliates. Each of Mr. Pontarelli, GS      and GSG has a mailing address of c/o Goldman, Sachs & Co.,      85 Broad Street, 10th Floor, New York, NY 10004. GSG’s affiliates      that are registered broker-dealers (including specialists and market      makers) may from time to time engage in brokerage and trading activities      with respect to our securities or those of our affiliates.  J.      Aron & Company, a wholly-owned subsidiary of GSG, in its ordinary      course of business, may enter into commodity hedging transactions with us      or our affiliates. |

| Plan      category                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | Number      of securitiesremaining      available forfuture      issuance under equitycompensation      plans |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|
| Equity      compensation plans approved by security holders                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                          | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                          |   |   |
| Equity      compensation plans not approved by security holders                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                          | 74,682 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                          |   |   |
| Total                                                                                   |   |                                                                                                          | 74,682 |   |

----

|                | Year      Ended December 31, |
|---------------------|------------------------------|
|                | 2009                         |   | 2008 |
| Audit      fees (a) | $                            | 4,521,218 |   | $ | 4,875,799 |
| Tax      fees (b)   |                         | 2,421,694 |   |   | 2,568,523 |
| Total               | $                            | 6,942,912 |   | $ | 7,444,322 |

| _____________ |
|---------------|

| (a)       | Includes      fees for integrated audit of annual financial statements and internal      control over financial reporting, reviews of the related quarterly      financial statements, and reviews of documents filed with the Securities      and Exchange Commission.                                                                                                                                                                                                        |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)  | Includes      fees for professional services rendered for tax return review services and      Internal Revenue Service assistance, and for general state, local and      foreign tax compliance and consulting services. For 2009 and 2008, amounts      include fees of $2,231,537 and $2,113,318, respectively, billed to Kinder      Morgan Energy Partners for professional services rendered for tax      processing and preparation of Forms K-1 for its    unitholders. |

----

| Item      14.  Principal      Accounting Fees and Services (continued) | Kinder      Morgan, Inc. Form 10-K |
|----------------------------------------------------------------------------------|------------------------------------|

| (a) | (1) | Financial      Statements |
|-----|-----|---------------------------|

|   | (2) | Financial      Statement Schedules |
|--------|-----|------------------------------------|

|   | (3) | Exhibits |
|--------|-----|----------|

|   | 2.1 | —     | Agreement      and Plan of Merger dated August 28, 2006, among Kinder Morgan, Inc.,      Kinder Morgan Holdco LLC and Kinder Morgan Acquisition Co. (filed as      Exhibit 2.1 to Kinder Morgan, Inc.’s Current Report on Form 8-K filed on      August 28, 2006 and incorporated herein by reference)                                                       |
|--------|-----|---------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 3.1 | —     | Amended      and Restated Articles of Incorporation of Kinder Morgan, Inc. and      amendments thereto (filed as Exhibit 3.1 to Kinder Morgan, Inc.’s      Quarterly Report on Form 10-Q for the quarter ended June 30, 2007 and      incorporated herein by reference)                                                                                      |
|   | 3.2 | —     | Bylaws      of Kinder Morgan, Inc. (filed as Exhibit 3.2 to Kinder Morgan, Inc.’s      Current Report on Form 8-K filed on June 5, 2007 and incorporated herein      by reference)                                                                                                                                                                           |
|   | 4.1 | —     | Indenture      dated as of September 1, 1988, between K N Energy, Inc. and Continental      Illinois National Bank and Trust Company of Chicago (filed as Exhibit 4(a)      to Kinder Morgan, Inc.’s Annual Report on Form 10-K/A, Amendment No. 1      (File No. 1-06446) filed on May 23, 2000 and incorporated herein by      reference)                  |
|   | 4.2 | —     | First      supplemental indenture dated as of January 15, 1992, between      K N Energy, Inc. and Continental Illinois National Bank and      Trust Company of Chicago (filed as Exhibit 4.2 to the Registration      Statement on Form S-3 (File No. 33-45091) of K N Energy, Inc. filed on      January 17, 1992 and incorporated herein by reference) |
|   | 4.3 | —     | Second      supplemental indenture dated as of December 15, 1992, between      K N Energy, Inc. and Continental Bank, National Association      (filed as Exhibit 4(c) to Kinder Morgan, Inc.’s Annual Report on Form      10-K/A, Amendment No. 1 (File No. 1-06446) filed on May 23, 2000 and      incorporated herein by reference)             |
|   | 4.4 | —     | Indenture      dated as of November 20, 1993, between K N Energy, Inc. and Continental      Bank, National Association (filed as Exhibit 4.1 to the Registration      Statement on Form S-3 (File No. 33-51115) of K N Energy, Inc. filed on      November 19, 1993 and incorporated herein by reference)                                                          |
|   | 4.5 | —     | Registration      Rights Agreement among Kinder Morgan Management, LLC, Kinder Morgan Energy      Partners, L.P. and Kinder Morgan, Inc. dated May 18, 2001 (filed as      Exhibit 4.7 to Kinder Morgan, Inc.’s Annual Report on Form 10-K for the      year ended December 31, 2002 (File No. 1-06446) and incorporated herein by      reference)           |
|   | 4.6 | —     | Form      of Indenture dated as of August 27, 2002 between Kinder Morgan, Inc. and      Wachovia Bank, National Association, as Trustee (filed as Exhibit 4.1 to      Kinder Morgan, Inc.’s Registration Statement on Form S-4 (File No.      333-100338) filed on October 4, 2002 and incorporated herein by      reference)                                |

----

| Item 15. Exhibits,      Financial Statement Schedules. (continued) | Kinder      Morgan, Inc. Form 10-K |
|--------------------------------------------------------------------|------------------------------------|

|   | 4.7  | —     | Form      of First Supplemental Indenture dated as of December 6, 2002 between      Kinder Morgan, Inc. and Wachovia Bank, National Association, as Trustee      (filed as Exhibit 4.2 to Kinder Morgan, Inc.’s Registration Statement on      Form S-4 (File No. 333-102873) filed on January 31, 2003 and incorporated      herein by reference)                                                                                                                                                                   |
|--------|------|---------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 4.8  | —     | Form      of 6.50% Note (included in the Indenture filed as Exhibit 4.6 hereto and      incorporated herein by reference)                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | 4.9  | —     | Form      of Senior Indenture between Kinder Morgan, Inc. and Wachovia Bank,      National Association, as Trustee (filed as Exhibit 4.2 to Kinder Morgan,      Inc.’s Registration Statement on Form S-3 (File No. 333-102963) filed on      February 4, 2003 and incorporated herein by reference)                                                                                                                                                                                                                 |
|   | 4.10 | —     | Form      of Senior Note of Kinder Morgan, Inc. (included in the Form of Senior      Indenture filed as Exhibit 4.9 hereto and incorporated herein by      reference)                                                                                                                                                                                                                                                                                                                                                      |
|   | 4.11 | —     | Form      of Subordinated Indenture between Kinder Morgan, Inc. and Wachovia Bank,      National Association, as Trustee (filed as Exhibit 4.4 to Kinder Morgan,      Inc.’s Registration Statement on Form S-3 (File No. 333-102963) filed on      February 4, 2003 and incorporated herein by reference)                                                                                                                                                                                                           |
|   | 4.12 | —     | Form      of Subordinated Note of Kinder Morgan, Inc. (included in the Form of      Subordinated Indenture filed as Exhibit 4.11 hereto and incorporated      herein by reference)                                                                                                                                                                                                                                                                                                                                         |
|   | 4.13 | —     | Indenture      dated as of December 9, 2005, among Kinder Morgan Finance Company, LLC,      Kinder Morgan, Inc. and Wachovia Bank, National Association, as Trustee      (filed as Exhibit 4.1 to Kinder Morgan, Inc.’s Current Report on Form 8-K      filed on December 15, 2005 and incorporated herein by      reference)                                                                                                                                                                                        |
|   | 4.14 | —     | Forms      of Kinder Morgan Finance Company, LLC notes (included in the Indenture      filed as Exhibit 4.13 hereto and incorporated herein by      reference)                                                                                                                                                                                                                                                                                                                                                             |
|   | 4.15 | —     | Certificate      of the President and the Vice President and Chief Financial Officer of      Kinder Morgan Management, LLC and Kinder Morgan G.P., Inc., on behalf of      Kinder Morgan Energy Partners, L.P., establishing the terms of the 6.00%      senior notes due 2017 and 6.50% senior notes due 2037 (filed as Exhibit      1.01 to Kinder Morgan Energy Partners, L.P.’s Quarterly Report on Form      10-Q for the quarter ended March 31, 2007 and incorporated herein by      reference)               |
|   | 4.16 | —     | Certificate      of the Vice President and Treasurer and the Vice President and Chief      Financial Officer of Kinder Morgan Management, LLC and Kinder Morgan G.P.,      Inc., on behalf of Kinder Morgan Energy Partners, L.P., establishing the      terms of the 5.85% senior notes due 2012 (filed as Exhibit 4.2 to Kinder      Morgan Energy Partners, L.P.’s Quarterly Report on Form 10-Q for the      quarter ended September 30, 2007 and incorporated herein by      reference)                         |
|   | 4.17 | —     | Certificate      of the Vice President and Treasurer and the Vice President and Chief      Financial Officer of Kinder Morgan Management, LLC and Kinder Morgan G.P.,      Inc., on behalf of Kinder Morgan Energy Partners, L.P., establishing the      terms of the 6.95% Senior Notes due 2038 (filed as Exhibit 4.2 to Kinder      Morgan Energy Partners, L.P.’s Quarterly Report on Form 10-Q for the      quarter ended June 30, 2007 and incorporated herein by      reference)                              |
|   | 4.18 | —     | Certificate      of the Vice President and Treasurer and the Vice President and Chief      Financial Officer of Kinder Morgan Management, LLC and Kinder Morgan G.P.,      Inc., on behalf of Kinder Morgan Energy Partners, L.P., establishing the      terms of the 5.95% Senior Notes due 2018 (filed as Exhibit 4.28 to Kinder      Morgan Energy Partners, L.P.’s Annual Report on Form 10-K for 2007 and      incorporated herein by reference)                                                                |
|   | 4.19 | —     | Indenture      dated as of December 21, 2007, between NGPL PipeCo LLC and U.S. Bank      National Association, as Trustee (filed as Exhibit 4.1 to Kinder Morgan,      Inc.’s Current Report on Form 8-K filed on December 21, 2007 and      incorporated herein by reference)                                                                                                                                                                                                                                       |
|   | 4.20 | —     | Forms      of notes of NGPL PipeCo LLC (included in the Indenture filed as Exhibit      4.19 hereto and incorporated herein by reference)                                                                                                                                                                                                                                                                                                                                                                                  |
|   | 4.21 | —     | Certificate      of the Vice President and Treasurer and the Vice President and Chief      Financial Officer of Kinder Morgan Management, LLC and Kinder Morgan G.P.,      Inc., on behalf of Kinder Morgan Energy Partners, L.P., establishing the      terms of the 9.00% Senior Notes due 2019 (filed as Exhibit 4.29 to Kinder      Morgan Energy Partners, L.P.’s Annual Report on Form 10-K for 2008 and      incorporated herein by reference)                                                                |
|   | 4.22 | —     | Certain      instruments with respect to the long-term debt of Kinder Morgan, Inc. and      its consolidated subsidiaries that relate to debt that does not exceed 10%      of the total assets of Kinder Morgan, Inc. and its consolidated      subsidiaries are omitted pursuant to Item 601(b) (4) (iii) (A) of      Regulation S-K, 17 C.F.R. sec.229.601. Kinder Morgan, Inc. hereby agrees      to furnish supplementally to the Securities and Exchange Commission a copy      of each such instrument uponrequest. |

----

| Item 15. Exhibits,      Financial Statement Schedules. (continued) | Kinder      Morgan, Inc. Form 10-K |
|--------------------------------------------------------------------|------------------------------------|

|   | 10.1* | —     | 2010      Annual Incentive Plan of Kinder Morgan, Inc.                                                                                                                                                                                                                                                                                                                                                                       |
|--------|-------|---------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 10.2  | —     | Employment      Agreement dated October 7, 1999, between Kinder Morgan, Inc. and Richard      D. Kinder (filed as Exhibit 99.D of the Schedule 13D filed by Mr. Kinder      on November 16, 1999 and incorporated herein by  reference)                                                                                                                                                                                      |
|   | 10.3  | —     | Form      of Purchase Provisions between Kinder Morgan Management, LLC and Kinder      Morgan, Inc. (included as Annex B to the Second Amended and Restated      Limited Liability Company Agreement of Kinder Morgan Management, LLC filed      as Exhibit 3.1 to Kinder Morgan Management, LLC’s Current Report on Form      8-K filed on May 30, 2007 and incorporated herein by      reference)                    |
|   | 10.4  | —     | Credit      Agreement, dated as of May 30, 2007, among Kinder Morgan, Inc. and Kinder      Morgan Acquisition Co., as the borrower, the several lenders from time to      time parties thereto, and Citibank, N.A., as administrative agent and      collateral agent (filed as Exhibit 4.1 to Kinder Morgan, Inc.’s Current      Report on Form 8-K, filed on June 5, 2007 and incorporated herein by      reference) |
|   | 10.5  | —     | Form      of Indemnification Agreement between Kinder Morgan, Inc. and each member      of the Special Committee of the Board of Directors (filed as Exhibit 10.1      to Kinder Morgan, Inc.’s Current Report on Form 8-K filed on June 16, 2006      and incorporated herein by reference)                                                                                                                           |
|   | 10.6  | —     | Acquisition      Agreement dated as of February 26, 2007, by and among Kinder Morgan, Inc.,      3211953 Nova Scotia Company and Fortis Inc. (filed as Exhibit 1.01 to      Kinder Morgan, Inc.’s Current Report on Form 8-K filed on March 1, 2007      and incorporated herein by reference)                                                                                                                         |
|   | 10.8  | —     | Purchase      Agreement, dated as of December 10, 2007, between Kinder Morgan, Inc. and      Myria Acquisition Inc. (filed as Exhibit 10.1 to Kinder Morgan, Inc.’s      Current Report on Form 8-K filed on December 11, 2007 and incorporated      herein by reference)                                                                                                                                              |
|   | 21.1* | —     | Subsidiaries      of the Registrant                                                                                                                                                                                                                                                                                                                                                                                          |
|   | 31.1* | —     | Certification      of Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the      Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                 |
|   | 31.2* | —     | Certification      of Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the      Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                 |
|   | 32.1* | —     | Certification      of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of  2002                                                                                                                                                                                                                                                                 |
|   | 32.2* | —     | Certification      of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of  2002                                                                                                                                                                                                                                                                 |
|   | 99.1  | —     | The      financial statements of Kinder Morgan Energy Partners, L.P. and      subsidiaries (incorporated by reference to pages 112 through 195 of the      Annual Report on Form 10-K of Kinder Morgan Energy Partners, L.P. for the      year ended December 31, 2009)                                                                                                                                                      |
|   | 99.2* | —     | Estimates      of the net reserves and future net revenues as of December 31, 2009 to      Kinder Morgan CO2      Company, L.P.’s interests in certain oil and gas properties located in the      state of Texas.                                                                                                                                                                                                      |

----

|   | Kinder      Morgan, Inc. Form 10-K |
|--------|------------------------------------|

| KINDER      MORGAN, INC. AND SUBSIDIARIES                    |   |
|--------------------------------------------------------------|--------|
|                                                         | Page   |
|                                                    |   |
| Report of Independent Registered Public      Accounting Firm | 109    |
|                                                         |   |
| Consolidated Statements of      Operations                   | 112    |
|                                                         |   |
| Consolidated Statements of Comprehensive      Income         | 113    |
|                                                         |   |
| Consolidated Balance Sheets                                  | 114    |
|                                                         |   |
| Consolidated Statements of Cash      Flows                   | 115    |
|                                                         |   |
| Consolidated Statements of Stockholders’      Equity   | 117    |
|                                                         |   |
| Notes to Consolidated Financial    Statements                | 119    |
|                                                    |   |

----

| ·   | The      terminal assets acquired from Megafleet Towing Co., Inc, effective April      23, 2009; |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | The      natural gas treating business acquired from Crosstex Energy, L.P. and      Crosstex Energy, Inc., effective October 1, 2009;  and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      40% equity ownership interest in Endeavor Gathering LLC, acquired      effective November 1, 2009 |
|--------------------|------------------------------------------------------------------------------------------------------------|

----

|   | Kinder      Morgan, Inc. Form 10-K |
|--------|------------------------------------|

----

|   | Kinder      Morgan, Inc. Form 10-K |
|--------|------------------------------------|

----

|   | Kinder      Morgan, Inc. Form 10-K |
|--------|------------------------------------|

|                                                              |   | Successor      Company       |    |   | Predecessor      Company                |   |
|-------------------------------------------------------------------|--------|------------------------------|---------|--------|-----------------------------------------|--------|
|                                                              |   | Year      Ended December 31, |    |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEndedMay      31, |   |
|                                                              |   | 2009                         |    |   | 2008                                    |   |   | 2007 |   |   | 2007 |   |
|                                                              |   | (In      millions)           |    |   | (In      millions)                      |   |
| Revenues                                                          |   |                         |    |   |                                    |   |   |   |   |   |   |   |
| Natural      gas sales                                            |   | $                            | 3,137.2 |   |                                    | $      | 7,705.8 |   |   | $ | 3,623.1 |   |   | $ | 2,430.6 |   |
| Services                                                          |   |                         | 2,739.1 |   |                                    |   | 2,904.0 |   |   |   | 2,049.8 |   |   |   | 1,350.5 |   |
| Product      sales and other                                      |   |                         | 1,308.9 |   |                                    |   | 1,485.0 |   |   |   | 721.8 |   |   |   | 384.0 |   |
| Total      Revenues                                               |   |                         | 7,185.2 |   |                                    |   | 12,094.8 |   |   |   | 6,394.7 |   |   |   | 4,165.1 |   |
|                                                         |   |                         |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Costs, Expenses and Other                          |   |                         |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Gas      purchases and other costs of sales                       |   |                         | 3,068.5 |   |                                    |   | 7,744.0 |   |   |   | 3,656.6 |   |   |   | 2,490.4 |   |
| Operations      and maintenance                                   |   |                         | 1,159.9 |   |                                    |   | 1,318.0 |   |   |   | 943.3 |   |   |   | 476.1 |   |
| Depreciation,      depletion and amortization                     |   |                         | 1,070.2 |   |                                    |   | 918.4 |   |   |   | 472.3 |   |   |   | 261.0 |   |
| General      and administrative                                   |   |                         | 373.0   |   |                                    |   | 352.5 |   |   |   | 175.6 |   |   |   | 283.6 |   |
| Taxes,      other than income taxes                               |   |                         | 137.0   |   |                                    |   | 191.4 |   |   |   | 110.1 |   |   |   | 74.4 |   |
| Goodwill      impairment expense                                  |   |                         | -       |   |                                    |   | 4,033.3 |   |   |   | - |   |   |   | 377.1 |   |
| Other      expense (income)                                       |   |                         | (30.6   | )      |                                    |   | 9.3 |   |   |   | (6.0 | ) |   |   | (2.3 | ) |
| Total      Operating Costs, Expenses and Other                    |   |                         | 5,778.0 |   |                                    |   | 14,566.9 |   |   |   | 5,351.9 |   |   |   | 3,960.3 |   |
|                                                              |   |                         |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Income (Loss)                                      |   |                         | 1,407.2 |   |                                    |   | (2,472.1 | ) |   |   | 1,042.8 |   |   |   | 204.8 |   |
|                                                         |   |                         |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Other      Income (Expense)                                       |   |                         |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      from equity investments                             |   |                         | 221.9   |   |                                    |   | 201.1 |   |   |   | 56.8 |   |   |   | 40.7 |   |
| Amortization      of excess cost of equity investments            |   |                         | (5.8    | )      |                                    |   | (5.7 | ) |   |   | (3.4 | ) |   |   | (2.4 | ) |
| Interest,      net                                                |   |                         | (573.4  | )      |                                    |   | (628.3 | ) |   |   | (594.3 | ) |   |   | (250.2 | ) |
| Other,      net                                                   |   |                         | 49.5    |   |                                    |   | 7.0 |   |   |   | 11.6 |   |   |   | 0.6 |   |
| Total      Other Income (Expense)                                 |   |                         | (307.8  | )      |                                    |   | (425.9 | ) |   |   | (529.3 | ) |   |   | (211.3 | ) |
|                                                              |   |                         |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Income      (Loss) from Continuing Operations Before Income Taxes |   |                         | 1,099.4 |   |                                    |   | (2,898.0 | ) |   |   | 513.5 |   |   |   | (6.5 | ) |
| Income      Taxes                                                 |   |                         | (325.6  | )      |                                    |   | (304.3 | ) |   |   | (227.4 | ) |   |   | (135.5 | ) |
| Income      (Loss) from Continuing Operations                     |   |                         | 773.8   |   |                                    |   | (3,202.3 | ) |   |   | 286.1 |   |   |   | (142.0 | ) |
| Income      (Loss) from Discontinued Operations, net of tax       |   |                         | 0.3     |   |                                    |   | (0.9 | ) |   |   | (1.5 | ) |   |   | 298.6 |   |
| Net      Income (Loss)                                            |   |                         | 774.1   |   |                                    |   | (3,203.2 | ) |   |   | 284.6 |   |   |   | 156.6 |   |
| Net      Income Attributable to Noncontrolling Interests          |   |                         | (278.1  | )      |                                    |   | (396.1 | ) |   |   | (37.6 | ) |   |   | (90.7 | ) |
| Net      Income (Loss) Attributable to Kinder Morgan, Inc.        |   | $                            | 496.0   |   |                                    | $      | (3,599.3 | ) |   | $ | 247.0 |   |   | $ | 65.9 |   |

----

|   | Kinder      Morgan, Inc. Form 10-K |
|--------|------------------------------------|

|                                                                                    |   | Successor      Company       |   |   | Predecessor      Company                |   |
|-----------------------------------------------------------------------------------------|--------|------------------------------|--------|--------|-----------------------------------------|--------|
|                                                                                    |   | Year      Ended December 31, |   |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEndedMay      31, |   |
|                                                                                    |   | 2009                         |   |   | 2008                                    |   |   | 2007 |   |   | 2007 |   |
|                                                                                    |   | (In      millions)           |   |   | (In      millions)                      |   |
| Kinder      Morgan, Inc.                                                                |   |                         |   |   |                                    |   |   |   |   |   |   |   |
| Net      income (loss)                                                                  |   | $                            | 496.0  |   |                                    | $      | (3,599.3 | ) |   | $ | 247.0 |   |   | $ | 65.9 |   |
| Other      comprehensive income (loss), net of tax      (see Note 10)         |   |                         |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Change      in fair value of derivatives utilized for      hedging purposes        |   |                         | (138.7 | )      |                                    |   | 212.0 |   |   |   | (249.6 | ) |   |   | (21.3 | ) |
| Reclassification      of change in fair value of derivatives to net    income |   |                         | (39.4  | )      |                                    |   | 117.1 |   |   |   | - |   |   |   | 10.3 |   |
| Foreign      currency translation adjustments                                           |   |                         | 53.9   |   |                                    |   | (68.7 | ) |   |   | 27.6 |   |   |   | 40.1 |   |
| Benefit      plan adjustments                                                           |   |                         | 2.8    |   |                                    |   | (66.5 | ) |   |   | (28.4 | ) |   |   | 9.7 |   |
| Benefit      plan amortization                                                          |   |                         | 6.9    |   |                                    |   | 0.4 |   |   |   | (0.2 | ) |   |   | 1.0 |   |
| Total      other comprehensive income (loss)                                            |   |                         | (114.5 | )      |                                    |   | 194.3 |   |   |   | (250.6 | ) |   |   | 39.8 |   |
| Total      comprehensive income (loss)                                                  |   |                         | 381.5  |   |                                    |   | (3,405.0 | ) |   |   | (3.6 | ) |   |   | 105.7 |   |
|                                                                                    |   |                         |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Noncontrolling      Interests                                                           |   |                         |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                                         |   |                         | 278.1  |   |                                    |   | 396.1 |   |   |   | 37.6 |   |   |   | 90.7 |   |
| Other      comprehensive income (loss), net of tax      (see Note 10)         |   |                         |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Change      in fair value of derivatives utilized for      hedging purposes        |   |                         | (208.8 | )      |                                    |   | 295.4 |   |   |   | (389.0 | ) |   |   | (50.1 | ) |
| Reclassification      of change in fair value of derivatives to net    income |   |                         | 45.7   |   |                                    |   | 301.1 |   |   |   | 137.2 |   |   |   | 56.5 |   |
| Foreign      currency translation adjustments                                           |   |                         | 114.9  |   |                                    |   | (149.6 | ) |   |   | 40.3 |   |   |   | 18.8 |   |
| Benefit      plan adjustments                                                           |   |                         | (1.2   | )      |                                    |   | 1.9 |   |   |   | (1.4 | ) |   |   | (0.2 | ) |
| Benefit      plan amortization                                                          |   |                         | 0.1    |   |                                    |   | (0.3 | ) |   |   | - |   |   |   | - |   |
| Total      other comprehensive income (loss)                                            |   |                         | (49.3  | )      |                                    |   | 448.5 |   |   |   | (212.9 | ) |   |   | 25.0 |   |
| Total      comprehensive income (loss)                                                  |   |                         | 228.8  |   |                                    |   | 844.6 |   |   |   | (175.3 | ) |   |   | 115.7 |   |
|                                                                                    |   |                         |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                                   |   |                         |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss)                                                                  |   |                         | 774.1  |   |                                    |   | (3,203.2 | ) |   |   | 284.6 |   |   |   | 156.6 |   |
| Other      comprehensive income (loss), net of tax      (see Note 10)         |   |                         |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Change      in fair value of derivatives utilized for      hedging purposes        |   |                         | (347.5 | )      |                                    |   | 507.4 |   |   |   | (638.6 | ) |   |   | (71.4 | ) |
| Reclassification      of change in fair value of derivatives to net    income |   |                         | 6.3    |   |                                    |   | 418.2 |   |   |   | 137.2 |   |   |   | 66.8 |   |
| Foreign      currency translation adjustments                                           |   |                         | 168.8  |   |                                    |   | (218.3 | ) |   |   | 67.9 |   |   |   | 58.9 |   |
| Benefit      plan adjustments                                                           |   |                         | 1.6    |   |                                    |   | (64.6 | ) |   |   | (29.8 | ) |   |   | 9.5 |   |
| Benefit      plan amortization                                                          |   |                         | 7.0    |   |                                    |   | 0.1 |   |   |   | (0.2 | ) |   |   | 1.0 |   |
| Total      other comprehensive income (loss)                                            |   |                         | (163.8 | )      |                                    |   | 642.8 |   |   |   | (463.5 | ) |   |   | 64.8 |   |
| Total      comprehensive income (loss)                                                  |   | $                            | 610.3  |   |                                    | $      | (2,560.4 | ) |   | $ | (178.9 | ) |   | $ | 221.4 |   |

----

|   | Kinder      Morgan, Inc. Form 10-K |
|--------|------------------------------------|

|                                                                                                              |   | December      31,  |     |
|-------------------------------------------------------------------------------------------------------------------|--------|--------------------|----------|
|                                                                                                              |   | 2009               |     |   | 2008 |   |
|                                                                                                              |   | (In      millions) |     |
| ASSETS                                                                                                            |   |               |     |   |   |   |
| Current      Assets                                                                                               |   |               |     |   |   |   |
| Cash      and cash equivalents                                                                                    |   | $                  | 165.6    |   |   | $ | 118.6 |   |
| Restricted      deposits                                                                                          |   |               | 52.5     |   |   |   | - |   |
| Accounts,      notes and interest receivable, net                                                                 |   |               | 921.6    |   |   |   | 992.5 |   |
| Inventories                                                                                                       |   |               | 71.9     |   |   |   | 44.2 |   |
| Gas      in underground storage                                                                                   |   |               | 43.5     |   |   |   | - |   |
| Fair      value of derivative contracts                                                                           |   |               | 20.8     |   |   |   | 115.2 |   |
| Other      current assets                                                                                         |   |               | 109.7    |   |   |   | 46.7 |   |
| Total      Current Assets                                                                                         |   |               | 1,385.6  |   |   |   | 1,317.2 |   |
|                                                                                                              |   |               |     |   |   |   |   |   |
| Property,      plant and equipment, net                                                                           |   |               | 16,803.5 |   |   |   | 16,109.8 |   |
| Investments                                                                                                       |   |               | 3,695.6  |   |   |   | 1,827.4 |   |
| Notes      receivable                                                                                             |   |               | 190.6    |   |   |   | 178.1 |   |
| Goodwill                                                                                                          |   |               | 4,744.3  |   |   |   | 4,698.7 |   |
| Other      intangibles, net                                                                                       |   |               | 259.8    |   |   |   | 251.5 |   |
| Fair      value of derivative contracts                                                                           |   |               | 293.3    |   |   |   | 828.0 |   |
| Deferred      charges and other assets                                                                            |   |               | 213.6    |   |   |   | 234.2 |   |
| Total      Assets                                                                                                 |   | $                  | 27,586.3 |   |   | $ | 25,444.9 |   |
|                                                                                                              |   |               |     |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                                   |   |               |     |   |   |   |   |   |
| Current      Liabilities                                                                                          |   |               |     |   |   |   |   |   |
| Current      portion of debt                                                                                      |   | $                  | 768.7    |   |   | $ | 302.5 |   |
| Cash      book overdrafts                                                                                         |   |               | 36.6     |   |   |   | 45.2 |   |
| Accounts      payable                                                                                             |   |               | 620.8    |   |   |   | 849.8 |   |
| Accrued      interest                                                                                             |   |               | 292.1    |   |   |   | 241.9 |   |
| Accrued      taxes                                                                                                |   |               | 58.6     |   |   |   | 152.1 |   |
| Deferred      revenues                                                                                            |   |               | 76.1     |   |   |   | 41.2 |   |
| Fair      value of derivative contracts                                                                           |   |               | 272.0    |   |   |   | 129.5 |   |
| Accrued      other current liabilities                                                                            |   |               | 194.6    |   |   |   | 252.5 |   |
| Total      Current Liabilities                                                                                    |   |               | 2,319.5  |   |   |   | 2,014.7 |   |
|                                                                                                              |   |               |     |   |   |   |   |   |
| Long-term      Liabilities and Deferred Credits                                                                   |   |               |     |   |   |   |   |   |
| Long-term      Debt                                                                                               |   |               |     |   |   |   |   |   |
| Outstanding                                                                                                       |   |               | 12,779.7 |   |   |   | 11,055.8 |   |
| Preferred      interest in general partner of Kinder Morgan Energy    Partners                                    |   |               | 100.0    |   |   |   | 100.0 |   |
| Value      of interest rate swaps                                                                                 |   |               | 361.0    |   |   |   | 971.0 |   |
| Total      Long-term Debt                                                                                         |   |               | 13,240.7 |   |   |   | 12,126.8 |   |
| Deferred      income taxes                                                                                        |   |               | 2,039.9  |   |   |   | 2,081.3 |   |
| Fair      value of derivative contracts                                                                           |   |               | 469.6    |   |   |   | 92.2 |   |
| Other      long-term liabilities and deferred credits                                                             |   |               | 670.5    |   |   |   | 653.0 |   |
| Total      Long-Term Liabilities and Deferred Credits                                                             |   |               | 16,420.7 |   |   |   | 14,953.3 |   |
|                                                                                                              |   |               |     |   |   |   |   |   |
| Total      Liabilities                                                                                            |   |               | 18,740.2 |   |   |   | 16,968.0 |   |
|                                                                                                              |   |               |     |   |   |   |   |   |
| Commitments      and Contingencies (Notes 12 and 16)                                                              |   |               |     |   |   |   |   |   |
| Stockholders’      Equity                                                                                   |   |               |     |   |   |   |   |   |
| Common      stock – authorized and outstanding – 100 shares, par value      $0.01 per share |   |               | -        |   |   |   | - |   |
| Additional      paid-in capital                                                                                   |   |               | 7,845.7  |   |   |   | 7,810.0 |   |
| Retained      deficit                                                                                             |   |               | (3,506.3 | ) |   |   | (3,352.3 | ) |
| Accumulated      other comprehensive loss                                                                         |   |               | (167.9   | ) |   |   | (53.4 | ) |
| Total      Kinder Morgan, Inc. Stockholder’s Equity                                                         |   |               | 4,171.5  |   |   |   | 4,404.3 |   |
| Noncontrolling      interests                                                                                     |   |               | 4,674.6  |   |   |   | 4,072.6 |   |
| Total      Stockholders’ Equity                                                                             |   |               | 8,846.1  |   |   |   | 8,476.9 |   |
| Total      Liabilities and Stockholders’ Equity                                                             |   | $                  | 27,586.3 |   |   | $ | 25,444.9 |   |

----

|   | Kinder      Morgan, Inc. Form 10-K |
|--------|------------------------------------|

|                                                                                                                               |   | Successor      Company       |     |   | Predecessor      Company                |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|----------|--------|-----------------------------------------|--------|
|                                                                                                                               |   | Year      Ended December 31, |     |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEndedMay      31, |   |
|                                                                                                                               |   | 2009                         |     |   | 2008                                    |   |   | 2007 |   |   | 2007 |   |
|                                                                                                                               |   | (In      millions)           |     |   | (In      millions)                      |   |
| Cash      Flows From Operating Activities                                                                                          |   |                         |     |   |                                    |   |   |   |   |   |   |   |
| Net      income (loss)                                                                                                             |   | $                            | 774.1    |   |                                    | $      | (3,203.2 | ) |   | $ | 284.6 |   |   | $ | 156.6 |   |
| Adjustments      to reconcile net income to net cash from      operating activities                                           |   |                         |     |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Loss      (income) from discontinued operations, net of tax                                                                        |   |                         | (0.3     | )      |                                    |   | 0.9 |   |   |   | 11.9 |   |   |   | (287.9 | ) |
| Loss      on early extinguishment of debt                                                                                          |   |                         | -        |   |                                    |   | 23.6 |   |   |   | - |   |   |   | 4.4 |   |
| Depreciation,      depletion and amortization                                                                                      |   |                         | 1,070.2  |   |                                    |   | 918.4 |   |   |   | 476.2 |   |   |   | 264.9 |   |
| Impairment      of goodwill                                                                                                        |   |                         | -        |   |                                    |   | 4,033.3 |   |   |   | - |   |   |   | 377.1 |   |
| Deferred      income taxes                                                                                                         |   |                         | 59.0     |   |                                    |   | (496.4 | ) |   |   | (89.8 | ) |   |   | 138.7 |   |
| Amortization      of excess cost of equity investments                                                                             |   |                         | 5.8      |   |                                    |   | 5.7 |   |   |   | 3.4 |   |   |   | 2.4 |   |
| Income      from the allowance for equity funds used      during construction                                                 |   |                         | (22.7    | )      |                                    |   | (10.9 | ) |   |   | - |   |   |   | - |   |
| (Income)      loss from the sale or casualty of property, plant and equipment and      other net assets                       |   |                         | (30.4    | )      |                                    |   | 9.2 |   |   |   | (6.3 | ) |   |   | (4.4 | ) |
| Earnings      from equity investments                                                                                              |   |                         | (221.9   | )      |                                    |   | (201.1 | ) |   |   | (57.7 | ) |   |   | (41.5 | ) |
| Mark-to-market      interest rate swap gain                                                                                        |   |                         | -        |   |                                    |   | (19.8 | ) |   |   | - |   |   |   | - |   |
| Distributions      from equity investments                                                                                         |   |                         | 277.0    |   |                                    |   | 241.6 |   |   |   | 86.5 |   |   |   | 48.2 |   |
| Proceeds      from (payment for) termination of interest rate      swap agreements                                            |   |                         | 146.0    |   |                                    |   | 192.0 |   |   |   | (2.2 | ) |   |   | 51.9 |   |
| Pension      contributions in excess of expense                                                                                    |   |                         | (7.7     | )      |                                    |   | - |   |   |   | - |   |   |   | - |   |
| Changes      in components of working capital                                                                                      |   |                         |     |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Accounts      receivable                                                                                                           |   |                         | 47.6     |   |                                    |   | 60.6 |   |   |   | (64.3 | ) |   |   | (31.9 | ) |
| Inventories                                                                                                                        |   |                         | (20.0    | )      |                                    |   | (7.9 | ) |   |   | (8.1 | ) |   |   | (1.7 | ) |
| Other      current assets                                                                                                          |   |                         | (93.6    | )      |                                    |   | (16.9 | ) |   |   | (13.9 | ) |   |   | (83.7 | ) |
| Accounts      payable                                                                                                              |   |                         | (180.5   | )      |                                    |   | (99.3 | ) |   |   | 68.7 |   |   |   | 26.3 |   |
| Accrued      interest                                                                                                              |   |                         | 50.2     |   |                                    |   | 0.7 |   |   |   | 65.9 |   |   |   | (22.5 | ) |
| Accrued      taxes                                                                                                                 |   |                         | (131.0   | )      |                                    |   | 109.0 |   |   |   | 142.5 |   |   |   | (114.0 | ) |
| Accrued      liabilities                                                                                                           |   |                         | (125.0   | )      |                                    |   | (119.1 | ) |   |   | (35.5 | ) |   |   | (59.6 | ) |
| Rate      reparations, refunds and other litigation reserve    adjustments                                                         |   |                         | 2.5      |   |                                    |   | (13.7 | ) |   |   | 140.0 |   |   |   | - |   |
| Other,      net                                                                                                                    |   |                         | (11.3    | )      |                                    |   | (9.1 | ) |   |   | 45.8 |   |   |   | 69.9 |   |
| Cash      Flows Provided by Continuing Operations                                                                                  |   |                         | 1,588.0  |   |                                    |   | 1,397.6 |   |   |   | 1,047.7 |   |   |   | 493.2 |   |
| Net      Cash Flows (Used in) Provided by Discontinued Operations                                                                  |   |                         | (0.5     | )      |                                    |   | (0.8 | ) |   |   | (3.2 | ) |   |   | 109.8 |   |
| Net      Cash Provided by Operating Activities                                                                                     |   |                         | 1,587.5  |   |                                    |   | 1,396.8 |   |   |   | 1,044.5 |   |   |   | 603.0 |   |
|                                                                                                                               |   |                         |     |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Cash      Flows From Investing Activities                                                                                          |   |                         |     |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Purchase      of Predecessor Stock                                                                                                 |   |                         | -        |   |                                    |   | - |   |   |   | (11,534.3 | ) |   |   | - |   |
| Proceeds      from sale of 80% interest in NGPL PipeCo LLC, net of $1.1 cash      sold                                   |   |                         | -        |   |                                    |   | 2,899.3 |   |   |   | - |   |   |   | - |   |
| Proceeds      from (investments in) NGPL PipeCo LLC restricted cash                                                                |   |                         | -        |   |                                    |   | 3,106.4 |   |   |   | (3,030.0 | ) |   |   | - |   |
| Acquisitions      of assets and equity investments                                                                                 |   |                         | (328.9   | )      |                                    |   | (47.6 | ) |   |   | (122.0 | ) |   |   | (42.1 | ) |
| Repayments      from (loans to) customers                                                                                          |   |                         | 109.6    |   |                                    |   | (109.6 | ) |   |   | - |   |   |   | - |   |
| Capital      expenditures                                                                                                          |   |                         | (1,324.3 | )      |                                    |   | (2,545.3 | ) |   |   | (1,287.0 | ) |   |   | (652.8 | ) |
| Sale      or casualty of property, plant and equipment, investments and      other net assets, net of removal costs |   |                         | 47.9     |   |                                    |   | 111.1 |   |   |   | 301.3 |   |   |   | 6.5 |   |
| (Investments      in) net proceeds from margin deposits                                                                            |   |                         | (18.5    | )      |                                    |   | 71.0 |   |   |   | (39.3 | ) |   |   | (54.8 | ) |
| Investments      in Restricted deposits                                                                                            |   |                         | (37.2    | )      |                                    |   | - |   |   |   | - |   |   |   | - |   |
| Contributions      to investments                                                                                                  |   |                         | (2,051.8 | )      |                                    |   | (366.2 | ) |   |   | (246.4 | ) |   |   | (29.7 | ) |
| Distributions      from equity investments in excess of    cumulative earnings                                                |   |                         | 125.7    |   |                                    |   | 98.1 |   |   |   | - |   |   |   | - |   |
| Other,      net                                                                                                                    |   |                         | -        |   |                                    |   | (7.2 | ) |   |   | 10.0 |   |   |   | 8.4 |   |
| Net      Cash Flows (Used in) Provided by Continuing      Investing Activities                                                |   |                         | (3,477.5 | )      |                                    |   | 3,210.0 |   |   |   | (15,947.7 | ) |   |   | (764.5 | ) |
| Net      Cash Flows Provided by Discontinued    Investing Activities                                                          |   |                         | -        |   |                                    |   | - |   |   |   | 196.6 |   |   |   | 1,488.2 |   |
| Net      Cash (Used in) Provided by Investing Activities                                                                           |   | $                            | (3,477.5 | )      |                                    | $      | 3,210.0 |   |   | $ | (15,751.1 | ) |   | $ | 723.7 |   |

----

|   | Kinder      Morgan, Inc. Form 10-K |
|--------|------------------------------------|

|                                                                              |   | Successor      Company       |     |   | Predecessor      Company                |   |
|-----------------------------------------------------------------------------------|--------|------------------------------|----------|--------|-----------------------------------------|--------|
|                                                                              |   | Year      Ended December 31, |     |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEndedMay      31, |   |
|                                                                              |   | 2009                         |     |   | 2008                                    |   |   | 2007 |   |   | 2007 |   |
|                                                                              |   | (In      millions)           |     |   | (In      millions)                      |   |
| Cash      Flows From Financing Activities                                         |   |                         |     |   |                                    |   |   |   |   |   |   |   |
| Issuance      of debt                                                             |   | $                            | 7,920.8  |   |                                    | $      | 10,495.8 |   |   | $ | 13,038.9 |   |   | $ | 3,383.4 |   |
| Payment      of debt                                                              |   |                         | (5,728.8 | )      |                                    |   | (15,136.5 | ) |   |   | (5,115.7 | ) |   |   | (2,933.3 | ) |
| Proceeds      from issuance of Kinder Morgan, G.P., Inc. preferred stock          |   |                         | -        |   |                                    |   | - |   |   |   | 100.0 |   |   |   | - |   |
| Repayments      from related party                                                |   |                         | 3.7      |   |                                    |   | 2.7 |   |   |   | 10.9 |   |   |   | 2.3 |   |
| Discount      (premium) on early extinguishment of debt                           |   |                         | -        |   |                                    |   | 69.2 |   |   |   | - |   |   |   | (4.2 | ) |
| Debt      issue costs                                                             |   |                         | (16.9    | )      |                                    |   | (15.9 | ) |   |   | (81.5 | ) |   |   | (13.1 | ) |
| (Decrease)      increase in cash book overdrafts                                  |   |                         | (8.5     | )      |                                    |   | 14.5 |   |   |   | (14.0 | ) |   |   | (14.9 | ) |
| Proceeds      from issuance of shares by Kinder Morgan Management, LLC            |   |                         | -        |   |                                    |   | - |   |   |   | - |   |   |   | 297.9 |   |
| Excess      tax benefits from share-based payments                                |   |                         | -        |   |                                    |   | - |   |   |   | - |   |   |   | 56.7 |   |
| Cash      paid to share-based award holders due to Going Private      transaction |   |                         | -        |   |                                    |   | - |   |   |   | (181.1 | ) |   |   | - |   |
| Contributions      from Successor Investors                                       |   |                         | -        |   |                                    |   | - |   |   |   | 5,112.0 |   |   |   | - |   |
| Proceeds      from issuance of other common stock                                 |   |                         | -        |   |                                    |   | - |   |   |   | - |   |   |   | 9.9 |   |
| Cash      dividends                                                               |   |                         | (650.0   | )      |                                    |   | - |   |   |   | - |   |   |   | (234.9 | ) |
| Contributions      from noncontrolling interests                                  |   |                         | 1,155.6  |   |                                    |   | 561.5 |   |   |   | 342.9 |   |   |   | - |   |
| Distributions      to noncontrolling interests                                    |   |                         | (744.0   | )      |                                    |   | (630.3 | ) |   |   | (259.6 | ) |   |   | (248.9 | ) |
| Other,      net                                                                   |   |                         | (0.9     | )      |                                    |   | 10.9 |   |   |   | 4.0 |   |   |   | (0.1 | ) |
| Net      Cash Provided by (Used in) Continuing Financing Activities               |   |                         | 1,931.0  |   |                                    |   | (4,628.1 | ) |   |   | 12,956.8 |   |   |   | 300.8 |   |
| Net      Cash Provided by Discontinued Financing Activities                       |   |                         | -        |   |                                    |   | - |   |   |   | - |   |   |   | 140.1 |   |
| Net      Cash Provided by (Used in) Financing Activities                          |   |                         | 1,931.0  |   |                                    |   | (4,628.1 | ) |   |   | 12,956.8 |   |   |   | 440.9 |   |
|                                                                              |   |                         |     |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Effect      of Exchange Rate Changes on Cash and Cash Equivalents                 |   |                         | 6.0      |   |                                    |   | (8.7 | ) |   |   | (2.8 | ) |   |   | 7.6 |   |
|                                                                              |   |                         |     |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Cash      Balance Included in Assets Held for Sale                                |   |                         | -        |   |                                    |   | - |   |   |   | (1.1 | ) |   |   | (2.7 | ) |
|                                                                              |   |                         |     |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Increase      (decrease) in Cash and Cash Equivalents                             |   |                         | 47.0     |   |                                    |   | (30.0 | ) |   |   | (1,753.7 | ) |   |   | 1,772.5 |   |
| Cash      and Cash Equivalents, beginning of period                               |   |                         | 118.6    |   |                                    |   | 148.6 |   |   |   | 1,902.3 |   |   |   | 129.8 |   |
| Cash      and Cash Equivalents, end of period                                     |   | $                            | 165.6    |   |                                    | $      | 118.6 |   |   | $ | 148.6 |   |   | $ | 1,902.3 |   |
|                                                                              |   |                         |     |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Noncash      Investing and Financing Activities                                   |   |                         |     |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Assets      acquired by the assumption or incurrence of liabilities               |   | $                            | 7.7      |   |                                    | $      | 4.8 |   |   | $ | 1.2 |   |   | $ | 18.5 |   |
| Assets      acquired by contributions from noncontrolling interests               |   | $                            | 5.0      |   |                                    | $      | - |   |   | $ | - |   |   | $ | 15.0 |   |
| Interest      expense recognized from early extinguishment of debt                |   | $                            | -        |   |                                    | $      | 87.5 |   |   | $ | - |   |   | $ | - |   |
| Subordinated      notes acquired by exchange of preferred equity interest         |   | $                            | -        |   |                                    | $      | 111.4 |   |   | $ | - |   |   | $ | - |   |
|                                                                              |   |                         |     |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental      Disclosures of Cash Flow Information                            |   |                         |     |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Cash      paid during the period for interest (net of capitalized      interest)  |   | $                            | 572.8    |   |                                    | $      | 649.9 |   |   | $ | 586.5 |   |   | $ | 381.8 |   |
| Cash      paid during the period for income taxes                                 |   | $                            | 401.1    |   |                                    | $      | 657.3 |   |   | $ | 146.4 |   |   | $ | 133.3 |   |

----

|   | Kinder      Morgan, Inc. Form 10-K |
|--------|------------------------------------|

|                                                                                                                      |   | Successor      Company       |   |   | Predecessor      Company |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|--------|--------------------------|--------|
|                                                                                                                      |   | Year      Ended December 31, |   |   | Seven      Months Ended  |   |   | Five      Months Ended |   |
|                                                                                                                      |   | 2009                         |   |   | 2008                     |   |   | December      31,2007 |   |   | May      31, 2007 |   |
|                                                                                                                      |   | Shares                       |   |   | Amount                   |   |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |
| Common Stock                                                                                                         |   |                         |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning balance                                                                                                    |   |                         | 100    |   |                     | $      | - |   |   |   | 100 |   |   | $ | - |   |   |   | 100 |   |   | $ | - |   |   |   | 149,166,709 |   |   | $ | 745.8 |   |
| Employee benefit plans                                                                                          |   |                         | -      |   |                     |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 149,894 |   |   |   | 0.8 |   |
| Ending balance                                                                                                       |   |                         | 100    |   |                     |   | - |   |   |   | 100 |   |   |   | - |   |   |   | 100 |   |   |   | - |   |   |   | 149,316,603 |   |   |   | 746.6 |   |
|                                                                                                                      |   |                         |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Additional Paid-in Capital                                                                                      |   |                         |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning balance                                                                                                    |   |                         |   |   |                     |   | 7,810.0 |   |   |   |   |   |   |   | 7,822.2 |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | 3,048.9 |   |
| MBO purchase price                                                                                              |   |                         |   |   |                     |   | - |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | 7,831.2 |   |   |   |   |   |   |   | - |   |
| Impact of Kinder Morgan Energy Partners’      equity transactions (Note 10) |   |                         |   |   |                     |   | 28.1 |   |   |   |   |   |   |   | (19.8 | ) |   |   |   |   |   |   | (13.4 | ) |   |   |   |   |   |   | 3.4 |   |
| A-1 and B unit amortization                                                                           |   |                         |   |   |                     |   | 7.6 |   |   |   |   |   |   |   | 7.6 |   |   |   |   |   |   |   | 4.4 |   |   |   |   |   |   |   | - |   |
| Employee benefit plans                                                                                          |   |                         |   |   |                     |   | - |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | 7.7 |   |
| Tax benefits from employee benefit plans                                                         |   |                         |   |   |                     |   | - |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | 56.7 |   |
| Deferred compensation (Note 12)                                                                            |   |                         |   |   |                     |   | - |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | 21.9 |   |
| Ending balance                                                                                                       |   |                         |   |   |                     |   | 7,845.7 |   |   |   |   |   |   |   | 7,810.0 |   |   |   |   |   |   |   | 7,822.2 |   |   |   |   |   |   |   | 3,138.6 |   |
|                                                                                                                      |   |                         |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Retained Earnings (Deficit)                                                                                     |   |                         |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning balance                                                                                                    |   |                         |   |   |                     |   | (3,352.3 | ) |   |   |   |   |   |   | 247.0 |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | 778.7 |   |
| Net income (loss)                                                                                               |   |                         |   |   |                     |   | 496.0 |   |   |   |   |   |   |   | (3,599.3 | ) |   |   |   |   |   |   | 247.0 |   |   |   |   |   |   |   | 65.9 |   |
| Cash dividends                                                                                                       |   |                         |   |   |                     |   | (650.0 | ) |   |   |   |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | (234.9 | ) |
| Initialization of income tax reserves  (Note 4)                                        |   |                         |   |   |                     |   | - |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | (4.8 | ) |
| Ending balance                                                                                                       |   |                         |   |   |                     |   | (3,506.3 | ) |   |   |   |   |   |   | (3,352.3 | ) |   |   |   |   |   |   | 247.0 |   |   |   |   |   |   |   | 604.9 |   |
|                                                                                                                      |   |                         |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Treasury Stock                                                                                                       |   |                         |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning balance                                                                                                    |   |                         | -      |   |                     |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (15,022,751 | ) |   |   | (915.9 | ) |
| Employee benefit plans                                                                                          |   |                         | -      |   |                     |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (7,384 | ) |   |   | (0.5 | ) |
| Ending balance                                                                                                       |   |                         | -      |   |                     |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (15,030,135 | ) |   |   | (916.4 | ) |
|                                                                                                                      |   |                         |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated Other Comprehensive Income (Loss)                                                         |   |                         |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning balance                                                                                                    |   |                         |   |   |                     |   | (53.4 | ) |   |   |   |   |   |   | (247.7 | ) |   |   |   |   |   |   | 2.9 |   |   |   |   |   |   |   | (135.9 | ) |
| Change in fair value of derivatives utilized for      hedging purposes            |   |                         |   |   |                     |   | (138.7 | ) |   |   |   |   |   |   | 212.0 |   |   |   |   |   |   |   | (249.6 | ) |   |   |   |   |   |   | (21.3 | ) |
| Reclassification of change in fair value of      derivatives to net income                  |   |                         |   |   |                     |   | (39.4 | ) |   |   |   |   |   |   | 117.1 |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | 10.3 |   |
| Foreign currency translation adjustments                                                                   |   |                         |   |   |                     |   | 53.9 |   |   |   |   |   |   |   | (68.7 | ) |   |   |   |   |   |   | 27.6 |   |   |   |   |   |   |   | 40.1 |   |
| Benefit plan adjustments                                                                                        |   |                         |   |   |                     |   | 2.8 |   |   |   |   |   |   |   | (66.5 | ) |   |   |   |   |   |   | (28.4 | ) |   |   |   |   |   |   | 9.7 |   |
| Benefit plan amortization                                                                                       |   |                         |   |   |                     |   | 6.9 |   |   |   |   |   |   |   | 0.4 |   |   |   |   |   |   |   | (0.2 | ) |   |   |   |   |   |   | 1.0 |   |
| Ending balance                                                                                                       |   |                         |   |   |                     |   | (167.9 | ) |   |   |   |   |   |   | (53.4 | ) |   |   |   |   |   |   | (247.7 | ) |   |   |   |   |   |   | (96.1 | ) |
|                                                                                                                      |   |                         |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Kinder Morgan, Inc. Stockholder’s Equity                                             |   |                         | 100    |   |                     |   | 4,171.5 |   |   |   | 100 |   |   |   | 4,404.3 |   |   |   | 100 |   |   |   | 7,821.5 |   |   |   | 134,286,468 |   |   |   | 3,477.6 |   |

----

|   | Kinder      Morgan, Inc. Form 10-K |
|--------|------------------------------------|

|                                                                                                                    |   | Successor      Company       |   |   | Predecessor      Company |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|--------|--------------------------|--------|
|                                                                                                                    |   | Year      Ended December 31, |   |   | Seven      Months Ended  |   |   | Five      Months Ended |   |
|                                                                                                                    |   | 2009                         |   |   | 2008                     |   |   | December      31,2007 |   |   | May      31, 2007 |   |
|                                                                                                                    |   | Shares                       |   |   | Amount                   |   |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |
| Noncontrolling      interests                                                                                           |   |                         |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning balance                                                                                                  |   |                         |   |   |                     | $      | 4,072.6 |   |   |   |   |   |   | $ | 3,314.0 |   |   |   |   |   |   | $ | 3,343.9 |   |   |   |   |   |   | $ | 3,095.4 |   |
| Impact from equity transactions of Kinder      Morgan Energy Partners                |   |                         |   |   |                     |   | (43.8 | ) |   |   |   |   |   |   | (21.4 | ) |   |   |   |   |   |   | (12.9 | ) |   |   |   |   |   |   | (22.7 | ) |
| Issuance of shares by Kinder Morgan      Management, LLC                                  |   |                         |   |   |                     |   | - |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | 317.0 |   |
| Gain on sale of discontinued operations                                                        |   |                         |   |   |                     |   | - |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | (56.1 | ) |   |   |   |   |   |   |   |   |
| Distributions to noncontrolling interests                                                                |   |                         |   |   |                     |   | (745.5 | ) |   |   |   |   |   |   | (630.7 | ) |   |   |   |   |   |   | (260.5 | ) |   |   |   |   |   |   | (248.9 | ) |
| Contributions from noncontrolling interests                                                              |   |                         |   |   |                     |   | 1,160.6 |   |   |   |   |   |   |   | 561.5 |   |   |   |   |   |   |   | 343.5 |   |   |   |   |   |   |   | 15.0 |   |
| Kinder Morgan Energy Partners’ TransMountain      Pipeline Acquisition                   |   |                         |   |   |                     |   | 0.2 |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | (4.7 | ) |   |   |   |   |   |   | 72.1 |   |
| Net income included in discontinued operations                                                 |   |                         |   |   |                     |   | - |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | 141.6 |   |   |   |   |   |   |   | - |   |
| Other                                                                                                                   |   |                         |   |   |                     |   | 1.7 |   |   |   |   |   |   |   | 4.6 |   |   |   |   |   |   |   | (5.5 | ) |   |   |   |   |   |   | 0.3 |   |
| Comprehensive income (loss)                                                                                   |   |                         |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                         |   |                         |   |   |                     |   | 278.1 |   |   |   |   |   |   |   | 396.1 |   |   |   |   |   |   |   | 37.6 |   |   |   |   |   |   |   | 90.7 |   |
| Change in fair value of derivatives used for      hedging purposes              |   |                         |   |   |                     |   | (208.8 | ) |   |   |   |   |   |   | 295.4 |   |   |   |   |   |   |   | (389.0 | ) |   |   |   |   |   |   | (50.1 | ) |
| Reclassification of change in fair value of      derivatives to net income |   |                         |   |   |                     |   | 45.7 |   |   |   |   |   |   |   | 301.1 |   |   |   |   |   |   |   | 137.2 |   |   |   |   |   |   |   | 56.5 |   |
| Foreign currency translation adjustments                                                                 |   |                         |   |   |                     |   | 114.9 |   |   |   |   |   |   |   | (149.6 | ) |   |   |   |   |   |   | 40.3 |   |   |   |   |   |   |   | 18.8 |   |
| Benefit plan adjustments                                                                                      |   |                         |   |   |                     |   | (1.2 | ) |   |   |   |   |   |   | 1.9 |   |   |   |   |   |   |   | (1.4 | ) |   |   |   |   |   |   | (0.2 | ) |
| Benefit plan amortization                                                                                     |   |                         |   |   |                     |   | 0.1 |   |   |   |   |   |   |   | (0.3 | ) |   |   |   |   |   |   | - |   |   |   |   |   |   |   | - |   |
| Total comprehensive income (loss)                                                                        |   |                         |   |   |                     |   | 228.8 |   |   |   |   |   |   |   | 844.6 |   |   |   |   |   |   |   | (175.3 | ) |   |   |   |   |   |   | 115.7 |   |
| Ending balance                                                                                                     |   |                         |   |   |                     |   | 4,674.6 |   |   |   |   |   |   |   | 4,072.6 |   |   |   |   |   |   |   | 3,314.0 |   |   |   |   |   |   |   | 3,343.9 |   |
|                                                                                                                    |   |                         |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Stockholders’ Equity                                                                              |   |                         | 100    |   |                     | $      | 8,846.1 |   |   |   | 100 |   |   | $ | 8,476.9 |   |   |   | 100 |   |   | $ | 11,135.5 |   |   |   | 134,286,468 |   |   | $ | 6,821.5 |   |

----

----

| The      total purchase price consisted of the following |   |   |     |
|----------------------------------------------------------|--------|--------|----------|
| Cash      paid                                           |   | $      | 5,112.0  |   |
| Kinder      Morgan, Inc. shares contributed              |   |   | 2,719.2  |   |
| Equity      contributed                                  |   |   | 7,831.2  |   |
| Cash      from issuances of long-term debt               |   |   | 4,696.2  |   |
| Total      purchase price                                |   | $      | 12,527.4 |   |
|                                                |   |   |     |   |
| The      allocation of the purchase price is as follows  |   |   |     |   |
| Current      assets                                      |   | $      | 1,551.2  |   |
| Investments                                              |   |   | 897.8    |   |
| Goodwill                                                 |   |   | 13,786.1 |   |
| Property,      plant and equipment, net                  |   |   | 15,281.6 |   |
| Deferred      charges and other assets                   |   |   | 1,639.8  |   |
| Current      liabilities                                 |   |   | (3,279.5 | ) |
| Deferred      income taxes                               |   |   | (2,392.8 | ) |
| Other      long-term liabilities and deferred credits    |   |   | (1,786.3 | ) |
| Long-term      debt                                      |   |   | (9,855.9 | ) |
| Noncontrolling      interests                            |   |   | (3,314.6 | ) |
|                                                     |   | $      | 12,527.4 |   |

|                                                                              |   | Number      ofShares |   |   | Price      perShare |   |   | Total      Value |   |
|-----------------------------------------------------------------------------------|--------|----------------------|--------|--------|---------------------|--------|--------|------------------|--------|
| Shares      purchased with cash                                                   |   |                 | 107.6  |   |                | $      | 107.50 |             |   | $ | 11,561.3 |   |
|                                                                              |   |                 |   |   |                |   |   |             |   |   |   |   |
| Shares      contributed                                                           |   |                 |   |   |                |   |   |             |   |   |   |   |
| Richard      D. Kinder                                                            |   |                 | 24.0   |   |                | $      | 101.00 |             |   |   | 2,424.0 |   |
| Other      Kinder Morgan, Inc. management and board members                       |   |                 | 2.7    |   |                | $      | 107.50 |             |   |   | 295.2 |   |
| Total      shares contributed                                                     |   |                 | 26.7   |   |                |   |   |             |   |   | 2,719.2 |   |
|                                                                              |   |                 |   |   |                |   |   |             |   |   |   |   |
| Total      shares outstanding as of May 31, 2007                                  |   |                 | 134.3  |   |                |   |   |             |   |   | 14,280.5 |   |
|                                                                              |   |                 |   |   |                |   |   |             |   |   |   |   |
| Less:      portion of shares acquired using Kinder Morgan, Inc. cash on      hand |   |                 |   |   |                |   |   |             |   |   | (1,756.8 | ) |
| Add:      cash contributions by management at or after May 30, 2007               |   |                 |   |   |                |   |   |             |   |   | 3.7 |   |
| purchase      price                                                               |   |                 |   |   |                |   |   |             |   | $ | 12,527.4 |   |

----

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|   |   |   |   |                                                     |   | Allocation      of Purchase Price |
|--------|--------|--------|--------|----------------------------------------------------------|--------|-----------------------------------|
|   |   |   |   |                                                     |   | (in      millions)                |
| Ref.   |   | Date   |   | Acquisition                                              |   | PurchasePrice                     |   | CurrentAssets |   | PropertyPlant      &Equipment |   | DeferredCharges&      Other |   | Goodwill |
| (1)    |   | 1/07   |   | Interest      in Cochin Pipeline                         |   | $                                 | 47.8 |   | $ | - |   | $ | 47.8 |   | $ | - |   | $ | - |
| (2)    |   | 5/07   |   | Vancouver      Wharves Marine Terminal.                  |   |                              | 59.5 |   |   | 6.1 |   |   | 53.4 |   |   | - |   |   | - |
| (3)    |   | 9/07   |   | Marine      Terminals, Inc. Assets.            |   |                              | 102.1 |   |   | 0.2 |   |   | 60.8 |   |   | 22.5 |   |   | 18.6 |
| (4)    |   | 8/08   |   | Wilmington,      North Carolina Liquids Terminal         |   |                              | 12.7 |   |   | - |   |   | 5.9 |   |   | - |   |   | 6.8 |
| (5)    |   | 12/08  |   | Phoenix,      Arizona Products Terminal                  |   |                              | 27.5 |   |   | - |   |   | 27.5 |   |   | - |   |   | - |
| (6)    |   | 4/09   |   | Megafleet      Towing Co., Inc. Assets                   |   |                              | 21.7 |   |   | - |   |   | 7.1 |   |   | 4.0 |   |   | 10.6 |
| (7)    |   | 10/09  |   | Crosstex      Energy, L.P. Natural Gas Treating Business |   |                              | 270.7 |   |   | 15.0 |   |   | 181.7 |   |   | 25.4 |   |   | 48.6 |
| (8)    |   | 11/09  |   | Endeavor      Gathering LLC                    |   |                              | 36.0 |   |   | - |   |   | - |   |   | 36.0 |   |   | - |

----

----

----

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|                                                                | Successor      Company       |   |                                    | PredecessorCompany |   |
|---------------------------------------------------------------------|------------------------------|--------|-----------------------------------------|--------------------|--------|
|                                                                | Year      Ended December 31, |   | Seven      MonthsEndedDecember      31, |               |   | Five      MonthsEndedMay      31, |   |
|                                                                | 2009                         |   | 2008                                    |               | 2007   |   |   | 2007 |   |
| Revenues                                                            |                         | $      | -                                       |               |   | $ | - |   |   | $ | 24.1 |   |   |   | $ | 921.8 |   |
|                                                                |                         |   |                                    |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      (loss) from discontinued operations before income taxes |                         | $      | 0.5                                     |               |   | $ | (0.9 | ) |   | $ | (10.2 | ) |   |   | $ | 393.2 |   |
| Income      taxes                                                   |                         |   | (0.2                                    | )                  |   |   | - |   |   |   | 8.7 |   |   |   |   | (94.6 | ) |
| Income      (loss) from discontinued operations                     |                         | $      | 0.3                                     |               |   | $ | (0.9 | ) |   | $ | (1.5 | ) |   |   | $ | 298.6 |   |

----

|               | Successor      Company       |   |                                    | PredecessorCompany |   |
|--------------------|------------------------------|--------|-----------------------------------------|--------------------|--------|
|               | Year      Ended December 31, |   | Seven      MonthsEndedDecember      31, |               |   | Five      MonthsEndedMay      31, |   |
|               | 2009                         |   | 2008                                    |               | 2007   |   |   | 2007 |   |
| United      States |                         | $      | 1,023.3                                 |               |   | $ | (2,978.7 | ) |   | $ | 511.8 |   |   |   | $ | 369.9 |   |
| Foreign            |                         |   | 76.1                                    |               |   |   | 80.7 |   |   |   | 1.7 |   |   |   |   | (376.4 | ) |
| Total              |                         | $      | 1,099.4                                 |               |   | $ | (2,898.0 | ) |   | $ | 513.5 |   |   |   | $ | (6.5 | ) |

|                        |   | Successor      Company       |   |   | PredecessorCompany                      |   |
|-----------------------------|--------|------------------------------|--------|--------|-----------------------------------------|--------|
|                        |   | Year      Ended December 31, |   |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEndedMay      31, |   |
|                        |   | 2009                         |   |   | 2008                                    |   |   | 2007 |   |   | 2007 |   |
| Current      tax provision  |   |                         |   |   |                                    |   |   |   |   |   |   |   |
| Federal                     |   | $                            | 249.6  |   |                                    | $      | 786.6 |   |   | $ | 268.6 |   |   | $ | (7.0 | ) |
| State                       |   |                         | 16.9   |   |                                    |   | 18.6 |   |   |   | 25.1 |   |   |   | 3.2 |   |
| Foreign                     |   |                         | -      |   |                                    |   | (4.5 | ) |   |   | 23.5 |   |   |   | 0.6 |   |
|                        |   |                         | 266.5  |   |                                    |   | 800.7 |   |   |   | 317.2 |   |   |   | (3.2 | ) |
|                   |   |                         |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Deferred      tax provision |   |                         |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Federal                     |   |                         | 28.4   |   |                                    |   | (439.5 | ) |   |   | (95.2 | ) |   |   | 134.0 |   |
| State                       |   |                         | 0.2    |   |                                    |   | 11.5 |   |   |   | 0.5 |   |   |   | 6.4 |   |
| Foreign                     |   |                         | 30.5   |   |                                    |   | (68.4 | ) |   |   | 4.9 |   |   |   | (1.7 | ) |
|                        |   |                         | 59.1   |   |                                    |   | (496.4 | ) |   |   | (89.8 | ) |   |   | 138.7 |   |
| Total      tax provision    |   | $                            | 325.6  |   |                                    | $      | 304.3 |   |   | $ | 227.4 |   |   | $ | 135.5 |   |

|                                                                                                           |   | Successor      Company       |   |   | Predecessor      Company     |   |
|----------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|--------|------------------------------|--------|
|                                                                                                           |   | Year      Ended December 31, |   |   | Seven Months Ended |   |   | Five Months Ended |   |
|                                                                                                           |   | 2009                         |   |   | 2008                         |   |   | December      31, 2007 |   |   | May      31, 2007 |   |
| Federal      income tax                                                                                        |   | $                            | 384.8  |   |                         |   | 35.0 | % |   | $ | (1,014.3 | ) |   |   | (35.0 | )      % |   | $ | 179.7 |   |   |   | 35.0 | % |   | $ | (2.3 | ) |   |   | (35.0 | )      % |
| Increase (decrease) as a result of:                                                   |   |                         |   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nondeductible      goodwill impairment                                                                         |   |                         | -      |   |                         |   | - | % |   |   | 1,411.7 |   |   |   | 48.7 | % |   |   | (3.5 | ) |   |   | (0.7 | )      % |   |   | 132.0 |   |   |   | 2,039.8 | % |
| Terasen      acquisition financing structure                                                                   |   |                         | -      |   |                         |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (16.6 | ) |   |   | (257.0 | )      % |
| Nondeductible      going private costs                                                                         |   |                         | -      |   |                         |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 30.8 |   |   |   | 475.6 | % |
| Deferred      tax rate change                                                                                  |   |                         | (10.4  | )      |                         |   | (0.9 | )      % |   |   | 17.8 |   |   |   | 0.6 | % |   |   | - |   |   |   | - |   |   |   | 0.5 |   |   |   | (0.2 | )      % |
| Taxes      on foreign earnings                                                                                 |   |                         | 30.2   |   |                         |   | 2.7 | % |   |   | (68.2 | ) |   |   | (2.4 | )      % |   |   | 27.7 |   |   |   | 5.4 | % |   |   | 8.4 |   |   |   | 129.5 | % |
| Net      effects of consolidating Kinder Morgan Energy Partners’ United States      income tax provision |   |                         | (93.5  | )      |                         |   | (8.5 | )      % |   |   | (77.4 | ) |   |   | (2.7 | )      % |   |   | 14.6 |   |   |   | 2.8 | % |   |   | (22.5 | ) |   |   | (348.3 | )      % |
| State      income tax, net of federal benefit                                                                  |   |                         | 24.6   |   |                         |   | 2.2 | % |   |   | 17.1 |   |   |   | 0.6 | % |   |   | 11.1 |   |   |   | 2.2 | % |   |   | 6.9 |   |   |   | 105.6 | % |
| Other                                                                                                          |   |                         | (10.1  | )      |                         |   | (0.9 | )      % |   |   | 17.6 |   |   |   | 0.7 | % |   |   | (2.2 | ) |   |   | (0.4 | )      % |   |   | (1.7 | ) |   |   | (25.4 | )      % |
| Total                                                                                                          |   | $                            | 325.6  |   |                         |   | 29.6 | % |   | $ | 304.3 |   |   |   | 10.5 | % |   | $ | 227.4 |   |   |   | 44.3 | % |   | $ | 135.5 |   |   |   | 2,084.6 | % |

----

|                                    |   | December      31, |    |
|-----------------------------------------|--------|-------------------|---------|
|                                    |   | 2009              |    |   | 2008 |   |
| Deferred      tax assets                |   |              |    |   |   |   |
| Employee      benefits                  |   | $                 | 57.6    |   |   | $ | 79.8 |   |
| Book      accruals                      |   |              | 21.3    |   |   |   | 14.3 |   |
| Net      operating loss carryforwards   |   |              | 11.4    |   |   |   | - |   |
| Interest      rate and currency swaps   |   |              | 24.3    |   |   |   | 7.0 |   |
| Other                                   |   |              | 25.9    |   |   |   | 7.9 |   |
| Total      deferred tax assets          |   |              | 140.5   |   |   |   | 109.0 |   |
| Deferred      tax liabilities           |   |              |    |   |   |   |   |   |
| Property,      plant and equipment      |   |              | 239.9   |   |   |   | 160.0 |   |
| Investments                             |   |              | 1,880.2 |   |   |   | 1,937.2 |   |
| Book      accruals                      |   |              | 4.7     |   |   |   | - |   |
| Derivative      instruments             |   |              | 12.5    |   |   |   | 5.7 |   |
| Prepaid      pension costs              |   |              | -       |   |   |   | 16.6 |   |
| Debt      adjustment                    |   |              | 19.4    |   |   |   | 23.0 |   |
| Other                                   |   |              | 9.5     |   |   |   | 47.8 |   |
| Total      deferred tax liabilities     |   |              | 2,166.2 |   |   |   | 2,190.3 |   |
| Net      deferred tax liabilities       |   | $                 | 2,025.7 |   |   | $ | 2,081.3 |   |
|                               |   |              |    |   |   |   |   |   |
| Current      deferred tax asset         |   | $                 | 14.2    |   |   | $ | - |   |
| Non-current      deferred tax liability |   |              | 2,039.9 |   |   |   | 2,081.3 |   |
| Net      deferred tax liabilities       |   | $                 | 2,025.7 |   |   | $ | 2,081.3 |   |

|                                                    |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|---------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Balance      at beginning of period                     |   | $      | 26.2   |   |   | $      | 41.5   |   |   | $ | 63.1 |   |
| Additions      based on current year tax positions      |   |   | 1.4    |   |   |   | 2.1    |   |   |   | 9.8 |   |
| Additions      based on prior year tax positions        |   |   | 19.3   |   |   |   | 15.9   |   |   |   | 0.5 |   |
| Settlements      with taxing authority                  |   |   | 14.0   |   |   |   | (10.2  | )      |   |   | (21.4 | ) |
| Reductions      due to lapse in statue of limitations   |   |   | (8.9   | )      |   |   | (3.7   | )      |   |   | (2.7 | ) |
| Reductions      for tax positions related to prior year |   |   | -      |   |   |   | (19.4  | )      |   |   | (7.8 | ) |
| Balance      at end of period                           |   | $      | 52.0   |   |   | $      | 26.2   |   |   | $ | 41.5 |   |

----

|                                                                           |   | December      31, |     |
|--------------------------------------------------------------------------------|--------|-------------------|----------|
|                                                                           |   | 2009              |     |   | 2008 |   |
| Kinder      Morgan, Inc.                                                       |   |              |     |   |   |   |
| General      and other                                                         |   | $                 | 45.7     |   |   | $ | 44.4 |   |
| Kinder      Morgan Energy Partners(a)                                          |   |              |     |   |   |   |   |   |
| Natural      gas, liquids, crude oil and carbon dioxide pipelines              |   |              | 6,503.6  |   |   |   | 5,641.5 |   |
| Natural      gas, liquids, carbon dioxide, and terminals station    equipment. |   |              | 9,271.8  |   |   |   | 7,577.0 |   |
| Natural      gas, liquids (including linefill), and transmix processing        |   |              | 220.3    |   |   |   | 210.3 |   |
| Other                                                                          |   |              | 1,671.3  |   |   |   | 2,084.5 |   |
| Accumulated      depreciation, depletion and amortization                      |   |              | (2,002.8 | ) |   |   | (979.0 | ) |
|                                                                           |   |              | 15,709.9 |   |   |   | 14,578.7 |   |
| Land      and land right-of-way                                                |   |              | 519.5    |   |   |   | 201.7 |   |
| Construction      work in process                                              |   |              | 574.1    |   |   |   | 1,329.4 |   |
| Property,      plant and equipment, net                                        |   | $                 | 16,803.5 |   |   | $ | 16,109.8 |   |

| (a) | Includes      the allocation of purchase accounting adjustments associated with the      Going Private transaction (see Note2). |
|-----|---------------------------------------------------------------------------------------------------------------------------------|

|                                |   | Year Ended December 31, |   |
|-------------------------------------|--------|----------------------------------------|--------|
|                                |   | 2009                                   |   |   | 2008 |   |
| Balance      at beginning of period |   | $                                      | 76.5   |   |   | $ | 55.0 |   |
| Liabilities      incurred/revised   |   |                                   | 26.0   |   |   |   | 26.2 |   |
| Liabilities      settled            |   |                                   | (6.2   | ) |   |   | (8.2 | ) |
| Accretion      expense              |   |                                   | 4.6    |   |   |   | 3.5 |   |
| Balance      at end of period       |   | $                                      | 100.9  |   |   | $ | 76.5 |   |

----

|                                                                   |   | Year Ended December 31, |    |
|------------------------------------------------------------------------|--------|----------------------------------------|---------|
|                                                                   |   | 2009                                   |    |   | 2008 |   |
| Rockies      Express Pipeline LLC                                      |   | $                                      | 1,693.4 |   |   | $ | 501.1 |   |
| NGPL      PipeCo LLC                                                   |   |                                   | 698.5   |   |   |   | 717.3 |   |
| Midcontinent      Express Pipeline LLC                                 |   |                                   | 662.3   |   |   |   | - |   |
| Plantation      Pipe Line Company                                      |   |                                   | 340.4   |   |   |   | 343.6 |   |
| Red      Cedar Gathering Company                                       |   |                                   | 145.8   |   |   |   | 138.9 |   |
| Express      pipeline system                                           |   |                                   | 68.0    |   |   |   | 64.9 |   |
| Cortez      Pipeline Company                                           |   |                                   | 11.2    |   |   |   | 13.6 |   |
| Endeavor      Gathering LLC                                            |   |                                   | 36.2    |   |   |   | - |   |
| Subsidiary      trusts holding solely debentures of Kinder Morgan |   |                                   | 8.6     |   |   |   | 8.6 |   |
| All      others                                                        |   |                                   | 18.0    |   |   |   | 26.2 |   |
| Total      equity investments                                          |   |                                   | 3,682.4 |   |   |   | 1,814.2 |   |
| Gulf      Opportunity Zone Bonds                                       |   |                                   | 13.2    |   |   |   | 13.2 |   |
| Total      long-term investments                                       |   | $                                      | 3,695.6 |   |   | $ | 1,827.4 |   |

|   | · | Rockies      Express Pipeline LLC (“Rockies Express”)—Kinder Morgan Energy Partners      operates and owns a 50% ownership interest in Rockies Express, the      surviving legal entity from its December 30, 2009 merger with its parent      entity, West2East Pipeline LLC.  Rockies Express is the sole      owner of the Rockies Express natural gas pipeline system, which began full      operations on November 12, 2009 following the completion of its final      pipeline segment, Rockies Express-East.  The remaining ownership      interests in Rockies Express are owned by Sempra Energy and      ConocoPhillips. Effective December 1, 2009, Kinder Morgan      Energy Partners’ ownership interest in West2East Pipeline LLC was reduced      to 50% (from 51%), ConocoPhillips’ interest was increased to 25% (from      24%), and minimum voting requirements for most matters was increased to      75% (from 51%) of the member interests.  Kinder Morgan Energy      Partners received $31.9 million for the 1% reduction in ownership interest      and we included this amount within “Sale or casualty of property, plant      and equipment, investments and other net assets, net of removal costs” on      the accompanying Consolidated Statement of Cash Flows for the year ended      December 31, 2009.  Sempra Energy continues to own the remaining      25% ownership interest in Rockies Express.  Additionally, in      2009 and 2008, Kinder Morgan Energy Partners made capital contributions of      $1,273.1 million and $306.0 million, respectively, to Rockies Express      (West2East Pipeline LLC before the merger) to partially fund both the      construction costs for the Rockies Express pipeline system and the      repayment of senior notes (which matured in August 2009).  In      2009 and 2008, Kinder Morgan Energy Partners also received, from Rockies      Express, cash distributions of $148.8 million and $82.9 million,      respectively; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | NGPL      PipeCo LLC (“NGPL”)— On February 15, 2008, we sold an 80% ownership      interest in NGPL (formerly MidCon Corp.), which owns Natural Gas Pipeline      of America and certain affiliates, collectively referred to as “NGPL,” to      Myria Acquisition Inc. (“Myria”). Pursuant to the purchase agreement,      Myria acquired all 800 Class B shares and we retained all 200 Class A      shares of NGPL. We will continue to operate NGPL’s assets pursuant to a      15-year operating agreement.  See Note 3 for further discussion      regarding this transaction; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Midcontinent      Express Pipeline LLC (“Midcontinent Express”)—Kinder Morgan Energy      Partners operates and owns a 50% ownership interest in Midcontinent      Express, which was formed in May 2006.  It is the sole owner of      the Midcontinent Express natural gas pipeline system and Energy Transfer      Partners, L.P. owns the remaining 50% ownership interest.  In      2007, Kinder Morgan Energy Partners began making cash contributions for      its share of the construction costs for the Midcontinent Express pipeline      system, and in 2009 and 2008, Kinder Morgan Energy Partners made capital      contributions of $664.5 million and $27.5 million, respectively, to      Midcontinent Express to partially fund its pipeline construction      costs.  Kinder Morgan Energy Partners received cash      distributions of $16.2 |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | million      and $1.9 million in 2009 and 2008, respectively; however, as of December      31, 2008, Kinder Morgan Energy Partners had no net investment in      Midcontinent Express because in 2008, it established and made borrowings      under its own revolving bank credit facility in order to fund its pipeline      construction costs and to make distributions to its member owners to fully      reimburse them for prior contributions.  Accordingly, Kinder      Morgan Energy Partners received an $89.1 million return of capital from      Midcontinent Express in the first quarter of  2008. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | Additionally,      in January 2008, in conjunction with the signing of additional binding      transportation commitments, Midcontinent Express entered into an option      agreement with a subsidiary of MarkWest Energy Partners, L.P. providing it      a one-time right to purchase a 10% ownership interest in the Midcontinent      Express pipeline system.  In September 2009, MarkWest declined      to exercise this option; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Red      Cedar Gathering Company—Kinder Morgan Energy Partners acquired its 49%      ownership interest in the Red Cedar Gathering Company from us on December      31, 1999.  The remaining 51% interest in Red Cedar is owned by      the Southern Ute Indian Tribe.  Red Cedar is the sole owner of      the Red Cedar natural gas gathering, compression and treating      system; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Plantation      Pipe Line Company—Kinder Morgan Energy Partners operates and owns a 51.17%      ownership interest in Plantation Pipe Line Company, the sole owner of the      Plantation refined petroleum products pipeline system.  An      affiliate of ExxonMobil owns the remaining interest.  Each      investor has an equal number of directors on Plantation’s board of      directors, and board approval is required for certain corporate actions      that are considered participating rights; therefore, Kinder Morgan Energy      Partners does not control Plantation Pipe Line Company, and it accounts      for its investment under the equitymethod; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Express      pipeline system—Kinder Morgan Energy Partners acquired our 33      1/3%ownership interest in the Express pipeline system effective August 28,      2008 (discussed in Note 11 “Related Party  Transactions”); |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Endeavor      Gathering LLC—Kinder Morgan Energy Partners acquired a 40% ownership      interest in Endeavor Gathering LLC from GMX Resources Inc. effective      November 1, 2009 (discussed in Note 3 “Acquisitions and Divestitures”);      and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Cortez      Pipeline Company—Kinder Morgan Energy Partners operates and owns a 50%      ownership interest in the Cortez Pipeline Company, the sole owner of the      Cortez carbon dioxide pipeline system.  Kinder Morgan Energy      Partners acquired its ownership interest in Cortez Pipeline Company from      affiliates of Shell in April 2000.  A subsidiary of Exxon Mobil      Corporation owns a 37% ownership interest and Cortez Vickers Pipeline      Company owns the remaining 13% ownership  interest. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                 |   | Successor      Company       |   |   | Predecessor      Company                |   |
|--------------------------------------|--------|------------------------------|--------|--------|-----------------------------------------|--------|
|                                 |   | Year      Ended December 31, |   |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEndedMay      31, |   |
|                                 |   | 2009                         |   |   | 2008                                    |   |   | 2007 |   |   | 2007 |   |
| Rockies      Express                 |   | $                            | 98.5   |   |                                    | $      | 84.9 |   |   | $ | (8.2 | ) |   | $ | (4.2 | ) |
| NGPL                                 |   |                         | 42.5   |   |                                    |   | 40.1 |   |   |   | - |   |   |   | - |   |
| Red      Cedar Gathering Company     |   |                         | 24.9   |   |                                    |   | 26.7 |   |   |   | 16.1 |   |   |   | 11.9 |   |
| Cortez      Pipeline Company         |   |                         | 22.3   |   |                                    |   | 20.8 |   |   |   | 10.5 |   |   |   | 8.7 |   |
| Plantation      Pipe Line Company    |   |                         | 16.5   |   |                                    |   | 13.6 |   |   |   | 10.8 |   |   |   | 11.9 |   |
| Thunder      Creek Gas Services, LLC |   |                         | -      |   |                                    |   | 1.3 |   |   |   | 1.2 |   |   |   | 1.0 |   |
| Midcontinent      Express            |   |                         | 14.7   |   |                                    |   | 0.5 |   |   |   | 1.2 |   |   |   | 0.2 |   |
| Express      pipeline system         |   |                         | (4.1   | )      |                                    |   | 8.2 |   |   |   | 14.9 |   |   |   | 5.0 |   |
| Thermo      Companies                |   |                         | -      |   |                                    |   | - |   |   |   | 8.0 |   |   |   | 5.1 |   |
| Horizon      Pipeline Company        |   |                         | -      |   |                                    |   | 0.2 |   |   |   | 1.0 |   |   |   | 0.6 |   |
| Endeavor      Gathering LLC          |   |                         | 0.1    |   |                                    |   | - |   |   |   | - |   |   |   | - |   |
| All      others                      |   |                         | 6.5    |   |                                    |   | 4.8 |   |   |   | 1.3 |   |   |   | 0.5 |   |
| Total                                |   | $                            | 221.9  |   |                                    | $      | 201.1 |   |   | $ | 56.8 |   |   | $ | 40.7 |   |
| Amortization      of excess costs    |   | $                            | (5.8   | )      |                                    | $      | (5.7 | ) |   | $ | (3.4 | ) |   | $ | (2.4 | ) |

|                                                                                                              |   | Year      Ended December 31, |    |
|-------------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------|
| Income Statement (a)                                                                                              |   | 2009                         |    |   | 2008 |   |   | 2007 |   |
| Revenues                                                                                                          |   | $                            | 2,351.9 |   |   | $ | 2,170.4 |   |   | $ | 738.4 |   |
| Costs      and expenses                                                                                           |   |                         | 1,754.8 |   |   |   | 1,649.6 |   |   |   | 534.4 |   |
| Earnings      before extraordinary items and cumulative effect of a change in      accounting principle |   |                         | 597.1   |   |   |   | 520.8 |   |   |   | 204.0 |   |
| Net      income                                                                                                   |   | $                            | 597.1   |   |   | $ | 520.8 |   |   | $ | 204.0 |   |

|                                             |   | December      31, |     |
|--------------------------------------------------|--------|-------------------|----------|
| Balance      Sheet                               |   | 2009              |     |   | 2008 |   |
| Current      assets                              |   | $                 | 501.8    |   |   | $ | 501.7 |   |
| Non-current      assets                          |   |              | 16,687.5 |   |   |   | 13,582.1 |   |
| Current      liabilities                         |   |              | 2,299.7  |   |   |   | 3,876.4 |   |
| Non-current      liabilities                     |   |              | 6,275.6  |   |   |   | 5,306.0 |   |
| Minority      interest in equity of subsidiaries |   |              | -        |   |   |   | 0.6 |   |
| Shareholders’      equity                  |   | $                 | 8,614.0  |   |   | $ | 4,900.8 |   |

| (a) | Amounts      exclude NGPL earnings prior to sale of our 80% interest on February 15,      2008. |
|-----|-------------------------------------------------------------------------------------------------|

----

|                                                             |   | ProductsPipelines–KMP |     |   | Natural      GasPipelines–KMP |   |     | CO2–KMP |   |   | Terminals–KMP |   |   | Kinder      MorganCanada–KMP |    |   | Total  |   |
|------------------------------------------------------------------|--------|-----------------------------|----------|--------|-------------------------------------|--------|----------|---------------|--------|--------|---------------------|--------|--------|------------------------------------|---------|--------|--------|--------|
| Balance      as of December 31, 2007                             |   | $                           | 2,179.4  |   |                                | $      | 3,201.0  |          |   | $      | 1,077.6             |   |   | $                                  | 1,465.9 |   |   | $      | 250.1 |   |   | $ | 8,174.0 |   |
| Acquisitions      and purchase price adjustments.                |   |                        | (54.8    | )      |                                |   | 251.2    |          |   |   | 450.9               |   |   |                               | (9.5    | )      |   |   | - |   |   |   | 637.8 |   |
| Disposals.                                                       |   |                        | -        |   |                                |   | -        |          |   |   | -                   |   |   |                               | -       |   |   |   | - |   |   |   | - |   |
| Impairments                                                      |   |                        | (1,266.5 | )      |                                |   | (2,090.2 | )             |   |   | -                   |   |   |                               | (676.6  | )      |   |   | - |   |   |   | (4,033.3 | ) |
| Other                                                            |   |                        | (8.1     | )      |                                |   | (12.8    | )             |   |   | (6.8                | )      |   |                               | (5.6    | )      |   |   | (46.5 | ) |   |   | (79.8 | ) |
| Balance as of December 31, 2008         |   |                        | 850.0    |   |                                |   | 1,349.2  |          |   |   | 1,521.7             |   |   |                               | 774.2   |   |   |   | 203.6 |   |   |   | 4,698.7 |   |
| Acquisitions and purchase price adjustments. |   |                        | -        |   |                                |   | 48.6     |          |   |   | -                   |   |   |                               | (35.4   | )      |   |   | - |   |   |   | 13.2 |   |
| Disposals.                                                       |   |                        | -        |   |                                |   | -        |          |   |   | -                   |   |   |                               | -       |   |   |   | - |   |   |   | - |   |
| Impairments                                                      |   |                        | -        |   |                                |   | -        |          |   |   | -                   |   |   |                               | -       |   |   |   | - |   |   |   | - |   |
| Currency translation adjustments                       |   |                        | -        |   |                                |   | -        |          |   |   | -                   |   |   |                               | -       |   |   |   | 32.4 |   |   |   | 32.4 |   |
| Balance as of December 31, 2009         |   | $                           | 850.0    |   |                                | $      | 1,397.8  |          |   | $      | 1,521.7             |   |   | $                                  | 738.8   |   |   | $      | 236.0 |   |   | $ | 4,744.3 |   |

----

----

|                                                  |   | December      31, |   |
|-------------------------------------------------------|--------|-------------------|--------|
|                                                  |   | 2009              |   |   | 2008 |   |
| Customer      relationships, contracts and agreements |   |              |   |   |   |   |
| Gross      carrying amount                            |   | $                 | 297.9  |   |   | $ | 270.9 |   |
| Accumulated      amortization                         |   |              | (50.9  | ) |   |   | (30.3 | ) |
| Net      carrying amount                              |   |              | 247.0  |   |   |   | 240.6 |   |
|                                                  |   |              |   |   |   |   |   |   |
| Technology-based      assets, lease value and other   |   |              |   |   |   |   |   |   |
| Gross      carrying amount                            |   |              | 14.1   |   |   |   | 11.7 |   |
| Accumulated      amortization                         |   |              | (1.3   | ) |   |   | (0.8 | ) |
| Net      carrying amount                              |   |              | 12.8   |   |   |   | 10.9 |   |
|                                                  |   |              |   |   |   |   |   |   |
| Total      other intangibles, net                     |   | $                 | 259.8  |   |   | $ | 251.5 |   |

----

|                                                         |   | As      of December 31, 2009 |
|--------------------------------------------------------------|--------|------------------------------|
|                                                         |   | Short-termNotes      Payable |   |   | Weighted-AverageInterest      Rate |
|                                                         |   | (In      millions)           |
| Kinder      Morgan, Inc. – Secured debt(a)             |   | $                            | 171.0 |   |   |   | 1.61 | % |
| Kinder      Morgan Energy Partners – Unsecured debt(b) |   | $                            | 300.0 |   |   |   | 0.59 | % |

| (a) | The      average short-term debt outstanding (and related weighted-average interest      rate) was $77.7 million (2.09%) during the twelve months ended December      31, 2009.  |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | The      average short-term debt outstanding (and related weighted-average interest      rate) was $442.1 million (1.43%) during the twelve months ended December      31, 2009. |

|   | · | total      debt divided by earnings before interest, income taxes, depreciation and      amortization may not exceed: |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | · | 7.00:      1.00 during January 1, 2009 and December 31, 2009;  and |
|--------|--------|--------------------------------------------------------------------|

|   | · | 6.00:      1.00 thereafter; |
|--------|--------|-----------------------------|

|   | · | certain      limitations on indebtedness, including payments and      amendments; |
|--------|--------|-----------------------------------------------------------------------------------|

|   | · | certain      limitations on entering into mergers, consolidations, sales of assets and      investments; |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | limitations      on granting liens; and |
|--------|--------|-----------------------------------------|

|   | · | prohibitions      on making any dividend to shareholders if an event of default exists or      would exist upon making suchdividend. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | total      debt divided by earnings before interest, income taxes, depreciation and      amortization for the preceding four quarters may not    exceed: |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 5.5,      in the case of any such period ended on the last day of (i) a fiscal      quarter in which we make any Specified Acquisition, or (ii) the first or      second fiscal quarter next succeeding such a fiscal quarter;      or |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 5.0,      in the case of any such period ended on the last day of any other fiscal      quarter; |
|--------|--------|--------------------------------------------------------------------------------------------------|

|   | · | certain      limitations on entering into mergers, consolidations and sales of      assets; |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | · | limitations      on granting liens; and |
|--------|--------|-----------------------------------------|

|   | · | prohibitions      on making any distribution to holders of units if an event of default      exists or would exist upon making such  distribution. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                          |   | December      31, |    |
|---------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|
|                                                                                                          |   | 2009              |    |   | 2008 |   |
| Kinder      Morgan, Inc.                                                                                      |   |              |    |   |   |   |
| Debentures                                                                                                    |   |              |    |   |   |   |
| 6.50%      Series, due September 1, 2013                                                                      |   | $                 | 1.1     |   |   | $ | 6.1 |   |
| 6.67%      Series, due November 1, 2027                                                                       |   |              | 7.0     |   |   |   | 7.0 |   |
| 7.25%      Series, due March 1, 2028                                                                          |   |              | 32.0    |   |   |   | 32.0 |   |
| 7.45%      Series, due March 1, 2098                                                                          |   |              | 25.9    |   |   |   | 25.9 |   |
| Senior      Notes                                                                                             |   |              |    |   |   |   |   |   |
| 6.50%      Series, due September 1, 2012                                                                      |   |              | 844.1   |   |   |   | 846.2 |   |
| 5.15%      Series, due March 1, 2015                                                                          |   |              | 235.6   |   |   |   | 233.3 |   |
| Deferrable      Interest Debentures Issued to Subsidiary Trusts                                               |   |              |    |   |   |   |   |   |
| 8.56%      Junior Subordinated Deferrable Interest Debentures due April 15,      2027                         |   |              | 15.8    |   |   |   | 15.8 |   |
| 7.63%      Junior Subordinated Deferrable Interest Debentures due April 15,      2028                         |   |              | 19.9    |   |   |   | 19.9 |   |
| Bank      credit facility borrowings                                                                          |   |              | 171.0   |   |   |   | 8.8 |   |
| Unamortized      gain on termination of interest rate swap                                                    |   |              | 4.6     |   |   |   | 6.4 |   |
|                                                                                                     |   |              |    |   |   |   |   |   |
| Kinder      Morgan Finance Company, LLC                                                                       |   |              |    |   |   |   |   |   |
| 5.35%      Series, due January 5, 2011                                                                        |   |              | 745.9   |   |   |   | 742.0 |   |
| 5.70%      Series, due January 5, 2016                                                                        |   |              | 811.6   |   |   |   | 806.6 |   |
| 6.40%      Series, due January 5, 2036                                                                        |   |              | 34.4    |   |   |   | 33.8 |   |
| Carrying      value adjustment for interest rate swap(a)                                                      |   |              | 13.5    |   |   |   | - |   |
| Unamortized      gain on termination of interest rate swap                                                    |   |              | 10.5    |   |   |   | 12.8 |   |
|                                                                                                     |   |              |    |   |   |   |   |   |
| Kinder      Morgan G.P., Inc.                                                                                 |   |              |    |   |   |   |   |   |
| $1,000      Liquidation Value Series A Fixed-to-Floating Rate Term Cumulative      Preferred Stock            |   |              | 100.0   |   |   |   | 100.0 |   |
|                                                                                                     |   |              |    |   |   |   |   |   |
| Kinder      Morgan Energy Partners, L.P. borrowings:                                                          |   |              |    |   |   |   |   |   |
| 6.30%      senior notes due February 1, 2009                                                                  |   |              | -       |   |   |   | 250.1 |   |
| 7.50%      senior notes due November 1, 2010                                                                  |   |              | 251.8   |   |   |   | 253.8 |   |
| 6.75%      senior notes due March 15, 2011                                                                    |   |              | 704.3   |   |   |   | 707.6 |   |
| 7.125%      senior notes due March 15, 2012                                                                   |   |              | 456.2   |   |   |   | 458.7 |   |
| 5.85%      senior notes due September 15, 2012                                                                |   |              | 500.0   |   |   |   | 500.0 |   |
| 5.00%      senior notes due December 15, 2013                                                                 |   |              | 492.8   |   |   |   | 491.3 |   |
| 5.125%      senior notes due November 15, 2014                                                                |   |              | 491.7   |   |   |   | 490.2 |   |
| 5.625%      senior notes due February 15, 2015                                                                |   |              | 300.0   |   |   |   | - |   |
| 6.00%      senior notes due February 1, 2017                                                                  |   |              | 598.0   |   |   |   | 597.8 |   |
| 5.95%      senior notes due February 15, 2018                                                                 |   |              | 975.0   |   |   |   | 975.0 |   |
| 9.00%      senior notes due February 1, 2019(b)                                                               |   |              | 500.0   |   |   |   | 500.0 |   |
| 6.85%      senior notes due February 15, 2020                                                                 |   |              | 700.0   |   |   |   | - |   |
| 5.80%      senior notes due March 1, 2021                                                                     |   |              | 400.0   |   |   |   | - |   |
| 7.40%      senior notes due March 15, 2031                                                                    |   |              | 310.1   |   |   |   | 310.3 |   |
| 7.75%      senior notes due March 15, 2032                                                                    |   |              | 316.1   |   |   |   | 316.4 |   |
| 7.30%      senior notes due August 15, 2033                                                                   |   |              | 513.7   |   |   |   | 513.9 |   |
| 5.80%      senior notes due March 15, 2035                                                                    |   |              | 477.7   |   |   |   | 477.4 |   |
| 6.50%      senior notes due February 1, 2037                                                                  |   |              | 395.8   |   |   |   | 395.8 |   |
| 6.95%      senior notes due January 15, 2038                                                                  |   |              | 1,175.0 |   |   |   | 1,175.0 |   |
| 6.50%      senior notes due September 1, 2039                                                                 |   |              | 600.0   |   |   |   | - |   |
| Bank      credit facility borrowings                                                                          |   |              | 300.0   |   |   |   | - |   |
| Carrying      value adjustment for interest rate swaps                                                        |   |              | 10.0    |   |   |   | 754.2 |   |
| Unamortized      gain on termination of interest rate swaps                                                   |   |              | 322.4   |   |   |   | 197.6 |   |
| Subsidiary      borrowings:                                                                                   |   |              |    |   |   |   |   |   |
| Arrow      Terminals L.P.-IL Development Revenue Bonds due January 1,      2010                               |   |              | 5.3     |   |   |   | 5.3 |   |
| Kinder      Morgan Louisiana Pipeline LLC-6.0% LA Development Revenue note due      January 1, 2011 |   |              | 5.0     |   |   |   | 5.0 |   |
| Kinder      Morgan Operating L.P. “A”-5.40% BP note, due March 31,2012                            |   |              | 14.9    |   |   |   | 19.4 |   |
| Kinder      Morgan Canada Company-5.40% BP note, due March 31, 2012                                           |   |              | 13.2    |   |   |   | 17.2 |   |
| Kinder      Morgan Texas Pipeline, L.P.-5.23% Senior Notes, due January 2,      2014                          |   |              | 30.5    |   |   |   | 37.0 |   |

----

| Kinder      Morgan Liquids Terminals LLC-N.J. Development Revenue Bonds due      January 15, 2018  |   |   | 25.0     |   |   |   | 25.0     |   |
|--------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|
| Kinder      Morgan Columbus LLC-5.50% MS Development Revenue note due      September 1, 2022       |   |   | 8.2      |   |   |   | 8.2      |   |
| Kinder      Morgan Operating L.P. “B”-Jackson-Union Cos. IL Revenue Bonds due April 1,      2024 |   |   | 23.7     |   |   |   | 23.7     |   |
| International      Marine Terminals-Plaquemines, LA Revenue Bonds due March 15,      2025                    |   |   | 40.0     |   |   |   | 40.0     |   |
| Other      miscellaneous subsidiary debt                                                                     |   |   | 1.3      |   |   |   | 1.3      |   |
|                                                                                                         |   |   |     |   |   |   |     |   |
| Unamortized      Debt Discount on Long-term Debt                                                             |   |   | (21.2    | )      |   |   | (14.5    | )      |
| Current      Maturities of Long-term Debt                                                                    |   |   | (768.7   | )      |   |   | (302.5   | )      |
| Total      Long-term Debt                                                                                    |   | $      | 13,240.7 |   |   | $      | 12,126.8 |   |

| (a) | Adjustment      of carrying value of long-term securities subject to outstanding interest      rate swaps; see Note 13.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | Kinder      Morgan Energy Partners issued its $500 million in principal amount of      9.00% senior notes due February 1, 2019 in December 2008, and these notes      may be repurchased at the noteholders’ option.  Each holder of      the notes has the right to require Kinder Morgan Energy Partners to      repurchase all or a portion of the notes owned by such holder on February      1, 2012 at a purchase price equal to 100% of the principal amount of the      notes tendered by the holder plus accrued and unpaid interest to, but      excluding, the repurchase date.  On and after February 1, 2012,      interest will cease to accrue on the notes tendered for      repayment.  A holder’s exercise of the repurchase option is      irrevocable. |

|                                             | Debt Paid Downand/or      Retired |
|--------------------------------------------------|---------------------------------------------|
| Kinder      Morgan, Inc.                         |                                        |   |   |   |
| Senior      Secured Credit Term Loan Facilities  |                                        |   |   |   |
| Tranche      A Term Loan, Due 2013               |                                        | $ | 995.0 |   |
| Tranche      B Term Loan, Due 2014               |                                        |   | 3,183.5 |   |
| Credit      Facility                             |                                        |   |   |   |
| $1.0      billion Secured Revolver, Due May 2013 |                                        |   | 375.0 |   |
| Total      Paid Down and/or Retired              |                                        | $ | 4,553.5 |   |

|                                                                             | Par Value of Debt      Repurchased |
|----------------------------------------------------------------------------------|---------------------------------------------------|
| Kinder      Morgan, Inc.                                                         |                                              |   |   |   |
| Debentures                                                                       |                                              |   |   |   |
| 6.50%      Series, Due 2013                                                      |                                              | $ | 18.9 |   |
| 6.67%      Series, Due 2027                                                      |                                              |   | 143.0 |   |
| 7.25%      Series, Due 2028                                                      |                                              |   | 461.0 |   |
| 7.45%      Series, Due 2098                                                      |                                              |   | 124.1 |   |
| Senior      Notes                                                                |                                              |   |   |   |
| 6.50%      Series, Due 2012                                                      |                                              |   | 160.7 |   |
| Kinder      Morgan Finance Company, LLC                                          |                                              |   |   |   |
| 6.40%      Series, Due 2036                                                      |                                              |   | 513.6 |   |
| Deferrable      Interest Debentures Issued to Subsidiary Trusts                  |                                              |   |   |   |
| 8.56%      Junior Subordinated Deferrable Interest Debentures      Due 2027 |                                              |   | 87.3 |   |
| 7.63%      Junior Subordinated Deferrable Interest Debentures      Due 2028 |                                              |   | 160.6 |   |
| Repurchase      of Outstanding Debt Securities                                   |                                              | $ | 1,669.2 |   |

----

----

----

| Year                                                                                                                                     |   | Commitment |     |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|----------|
| 2010                            |   | $          | 768.7    |   |
| 2011                            |   |       | 1,471.7  |   |
| 2012                            |   |       | 2,317.2  |   |
| 2013                            |   |       | 500.2    |   |
| 2014                            |   |       | 492.3    |   |
| Thereafter                      |   |       | 8,098.3  |   |
| Total                           |   | $          | 13,648.4 |   |

----

|                                    |   | Successor      Company       |   |   | PredecessorCompany                      |   |
|-----------------------------------------|--------|------------------------------|--------|--------|-----------------------------------------|--------|
|                                    |   | Year      Ended December 31, |   |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEndedMay      31, |   |
|                                    |   | 2009                         |   |   | 2008                                    |   |   | 2007 |   |   | 2007 |   |
| Net      periodic pension benefit cost  |   |                         |   |   |                                    |   |   |   |   |   |   |   |
| Service      cost                       |   | $                            | 4.8    |   |                                    | $      | 10.8 |   |   | $ | 5.6 |   |   | $ | 4.5 |   |
| Interest      cost                      |   |                         | 15.8   |   |                                    |   | 14.5 |   |   |   | 8.1 |   |   |   | 5.6 |   |
| Expected      return on assets          |   |                         | (16.2  | )      |                                    |   | (23.2 | ) |   |   | (14.0 | ) |   |   | (9.6 | ) |
| Amortization      of prior service cost |   |                         | 0.1    |   |                                    |   | 0.1 |   |   |   | - |   |   |   | 0.1 |   |
| Amortization      of loss               |   |                         | 7.9    |   |                                    |   | 0.3 |   |   |   | - |   |   |   | 0.2 |   |
| Net      periodic pension benefit cost  |   | $                            | 12.4   |   |                                    | $      | 2.5 |   |   | $ | (0.3 | ) |   | $ | 0.8 |   |

|                                           |   | Year      Ended December 31, |   |
|------------------------------------------------|--------|------------------------------|--------|
|                                           |   | 2009                         |   |   | 2008 |   |
| Benefit      obligation at beginning of period |   | $                            | 255.0  |   |   | $ | 258.0 |   |
| Service      cost                              |   |                         | 4.8    |   |   |   | 10.8 |   |
| Interest      cost                             |   |                         | 15.8   |   |   |   | 14.5 |   |
| Actuarial      loss (gain)                     |   |                         | 12.4   |   |   |   | (14.2 | ) |
| Plan      amendments                           |   |                         | -      |   |   |   | 0.8 |   |
| Benefits      paid                             |   |                         | (13.6  | ) |   |   | (14.9 | ) |
| Benefit      obligation at end of period       |   | $                            | 274.4  |   |   | $ | 255.0 |   |

|                                                  |   | Year Ended December 31, |   |
|-------------------------------------------------------|--------|----------------------------------------|--------|
|                                                  |   | 2009                                   |   |   | 2008 |   |
|                                                  |   | (In      millions)                     |   |
| Fair      value of plan assets at beginning of period |   | $                                      | 179.7  |   |   | $ | 264.7 |   |
| Actual      return on plan assets during the period   |   |                                   | 34.0   |   |   |   | (70.1 | ) |
| Contributions      by employer                        |   |                                   | 20.0   |   |   |   | - |   |
| Benefits      paid during the period                  |   |                                   | (13.6  | ) |   |   | (14.9 | ) |
| Fair      value of plan assets at end of period       |   |                                   | 220.1  |   |   |   | 179.7 |   |
| Benefit      obligation at end of period              |   |                                   | (274.4 | ) |   |   | (255.0 | ) |
| Funded      status at end of period                   |   | $                                      | (54.3  | ) |   | $ | (75.3 | ) |

----

|                                       |   | Assets      at fair value at December 31, 2009 |   |
|--------------------------------------------|--------|------------------------------------------------|--------|
|                                       |   | Level      1                                   |   |   | Level      2 |   |   | Level      3 |   |   | Total |   |
| Money market funds               |   | $                                              | -      |   |   | $ | 20.1 |   |   | $ | - |   |   | $ | 20.1 |   |
| Insurance contracts                   |   |                                           | -      |   |   |   | 12.2 |   |   |   | - |   |   |   | 12.2 |   |
| Mutual funds                          |   |                                           | -      |   |   |   | 61.1 |   |   |   | - |   |   |   | 61.1 |   |
| Common and preferred stocks |   |                                           | 75.6   |   |   |   | - |   |   |   | - |   |   |   | 75.6 |   |
| Corporate bonds                       |   |                                           | -      |   |   |   | 23.8 |   |   |   | - |   |   |   | 23.8 |   |
| U.S. government securities       |   |                                           | -      |   |   |   | 15.2 |   |   |   | - |   |   |   | 15.2 |   |
| Asset backed securities          |   |                                           | -      |   |   |   | 3.2 |   |   |   | - |   |   |   | 3.2 |   |
| Limited partnerships                  |   |                                           | -      |   |   |   | - |   |   |   | 5.2 |   |   |   | 5.2 |   |
| Private equity                        |   |                                           | -      |   |   |   | - |   |   |   | 3.2 |   |   |   | 3.2 |   |
|                                       |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total asset fair value      |   | $                                              | 75.6   |   |   | $ | 135.6 |   |   | $ | 8.4 |   |   | $ | 219.6 | (a) |

| (a) | Excludes      $0.5 million in interest, dividend and security    receivables. |
|-----|-------------------------------------------------------------------------------|

|                                        |   | Level      3 assets at fair value atDecember      31, 2009 |   |
|---------------------------------------------|--------|------------------------------------------------------------|--------|
|                                        |   | LimitedPartnerships                                        |   |   | PrivateEquity |   |   | Total |   |
| Balance,      beginning of year             |   | $                                                          | 4.6    |   |   | $ | 2.6 |   |   | $ | 7.2 |   |
| Realized      and unrealized gains/(losses) |   |                                                       | 0.4    |   |   |   | (0.5 | ) |   |   | (0.1 | ) |
| Purchases      and sales                    |   |                                                       | 0.2    |   |   |   | 1.1 |   |   |   | 1.3 |   |
| Level      3 end of year balance            |   | $                                                          | 5.2    |   |   | $ | 3.2 |   |   | $ | 8.4 |   |

----

|                                          |   | Year      Ended December 31, |   |
|-----------------------------------------------|--------|-----------------------------------|--------|
|                                          |   | 2009                              |   |   | 2008 |   |
| Beginning      balance                        |   | $                                 | 109.9  |   |   | $ | 30.6 |   |
| Net      (gain)/loss arising during period    |   |                              | (5.3   | ) |   |   | 79.1 |   |
| Prior      service cost arising during period |   |                              | -      |   |   |   | 0.7 |   |
| Amortization      of (gain)/loss              |   |                              | (7.9   | ) |   |   | (0.4 | ) |
| Amortization      of prior service cost       |   |                              | (0.1   | ) |   |   | (0.1 | ) |
| Ending      balance                           |   | $                                 | 96.6   |   |   | $ | 109.9 |   |

| Fiscal year |   | Expected netbenefitpayments |
|------------------|--------|----------------------------------|
| 2010             |   | $                                | 14.9 |   |
| 2011             |   | $                                | 15.9 |   |
| 2012             |   | $                                | 16.6 |   |
| 2013             |   | $                                | 17.2 |   |
| 2014             |   | $                                | 18.1 |   |
| 2015-2019        |   | $                                | 115.0 |   |

----

|                                          |   | Successor      Company       |   |   | PredecessorCompany                      |   |
|-----------------------------------------------|--------|------------------------------|--------|--------|-----------------------------------------|--------|
|                                          |   | Year      Ended December 31, |   |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEndedMay      31, |   |
|                                          |   | 2009                         |   |   | 2008                                    |   |   | 2007 |   |   | 2007 |   |
| Net      periodic postretirement benefit cost |   |                         |   |   |                                    |   |   |   |   |   |   |   |
| Service      cost                             |   | $                            | 0.3    |   |                                    | $      | 0.3 |   |   | $ | 0.2 |   |   | $ | 0.2 |   |
| Interest      cost                            |   |                         | 4.5    |   |                                    |   | 4.6 |   |   |   | 2.7 |   |   |   | 1.9 |   |
| Expected      return on assets                |   |                         | (4.6   | )      |                                    |   | (6.5 | ) |   |   | (3.9 | ) |   |   | (2.7 | ) |
| Amortization      of prior service credit     |   |                         | -      |   |                                    |   | - |   |   |   | - |   |   |   | (0.7 | ) |
| Amortization      of loss                     |   |                         | 2.5    |   |                                    |   | 0.5 |   |   |   | - |   |   |   | 2.0 |   |
| Net      periodic postretirement benefit cost |   | $                            | 2.7    |   |                                    | $      | (1.1 | ) |   | $ | (1.0 | ) |   | $ | 0.7 |   |

----

|                                           |   | Year      Ended December 31, |   |
|------------------------------------------------|--------|-----------------------------------|--------|
|                                           |   | 2009                              |   |   | 2008 |   |
| Benefit      obligation at beginning of period |   | $                                 | 78.0   |   |   | $ | 82.0 |   |
| Service      cost                              |   |                              | 0.3    |   |   |   | 0.3 |   |
| Interest      cost                             |   |                              | 4.5    |   |   |   | 4.6 |   |
| Actuarial      loss (gain)                     |   |                              | 1.1    |   |   |   | 2.0 |   |
| Benefits      paid                             |   |                              | (11.7  | ) |   |   | (13.8 | ) |
| Retiree      contributions                     |   |                              | 3.4    |   |   |   | 2.9 |   |
| Benefit      obligation at end of period       |   | $                                 | 75.6   |   |   | $ | 78.0 |   |

|                                                  |   | Year      Ended December 31, |   |
|-------------------------------------------------------|--------|-----------------------------------|--------|
|                                                  |   | 2009                              |   |   | 2008 |   |
| Fair      value of plan assets at beginning of period |   | $                                 | 49.1   |   |   | $ | 69.2 |   |
| Actual      return on plan assets                     |   |                              | 6.8    |   |   |   | (17.5 | ) |
| Contributions                                         |   |                              | 7.0    |   |   |   | 8.7 |   |
| Retiree      contributions                            |   |                              | 3.4    |   |   |   | 2.9 |   |
| Benefits      paid                                    |   |                              | (12.2  | ) |   |   | (14.2 | ) |
| Fair      value of plan assets at end of period       |   |                              | 54.1   |   |   |   | 49.1 |   |
| Benefit      obligation at end of period              |   |                              | (75.6  | ) |   |   | (78.0 | ) |
| Funded      status at end of period                   |   | $                                 | (21.5  | ) |   | $ | (28.9 | ) |

|                        |   | Assets      at fair value at December 31, 2009 |   |
|-----------------------------|--------|------------------------------------------------|--------|
|                        |   | Level      1                                   |   |   | Level      2 |   |   | Level      3 |   |   | Total |   |
| Money      market funds     |   | $                                              | -      |   |   | $ | 5.5 |   |   | $ | - |   |   | $ | 5.5 |   |
| Insurance      contracts    |   |                                           | -      |   |   |   | 41.6 |   |   |   | - |   |   |   | 41.6 |   |
| Mutual      funds           |   |                                           | 7.0    |   |   |   | - |   |   |   | - |   |   |   | 7.0 |   |
|                        |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      asset fair value |   | $                                              | 7.0    |   |   | $ | 47.1 |   |   | $ | - |   |   | $ | 54.1 |   |

|                                       |   | Year      Ended December 31, |   |
|--------------------------------------------|--------|-----------------------------------|--------|
|                                       |   | 2009                              |   |   | 2008 |   |
| Beginning      balance                     |   | $                                 | 37.9   |   |   | $ | 12.0 |   |
| Net      (gain)/loss arising during period |   |                              | (0.5   | ) |   |   | 26.4 |   |
| Amortization      of (gain)/loss           |   |                              | (2.5   | ) |   |   | (0.5 | ) |
| Amortization      of prior service cost    |   |                              | -      |   |   |   | - |   |
| Ending      balance                        |   | $                                 | 34.9   |   |   | $ | 37.9 |   |

----

| Fiscal year |   | Expected netbenefitpayments |
|------------------|--------|----------------------------------|
| 2010             |   | $                                | 7.2 |   |
| 2011             |   | $                                | 6.9 |   |
| 2012             |   | $                                | 6.6 |   |
| 2013             |   | $                                | 6.4 |   |
| 2014             |   | $                                | 6.2 |   |
| 2015-2018        |   | $                                | 28.6 |   |

|                                                   | Successor      Company            |   |                                    | PredecessorCompany |
|--------------------------------------------------------|-----------------------------------|--------|-----------------------------------------|--------------------|
|                                                   | Year      Ended December 31, |   | Seven MonthsEndedDecember 31, |               |   | Five MonthsEndedMay      31, |
|                                                   | 2009                              |   | 2008                                    |               | 2007 |   |   | 2007 |
| Discount      rate                                     |                              | (a)    |                                    |               |   |   | 6.25 | % |   |   |   | 5.75 | % |   |   |   |   | 6.00 | % |   |
| Expected      long-term return on assets               |                              | 8.90   | %                                       |               |   |   | 8.75 | % |   |   |   | 9.00 | % |   |   |   |   | 9.00 | % |   |
| Rate      of compensation increase (pension plan only) |                              | 3.50   | %                                       |               |   |   | 3.50 | % |   |   |   | 3.50 | % |   |   |   |   | 3.50 | % |   |

| (a) | Discount      rates of 5.75% and 6.00% are used to determine obligations for other      postretirement benefits and pension benefits,  respectively. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                   | Successor      Company            |   |                                    | PredecessorCompany |
|--------------------------------------------------------|-----------------------------------|--------|-----------------------------------------|--------------------|
|                                                   | Year      Ended December 31, |   | Seven MonthsEndedDecember 31, |               |   | Five MonthsEndedMay      31, |
|                                                   | 2009                              |   | 2008                                    |               | 2007 |   |   | 2007 |
| Discount      rate                                     |                              | 6.25   | %                                       |               |   |   | 5.75 | % |   |   |   | 6.00 | % |   |   |   |   | 6.00 | % |   |
| Expected      long-term return on assets               |                              | 8.75   | %                                       |               |   |   | 9.00 | % |   |   |   | 9.00 | % |   |   |   |   | 9.00 | % |   |
| Rate      of compensation increase (pension plan only) |                              | 3.50   | %                                       |               |   |   | 3.50 | % |   |   |   | 3.50 | % |   |   |   |   | 3.50 | % |   |

|                                                                                    | Successor      Company            |   |                                    | PredecessorCompany |
|-----------------------------------------------------------------------------------------|-----------------------------------|--------|-----------------------------------------|--------------------|
|                                                                                    | Year      Ended December 31, |   | Seven MonthsEndedDecember 31, |               |   | Five MonthsEndedMay      31, |
|                                                                                    | 2009                              |   | 2008                                    |               | 2007 |   |   | 2007 |
| Healthcare      cost trend rate assumed for next year                                   |                              | 3.00   | %                                       |               |   |   | 3.00 | % |   |   |   | 3.00 | % |   |   |   |   | 3.00 | % |   |
| Rate      to which the cost trend rate is assumed to decline (ultimate trend      rate) |                              | 3.00   | %                                       |               |   |   | 3.00 | % |   |   |   | 3.00 | % |   |   |   |   | 3.00 | % |   |
| Year      the rate reaches the ultimate trend rate                                      |                              | 2009   |                                    |               |   | 2008 |   |   |   | 2007 |   |   |   |   | 2007 |   |

----

----

----

|                                                                                                                              |   | Successor      Company       |   |   | Predecessor      Company                |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|--------|-----------------------------------------|--------|
|                                                                                                                              |   | Year      Ended December 31, |   |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEndedMay      31, |   |
|                                                                                                                              |   | 2009                         |   |   | 2008                                    |   |   | 2007 |   |   | 2007 |   |
| Kinder      Morgan, Inc.                                                                                                          |   |                         |   |   |                                    |   |   |   |   |   |   |   |
| Change      in fair value of derivatives utilized for hedging purposes                                                            |   | $                            | 85.5   |   |                                    | $      | (121.3 | ) |   | $ | 140.8 |   |   | $ | 19.1 |   |
| Reclassification      of change in fair value of derivatives to net income                                                   |   |                         | 24.5   |   |                                    |   | (69.4 | ) |   |   | 0.6 |   |   |   | (12.8 | ) |
| Foreign      currency translation adjustments                                                                                     |   |                         | (34.7  | )      |                                    |   | 31.0 |   |   |   | (8.3 | ) |   |   | (3.9 | ) |
| Benefit      plan adjustments                                                                                                     |   |                         | (1.6   | )      |                                    |   | 37.7 |   |   |   | 15.3 |   |   |   | (5.7 | ) |
| Benefit      plan amortization                                                                                                    |   |                         | (3.7   | )      |                                    |   | (0.2 | ) |   |   | - |   |   |   | (0.6 | ) |
| Tax      benefit (expense) included in total other comprehensive income (loss)      attributable to Kinder Morgan, Inc.      |   |                         | 70.0   |   |                                    |   | (122.2 | ) |   |   | 148.4 |   |   |   | (3.9 | ) |
|                                                                                                                              |   |                         |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Noncontrolling      interests                                                                                                     |   |                         |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Change      in fair value of derivatives utilized for hedging purposes                                                            |   |                         | 20.7   |   |                                    |   | (34.1 | ) |   |   | 0.9 |   |   |   | 2.4 |   |
| Reclassification      of change in fair value of derivatives to net income                                                   |   |                         | (4.5   | )      |                                    |   | (34.6 | ) |   |   | (0.3 | ) |   |   | (2.7 | ) |
| Foreign      currency translation adjustments                                                                                     |   |                         | (11.4  | )      |                                    |   | 17.2 |   |   |   | (0.1 | ) |   |   | (0.9 | ) |
| Benefit      plan adjustments                                                                                                     |   |                         | 0.1    |   |                                    |   | (0.2 | ) |   |   | - |   |   |   | - |   |
| Benefit      plan amortization                                                                                                    |   |                         | -      |   |                                    |   | - |   |   |   | - |   |   |   | - |   |
| Tax      benefit (expense) included in total other comprehensive income (loss)      attributable to noncontrolling interests |   |                         | 4.9    |   |                                    |   | (51.7 | ) |   |   | 0.5 |   |   |   | (1.2 | ) |
|                                                                                                                              |   |                         |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                                                                             |   |                         |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Change      in fair value of derivatives utilized for hedging purposes                                                            |   |                         | 106.2  |   |                                    |   | (155.4 | ) |   |   | 141.7 |   |   |   | 21.5 |   |
| Reclassification      of change in fair value of derivatives to net income                                                   |   |                         | 20.0   |   |                                    |   | (104.0 | ) |   |   | 0.3 |   |   |   | (15.5 | ) |
| Foreign      currency translation adjustments                                                                                     |   |                         | (46.1  | )      |                                    |   | 48.2 |   |   |   | (8.4 | ) |   |   | (4.8 | ) |
| Benefit      plan adjustments                                                                                                     |   |                         | (1.5   | )      |                                    |   | 37.5 |   |   |   | 15.3 |   |   |   | (5.7 | ) |
| Benefit      plan amortization                                                                                                    |   |                         | (3.7   | )      |                                    |   | (0.2 | ) |   |   | - |   |   |   | (0.6 | ) |
| Tax      benefit (expense) included in total other comprehensive      income (loss)                                          |   | $                            | 74.9   |   |                                    | $      | (173.9 | ) |   | $ | 148.9 |   |   | $ | (5.1 | ) |

|                               |   | December      31, |    |
|------------------------------------|--------|-------------------|---------|
|                               |   | 2009              |    |   | 2008 |   |
| Kinder      Morgan Energy Partners |   | $                 | 2,746.4 |   |   | $ | 2,198.2 |   |
| Kinder      Morgan Management      |   |              | 1,870.7 |   |   |   | 1,826.5 |   |
| Triton      Power Company LLC      |   |              | 45.9    |   |   |   | 39.0 |   |
| Other                              |   |              | 11.6    |   |   |   | 8.9 |   |
|                               |   | $                 | 4,674.6 |   |   | $ | 4,072.6 |   |

----

----

----

|                                                                                     |   | December 31, |   |
|------------------------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                                     |   | 2009              |   |   | 2008 |   |
| Derivative      Assets (Liabilities)                                                     |   |              |   |
| Current      Assets: Fair value of derivative contracts                                  |   | $                 | 4.3    |   |   | $ | 60.4 |   |
| Assets:      Fair value of derivative contracts                                          |   | $                 | 18.4   |   |   | $ | 20.1 |   |
| Current      Liabilities: Fair value of derivative contracts                             |   | $                 | (96.8  | ) |   | $ | (13.2 | ) |
| Long-term      Liabilities and Deferred Credits: Fair value of derivative      contracts |   | $                 | (190.8 | ) |   | $ | (24.1 | ) |

----

| Year                        |   | Commitment |
|-----------------------------|--------|------------|
| 2010                        |   | $          | 43.8 |
| 2011                        |   |       | 38.3 |
| 2012                        |   |       | 29.6 |
| 2013                        |   |       | 23.6 |
| 2014                        |   |       | 20.6 |
| Thereafter                  |   |       | 82.9 |
| Total      minimum payments |   | $          | 238.8 |

----

|   | · | issued      $100 million in principal amount of three-year, variable rate Series E      notes that mature in full on December 11, 2012.  Interest on the      Series E notes is paid quarterly and based on an interest rate of LIBOR      plus a spread.  The net proceeds from the sale of the notes were      used to repay borrowings under its bank credit  facility; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | amended      its bank credit facility to allow for borrowings up to $40.0 million due      December 11, 2012; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | · | terminated      its commercial paper program. |
|--------|--------|-----------------------------------------------|

----

----

----

|                                                 | Notional quantity       |
|------------------------------------------------------|------------------------------|
| Derivatives      designated as hedging contracts     |                         |
| Crude      oil                                       | 25.6      million barrels    |
| Natural      gas(a)                                  | 44.3      billion cubic feet |
| Derivatives      not designated as hedging contracts |                         |
| Natural      gas(a)                                  | 0.1      billion cubic feet  |

| (a) | Notional      quantities are shown net. |
|-----|-----------------------------------------|

----

|                                                 | Asset      derivatives     |   |                   | Liability      derivatives |
|------------------------------------------------------|----------------------------|--------|------------------------|----------------------------|
|                                                 | December      31, 2009     |   | December      31, 2008 |                       |   | December      31, 2009 |   | December      31, 2008 |
|                                                 | Balance      sheetlocation |   | Fairvalue              |                       | Balance      sheetLocation |   | Fairvalue |   |   | Balance      sheetLocation |   | Fairvalue |   | Balance      sheetlocation |   | Fairvalue |
|                                                 |                       |   |                   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives designated      as hedging contracts     |                       |   |                   |                       |   |   |   |   |   |   |   |
| Energy      commodity derivative contracts           | Current                    |   | $                      | 19.1                       |   | Current |   | $ | 113.5 |   |   | Current |   | $ | (270.8) |   | Current |   | $ | (129.4) |
|                                                 | Non-current                |   |                   | 57.3                       |   | Non-current |   |   | 48.9 |   |   | Non-current |   |   | (241.5) |   | Non-current |   |   | (92.2) |
| Subtotal                                             |                       |   |                   | 76.4                       |   |   |   |   | 162.4 |   |   |   |   |   | (512.3) |   |   |   |   | (221.6) |
|                                                 |                       |   |                   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      rate swap agreements                   | Non-current                |   |                   | 236.0                      |   | Non-current |   |   | 747.1 |   |   | Non-current |   |   | (218.5) |   | Non-current |   |   | - |
| Cross      currency swap agreements                  | Non-current                |   |                   | -                          |   | Non-current |   |   | 32.0 |   |   | Non-current |   |   | (9.6) |   | Non-current |   |   | - |
| Total                                                |                       |   |                   | 312.4                      |   |   |   |   | 941.5 |   |   |   |   |   | (740.4) |   |   |   |   | (221.6) |
|                                                 |                       |   |                   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives not      designated as hedging contracts |                       |   |                   |                       |   |   |   |   |   |   |   |
| Energy      commodity derivative contracts           | Current                    |   |                   | 1.7                        |   | Current |   |   | 1.8 |   |   | Current |   |   | (1.2) |   | Current |   |   | (0.1) |
|                                                 |                       |   |                   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      derivatives                               |                       |   | $                      | 314.1                      |   |   |   | $ | 943.3 |   |   |   |   | $ | (741.6) |   |   |   | $ | (221.7) |

----

| Derivatives      in fair value hedging relationships |   | Location      of gain/(loss) recognized in income on derivative |   | Amount      of gain/(loss) recognized in income on derivative(a) |    |   | Hedged      items in fair value hedging relationships |   | Location      of gain/(loss) recognized in income on related hedged item |   | Amount      of gain/(loss) recognized in income on related hedged    items(a) |
|------------------------------------------------------|--------|-----------------------------------------------------------------|--------|------------------------------------------------------------------|---------|--------|-------------------------------------------------------|--------|--------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------|
|                                                 |   |                                                            |   | Year      Ended December 31,                                     |    |   |                                                  |   |                                                                     |   | Year      Ended December 31,                                                  |
|                                                 |   |                                                            |   | 2009                                                             |    | 2008   |                                                  |   |                                                                     |   |                                                                          |   | 2009 |   | 2008 |
| Interest      rate swap agreements                   |   | Interest,      net – income/(expense)                     |   | $                                                                | (585.1) |   | $                                                     | 609.1  |                                                                     |   | Fixed      rate debt                                                          |   | Interest,      net – income/(expense) |   | $ | 585.1 |   | $ | (609.1) |
| Total                                                |   |                                                            |   | $                                                                | (585.1) |   | $                                                     | 609.1  |                                                                     |   | Total                                                                         |   |   |   | $ | 585.1 |   | $ | (609.1) |

| (a) | Amounts      reflect the change in the fair value of interest rate swap agreements and      the change in the fair value of the associated fixed rate debt which      exactly offset each other as a result of no hedge      ineffectiveness.  Amounts do not reflect the impact on interest      expense from the interest rate swap agreements under which we pay variable      rate interest and receive fixed rateinterest. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Derivatives      in cash flow hedging relationships |   | Amount      of gain/(loss) recognized in OCI on derivative (effective      portion) |    | Location      of gain/(loss) reclassified from Accumulated OCI into income (effective      portion) |   | Amount      of gain/(loss) reclassified from Accumulated OCI into income (effective      portion) |   | Location      of gain/(loss) recognized in income on derivative (ineffective portion and      amount excluded from effectiveness testing) |   | Amount      of gain/(loss) recognized in income on derivative (ineffective portion and      amount excluded from effectiveness testing) |
|-----------------------------------------------------|--------|-------------------------------------------------------------------------------------|---------|-----------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
|                                                |   | Year      Ended December 31,                                                        |    |                                                                                                |   | Year      Ended December 31,                                                                      |   |                                                                                                                                      |   | Year      Ended December 31,                                                                                                            |
|                                                |   | 2009                                                                                |    | 2008                                                                                                |   |                                                                                              |   | 2009                                                                                                                                      |   | 2008                                                                                                                                    |   |   |   | 2009 |   | 2008 |
| Energy      commodity derivative contracts          |   | $                                                                                   | (138.7) |                                                                                                | $      | 212.0                                                                                             |   | Revenues-natural      gas sales                                                                                                      |   | $                                                                                                                                       | 13.1 |   | $ | 6.0  |   | Revenues |   | $ | (13.5) |   | $ | - |
|                                                |   |                                                                                |    |                                                                                                |   |                                                                                              |   | Revenues-product      sales and other                                                                                                     |   |                                                                                                                                    | 25.7 |   |   | (97.6) |   |   |   |   |   |   |   |   |
|                                                |   |                                                                                |    |                                                                                                |   |                                                                                              |   | Gas      purchases and other costs of sales                                                                                               |   |                                                                                                                                    | 0.6 |   |   | (25.5) |   | Gas      purchases and other costs of sales |   |   | - |   |   | (1.5) |
| Total                                               |   | $                                                                                   | (138.7) |                                                                                                | $      | 212.0                                                                                             |   | Total                                                                                                                                     |   | $                                                                                                                                       | 39.4 |   | $ | (117.1) |   | Total |   | $ | (13.5) |   | $ | (1.5) |

| Derivatives      in cash flow hedging relationships |   | Amount      of gain/(loss) recognized in OCI on derivative (effective      portion) |   | Location      of gain/(loss) reclassified from Accumulated OCI into income (effective      portion) |   | Amount      of gain/(loss) reclassified from Accumulated OCI into income (effective      portion) |   | Location      of gain/(loss) recognized in income on derivative (ineffective portion and      amount excluded from effectiveness testing) |   | Amount      of gain/(loss) recognized in income on derivative (ineffective portion and      amount excluded from effectiveness testing) |
|-----------------------------------------------------|--------|-------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
|                                                |   | Year      Ended December 31,                                                        |   |                                                                                                |   | Year      Ended December 31,                                                                      |   |                                                                                                                                      |   | Year      Ended December 31,                                                                                                            |
|                                                |   | 2009                                                                                |   | 2008                                                                                                |   |                                                                                              |   | 2009                                                                                                                                      |   | 2008                                                                                                                                    |   |   |   | 2009 |   | 2008 |
| Cross      currency swap agreements                 |   | $                                                                                   | (41.6) |                                                                                                | $      | 83.2                                                                                              |   | Other,      net                                                                                                                           |   | $                                                                                                                                       | - |   | $ | - |   | Revenues |   | $ | - |   | $ | - |
| Total                                               |   | $                                                                                   | (41.6) |                                                                                                | $      | 83.2                                                                                              |   | Total                                                                                                                                     |   | $                                                                                                                                       | - |   | $ | - |   | Total |   | $ | - |   | $ | - |

| Derivatives      not designated as hedgingcontracts |   | Location      of gain/(loss) recognizedin      income on derivative |   | Amount      of gain/(loss) recognizedin      income on derivative |
|-----------------------------------------------------|--------|---------------------------------------------------------------------|--------|-------------------------------------------------------------------|
|                                                |   |                                                                |   | Year      Ended December 31,                                      |
|                                                |   |                                                                |   | 2009                                                              |   | 2008 |
| Energy      commodity derivative contracts          |   | Gas      purchases and other costs of sales                         |   | $                                                                 | (4.2) |   | $ | 5.6 |
| Total                                               |   |                                                                |   | $                                                                 | (4.2) |   | $ | 5.6 |

----

|                                       |   | Asset position |   |
|--------------------------------------------|--------|---------------------|--------|
| Interest      rate swap agreements         |   | $                   | 236.0  |   |
| Energy      commodity derivative contracts |   |                | 78.1   |   |
| Gross      exposure                        |   |                | 314.1  |   |
| Netting      agreement impact              |   |                | (74.7  | ) |
| Net      exposure                          |   | $                   | 239.4  |   |

----

| Credit      Ratings Downgraded(a)                            |   | Incrementalobligations |   | CumulativeObligations(b) |
|--------------------------------------------------------------|--------|------------------------|--------|--------------------------|
| One      notch to BBB-/Baa3                                  |   | $                      | 58.1   |                     |   | $ | 128.3 |   |
|                                                         |   |                   |   |                     |   |   |   |   |
| Two      notches to below BBB-/Baa3 (below investment grade) |   | $                      | 76.9   |                     |   | $ | 205.2 |   |

| (a) | If      there are split ratings among the independent credit rating agencies, most      counterparties use the higher credit rating to determine      our incremental collateral obligations, while the remaining use the lower      credit rating.  Therefore, a one notch downgrade to BBB-/Baa3 by      one agency would not trigger the entire $58.1 million incremental      obligation. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Includes      current posting at current rating. |
|-----|--------------------------------------------------|

|   | ▪ | Level      1 Inputs—quoted prices (unadjusted) in active markets for identical assets      or liabilities that the reporting entity has the ability to access at the      measurement date; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | Level      2 Inputs—inputs other than quoted prices included within Level 1 that are      observable for the asset or liability, either directly or      indirectly.  If the asset or liability has a specified      (contractual) term, a Level 2 input must be observable for substantially      the full term of the asset or liability;and |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | Level      3 Inputs—unobservable inputs for the asset or liability.  These      unobservable inputs reflect the entity’s own assumptions about the      assumptions that market participants would use in pricing the asset or      liability, and are developed based on the best information available in      the circumstances (which might include the reporting entity’s own      data). |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                              |   | Asset      fair value measurements using |   |
|---------------------------------------------------|--------|------------------------------------------|--------|
|                                              |   | Total                                    |   |   | Quoted      prices inactive      marketsfor      identicalassets      (Level 1) |   |   | Significant      otherobservableinputs      (Level 2) |   |   | Significantunobservableinputs      (Level 3) |   |
| As      of December 31, 2009                      |   |                                     |   |   |   |   |   |   |   |   |   |   |
| Energy      commodity derivative contracts(a)     |   | $                                        | 78.1   |   |   | $ | - |   |   | $ | 14.4 |   |   | $ | 63.7 |   |
| Interest      rate swap agreements                |   |                                     | 236.0  |   |   |   | - |   |   |   | 236.0 |   |   |   | - |   |
| Cross      currency interest rate swap agreements |   |                                     | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                              |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As      of December 31, 2008                      |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Energy      commodity derivative contracts(b)     |   | $                                        | 164.2  |   |   | $ | 0.1 |   |   | $ | 108.9 |   |   | $ | 55.2 |   |
| Interest      rate swap agreements                |   |                                     | 747.1  |   |   |   | - |   |   |   | 747.1 |   |   |   | - |   |
| Cross      currency interest rate swap agreements |   |                                     | 32.0   |   |   |   | - |   |   |   | 32.0 |   |   |   | - |   |

|                                              |   | Liability      fair value measurements using |   |
|---------------------------------------------------|--------|----------------------------------------------|--------|
|                                              |   | Total                                        |   |   | Quoted      prices inactive      marketsfor      identicalliabilities(Level      1) |   |   | Significant      otherobservableinputs      (Level 2) |   |   | Significantunobservableinputs      (Level 3) |   |
| As      of December 31, 2009                      |   |                                         |   |   |   |   |   |   |   |   |   |   |
| Energy      commodity derivative contracts(c)     |   | $                                            | (513.5 | ) |   | $ | - |   |   | $ | (462.8 | ) |   | $ | (50.7 | ) |
| Interest      rate swap agreements                |   |                                         | (218.5 | ) |   |   | - |   |   |   | (218.5 | ) |   |   | - |   |
| Cross      currency interest rate swap agreements |   |                                         | (9.6   | ) |   |   | - |   |   |   | (9.6 | ) |   |   | - |   |
|                                              |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As      of December 31, 2008                      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Energy      commodity derivative contracts(d)     |   | $                                            | (221.7 | ) |   | $ | - |   |   | $ | (210.6 | ) |   | $ | (11.1 | ) |
| Interest      rate swap agreements                |   |                                         | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |

| (a) | Level      2 consists primarily of OTC West Texas Intermediate hedges and OTC natural      gas hedges that are settled on NYMEX.  Level 3 consists      primarily of natural gas basis swaps, natural gas options, and West Texas      Intermediate options.                                                   |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | Level      1 consists primarily of NYMEX natural gas futures.  Level 2      consists primarily of OTC West Texas Intermediate hedges and OTC natural      gas hedges that are settled on NYMEX.  Level 3 consists      primarily of West Texas Intermediate options and West Texas Sour      hedges. |
| (c) | Level      2 consists primarily of OTC West Texas Intermediate hedges and OTC natural      gas hedges that are settled on NYMEX. Level 3 consists primarily of West      Texas Sour hedges, natural gas basis swaps, natural gas options, and West      Texas Intermediate options.                                      |
| (d) | Level      2 consists primarily of OTC West Texas Intermediate      hedges.  Level 3 consists primarily of natural gas basis swaps,      natural gas options and West Texas Intermediate  options.                                                                                                             |

|                                                                                                                         |   | Year      Ended December 31, |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                                                                         |   | 2009                         |   |   | 2008 |   |
| Derivatives-net      asset (liability)                                                                                       |   |                         |   |   |   |   |
| Beginning      of period                                                                                                     |   | $                            | 44.1   |   |   | $ | (100.3 | ) |
| Realized      and unrealized net gains (losses)                                                                              |   |                         | (48.4  | ) |   |   | 69.6 |   |
| Purchases      and settlements                                                                                               |   |                         | 17.3   |   |   |   | 74.8 |   |
| Transfers      in (out) of Level 3                                                                                           |   |                         | -      |   |   |   | - |   |
| End      of period                                                                                                           |   | $                            | 13.0   |   |   | $ | 44.1 |   |
|                                                                                                                         |   |                         |   |   |   |   |   |   |
| Change      in unrealized net gains (losses) relating to contracts      still held at end of period |   | $                            | (42.1  | ) |   | $ | 88.8 |   |

----

|            | December      31, 2009 |     | December      31, 2008   |
|-----------------|------------------------|----------|--------------------------|
|            | CarryingValue          |     | EstimatedFair      Value |   | CarryingValue |   | EstimatedFair      Value |
| Total      Debt | $                      | 13,648.4 |                     |   | $ | 14,158.2 |   |   | $ | 11,458.3 |   |   | $ | 9,813.9 |   |

|   | · | Products      Pipelines–KMP: the transportation and terminaling of refined petroleum      products, including gasoline, diesel fuel, jet fuel and natural gas      liquids; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Natural      Gas Pipelines–KMP: the sale, transport, processing, treating, storage and      gathering of natural gas; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | · | CO2–KMP:      the production and sale of crude oil from fields in the Permian Basin of      West Texas and the transportation and marketing of carbon dioxide used as      a flooding medium for recovering crude oil from mature oil      fields; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Terminals–KMP:      the transloading and storing of refined petroleum products and dry and      liquid bulk products, including coal, petroleum coke, cement, alumina,      salt and other bulk chemicals; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Kinder      Morgan Canada–KMP: the transportation of crude oil and refined      products; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | NGPL      PipeCo LLC: consists of our 20% interest in NGPL PipeCo LLC, the owner of      Natural Gas Pipeline Company of America and certain affiliates,      collectively referred to as Natural Gas Pipeline Company of America or      NGPL, a major interstate natural gas pipeline and storage system, which we      operate.  Prior to February 15, 2008, we owned 100% of NGPL;      and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Power:      consists of a natural gas-fired electric generation    facility. |
|--------|--------|------------------------------------------------------------------------------|

----

----

|                                   |   | Successor      Company       |    |   | PredecessorCompany                      |   |
|----------------------------------------|--------|------------------------------|---------|--------|-----------------------------------------|--------|
|                                   |   | Year      Ended December 31, |    |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEndedMay      31, |   |
|                                   |   | 2009                         |    |   | 2008                                    |   |   | 2007 |   |   | 2007 |   |
| Revenues                               |   |                         |    |   |                                    |   |   |   |   |   |   |   |
| Products      Pipelines–KMP      |   |                         |    |   |                                    |   |   |   |   |   |   |   |
| Revenues      from external customers  |   | $                            | 826.6   |   |                                    | $      | 815.9 |   |   | $ | 471.5 |   |   | $ | 331.8 |   |
| Natural      Gas Pipelines–KMP   |   |                         |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Revenues      from external customers  |   |                         | 3,806.9 |   |                                    |   | 8,422.0 |   |   |   | 3,825.9 |   |   |   | 2,637.6 |   |
| Intersegment      revenues             |   |                         | -       |   |                                    |   | - |   |   |   | - |   |   |   | 3.0 |   |
| CO2–KMP                          |   |                         |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Revenues      from external customers  |   |                         | 1,131.3 |   |                                    |   | 1,269.2 |   |   |   | 605.9 |   |   |   | 324.2 |   |
| Terminals–KMP                    |   |                         |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Revenues      from external customers  |   |                         | 1,108.1 |   |                                    |   | 1,172.7 |   |   |   | 598.8 |   |   |   | 364.2 |   |
| Intersegment      revenues             |   |                         | 0.9     |   |                                    |   | 0.9 |   |   |   | 0.4 |   |   |   | 0.3 |   |
| Kinder      Morgan Canada–KMP    |   |                         |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Revenues      from external customers  |   |                         | 226.1   |   |                                    |   | 198.9 |   |   |   | 100.0 |   |   |   | 62.9 |   |
| NGPL      PipeCo LLC(a)                |   |                         |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Revenues      from external customers  |   |                         | -       |   |                                    |   | 132.1 |   |   |   | 752.4 |   |   |   | 424.5 |   |
| Intersegment      revenues             |   |                         | -       |   |                                    |   | 0.9 |   |   |   | 4.8 |   |   |   | 2.0 |   |
| Power(b)                               |   |                         |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Revenues      from external customers  |   |                         | 40.4    |   |                                    |   | 44.0 |   |   |   | 40.2 |   |   |   | 19.9 |   |
| Other                                  |   |                         |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Revenues      from other customers(c)  |   |                         | 45.8    |   |                                    |   | 40.0 |   |   |   | - |   |   |   | - |   |
| Intersegment      revenues             |   |                         | -       |   |                                    |   | (0.9 | ) |   |   | - |   |   |   | - |   |
| Total      segment revenues            |   |                         | 7,186.1 |   |                                    |   | 12,095.7 |   |   |   | 6,399.9 |   |   |   | 4,170.4 |   |
| Less:      Total intersegment revenues |   |                         | (0.9    | )      |                                    |   | (0.9 | ) |   |   | (5.2 | ) |   |   | (5.3 | ) |
| Total      consolidated revenues       |   | $                            | 7,185.2 |   |                                    | $      | 12,094.8 |   |   | $ | 6,394.7 |   |   | $ | 4,165.1 |   |

|                                             |   | Successor      Company       |    |   | PredecessorCompany                      |   |
|--------------------------------------------------|--------|------------------------------|---------|--------|-----------------------------------------|--------|
|                                             |   | Year      Ended December 31, |    |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEndedMay      31, |   |
|                                             |   | 2009                         |    |   | 2008                                    |   |   | 2007 |   |   | 2007 |   |
| Operating      expenses(d)                       |   |                         |    |   |                                    |   |   |   |   |   |   |   |
| Products      Pipelines–KMP                |   | $                            | 269.5   |   |                                    | $      | 291.0 |   |   | $ | 320.6 |   |   | $ | 116.4 |   |
| Natural      Gas Pipelines–KMP             |   |                         | 3,192.7 |   |                                    |   | 7,803.3 |   |   |   | 3,461.4 |   |   |   | 2,418.5 |   |
| CO2–KMP                                    |   |                         | 271.1   |   |                                    |   | 391.8 |   |   |   | 182.7 |   |   |   | 121.5 |   |
| Terminals–KMP                              |   |                         | 536.8   |   |                                    |   | 631.8 |   |   |   | 344.2 |   |   |   | 192.2 |   |
| Kinder      Morgan Canada–KMP              |   |                         | 72.5    |   |                                    |   | 68.0 |   |   |   | 44.3 |   |   |   | 23.1 |   |
| NGPL      PipeCo LLC(a)                          |   |                         | -       |   |                                    |   | 43.5 |   |   |   | 335.4 |   |   |   | 159.7 |   |
| Power(b)                                         |   |                         | 23.6    |   |                                    |   | 24.8 |   |   |   | 25.7 |   |   |   | 18.2 |   |
| Other                                            |   |                         | 0.1     |   |                                    |   | 0.1 |   |   |   | 0.9 |   |   |   | (3.4 | ) |
| Total      segment operating expenses            |   |                         | 4,366.3 |   |                                    |   | 9,254.3 |   |   |   | 4,715.2 |   |   |   | 3,046.2 |   |
| Less:      Total intersegment operating expenses |   |                         | (0.9    | )      |                                    |   | (0.9 | ) |   |   | (5.2 | ) |   |   | (5.3 | ) |
| Total      consolidated operating expenses       |   | $                            | 4,365.4 |   |                                    | $      | 9,253.4 |   |   | $ | 4,710.0 |   |   | $ | 3,040.9 |   |

----

|                                           |   | Successor      Company       |   |   | PredecessorCompany                      |   |
|------------------------------------------------|--------|------------------------------|--------|--------|-----------------------------------------|--------|
|                                           |   | Year      Ended December 31, |   |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEndedMay      31, |   |
|                                           |   | 2009                         |   |   | 2008                                    |   |   | 2007 |   |   | 2007 |   |
| Other      expense (income)                    |   |                         |   |   |                                    |   |   |   |   |   |   |   |
| Products      Pipelines–KMP(e)           |   | $                            | 1.1    |   |                                    | $      | 1,269.5 |   |   | $ | (0.8 | ) |   | $ | 0.6 |   |
| Natural      Gas Pipelines–KMP(e)        |   |                         | (6.6   | )      |                                    |   | 2,090.0 |   |   |   | (1.9 | ) |   |   | 0.1 |   |
| CO2–KMP                                  |   |                         | -      |   |                                    |   | - |   |   |   | - |   |   |   | - |   |
| Terminals–KMP(e)                         |   |                         | (25.0  | )      |                                    |   | 683.0 |   |   |   | (3.3 | ) |   |   | (3.0 | ) |
| Kinder      Morgan Canada–KMP(f)         |   |                         | -      |   |                                    |   | - |   |   |   | - |   |   |   | 377.1 |   |
| Other                                          |   |                         | (0.1   | )      |                                    |   | 0.1 |   |   |   | - |   |   |   | - |   |
| Total      consolidated other expense (income) |   | $                            | (30.6  | )      |                                    | $      | 4,042.6 |   |   | $ | (6.0 | ) |   | $ | 374.8 |   |

|                                                             |   | Successor      Company       |    |   | PredecessorCompany                      |   |
|------------------------------------------------------------------|--------|------------------------------|---------|--------|-----------------------------------------|--------|
|                                                             |   | Year      Ended December 31, |    |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEndedMay      31, |   |
|                                                             |   | 2009                         |    |   | 2008                                    |   |   | 2007 |   |   | 2007 |   |
| Depreciation,      depletion and amortization                    |   |                         |    |   |                                    |   |   |   |   |   |   |   |
| Products      Pipelines–KMP                                |   | $                            | 121.3   |   |                                    | $      | 116.9 |   |   | $ | 58.1 |   |   | $ | 33.6 |   |
| Natural      Gas Pipelines–KMP                             |   |                         | 120.5   |   |                                    |   | 99.9 |   |   |   | 52.3 |   |   |   | 26.8 |   |
| CO2–KMP                                                    |   |                         | 620.6   |   |                                    |   | 498.1 |   |   |   | 243.5 |   |   |   | 116.3 |   |
| Terminals–KMP                                              |   |                         | 169.1   |   |                                    |   | 157.4 |   |   |   | 62.1 |   |   |   | 34.4 |   |
| Kinder      Morgan Canada–KMP                              |   |                         | 38.5    |   |                                    |   | 36.7 |   |   |   | 13.5 |   |   |   | 8.2 |   |
| NGPL      PipeCo LLC(a)                                          |   |                         | -       |   |                                    |   | 9.3 |   |   |   | 42.3 |   |   |   | 45.3 |   |
| Power                                                            |   |                         | -       |   |                                    |   | - |   |   |   | 0.2 |   |   |   | (4.2 | ) |
| Other                                                            |   |                         | 0.2     |   |                                    |   | 0.1 |   |   |   | 0.3 |   |   |   | 0.6 |   |
| Total      consolidated depreciation, depletion and amortization |   | $                            | 1,070.2 |   |                                    | $      | 918.4 |   |   | $ | 472.3 |   |   | $ | 261.0 |   |

|                                    |   | Successor      Company       |   |   | PredecessorCompany                      |   |
|-----------------------------------------|--------|------------------------------|--------|--------|-----------------------------------------|--------|
|                                    |   | Year      Ended December 31, |   |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEndedMay      31, |   |
|                                    |   | 2009                         |   |   | 2008                                    |   |   | 2007 |   |   | 2007 |   |
| Earnings      from equity investments   |   |                         |   |   |                                    |   |   |   |   |   |   |   |
| Products      Pipelines–KMP       |   | $                            | 18.7   |   |                                    | $      | 15.7 |   |   | $ | 11.5 |   |   | $ | 12.4 |   |
| Natural      Gas Pipelines–KMP    |   |                         | 141.8  |   |                                    |   | 113.4 |   |   |   | 10.3 |   |   |   | 8.9 |   |
| CO2–KMP                           |   |                         | 22.3   |   |                                    |   | 20.7 |   |   |   | 10.5 |   |   |   | 8.7 |   |
| Terminals–KMP                     |   |                         | 0.7    |   |                                    |   | 2.7 |   |   |   | 0.6 |   |   |   | - |   |
| Kinder      Morgan Canada–KMP     |   |                         | (4.1   | )      |                                    |   | 8.3 |   |   |   | 14.4 |   |   |   | 5.4 |   |
| NGPL      PipeCo LLC(a)                 |   |                         | 42.5   |   |                                    |   | 40.3 |   |   |   | 1.0 |   |   |   | 0.6 |   |
| Power                                   |   |                         | -      |   |                                    |   | - |   |   |   | 8.0 |   |   |   | 5.1 |   |
| Other                                   |   |                         | -      |   |                                    |   | - |   |   |   | 0.5 |   |   |   | (0.4 | ) |
| Total      consolidated equity earnings |   | $                            | 221.9  |   |                                    | $      | 201.1 |   |   | $ | 56.8 |   |   | $ | 40.7 |   |

|                                                       |   | Successor      Company       |   |   | PredecessorCompany                      |   |
|------------------------------------------------------------|--------|------------------------------|--------|--------|-----------------------------------------|--------|
|                                                       |   | Year      Ended December 31, |   |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEndedMay      31, |   |
|                                                       |   | 2009                         |   |   | 2008                                    |   |   | 2007 |   |   | 2007 |   |
| Amortization      of excess cost of equity investments     |   |                         |   |   |                                    |   |   |   |   |   |   |   |
| Products      Pipelines–KMP                          |   | $                            | 3.4    |   |                                    | $      | 3.3 |   |   | $ | 2.0 |   |   | $ | 1.4 |   |
| Natural      Gas Pipelines–KMP                       |   |                         | 0.4    |   |                                    |   | 0.4 |   |   |   | 0.2 |   |   |   | 0.2 |   |
| CO2–KMP                                              |   |                         | 2.0    |   |                                    |   | 2.0 |   |   |   | 1.2 |   |   |   | 0.8 |   |
| Terminals–KMP                                        |   |                         | -      |   |                                    |   | - |   |   |   | - |   |   |   | - |   |
| Kinder      Morgan Canada–KMP                        |   |                         | -      |   |                                    |   | - |   |   |   | - |   |   |   | - |   |
| Total      consol. amortization of excess cost of invests. |   | $                            | 5.8    |   |                                    | $      | 5.7 |   |   | $ | 3.4 |   |   | $ | 2.4 |   |

----

|                                    |   | Successor      Company       |   |   | PredecessorCompany                      |   |
|-----------------------------------------|--------|------------------------------|--------|--------|-----------------------------------------|--------|
|                                    |   | Year      Ended December 31, |   |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEndedMay      31, |   |
|                                    |   | 2009                         |   |   | 2008                                    |   |   | 2007 |   |   | 2007 |   |
| Interest      income                    |   |                         |   |   |                                    |   |   |   |   |   |   |   |
| Products      Pipelines–KMP       |   | $                            | 4.1    |   |                                    | $      | 4.3 |   |   | $ | 2.6 |   |   | $ | 1.8 |   |
| Natural      Gas Pipelines–KMP    |   |                         | 6.2    |   |                                    |   | 1.2 |   |   |   | - |   |   |   | - |   |
| CO2–KMP                           |   |                         | -      |   |                                    |   | - |   |   |   | - |   |   |   | - |   |
| Terminals–KMP                     |   |                         | -      |   |                                    |   | - |   |   |   | - |   |   |   | - |   |
| Kinder      Morgan Canada–KMP     |   |                         | 12.0   |   |                                    |   | 3.9 |   |   |   | - |   |   |   | - |   |
| Total      segment interest income      |   |                         | 22.3   |   |                                    |   | 9.4 |   |   |   | 2.6 |   |   |   | 1.8 |   |
| Unallocated      interest income        |   |                         | 3.4    |   |                                    |   | 38.1 |   |   |   | 4.6 |   |   |   | 9.5 |   |
| Total      consolidated interest income |   | $                            | 25.7   |   |                                    | $      | 47.5 |   |   | $ | 7.2 |   |   | $ | 11.3 |   |

|                                                |   | Successor      Company       |   |   | PredecessorCompany                      |   |
|-----------------------------------------------------|--------|------------------------------|--------|--------|-----------------------------------------|--------|
|                                                |   | Year      Ended December 31, |   |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEndedMay      31, |   |
|                                                |   | 2009                         |   |   | 2008                                    |   |   | 2007 |   |   | 2007 |   |
| Other,      net-income (expense)                    |   |                         |   |   |                                    |   |   |   |   |   |   |   |
| Products      Pipelines–KMP                   |   | $                            | 8.3    |   |                                    | $      | (2.3 | ) |   | $ | 2.1 |   |   | $ | 2.9 |   |
| Natural      Gas Pipelines–KMP                |   |                         | 25.6   |   |                                    |   | 15.1 |   |   |   | - |   |   |   | 0.2 |   |
| CO2–KMP                                       |   |                         | -      |   |                                    |   | 1.9 |   |   |   | 0.1 |   |   |   | (0.1 | ) |
| Terminals–KMP                                 |   |                         | 3.7    |   |                                    |   | 1.7 |   |   |   | 0.7 |   |   |   | 0.3 |   |
| Kinder      Morgan Canada–KMP                 |   |                         | 11.9   |   |                                    |   | (10.1 | ) |   |   | 6.3 |   |   |   | 1.7 |   |
| Other                                               |   |                         | -      |   |                                    |   | 0.7 |   |   |   | 2.4 |   |   |   | (4.4 | ) |
| Total      consolidated other, net-income (expense) |   | $                            | 49.5   |   |                                    | $      | 7.0 |   |   | $ | 11.6 |   |   | $ | 0.6 |   |

|                                                 |   | Successor      Company       |   |   | PredecessorCompany                      |   |
|------------------------------------------------------|--------|------------------------------|--------|--------|-----------------------------------------|--------|
|                                                 |   | Year      Ended December 31, |   |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEndedMay      31, |   |
|                                                 |   | 2009                         |   |   | 2008                                    |   |   | 2007 |   |   | 2007 |   |
| Income      tax benefit (expense)                    |   |                         |   |   |                                    |   |   |   |   |   |   |   |
| Products      Pipelines–KMP                    |   | $                            | (3.1   | )      |                                    | $      | 4.9 |   |   | $ | (5.4 | ) |   | $ | (7.5 | ) |
| Natural      Gas Pipelines–KMP                 |   |                         | (5.7   | )      |                                    |   | (2.7 | ) |   |   | (3.4 | ) |   |   | (2.6 | ) |
| CO2–KMP                                        |   |                         | (4.0   | )      |                                    |   | (3.9 | ) |   |   | (0.8 | ) |   |   | (1.3 | ) |
| Terminals–KMP                                  |   |                         | (5.2   | )      |                                    |   | (19.7 | ) |   |   | (15.9 | ) |   |   | (3.3 | ) |
| Kinder      Morgan Canada–KMP                  |   |                         | (18.9  | )      |                                    |   | 19.0 |   |   |   | (18.5 | ) |   |   | (0.9 | ) |
| Total      segment income tax benefit (expense)      |   |                         | (36.9  | )      |                                    |   | (2.4 | ) |   |   | (44.0 | ) |   |   | (15.6 | ) |
| Unallocated      income tax benefit (expense)        |   |                         | (288.7 | )      |                                    |   | (301.9 | ) |   |   | (183.4 | ) |   |   | (119.9 | ) |
| Total      consolidated income tax benefit (expense) |   | $                            | (325.6 | )      |                                    | $      | (304.3 | ) |   | $ | (227.4 | ) |   | $ | (135.5 | ) |

----

|                                                                                                                                     |   | Successor      Company       |     |   | PredecessorCompany                      |   |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|----------|--------|-----------------------------------------|--------|
|                                                                                                                                     |   | Year      Ended December 31, |     |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEndedMay      31, |   |
|                                                                                                                                     |   | 2009                         |     |   | 2008                                    |   |   | 2007 |   |   | 2007 |   |
| Segment      earnings before depreciation, depletion, amortization and amortization of      excess cost of equity investments(g)         |   |                         |     |   |                                    |   |   |   |   |   |   |   |
| Products      Pipelines–KMP                                                                                                        |   | $                            | 584.0    |   |                                    | $      | (722.0 | ) |   | $ | 162.5 |   |   | $ | 224.4 |   |
| Natural      Gas Pipelines–KMP                                                                                                     |   |                         | 788.7    |   |                                    |   | (1,344.3 | ) |   |   | 373.3 |   |   |   | 228.5 |   |
| CO2–KMP                                                                                                                            |   |                         | 878.5    |   |                                    |   | 896.1 |   |   |   | 433.0 |   |   |   | 210.0 |   |
| Terminals–KMP                                                                                                                      |   |                         | 596.4    |   |                                    |   | (156.5 | ) |   |   | 243.7 |   |   |   | 172.3 |   |
| Kinder      Morgan Canada–KMP                                                                                                      |   |                         | 154.5    |   |                                    |   | 152.0 |   |   |   | 58.8 |   |   |   | (332.0 | ) |
| NGPL      PipeCo LLC(a)                                                                                                                  |   |                         | 42.5     |   |                                    |   | 129.8 |   |   |   | 422.8 |   |   |   | 267.4 |   |
| Power                                                                                                                                    |   |                         | 4.8      |   |                                    |   | 5.7 |   |   |   | 13.4 |   |   |   | 8.9 |   |
| Segment      earnings before depreciation, depletion, amortization  and      amortization of excess cost of equity investments |   |                         | 3,049.4  |   |                                    |   | (1,039.2 | ) |   |   | 1,707.5 |   |   |   | 779.5 |   |
| Total      segment depreciation, depletion and amortization                                                                              |   |                         | (1,070.2 | )      |                                    |   | (918.4 | ) |   |   | (472.3 | ) |   |   | (261.0 | ) |
| Total      segment amortization of excess cost of equity investments                                                                     |   |                         | (5.8     | )      |                                    |   | (5.7 | ) |   |   | (3.4 | ) |   |   | (2.4 | ) |
| NGPL      PipeCo LLC fixed fee revenue                                                                                                   |   |                         | 45.8     |   |                                    |   | 39.0 |   |   |   | - |   |   |   | - |   |
| General      and administrative expenses                                                                                                 |   |                         | (373.0   | )      |                                    |   | (352.5 | ) |   |   | (175.6 | ) |   |   | (283.6 | ) |
| Unallocable      interest and other, net(h)                                                                                              |   |                         | (583.7   | )      |                                    |   | (623.6 | ) |   |   | (586.7 | ) |   |   | (254.6 | ) |
| Unallocable      income tax expense                                                                                                      |   |                         | (288.7   | )      |                                    |   | (301.9 | ) |   |   | (183.4 | ) |   |   | (119.9 | ) |
| Income      (loss) from continuing operations                                                                                            |   | $                            | 773.8    |   |                                    | $      | (3,202.3 | ) |   | $ | 286.1 |   |   | $ | (142.0 | ) |

|                                         |   | Successor      Company       |    |   | PredecessorCompany                      |   |
|----------------------------------------------|--------|------------------------------|---------|--------|-----------------------------------------|--------|
|                                         |   | Year      Ended December 31, |    |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEndedMay      31, |   |
|                                         |   | 2009                         |    |   | 2008                                    |   |   | 2007 |   |   | 2007 |   |
| Capital      expenditures(i)                 |   |                         |    |   |                                    |   |   |   |   |   |   |   |
| Products      Pipelines–KMP            |   | $                            | 199.8   |   |                                    | $      | 221.7 |   |   | $ | 179.9 |   |   | $ | 79.5 |   |
| Natural      Gas Pipelines–KMP         |   |                         | 372.0   |   |                                    |   | 946.5 |   |   |   | 197.4 |   |   |   | 66.6 |   |
| CO2–KMP                                |   |                         | 341.8   |   |                                    |   | 542.6 |   |   |   | 249.2 |   |   |   | 133.3 |   |
| Terminals–KMP                          |   |                         | 378.2   |   |                                    |   | 454.1 |   |   |   | 310.1 |   |   |   | 169.9 |   |
| Kinder      Morgan Canada–KMP          |   |                         | 32.0    |   |                                    |   | 368.1 |   |   |   | 196.7 |   |   |   | 109.0 |   |
| NGPL      PipeCo LLC(a)                      |   |                         | -       |   |                                    |   | 10.3 |   |   |   | 152.0 |   |   |   | 77.3 |   |
| Power                                        |   |                         | -       |   |                                    |   | - |   |   |   | - |   |   |   | - |   |
| Other                                        |   |                         | 0.5     |   |                                    |   | 2.0 |   |   |   | 1.7 |   |   |   | 17.2 |   |
| Total      consolidated capital expenditures |   | $                            | 1,324.3 |   |                                    | $      | 2,545.3 |   |   | $ | 1,287.0 |   |   | $ | 652.8 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2009   |    |   | 2008   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Investments      at December 31                                                                                                                                                                                                                                                                                                                                                                                   |   |   |    |   |   |   |
| Products      Pipelines–KMP                                                                                                                                                                                                                                                                                                                                                                                 |   | $      | 346.9   |   |   | $      | 349.6 |   |
| Natural      Gas Pipelines–KMP                                                                                                                                                                                                                                                                                                                                                                              |   |   | 2,542.8 |   |   |   | 654.0 |   |
| CO2–KMP                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 11.2    |   |   |   | 13.6 |   |
| Terminals–KMP                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 18.7    |   |   |   | 18.6 |   |
| Kinder      Morgan Canada–KMP                                                                                                                                                                                                                                                                                                                                                                               |   |   | 68.7    |   |   |   | 65.5 |   |
| NGPL      PipeCo LLC(a)                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 698.5   |   |   |   | 717.3 |   |
| Total      segment investments                                                                                                                                                                                                                                                                                                                                                                          |   |   | 3,686.8 |   |   |   | 1,818.6 |   |
| Other                                                                   |   |   | 8.8     |   |   |   | 8.8 |   |
| Total      consolidated investments                                                                                                                                                                                                                                                                                                                                                           |   | $      | 3,695.6 |   |   | $      | 1,827.4 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 2009   |     |   | 2008   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Assets      at December 31                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |     |   |   |   |
| Products      Pipelines–KMP                                                                                                                                                                                                                                                                                                                                                                                             |   | $      | 5,614.7  |   |   | $      | 5,526.4 |   |
| Natural      Gas Pipelines–KMP                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 9,956.7  |   |   |   | 7,748.1 |   |
| CO2–KMP                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 4,230.5  |   |   |   | 4,478.7 |   |
| Terminals–KMP                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 4,537.3  |   |   |   | 4,327.8 |   |
| Kinder      Morgan Canada–KMP                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 1,797.7  |   |   |   | 1,583.9 |   |
| NGPL      PipeCo LLC(a)                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 698.5    |   |   |   | 717.3 |   |
| Power                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 67.6     |   |   |   | 58.9 |   |
| Total      segment      assets                                                                     |   |   | 26,903.0 |   |   |   | 24,441.1 |   |
| Other(j)                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 683.3    |   |   |   | 1,003.8 |   |
| Total      consolidated      assets                                                                |   | $      | 27,586.3 |   |   | $      | 25,444.9 |   |

| (a) | Effective      February 15, 2008, we sold an 80% ownership interest in NGPL PipeCo LLC to      Myria. As a result of the sale, beginning February 15, 2008, we account      for our 20% ownership interest in NGPL PipeCo LLC as an equity method      investment and 100% of NGPL revenues, earnings and assets prior to the      sale, are included in the above tables.                                                                                                    |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | Upon      the adoption of Accounting Standards Update No. 2009-17, which amended the      codification’s “Consolidation” topic, on January 1, 2010, Triton Power      operations will no longer be consolidated into our financial statements,      but be treated as an equity investment, resulting in decreases to      revenues, operating expenses and noncontrolling interests with no impact      to segment earnings before DD&A (see Note 18). |
| (c) | 2009      and 2008 includes NGPL fixed fee revenues of $45.8 million and $39.0      million, respectively (see Note 11).                                                                                                                                                                                                                                                                                                                                                      |
| (d) | Includes      natural gas purchases and other costs of sales, operations and maintenance      expenses, fuel and power expenses and taxes, other than income      taxes.                                                                                                                                                                                                                                                                                                      |
| (e) | 2008      includes non-cash goodwill impairment charges (see Note  7).                                                                                                                                                                                                                                                                                                                                                                                                        |
| (f) | Five      months ended May 31, 2007 includes non-cash goodwill impairment charge      (see Note 7).                                                                                                                                                                                                                                                                                                                                                                           |
| (g) | Includes      revenues, earnings from equity investments, allocable interest income, and      other, net, less operating expenses, allocable income taxes, and other      expense (income).                                                                                                                                                                                                                                                                                   |
| (h) | Includes      (i) interest expense and (ii) miscellaneous other income and expenses not      allocated to business segments.                                                                                                                                                                                                                                                                                                                                                  |
| (i) | Sustaining      capital expenditures, including Kinder Morgan Energy Partners’ share of      Rockies Express’ sustaining capital expenditures, for each of the years      ended December 31, 2009 and 2008, seven months ended December 31, 2007 and      five months ended May 31, 2007, were $172.7 million, $183.9 million,      $164.6 million and $78.6 million, respectively.                                                                               |
| (j) | Includes      cash and cash equivalents, margin and restricted deposits, unallocable      interest receivable, prepaid assets and deferred charges, and risk      management assets related to the fair value of interest rate      swaps.                                                                                                                                                                                                                                    |

|                                                     | Successor      Company       |   |                                    | Predecessor      Company |   |
|----------------------------------------------------------|------------------------------|--------|-----------------------------------------|--------------------------|--------|
|                                                     | Year      Ended December 31, |   | Seven      MonthsEndedDecember      31, |                     |   | Five      MonthsEndedMay      31, |   |
|                                                     | 2009                         |   | 2008                                    |                     | 2007   |   |   | 2007 |   |
| Revenues      from external customers                    |                         |   |                                    |                     |   |   |   |   |   |   |   |   |   |
| United      States                                       |                         | $      | 6,862.3                                 |                     |   | $ | 11,804.2 |   |   | $ | 6,239.7 |   |   |   | $ | 4,086.6 |   |
| Canada                                                   |                         |   | 301.9                                   |                     |   |   | 269.3 |   |   |   | 143.5 |   |   |   |   | 70.5 |   |
| Mexico      and other(a)                                 |                         |   | 21.0                                    |                     |   |   | 21.3 |   |   |   | 11.5 |   |   |   |   | 8.0 |   |
| Total      consolidated revenues from external customers |                         | $      | 7,185.2                                 |                     |   | $ | 12,094.8 |   |   | $ | 6,394.7 |   |   |   | $ | 4,165.1 |   |

|                                      |   | 2009   |     |   | 2008   |   |
|-------------------------------------------|--------|--------|----------|--------|--------|--------|
| Long-lived      assets at December 31(b)  |   |   |     |   |   |   |
| United      States                        |   | $      | 19,258.2 |   |   | $      | 17,511.1 |   |
| Canada                                    |   |   | 1,834.3  |   |   |   | 1,568.7 |   |
| Mexico      and other(a)                  |   |   | 98.8     |   |   |   | 97.7 |   |
| Total      consolidated long-lived assets |   | $      | 21,191.3 |   |   | $      | 19,177.5 |   |

| (a) | Includes      operations in Mexico and the Netherlands.                         |
|-----|---------------------------------------------------------------------------------|
| (b) | Long-lived      assets exclude (i) goodwill and (ii) other intangibles,    net. |

----

|   | · | FERC      Docket Nos. OR92-8, et      al (West and East Line Rates)—Complainants: Chevron, Navajo, ARCO,      BP, Western Refining, ExxonMobil, Tosco, and Texaco—Defendant:      SFPP—Status:  Appeals pending at the D.C.    Circuit; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FERC      Docket No. OR92-8-025 (Watson Drain-Dry      Charge)—Complainants:  BP; ExxonMobil; Chevron; ConocoPhillips;      and Ultramar—Defendant: SFPP—Status:  Appeal denied by the D.C.      Circuit; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FERC      Docket Nos. OR96-2, et      al (All SFPP Rates)—Complainants: All Shippers except      Chevron—Defendant: SFPP—Status:  Compliance filings pending with      FERC; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FERC      Docket No. OR02-4 (All SFPP Rates)—Complainant: Chevron—Defendant: SFPP;      Status:  Appeal of complaint dismissal pending at the D.C.      Circuit; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FERC      Docket Nos. OR03-5, OR04-3, OR05-4 & OR05-5 (West, East, North, and      Oregon Line Rates)—Complainants: BP, ExxonMobil, ConocoPhillips, the      Airlines—Defendant: SFPP—Status:  Exceptions to initial decision      pending at FERC; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FERC      Docket Nos. OR07-1 & OR07-2 (North and West Line Rates)—Complainant:      Tesoro—Defendant: SFPP—Status:  Held in  abeyance; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FERC      Docket Nos. OR07-3 & OR07-6 (not consolidated) (2005-2006 Index Rate      Increases)—Complainants: BP, Chevron, ConocoPhillips, ExxonMobil, Tesoro,      and Valero Marketing—Defendant: SFPP—Status:  Appeal of      dismissal by FERC pending at the D.C.Circuit; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FERC      Docket No. OR07-4 (All SFPP Rates)—Complainants: BP, Chevron, and      ExxonMobil—Defendants: SFPP—Status:  Held in      abeyance; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FERC      Docket Nos. OR07-7, OR07-18, OR07-19 & OR07-22 (not consolidated)      (Calnev Rates)—Complainants : Tesoro, Airlines, BP, Chevron,      ConocoPhillips and Valero Marketing—Defendants:      Calnev—Status:  Complaint amendments pending before      FERC; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FERC      Docket No. OR07-20 (2007 Index Rate Increases)—Complainant: BP—Defendant:      SFPP—Status:  Appeal of dismissal by FERC pending at the D.C.      Circuit; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FERC      Docket No. OR08-13 (Most SFPP Rates)—Complainants: BP and      ExxonMobil—Defendant: SFPP—Status:  Held in      abeyance; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FERC      Docket No. IS05-230 (North Line Rates)—Protestants: Shippers—Defendant:      SFPP—Status:  Exceptions to initial decision pending at      FERC; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | FERC      Docket No. IS08-390 (West Line Rates)— Protestants: BP, ExxonMobil,      ConocoPhillips, Valero Marketing, Chevron, the Airlines—Defendant:      SFPP—Status:  Exceptions to initial decision pending at      FERC; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FERC      Docket No. IS09-375 (2009 Index Rate Increases)—Protestants: BP,      ExxonMobil, Chevron, Tesoro, ConocoPhillips, Western, Navajo, Valero      Marketing, and Southwest—Defendant: SFPP—Status:  Requests for      rehearing of FERC dismissal pending beforeFERC; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FERC      Docket No. IS09-377 (2009 Index Rate Increases)— Protestants: BP, Chevron,      and Tesoro—Defendant: Calnev—Status:  Requests for rehearing of      FERC dismissal pending before FERC; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FERC      Docket No. IS09-437 (East Line Rates)—Protestants: BP, ExxonMobil,      ConocoPhillips, Valero, Chevron, Western Refining, and Southwest      Airlines—Defendant: SFPP—Status:  Pre-hearing    stage; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FERC      Docket Nos. OR08-15/OR09-8 (consolidated) (2008 Index      Increases)—Complainants:  BP/Chevron—Defendant:  SFPP—Status:  Complaints      partially dismissed and remainder set for hearing; hearing held in      abeyance pending settlementdiscussions; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FERC      Docket Nos. OR09-18/OR09-21 (not consolidated) (2008 and 2009 Index      Increases)—Complainants: BP (for 2009)/Tesoro (for 2008 and      2009)—Defendant: SFPP—Status:  BP appeal of FERC dismissal      pending at the D.C. Circuit; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FERC      Docket Nos. OR09-11/OR09-14 (not consolidated) (2007 and 2008 Page 700      Audit Request)—Complainants: BP/Tesoro—Defendant:      Calnev—Status:  BP appeal of FERC dismissal pending at the D.C.      Circuit; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FERC      Docket Nos. OR09-12/OR09-16 (not consolidated) (2007 and 2008 Page 700      Audit Request)—Complainants: BP/Tesoro—Defendant:      SFPP—Status:  BP appeal of FERC dismissal pending at the D.C.      Circuit; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FERC      Docket Nos. OR09-15/OR09-20 (not consolidated) (Calnev      Rates)—Complainants: Tesoro/BP—Defendant:      Calnev—Status:  Complaints pending at  FERC; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FERC      Docket Nos. OR09-17/OR09-22 (Most SFPP Rates) (not      consolidated)—Complainants: Tesoro/BP—Defendant:      SFPP—Status:  BP appeal of FERC dismissal pending at the D.C.      Circuit; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | FERC      Docket Nos. OR09-19/OR09-23 (not consolidated) (2009 Index      Increases)—Complainants: Tesoro/BP—Defendant: Calnev—Status:  BP      appeal of FERC dismissal pending at the D.C.  Circuit. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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|                                                       |   | Three      Months Ended |    |
|------------------------------------------------------------|--------|-------------------------|---------|
|                                                       |   | March      31,2009      |    |   | June      30,2009 |   |   | September      30,2009 |   |   | December      31,2009 |   |
|                                                       |   | (In      millions)      |    |
| Revenues                                                   |   | $                       | 1,828.9 |   |   | $ | 1,693.3 |   |   | $ | 1,712.3 |   |   | $ | 1.950.7 |   |
| Operating      income                                      |   | $                       | 309.9   |   |   | $ | 346.7 |   |   | $ | 391.2 |   |   | $ | 359.4 |   |
| Income      from continuing operations before income taxes |   | $                       | 225.7   |   |   | $ | 275.4 |   |   | $ | 329.1 |   |   | $ | 269.2 |   |
| Income      from continuing operations                     |   | $                       | 145.1   |   |   | $ | 208.4 |   |   | $ | 229.5 |   |   | $ | 190.8 |   |
| Net      income                                            |   | $                       | 144.9   |   |   | $ | 209.1 |   |   | $ | 229.4 |   |   | $ | 190.7 |   |
| Net      income attributable to noncontrolling interests   |   | $                       | 29.6    |   |   | $ | 79.3 |   |   | $ | 106.6 |   |   | $ | 62.6 |   |
| Net      income attributable to Kinder Morgan, Inc.        |   | $                       | 115.3   |   |   | $ | 129.8 |   |   | $ | 122.8 |   |   | $ | 128.1 |   |

|                                                                   |   | Three      Months Ended |    |
|------------------------------------------------------------------------|--------|-------------------------|---------|
|                                                                   |   | March      31,2008      |    |   | June      30,2008 |   |   | September      30,2008 |   |   | December      31,2008 |   |
|                                                                   |   | (In      millions)      |    |
| Revenues                                                               |   | $                       | 2,895.0 |   |   | $ | 3,560.5 |   |   | $ | 3,296.6 |   |   | $ | 2,342.7 |   |
| Operating      income (loss)                                           |   | $                       | 476.2   |   |   | $ | (3,638.1 | ) |   | $ | 398.3 |   |   | $ | 291.5 |   |
| Income      (loss) from continuing operations before income taxes |   | $                       | 319.1   |   |   | $ | (3,714.5 | ) |   | $ | 303.6 |   |   | $ | 193.8 |   |
| Income      (loss) from continuing operations                          |   | $                       | 232.0   |   |   | $ | (3,733.9 | ) |   | $ | 215.7 |   |   | $ | 83.9 |   |
| Net      income (loss)                                                 |   | $                       | 231.9   |   |   | $ | (3,734.2 | ) |   | $ | 215.5 |   |   | $ | 83.6 |   |
| Net      income attributable to noncontrolling interests               |   | $                       | 126.2   |   |   | $ | 126.4 |   |   | $ | 106.8 |   |   | $ | 36.7 |   |
| Net      income (loss) attributable to Kinder Morgan, Inc.             |   | $                       | 105.7   |   |   | $ | (3,860.6 | ) |   | $ | 108.7 |   |   | $ | 46.9 |   |

----

|                                                                         |   | Productive Wells      (a) |   |   | Service Wells      (b) |   |   | Drilling Wells      (c) |   |
|------------------------------------------------------------------------------|--------|---------------------------|--------|--------|------------------------|--------|--------|-------------------------|--------|
|                                                                         |   | Gross                     |   |   | Net                    |   |   | Gross                   |   |   | Net |   |   | Gross |   |   | Net |   |
| Crude      Oil                                                               |   |                      | 2,290  |   |                   |   | 1,423  |                    |   |   | 983 |   |   |   | 759 |   |   |   | 4 |   |   |   | 4 |   |
| Natural      Gas                                                             |   |                      | 5      |   |                   |   | 2      |                    |   |   | 31 |   |   |   | 15 |   |   |   | - |   |   |   | - |   |
| Total Wells           |   |                      | 2,295  |   |                   |   | 1,425  |                    |   |   | 1,014 |   |   |   | 774 |   |   |   | 4 |   |   |   | 4 |   |

| (a) | Includes      active wells and wells temporarily shut-in.  As of December 31,      2009, Kinder Morgan Energy Partners did not operate any productive wells      with multiple completions.                                                                                                                                             |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | Consists      of injection, water supply, disposal wells and service wells temporarily      shut-in.  A disposal well is used for disposal of salt water      into an underground formation; a service well is a well drilled in a known      oil field in order to inject liquids that enhance recovery or dispose of      salt water. |
| (c) | Consists      of development wells in the process of being drilled as of December 31,      2009. A      development well is a well drilled in an already discovered oil      field.                                                                                                                                                          |

|                                                                                                                                                                                                                    |   | Year      Ended December 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                                                                                                                                                                    |   | 2009                         |   |   | 2008 |   |   | 2007 |   |
| Productive                                                                                                                                                                                                              |   |                         |   |   |   |   |   |   |   |
| Development                                   |   |                         | 42     |   |   |   | 47 |   |   |   | 31 |   |
| Exploratory                                   |   |                         | -      |   |   |   | - |   |   |   | - |   |
| Dry                                                                                                                                                                                                                     |   |                         |   |   |   |   |   |   |   |   |   |   |
| Development                                   |   |                         | -      |   |   |   | - |   |   |   | - |   |
| Exploratory                                   |   |                         | -      |   |   |   | - |   |   |   | - |   |
| Total      Wells                                                                                                                                                                                                        |   |                         | 42     |   |   |   | 47 |   |   |   | 31 |   |

|  Note:   | The      above table includes wells that were completed during each year regardless      of the year in which drilling was initiated, and does not include any      wells where drilling operations were not completed as of the end of the      applicable year.  Development wells include wells drilled in the      proved area of an oil or gasresevoir. |
|-------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                   |   | Gross  |   |   | Net    |   |
|------------------------|--------|--------|--------|--------|--------|--------|
| Developed      Acres   |   |   | 72,435 |   |   |   | 67,748 |   |
| Undeveloped      Acres |   |   | 9,715  |   |   |   | 9,056 |   |
| Total                  |   |   | 82,150 |   |   |   | 76,804 |   |

----

|                                                           |   | Year      Ended December 31, |   |
|----------------------------------------------------------------|--------|------------------------------|--------|
|                                                           |   | 2009                         |   |   | 2008 |   |   | 2007 |   |
| Consolidated      Companies(a)                                 |   |                         |   |   |   |   |   |   |   |
| Production      costs per barrel of oil equivalent(b)(c)(d)    |   | $                            | 11.44  |   |   | $ | 15.70 |   |   | $ | 12.84 |   |
| Crude      oil production (MBbl/d)                             |   |                         | 37.4   |   |   |   | 36.2 |   |   |   | 35.6 |   |
| SACROC      crude oil production (MBbl/d)                      |   |                         | 25.1   |   |   |   | 23.3 |   |   |   | 23.0 |   |
| Yates      crude oil production (MBbl/d)                       |   |                         | 11.8   |   |   |   | 12.3 |   |   |   | 12.0 |   |
|                                                           |   |                         |   |   |   |   |   |   |   |   |   |   |
| Natural      gas liquids production (MBbl/d)(d)                |   |                         | 5.4    |   |   |   | 4.8 |   |   |   | 5.5 |   |
| Natural      gas liquids production from gas plants(MBbl/d)(e) |   |                         | 4.0    |   |   |   | 3.5 |   |   |   | 4.1 |   |
| Total      natural gas liquids production(MBbl/d)              |   |                         | 9.5    |   |   |   | 8.3 |   |   |   | 9.6 |   |
| SACROC      natural gas liquids production (MBbl/d)(d)         |   |                         | 5.3    |   |   |   | 4.6 |   |   |   | 5.2 |   |
| Yates      natural gas liquids production (MBbl/d)(d)          |   |                         | 0.1    |   |   |   | 0.2 |   |   |   | 0.2 |   |
|                                                           |   |                         |   |   |   |   |   |   |   |   |   |   |
| Natural      gas production (MMcf/d)(d)(f)                     |   |                         | 0.9    |   |   |   | 1.4 |   |   |   | 0.8 |   |
| Natural      gas production from gas plants(MMcf/d)(e)(f)      |   |                         | 0.7    |   |   |   | 0.2 |   |   |   | 0.3 |   |
| Total      natural gas production(MMcf/d)(f)                   |   |                         | 1.6    |   |   |   | 1.6 |   |   |   | 1.1 |   |
| Yates      natural gas production (MMcf/d)(d)(f)               |   |                         | 0.8    |   |   |   | 1.3 |   |   |   | 0.7 |   |
| Average      sales prices including hedge gains/losses:        |   |                         |   |   |   |   |   |   |   |   |   |   |
| Crude      oil price per Bbl(g)                                |   | $                            | 49.55  |   |   | $ | 49.42 |   |   | $ | 36.05 |   |
| Natural      gas liquids price per Bbl(g)                      |   | $                            | 37.70  |   |   | $ | 63.48 |   |   | $ | 52.22 |   |
| Natural      gas price per Mcf(h)                              |   | $                            | 3.45   |   |   | $ | 7.73 |   |   | $ | 6.08 |   |
| Total      natural gas liquids price per Bbl(e)                |   | $                            | 37.96  |   |   | $ | 63.00 |   |   | $ | 52.91 |   |
| Total      natural gas price per Mcf(e)                        |   | $                            | 3.53   |   |   | $ | 7.63 |   |   | $ | 5.89 |   |
| Average      sales prices excluding hedge gains/losses:        |   |                         |   |   |   |   |   |   |   |   |   |   |
| Crude      oil price per Bbl(g)                                |   | $                            | 59.03  |   |   | $ | 97.70 |   |   | $ | 69.63 |   |
| Natural      gas liquids price per Bbl(g)                      |   | $                            | 37.70  |   |   | $ | 63.48 |   |   | $ | 52.22 |   |
| Natural      gas price per Mcf(h)                              |   | $                            | 3.45   |   |   | $ | 7.73 |   |   | $ | 6.08 |   |

| (a) | Amounts      relate to Kinder Morgan CO2      Company, L.P. and its consolidated subsidaries.                                                                                                                                                                    |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | Computed      using production costs, excluding transportation costs, as defined by the      SEC.  Natural gas volumes were converted to barrels of oil      equivalent using a conversion factor of six mcf of natural gas to one      barrel of oil. |
| (c) | Production      costs include labor, repairs and maintenance, materials, supplies, fuel      and power, and general and administrative expenses directly related to oil      and gas producing activities.                                                       |
| (d) | Includes      only production attributable to leasehold ownership.                                                                                                                                                                                               |
| (e) | Includes      production attributable to Kinder Morgan Energy Partners’ ownership in      processing plants and third party processingagreements.                                                                                                          |
| (f) | Excludes      natural gas production used as fuel.                                                                                                                                                                                                               |
| (g) | Hedge      gains/losses for crude oil and natural gas liquids are included with crude      oil.                                                                                                                                                                  |
| (h) | Natural      gas sales were not hedged.                                                                                                                                                                                                                          |

----

|                                           |   | As      of December 31, |     |
|------------------------------------------------|--------|-------------------------|----------|
|                                           |   | 2009                    |     |   | 2008 |   |   | 2007 |   |
| Consolidated      Companies(a)                 |   |                    |     |   |   |   |   |   |   |
| Wells      and equipment, facilities and other |   | $                       | 2,920.7  |   |   | $ | 2,595.4 |   |   | $ | 2,081.3 |   |
| Leasehold                                      |   |                    | 433.5    |   |   |   | 429.8 |   |   |   | 449.3 |   |
| Total      proved oil and gas properties       |   |                    | 3,354.2  |   |   |   | 3,025.2 |   |   |   | 2,530.6 |   |
| Accumulated      depreciation and depletion    |   |                    | (1,764.0 | ) |   |   | (1,155.6 | ) |   |   | (787.6 | ) |
| Net      capitalized costs                     |   | $                       | 1,590.2  |   |   | $ | 1,869.6 |   |   | $ | 1,743.0 |   |

| (a) | Amounts      relate to Kinder Morgan CO2      Company, L.P. and its consolidated subsidaries.  Includes      capitalized asset retirement costs and associated accumulated      depreciation.  There are no capitalized costs associated with      unproved oil and gas properties for the periods  reported. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                               | Successor      Company       |   |                                    | PredecessorCompany |   |
|------------------------------------|------------------------------|--------|-----------------------------------------|--------------------|--------|
|                               | Year      Ended December 31, |   | Seven      MonthsEndedDecember      31, |               |   | Five      MonthsEndedMay      31, |   |
|                               | 2009                         |   | 2008                                    |               | 2007   |   |   | 2007 |   |
| Consolidated      Companies(a)     |                         |   |                                    |               |   |   |   |   |   |   |   |   |   |
| Property      Acquisition          |                         |   |                                    |               |   |   |   |   |   |   |   |   |   |
| Proved      oil and gas properties |                         | $      | 5.3                                     |               |   | $ | - |   |   | $ | - |   |   |   | $ | - |   |
| Development                        |                         |   | 330.3                                   |               |   |   | 495.2 |   |   |   | 156.9 |   |   |   |   | 87.5 |   |

| (a) | Amounts      relate to Kinder Morgan CO2      Company, L.P. and its consolidated subsidaries.  There are no      costs incurred associated with unproved oil and gas properties for the      periods reported.  All capital expenditures were made to develop      our proved oil and gas properties and no exploration costs were incurred      for the periods reported. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                            |   | Successor      Company       |   |   | PredecessorCompany                      |   |
|-----------------------------------------------------------------|--------|------------------------------|--------|--------|-----------------------------------------|--------|
|                                                            |   | Year      Ended December 31, |   |   | Seven      MonthsEndedDecember      31, |   |   | Five      MonthsEndedMay      31, |   |
|                                                            |   | 2009                         |   |   | 2008                                    |   |   | 2007 |   |   | 2007 |   |
| Consolidated      Companies(a)                                  |   |                         |   |   |                                    |   |   |   |   |   |   |   |
| Revenues(b)                                                     |   | $                            | 767.0  |   |                                    | $      | 785.5 |   |   | $ | 352.0 |   |   | $ | 237.7 |   |
| Expenses:                                                       |   |                         |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Production      costs(c)                                        |   |                         | 188.8  |   |                                    |   | 308.4 |   |   |   | 147.2 |   |   |   | 96.7 |   |
| Other      operating expense                                    |   |                         | 53.3   |   |                                    |   | 99.0 |   |   |   | 34.9 |   |   |   | 22.0 |   |
| Depreciation,      depletion and amortization expenses          |   |                         | 441.4  |   |                                    |   | 342.2 |   |   |   | 151.9 |   |   |   | 106.6 |   |
| Total      expenses                                             |   |                         | 683.5  |   |                                    |   | 749.6 |   |   |   | 334.0 |   |   |   | 225.3 |   |
| Results      of operations for oil and gas producing activities |   | $                            | 83.5   |   |                                    | $      | 35.9 |   |   | $ | 18.0 |   |   | $ | 12.4 |   |

| (a) | Amounts      relate to Kinder Morgan CO2      Company, L.P. and its consolidated subsidaries.                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | Revenues      include losses attributable to Kinder Morgan Energy Partners’ hedging      contracts of $129.5 million, $693.3 million, $311.5 million and $122.7      million for the years ended December 31, 2009 and 2008, seven months ended      December 31, 2007 and five months ended May 31, 2007,      respectively.                                                                                                                                                                                            |
| (c) | The      decrease in operating expenses in 2009 compared to 2008 was primarily due      to (i) lower prices charged by the industry’s material and service      providers (for items such as outside services, maintenance, and well      workover services), which impacted rig costs, other materials and      services, and capital and exploratory costs, (ii) lower fuel and utility      rates and (iii) the successful renewal of lower priced service and supply      contracts negotiated since the end of2008. |

----

| (d) | Consists      primarily of carbon dioxideexpense. |
|-----|---------------------------------------------------|

|   | · | no      employee’s compensation is tied to the amount of recorded      reserves; |
|--------|--------|----------------------------------------------------------------------------------------|

|   | · | we      follow comprehensive SEC compliant internal policies to determine and      report proved reserves, and its reserve estimates are made by independent      oil and gas reservoir engineers or under their direct      supervision; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | we      review our reported proved reserves at each year-end, and at each year-end      the CO2–KMP      business segment managers and the Vice President (President, CO2–KMP)      reviews all significant reserves changes and all new proved developed and      undeveloped reserves additions; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our      CO2–KMP      business segment reports independently of our other six remaining      reportable business segments. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

----

|                                            |   | Consolidated      Companies(a) |    |
|-------------------------------------------------|--------|--------------------------------|---------|
|                                            |   | Crude      Oil(MBbls)          |    |   | NGLs(MBbls) |   |   | Natural      Gas(MMcf)(b) |   |
| Proved      developed and undeveloped reserves: |   |                           |    |   |   |   |   |   |   |
| As      of December 31, 2006                    |   |                           | 123,978 |   |   |   | 10,333 |   |   |   | 291 |   |
| Revisions      of previous estimates(c)         |   |                           | 10,361  |   |   |   | 2,784 |   |   |   | 1,077 |   |
| Production                                      |   |                           | (12,984 | ) |   |   | (2,005 | ) |   |   | (290 | ) |
| As      of December 31, 2007                    |   |                           | 121,355 |   |   |   | 11,112 |   |   |   | 1,078 |   |
| Revisions      of previous estimates(d)         |   |                           | (29,536 | ) |   |   | (2,490 | ) |   |   | 695 |   |
| Production                                      |   |                           | (13,240 | ) |   |   | (1,762 | ) |   |   | (499 | ) |
| As      of December 31, 2008                    |   |                           | 78,579  |   |   |   | 6,860 |   |   |   | 1,274 |   |
| Revisions      of previous estimates(e)         |   |                           | 15,900  |   |   |   | 1,018 |   |   |   | (293 | ) |
| Production                                      |   |                           | (13,688 | ) |   |   | (1,995 | ) |   |   | (298 | ) |
| Purchases      of reserves in place             |   |                           | 53      |   |   |   | 37 |   |   |   | 15 |   |
| As      of December 31, 2009                    |   |                           | 80,844  |   |   |   | 5,920 |   |   |   | 698 |   |

| Proved      developed reserves: |   |   |   |   |   |   |   |   |   |
|---------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| As      of December 31, 2006    |   |   | 69,073 |   |   |   | 5,877  |   |   |   | 291 |   |
| As      of December 31, 2007    |   |   | 70,868 |   |   |   | 5,517  |   |   |   | 1,078 |   |
| As      of December 31, 2008    |   |   | 53,346 |   |   |   | 4,308  |   |   |   | 1,274 |   |
| As      of December 31, 2009    |   |   | 47,058 |   |   |   | 2,665  |   |   |   | 698 |   |

| Proved      undeveloped reserves: |   |   |   |   |   |   |   |   |   |
|-----------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| As      of December 31, 2006      |   |   | 54,905 |   |   |   | 4,456  |   |   |   | - |   |
| As      of December 31, 2007      |   |   | 50,487 |   |   |   | 5,595  |   |   |   | - |   |
| As      of December 31, 2008      |   |   | 25,233 |   |   |   | 2,552  |   |   |   | - |   |
| As      of December 31, 2009      |   |   | 33,786 |   |   |   | 3,255  |   |   |   | - |   |

| (a) |  Amounts      relate to Kinder Morgan CO2 Company, L.P.      and its consolidated subsidiaries.                |
|-----|---------------------------------------------------------------------------------------------------------------------|
| (b) | Natural      gas reserves are computed at 14.65 pounds per square inch absolute and 60      degrees fahrenheit.     |
| (c) | Associated      with an expansion of the carbon dioxide flood project area of the SACROC      unit.                 |
| (d) | Predominantly      due to lower product prices used to determine reserve    volumes.                                |
| (e) | Predominantly      due to higher product prices resulting in an expanded economic carbon      dioxide project area. |

|   | · | the      standardized measure includes our estimate of proved crude oil, natural      gas liquids and natural gas reserves and projected future production      volumes based upon year-end economicconditions; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | for      2009, pricing is applied based upon the 12 month unweighted arithmetic      average of the first day of the month price for the year, and for prior      years was based upon the price as of the end of the  year; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | future      development and production costs are determined based upon actual cost at      year-end; |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | · | the      standardized measure includes projections of future abandonment costs      based upon actual costs at year-end;and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | · | a      discount factor of 10% per year is applied annually to the future net cash      flows. |
|--------|--------|-----------------------------------------------------------------------------------------------|

----

|                                                          |   | As      of December 31, |     |
|---------------------------------------------------------------|--------|-------------------------|----------|
|                                                          |   | 2009                    |     |   | 2008 |   |   | 2007 |   |
| Consolidated      Companies(a)                                |   |                    |     |   |   |   |   |   |   |
| Future      cash inflows from production                      |   | $                       | 4,898.0  |   |   | $ | 3,498.0 |   |   | $ | 12,099.5 |   |
| Future      production costs                                  |   |                    | (1,951.5 | ) |   |   | (1,671.6 | ) |   |   | (3,536.2 | ) |
| Future      development costs(b)                              |   |                    | (1,179.7 | ) |   |   | (910.3 | ) |   |   | (1,919.2 | ) |
| Undiscounted      future net cash flows                       |   |                    | 1,766.8  |   |   |   | 916.1 |   |   |   | 6,644.1 |   |
| 10%      annual discount                                      |   |                    | (503.5   | ) |   |   | (257.7 | ) |   |   | (2,565.7 | ) |
| Standardized      measure of discounted future net cash flows |   | $                       | 1,263.3  |   |   | $ | 658.4 |   |   | $ | 4,078.4 |   |

| (a) | Amounts      relate to Kinder Morgan CO2      Company, L.P. and its consolidated subsidaries. |
|-----|-----------------------------------------------------------------------------------------------|
| (b) | Includes      abandonment costs.                                                              |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | As      of December 31, |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 2009                    |    |   | 2008 |   |   | 2007 |   |
| Consolidated      Companies(a)                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                    |    |   |   |   |   |   |   |
| Present      value as of January      1                                                                         |   | $                       | 658.4   |   |   | $ | 4,078.4 |   |   | $ | 2,207.8 |   |
| Changes      during the year:                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                    |    |   |   |   |   |   |   |   |   |   |
| Revenues      less production and other costs(b)                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                    | (652.7  | ) |   |   | (1,012.4 | ) |   |   | (722.1 | ) |
| Net      changes in prices, production and other costs(b)                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                    | 915.7   |   |   |   | (3,076.9 | ) |   |   | 2,153.2 |   |
| Development      costs incurred                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                    | 330.3   |   |   |   | 495.2 |   |   |   | 244.5 |   |
| Net      changes in future development costs                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                    | (445.4  | ) |   |   | 231.1 |   |   |   | (547.8 | ) |
| Purchases      of reserves in place                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                    | -       |   |   |   | - |   |   |   | - |   |
| Revisions      of previous quantity estimates(c)                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                    | 391.1   |   |   |   | (417.1 | ) |   |   | 510.8 |   |
| Accretion      of discount                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                    | 65.9    |   |   |   | 392.9 |   |   |   | 198.1 |   |
| Timing      differences and other                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                    | -       |   |   |   | (32.8 | ) |   |   | 33.9 |   |
| Net      change for the year                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                    | 604.9   |   |   |   | (3,420.0 | ) |   |   | 1,870.6 |   |
| Present      value as of December      31                                                                       |   | $                       | 1,263.3 |   |   | $ | 658.4 |   |   | $ | 4,078.4 |   |

| (a) | Amounts      relate to Kinder Morgan CO2 Company, L.P. and its consolidated      subsidaries.                                                                                                                                                                                                                                                                                           |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | Excludes      the effect of losses attributable to Kinder Morgan Energy Partners’      hedging contracts of $129.5 million, $639.3 million and $434.2 million for      the years ended December 31, 2009, 2008 and 2007,      respectively.                                                                                                                                       |
| (c) | 2009      revisions are primarily due to higher product prices resulting in an      expanded economic carbon dioxide project area .  2008 revisions      are predominately due to lower product prices used to determine reserve      volumes.  2007 revisions are associated with an expansion of the      carbon dioxide flood project area for the SACROC  unit. |

----

|                | KINDER      MORGAN, INC.(Registrant) |
|--------------------------|--------------------------------------|
|                     | By                                   | /s/      Kimberly A. Dang |   |
|                     |                            | Kimberly      A. DangVice      President and Chief Financial Officer |
| Date:      March 5, 2010 |                            |

|                      |   |                                                       |
|--------------------------------|--------|------------------------------------------------------------|
| /s/      Kimberly A. Dang      |   | Vice      President and Chief Financial Officer (Principal |
| Kimberly      A. Dang          |   | Financial      Officer and Principal Accounting Officer)   |
|                      |   |                                                       |
| /s/      Richard D. Kinder     |   | Director,      Chairman and Chief Executive Officer        |
| Richard      D. Kinder         |   | (Principal      Executive Officer)                         |
|                      |   |                                                       |
| /s/      Kenneth A. Pontarelli |   | Director                                                   |
| Kenneth      A. Pontarelli     |   |                                                       |
|                      |   |                                                       |
| /s/      C. Park Shaper        |   | Director                                                   |
| C.      Park Shaper            |   |                                                       |

----