Table of Contents

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FORM 10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION**Washington, D.C. 20549**

| x  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)    OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended**September 30, 2004**or

o  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)    OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____________to_____________Commission file number 1-06446**Kinder Morgan, Inc.**(Exact name of registrant as specified in its charter)

Kansas
  
48-0290000
(State or other jurisdiction of    incorporation or organization)
  
(I.R.S. Employer    Identification No.)  
500 Dallas    Street, Suite 1000, Houston, Texas 77002
(Address of principal executive offices, including zip    code)  
(713)    369-9000
(Registrant's telephone number, including area code)  
    
(Former name, former address and former fiscal year, if    changed since last report)
Indicate by check mark whether the registrant: (1) has filed allreports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934during the preceding 12 months (or for such shorter period that the registrant wasrequired to file such reports), and (2) has been subject to such filing requirements forthe past 90 days.

Yes x  No o

Indicate by check mark whether the registrant is an accelerated filer(as defined in Rule 12b-2 of the Exchange Act).

Yes x  No o

The number of shares outstanding of the registrant's common stock, $5par value, as of October 29, 2004 was 123,879,969 shares.

KINDER MORGAN, INC. AND SUBSIDIARIESFORM 10-QQUARTER ENDED SEPTEMBER 30, 2004Contents
  
Page    NumberPART I.FINANCIAL    INFORMATION  Item    1.Financial    Statements (Unaudited)  
   Consolidated Balance Sheets
3-4
   Consolidated Statements of Operations
5
   Consolidated Statements of Cash Flows
6
   Notes to Consolidated Financial    Statements
7-24  Item 2.
Management's Discussion    and Analysis of Financial
   Condition and Results of    Operations
25-42  Item 3.
Quantitative and    Qualitative Disclosures About Market Risk
42  Item    4.
Controls and Procedures
42  PART II.
OTHER    INFORMATION  Item 1.
Legal Proceedings
43  Item 2.Unregistered Sales of    Equity Securities and Use of Proceeds
43  Item 3.
Defaults Upon Senior    Securities
43  Item 4.
Submission    of Matters to a Vote of Security Holders
43  Item 5.
Other Information
43  Item 6.
Exhibits
44  SIGNATURE
45
2
**PART I. - FINANCIAL INFORMATION
*Item 1.  FinancialStatements.*
CONSOLIDATED BALANCE SHEETS(Unaudited)Kinder Morgan, Inc. and Subsidiaries****September 30,**December 31,**2004**2003
(In    thousands)**ASSETS:****Current Assets:**Cash and Cash Equivalents 
$    12,174 
$    11,076 Restricted Deposits 
     28,145 
     17,158 Accounts Receivable, Net:   Trade 
     63,039 
     75,903    Related Parties 
      8,031 
      1,584 Note Receivable 
      5,046 
          - Inventories 
     50,410 
     22,096 Gas Imbalances 
      5,805 
     33,320 Other 
     70,450 
    115,183 
    243,100 
    276,320    **Investments:**Kinder Morgan Energy Partners 
  2,090,196 
  2,106,312 Goodwill 
    947,730 
    972,380 Other 
    203,949 
    208,860 
  3,241,875 
  3,287,552    **Property, Plant and Equipment, Net**
  6,101,763 
  6,083,937 **  ****Deferred Charges and Other Assets**
    383,925 
    388,902   **Total Assets**
$ 9,970,663 
$10,036,711 
=========== 
=========== 
The accompanying notes are an integral part of these statements.

3
**CONSOLIDATED BALANCE SHEETS(Unaudited)Kinder Morgan, Inc. and Subsidiaries****September 30,**December 31,**2004**2003
(In thousands    except shares)**LIABILITIES AND STOCKHOLDERS' EQUITY:****Current Liabilities:**Current Maturities of Long-term Debt 
$   580,000 
$     5,000 Notes Payable 
     37,600 
    127,900 Accounts Payable:   Trade 
     35,631 
     61,385    Related Parties 
          - 
     10,632 Accrued Interest 
     33,662 
     68,596 Accrued Taxes 
     58,813 
     35,795 Gas Imbalances 
     18,156 
     38,494 Other 
    130,507 
    128,559 
    894,369 
    476,361 **  ****Other Liabilities and Deferred Credits:**Deferred Income Taxes 
  2,500,945 
  2,477,329 Other 
    156,126 
    197,435 
  2,657,071 
  2,674,764   **Long-term Debt:**  Outstanding Notes and    Debentures 
  2,257,557 
  2,837,487   Deferrable Interest Debentures    Issued to Subsidiary Trusts 
    283,600 
    283,600   Value of Interest Rate Swaps 
     85,659 
     88,242   
  2,626,816 
  3,209,329   **Minority Interests in Equity of    Subsidiaries**
  1,034,333 
  1,010,140   **Stockholders' Equity:**Common Stock-  Authorized - 150,000,000    Shares, Par Value $5 Per Share  Outstanding - 133,589,131 and    132,229,622 Shares,    Respectively,    Before Deducting 9,901,351 and 8,912,660    Shares Held in    Treasury 
    667,946 
    661,148 Additional Paid-in Capital 
  1,836,288 
  1,780,761 Retained Earnings 
    866,873 
    732,492 Treasury Stock 
   (505,337)
   (446,095)Deferred Compensation 
    (34,956)
    (36,506)Accumulated Other Comprehensive Loss 
    (72,740)
    (25,683)Total Stockholders' Equity 
  2,758,074 
  2,666,117   **Total Liabilities and Stockholders'    Equity**
$ 9,970,663 
$10,036,711 
=========== 
=========== 
The accompanying notes are an integral part of these statements.

4
**CONSOLIDATED STATEMENTSOF OPERATIONS (Unaudited)Kinder Morgan, Inc. and Subsidiaries****Three Months Ended    September 30,**Nine Months Ended    September 30,**2004**2003**2004**2003
(In thousands    except per share amounts)**Operating Revenues:**Natural Gas Transportation and Storage 
$ 171,468 
$ 163,377 
$ 542,207 
$ 509,204 Natural Gas Sales 
   51,834 
   70,619 
  231,877 
  264,108 Other 
   26,340 
   12,987 
   65,011 
   44,404     Total Operating    Revenues 
  249,642 
  246,983 
  839,095 
  817,716   **Operating Costs and Expenses:**Gas Purchases and Other Costs of Sales 
   55,821 
   72,515 
  241,502 
  265,322 Operations and Maintenance 
   42,650 
   30,754 
  116,778 
   92,204 General and Administrative 
   18,334 
   18,761 
   60,501 
   53,955 Depreciation and Amortization 
   29,949 
   29,225 
   89,137 
   87,897 Taxes, Other Than Income Taxes 
    6,953 
    8,148 
   23,785 
   22,705     Total Operating    Costs and Expenses 
  153,707 
  159,403 
  531,703 
  522,083   **Operating Income**
   95,935 
   87,580 
  307,392 
  295,633   **Other Income and (Expenses):**Equity in Earnings of Kinder Morgan Energy    Partners 
  143,979 
  116,659 
  405,548 
  341,886 Equity in Earnings of Other Equity    Investments 
    2,965 
    3,058 
    8,467 
    8,260 Interest Expense, Net 
  (33,990)
  (34,751)
  (98,785)
 (106,039)Interest Expense - Deferrable Interest    Debentures 
   (5,478)
        - 
  (16,434)
        - Interest Expense - Capital Trust Securities    
        - 
   (5,478)
        - 
   (5,478)Minority Interests
  (21,114)
  (10,183)
  (45,511)
  (41,580)Other, Net 
    1,756 
       18 
    3,277 
      140     Total Other Income    and (Expenses) 
   88,118 
   69,323 
  256,562 
  197,189   **Income Before Income Taxes**
  184,053 
  156,903 
  563,954 
  492,822 Income Taxes 
   72,123 
   61,273 
  220,592 
  191,928   **Net Income**
$ 111,930 
$  95,630 
$ 343,362 
$ 300,894 
========= 
========= 
========= 
=========   **Basic Earnings Per Common Share**
$    0.91 
$    0.78 
$    2.77 
$    2.46 
========= 
========= 
========= 
========= Number of Shares Used in Computing Basic    Earnings Per Common    Share (Thousands) 
  123,673 
  123,109 
  123,756 
  122,406 
========= 
========= 
========= 
=========   **Diluted Earnings Per Common Share**
$    0.90 
$    0.77 
$    2.75 
$    2.43 
========= 
========= 
========= 
========= Number of Shares Used in Computing Diluted    Earnings Per Common    Share (Thousands) 
  124,683 
  124,345 
  124,852 
  123,640 
========= 
========= 
========= 
=========   **Dividends Per Common Share**
$  0.5625 
$  0.4000 
$  1.6875 
$  0.7000 
========= 
========= 
========= 
========= **  **
The accompanying notes are an integral part of these statements.

5
**CONSOLIDATED STATEMENTSOF CASH FLOWS (Unaudited)Kinder Morgan, Inc. and SubsidiariesIncrease (Decrease) in Cash and Cash Equivalents****Nine Months Ended    September 30,**2004**2003********************************** |
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