Form 10-Q
==================================================================

        UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                      Washington, DC 20549

                            FORM 10-Q

   [X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
        SECURITIES EXCHANGE ACT OF 1934

          For the quarterly period ended June 30, 2000
                                         -------------

                               or

   [ ]  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 1-6446
                                         ------

                       KINDER MORGAN, INC.
      -----------------------------------------------------
     (Exact name of registrant as specified in its charter)

                   Kansas                        48-0290000
      ---------------------------------     --------------------
       (State or other jurisdiction of        (I.R.S. Employer
       incorporation or organization)        Identification No.)

   500 Dallas, Suite 1000, Houston, Texas           77002
   --------------------------------------      ---------------
       (Address of principal executive           (Zip Code)
                  offices)

Registrant's telephone number, including area code (713) 369-9000
                                                   --------------

         1301 McKinney, Suite 3400, Houston, Texas
----------------------------------------------------------
  (Former name, former address and former fiscal year, if
                changed since last report)


Indicate  by check mark whether the registrant (1) has filed  all
reports  required  to be filed by Section  13  or  15(d)  of  the
Securities  Exchange Act of 1934 during the preceding  12  months
(or  for such shorter period that the registrant was required  to
file  such  reports),  and (2) has been subject  to  such  filing
requirements for the past 90 days.

                         Yes X    No
                            ---     ---

The  number  of  shares outstanding for each of the  registrant's
classes  of common stock, as of the latest practicable date  was:
Common Stock, $5 par value; outstanding 114,300,435 shares as  of
July 31, 2000.

<PAGE> 2
              KINDER MORGAN, INC. AND SUBSIDIARIES
                            FORM 10-Q
                   QUARTER ENDED JUNE 30, 2000


                            Contents


 PART I.   FINANCIAL INFORMATION
                                                                    Page
 Item 1.   Financial Statements (Unaudited)                        Number
                                                                   -------
              Consolidated Balance Sheets........................    3 - 4
              Consolidated Statements of Income..................        5
              Consolidated Statements of Cash Flows..............        6
              Notes to Consolidated Financial Statements.........   7 - 22

 Item 2.   Management's Discussion and Analysis of Financial
              Condition and Results of Operations................  22 - 34

 Item 3.   Quantitative and Qualitative Disclosures About Market
              Risk...............................................       34

 PART II.  OTHER INFORMATION

 Item 1.   Legal Proceedings.....................................       35
 Item 6.   Exhibits and Reports on Form 8-K......................       35

 SIGNATURE.......................................................       36


<PAGE> 3

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

CONSOLIDATED BALANCE SHEETS (Unaudited)
Kinder Morgan, Inc. and Subsidiaries
(Dollars in Thousands)

                                                 June 30,      December 31,
                                                   2000            1999
                                               -----------     ------------
ASSETS:
Current Assets:
Cash and Cash Equivalents                      $    27,448     $    26,378
Restricted Deposits                                     52              51
Accounts Receivable                                373,282         306,451
Receivable from Kinder Morgan Energy Partners            -         330,000
Inventories                                         65,340          50,328
Gas Imbalances                                     148,954         172,501
Other                                               13,434          19,154
Net Current Assets of Discontinued Operations            -          58,991
                                               -----------     -----------
                                                   628,510         963,854
                                               -----------     -----------

Investments:
Kinder Morgan Energy Partners                    1,714,010       1,791,768
Other                                              143,295         126,103
                                               -----------     -----------
                                                 1,857,305       1,917,871
                                               -----------     -----------

Property, Plant and Equipment                    6,163,600       6,167,251
Less Accumulated Depreciation and
  Amortization                                     390,556         377,687
                                               -----------     -----------
                                                 5,773,044       5,789,564
                                               -----------     -----------

Deferred Charges and Other Assets                  238,438         209,758

Net Non-current Assets of Discontinued
  Operations                                       112,079         659,236
                                               -----------     -----------

Total Assets                                   $ 8,609,376     $ 9,540,283
                                               ===========     ===========


The accompanying notes are an integral part of these statements.

<PAGE> 4

CONSOLIDATED BALANCE SHEETS (Unaudited)
Kinder Morgan, Inc. and Subsidiaries
(Dollars in Thousands)

<TABLE>
<CAPTION>
                                                        June 30,      December 31,
                                                          2000            1999
                                                      -----------     ------------
<S>                                                   <C>             <C>
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current Liabilities:
Current Maturities of Long-term Debt                  $     7,167     $     7,167
Notes Payable                                             292,500         574,400
Accounts Payable                                          252,736         224,625
Accrued Taxes                                              12,601          36,075
Gas Imbalances                                            151,603         196,469
Payable for Purchase of Thermo Companies                   15,000          44,320
Net Current Liabilities of Discontinued
  Operations                                                7,221               -
Reserve for Loss on Disposal of Discontinued
  Operations                                               24,916         535,630
Other                                                     170,666         206,620
                                                      -----------     -----------
                                                          934,410       1,825,306
                                                      -----------     -----------
Other Liabilities and Deferred Credits:
Deferred Income Taxes                                   2,147,936       2,228,553
Other                                                     233,529         242,926
                                                      -----------     -----------
                                                        2,381,465       2,471,479
                                                      -----------     -----------

Long-term Debt                                          3,292,852       3,293,326
                                                      -----------     -----------
Kinder Morgan-Obligated Mandatorily Redeemable
 Preferred Capital Trust Securities of Subsidiary
 Trusts Holding Solely Debentures of Kinder Morgan        275,000         275,000
                                                      -----------     -----------

Minority Interests in Equity of Subsidiaries                7,362           9,331
                                                      -----------     -----------

Stockholders' Equity:
Common Stock-
 Authorized - 150,000,000 Shares, Par Value $5 Per
  Share Outstanding - 114,247,647 and 112,665,977
  Shares, Respectively, After Deducting 169,903
  and 172,402 Shares Held in Treasury                     572,088         564,192
Additional Paid-in Capital                              1,186,341       1,203,008
Retained Deficit                                          (36,057)        (95,615)
Other                                                      (4,085)         (5,744)
                                                      -----------     -----------
Total Stockholders' Equity                              1,718,287       1,665,841
                                                      -----------     -----------

Total Liabilities and Stockholders' Equity            $ 8,609,376     $ 9,540,283
                                                      ===========     ===========

The accompanying notes are an integral part of these statements.

</TABLE>

<PAGE> 5

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Kinder Morgan, Inc. and Subsidiaries
(In Thousands except Per Share Amounts)

<TABLE>
<CAPTION>
                                                Three Months Ended           Six Months Ended
                                                     June 30,                    June 30,
                                                -------------------         ------------------
                                                 2000         1999          2000         1999
Operating Revenues:                             ------       ------        ------       ------
<S>                                          <C>          <C>            <C>          <C>
  Natural Gas Sales                          $  384,347   $  227,529     $  671,788   $  437,663
  Natural Gas Transportation and Storage        139,964      179,628        305,240      379,404
  Other                                          25,533       24,570         53,328       41,927
                                             ----------   ----------     ----------   ----------
Total Operating Revenues                        549,844      431,727      1,030,356      858,994
                                             ----------   ----------     ----------   ----------

Operating Costs and Expenses:
  Gas Purchases and Other Costs of Sales        380,768      248,321        657,345      454,226
  Operations and Maintenance                     37,858       41,899         79,536       87,185
  General and Administrative                     13,855       24,886         28,148       45,235
  Depreciation and Amortization                  27,011       43,850         53,772       87,990
  Taxes, Other Than Income Taxes                  6,878        8,304         13,685       16,815
  Merger-related Costs                                -       (2,916)             -            -
                                             ----------   ----------     ----------   ----------
Total Operating Costs and Expenses              466,370      364,344        832,486      691,451
                                             ----------   ----------     ----------   ----------

Operating Income                                 83,474       67,383        197,870      167,543
                                             ----------   ----------     ----------   ----------

Other Income and (Deductions):
  Kinder Morgan Energy Partners:
    Equity in Earnings                           35,142            -         64,725            -
    Amortization of Excess Investment            (6,862)           -        (14,439)           -
  Equity in Earnings (Losses) of Other
    Equity Investments                           (2,717)       3,956         (5,616)      10,529
  Interest Expense, Net                         (62,470)     (62,896)      (122,869)    (125,813)
  Minority Interests                             (6,072)      (6,585)       (12,037)     (12,564)
  Other, Net                                        892       18,436         10,564       19,793
                                             ----------   ----------     ----------   ----------
Total Other Income and (Deductions)             (42,087)     (47,089)       (79,672)    (108,055)
                                             ----------   ----------     ----------   ----------

Income from Continuing Operations
  Before Income Taxes                            41,387       20,294        118,198       59,488
Income Taxes                                     16,560        7,914         47,287       23,200
                                             ----------   ----------     ----------   ----------
Income from Continuing Operations                24,827       12,380         70,911       36,288

Loss from Discontinued Operations, Net of
  Tax                                                 -      (14,788)             -      (31,574)
                                             ----------   ----------     ----------   ----------

Net Income (Loss)                                24,827       (2,408)        70,911        4,714
Less - Preferred Dividends                            -           41              -          129
Less - Premium Paid on Preferred Stock
  Redemption                                          -          350              -          350
                                             ----------   ----------     ----------   ----------
Earnings (Loss) Available For Common Stock   $   24,827   $   (2,799)    $   70,911   $    4,235
                                             ==========   ==========     ==========   ==========

Number of Shares Used in Computing Basic
  Earnings Per Common Share (Thousands)         114,196       70,689        113,627       70,087
                                             ==========   ==========     ==========   ==========
Basic Earnings (Loss) Per Common Share:
    Continuing Operations                    $     0.22   $     0.17     $     0.62   $     0.51
    Discontinued Operations                           -        (0.21)             -        (0.45)
                                             ----------   ----------     ----------   ----------
Total Basic Earnings (Loss) Per Common Share $     0.22   $    (0.04)    $     0.62   $     0.06
                                             ==========   ==========     ==========   ==========
Number of Shares Used in Computing Diluted
  Earnings Per Common Share (Thousands)         114,981       70,761        114,228       70,169
                                             ==========   ==========     ==========   ==========
Diluted Earnings (Loss) Per Common Share:
  Continuing Operations                      $     0.22   $     0.17     $     0.62   $     0.51
  Discontinued Operations                             -        (0.21)             -        (0.45)
                                             ----------   ----------     ----------   ----------
Total Diluted Earnings (Loss) Per Common
  Share                                      $     0.22   $    (0.04)    $     0.62   $     0.06
                                             ==========   ==========     ==========   ==========
Dividends Per Common Share                   $     0.05   $     0.20     $     0.10   $     0.40
                                             ==========   ==========     ==========   ==========

The accompanying notes are an integral part of these statements.
</TABLE>

<PAGE> 6

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Kinder Morgan, Inc. and Subsidiaries
Increase (Decrease) in Cash and Cash Equivalents
(In Thousands)
<TABLE>
<CAPTION>
                                                               Six Months Ended
                                                                   June 30,
                                                            ----------------------
                                                              2000           1999
                                                             ------         ------
<S>                                                       <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Income from Continuing Operations                         $   70,911     $   36,288
Adjustments to Reconcile Income from Continuing
 Operations to Net Cash Flows from Operating Activities:
     Depreciation and Amortization                            53,772         87,990
     Deferred Income Taxes                                    42,179          1,007
     Equity in Earnings of Kinder Morgan Energy Partners     (50,286)             -
     Distributions from Kinder Morgan Energy Partners         47,309              -
     Deferred Purchased Gas Costs                              2,988          7,277
     Net Gains on Sales of Facilities                         (2,125)       (17,797)
     Changes in Other Working Capital Items (Note 8)         (70,987)      (110,989)
     Changes in Deferred Revenues                             (2,656)        (6,771)
     Other Non-cash Charges and Credits to Income            (17,597)       (15,700)
     Other, Net                                               (5,978)        (7,999)
                                                          ----------     ----------
     Net Cash Flows Provided by (Used in) Continuing
       Operations                                             67,530        (26,694)
     Net Cash Flows Provided by (Used in) Discontinued
       Operations                                           (115,490)        93,569
                                                          ----------     ----------
NET CASH FLOWS PROVIDED BY (USED IN)
  OPERATING ACTIVITIES                                       (47,960)        66,875
                                                          ----------     ----------

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures                                         (43,283)       (35,842)
Proceeds from Sales to Kinder Morgan Energy Partners         330,000              -
Acquisitions                                                 (19,412)       (35,000)
Investments                                                  (28,546)        (1,172)
Sale of Tom Brown, Inc. Common Stock                          14,864              -
Sale of U.S. Government Securities                                 -      1,092,415
Proceeds from Sales of Other Assets                            1,550         57,327
                                                          ----------     ----------
Net Cash Flows Provided by Continuing Investing
  Activities                                                 255,173      1,077,728
Net Cash Flows Provided by (Used in) Discontinued
  Investing Activities                                       129,366        (29,113)
                                                          ----------     ----------
NET CASH FLOWS PROVIDED BY INVESTING ACTIVITIES              384,539      1,048,615
                                                          ----------     ----------

CASH FLOWS FROM FINANCING ACTIVITIES:
Short-term Debt, Net                                        (277,733)    (1,068,396)
Long-term Debt Retired                                          (791)        (3,950)
PEPS Contract Fee                                               (654)        (1,097)
Common Stock Issued                                           12,957          6,329
Other Financing, Net                                         (57,129)             -
Preferred Stock Redeemed                                           -         (7,350)
Treasury Stock Issued                                             18             39
Treasury Stock Acquired                                          (75)           (56)
Cash Dividends, Common and Preferred                         (11,354)       (28,287)
Minority Interests, Net                                         (748)         1,410
                                                          ----------     ----------
NET CASH FLOWS USED IN FINANCING ACTIVITIES                 (335,509)    (1,101,358)
                                                          ----------     ----------

Net Increase in Cash and Cash Equivalents                      1,070         14,132
Cash and Cash Equivalents at Beginning of Period              26,378         16,247
                                                          ----------     ----------
Cash and Cash Equivalents at End of Period                $   27,448     $   30,379
                                                          ==========     ==========
For supplemental cash flow information, see Note 8.
The accompanying notes are an integral part of these statements.

</TABLE>

<PAGE> 7

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

1.   General
     -------

Effective  with  K N Energy, Inc.'s October 1999  acquisition  of
Kinder  Morgan,  Inc.,  a  Delaware corporation  ("Kinder  Morgan
Delaware"),  K N Energy, Inc. changed its name to Kinder  Morgan,
Inc.   As  used herein, "Kinder Morgan" refers to Kinder  Morgan,
Inc. (a Kansas corporation and formerly K N Energy, Inc.) and its
consolidated  subsidiaries unless the context otherwise  requires
(see  Note  2).   In the opinion of Management,  all  adjustments
necessary  for  a  fair  presentation  of  the  results  for  the
unaudited interim periods have been made.  Amounts shown  in  the
Consolidated  Balance Sheet for December 31, 1999,  were  derived
from  the audited balance sheet included in Kinder Morgan's  1999
Annual  Report  on Form 10-K.  Certain amounts for prior  periods
have been reclassified to conform to the current presentation.

2.   Business Combinations
     ---------------------

On October 7, 1999, K N Energy, Inc. completed the acquisition of
Kinder  Morgan  Delaware,  the sole stockholder  of  the  general
partner  of  Kinder  Morgan Energy Partners, L.P.  Kinder  Morgan
Energy  Partners,  the nation's largest pipeline  master  limited
partnership,  owns  and  operates  one  of  the  largest  product
pipeline  systems  in  the United States,  serving  customers  in
sixteen  states with more than 5,000 miles of pipeline  and  over
twenty associated terminals.  Kinder Morgan Energy Partners  also
operates 25 bulk terminal facilities which handle over 45 million
tons  of  coal,  petroleum coke and other  dry  and  liquid  bulk
material  annually.  In addition, Kinder Morgan  Energy  Partners
currently  owns 51 percent of Plantation Pipe Line  Company,  100
percent  of Kinder Morgan CO2 Company, Ltd. (formerly  Shell  CO2
Company,  Ltd.)  and  certain natural gas  operations  previously
owned  by  Kinder Morgan, see Note 5.  For additional information
regarding  the  business  and  assets  of  Kinder  Morgan  Energy
Partners,  the  reader  is  directed  to  Kinder  Morgan   Energy
Partners' 1999 Annual Report on Form 10-K.

To  effect  this  business combination, K N Energy,  Inc.  issued
approximately 41.5 million shares of its common stock in exchange
for  all  of  the  outstanding shares of Kinder Morgan  Delaware.
This  acquisition was accounted for as a purchase for  accounting
purposes  and,  accordingly, the assets acquired and  liabilities
assumed  were recorded at their respective estimated fair  market
values  as  of  the  acquisition date.   The  allocation  of  the
purchase  price resulted in an excess of the purchase price  over
Kinder  Morgan Delaware's share of the underlying equity  in  the
net  assets  of  Kinder  Morgan  Energy  Partners  totaling  $1.3
billion, with deferred taxes provided on this  temporary book/tax
basis difference.  This excess has been fully allocated to Kinder
Morgan  Delaware's  indirect investment in Kinder  Morgan  Energy
Partners (through its 100% ownership of Kinder Morgan G.P., Inc.,
owner of the general partner interest) and reflects the estimated
fair market value of this investment which is accounted for under
the  equity  method  of  accounting (see Note  3).   This  excess
investment  is  being amortized over 44 years, approximately  the
estimated remaining useful life of Kinder Morgan Energy Partners'
assets,  and is shown in the accompanying Consolidated Statements
of  Income as "Amortization of Excess Investment" under the  sub-
heading "Kinder Morgan Energy Partners" within "Other Income  and
(Deductions)."  The assets, liabilities and results of operations
of  Kinder  Morgan  Delaware are included with  those  of  Kinder
Morgan beginning with the October 1999 acquisition.

On  February 22, 1999, Sempra Energy and Kinder Morgan  announced
that   their  respective  boards  of  directors  had  unanimously
approved  a  definitive agreement under which Sempra  and  Kinder
Morgan  would combine in a stock-and-cash transaction  valued  in
the  aggregate  at  $6.0 billion.  On June 21, 1999,  Sempra  and
Kinder  Morgan  announced  that  they  had  mutually  agreed   to
terminate the merger agreement.  Sempra reimbursed Kinder  Morgan
$5.95  million  for  expenses incurred  in  connection  with  the
proposed merger.  During the second

<PAGE> 8

quarter of 1999, Kinder Morgan  recorded the reversal of the $2.9
million   of   previously-reported  costs  associated  with   the
terminated  merger,  reported in  the  accompanying  Consolidated
Statement of Income  for  1999  as "Merger-related Costs".

During  the  third quarter of 1998, Kinder Morgan  completed  its
acquisition  (accounted for as a purchase) of interests  in  four
independent power plants in Colorado from the Denver-based Thermo
Companies ("Thermo"), representing approximately 380 megawatts of
electric  generation capacity.  The final scheduled  payment  for
this  acquisition  ($30 million) was made April  20,  2000,  with
961,153 shares of Kinder Morgan common stock.  Kinder Morgan  has
retained  $15 million of the purchase price which is  payable  to
the  sellers  at  the  earlier  of the  satisfaction  of  certain
contractual obligations or April 1, 2001.

3.   Accounting for Certain Equity Transactions by Affiliates
     --------------------------------------------------------

As discussed in Note 2, Kinder Morgan accounts for its investment
in Kinder Morgan Energy Partners (among other entities) under the
equity  method  of  accounting.   Under  this  method,  in   each
accounting  period,  Kinder Morgan records  its  share  of  these
investees'  earnings,  and  amortizes  any  "excess"  investment.
Under  authoritative  accounting  guidelines,  Kinder  Morgan  is
required  to adjust the amount of its excess investment  when  an
equity  method  investee  or  a  consolidated  subsidiary  issues
additional  equity (or reacquires equity shares)  in  any  manner
which  alters Kinder Morgan's ownership percentage.   Differences
between  the per unit sales proceeds from these equity  issuances
(or reacquisitions) and Kinder Morgan's underlying book basis, as
well  as the pro rata portion of the excess investment (including
associated  deferred  taxes)  which  must  be  written  off,  are
recorded directly to paid-in-capital rather than being recognized
as gains or losses.


4.   Change in Accounting Estimate
     -----------------------------

Pursuant to a study of the useful lives of the underlying  assets
by  an  independent  third  party, in July  1999,  Kinder  Morgan
changed  the  depreciation rates associated with  the  gas  plant
acquisition   adjustment  recorded  in   conjunction   with   the
acquisition  of MidCon Corp. (see Note 2 of Notes to Consolidated
Financial  Statements included  in Kinder  Morgan's  1999  Annual
Report  on Form 10-K).  This change had the effect of  decreasing
"Depreciation and Amortization" by approximately $9.7 million and
$19.3 million for the quarter and six months ended June 30, 2000,
respectively, and increasing  "Income from Continuing Operations"
and "Net Income" by approximately $5.8 million ($0.05 per diluted
share) and $11.6  million  ($0.10  per  diluted  share)  for  the
quarter  and  six  months  ended June 30, 2000,  respectively, in
comparison  to  the amounts which would have been recorded  util-
izing the previous depreciation rates.

5.   Investments and Sales
     ---------------------

See  Note  6  for  information  regarding  sales  of  assets  and
businesses included in discontinued operations.

In  August  2000,  Kinder Morgan Power Company,  a  wholly  owned
subsidiary  of  Kinder Morgan, announced plans to  build  a  550-
megawatt   electric  power  plant  in  Jackson,  Michigan.    All
necessary  regulatory permits and approvals have  been  obtained,
and  construction on the $250 million natural gas-fired plant  is
scheduled  to  begin in August 2000.  The plant  is  expected  to
begin producing power in June 2002.

In May 2000, Kinder Morgan  Power  Company, and  Southern Energy,
Inc.,  a subsidiary of Southern Company, announced plans to build
a  550-megawatt  electric power plant southeast of  Little  Rock,
Arkansas.  Construction  the  $250 million plant  began  in  July
2000  in Pulaski  County, Arkansas, and the plant is scheduled to
begin

<PAGE> 9

producing power by the second quarter of 2002. Gas transportation
service  for  the natural gas-fired plant  will  be  provided  by
Natural  Gas Pipeline Company of America,  another  wholly  owned
subsidiary of Kinder Morgan.  Southern Company will add the elec-
tric  output  of  the plant to its national  portfolio  of  power
generation.  The project is expected to be funded  through a com-
bination  of  non-recourse  debt  securities  and  equity contri-
butions.

In  the  first  quarter of 2000, Kinder Morgan sold  the  918,367
shares of common stock of Tom Brown, Inc. it had held since early
1996  (see  the discussion of the sale of preferred stock of  Tom
Brown following).  Kinder Morgan recorded a pre-tax gain  of $1.3
million  ($0.8  million  after tax  or  approximately  $0.01  per
diluted   share),  included  in  the  accompanying   Consolidated
Statement  of Income for the 6 months ended June 30, 2000,  under
the caption "Other, Net".

On  December  30, 1999, Kinder Morgan entered into a contribution
agreement  among  Kinder  Morgan, several  of  its  wholly  owned
subsidiaries  and Kinder Morgan Energy Partners.   As  a  result,
effective as of December 31, 1999, Kinder Morgan contributed  all
of  its  interests  in  the  following to  Kinder  Morgan  Energy
Partners:  (i)  Kinder  Morgan Interstate Gas  Transmission  LLC,
formerly  K  N  Interstate Gas Transmission Co., a  wholly  owned
subsidiary  which is referred to as "KMIGT" in these Notes,  (ii)
Kinder  Morgan Trailblazer LLC (formerly NGPL-Trailblazer, Inc.),
a  wholly  owned subsidiary and owner of a one-third interest  in
Trailblazer  Pipeline  Company  and  (iii)  Red  Cedar  Gathering
Company  (a  49%  interest).  In exchange, Kinder  Morgan  Energy
Partners  (i)  issued  to  Kinder Morgan 9,810,000  common  units
representing  incremental limited partnership interests in Kinder
Morgan Energy Partners and (ii) during the first quarter of 2000,
made  a payment to Kinder Morgan of $330 million in cash.  Kinder
Morgan  recorded  a  pre-tax  gain  of  $158.8   million (approx-
imately  $100.9 million after tax  or  $1.25  per  diluted share)
in conjunction with the contribution of interests.

On  September  30, 1999, Kinder Morgan sold (to  an  unaffiliated
party)  its  interests in Stingray Pipeline Company,  L.L.C.,  an
offshore  pipeline  that gathers natural gas,  and  West  Cameron
Dehydration  Company, L.L.C., which dehydrates  natural  gas  for
shippers  on  the  Stingray  Pipeline.   Kinder  Morgan  received
approximately  $24 million in cash from the sale and  recorded  a
pre-tax  gain of $11.4 million (approximately $6.9 million  after
tax  or  $0.10 per diluted share).  With this sale, Kinder Morgan
completed divestiture of its major offshore interests.

On  September 3,  1999, Kinder Morgan sold  1,000,000  shares  of
preferred stock of Tom Brown, Inc. for approximately $29  million
in cash, realizing a pre-tax gain of $2.2 million  (approximately
$1.3  million  after  tax  or  $0.02  per  diluted  share).   The
preferred stock was originally issued to Kinder Morgan in 1996 as
part  of Tom Brown, Inc.'s acquisition of K N Production Company.
The  preferred  stock was convertible into  1,666,000  shares  of
common stock of Tom Brown, Inc., and paid dividends quarterly  at
an annual rate of $1.75 per share.

In  September  1999,  Thunder Creek Gas Services,  LLC,  a  joint
venture owned 25 percent by Kinder Morgan and 75 percent by Devon
Energy Corporation, placed into service a 126-mile-long trunkline
natural gas gathering system extending from Glenrock, Wyoming  to
approximately 12 miles north of Gillette, Wyoming.  The trunkline
has  an initial capacity of 450 million cubic feet of natural gas
per  day.   The  gathering system is located in the Powder  River
Basin  of  northeast  Wyoming.  The expected total  cost  of  the
system is approximately $111 million.

On  June  30, 1999, Kinder Morgan sold its interests in the  HIOS
and  UTOS  offshore  pipeline systems  and  related  laterals  to
Leviathan  Gas  Pipeline Partners, L. P.  Kinder Morgan  received
approximately  $51 million in cash in conjunction with  the  sale
and recorded a pre-tax gain of $17.5 million (approximately $10.7
million

<PAGE> 10

after tax or $0.15 per diluted share), included in the accompany-
ing  Consolidated Statements of Income for the  three months  and
six  months ended June 30, 1999 under  the  caption "Other, Net".

In  May  1999, Kinder Morgan announced plans to build the Horizon
Pipeline.  Kinder Morgan planned to own the pipeline jointly with
one  or  more other partners, through its wholly owned subsidiary
Natural Gas Pipeline Company of America, referred to as "Natural"
in  these  Notes.  Also in May 1999, Nicor Gas signed a precedent
agreement  for 300 MMcf per day with Horizon.  In February  2000,
Nicor,  Inc. announced that it had signed an agreement to  become
an  equal  partner in the planned Horizon Pipeline with  Natural.
The  Horizon Pipeline is a $75 million natural gas pipeline  that
will  originate  in  Joliet, Illinois and extend  71  miles  into
northern  Illinois, connecting the emerging supply hub at  Joliet
with  Nicor  Gas'  distribution system and  an  existing  Natural
pipeline.  Construction is expected to be completed by the spring
of  2002.  The initial capacity of the pipeline is proposed to be
380  MMcf of natural gas per day.  The project is expected to  be
funded through a combination of non-recourse debt securities  and
equity contributions.

On  March  31,  1999, the TransColorado Gas Transmission  Company
("TransColorado"), an enterprise jointly owned by  Kinder  Morgan
and  Questar Corp., placed in service a 280-mile-long natural gas
pipeline.   This  pipeline includes two compressor  stations  and
extends from near Rangely, Colorado, to its southern terminus  at
the Blanco Hub near Aztec, New Mexico.  The pipeline has a design
transmission capacity of approximately 300 million cubic feet  of
natural  gas per day.  On October 14, 1998, TransColorado entered
into  a  $200 million revolving credit agreement with a group  of
commercial  banks.  Kinder Morgan provides a corporate  guarantee
for one-half of all amounts borrowed under the agreement.

In  April 2000, Kinder Morgan Energy Partners issued 4.5  million
limited  partnership units in a public offering  at  a  price  of
$39.75 per unit, receiving total net proceeds (after underwriting
discount)  of $171.3 million.  None of these units were  acquired
by  Kinder  Morgan.   This  transaction reduced  Kinder  Morgan's
percentage  ownership  of  Kinder  Morgan  Energy  Partners  from
approximately 19.9% to approximately 18.6% and had the associated
effects  of  increasing  Kinder Morgan's investment  in  the  net
assets  of  Kinder  Morgan Energy Partners by  $6.1  million  and
reducing  (i) Kinder Morgan's excess investment in Kinder  Morgan
Energy  Partners  by $81.1  million, (ii) associated  accumulated
deferred income taxes by $30.0  million, (iii) paid in capital by
$45.0  million  and (iv) the monthly amortization  of the  excess
investment by approximately $176 thousand (see Note 3).

6.   Discontinued Operations
     -----------------------

During  the  third  quarter of 1999, Kinder  Morgan  adopted  and
implemented  a plan to discontinue the direct marketing  of  non-
energy  products  and  services (principally  under  the  "Simple
Choice"  brand),  which activities had been  carried  on  largely
through  Kinder  Morgan's en*able joint venture with  PacifiCorp.
During  the  fourth  quarter of 1999, Kinder Morgan  adopted  and
implemented plans to discontinue the following lines of business:
gathering and processing natural gas and providing field services
to  natural gas producers, commodity marketing of natural gas and
natural  gas  liquids, international operations  and  West  Texas
intrastate pipelines.

As further described in Note 6 of Notes to Consolidated Financial
Statements included in Kinder Morgan's 1999 Annual Report on Form
10-K,  as of December 31, 1999, in accordance with the provisions
of  Accounting  Principles Board Opinion No.  30,  Reporting  the
Results  of Operations - Reporting the Effects of Disposal  of  a
Segment   of   a   Business,  and  Extraordinary,   Unusual   and
Infrequently Occurring Events and Transactions, Kinder Morgan (i)
reclassified  its  consolidated financial statements  to  reflect
these businesses as discontinued operations and (ii) recorded  an
estimate  of  the loss expected to result from the discontinuance
and  disposal  of

<PAGE> 11

these businesses, including both the  estimated losses to be  in-
curred  upon  sale and the  estimated  operating losses to be in-
curred   prior  to  the  projected  disposal  dates.  This  total
estimated  loss  is  subject to uncertainty with respect  to  the
ultimate  proceeds to be received from the sale and  pre-disposal
operation of these assets (among other factors) and, accordingly,
the actual loss may differ materially from the estimate  recorded
as of December 31, 1999.  Any such difference will be  recognized
in  the  period in which it is reasonably estimable, and  will be
classified in the same manner as the original estimated loss.

Summarized  financial  data  of discontinued  operations  are  as
follows:
<TABLE>
<CAPTION>
                                                       Three Months Ended June 30,
                                                       ---------------------------
                                                           2000           1999
                                                          ------         ------
                                                              (In Thousands)
<S>                                                     <C>            <C>
Income Statement Data
---------------------
Operating Revenues:
   Commodity Marketing                                  $        34    $   869,231
   Gathering and Processing                             $   149,892    $   145,986
   West Texas Intrastate Pipelines                      $         -    $    12,444
   International Operations                             $     1,841    $       185

Income (Loss) From Discontinued Operations, Net of
  Tax Expense (Benefit):
   Commodity Marketing, net of $(4,124) of tax                    -    $    (6,451)
   Gathering and Processing, net of $(3,110) of tax               -         (4,864)
   West Texas Intrastate Pipelines, net of $87 of tax             -            136
   International Operations, net of $(128) of tax                 -           (199)
   e*nable/Orcom, net of $(2,180) of tax                          -         (3,410)
                                                                       -----------
                                                                       $   (14,788)
                                                                       ===========
</TABLE>
<TABLE>
<CAPTION>
                                                        Six Months Ended June 30,
                                                        -------------------------
                                                           2000           1999
                                                          ------         ------
                                                              (In Thousands)
<S>                                                     <C>            <C>
Income Statement Data
---------------------
Operating Revenues:
   Commodity Marketing                                  $   580,182    $ 1,498,232
   Gathering and Processing                             $   313,725    $   263,413
   West Texas Intrastate Pipelines                      $     8,336    $    30,542
   International Operations                             $     2,883    $       671

Loss From Discontinued Operations, Net of Tax Benefit
   Commodity Marketing, net of $(6,125) of tax                    -    $    (9,580)
   Gathering and Processing, net of $(7,800) of tax               -        (12,200)
   West Texas Intrastate Pipelines, net of $(2,802)
     of tax                                                       -         (4,383)
   International Operations, net of $(173) of tax                 -           (270)
   en*able/Orcom, net of $(3,287) of tax                          -         (5,141)
                                                                       -----------
                                                                       $   (31,574)
                                                                       ===========
</TABLE>

<PAGE> 12

<TABLE>
<CAPTION>

                                                               June 30, 2000
                                                ------------------------------------------
                                                Gathering and  International
                                                 Processing     Operations        Total
                                                -------------  -------------    --------
<S>                                               <C>            <C>            <C>
Balance Sheet Data                                            (In Thousands)
------------------
  Net Current Assets (Liabilities) of Discontinued Operations:
  Cash and Cash Equivalents                       $    5,207     $      855     $    6,062
  Restricted Deposits                                  4,376              -          4,376
  Accounts Receivable                                 61,120          1,566         62,686
  Inventories                                          4,408          1,164          5,572
  Gas Imbalances Receivable                           17,270              -         17,270
  Other Current Assets                                 1,433            167          1,600
  Accounts Payable                                   (88,571)        (2,545)       (91,116)
  Accrued Taxes                                       (3,887)            (4)        (3,891)
  Gas Imbalances Payable                              (4,136)             -         (4,136)
  Other Current Liabilities                           (4,108)        (1,536)        (5,644)
                                                  ----------     ----------     ----------
                                                  $   (6,888)    $     (333)    $   (7,221)
                                                  ==========     ==========     ==========
Net Non-current Assets of Discontinued Operations:
  Investments                                     $   34,500     $   10,040   $     44,540
  Property, Plant and Equipment, Net                 126,203          9,745        135,948
  Deferred Charges                                    23,550          7,989         31,539
  Deferred Income Taxes                              (46,941)           781        (46,160)
  Minority Interests in Equity of Subsidiaries       (53,021)          (767)       (53,788)
                                                  ----------     ----------     ----------
                                                  $   84,291     $   27,788     $  112,079
                                                  ==========     ==========     ==========
</TABLE>


Kinder  Morgan has essentially completed the disposition  of  its
investment  in en*able/Orcom.  Kinder Morgan sold its  businesses
involved  in  providing field services to natural  gas  producers
(K  N  Field Services, Inc. and Compressor Pump and Engine, Inc.)
and  MidCon  Gas  Products of New Mexico Corp.,  a  wholly  owned
subsidiary providing natural gas gathering, prior to the  end  of
1999.    Kinder  Morgan  received  $23.3  million  in   cash   as
consideration for these sales.

Effective  March 1, 2000, Kinder  Morgan  closed  its  previously
announced transaction with ONEOK, Inc.  in which ONEOK  purchased
Kinder Morgan's gathering and processing businesses in  Oklahoma,
Kansas  and  West  Texas.   In  addition, ONEOK  purchased Kinder
Morgan's  marketing  and  trading business, as  well  as  certain
storage  and transmission pipelines in the Mid-continent  region.
As  consideration, ONEOK paid  Kinder  Morgan approximately  $108
million plus approximately $56 million for estimated net  working
capital  at  closing  (subject  to post-closing  adjustment).  In
addition, ONEOK assumed  (i) the operating lease associated  with
the  Bushton, Kansas processing plant and (ii) long-term through-
put capacity commitments on Natural and KMIGT.

During  the  second quarter of 2000, Kinder Morgan completed  the
sale  of  three natural gas gathering systems and a  natural  gas
processing  facility  to  WBI Holdings,  Inc.,  the  natural  gas
pipeline unit of MDU Resources Group, Inc. for approximately  $21
million.  Gathering systems included in the sale were the Bowdoin
System  located  in north-central  Montana, the  Niobrara  System
located in northeastern Colorado and northwestern Kansas, and the
Yenter  System  located  in  northeastern  Colorado  and  western
Nebraska.   The  natural  gas processing facility included in the
sale  was  the  Yenter  Plant,  located  northwest  of  Sterling,
Colorado.

The  remaining  assets  associated with discontinued  operations,
representing  a relatively small percent of the total  operations
discontinued  as of December 31, 1999, are in various  stages  of
the  disposition process.  The process of divestiture is expected
to be completed during 2000.

<PAGE> 13

7.   Accounts Receivable Sales Facility
     ----------------------------------

As  more fully discussed in Kinder Morgan's 1999 Annual Report on
Form  10-K,  in September 1999, certain wholly owned subsidiaries
of  Kinder Morgan entered into a five-year agreement to sell  all
of their accounts receivable in a transaction accounted for as  a
sale  of  receivables in accordance with Statement  of  Financial
Accounting  Standards  No.  125, " Accounting for  Transfer   and
Servicing of Financial Assets and Extinguishment of Liabilities."
Accordingly,  the  accompanying Consolidated  Balance  Sheet  for
December 31, 1999 reflects the portion of receivables transferred
to   the   financial  institution  as  a  reduction  of  Accounts
Receivable.   Losses  from  the sale  of  these  receivables  are
included   in  "Other,  Net"  in  the  accompanying  Consolidated
Statements  of Income.  Cash flows associated with  this  program
are  included with "Accounts Receivable" under "Cash  Flows  from
Operating Activities" in the accompanying Consolidated Statements
of Cash Flows.  Kinder Morgan received compensation for servicing
that  was  approximately  equal  to  the  amount  an  independent
servicer  would  receive.  Accordingly, no  servicing  assets  or
liabilities have been recorded.  The full amount of the allowance
for possible losses has been retained by Kinder Morgan.  The fair
value  of  this  recourse  liability approximated  the  allocated
allowance  for doubtful accounts given the short-term  nature  of
the transferred receivables.  Kinder Morgan received $150 million
in  proceeds from the sale of receivables on September 30,  1999.
In   the  first  quarter  of  2000,  Kinder  Morgan  reduced  its
participation in this receivable sale program by $124.9  million,
principally  as a result of its then-pending disposition  of  its
wholesale gas marketing business, see Note 6.  On April 25, 2000,
Kinder  Morgan  repaid the residual balance  and  terminated  the
agreement.

8.   Supplemental Cash Flow Information
     ----------------------------------

Kinder  Morgan considers all highly liquid investments  purchased
with  an  original maturity of three months or less  to  be  cash
equivalents.  "Other, Net," presented as a component of "Net Cash
Flows  Provided  by  (Used  in)  Operating  Activities"  in   the
accompanying  Consolidated Statements  of  Cash  Flows  includes,
among   other   things,  equity  in  undistributed  earnings   of
unconsolidated  subsidiaries (other  than  Kinder  Morgan  Energy
Partners) and joint ventures.


                                                        Six Months Ended
                                                            June 30,
                                                   -------------------------
                                                      2000            1999
                                                     ------          ------
                                                         (In Thousands)
CHANGES IN OTHER WORKING CAPITAL ITEMS
  (Net of Effects of Acquisitions and Sales)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
Accounts Receivable                               $  (25,506)     $    3,031
Materials and Supplies Inventory                      (1,147)          1,240
Gas in Underground Storage - Current                 (22,044)        (12,300)
Other Current Assets                                 (27,599)           (849)
Accounts Payable                                      12,066         (84,987)
Other Current Liabilities                             (6,757)        (17,124)
                                                  -----------     ----------
                                                  $  (70,987)     $ (110,989)
                                                  ==========      ==========
 CASH FLOW INFORMATION

Cash Paid During the Period for:
   Interest, Net of Amount Capitalized            $  126,058      $  151,641
                                                  ==========      ==========
   Distributions on Preferred Capital Trust
    Securities                                    $   10,956      $   10,956
                                                  ==========      ==========
   Income Taxes                                   $    4,690      $    2,052
                                                  ==========      ==========

<PAGE> 14

9.   Business Segments
     -----------------

In  accordance  with the manner in which Kinder Morgan  currently
manages  its businesses, including the allocation of capital  and
evaluation  of  business unit performance, Kinder Morgan  reports
its operations in the following segments: (1) Natural and certain
associated  entities, referred to as "NGPL"  a  major  interstate
natural gas pipeline system; (2) Kinder Morgan Texas Pipeline and
certain  associated  entities, referred to  as  "KMTP,"  a  major
intrastate  natural  gas  pipeline  system;  (3)  "Retail,"   the
(largely  regulated)  distribution  of  natural  gas  to   retail
customers and (4) "Power and Other," the generation and  sale  of
electric  power,  together  with  various  other  activities  not
constituting business segments.  Prior to its December 31,  1999,
sale to Kinder Morgan Energy Partners (see Note 5), Kinder Morgan
also owned and operated KMIGT.

The  accounting  policies applied in the  generation  of  segment
information are generally the same as those described in  Note  1
of  Notes to Consolidated Financial Statements included in Kinder
Morgan's 1999 Annual Report on Form 10-K, except that items below
the  "Operating Income" line are either not allocated to business
segments or are not considered by Management in its evaluation of
business  unit performance.  In addition, certain items  included
in operating income (such as general and administrative expenses)
are   not  allocated  to  individual  business  segments.    With
adjustment  for  these items, Kinder Morgan  currently  evaluates
business segment performance primarily based on operating  income
in relation to the level of capital employed.  Intersegment sales
are  accounted  for at market prices, while asset  transfers  are
made  at  either market value or, in some instances, book  value.
As  necessary for comparative purposes, prior period results  and
balances  have  been  reclassified  to  conform  to  the  current
presentation.

<PAGE> 15

BUSINESS SEGMENT INFORMATION
<TABLE>
<CAPTION>

                                          Three Months Ended June 30, 2000
                      ------------------------------------------------------------------------
                                                                          Power
                        NGPL         KMIGT      Retail        KMTP      and Other   Consolidated
                       ------       ------      ------       ------     ---------   ------------
                                                   (In Thousands)
<S>                  <C>          <C>         <C>          <C>         <C>           <C>
Revenues from
 External Customers  $120,877     $       -   $  36,163    $ 373,511   $  19,293     $  549,844
Intersegment                                                                         ==========
  Revenues           $    (78)    $       -   $       -    $       -   $      48     $      (30)
Operating Income                                                                     ==========
  Before Corporate
  Costs              $ 79,246     $       -   $   6,331    $   3,097   $   8,655     $   97,329

                                              General and Administrative Expenses       (13,855)
                                                                                     ----------
                                              Operating Income                           83,474
                                              Other Income and (Deductions)             (42,087)
                                                                                     ----------
                                              Income from Continuing Operations,
                                                Before Income Taxes                  $   41,387
                                                                                     ==========
</TABLE>
<TABLE>
<CAPTION>

                                          Three Months Ended June 30, 1999
                      -------------------------------------------------------------------------
                                                                          Power
                        NGPL         KMIGT      Retail        KMTP      and Other   Consolidated
                       ------       ------      ------       ------     ---------   ------------
                                                   (In Thousands)
<S>                  <C>          <C>          <C>         <C>          <C>           <C>
Revenues from
  External Customers $ 152,008    $  23,529    $ 36,218    $ 204,116    $ 15,856      $ 431,727
Intersegment                                                                          =========
  Revenues           $     350    $   1,476    $    (15)   $       -    $     48      $   1,859
Operating Income                                                                      =========
  Before Corporate
  Costs              $  67,259    $  12,390    $    785    $   2,113    $  6,806      $  89,353

                                              General and Administrative Expenses       (24,886)
                                              Merger-related Costs                        2,916
                                                                                      ---------
                                              Operating Income                           67,383
                                              Other Income and (Deductions)             (47,089)
                                                                                      ---------
                                              Income from Continuing
                                                Operations, Before Income Taxes       $  20,294
                                                                                      =========
</TABLE>
<TABLE>
<CAPTION>

                                           Six Months  Ended June 30, 2000
                     --------------------------------------------------------------------------
                                                                          Power
                        NGPL         KMIGT      Retail        KMTP      and Other   Consolidated
                       ------       ------      ------       ------     ---------   ------------
                                                   (In Thousands)
<S>                  <C>           <C>        <C>          <C>          <C>          <C>
Revenues from
  External Customers $ 268,871     $      -   $ 104,586    $ 623,430    $ 33,469     $1,030,356
Intersegment                                                                         ==========
  Revenues           $     (18)    $      -   $       -    $       -    $     48     $       30
Operating Income                                                                     ==========
  Before Corporate
  Costs              $ 171,196     $      -   $  26,118    $  14,427    $ 14,277     $  226,018

                                              General and Administrative Expenses       (28,148)
                                                                                     ----------
                                              Operating Income                          197,870
                                              Other Income and (Deductions)             (79,672)
                                                                                     ----------
                                              Income from Continuing
                                                Operations, Before Income Taxes      $  118,198
                                                                                     ==========
</TABLE>
<TABLE>
<CAPTION>

                                           Six Months Ended June 30, 1999
                      -------------------------------------------------------------------------
                                                                          Power
                        NGPL         KMIGT      Retail        KMTP      and Other   Consolidated
                       ------       ------      ------       ------     ---------   ------------
                                                   (In Thousands)
<S>                  <C>           <C>         <C>         <C>          <C>           <C>
Revenues from
  External Customers $ 304,915     $ 48,643    $106,060    $ 368,443    $ 30,933      $ 858,994
Intersegment                                                                          =========
  Revenues           $     942     $  2,759    $      5    $       -    $     97      $   3,803
Operating Income                                                                      =========
  Before Corporate
  Costs              $ 145,723     $ 26,742    $ 16,113    $  11,100    $ 13,100      $ 212,778

                                              General and Administrative Expenses       (45,235)
                                                                                      ---------
                                              Operating Income                          167,543
                                              Other Income and (Deductions)            (108,055)
                                                                                      ---------
                                              Income from Continuing Operations,
                                                Before Income Taxes                   $  59,488
                                                                                      =========
</TABLE>

<PAGE> 16

<TABLE>
<CAPTION>
                                               Assets at June 30, 2000
                      -------------------------------------------------------------------------
                                                                           Power
                        NGPL        KMIGT       Retail       KMTP        and Other   Consolidated
                       ------      ------       ------      ------       ---------   ------------
                                                    (In Thousands)
<S>                  <C>         <C>          <C>         <C>          <C>           <C>
Continuing
  Operations         $5,607,933  $        -   $  373,162  $  297,613   $2,218,589(1) $ 8,497,297
Discontinued
  Operations                                                                             112,079
                                                                                     -----------
Consolidated                                                                         $ 8,609,376
                                                                                     ===========
(1)Principally the investment in Kinder Morgan Energy Partners
</TABLE>

GEOGRAPHIC INFORMATION

All  but  an  insignificant amount of Kinder Morgan's assets  and
operations are located in the continental United States.

10.  Financing
     ---------

Kinder  Morgan  has  available  a  $550  million  364-day  credit
facility  dated November 18, 1999 and a $400 million amended  and
restated  five-year revolving credit agreement dated January  30,
1998.   These  bank facilities can be used for general  corporate
purposes,  including backup for Kinder Morgan's commercial  paper
program,  and  include  covenants  which  are  common   in   such
arrangements  (see  Note  12 of Notes to  Consolidated  Financial
Statements included in Kinder Morgan's 1999 Annual Report on Form
10-K  for  additional  information concerning  these  covenants).
Under  these bank facilities, Kinder Morgan is required to pay  a
facility  fee  based  on the total commitment,  whether  used  or
unused,  at  a rate which varies based on Kinder Morgan's  senior
debt  rating.  There were no borrowings under the bank facilities
at June 30, 2000 or at August 1, 2000.

Commercial  paper  issued by Kinder Morgan and supported  by  the
bank  facilities  are unsecured short-term notes with  maturities
not  to exceed 270 days from the date of issue.  Commercial paper
outstanding  at  June  30, 2000 and August 1,  2000,  was  $292.5
million  and  $246.6 million, respectively.  The weighted-average
interest  rates on short-term borrowings outstanding at June  30,
2000 was 7.18 percent.  Average short-term borrowings outstanding
during  the  second quarter of 2000 were $275.1 million  and  the
weighted-average interest rate was 6.53 percent.  Average  short-
term  borrowings outstanding during the first six months of  2000
were  $395.5 million and the weighted-average interest  rate  was
6.32 percent.

On July 20, 2000, the Kinder Morgan board of directors declared a
common  stock dividend of $0.05 per share payable on  August  14,
2000 to shareholders of record as of July 31, 2000.

11.  Regulatory Matters
     ------------------

On May 10, 2000, Chesapeake Panhandle Limited Partnership filed a
complaint  with  the  FERC against Natural, MidCon  Gas  Products
Corp.,  MidCon  Gas Services Corp., K N Energy, Inc.  and  Kinder
Morgan.  The complaint alleges that Natural collected an unlawful
gathering rate from Chesapeake for the period March 1998  through
December  1999.   Chesapeake is seeking a  refund  totaling  $5.2
million.  Kinder Morgan has responded and denied the allegations.
On  July  27,  2000,  the  FERC issued  an  order   commencing  a
preliminary  non-public investigation into  the  complaint.   The
Company believes it has meritorious defenses to the claim.

On March 29, 2000, Kinder Morgan announced that it had reached  a
settlement with the Federal Energy Regulatory Commission ("FERC")
regarding  issues  surrounding the interpretation of  FERC  Order
No. 497  (which  governs  the   conduct of  interstate  pipelines
and affiliated  gas  marketers  on  their  systems)  relative  to

<PAGE> 17

KMIGT, NGPL and Westar Transmission Company.  KMIGT has been sold
to  Kinder  Morgan Energy Partners, and Westar has been  sold  to
ONEOK,  see Notes 5 and 6.  Combined, Kinder Morgan agreed to pay
a civil penalty and refunds totaling $5.75 million in conjunction
with  the settlement, which also eliminated the potential for any
civil  action  or prolonged regulatory  proceedings.  The matters
resolved related to periods prior to the October 1999 K N Energy-
Kinder  Morgan  merger and, to some extent, periods prior to  K N
Energy's January  1998  acquisition of MidCon Corp.  The  payment
had  no  detrimental effect on Kinder  Morgan's  earnings  due to
the existence of previously established reserves for this matter.

In  April  2000, Kinder Morgan filed appeals against 11  Nebraska
municipalities that have adopted rate ordinances prohibiting  the
collection  of  a surcharge (associated with the P-0802  contract
entered  into  in  1973)  to  recover costs  Retail  incurred  in
purchasing natural gas for its customers.  Kinder Morgan  alleges
that  these  municipalities failed to  determine  an  appropriate
overall  amount  for  Retail's rates and that the  municipalities
failed  to  follow  the appropriate process, as  set  up  by  the
Nebraska legislature, to review the P-0802 contract.  When Retail
opened  its distribution system to competitive supplies in  1998,
participating municipalities were made aware of the surcharge and
passed ordinances allowing it.

12.  Comprehensive Income
     --------------------

Statement  of Financial Accounting Standards No. 130,  "Reporting
of  Comprehensive Income," effective for fiscal  years  beginning
after December 15, 1997, requires that enterprises report a total
for  comprehensive income.  The only difference between "net  in-
come" and "comprehensive income" for  Kinder  Morgan has been the
unrealized  gain  or loss on its investment in available-for-sale
securities, which was recorded directly to stockholders'  equity.
During  the quarter ended March 31, 2000, Kinder Morgan sold  its
available-for-sale securities, 918,367 shares of Tom Brown,  Inc.
Common Stock (see Note 5).  In conjunction with this sale, Kinder
Morgan recorded a reclassification adjustment of $1.6 million  to
"Accumulated  Comprehensive Income", resulting  in  comprehensive
income for the quarter of $47.7 million.  There was no difference
between net income and comprehensive income for the quarter ended
June  30,  2000.   For  the  six  months  ended  June  30,  2000,
comprehensive  income  was $72.5 million, reflecting  the  first-
quarter  transaction described preceding.  For the quarter  ended
June  30,  1999,  Kinder Morgan recorded an unrealized  after-tax
investment  gain  of  $1.9  million, resulting  in  comprehensive
income  for  the  period of $(0.5) million.  For the  six  months
ended  June 30, 1999, Kinder Morgan recorded an unrealized after-
tax  investment gain of $3.0 million, resulting in  comprehensive
income for the period of $7.7 million.

13.  Accounting for Derivative Instruments and Hedging Activities
     ------------------------------------------------------------

In  June  1998, the Financial Accounting Standards  Board  issued
Statement  of Financial Accounting Standards No. 133," Accounting
for   Derivative  Instruments  and   Hedging   Activities"   (the
"Statement").  The Statement establishes accounting and reporting
standards  requiring that every derivative instrument  (including
certain  derivative instruments embedded in other  contracts)  be
recorded  in  the balance sheet as either an asset  or  liability
measured at its fair value.  The Statement requires that  changes
in  the  derivative's  fair  value  be  recognized  currently  in
earnings unless specific hedge accounting criteria are  met.   If
the  derivatives  meet  these criteria, the  Statement  allows  a
derivative's  gains and losses to offset related results  on  the
hedged  item in the income statement, and requires that a company
formally  designate  a  derivative as a hedge  and  document  and
assess   the   effectiveness  of  derivatives   associated   with
transactions that receive hedge accounting.

The  Statement is effective for fiscal years beginning after June
15,  2000.   The Statement cannot be applied retroactively.   The
Statement must be applied to (i) derivative instruments and  (ii)
certain derivative instruments embedded in hybrid contracts  that
were  issued, acquired, or substantively modified after  December
31, 1997

<PAGE> 18

(and,  at  Kinder  Morgan's  election,  before  January 1, 1998).
Kinder  Morgan  has  not quantified the impacts of  adopting  the
Statement on its financial position or results of operations.

14.  Interest Expense, Net
     ---------------------

"Interest   Expense,  Net"  as  presented  in  the   accompanying
Consolidated  Statements  of  Income  is  net  of  (i)  the  debt
component  of  the  allowance for funds used during  construction
("AFUDC  -  Interest"), (ii) in 1999, interest income related  to
government securities associated with the acquisition  of  MidCon
(see  Note  1(K)  of  Notes to Consolidated Financial  Statements
included in Kinder Morgan's 1999 Annual Report on Form 10-K)  and
(iii)  in the first quarter of 2000, interest income attributable
to  Kinder  Morgan's note receivable from  Kinder  Morgan  Energy
Partners  associated  with  the  sale of certain  interests,  see
Note 5.

                      Three Months Ended       Six Months Ended
                           June 30,                June 30,
                      -------------------    -------------------
                                     (In Thousands)
                        2000        1999        2000        1999
                      -------     -------     -------     -------
AFUDC - Interest      $   285     $    98     $   997     $   311
Interest Income       $     -     $     -     $ 2,647     $   480

15.  Other, Net
     ----------

"Other,  Net"  as  presented  in  the  accompanying  Consolidated
Statement  of  Income for the three months and six  months  ended
June 30, 1999 principally consists of the $17.5 million gain from
the  sale  of certain offshore assets, see Note 5.  "Other,  Net"
for  the six months ended June 30, 2000, principally consists  of
(i)  $4.1 million due to the recovery of note receivable proceeds
in  excess  of its carrying value, (ii) $3.9 million attributable
to  the settlement of a regulatory matter for an amount less than
that  previously  reserved, see Note 11 and  (iii)  $1.3  million
attributable  to a gain from the sale of Tom Brown,  Inc.  Common
Stock, see Note 5.

16.  Accounts Receivable
     -------------------

The   caption   "Accounts   Receivable"   in   the   accompanying
Consolidated  Balance Sheets is presented net of  allowances  for
doubtful  accounts  of $1.2 million at June 30,  2000,  and  $1.7
million at December 31, 1999.

17.  Environmental and Legal Matters
     -------------------------------

(A)  Environmental Matters

On  December  20,  1999, the U.S. Department of Justice  filed  a
Complaint  on behalf of the U.S. Environmental Protection  Agency
in  the  Federal District Court of Colorado, Civil  Action  99-S-
2419, against Natural alleging that Natural failed to obtain  all
of  the necessary air quality permits in 1979 when it constructed
the Akron Compressor Station, which consisted of three compressor
engines in Weld County,  Colorado.   Natural constructed and then
operated the facility until August 1996 when it was  sold to High
Plains Gathering System.  High Plains sold one  of the compressor
engines to Colorado Interstate Gas Company in October 1997.

The  complaint makes the standard request for penalties up to the
statutory maximums for each day of violation.  Natural has  filed
a motion to dismiss this case and is in discussions with the U.S.
Department of Justice.  Natural has prepared a number of defenses
to  the  complaint  and  plans to defend the  action  vigorously.

<PAGE> 19

Although  Kinder  Morgan cannot express  an  opinion  as  to  the
probable  outcome of this case, Kinder Morgan believes that  this
proceeding  will  not have a material adverse  effect  on  Kinder
Morgan's  business, cash flows, financial position or results  of
operations.

Based  on  current  information and taking into account  accruals
established  for  environmental matters, Kinder Morgan  does  not
believe   that   compliance  with  federal,   state   and   local
environmental  laws and regulations will have a material  adverse
effect   on  Kinder  Morgan's  business,  cash  flows,  financial
position  or  results of operations.  In addition,  the  clean-up
programs  in  which Kinder Morgan is engaged are not expected  to
interrupt  or  diminish Kinder Morgan's ability  to  operate  its
businesses.   However,  there can be no  assurances  that  future
events, such as changes in existing laws, the promulgation of new
laws,  or  the  development of new facts or conditions  will  not
cause Kinder Morgan to incur significant costs.

See  Note  9(A) of Notes to Consolidated Financial Statements  of
Kinder  Morgan's Annual Report on Form 10-K for  the  year  ended
December   31,   1999,   for  additional  information   regarding
environmental matters.

(B)  Litigation Matters

"K N TransColorado, Inc. v. TransColorado Gas  Transmission  Com-
pany, et. al," Case No. 00-CV-129, District Court, County of Gar-
field,  State  of Colorado.  On June 15, 2000, K N  TransColorado
filed  suit  against  Questar TransColorado and  several  of  its
affiliated  Questar  entities, asserting  claims  for  breach  of
fiduciary  duties,  breach of contract, constructive  trust,  re-
cission  of  the partnership agreement, breach of good faith  and
fair  dealing,  tortious concealment, mistrepresentation,  aiding
and  abetting  a  breach of fiduciary duty,  dissolution  of  the
TransColorado  partnership,  and seeking a declaratory  judgment,
among  other claims.  The TransColorado partnership has been made
a  defendant  for purposes of an accounting.  The  lawsuit  stems
from  Questar's failure to support the TransColorado partnership,
together  with  its  decision to seek regulatory approval  for  a
project  that  competes  with the partnership, in breach  of  its
fiduciary  duties  as a partner.  K N TransColorado seeks to  re-
cover damages in excess of $152 million due to Questar's breaches
and,  in  addition, seeks punitive damages.  In response  to  the
complaint,  on  July  28,  2000,  the Questar  entities  filed  a
counterclaim  and  third party claims against Kinder  Morgan  and
certain Kinder Morgan entities for claims arising out of the con-
struction  and  operation of the TransColorado pipeline  project.
The  claims  allege, among other things, that the  Kinder  Morgan
entities  interfered  with and delayed construction of the  pipe-
line  and  made misrepresentations about marketing  of  capacity.
The  Questar  entities seek to recover damages in excess of  $185
million for an alleged breach of fiduciary duty and other claims.

"Jack J. Grynberg v. K N Energy, Inc., Rocky Mountain Natural Gas
Company, and GASCO, Inc.," Civil Action No. 92-N-2000. On October
9,  1992,  Jack  J.  Grynberg filed suit  in  the  United  States
District  Court  for  the  District of  Colorado  against  Kinder
Morgan,  Rocky  Mountain  Natural Gas  Company  and  GASCO,  Inc.
alleging  that  these entities, referred to  here  as  the  "K  N
Entities,"  as  well  as  K N Production  Company  and  K  N  Gas
Gathering, Inc., have violated federal and state antitrust  laws.
In  essence, Grynberg asserts that the companies have engaged  in
an  illegal exercise of monopoly power, have illegally denied him
economically  feasible access to essential facilities  to  store,
transport  and  distribute gas, and illegally have  attempted  to
monopolize  or  to  enhance  or maintain  an  existing  monopoly.
Grynberg also asserts certain state causes of action relating  to
a  gas purchase contract.  In February 1999, the Federal District
Court granted summary judgment for the K N Entities as to some of
Grynberg's  antitrust and state law claims, while allowing  other
claims  to  proceed  to trial.  In addition to monetary  damages,
Grynberg has requested that the K N Entities be ordered to divest
all   interests  in  natural  gas  exploration,  development  and
production   properties,  all  interests  in   distribution   and
marketing  operations, and all interests in natural  gas  storage
facilities,  separating  these  interests  from  Kinder  Morgan's
natural  gas  gathering and transportation  system  in  northwest
Colorado.  No trial date has been set.

<PAGE> 20

"Jack  J. Grynberg, individually and as general partner  for  the
Greater  Green  River  Basin Drilling  Program:  72-73  v.  Rocky
Mountain  Natural  Gas  Company and K N Energy, Inc.,"  Case  No.
90-CV-3686.  On June 5, 1990, Jack J. Grynberg filed suit,  which
is presently  pending  in  Jefferson  County  District  Court for
Colorado,  against Rocky Mountain Natural Gas Company and  Kinder
Morgan  alleging  breach  of contract  and  fraud.   In  essence,
Grynberg  asserts claims that the named companies failed  to  pay
Grynberg  the proper price, impeded the flow of gas,  mismeasured
gas,  delayed  his development of gas reserves, and other  claims
arising  out  of  a  contract to purchase gas  from  a  field  in
northwest  Colorado.   On  February 13,  1997,  the  trial  judge
entered partial summary judgment for Mr. Grynberg on his contract
claim  that  he failed to receive the proper price for  his  gas.
This  ruling followed an appellate decision which was adverse  to
Kinder  Morgan on the contract interpretation of the price issue,
but  which did not address the question of whether Grynberg could
legally  receive the price he claimed or whether he had illegally
diverted  gas  from a prior purchase.  On August  29,  1997,  the
trial judge stayed the summary judgment pending resolution  of  a
proceeding  at the FERC to determine if Grynberg was entitled  to
administrative relief from an earlier dedication of the same  gas
to  interstate  commerce.  The background of that  proceeding  is
described  in the immediately following paragraph.  On March  15,
1999,  an  Administrative Law Judge for the FERC ruled, after  an
evidentiary hearing, that Mr. Grynberg had illegally diverted the
gas when he entered the contract with the named companies and was
not  entitled  to  relief.   Grynberg filed  exceptions  to  this
ruling.   In late March 2000, the FERC issued an order  affirming
in  part  and  denying in part the motions for rehearing  of  its
Initial  Decision.  The action in Colorado remains stayed pending
final resolution of the FERC proceeding.

"Jack  J. Grynberg v. Rocky Mountain Natural Gas Company," Docket
No.  GP91-8-008.  On May 8, 1991, Grynberg filed a  petition  for
declaratory  order with the FERC seeking a determination  whether
he  was  entitled  to the price he seeks in the Jefferson  County
District   Court  proceeding  referred  to  in  the   immediately
preceding   paragraph.   While  Grynberg  initially  received   a
favorable  decision from the FERC, that decision was reversed  by
the Court of Appeals for the District of Columbia Circuit on June
6,  1997.   This  matter  has  been  remanded  to  the  FERC  for
subsequent  proceedings.  The matter was  set  for  an  expedited
evidentiary hearing, and an Initial Decision favorable  to  Rocky
Mountain  was issued on March 15, 1999.  That decision determined
that  Grynberg  had intentionally diverted gas  from  an  earlier
dedication to interstate commerce in violation of the Natural Gas
Act  and  denied  him equitable administrative relief.   Grynberg
filed  exceptions to this Initial Decision.  In late March  2000,
the  FERC issued an order affirming in part and denying  in  part
the  motions  for  rehearing of its Initial Decision.   In  April
2000,  Kinder Morgan, together with the other parties, filed  for
rehearing.

"United  States  of  America, ex rel., Jack J.  Grynberg  v.  K N
Energy," Civil  Action No. 97-D-1233, filed in the U.S.  District
Court,  District of Colorado.  This action was filed pursuant  to
the   federal  False  Claim  Act  and  involves  allegations   of
mismeasurement  of natural gas produced from federal  and  Indian
lands.  The Department of Justice has decided not to intervene in
support of the action.  The complaint is part of a larger  series
of  similar  complaints filed by Mr. Grynberg against 77  natural
gas  pipelines (approximately 330 other defendants).  An  earlier
single  action  making substantially similar allegations  against
the  pipeline industry was dismissed by Judge Hogan of  the  U.S.
District  Court  for  the  District of  Columbia  on  grounds  of
improper  joinder  and lack of jurisdiction.  As  a  result,  Mr.
Grynberg filed individual complaints in various courts throughout
the  country.   These  cases were recently  consolidated  by  the
Judicial  Panel for Multidistrict Litigation, and transferred  to
the  District  of  Wyoming.  Motions to  Dismiss  were  filed  on
November  19, 1999.  Plaintiff filed his response on January  14,
2000 and defendants filed their Reply Brief on February 14, 2000.
An  oral argument on the Motion to Dismiss occurred on March  17,
2000.   On  July  20, 2000 the United States of America  filed  a
motion  to  dismiss those claims by Grynberg that deal  with  the
manner  in  which  defendants valued gas  produced  from  federal
leases.

<PAGE> 21

"Quinque Operating Company, et. al. v. Gas Pipelines,  et.  al.,"
Cause  No.  99-1390-CM,  United States  District  Court  for  the
District  of Kansas.  This action was originally filed in  Kansas
state  court in Stevens County, Kansas as a class action  against
approximately  245  pipeline  companies  and  their   affiliates,
including certain Kinder Morgan entities.  The plaintiffs in  the
case  purport  to represent a class of natural gas producers  and
fee  royalty  owners who allege that they have  been  subject  to
systematic gas mismeasurement by the defendants for more than  25
years.  Subsequently, one of the defendants removed the action to
Kansas Federal District Court.  Thereafter, Kinder Morgan filed a
motion  with  the Judicial Panel for Multidistrict Litigation  to
consolidate  this action for pretrial purposes with the  Grynberg
False  Claim  Act  cases  referred to above,  because  of  common
factual questions.  On April 10, 2000, the MDL Panel ordered that
this  case be consolidated with the Grynberg federal False Claims
Act cases.

"Dirt  Hogs, Inc. v. Natural Gas Pipeline Company of America,  et
al."  There have been several related cases with Dirt Hogs,  Inc.
with  allegations  of breach of contract, false  representations,
improper   requests   for  kickbacks  and  other   improprieties.
Essentially,  the  Plaintiff claims  that  it  should  have  been
awarded  extensive  pipeline reclamation work without  having  to
qualify  or  bid  as a qualifying contractor.  Case  No.  Civ-98-
231-R,  is  a case which was dismissed in the U.S. District Court
for  the  Western  District of Oklahoma because of  pleading  de-
ficiencies and is now on appeal to the 10th Circuit (Case No. 99-
6-026).  On April 10, 2000, the 10th Circuit upheld the dismissal
of  this action.  Another case, arising out of the  same  factual
allegations, was filed by Dirt Hogs in the District Court,  Caddo
County,  Oklahoma  (Case No. CJ-99-92), on March  29,  1999.   By
agreement  of  all parties, this action is currently  stayed.   A
third  related  case,  styled "Natural Gas  Pipeline  Company  of
America, et al. v. Dirt Hogs, Inc." (Case No. 99-360-R), resulted
in  a  default  judgement  against Dirt  Hogs.   After  initially
appealing the default judgement, Dirt Hogs dismissed their appeal
on September 1, 1999.

"K N  Energy,  Inc.,  et  al. v. James P.  Rode  and  Patrick  R.
McDonald," Case  No.  99CV1239,  filed  in  the  District  Court,
Jefferson  County,  Division  8,  Colorado.  Defendants  counter-
claimed  and  filed  third party  claims  against  several former
K  N Energy officers and/or directors.  Messrs. Rode and McDonald
are  former  principal shareholders  of  Interenergy Corporation.
Interenergy  was  acquired  by  K N Energy on  December 19,  1997
pursuant  to a Merger Agreement dated August 25,  1997. Rode  and
McDonald  allege  that  K N  Energy  committed  securities fraud,
common  law  fraud and negligent  misrepresentation  as  well  as
breach in contract.  Plaintiffs are seeking an unspecified amount
of  compensatory  damages,  greater than  $2  million,  plus  un-
specified  exemplary  or  punitive damages, attorney's  fees  and
their  costs.   Kinder Morgan filed a motion to dismiss,  and  on
April  21,  2000,  the  Jefferson  County  District  Court  Judge
dismissed the case against Kinder Morgan and the individuals with
prejudice.   Defendants  also filed a  federal  securities  fraud
action  in  the United States District Court for the District  of
Colorado  on January 27, 2000 titled: "James P. Rode and  Patrick
R. McDonald  v. K N Energy, Inc., et al.," Civil Action No. 00-N-
190.  This case initially raised the identical state  law  claims
contained in the counterclaim and third party complaint in  state
court.   Rode  and  McDonald  filed an amended  Complaint,  which
dropped  the state-law claims.  This Complaint is now the subject
of  a  motion to dismiss filed by defendants.  The case has  been
stayed  pending  the outcome of these motions.  A  third  related
class  action  case  styled, "Adams vs. Kinder Morgan, Inc.,  et.
al.," Civil  Action  No. 00-M-516, in the United States  District
Court for the District of Colorado was served on Kinder Morgan on
April  10,  2000.  As of this date no class has  been  certified.
Kinder  Morgan  has filed a motion to dismiss this case, and  the
case has been stayed pending the resolution of this motion.

Kinder  Morgan  believes  it  has  meritorious  defenses  to  all
lawsuits  and  legal proceedings in which it is a  defendant  and
will vigorously defend against them.  Based on its evaluation  of
the   above   matters,  and  after  consideration   of   reserves
established, Kinder Morgan believes that the resolution  of  such
matters  will  not  have  a  material adverse  effect  on  Kinder
Morgan's business, financial position or results of operations.

<PAGE> 22

See  Note  9(B) of Notes to Consolidated Financial Statements  of
Kinder  Morgan's Annual Report on Form 10-K for  the  year  ended
December  31,  1999, for additional information  regarding  legal
matters.

Item 2.  Management's Discussion and Analysis of Financial
Condition and Results of Operations

General
-------

As  used in this report, "Kinder Morgan" refers to Kinder Morgan,
Inc.  (a  Kansas corporation, formerly K N Energy, Inc.) and  its
consolidated  subsidiaries.  The following discussion  should  be
read  in  conjunction  with  (i)  the  accompanying  Consolidated
Financial  Statements and related Notes and (ii) the Consolidated
Financial  Statements, related Notes and Management's  Discussion
and  Analysis  of Financial Condition and Results  of  Operations
included in Kinder Morgan's 1999 Annual Report on Form 10-K.  Due
to  the seasonal variation in energy demand, among other factors,
the  following  interim  results may not  be  indicative  of  the
results to be expected for an entire year.  As discussed in Notes
2  and  5  of  the  accompanying Notes to Consolidated  Financial
Statements,   Kinder  Morgan  has  engaged  in  acquisition   and
divestiture  transactions  (and may  engage  in  additional  such
transactions)  which  may  affect the comparison  of  results  of
operations between periods.

In  accordance  with the manner in which Kinder Morgan  currently
manages  its businesses, including the allocation of capital  and
evaluation  of  business unit performance, Kinder Morgan  reports
its  operations  in  the  following  segments:  (1)  Natural  Gas
Pipeline  Company  of  America and certain  associated  entities,
referred  to  as "NGPL," a major interstate natural gas  pipeline
system;  (2) Kinder Morgan Texas Pipeline and certain  associated
entities,  referred to as "KMTP," a major intrastate natural  gas
pipeline   system;   (3)   "Retail,"  the   (largely   regulated)
distribution  of natural gas to retail customers and  (4)  "Power
and  Other," the generation and sale of electric power,  together
with various other activities not constituting business segments.
Prior  to  its  December 31, 1999, sale to Kinder  Morgan  Energy
Partners  (see  Note 5 of the accompanying Notes to  Consolidated
Financial  Statements),  Kinder Morgan also  owned  and  operated
Kinder  Morgan  Interstate Gas Transmission  LLC  (formerly  K  N
Interstate  Gas Transmission Co.), which is referred to  in  this
report  as  "KMIGT."  Certain prior period results  and  balances
have been reclassified to conform to the current presentation.

Certain information contained in this report may include "forward-
looking  statements" within the meaning of the Private Securities
Litigation  Reform Act of 1995.  These statements are subject  to
risks  and  uncertainties  and  are  based  on  the  beliefs  and
assumptions  of Kinder Morgan's management, based on  information
currently  available to Kinder Morgan's management.   When  words
such as "believes," "expects," "anticipates," "intends," "plans,"
"estimates,"  "should" or similar expressions  are  used,  Kinder
Morgan is making forward-looking statements.

Forward-looking  statements  are not guarantees  of  performance.
They  involve risks, uncertainties and assumptions.   The  future
results  and  stockholder  values of  Kinder  Morgan  may  differ
materially   from   those  expressed  in  these   forward-looking
statements.   Many  of  the  factors that  will  determine  these
results  and values are beyond Kinder Morgan's ability to control
or  predict.  These statements are necessarily based upon various
assumptions  involving  judgments  with  respect  to  the  future
including,  among  others, the ability to achieve  synergies  and
revenue  growth,  national,  international,  regional  and  local
economic, competitive and regulatory conditions and developments,
technological developments, capital market conditions,  inflation
rates,  interest rates, the political and economic  stability  of
oil   producing  nations,  energy  markets,  weather  conditions,
business  and  regulatory  or  legal  decisions,  the   pace   of
deregulation  of retail natural gas and electricity,  the  timing
and  extent of changes in commodity prices for oil, natural  gas,
natural   gas   liquids,  electricity  and  certain  agricultural
products, the timing and success of business development efforts,
and  other  uncertainties, all of which are

<PAGE> 23

difficult to predict and many of which are beyond Kinder Morgan's
control.  Readers are cautioned  not to put undue reliance on any
forward-looking statements.  For those statements, Kinder  Morgan
claims  the protection  of  the  safe  harbor for forward-looking
statements contained in the Private Securities Litigation  Reform
Act of 1995.

<TABLE>
<CAPTION>

Consolidated Financial Results
------------------------------

                                Three Months Ended June 30,           Six Months Ended June 30,
                                ---------------------------           -------------------------
                                                     Increase                              Increase
                               2000        1999     (Decrease)       2000        1999     (Decrease)
                              ------      ------    ----------      ------      ------    ----------
                                            (In Thousands Except Per Share Amounts)
<S>                         <C>         <C>         <C>           <C>         <C>         <C>
Operating Revenues          $ 549,844   $ 431,727   $118,117      $1,030,356  $ 858,994   $ 171,362
Gross Margin                  169,076     183,406    (14,330)        373,011    404,768     (31,757)
General and Administrative
  Expenses                     13,855      24,886    (11,031)         28,148     45,235     (17,087)
Merger-related Costs                -      (2,916)     2,916               -          -           -
Operating Income               83,474      67,383     16,091         197,870    167,543      30,327
Income From Continuing
  Operations                   24,827      12,380     12,447          70,911     36,288      34,623
Loss From Discontinued
  Operations, Net of Tax         N/A      (14,788)      N/A            N/A      (31,574)       N/A
Diluted Earnings (Loss) Per
  Share:
    Continuing Operations   $    0.22        0.17   $   0.05      $     0.62       0.51   $    0.11
    Discontinued Operations      N/A    $   (0.21)      N/A            N/A    $   (0.45)       N/A
</TABLE>

Kinder  Morgan's  results for the quarter ended  June  30,  2000,
reflect  an  increase  of  $118.1 million  (27.4%)  in  operating
revenues, a decrease of $14.3 million (7.8%) in gross margin  and
an increase of $16.1 million (23.9%) in operating income from the
second  quarter  of  1999.  Operating results  for  2000  do  not
include revenues, costs and expenses of KMIGT, which was sold  to
Kinder  Morgan Energy Partners effective December 31, 1999.   The
increase  in  operating revenues is principally due to  increased
revenues  at  KMTP,  partially offset by  the  absence  of  KMIGT
revenues  in  the second quarter of 2000.  The decline  in  gross
margin  principally  reflects the sale  of  KMIGT.   General  and
administrative  expenses  decreased from  $24.9  million  in  the
second quarter of 1999 to $13.9 million in the second quarter  of
2000,  a  decrease of $11.0 million (44.3%) due to cost reduction
measures  implemented  following the  business  combination  with
Kinder  Morgan  Delaware.   The credit for  merger-related  costs
reimbursement included in results for the second quarter of  1999
is  associated with the proposed merger with Sempra  Energy  that
was   not  consummated.   For  additional  information  on  these
matters,  see  Notes  2  and  5  of  the  accompanying  Notes  to
Consolidated  Financial  Statements.   The  increased   operating
income,  which  occurred  despite the  sale  of  KMIGT,  reflects
improved  second-quarter 2000 performance  by  several  operating
segments as discussed following.

Kinder  Morgan's results for the six months ended June 30,  2000,
reflect  an  increase  of  $171.4 million  (19.9%)  in  operating
revenues, a decrease of $31.8 million (7.8%) in gross margin  and
an increase of $30.3 million (18.1%) in operating income from the
corresponding period of 1999.  Operating results for 2000 do  not
include revenues, costs and expenses of KMIGT, which was sold  to
Kinder  Morgan Energy Partners effective December 31, 1999.   The
increase  in  operating revenues is principally due to  increased
revenues  at  KMTP,  partially offset by  the  absence  of  KMIGT
revenues   in   2000  results.   The  decline  in  gross   margin
principally   reflects   the  sale   of   KMIGT.    General   and
administrative expenses decreased from $45.2 million in the first
six  months of 1999 to $28.1 million in the first six  months  of
2000,  a  decrease of $17.1 million (37.8%) due to cost reduction
measures  implemented  following the  business  combination  with
Kinder  Morgan  Delaware.  For additional  information  on  these
matters,  see  Notes  2  and  5  of  the  accompanying  Notes  to
Consolidated Financial

<PAGE> 24

Statements.   The  increased   operating income,  which  occurred
despite the sale of KMIGT, reflects improved 2000 performance  by
several operating segments as discussed following.

Operating  income for each of Kinder Morgan's business  segments,
as  well  as  interest expense, other income and  deductions  and
income taxes were affected by various factors which are described
within  the  corresponding individual discussions  which  follow.
Following  are  operating results by individual  segment  (before
intersegment eliminations), including explanations of significant
variances in results between the periods presented.

<TABLE>
<CAPTION>
                                  Three Months Ended June 30,         Six Months Ended June 30,
                                ------------------------------     -------------------------------
 Natural Gas Pipeline Company                          Increase                           Increase
   of America                     2000        1999    (Decrease)     2000       1999     (Decrease)
 ----------------------------    ------      ------   ----------    ------     ------    ----------
                                            (In Thousands Except Systems Throughput)
<S>                            <C>         <C>        <C>         <C>        <C>         <C>
 Operating Revenues:
   Transportation and Storage  $ 114,714   $ 135,616  $ (20,902)  $ 259,292  $ 286,235   $ (26,943)
   Other                           6,085      16,742    (10,657)      9,561     19,622     (10,061)
                               ---------   ---------  ---------   ---------  ---------   ---------
 Total Operating Revenues        120,799     152,358    (31,559)    268,853    305,857     (37,004)
                               ---------   ---------  ---------   ---------  ---------   ---------

 Operating Costs and
 Expenses:
   Gas Purchases and Other
     Costs of Sales                1,222      30,411    (29,189)     15,022     47,384     (32,362)
   Operations and Maintenance     14,145      15,552     (1,407)     30,403     34,486      (4,083)
   Depreciation and
     Amortization                 21,197      33,524    (12,327)     42,315     67,188     (24,873)
   Taxes, Other Than Income
     Taxes                         4,989       5,612       (623)      9,917     11,076      (1,159)
                               ---------   ---------  ---------   ---------  ---------   ---------
 Total Operating Expenses         41,553      85,099    (43,546)     97,657    160,134     (62,477)
                               ---------   ---------  ---------   ---------  ---------   ---------

 Operating Income Before
   Corporate Costs             $  79,246   $  67,259  $  11,987   $ 171,196  $ 145,723   $  25,473
                               =========   =========  =========   =========  =========   =========

 Systems Throughput (Trillion
   Btus)                           341.1       340.1        1.0       774.6      760.8        13.8
                               =========   =========  =========   =========  =========   =========
</TABLE>


NGPL's operating income before corporate costs increased by $12.0
million  (17.8%)  in the second quarter of 2000 from  the  second
quarter  of  1999.   Operating results for 2000  were  positively
impacted,  relative to 1999, by  (i) a reduction in  amortization
resulting  from the July 1999 change in amortization  rates  (see
Note  4  of  the  accompanying Notes  to  Consolidated  Financial
Statements),   (ii)  increased  2000  storage   activity,   (iii)
favorable gas imbalance resolutions in 2000 and (iv) reduced 2000
operating  expenses reflecting continued cost  control  measures.
These positive effects were partially offset by (i) reduced  2000
revenues  due  to sales of certain gathering assets and  offshore
laterals  (see  Note 5 of the accompanying Notes to  Consolidated
Financial  Statements), (ii) reduced 2000 operational gas  sales,
which  NGPL  expects  to make up later in  the  year,  and  (iii)
decreased  2000  unit  revenues  largely  attributable  to   both
existing  and  planned  competing  pipeline  capacity  (with  the
attendant reduced value of transportation) in the upper  Midwest,
NGPL's  principal  market area; although, as discussed  following
and  in  Kinder  Morgan's 1999 Annual Report on Form  10-K,  NGPL
continues  to experience success in retaining existing  customers
and acquiring new customers.

NGPL's  operating income before corporate costs  increased  $25.5
million  (17.5%) in the six months ended June 30, 2000, over  the
corresponding period in 1999.  Year-to-date results were affected
by  the  same factors affecting the second quarter, as  discussed
preceding.    In  addition,  results  for  2000  were  positively
affected   by  a  $3.3  million  refund  of  previously  expensed
transportation charges from an unaffiliated interstate pipeline.

In  March  2000, Kinder Morgan announced that it  had  reached  a
settlement  with  the Federal Energy Regulatory  Commission  (the
"FERC")  regarding issues surrounding the interpretation of  FERC
Order No. 497 to several entities currently or formerly owned  by
Kinder  Morgan, including Natural Gas Pipeline Company of America

<PAGE> 25

("Natural").  For additional information on this matter, see Note
11  of  the accompanying Notes to Consolidated  Financial  State-
ments.

Also  in March 2000, Kinder Morgan announced that it had filed  a
"motion  to dismiss" in Colorado Federal District Court and  will
vigorously  defend  itself  against  a  complaint  filed  by  the
Department of Justice alleging that Natural failed to obtain  all
necessary  air  quality  permits when constructing  a  compressor
station  in  Colorado  more than 20 years  ago.   For  additional
information on this matter, see Note 17 of the accompanying Notes
to Consolidated Financial Statements.

During  the first quarter of 2000, Natural announced that it  had
(i)  fully  subscribed its 130 Bcf of nominated storage  capacity
until  at  least  January 1, 2001, as a result of  entering  into
contracts for 25 Bcf of firm nominated storage service under  two
separate  three-year  contracts and (ii) entered  into  contracts
with  Ameren  Corporation  for up to 245,000  MMBtu  per  day  of
natural  gas transportation through a four-year term which  began
on April 1, 2000.

In   April   2000,  Natural  announced  that  it  had   initiated
HubAmerica, a new program designed to facilitate the movement  of
natural  gas  from Chicago and other MidWest regions  to  markets
served  directly by Natural or through interconnecting pipelines.
In connection with establishment of HubAmerica, Natural signed  a
letter  of  intent with Duke Energy's Texas Eastern  Transmission
Corporation  for  a  long-term reciprocal  natural  gas  pipeline
capacity  lease.   Under the agreement, the  two  pipelines  will
lease   capacity  on  each  other's  systems  to  offer  seamless
transportation services of natural gas from the Chicago  area  to
eastern markets.  HubAmerica will provide direct access to  major
markets  in  Illinois, Indiana, Iowa and Wisconsin, and  indirect
access to Dallas, Houston, St. Louis, Kansas City and markets  on
the  West  Coast,  East  Coast  and Southeastern  states  through
numerous   downstream   interstate  and   intrastate   pipelines.
HubAmerica  will  offer  firm  and  interruptible  transportation
services  in  conjunction with other Natural  services,  such  as
parking  and loaning transactions and other storage and balancing
services.

In  May  2000, Kinder Morgan and Southern Energy, Inc.  announced
plans  to build a 550-megawatt electric power plant southeast  of
Little Rock, Arkansas.  The gas-fired plant is scheduled to begin
producing   power   by   the  second  quarter   of   2002.    Gas
transportation service for the plant will be provided by Natural.
Kinder  Morgan  intends  to  continue  increasing  throughput  on
Natural by supplying gas transportation service to power plants -
both  those  in  which  Kinder  Morgan  will  have  an  ownership
interest,  as  well  as  those owned by third  party  electricity
providers.

In  July  2000,  Natural  entered into agreements  with  Northern
Indiana  Public  Service  ("NIPSCO"), a subsidiary  of  NiSource,
Inc.,  to extend the terms of its firm natural gas transportation
and storage services.  The agreements total 295,100 MMBtu per day
of  capacity beginning December 1, 2000 and December 1, 2001  and
continuing  through November 30, 2002.  Natural and  NIPSCO  also
extended the terms of two storage agreements totaling 10.5 Bcf of
capacity  beginning  December 1,  2000  and  April  1,  2001  and
continuing through March 31, 2003.

<PAGE> 26

<TABLE>
<CAPTION>

 Kinder Morgan Interstate                  Three Months Ended    Six Months Ended
   Gas Transmission                           June 30, 1999        June 30, 1999
 ------------------------                   ------------------    ----------------
                                                 (In Thousands Except Systems
                                                         Throughput)
<S>                                            <C>                  <C>
 Operating Revenues:
   Transportation and Storage                  $    24,948          $    51,236
   Other                                                57                  166
                                               -----------          -----------
 Total Operating Revenues                           25,005               51,402
                                               -----------          -----------
 Operating Costs and Expenses:
   Gas Purchases and Other Costs of Sales            1,140                  691
   Operations and Maintenance                        5,397               11,447
   Depreciation and Amortization                     5,009               10,154
   Taxes, Other Than Income Taxes                    1,069                2,368
                                               -----------          -----------
 Total Operating Expenses                           12,615               24,660
                                               -----------          -----------

 Operating Income Before Corporate Costs       $    12,390          $    26,742
                                               ===========          ===========

 Systems Throughput (Trillion Btus)                   48.6                103.3
                                               ===========          ===========
</TABLE>


Effective December 31, 1999, Kinder Morgan contributed KMIGT  and
Kinder  Morgan Trailblazer LLC (formerly NGPL-Trailblazer, Inc.),
as  well as its interest in Red Cedar Gathering Company to Kinder
Morgan Energy Partners in exchange for $330 million in cash  plus
approximately  9.8 million Kinder Morgan Energy  Partners  common
units.   See  Note  5 of the accompanying Notes  to  Consolidated
Financial   Statements  for  more  information   regarding   this
transaction.  In March 2000, Kinder Morgan announced that it  had
reached  a  settlement with the FERC regarding issues surrounding
the   interpretation  of  FERC  Order  497  to  several  entities
currently  or  formerly owned by Kinder Morgan, including  KMIGT.
For  additional information on this matter, see Note  11  of  the
accompanying Notes to Consolidated Financial Statements.

<TABLE>
<CAPTION>
                                    Three Months Ended June 30,          Six Months Ended June 30,
                                 --------------------------------    --------------------------------
                                                         Increase                            Increase
 K N Retail                        2000        1999     (Decrease)     2000        1999     (Decrease)
 ----------                       ------      ------    ----------    ------      ------    ----------
                                               (In Thousands Except Systems Throughput)
<S>                             <C>         <C>         <C>         <C>         <C>         <C>
 Operating Revenues:
   Gas Sales                    $  23,149   $  22,905   $     244   $  77,059   $  77,674   $    (615)
   Transportation                   8,564       9,017        (453)     19,821      20,214        (393)
   Other                            4,450       4,281         169       7,706       8,177        (471)
                                ---------   ---------   ---------   ---------   ---------   ---------
 Total Operating Revenues          36,163      36,203         (40)    104,586     106,065      (1,479)
                                ---------   ---------   ---------   ---------   ---------   ---------
 Operating Costs and Expenses:
   Gas Purchases and Other
     Costs of Sales                17,988      21,678      (3,690)     53,294      62,231      (8,937)
   Operations and Maintenance       8,272      10,146      (1,874)     18,084      20,396      (2,312)
   Depreciation and
     Amortization                   2,888       2,840          48       5,777       5,685          92
   Taxes, Other Than Income
     Taxes                            684         754         (70)      1,313       1,640        (327)
                                ---------   ---------   ---------   ---------   ---------   ---------
 Total Operating Expenses          29,832      35,418      (5,586)     78,468      89,952     (11,484)
                                ---------   ---------   ---------   ---------   ---------   ---------

 Operating Income Before
   Corporate Costs              $   6,331   $     785   $   5,546   $  26,118   $  16,113   $  10,005
                                =========   =========   =========   =========   =========   =========
 Systems Throughput (Trillion
   Btus)                             11.7         9.5         2.2        33.5        26.7         6.8
                                =========   =========   =========   =========   =========   =========
</TABLE>


Retail's  operating  income before corporate costs  increased  by
$5.5  million  in  the  second quarter of 2000  from  the  second
quarter  of  1999.   Operating results for 2000  were  positively
impacted, relative to 1999, by (i) increased system throughput in
2000,  although  a  portion of this increase  represents  volumes
transported for

<PAGE> 27

relatively  low  margins, (ii) reduced cost of  gas  achieved  by
utilizing  lower  cost gas from storage (K N Retail  utilizes the
average   cost  inventory  method  for  its  gas  in  underground
storage),  (iii)  certain unfavorable  adjustments  to  gas  cost
affecting  1999  results  and  (iv)  reduced  operating  expenses
reflecting (1) a reduction in advertising and marketing  expenses
for  the Choice  Gas  program, (2)  continued focus  on efficient
operations  and  (3)  reduced  costs  for  certain administrative
functions  due to renegotiation of  a contract with a third-party
service provider.

Retail's operating income before corporate costs increased  $10.0
million  (62.1%) in the six months ended June 30, 2000, over  the
corresponding period in 1999.  Year-to-date results were affected
by  essentially the same factors affecting the second quarter, as
discussed preceding.

In  May  2000,  Kinder Morgan announced the results  of  Retail's
Residential/Commercial  Choice  Gas  Programs  in  Nebraska   and
Wyoming.   During the selection periods, which ran from mid-April
to  early  May, customers had the opportunity to select from  six
natural gas suppliers in Nebraska and three natural gas suppliers
in Wyoming.  In both states Retail received 75%  or more  of  the
residential/commercial  gas  sales  market.  The residential/com-
mercial  market  represents  approximately  86,000 customers  and
16.0 Bcf of natural gas per year in Nebraska and 10,000 customers
and 1.5 Bcf per year in Wyoming.

In  March  2000, Kinder Morgan announced the results of  Retail's
Agricultural  Choice  Gas  Program, which  provides  agricultural
customers in Nebraska (approximately 10,000 customers, a 6.6  Bcf
per year market) the option to select their natural gas supplier.
During  the selection period, which ran from January 20 to  March
15,  customers in Nebraska had the opportunity to select from six
natural gas suppliers.  Retail received the largest share of  the
market  with  50%,  which represents a small increase  in  market
share  over the previous year, with the next largest market share
going to Midwest United Energy at 32%.

Kinder Morgan recently filed appeals with respect to recovery  of
certain surcharges in Nebraska, see "Regulatory Matters".

<TABLE>
<CAPTION>

                                     Three Months Ended June 30,          Six Months Ended June 30,
                                   --------------------------------    --------------------------------
                                                           Increase                            Increase
 Kinder Morgan Texas Pipeline        2000        1999     (Decrease)     2000        1999     (Decrease)
 ----------------------------       ------      ------    ----------    ------      ------    ----------
                                                 (In Thousands Except Systems Throughput)
<S>                               <C>         <C>         <C>         <C>         <C>         <C>
 Operating Revenues
   Gas Sales                      $ 356,884   $ 189,793   $ 167,091   $ 588,847   $ 343,787   $ 245,060
   Transportation and Storage         5,206       5,187          19      12,423      12,357          66
   Other                             11,421       9,136       2,285      22,160      12,299       9,861
                                  ---------   ---------   ---------   ---------   ---------   ---------
 Total Operating Revenues           373,511     204,116     169,395     623,430     368,443     254,987
                                  ---------   ---------   ---------   ---------   ---------   ---------

 Operating Costs and Expenses:
   Gas Purchases and Other Costs
     of Sales                       357,570     190,072     167,498     583,359     333,786     249,573
   Operations and Maintenance        11,197      10,650         547      22,392      21,067       1,325
   Depreciation and Amortization        717         616         101       1,393       1,203         190
   Taxes, Other Than Income
     Taxes                              930         665         265       1,859       1,287         572
                                  ---------   ---------   ---------   ---------   ---------   ---------
 Total Operating Expenses           370,414     202,003     168,411     609,003     357,343     251,660
                                  ---------   ---------   ---------   ---------   ---------   ---------

 Operating Income Before
   Corporate Costs                $   3,097   $   2,113   $     984   $  14,427   $  11,100   $   3,327
                                  =========   =========   =========   =========   =========   =========
 Systems Throughput (Trillion
   Btus)                              170.7       142.2        28.5       314.9       287.7        27.2
                                  =========   =========   =========   =========   =========   =========
</TABLE>


KMTP's operating income before corporate costs increased by  $1.0
million  (46.6%)  in the second quarter of 2000 from  the  second
quarter  of 1999.  Operating results were positively impacted  in
2000,  relative  to  1999, by (i) increased  throughput  volumes,
principally  due  to  additional gas  sales  and  (ii)  increased
natural  gas liquids

<PAGE> 28

revenues  resulting  from an increase  in  the average  price  of
natural  gas liquids from $0.28 per  gallon in 1999 to  $0.44 per
gallon in 2000.  These positive affects  were partially offset by
(i) reduced natural gas liquids sales volumes and  (ii) increased
operating  expenses  mainly due  to  additional  plant turnaround
and chemical costs.

KMTP's operating income before corporate costs increased by  $3.3
million  (30.0%) in the six months ended June 30, 2000, over  the
corresponding period in 1999.  Year-to-date results were affected
principally by the same factors affecting the second quarter,  as
discussed preceding, except that on a year-to-date basis, natural
gas  liquids  volumes  were higher in 2000  than  in  1999.   The
increased volumes in 2000 were due to the fact that no processing
was done at the Shell Central plant in January and February 1999.

In  March 2000, Kinder Morgan announced that Kinder Morgan  Texas
Pipeline  had  (i)  renewed its natural  gas  and  transportation
contract  with  Reliant Energy HL&P (the electric  utility  which
serves  the  greater  Houston, Texas metropolitan  area)  through
March 1, 2004 and (ii) entered into a new transportation services
agreement  with  Reliant  Energy  HL&P  beginning  in  2002   and
extending  through  2012.   Reliant  Energy,  as  a  consolidated
enterprise (which includes, in addition to HL&P, Entex - the  gas
distribution  utility which serves the Houston Texas metropolitan
area),  constitutes  KMTP's (and Kinder  Morgan  Inc.'s)  largest
customer.   See  Note  19  of  Notes  to  Consolidated  Financial
Statements included in Kinder Morgan's 1999 Annual Report on Form
10-K.

In  July  2000,  KMTP announced that it had entered  into  a  new
natural  gas sales and transportation agreement with  Calpine,  a
fully  integrated electric power company.  Under this  agreement,
KMTP  will  supply  Calpine's Pasadena II gas-fired  cogeneration
facility  in  Texas with 60,000 MMBtu of natural gas  per  day  -
about  75  percent of the amount of natural gas  the  plant  will
burn.   The  contract will continue through the summer  of  2002.
KMTP  currently supplies 100 percent of the natural  gas  Calpine
burns at its Pasadena I plant.

<TABLE>
<CAPTION>
                                     Three Months Ended June 30,          Six Months Ended June 30,
                                   --------------------------------    --------------------------------
                                                           Increase                            Increase
 Power and Other                     2000        1999     (Decrease)     2000        1999     (Decrease)
 ---------------                    ------      ------    ----------    ------      ------    ----------
                                                 (In Thousands Except Systems Throughput)

<S>                               <C>         <C>         <C>         <C>         <C>         <C>
 Operating Revenues               $  19,341   $  15,904   $   3,437   $  33,517   $  31,030   $   2,487
                                  ---------   ---------   ---------   ---------   ---------   ---------

 Operating Costs and Expenses:
   Gas Purchases and Other Costs
     of Sales                         3,910       3,075         835       5,652       6,750      (1,098)
   Operations and Maintenance         4,292       3,958         334       8,705       6,976       1,729
   Depreciation and Amortization      2,209       1,861         348       4,287       3,760         527
   Taxes, Other Than Income
     Taxes                              275         204          71         596         444         152
                                  ---------   ---------   ---------   ---------   ---------   ---------
 Total Operating Expenses            10,686       9,098       1,588      19,240      17,930       1,310
                                  ---------   ---------   ---------   ---------   ---------   ---------

 Operating Income Before
   Corporate Costs                $   8,655   $   6,806   $   1,849   $  14,277   $  13,100   $   1,177
                                  =========   =========   =========   =========   =========   =========

</TABLE>


Power and Other operating income before corporate costs increased
by  $1.8  million (27.2%) in the second quarter of 2000 from  the
second  quarter  of  1999.   Operating  results  were  positively
impacted in 2000, relative to 1999, by (i) 2.8 million of second-
quarter  profits  from  development of  a  550-megawatt  electric
generating plant near Little Rock, Arkansas (see  the  discussion
following),  (ii) reduced Power  operating expenses and (iii) in-
creased   earnings  from  other  activities,  principally  Kinder
Morgan's agreement with HS Resources, Inc. as described in Kinder
Morgan's 1999 Annual Report on Form 10-K.  These positive effects
were  partially  offset  by (i) increased fuel  costs  for  power
generation,  (ii) reduced electricity sales prices and (iii)  de-
creased  earnings  from certain  telecommunications  assets  used
primarily by internal business segments.

<PAGE> 29

Power and Other operating income before corporate costs increased
by  $1.2  million (9.0%) in the six months ended June  30,  2000,
over the corresponding period in 1999.  Year-to-date results were
affected  principally  by the same factors affecting  the  second
quarter, as discussed preceding.

In  May 2000, Kinder Morgan and Southern Energy, Inc., a unit  of
Southern   Company,  announced  plans  to  build  a  550-megawatt
electric   power  plant  southeast  of  Little  Rock,   Arkansas.
Construction  on  the  $250 million plant began  this  summer  in
Pulaski County, with the plant scheduled to begin producing power
by  the second quarter of 2002.  The natural gas-fired generating
station  will  be the first in a series of electric power  plants
Kinder  Morgan  plans to build using its proprietary  Orion  con-
figuration  to  help meet the nation's growing demand  for  elec-
tricity.  The  Orion technology  combines  the  operational flex-
ibility  and responsiveness of a simple-cycle peaking  plant with
the  fuel efficiency of combined-cycle  technology.   This allows
the  plants  to  be started and stopped quickly,  enabling  rapid
response  to changes in the marketplace. Gas transportation  ser-
vice  for  the plant will  be  provided by NGPL.  As part of  the
agreement, Kinder Morgan Power is receiving a development fee and
profit from turn-key construction  of the plant,  which  will  be
recorded as revenue  over  the  two-year construction period.

In  August  2000,  Kinder Morgan Power Company,  a  wholly  owned
subsidiary  of  Kinder Morgan, announced plans to  build  a  550-
megawatt   electric  power  plant  in  Jackson,  Michigan.    All
necessary  regulatory permits and approvals have  been  obtained,
and  construction on the $250 million natural gas-fired plant  is
scheduled  to  begin in August 2000.  The plant  is  expected  to
begin producing power in June 2002.

<TABLE>
<CAPTION>
                                     Three Months Ended June 30,          Six Months Ended June 30,
                                   --------------------------------    --------------------------------
                                                           Increase                            Increase
 Other Income and (Deductions)       2000        1999     (Decrease)     2000        1999     (Decrease)
 -----------------------------      ------      ------    ----------    ------      ------    ----------
                                                              (In Thousands)
<S>                               <C>         <C>         <C>         <C>         <C>         <C>
 Kinder Morgan Energy Partners:
   Equity in Earnings             $  35,142   $       -   $  35,142   $  64,725   $       -   $  64,725
   Amortization of Excess
     Investment                      (6,862)          -      (6,862)    (14,439)          -     (14,439)
 Equity in Earnings of Other
   Equity Investments                (2,717)      3,956      (6,673)     (5,616)     10,529     (16,145)
 Interest Expense                   (62,470)    (62,896)        426    (122,869)   (125,813)      2,944
 Minority Interests                  (6,072)     (6,585)        513     (12,037)    (12,564)        527
 Other, Net                             892      18,436     (17,544)     10,564      19,793      (9,229)
                                  ---------   ---------   ---------   ---------   ---------   ---------
 Total Other Income (Deductions)  $ (42,087)  $ (47,089)  $   5,002   $ (79,672)  $(108,055)  $  28,383
                                  =========   =========   =========   =========   =========   =========
</TABLE>


The  equity  in  earnings of Kinder Morgan  Energy  Partners  and
associated  amortization  during 2000 reflect  the  October  1999
acquisition  of  Kinder  Morgan  Delaware,  see  Note  2  of  the
accompanying  Notes  to Consolidated Financial  Statements.   For
additional  information regarding the results  of  operations  of
Kinder  Morgan Energy Partners, the reader is directed to  Kinder
Morgan  Energy Partners' quarterly report on Form  10-Q  for  the
period ended June 30, 2000.

The  decrease in "Equity in Earnings of Other Equity Investments"
from the second quarter of 1999 to the second quarter of 2000 and
from the first six months of 1999 to the first six months of 2000
is  principally  due to the sale of various equity method invest-
ments,  see  Note  5  of the accompanying Notes  to  Consolidated
Financial Statements. In addition, 2000 results reflect increased
losses from the TransColorado pipeline joint venture.

"Other,  Net" in the second quarter of 2000 principally  consists
of  miscellaneous  gains from asset sales.   Second-quarter  1999
"Other,  Net" included (i) a $17.5 million gain from the sale  of
certain offshore assets and (ii) dividend income associated  with
the  preferred  stock of Tom Brown, Inc., which was sold  in  the
third quarter of

<PAGE> 30

1999.  For  additional information with respect  to  these sales,
see  Note  5 of the accompanying Notes to Consolidated  Financial
Statements.

 "Other, Net" for the six months ended June 30, 2000 includes (i)
$4.1  million due to the recovery of note receivable proceeds  in
excess  of its carrying value, (ii) $3.9 million attributable  to
the  settlement  of a regulatory matter for an amount  less  than
that  previously reserved, see "Regulatory Matters,"  (iii)  $1.3
million  attributable  to a gain from the sale of common stock of
Tom Brown,  Inc. and (iv) miscellaneous gains from  the  sale  of
assets.   "Other,  Net" for the six months ended  June  30,  1999
includes  a $17.5 million gain from the sale of certain  offshore
assets  and  dividend income from preferred stock of  Tom  Brown,
Inc.  sold  during  the third quarter of 1999, in  each  case  as
discussed preceding.

<TABLE>
<CAPTION>
                                 Three Months Ended                   Six Months Ended
                                       June 30,                            June 30,
 Income Taxes From Continuing  ----------------------------------  ----------------------------------
 ----------------------------                           Increase                            Increase
   Operations                     2000        1999     (Decrease)     2000        1999     (Decrease)
   ----------                    ------      ------    ----------    ------      ------    ----------
                                                           (In Thousands)

<S>                            <C>         <C>         <C>         <C>         <C>         <C>
 Income Tax Provision          $  16,560   $   7,914   $   8,646   $  47,287   $  23,200   $  24,087
                               =========   =========   =========   =========   =========   =========

 Effective Tax Rate                 40.0%       39.0%        1.0%       40.0%       39.0%        1.0%
                               =========   =========   =========   =========   =========   =========
</TABLE>


The increase of $8.6 million in the income tax provision from the
second  quarter of 1999 to the second quarter of 2000 is composed
of (i) an increase of $8.2 million attributable to an increase in
pre-tax  income and (ii) an increase of $0.4 million attributable
to  an  increase in the effective tax rate in 2000.  The increase
of  $24.1 million in the income tax provision from the first  six
months of 1999 to the first six months of 2000 is composed of (i)
an  increase of $22.9 million attributable to an increase in pre-
tax  income and (ii) an increase of $1.2 million attributable  to
an increase in the effective tax rate in 2000.  In each case, the
increase  in  the  effective tax rate is principally  due  to  an
increased provision for state income taxes.

Discontinued Operations
-----------------------

During the third quarter of 1999, Kinder Morgan adopted a plan to
discontinue  the  direct  marketing of  non-energy  products  and
services  (principally  under the "Simple Choice"  brand),  which
activities  had  been carried on largely through Kinder  Morgan's
en*able joint venture with PacifiCorp.  During the fourth quarter
of   1999,  Kinder  Morgan  adopted  and  implemented  plans   to
discontinue  the  following  lines  of  business:  gathering  and
processing  natural gas and providing field services  to  natural
gas producers, commodity marketing of natural gas and natural gas
liquids,  international  operations  and  West  Texas  intrastate
pipelines.

As further described in Note 6 of Notes to Consolidated Financial
Statements included in Kinder Morgan's 1999 Annual Report on Form
10-K,  as of December 31, 1999, in accordance with the provisions
of  Accounting Principles Board Opinion No.  30, " Reporting  the
Results  of Operations - Reporting the Effects of Disposal  of  a
Segment  of  a  Business,  and  Extraordinary,  Unusual  and  In-
frequently  Occurring Events and Transactions," Kinder Morgan (i)
reclassified  its  consolidated financial statements  to  reflect
these businesses as discontinued operations and (ii) recorded  an
estimate  of  the loss expected to result from the discontinuance
and  disposal  of these businesses, including both the  estimated
losses  to  be  incurred  upon sale and the  estimated  operating
losses  to  be  incurred prior to the projected  disposal  dates.
This  total estimated loss is subject to uncertainty with respect
to  the ultimate proceeds to be received from the sale and  oper-
ation of these assets (among other factors) and, accordingly, the
actual  loss may differ materially from the estimate recorded  as
of December 31, 1999.

<PAGE> 31

Any  such difference will be recognized in the period in which it
is  reasonably estimable and classified in the same manner as the
original estimated loss.

The  reader  is directed to Note 6 of the accompanying  Notes  to
Consolidated Financial Statements for (i) information  concerning
the  status of disposition efforts with respect to these  assets,
(ii)  certain  financial information with respect to discontinued
operations  and  (iii)  Kinder Morgan's remaining  investment  in
these businesses.

Liquidity and Capital Resources
-------------------------------

The  following  table illustrates the sources of Kinder  Morgan's
invested  capital.   The  balances  at  December  31,  1998,  and
subsequent  reflect the incremental capital associated  with  the
acquisition  of  MidCon  Corp.,  including  the  post-acquisition
refinancings  completed in 1998.  The balances  at  December  31,
1999  and June 30, 2000 also reflect the impacts associated  with
the acquisition of Kinder Morgan Delaware and the sale of certain
assets   to   Kinder  Morgan  Energy  Partners  (for   additional
information  on  these transactions, see Notes 2  and  5  of  the
accompanying Notes to Consolidated Financial Statements).

<TABLE>
<CAPTION>
                                                                 December 31,
                               June 30,      ----------------------------------------------------
                                 2000           1999            1998          1997         1996
                                ------         ------          ------        ------       ------
                                                     (Dollars in Thousands)
<S>                           <C>            <C>            <C>           <C>          <C>
Long-term Debt                $3,292,852     $3,293,326     $3,300,025    $  553,816   $  423,676
Common Equity                  1,718,287      1,665,841      1,216,821       606,132      519,794
Preferred Stock                        -              -          7,000         7,000        7,000
Capital Trust Securities         275,000        275,000        275,000       100,000            -
                              ----------     ----------     ----------    ----------   ----------
  Capitalization               5,286,139      5,234,167      4,798,846     1,266,948      950,470
Short-Term Debt                  299,667        581,567      1,702,013(1)    359,951      156,271
                              ----------     ----------     ----------    ----------   ----------
  Invested Capital            $5,585,806     $5,815,734     $6,500,859    $1,626,899   $1,106,741
                              ==========     ==========     ==========    ==========   ==========
Capitalization:
---------------
  Long-term Debt                   62.3%          62.9%          68.8%         43.7%        44.6%
  Common Equity                    32.5%          31.8%          25.4%         47.8%        54.7%
  Preferred Stock                     -              -            0.1%          0.6%         0.7%
  Capital Trust Securities          5.2%           5.3%           5.7%          7.9%           -

Invested Capital:
-----------------
Total Debt                         64.3%          66.6%          76.9%         56.2%        52.4%
Equity, Including Capital
  Trust Securities                 35.7%          33.4%          23.1%         43.8%        47.6%

(1)   Includes   the  $1,394,846  Substitute  Note   assumed   in
conjunction with the acquisition of MidCon Corp., which note  was
repaid in January 1999.

</TABLE>

As discussed in Note 5 to the accompanying consolidated financial
statements,  in April 2000, Kinder Morgan Energy Partners  issued
4.5 million limited partnership units in a public offering.  None
of  these  units were acquired by Kinder Morgan and, accordingly,
Kinder  Morgan's  percentage ownership of  Kinder  Morgan  Energy
Partners was reduced by approximately 1.3 percent.  In accordance
with the policy described in Note 3 of the accompanying Notes  to
Consolidated   Financial  Statements,   various   balance   sheet
accounts, including paid-in-capital, were also affected.

Kinder   Morgan   Energy  Partners  has  adopted  an   aggressive
acquisition  strategy and it is expected that future acquisitions
will  be  financed,  in part, by issuance of  additional  limited
partner  units.   Therefore, it is expected that  future  similar
transactions will occur.  Nevertheless, because (i) it is  Kinder
Morgan  Energy Partners' policy that such acquisitions be  accre-
tive  to  cash flow per common unit, (ii) the general partner in-
terest  is not diluted by such transactions and (iii) for a given
level of cash distribution, the incentive  distribution structure

<PAGE> 32

results in relatively larger distributions to the general partner
as  the number of limited units outstanding increases, it is  not
anticipated that additional  transactions will collectively  have
an adverse affect on cash flows or earnings from this investment.

CASH FLOWS
----------

The  following  discussion  of  cash  flows  should  be  read  in
conjunction  with the Statements of Consolidated Cash  Flows  and
related supplemental information included in Kinder Morgan's 1999
Annual  Report  on  Form  10-K and the accompanying  Consolidated
Statements  of  Cash  Flows, including the  related  supplemental
disclosures.

Net Cash Flows from Operating Activities
----------------------------------------

"Net  Cash  Flows  Provided  by (Used in)  Operating  Activities"
decreased from a source of $66.9 million for the six months ended
June  30, 1999 to a use of $48.0 million for the six months ended
June  30,  2000,  a decline of $114.9 million.  This  decline  is
primarily  due to an increase in cash flows used for discontinued
operations, which increased from a source of $93.6 million in the
first  six months of 1999 to a use of $115.5 million in the first
six  months  of  2000,  a $209.1 million increased  use  of  cash
reflecting (i) $124.9 million of cash outflow attributable to the
reduced  utilization of Kinder Morgan's receivable sale  program,
see "Net Cash Flows from Financing Activities" following and (ii)
a  $63.9  million source of cash in the first six months of  2000
for discontinued operations working capital items, compared to  a
$125.0  million source of cash in the first six months  of  1999.
This  decline  in  cash  provided by working  capital  items  for
discontinued  operations  principally  reflected  decreased  cash
provided from the net of accounts receivable and accounts payable
during the first six months of 2000, over and above the effect of
the  receivable  sales program.  The decline in "Net  Cash  Flows
Provided  by  (Used  in) Operating Activities"  for  discontinued
operations  was  partially offset by an increase  in  cash  flows
provided by continuing operations, which increased from a use  of
$26.7  million for the six months ended June 30, 1999 to a source
of  $67.5  million for the six months ended June 30, 2000.   This
$94.2  million of increased cash is primarily due  to  (i)  $47.3
million of cash distributions received in the first six months of
2000  attributable to Kinder Morgan's interest in  Kinder  Morgan
Energy  Partners,  see  Note  2  of  the  accompanying  Notes  to
Consolidated  Financial Statements and the discussion  following,
(ii)  a  decrease in cash used for the net of accounts receivable
and  accounts  payable during the first six months  of  2000  and
(iii) a decrease in cash used in the first six months of 2000  to
make  interest  payments  reflecting the decreased  average  debt
balance  outstanding.  Partially offsetting  this  increase  were
January  2000 payments associated with December 1999  gas  supply
purchases.

In  general, distributions from Kinder Morgan Energy Partners are
declared  in the month following the end of the quarter to  which
they  apply  and  are paid in the month following  the  month  of
declaration to the general partner and unit holders of record  as
of the end of the declaration month.  Therefore, the accompanying
Statement  of  Consolidated Cash Flows for the six  months  ended
June 30, 2000 reflects the receipt of a total of $47.3 million of
cash  distributions from Kinder Morgan Energy  Partners  for  the
fourth  quarter of 1999 and the first quarter of 2000.  The  cash
distributions  attributable to Kinder Morgan's interest  for  the
three  months  and  six months ended June 30,  2000  total  $37.0
million  and  $68.4  million,  respectively.   The  increase   in
distributions  during  2000 reflects, among  other  factors,  the
December  31,  1999  transfer of certain properties  from  Kinder
Morgan  to  Kinder  Morgan Energy Partners, see  Note  5  of  the
accompanying Notes to Consolidated Financial Statements.

<PAGE> 33

Net Cash Flows from Investing Activities
----------------------------------------

"Net  Cash Flows Provided by Investing Activities" decreased from
$1.0  billion  for the six months ended June 30, 1999  to  $384.5
million  for  the six months ended June 30, 2000,  a  decline  of
$664.1 million principally due to the sale of approximately  $1.1
billion  of government securities during the first six months  of
1999,  with  the  proceeds utilized to repay the Substitute  Note
assumed  in  conjunction  with the January  1998  acquisition  of
MidCon   Corp.,  see  "Cash  Flows  From  Financing   Activities"
following   and  Note  2  of  Notes  to  Consolidated   Financial
Statements included in Kinder Morgan's 1999 Annual Report on Form
10-K.  Partially offsetting this decrease was (i) $330 million of
cash  received during the first six months of 2000 from the  sale
of certain interests to Kinder Morgan Energy Partners, see Note 5
of  the  accompanying Notes to Consolidated Financial  Statements
and   (ii)   cash  flows  of  discontinued  investing  activities
increasing from a use of $29.1 million in the first six months of
1999  to  a  source of $129.4 million in the first six months  of
2000,  which primarily consists of the $163.9 million of proceeds
received  from  ONEOK  for the sale of gathering  and  processing
businesses in Oklahoma, Kansas and West Texas, see Note 6 of  the
accompanying Notes to Consolidated Financial Statements.   Kinder
Morgan  is  in the process of monetizing its remaining investment
in   Discontinued   businesses,  see  "Discontinued   Operations"
elsewhere herein.

Net Cash Flows from Financing Activities
----------------------------------------

"Net  Cash  Flows  Used in Financing Activities"  decreased  from
approximately $1.1 billion for the six months ended June 30, 1999
to  $335.5  million for the six months ended  June  30,  2000,  a
decline  of  approximately  $765.8 million.   This  decrease  was
principally due to the first-quarter 1999 repayment of the  $1.39
billion Substitute Note as discussed preceding, partially  offset
by  increased  short-term borrowings during the same  period,  as
well  as  reduced cash payments for dividends in 2000.  Partially
offsetting  these  effects  were increased  2000  cash  used  for
miscellaneous financing activities.

As  further  discussed  in Note 10 of the accompanying  Notes  to
Consolidated  Financial  Statements,  Kinder  Morgan's  principal
sources of short-term liquidity are its revolving bank facilities
totaling  $950  million.   At June 30, 2000,  Kinder  Morgan  had
$292.5  million of commercial paper (which is backed by the  bank
facilities)  issued  and outstanding.  The  corresponding  amount
outstanding  was  $246.6  million  at  August  1,  2000.    After
inclusion   of  applicable  letters  of  credit,  the   remaining
available borrowing capacity under the bank facilities was $639.2
million  and 685.1 million at June 30, 2000 and August  1,  2000,
respectively.  As described in Kinder Morgan's 1999 Annual Report
on  Form 10-K, Kinder Morgan's bank facilities and certain of its
operating lease arrangements contain covenants related to  Kinder
Morgan's ratio of debt to total capitalization, consolidated  net
worth   and   debt   ratings.   For  additional  information   on
utilization  of these facilities, see Note 10 of the accompanying
Notes to Consolidated Financial Statements.

As  more fully discussed in Kinder Morgan's 1999 Annual Report on
Form  10-K,  in  September  1999,  Kinder  Morgan  established  a
receivables  sales facility that provided up to $150  million  of
additional   liquidity.   In  accordance  with  this   agreement,
proceeds of $150 million were received on September 30, 1999.  In
accordance  with authoritative accounting guidelines, cash  flows
associated with this facility are included with "Cash flows  from
Operating Activities" in the accompanying Consolidated Statements
of  Cash  Flows.   In  February 2000, Kinder Morgan  reduced  its
participation in this receivable sales program by $124.9 million,
principally  as a result of its then-pending disposition  of  its
wholesale  gas marketing business, see Note 7 of the accompanying
Notes  to Consolidated Financial Statements.  On April 25,  2000,
Kinder  Morgan  repaid the residual balance  and  terminated  the
agreement.

<PAGE> 34

Regulatory Matters
------------------

On May 10, 2000, Chesapeake Panhandle Limited Partnership filed a
complaint  with  the  FERC against Natural, MidCon  Gas  Products
Corp.,  MidCon Gas Services Corp., K N Energy,  Inc.  and  Kinder
Morgan.  The complaint alleges that Natural collected an unlawful
gathering rate from Chesapeake for the period March 1998  through
December  1999.   Chesapeake is seeking a  refund  totaling  $5.2
million.  Kinder Morgan has responded and denied the allegations.
On  July  27,  2000,  the  FERC  issued  an  order  commencing  a
preliminary  non-public investigation into  the  complaint.   The
Company believes it has meritorious defenses to the claim.

On March 29, 2000, Kinder Morgan announced that it had reached  a
settlement  with  the  FERC  regarding   issues  surrounding  the
interpretation  of FERC Order 497 (which governs the  conduct  of
interstate  pipelines  and  affiliated  gas  marketers  on  their
systems)  relative  to  KMIGT, Natural  and  Westar  Transmission
Company.   KMIGT  has been sold to Kinder Morgan Energy  Partners
and  Westar  has been sold to ONEOK, see Notes 4  and  5  of  the
accompanying   Notes   to   Consolidated  Financial   Statements.
Combined, Kinder Morgan agreed to pay a civil penalty and refunds
totaling $5.75 million in conjunction with the settlement,  which
also  eliminated the potential for any civil action or  prolonged
regulatory proceedings.  The matters resolved related to  periods
prior to the October 1999 K N Energy-Kinder Morgan merger and, to
some   extent,  periods  prior  to  K  N  Energy's  January  1998
acquisition  of  MidCon  Corp.  The payment  had  no  detrimental
effect  on  Kinder  Morgan's earnings due  to  the  existence  of
previously established reserves.

In  April  2000, Kinder Morgan filed appeals against 11  Nebraska
municipalities that have adopted rate ordinances prohibiting  the
collection  of  a surcharge (associated with the P-0802  contract
entered  into  in  1973)  to  recover costs  Retail  incurred  in
purchasing natural gas for its customers.  Kinder Morgan  alleges
that  these  municipalities failed to  determine  an  appropriate
overall  amount  for  Retail's rates and that the  municipalities
failed  to  follow  the appropriate process, as  set  up  by  the
Nebraska legislature, to review the P-0802 contract.  When Retail
opened  its distribution system to competitive supplies in  1998,
participating municipalities were made aware of the surcharge and
passed ordinances allowing it.

Environmental and Legal Matters
-------------------------------

See  Note  17 of the accompanying Notes to Consolidated Financial
Statements  for  information regarding  environmental  and  legal
matters.  The reader is also directed to Notes 9(A) and  9(B)  of
Notes  to  Consolidated Financial Statements of  Kinder  Morgan's
Annual Report on Form 10-K for the year ended December 31,  1999,
for  additional information on Kinder Morgan's pending litigation
and   environmental  matters.   Kinder  Morgan  believes  it  has
established adequate reserves such that the resolution of pending
litigation  and  environmental matters will not have  a  material
adverse impact on Kinder Morgan's business, cash flows, financial
position or results of operations.

Business Strategy
-----------------

The  reader is directed to Kinder Morgan's 1999 Annual Report  on
Form 10K for a discussion of business strategy.

Item 3.  Quantitative and Qualitative Disclosures about Market
         Risk

There have been no material changes in market risk exposures that
would   affect  the  quantitative  and  qualitative   disclosures
presented  as  of  December 31, 1999, in  the  "Risk  Management"
section  of  Management's Discussion

<PAGE> 35

and  Analysis  of  Financial Condition and Results  of Operations
contained  in Kinder  Morgan's Annual Report on Form 10-K for the
year ended December 31, 1999.

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

The  reader  is directed to Note 17 of the accompanying Notes  to
Consolidated Financial Statements in Part I, Item 1, which is in-
corporated herein by reference.

Item 6.  Exhibits and Reports on Form 8-K

   (A)     Exhibits

   27.1  Financial Data Schedule*

   *Included in SEC copy only.

   (B)     Reports on Form 8-K

   (1)   Current  Report  on  Form 8-K dated April 20,  2000  was
   filed pursuant to Items 2 and 7 of that form.

   Pursuant  to Item 7 of that form, Kinder Morgan disclosed that
   substantially  the same information as that required by Item 7
   (pro forma financial information) has been previously reported
   by  Kinder Morgan on its Form 10-K for the year ended December
   31, 1999.

<PAGE> 36

                            SIGNATURE


Pursuant  to  the requirements of the Securities Exchange Act  of
1934,  the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.


                                        KINDER MORGAN, INC.
                                        (Registrant)


August 14, 2000                         /s/ C. Park Shaper
                                        ----------------------------------
                                        C. Park Shaper
                                        Vice President and Chief Financial
                                        Officer(Principal Financial and
                                        Accounting Officer)


<PAGE> 37

                          EXHIBIT INDEX

 27.1   Financial Data Schedule*

 *Included in SEC copy only.