Table of Contents

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| Kansas                                                        |    | 48-0290000                          |
|---------------------------------------------------------------|--------------|-------------------------------------|
| (State or other jurisdiction ofincorporation or organization) |    | (I.R.S. EmployerIdentification No.) |

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KINDER MORGAN, INC. AND SUBSIDIARIES

|     |                                                                                        | PageNumber |
|----------|---------------------------------------------------------------------------------------------|------------|
|     | PART I.  FINANCIAL INFORMATION                                                    |       |
|     |                                                                                        |       |
| Item 1.  | Financial Statements (Unaudited)                                                            | 3          |
|     | Consolidated Statements of Income – Three and Six Months Ended June 30, 2010 and 2009 | 3          |
|     | Consolidated Balance Sheets – June 30, 2010 and December 31, 2009                     | 4          |
|     | Consolidated Statements of Cash Flows – Six Months Ended June 30, 2010 and 2009       | 5          |
|     | Notes to Consolidated Financial Statements                                                  | 6          |
|     |                                                                                        |       |
| Item 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 44         |
|     | General and Basis of Presentation                                                           | 44         |
|     | Critical Accounting Policies and Estimates                                                  | 45         |
|     | Results of Operations                                                                       | 46         |
|     | Financial Condition                                                                         | 62         |
|     | Recent Accounting Pronouncements                                                            | 67         |
|     | Information Regarding Forward-Looking Statements                                            | 67         |
|     |                                                                                        |       |
| Item 3.  | Quantitative and Qualitative Disclosures About Market Risk                                  | 69         |
|     |                                                                                        |       |
| Item 4.  | Controls and Procedures                                                                     | 69         |
|     |                                                                                        |       |
|     |                                                                                        |       |
|     |                                                                                        |       |
|     | PART II.  OTHER INFORMATION                                                       |       |
|     |                                                                                        |       |
| Item 1.  | Legal Proceedings                                                                           | 70         |
|     |                                                                                        |       |
| Item 1A. | Risk Factors                                                                                | 70         |
|     |                                                                                        |       |
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 70         |
|     |                                                                                        |       |
| Item 3.  | Defaults Upon Senior Securities                                                             | 70         |
|     |                                                                                        |       |
| Item 4.  | (Removed and Reserved)                                                                      | 70         |
|     |                                                                                        |       |
| Item 5.  | Other Information                                                                           | 70         |
|     |                                                                                        |       |
| Item 6.  | Exhibits                                                                                    | 71         |
|     |                                                                                        |       |
|     | Signature                                                                                   | 72         |

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|                                                                                      |   | Three Months EndedJune 30, |    |   | Six Months EndedJune 30, |   |
|-------------------------------------------------------------------------------------------|--------|----------------------------|---------|--------|--------------------------|--------|
|                                                                                      |   | 2010                       |    |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
| Revenues                                                                                  |   |                       |    |   |                     |   |   |   |   |   |   |   |
| Natural gas sales                                                                         |   | $                          | 848.1   |   |                     | $      | 716.9 |   |   | $ | 1,865.6 |   |   | $ | 1,605.6 |   |
| Services                                                                                  |   |                       | 751.7   |   |                     |   | 652.1 |   |   |   | 1,490.2 |   |   |   | 1,313.5 |   |
| Product sales and other                                                                   |   |                       | 391.1   |   |                     |   | 324.3 |   |   |   | 792.7 |   |   |   | 603.1 |   |
| Total Revenues                                                                            |   |                       | 1,990.9 |   |                     |   | 1,693.3 |   |   |   | 4,148.5 |   |   |   | 3,522.2 |   |
|                                                                                 |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Operating Costs, Expenses and Other                                                       |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Gas purchases and other costs of sales                                                    |   |                       | 847.9   |   |                     |   | 709.5 |   |   |   | 1,864.5 |   |   |   | 1,575.1 |   |
| Operations and maintenance                                                                |   |                       | 319.2   |   |                     |   | 273.0 |   |   |   | 773.7 |   |   |   | 529.4 |   |
| Depreciation, depletion and amortization                                                  |   |                       | 269.7   |   |                     |   | 256.8 |   |   |   | 552.0 |   |   |   | 521.6 |   |
| General and administrative                                                                |   |                       | 104.8   |   |                     |   | 84.1 |   |   |   | 220.5 |   |   |   | 177.0 |   |
| Taxes, other than income taxes                                                            |   |                       | 40.8    |   |                     |   | 23.4 |   |   |   | 86.2 |   |   |   | 62.4 |   |
| Other expense (income)                                                                    |   |                       | 3.1     |   |                     |   | (0.2 | ) |   |   | 1.8 |   |   |   | 0.1 |   |
| Total Operating Costs, Expenses and Other                                                 |   |                       | 1,585.5 |   |                     |   | 1,346.6 |   |   |   | 3,498.7 |   |   |   | 2,865.6 |   |
|                                                                                 |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Operating Income                                                                          |   |                       | 405.4   |   |                     |   | 346.7 |   |   |   | 649.8 |   |   |   | 656.6 |   |
|                                                                                 |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Other Income (Expense)                                                                    |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) from equity investments                                                   |   |                       | 60.9    |   |                     |   | 49.2 |   |   |   | (313.3 | ) |   |   | 97.8 |   |
| Amortization of excess cost of equity investments                                         |   |                       | (1.5    | )      |                     |   | (1.5 | ) |   |   | (2.9 | ) |   |   | (2.9 | ) |
| Interest, net                                                                        |   |                       | (156.4  | )      |                     |   | (139.3 | ) |   |   | (307.0 | ) |   |   | (281.3 | ) |
| Other, net                                                                                |   |                       | (2.3    | )      |                     |   | 20.3 |   |   |   | 4.3 |   |   |   | 30.9 |   |
| Total Other Income (Expense)                                                              |   |                       | (99.3   | )      |                     |   | (71.3 | ) |   |   | (618.9 | ) |   |   | (155.5 | ) |
|                                                                                 |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Income from Continuing Operations Before Income Taxes                                |   |                       | 306.1   |   |                     |   | 275.4 |   |   |   | 30.9 |   |   |   | 501.1 |   |
|                                                                                      |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Income Tax Benefit (Expense)                                                              |   |                       | (45.8   | )      |                     |   | (67.0 | ) |   |   | 49.7 |   |   |   | (147.6 | ) |
|                                                                                      |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Income from Continuing Operations                                                         |   |                       | 260.3   |   |                     |   | 208.4 |   |   |   | 80.6 |   |   |   | 353.5 |   |
|                                                                                      |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Income (Loss) from Discontinued Operations, Net of Tax |   |                       | -       |   |                     |   | 0.7 |   |   |   | (0.2 | ) |   |   | 0.5 |   |
|                                                                                      |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Net Income                                                                                |   |                       | 260.3   |   |                     |   | 209.1 |   |   |   | 80.4 |   |   |   | 354.0 |   |
|                                                                                      |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Net Income Attributable to Noncontrolling Interests                                       |   |                       | (214.3  | )      |                     |   | (79.3 | ) |   |   | (195.3 | ) |   |   | (108.9 | ) |
|                                                                                 |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss) Attributable to Kinder Morgan, Inc.                                     |   | $                          | 46.0    |   |                     | $      | 129.8 |   |   | $ | (114.9 | ) |   | $ | 245.1 |   |

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|                                                                                                                                                           |   | June 30,2010 |     |   | December 31,2009 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|----------|--------|------------------|--------|
|                                                                                                                                                           |   | (Unaudited)  |     |   |             |   |
| ASSETS                                                                                                                                                         |   |         |     |   |             |   |
| Current assets                                                                                                                                                 |   |         |     |   |             |   |
| Cash and cash equivalents                                                                                                                                      |   | $            | 144.7    |   |             | $      | 165.6 |   |
| Restricted deposits                                                                                                                                            |   |         | 61.8     |   |             |   | 52.5 |   |
| Accounts, notes and interest receivable, net                                                                                                                   |   |         | 859.8    |   |             |   | 921.6 |   |
| Inventories                                                                                                                                                    |   |         | 101.5    |   |             |   | 71.9 |   |
| Gas in underground storage                                                                                                                                     |   |         | 50.8     |   |             |   | 43.5 |   |
| Fair value of derivative contracts                                                                                                                             |   |         | 44.5     |   |             |   | 20.8 |   |
| Other current assets                                                                                                                                           |   |         | 78.9     |   |             |   | 109.7 |   |
| Total current assets                                                                                                                                           |   |         | 1,342.0  |   |             |   | 1,385.6 |   |
|                                                                                                                                                           |   |         |     |   |             |   |   |   |
| Property, plant and equipment, net                                                                                                                             |   |         | 16,858.6 |   |             |   | 16,803.5 |   |
| Investments                                                                                                                                                    |   |         | 4,271.0  |   |             |   | 3,695.6 |   |
| Notes receivable                                                                                                                                               |   |         | 188.5    |   |             |   | 190.6 |   |
| Goodwill                                                                                                                                                       |   |         | 4,802.4  |   |             |   | 4,744.3 |   |
| Other intangibles, net                                                                                                                                         |   |         | 354.5    |   |             |   | 259.8 |   |
| Fair value of derivative contracts                                                                                                                             |   |         | 588.0    |   |             |   | 293.3 |   |
| Deferred charges and other assets                                                                                                                              |   |         | 173.2    |   |             |   | 213.6 |   |
| Total Assets                                                                                                                                                   |   | $            | 28,578.2 |   |             | $      | 27,586.3 |   |
|                                                                                                                                                           |   |         |     |   |             |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                     |   |         |     |   |             |   |   |   |
| Current liabilities                                                                                                                                            |   |         |     |   |             |   |   |   |
| Current portion of debt                                                                                                                                        |   | $            | 2,466.3  |   |             | $      | 768.7 |   |
| Cash book overdrafts                                                                                                                                           |   |         | 43.8     |   |             |   | 36.6 |   |
| Accounts payable                                                                                                                                               |   |         | 583.0    |   |             |   | 620.8 |   |
| Accrued interest                                                                                                                                               |   |         | 302.3    |   |             |   | 292.1 |   |
| Accrued taxes                                                                                                                                                  |   |         | 58.2     |   |             |   | 58.6 |   |
| Deferred revenues                                                                                                                                              |   |         | 78.3     |   |             |   | 76.1 |   |
| Fair value of derivative contracts                                                                                                                             |   |         | 189.1    |   |             |   | 272.0 |   |
| Accrued other current liabilities                                                                                                                              |   |         | 189.1    |   |             |   | 194.6 |   |
| Total current liabilities                                                                                                                                      |   |         | 3,910.1  |   |             |   | 2,319.5 |   |
|                                                                                                                                                           |   |         |     |   |             |   |   |   |
| Long-term liabilities and deferred credits                                                                                                                     |   |         |     |   |             |   |   |   |
| Long-term debt                                                                                                                                                 |   |         |     |   |             |   |   |   |
| Outstanding                                                                                                                                                    |   |         | 12,305.7 |   |             |   | 12,779.7 |   |
| Preferred interest in general partner of Kinder Morgan Energy Partners, L.P.                                                                                   |   |         | 100.0    |   |             |   | 100.0 |   |
| Value of interest rate swaps                                                                                                                                   |   |         | 793.8    |   |             |   | 361.0 |   |
| Total long-term debt                                                                                                                                           |   |         | 13,199.5 |   |             |   | 13,240.7 |   |
| Deferred income taxes                                                                                                                                          |   |         | 1,893.2  |   |             |   | 2,039.9 |   |
| Fair value of derivative contracts                                                                                                                             |   |         | 150.3    |   |             |   | 469.6 |   |
| Other long-term liabilities and deferred credits                                                                                                               |   |         | 598.0    |   |             |   | 670.5 |   |
| Total long-term liabilities and deferred credits                                                                                                               |   |         | 15,841.0 |   |             |   | 16,420.7 |   |
|                                                                                                                                                           |   |         |     |   |             |   |   |   |
| Total Liabilities                                                                                                                                              |   |         | 19,751.1 |   |             |   | 18,740.2 |   |
|                                                                                                                                                           |   |         |     |   |             |   |   |   |
| Commitments and contingencies (Notes 4 and 11)                                                                                                                 |   |         |     |   |             |   |   |   |
| Stockholders’ Equity                                                                                                                                     |   |         |     |   |             |   |   |   |
| Common stock – authorized and outstanding – 100 shares, par value $0.01 per share |   |         | -        |   |             |   | - |   |
| Additional paid-in capital                                                                                                                                     |   |         | 7,863.3  |   |             |   | 7,845.7 |   |
| Retained deficit                                                                                                                                               |   |         | (3,946.3 | )      |             |   | (3,506.3 | ) |
| Accumulated other comprehensive loss                                                                                                                           |   |         | (104.6   | )      |             |   | (167.9 | ) |
| Total Kinder Morgan, Inc. stockholder’s equity                                                                                                           |   |         | 3,812.4  |   |             |   | 4,171.5 |   |
| Noncontrolling interests                                                                                                                                       |   |         | 5,014.7  |   |             |   | 4,674.6 |   |
| Total Stockholders’ Equity                                                                                                                               |   |         | 8,827.1  |   |             |   | 8,846.1 |   |
| Total Liabilities and Stockholders’ Equity                                                                                                               |   | $            | 28,578.2 |   |             | $      | 27,586.3 |   |

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|                                                                                                                                                            |   | Six Months Ended June 30, |     |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|----------|
|                                                                                                                                                            |   | 2010                                          |     |   | 2009 |   |
| Cash Flows From Operating Activities                                                                                                                            |   |                                          |     |   |   |   |
| Net Income                                                                                                                                                      |   | $                                             | 80.4     |   |   | $ | 354.0 |   |
| Adjustments to reconcile net income to net cash provided by operating activities                                                                                |   |                                          |     |   |   |   |   |   |
| (Income) loss from discontinued operations, net of tax                                                                                                          |   |                                          | 0.2      |   |   |   | (0.6 | ) |
| Depreciation, depletion and amortization                                                                                                                        |   |                                          | 552.0    |   |   |   | 521.6 |   |
| Deferred income taxes                                                                                                                                           |   |                                          | (199.0   | ) |   |   | 15.8 |   |
| Amortization of excess cost of equity investments                                                                                                               |   |                                          | 2.9      |   |   |   | 2.9 |   |
| Income from the allowance for equity funds used during construction                                                                                             |   |                                          | (0.6     | ) |   |   | (20.3 | ) |
| Loss from the sale or casualty of property, plant and equipment and other net assets      |   |                                          | 1.9      |   |   |   | 0.1 |   |
| (Earnings) loss from equity investments                                                                                                                         |   |                                          | 313.3    |   |   |   | (97.8 | ) |
| Distributions from equity investments                                                                                                                           |   |                                          | 101.9    |   |   |   | 122.7 |   |
| Proceeds from termination of interest rate swap agreements                                                                                                      |   |                                          | -        |   |   |   | 144.4 |   |
| Pension contributions in excess of expense                                                                                                                      |   |                                          | -        |   |   |   | (13.7 | ) |
| Changes in components of working capital                                                                                                                        |   |                                          |     |   |   |   |   |   |
| Accounts receivable                                                                                                                                             |   |                                          | 67.0     |   |   |   | 175.2 |   |
| Inventories                                                                                                                                                     |   |                                          | (29.7    | ) |   |   | (11.2 | ) |
| Other current assets                                                                                                                                            |   |                                          | (19.5    | ) |   |   | (73.3 | ) |
| Accounts payable                                                                                                                                                |   |                                          | (39.7    | ) |   |   | (277.2 | ) |
| Accrued interest                                                                                                                                                |   |                                          | 10.3     |   |   |   | 21.2 |   |
| Accrued taxes                                                                                                                                                   |   |                                          | 21.5     |   |   |   | (137.3 | ) |
| Accrued liabilities                                                                                                                                             |   |                                          | (42.4    | ) |   |   | (78.7 | ) |
| Rate reparations, refunds and other litigation reserve adjustments                                                                                              |   |                                          | (48.3    | ) |   |   | (15.5 | ) |
| Other, net                                                                                                                                                      |   |                                          | (36.6    | ) |   |   | (51.8 | ) |
| Cash Flows Provided By Continuing Operations                                                                                                                    |   |                                          | 735.6    |   |   |   | 580.5 |   |
| Net Cash Flows (Used in) Provided by Discontinued Operations                                                                                                    |   |                                          | (0.3     | ) |   |   | 0.3 |   |
| Net Cash Provided by Operating Activities                                                                                                                       |   |                                          | 735.3    |   |   |   | 580.8 |   |
|                                                                                                                                                            |   |                                          |     |   |   |   |   |   |
| Cash Flows From Investing Activities                                                                                                                            |   |                                          |     |   |   |   |   |   |
| Acquisitions of investments                                                                                                                                     |   |                                          | (929.7   | ) |   |   | - |   |
| Acquisitions of assets                                                                                                                                          |   |                                          | (218.1   | ) |   |   | (18.5 | ) |
| Repayments from customers                                                                                                                                       |   |                                          | -        |   |   |   | 109.6 |   |
| Capital expenditures                                                                                                                                            |   |                                          | (458.7   | ) |   |   | (794.1 | ) |
| Deconsolidation of variable interest entity due to the implementation of ASU 2009-17 (Note 13) |   |                                          | (17.5    | ) |   |   | - |   |
| Sale or casualty of property, plant and equipment, and other net assets net of removal costs                                                                    |   |                                          | 22.5     |   |   |   | (4.0 | ) |
| Investments in margin deposits                                                                                                                                  |   |                                          | (3.9     | ) |   |   | (24.9 | ) |
| Investments in restricted deposits                                                                                                                              |   |                                          | (5.3     | ) |   |   | - |   |
| Contributions to investments                                                                                                                                    |   |                                          | (181.4   | ) |   |   | (803.6 | ) |
| Distributions from equity investments in excess of cumulative earnings                                                                                          |   |                                          | 109.9    |   |   |   | 6.5 |   |
| Net Cash Used in Investing Activities                                                                                                                           |   |                                          | (1,682.2 | ) |   |   | (1,529.0 | ) |
|                                                                                                                                                            |   |                                          |     |   |   |   |   |   |
| Cash Flows From Financing Activities                                                                                                                            |   |                                          |     |   |   |   |   |   |
| Issuance of debt                                                                                                                                                |   |                                          | 5,280.5  |   |   |   | 3,857.0 |   |
| Payment of debt                                                                                                                                                 |   |                                          | (4,042.3 | ) |   |   | (2,996.5 | ) |
| Repayments from related party                                                                                                                                   |   |                                          | 1.3      |   |   |   | 2.5 |   |
| Debt issue costs                                                                                                                                                |   |                                          | (22.9    | ) |   |   | (7.4 | ) |
| Increase (decrease) in cash book overdrafts                                                                                                                     |   |                                          | 7.3      |   |   |   | (22.3 | ) |
| Cash dividends                                                                                                                                                  |   |                                          | (325.0   | ) |   |   | (150.0 | ) |
| Contributions from noncontrolling interests                                                                                                                     |   |                                          | 433.2    |   |   |   | 669.5 |   |
| Distributions to noncontrolling interests                                                                                                                       |   |                                          | (405.3   | ) |   |   | (358.6 | ) |
| Other, net                                                                                                                                                      |   |                                          | -        |   |   |   | (0.1 | ) |
| Net Cash Provided by Financing Activities                                                                                                                       |   |                                          | 926.8    |   |   |   | 994.1 |   |
|                                                                                                                                                            |   |                                          |     |   |   |   |   |   |
| Effect of Exchange Rate Changes on Cash and Cash Equivalents                                                                                                    |   |                                          | (0.8     | ) |   |   | 2.5 |   |
|                                                                                                                                                            |   |                                          |     |   |   |   |   |   |
| (Decrease) Increase in Cash and Cash Equivalents                                                                                                                |   |                                          | (20.9    | ) |   |   | 48.4 |   |
| Cash and Cash Equivalents, beginning of period                                                                                                                  |   |                                          | 165.6    |   |   |   | 118.6 |   |
| Cash and Cash Equivalents, end of period                                                                                                                        |   | $                                             | 144.7    |   |   | $ | 167.0 |   |
|                                                                                                                                                            |   |                                          |     |   |   |   |   |   |
| Noncash Investing and Financing Activities                                                                                                                      |   |                                          |     |   |   |   |   |   |
| Assets acquired by the assumption or incurrence of liabilities                                                                                                  |   | $                                             | 8.1      |   |   | $ | 3.7 |   |
| Assets acquired by contributions from noncontrolling interests                                                                                                  |   | $                                             | 81.7     |   |   | $ | 5.0 |   |
| Supplemental Disclosures of Cash Flow Information                                                                                                               |   |                                          |     |   |   |   |   |   |
| Cash paid during the period for interest (net of capitalized interest)                                                                                          |   | $                                             | 302.0    |   |   | $ | 294.0 |   |
| Cash paid during the period for income taxes (net of refunds)                                                                                                   |   | $                                             | 137.8    |   |   | $ | 277.6 |   |

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|                                       |   | ProductsPipelines–KMP |     |   | Natural GasPipelines–KMP |   |     | CO2–KMP |   |   | Terminals–KMP |   |   | KinderMorganCanada–KMP |    |   | Total  |   |
|--------------------------------------------|--------|-----------------------------|----------|--------|-------------------------------------|--------|----------|---------------|--------|--------|---------------------|--------|--------|------------------------------|---------|--------|--------|--------|
| Historical Goodwill                        |   | $                           | 2,116.5  |   |                                | $      | 3,488.0  |          |   | $      | 1,521.7             |   |   | $                            | 1,415.4 |   |   | $      | 613.1 |   |   | $ | 9,154.7 |   |
| Accumulated impairment losses.             |   |                        | (1,266.5 | )      |                                |   | (2,090.2 | )             |   |   | -                   |   |   |                         | (676.6  | )      |   |   | (377.1 | ) |   |   | (4,410.4 | ) |
| Balance as of December 31, 2009            |   |                        | 850.0    |   |                                |   | 1,397.8  |          |   |   | 1,521.7             |   |   |                         | 738.8   |   |   |   | 236.0 |   |   |   | 4,744.3 |   |
| Acquisitions and adjustments               |   |                        | -        |   |                                |   | -        |          |   |   | -                   |   |   |                         | 61.2    |   |   |   | - |   |   |   | 61.2 |   |
| Currency translation adjustments |   |                        | -        |   |                                |   | -        |          |   |   | -                   |   |   |                         | -       |   |   |   | (3.1 | ) |   |   | (3.1 | ) |
| Balance as of June 30, 2010                |   | $                           | 850.0    |   |                                | $      | 1,397.8  |          |   | $      | 1,521.7             |   |   | $                            | 800.0   |   |   | $      | 232.9 |   |   | $ | 4,802.4 |   |

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|                                                                    |   | June 30,2010 |   |   | December 31,2009 |   |
|-------------------------------------------------------------------------|--------|-------------------|--------|--------|-----------------------|--------|
| Customer relationships, contracts and agreements    |   |              |   |   |                  |   |
| Gross carrying amount                                                   |   | $                 | 417.1  |   |                  | $      | 297.9 |   |
| Accumulated amortization                                                |   |              | (75.1  | )      |                  |   | (50.9 | ) |
| Net carrying amount                                                     |   |              | 342.0  |   |                  |   | 247.0 |   |
|                                                                    |   |              |   |   |                  |   |   |   |
| Technology-based assets, lease value and other |   |              |   |   |                  |   |   |   |
| Gross carrying amount                                                   |   |              | 14.1   |   |                  |   | 14.1 |   |
| Accumulated amortization                                                |   |              | (1.6   | )      |                  |   | (1.3 | ) |
| Net carrying amount                                                     |   |              | 12.5   |   |                  |   | 12.8 |   |
|                                                                    |   |              |   |   |                  |   |   |   |
| Total other intangibles, net                                            |   | $                 | 354.5  |   |                  | $      | 259.8 |   |

----

|                                        | June 30, 2010           |
|---------------------------------------------|-------------------------|
|                                        | Short-termnotes payable |   |   | Weighted-averageinterest rate |
|                                        | (In millions)           |
| Kinder Morgan, Inc. – Secured debt(a) |                    | $ | 142.7 |   |   |   | 1.71 | % |
| KMP – Unsecured debt(b)               |                    |   |   |   |   |   |   |   |
| Credit facility                             |                    | $ | 75.0 |   |   |   | 2.10 | % |
| Commercial paper                            |                    | $ | 501.4 |   |   |   | 0.67 | % |

| (a) | The average short-term debt outstanding (and related weighted-average interest rate) was $142.4 million (1.82%) and $157.1 million (1.80%) during the three and six months ended June 30, 2010, respectively. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | The average short-term debt outstanding (and related weighted-average interest rate) was $598.7 million (0.79%) and $557.2 million (0.71%) during the three and six months ended June 30, 2010, respectively. |

----

----

----

----

|                                                                                                 |   | Three Months Ended June 30, |    |
|------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|
|                                                                                                 |   | 2010                        |    |   | 2009 |   |
|                                                                                                 |   | KinderMorgan, Inc.     |    |   | Noncontrollinginterests |   |   | Total |   |   | KinderMorgan, Inc. |   |   | Noncontrollinginterests |   |   | Total |   |
| Beginning Balance                                                                                    |   | $                           | 3,901.6 |   |   | $ | 4,546.5 |   |   | $ | 8,448.1 |   |   | $ | 4,451.3 |   |   | $ | 4,187.4 |   |   | $ | 8,638.7 |   |
| Impact from equity transactions of KMP                                      |   |                        | 11.9    |   |   |   | (18.6 | ) |   |   | (6.7 | ) |   |   | 9.3 |   |   |   | (14.5 | ) |   |   | (5.2 | ) |
| A-1 and B unit amortization                                                                          |   |                        | 1.6     |   |   |   | - |   |   |   | 1.6 |   |   |   | 1.9 |   |   |   | - |   |   |   | 1.9 |   |
| Distributions to noncontrolling interests                                                            |   |                        | -       |   |   |   | (204.4 | ) |   |   | (204.4 | ) |   |   | - |   |   |   | (183.1 | ) |   |   | (183.1 | ) |
| Contributions from noncontrolling interests                                           |   |                        | -       |   |   |   | 433.3 |   |   |   | 433.3 |   |   |   | - |   |   |   | 386.6 |   |   |   | 386.6 |   |
| Cash dividends                                                                                       |   |                        | (175.0  | ) |   |   | - |   |   |   | (175.0 | ) |   |   | (100.0 | ) |   |   | - |   |   |   | (100.0 | ) |
| Other                                                                                                |   |                        | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (0.4 | ) |   |   | (0.4 | ) |
| Comprehensive income                                                                                 |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                           |   |                        | 46.0    |   |   |   | 214.3 |   |   |   | 260.3 |   |   |   | 129.8 |   |   |   | 79.3 |   |   |   | 209.1 |   |
| Other comprehensive income (loss), net of tax                                              |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change in fair value of derivatives utilized for hedging purposes                                    |   |                        | 43.0    |   |   |   | 65.1 |   |   |   | 108.1 |   |   |   | (111.3 | ) |   |   | (153.8 | ) |   |   | (265.1 | ) |
| Reclassification of change in fair value of derivatives to net income       |   |                        | 3.9     |   |   |   | 17.9 |   |   |   | 21.8 |   |   |   | (14.4 | ) |   |   | 14.4 |   |   |   | - |   |
| Foreign currency translation adjustments                                                             |   |                        | (20.6   | ) |   |   | (39.4 | ) |   |   | (60.0 | ) |   |   | 31.4 |   |   |   | 59.7 |   |   |   | 91.1 |   |
| Adjustments to pension and other postretirement benefit plan liabilities              |   |                        | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 0.1 |   |   |   | 0.1 |   |
| Total other comprehensive income (loss)                                                              |   |                        | 26.3    |   |   |   | 43.6 |   |   |   | 69.9 |   |   |   | (94.3 | ) |   |   | (79.6 | ) |   |   | (173.9 | ) |
| Total comprehensive income (loss)                                                                    |   |                        | 72.3    |   |   |   | 257.9 |   |   |   | 330.2 |   |   |   | 35.5 |   |   |   | (0.3 | ) |   |   | 35.2 |   |
| Ending Balance                                                                                       |   | $                           | 3,812.4 |   |   | $ | 5,014.7 |   |   | $ | 8,827.1 |   |   | $ | 4,398.0 |   |   | $ | 4,375.7 |   |   | $ | 8,773.7 |   |
|                                                                                                 |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Tax Expense) Tax Benefit Included in Other Comprehensive Income (Loss):                             |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change in fair value of derivatives utilized for hedging purposes |   | $                           | (34.0   | ) |   | $ | (7.1 | ) |   | $ | (41.1 | ) |   | $ | 65.8 |   |   | $ | 17.0 |   |   | $ | 82.8 |   |
| Reclassification of change in fair value of derivatives to net income                                |   |                        | (3.7    | ) |   |   | (2.0 | ) |   |   | (5.7 | ) |   |   | 5.8 |   |   |   | (1.4 | ) |   |   | 4.4 |   |
| Foreign currency translation adjustments                                                             |   |                        | 15.6    |   |   |   | 4.2 |   |   |   | 19.8 |   |   |   | (26.9 | ) |   |   | (6.1 | ) |   |   | (33.0 | ) |
| Adjustments to pension and other postretirement benefit plan liabilities                   |   |                        | -       |   |   |   | - |   |   |   | - |   |   |   | (0.1 | ) |   |   | (0.1 | ) |   |   | (0.2 | ) |
| Tax included in total other comprehensive income (loss)                     |   | $                           | (22.1   | ) |   | $ | (4.9 | ) |   | $ | (27.0 | ) |   | $ | 44.6 |   |   | $ | 9.4 |   |   | $ | 54.0 |   |

----

|                                                                                                 |   | Six Months Ended June 30, |    |
|------------------------------------------------------------------------------------------------------|--------|---------------------------|---------|
|                                                                                                 |   | 2010                      |    |   | 2009 |   |
|                                                                                                 |   | KinderMorgan, Inc.   |    |   | Noncontrollinginterests |   |   | Total |   |   | KinderMorgan, Inc. |   |   | Noncontrollinginterests |   |   | Total |   |
| Beginning Balance                                                                                    |   | $                         | 4,171.5 |   |   | $ | 4,674.6 |   |   | $ | 8,846.1 |   |   | $ | 4,404.3 |   |   | $ | 4,072.6 |   |   | $ | 8,476.9 |   |
| Impact from equity transactions of KMP                                      |   |                      | 14.0    |   |   |   | (22.0 | ) |   |   | (8.0 | ) |   |   | 15.8 |   |   |   | (24.6 | ) |   |   | (8.8 | ) |
| A-1 and B unit amortization                                                                          |   |                      | 3.5     |   |   |   | - |   |   |   | 3.5 |   |   |   | 3.8 |   |   |   | - |   |   |   | 3.8 |   |
| Distributions to noncontrolling interests                                                            |   |                      | -       |   |   |   | (405.2 | ) |   |   | (405.2 | ) |   |   | - |   |   |   | (359.4 | ) |   |   | (359.4 | ) |
| Contributions from noncontrolling interests                                           |   |                      | -       |   |   |   | 515.0 |   |   |   | 515.0 |   |   |   | - |   |   |   | 674.5 |   |   |   | 674.5 |   |
| Implementation of Accounting Standards Update 2009-17(a)                              |   |                      | -       |   |   |   | (45.9 | ) |   |   | (45.9 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Cash dividends                                                                                       |   |                      | (325.0  | ) |   |   | - |   |   |   | (325.0 | ) |   |   | (150.0 | ) |   |   | - |   |   |   | (150.0 | ) |
| Other                                                                                                |   |                      | -       |   |   |   | 0.1 |   |   |   | 0.1 |   |   |   | - |   |   |   | 2.3 |   |   |   | 2.3 |   |
| Comprehensive income                                                                                 |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                                                                    |   |                      | (114.9  | ) |   |   | 195.3 |   |   |   | 80.4 |   |   |   | 245.1 |   |   |   | 108.9 |   |   |   | 354.0 |   |
| Other comprehensive income (loss), net of tax                                              |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change in fair value of derivatives utilized for hedging purposes                                    |   |                      | 58.6    |   |   |   | 76.4 |   |   |   | 135.0 |   |   |   | (95.4 | ) |   |   | (136.3 | ) |   |   | (231.7 | ) |
| Reclassification of change in fair value of derivatives to net income       |   |                      | 8.0     |   |   |   | 39.6 |   |   |   | 47.6 |   |   |   | (34.9 | ) |   |   | 6.0 |   |   |   | (28.9 | ) |
| Foreign currency translation adjustments                                                             |   |                      | (2.5    | ) |   |   | (12.1 | ) |   |   | (14.6 | ) |   |   | 10.2 |   |   |   | 33.0 |   |   |   | 43.2 |   |
| Adjustments to pension and other postretirement benefit plan liabilities              |   |                      | (0.8    | ) |   |   | (1.1 | ) |   |   | (1.9 | ) |   |   | (0.9 | ) |   |   | (1.3 | ) |   |   | (2.2 | ) |
| Total other comprehensive income (loss)                                                              |   |                      | 63.3    |   |   |   | 102.8 |   |   |   | 166.1 |   |   |   | (121.0 | ) |   |   | (98.6 | ) |   |   | (219.6 | ) |
| Total comprehensive income (loss)                                                                    |   |                      | (51.6   | ) |   |   | 298.1 |   |   |   | 246.5 |   |   |   | 124.1 |   |   |   | 10.3 |   |   |   | 134.4 |   |
| Ending Balance                                                                                       |   | $                         | 3,812.4 |   |   | $ | 5,014.7 |   |   | $ | 8,827.1 |   |   | $ | 4,398.0 |   |   | $ | 4,375.7 |   |   | $ | 8,773.7 |   |
|                                                                                                 |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Tax Expense) Tax Benefit Included in Other Comprehensive Income (Loss):                             |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change in fair value of derivatives utilized for hedging purposes |   | $                         | (44.3   | ) |   | $ | (8.3 | ) |   | $ | (52.6 | ) |   | $ | 55.6 |   |   | $ | 15.4 |   |   | $ | 71.0 |   |
| Reclassification of change in fair value of derivatives to net income                                |   |                      | (6.5    | ) |   |   | (4.3 | ) |   |   | (10.8 | ) |   |   | 19.0 |   |   |   | (0.7 | ) |   |   | 18.3 |   |
| Foreign currency translation adjustments                                                             |   |                      | 3.0     |   |   |   | 1.3 |   |   |   | 4.3 |   |   |   | (14.3 | ) |   |   | (3.7 | ) |   |   | (18.0 | ) |
| Adjustments to pension and other postretirement benefit plan liabilities                   |   |                      | 0.6     |   |   |   | 0.1 |   |   |   | 0.7 |   |   |   | 0.6 |   |   |   | 0.1 |   |   |   | 0.7 |   |
| Tax included in total other comprehensive income (loss)                     |   | $                         | (47.2   | ) |   | $ | (11.2 | ) |   | $ | (58.4 | ) |   | $ | 60.9 |   |   | $ | 11.1 |   |   | $ | 72.0 |   |

| (a) | Upon the adoption of Accounting Standards Update No. 2009-17, which amended the codification’s “Consolidation” topic, on January 1, 2010, Triton Power Company LLC is no longer consolidated into our financial statements, but is treated as an equity investment (see Note 13). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                        |   | June 30,2010 |    |   | December 31,2009 |   |
|-----------------------------|--------|--------------|---------|--------|------------------|--------|
| KMP                         |   | $            | 3,073.8 |   |             | $      | 2,746.4 |   |
| KMR                         |   |         | 1,929.5 |   |             |   | 1,870.7 |   |
| Triton Power Company LLC(a) |   |         | -       |   |             |   | 45.9 |   |
| Other                       |   |         | 11.4    |   |             |   | 11.6 |   |
|                        |   | $            | 5,014.7 |   |             | $      | 4,674.6 |   |

| (a) | Upon the adoption of Accounting Standards Update No. 2009-17, which amended the codification’s “Consolidation” topic, on January 1, 2010, Triton Power Company LLC is no longer consolidated into our financial statements, but is treated as an equity investment (see Note 13). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                            | Net open positionlong/(short) |
|-------------------------------------------------|-------------------------------|
| Derivatives designated as hedging contracts     |                          |
| Crude oil                                       | (22.2) million barrels        |
| Natural gas fixed price                         | (34.3) billion cubic feet     |
| Natural gas basis                               | (28.1) billion cubic feet     |
| Derivatives not designated as hedging contracts |                          |
| Natural gas fixed price                         | (0.2) billion cubic feet      |
| Natural gas basis                               |  0.8 billion cubic feet  |

----

|                                                                     | Asset derivatives          |   |                        | Liability derivatives |
|--------------------------------------------------------------------------|----------------------------|--------|-----------------------------|-----------------------|
|                                                                     | June 30, 2010    |   | December 31, 2009 |                  |   | June 30, 2010 |   | December 31, 2009 |
|                                                                     | Balance sheetlocation |   | Fairvalue                   |                  | Balance sheetlocation |   | Fairvalue |   |   | Balance sheetlocation |   | Fairvalue |   | Balance sheetlocation |   | Fairvalue |
|                                                                     |                       |   |                        |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives designated as hedging contracts          |                       |   |                        |                  |   |   |   |   |   |   |   |
| Energy commodity derivative contracts                                    | Current                    |   | $                           | 36.0                  |   | Current |   | $ | 19.1 |   |   | Current |   | $ | (180.7) |   | Current |   | $ | (270.8) |
|                                                                     | Non-current                |   |                        | 84.8                  |   | Non-current |   |   | 57.3 |   |   | Non-current |   |   | (108.9) |   | Non-current |   |   | (241.5) |
| Subtotal                                                                 |                       |   |                        | 120.8                 |   |   |   |   | 76.4 |   |   |   |   |   | (289.6) |   |   |   |   | (512.3) |
|                                                                     |                       |   |                        |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate swap agreements                                            | Non-current                |   |                        | 503.2                 |   | Non-current |   |   | 236.0 |   |   | Non-current |   |   | (41.4) |   | Non-current |   |   | (218.5) |
| Cross currency swap agreements                                           | Non-current                |   |                        | -                     |   | Non-current |   |   | - |   |   | Non-current |   |   | -    |   | Non-current |   |   | (9.6) |
| Total                                                                    |                       |   |                        | 624.0                 |   |   |   |   | 312.4 |   |   |   |   |   | (331.0) |   |   |   |   | (740.4) |
|                                                                     |                       |   |                        |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives not designated as hedging contracts |                       |   |                        |                  |   |   |   |   |   |   |   |
| Energy commodity derivative contracts                                    | Current                    |   |                        | 8.5                   |   | Current |   |   | 1.7 |   |   | Current |   |   | (8.4) |   | Current |   |   | (1.2) |
|                                                                     | Non-current                |   |                        | -                     |   | Non-current |   |   | - |   |   | Non-current |   |   | -    |   | Non-current |   |   | - |
|                                                                     |                       |   |                        | 8.5                   |   |   |   |   | 1.7 |   |   |   |   |   | (8.4) |   |   |   |   | (1.2) |
| Total                                                                    |                       |   | $                           | 632.5                 |   |   |   | $ | 314.1 |   |   |   |   | $ | (339.4) |   |   |   | $ | (741.6) |

----

| Derivatives infair valuehedgingrelationships |   | Location ofgain/(loss)recognized inincome onderivative |   | Amount of gain/(loss)recognized in incomeon derivative(a) |   |   | Hedged items infair valuehedgingrelationships |    | Location ofgain/(loss)recognized inincome on relatedhedged item |   | Amount of gain/(loss)recognized in income onrelated hedged items(a) |
|--------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------|---------|------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|
|                                                   |   |                                                                  |   | Three Months EndedJune 30,                                               |   |   |                                                         |    |                                                                                     |   | Three Months EndedJune 30,                                                                             |
|                                                   |   |                                                                  |   | 2010                                                                               |   | 2009   |                                                         |    |                                                                                     |   |                                                                                                   |   | 2010 |   | 2009 |
| Interest rate swap agreements                |   | Interest, net – income/(expense)                      |   | $                                                                                  | 377.3  |   | $                                                            | (336.9) |                                                                                     |   | Fixed rate debt                                                                                   |   | Interest, net – income/(expense) |   | $ | (377.3) |   | $ | 336.9 |
| Total                                                  |   |                                                                  |   | $                                                                                  | 377.3  |   | $                                                            | (336.9) |                                                                                     |   | Total                                                                                                  |   |   |   | $ | (377.3) |   | $ | 336.9 |
|                                                   |   |                                                                  |   |                                                                               |   |   |                                                         |    |                                                                                     |   |                                                                                                   |   |   |   |   |   |   |   |   |
|                                                   |   |                                                                  |   | Six Months EndedJune 30,                                                 |   |   |                                                         |    |                                                                                     |   | Six Months EndedJune 30,                                                                               |
|                                                   |   |                                                                  |   | 2010                                                                               |   | 2009   |                                                         |    |                                                                                     |   |                                                                                                   |   | 2010 |   | 2009 |
| Interest rate swap agreements                |   | Interest, net – income/(expense)                      |   | $                                                                                  | 444.2  |   | $                                                            | (467.3) |                                                                                     |   | Fixed rate debt                                                                                   |   | Interest, net – income/(expense) |   | $ | (444.2) |   | $ | 467.3 |
| Total                                                  |   |                                                                  |   | $                                                                                  | 444.2  |   | $                                                            | (467.3) |                                                                                     |   | Total                                                                                                  |   |   |   | $ | (444.2) |   | $ | 467.3 |

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

| Derivatives incash flow hedgingrelationships |   | Amount of gain/(loss)recognized in OCI onderivative (effectiveportion) |   | Location ofgain/(loss)reclassified fromAccumulated OCIinto income(effective portion) |   | Amount of gain/(loss)reclassified fromAccumulated OCIinto income(effective portion) |   | Location ofgain/(loss)recognized inincome onderivative(ineffective portionand amountexcluded fromeffectivenesstesting) |   | Amount of gain/(loss)recognized in incomeon derivative(ineffective portionand amountexcluded fromeffectiveness testing |
|-------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                        |   | Three Months EndedJune 30,                                                                           |   |                                                                                                          |   | Three Months EndedJune 30,                                                                                        |   |                                                                                                                                                 |   | Three Months EndedJune 30,                                                                                                                                          |
|                                                        |   | 2010                                                                                                 |   | 2009                                                                                                          |   |                                                                                                              |   | 2010                                                                                                                                                 |   | 2009                                                                                                                                                                |   |   |   | 2010 |   | 2009 |
| Energy commodity derivative contracts             |   | $                                                                                                    | 43.0   |                                                                                                          | $      | (111.3)                                                                                                           |   | Revenues-natural gas sales                                                                                                                      |   | $                                                                                                                                                                   | 0.1  |   | $ | 3.9 |   | Revenues-product sales and other |   | $ | 7.9  |   | $ | - |
|                                                        |   |                                                                                                 |   |                                                                                                          |   |                                                                                                              |   | Revenues-product sales and other                                                                                                           |   |                                                                                                                                                                | (4.6) |   |   | 9.6 |   |   |   |   |   |   |   | - |
|                                                        |   |                                                                                                 |   |                                                                                                          |   |                                                                                                              |   | Gas purchases and other costs of sales                                                                                      |   |                                                                                                                                                                | 0.6  |   |   | 0.9 |   | Gas purchases and other costs of sales |   |   | (0.1) |   |   | - |
| Total                                                       |   | $                                                                                                    | 43.0   |                                                                                                          | $      | (111.3)                                                                                                           |   | Total                                                                                                                                                |   | $                                                                                                                                                                   | (3.9) |   | $ | 14.4 |   | Total |   | $ | 7.8  |   | $ | - |
|                                                        |   |                                                                                                 |   |                                                                                                          |   |                                                                                                              |   |                                                                                                                                                 |   |                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   | Six Months EndedJune 30,                                                                             |   |                                                                                                          |   | Six Months EndedJune 30,                                                                                          |   |                                                                                                                                                 |   | Six Months EndedJune 30,                                                                                                                                            |
|                                                        |   | 2010                                                                                                 |   | 2009                                                                                                          |   |                                                                                                              |   | 2010                                                                                                                                                 |   | 2009                                                                                                                                                                |   |   |   | 2010 |   | 2009 |
| Energy commodity derivative contracts             |   | $                                                                                                    | 58.6   |                                                                                                          | $      | (95.4)                                                                                                            |   | Revenues-natural gas sales                                                                                                                      |   | $                                                                                                                                                                   | 0.1  |   | $ | 4.4 |   | Revenues-product sales and other |   | $ | 13.3  |   | $ | - |
|                                                        |   |                                                                                                 |   |                                                                                                          |   |                                                                                                              |   | Revenues-product sales and other                                                                                                           |   |                                                                                                                                                                | (8.8) |   |   | 29.7 |   |   |   |   |   |   |   |   |
|                                                        |   |                                                                                                 |   |                                                                                                          |   |                                                                                                              |   | Gas purchases and other costs of sales                                                                                      |   |                                                                                                                                                                | 0.7  |   |   | 0.8 |   | Gas purchases and other costs of sales |   |   | 0.8  |   |   | - |
| Total                                                       |   | $                                                                                                    | 58.6   |                                                                                                          | $      | (95.4)                                                                                                            |   | Total                                                                                                                                                |   | $                                                                                                                                                                   | (8.0) |   | $ | 34.9 |   | Total |   | $ | 14.1  |   | $ | - |

----

| Derivatives in net investmenthedgingrelationships |   | Amount of gain/(loss)recognized in OCI onderivative (effectiveportion) |   | Location ofgain/(loss)reclassified fromAccumulated OCIinto income(effective portion) |   | Amount of gain/(loss)reclassified fromAccumulated OCIinto income(effective portion) |   | Location ofgain/(loss)recognized inincome onderivative(ineffective portionand amountexcluded fromeffectivenesstesting) |   | Amount of gain/(loss)recognized in incomeon derivative(ineffective portionand amountexcluded fromeffectiveness testing |
|------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                             |   | Three Months EndedJune 30,                                                                 |   |                                                                                                          |   | Three Months EndedJune 30,                                                                              |   |                                                                                                                                                 |   | Three Months EndedJune 30,                                                                                                                                |
|                                                             |   | 2010                                                                                                 |   | 2009                                                                                                          |   |                                                                                                              |   | 2010                                                                                                                                                 |   | 2009                                                                                                                                                                |   |   |   | 2010 |   | 2009 |
| Cross currency swap agreements                         |   | $                                                                                                    | 15.1   |                                                                                                          | $      | (20.1)                                                                                                            |   | Other, net                                                                                                                                           |   | $                                                                                                                                                                   | - |   | $ | - |   | Revenues |   | $ | - |   | $ | - |
| Total                                                            |   | $                                                                                                    | 15.1   |                                                                                                          | $      | (20.1)                                                                                                            |   | Total                                                                                                                                                |   | $                                                                                                                                                                   | - |   | $ | - |   | Total |   | $ | - |   | $ | - |
|                                                             |   |                                                                                                 |   |                                                                                                          |   |                                                                                                              |   |                                                                                                                                                 |   |                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                             |   | Six Months EndedJune 30,                                                                   |   |                                                                                                          |   | Six Months EndedJune 30,                                                                                |   |                                                                                                                                                 |   | Six Months EndedJune 30,                                                                                                                                  |
|                                                             |   | 2010                                                                                                 |   | 2009                                                                                                          |   |                                                                                                              |   | 2010                                                                                                                                                 |   | 2009                                                                                                                                                                |   |   |   | 2010 |   | 2009 |
| Cross currency swap agreements                         |   | $                                                                                                    | 9.6    |                                                                                                          | $      | (26.1)                                                                                                            |   | Other, net                                                                                                                                           |   | $                                                                                                                                                                   | - |   | $ | - |   | Revenues |   | $ | - |   | $ | - |
| Total                                                            |   | $                                                                                                    | 9.6    |                                                                                                          | $      | (26.1)                                                                                                            |   | Total                                                                                                                                                |   | $                                                                                                                                                                   | - |   | $ | - |   | Total |   | $ | - |   | $ | - |

| Derivatives not designatedas hedging contracts  |   | Location of gain/(loss) recognizedin income on derivative |   | Amount of gain/(loss) recognizedin income on derivative |
|--------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|
|                                                                     |   |                                                                                    |   | Three Months EndedJune 30,                                                            |
|                                                                     |   |                                                                                    |   | 2010                                                                                  |   | 2009 |
| Energy commodity derivative contracts                     |   | Gas purchases and other costs of sales                    |   | $                                                                                     | 0.1 |   | $ | (1.9) |
| Total                                                                    |   |                                                                                    |   | $                                                                                     | 0.1 |   | $ | (1.9) |
|                                                                     |   |                                                                                    |   |                                                                                  |   |   |   |   |
|                                                                     |   |                                                                                    |   | Six Months EndedJune 30,                                                              |
|                                                                     |   |                                                                                    |   | 2010                                                                                  |   | 2009 |
| Energy commodity derivative contracts                     |   | Gas purchases and other costs of sales                    |   | $                                                                                     | 0.8 |   | $ | (2.3) |
| Total                                                                    |   |                                                                                    |   | $                                                                                     | 0.8 |   | $ | (2.3) |

----

|                                  |   | Assetposition |   |
|---------------------------------------|--------|---------------|--------|
| Interest rate swap agreements         |   | $             | 503.2  |   |
| Energy commodity derivative contracts |   |          | 129.3  |   |
| Gross exposure                        |   |          | 632.5  |   |
| Netting agreement impact              |   |          | (93.6  | ) |
| Net exposure                          |   | $             | 538.9  |   |

| Credit ratings downgraded(a)                                                     |   | Incrementalobligations |   | Cumulativeobligations(b) |
|----------------------------------------------------------------------------------|--------|------------------------|--------|--------------------------|
| One notch to BBB-/Baa3                                                           |   | $                      | 3.7    |                     |   | $ | 23.0 |   |
|                                                                             |   |                   |   |                     |   |   |   |   |
| Two notches to below BBB-/Baa3 (below investment grade) |   | $                      | 90.8   |                     |   | $ | 113.8 |   |

| (a) | If there are split ratings among the independent credit rating agencies, most counterparties use the higher credit rating to determine our incremental collateral obligations, while the remaining use the lower credit rating.  Therefore, a one notch downgrade to BBB-/Baa3 by one agency would not trigger the entire $3.7 million incremental obligation. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | Includes current posting at current rating.                                                                                                                                                                                                                                                                                                                              |

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

----

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

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

|                                     | Asset fair value measurements using                                                                       |
|------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|
|                                     |           Total           |   | Quoted prices inactive marketsfor identical  assets (Level 1)   |   | Significant otherobservable  inputs (Level 2)  |   | Significantunobservable  inputs (Level 3)  |
| As of June 30, 2010                      |                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Energy commodity derivative contracts(a) |                                                                                                                          | $ | 129.3 |   |   |   | $ | -   |   |   |   | $ | 55.1 |   |   |   | $ | 74.2 |   |
| Interest rate swap agreements            |                                                                                                                          | $ | 503.2 |   |   |   | $ | -   |   |   |   | $ | 503.2 |   |   |   | $ | -   |   |
|                                     |                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2009                  |                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Energy commodity derivative contracts(a) |                                                                                                                          | $ | 78.1 |   |   |   | $ | -   |   |   |   | $ | 14.4 |   |   |   | $ | 63.7 |   |
| Interest rate swap agreements            |                                                                                                                          | $ | 236.0 |   |   |   | $ | -   |   |   |   | $ | 236.0 |   |   |   | $ | -   |   |

|                                                                  | Liability fair value measurements using                                                                   |
|-----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|
|                                                                  |           Total           |   |  Quoted prices in active marketsfor identicalliabilities(Level 1) |   |  Significant other observableinputs (Level 2) |   | Significantunobservable  inputs (Level 3)  |
| As of June 30, 2010                                                   |                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Energy commodity derivative contracts(b)                              |                                                                                                                          | $ | (298.0) |   |   |   | $ | -     |   |   |   | $ | (270.4) |   |   |   | $ | (27.6) |   |
| Interest rate swap agreements                                         |                                                                                                                          | $ | (41.4) |   |   |   | $ | -     |   |   |   | $ | (41.4) |   |   |   | $ | -     |   |
| Cross currency interest rate swap agreements |                                                                                                                          | $ | -     |   |   |   | $ | -     |   |   |   | $ | -     |   |   |   | $ | -     |   |
|                                                                  |                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2009                                               |                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Energy commodity derivative contracts(b)                              |                                                                                                                          | $ | (513.5) |   |   |   | $ | -     |   |   |   | $ | (462.8) |   |   |   | $ | (50.7) |   |
| Interest rate swap agreements                                         |                                                                                                                          | $ | (218.5) |   |   |   | $ | -     |   |   |   | $ | (218.5) |   |   |   | $ | -     |   |
| Cross currency interest rate swap agreements |                                                                                                                          | $ | (9.6) |   |   |   | $ | -     |   |   |   | $ | (9.6) |   |   |   | $ | -     |   |

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

----

|                                                                                                                                     |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|--------|--------|------------------------------------|--------|
|                                                                                                                                     |   | 2010                                 |   |   | 2009                               |   |   | 2010 |   |   | 2009 |   |
| Derivatives-net asset (liability)                                                                                                        |   |                                 |   |   |                               |   |   |   |   |   |   |   |
| Beginning of Period                                                                                                                      |   | $                                    | 22.6   |   |                               | $      | 53.4 |   |   | $ | 13.0 |   |   | $ | 44.1 |   |
| Realized and unrealized net losses                                                                                                       |   |                                 | 18.1   |   |                               |   | (28.1 | ) |   |   | 26.7 |   |   |   | (21.8 | ) |
| Purchases and settlements                                                                                                                |   |                                 | 5.9    |   |                               |   | (1.3 | ) |   |   | 6.9 |   |   |   | 1.7 |   |
| Transfers in (out) of Level 3                                                                                                            |   |                                 | -      |   |                               |   | - |   |   |   | - |   |   |   | - |   |
| End of Period                                                                                                                            |   | $                                    | 46.6   |   |                               | $      | 24.0 |   |   | $ | 46.6 |   |   | $ | 24.0 |   |
|                                                                                                                                     |   |                                 |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Change in unrealized net losses relating to contracts still held at end of period |   | $                                    | 19.2   |   |                               | $      | (29.7 | ) |   | $ | 24.1 |   |   | $ | (39.5 | ) |

|       |   | June 30, 2010 |     |   | December 31, 2009        |   |
|------------|--------|---------------|----------|--------|--------------------------|--------|
|       |   | CarryingValue |     |   | Estimatedfair value |   |   | Carryingvalue |   |   | Estimatedfair value |   |
| Total debt |   | $             | 14,872.0 |   |                     | $      | 15,551.3 |   |   | $ | 13,648.4 |   |   | $ | 14,158.2 |   |

|                          |   | Asset fair value measurements using |   |
|-------------------------------|--------|---------------------------------------------------------|--------|
|                          |   | Total                                                   |   |   | Quoted prices inactive marketsfor identicalassets (Level 1) |   |   | Significant otherobservableinputs (Level 2) |   |   | Significantunobservableinputs (Level 3) |   |
| Investment in NGPL PipeCo LLC |   | $                                                       | 273.7  |   |   | $ | - |   |   | $ | - |   |   | $ | 273.7 |   |

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

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

----

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

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

|   | ▪ | Kinder Morgan Canada–KMP—the transportation of crude oil and refined products from Alberta, Canada to marketing terminals and refineries in British Columbia, the state of Washington and the Rocky Mountains and Central regions of the United States; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | ▪ | Power—consists of our operation of a natural gas-fired electric generation facility. |
|--------|---------|--------------------------------------------------------------------------------------------|

|                              |   | Three Months EndedJune 30, |    |   | Six Months EndedJune 30, |   |
|-----------------------------------|--------|--------------------------------------|---------|--------|------------------------------------|--------|
|                              |   | 2010                                 |    |   | 2009                               |   |   | 2010 |   |   | 2009 |   |
| Revenues                          |   |                                 |    |   |                               |   |   |   |   |   |   |   |
| Products Pipelines–KMP      |   |                                 |    |   |                               |   |   |   |   |   |   |   |
| Revenues from external customers  |   | $                                    | 226.3   |   |                               | $      | 206.7 |   |   | $ | 433.8 |   |   | $ | 394.9 |   |
| Natural Gas Pipelines–KMP   |   |                                 |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Revenues from external customers  |   |                                 | 1,029.7 |   |                               |   | 860.7 |   |   |   | 2,266.4 |   |   |   | 1,912.4 |   |
| CO2–KMP                     |   |                                 |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Revenues from external customers  |   |                                 | 327.9   |   |                               |   | 282.4 |   |   |   | 663.1 |   |   |   | 535.6 |   |
| Terminals–KMP               |   |                                 |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Revenues from external customers  |   |                                 | 320.3   |   |                               |   | 263.7 |   |   |   | 624.1 |   |   |   | 531.4 |   |
| Intersegment revenues             |   |                                 | 0.2     |   |                               |   | 0.3 |   |   |   | 0.5 |   |   |   | 0.5 |   |
| Kinder Morgan Canada–KMP    |   |                                 |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Revenues from external customers  |   |                                 | 70.6    |   |                               |   | 56.0 |   |   |   | 130.4 |   |   |   | 106.0 |   |
| Power(a)                          |   |                                 |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Revenues from external customers  |   |                                 | 2.8     |   |                               |   | 12.4 |   |   |   | 5.6 |   |   |   | 19.0 |   |
| Other                             |   |                                 |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| NGPL PipeCo LLC fixed fee revenue |   |                                 | 11.8    |   |                               |   | 11.4 |   |   |   | 23.6 |   |   |   | 22.9 |   |
| Other revenue                     |   |                                 | 1.5     |   |                               |   | - |   |   |   | 1.5 |   |   |   | - |   |
| Total segment revenues            |   |                                 | 1,991.1 |   |                               |   | 1,693.6 |   |   |   | 4,149.0 |   |   |   | 3,522.7 |   |
| Less: Total intersegment revenues |   |                                 | (0.2    | )      |                               |   | (0.3 | ) |   |   | (0.5 | ) |   |   | (0.5 | ) |
| Total consolidated revenues       |   | $                                    | 1,990.9 |   |                               | $      | 1,693.3 |   |   | $ | 4,148.5 |   |   | $ | 3,522.2 |   |

----

|                                                                                                                                                        |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|--------|--------|------------------------------------|--------|
|                                                                                                                                                        |   | 2010                                 |   |   | 2009                               |   |   | 2010 |   |   | 2009 |   |
|                                                                                                                                                        |   |                                 |   |   |                               |   |   |   |   |   |   |   |
| Segment earnings (loss) before depreciation, depletion, amortization and amortization of excess cost of equity investments(b) |   |                                 |   |   |                               |   |   |   |   |   |   |   |
| Products Pipelines–KMP(c)                                                                                                                             |   | $                                    | 158.0  |   |                               | $      | 154.7 |   |   | $ | 164.4 |   |   | $ | 300.1 |   |
| Natural Gas Pipelines–KMP                                                                                                                             |   |                                 | 184.6  |   |                               |   | 162.0 |   |   |   | 405.2 |   |   |   | 362.0 |   |
| CO2–KMP                                                                                                                                               |   |                                 | 262.7  |   |                               |   | 226.9 |   |   |   | 529.3 |   |   |   | 418.6 |   |
| Terminals–KMP                                                                                                                                         |   |                                 | 164.8  |   |                               |   | 141.0 |   |   |   | 315.3 |   |   |   | 275.3 |   |
| Kinder Morgan Canada–KMP                                                                                                                              |   |                                 | 43.9   |   |                               |   | 46.7 |   |   |   | 88.9 |   |   |   | 66.2 |   |
| NGPL PipeCo LLC(d)                                                                                                                                          |   |                                 | 8.4    |   |                               |   | 10.1 |   |   |   | (411.2 | ) |   |   | 22.4 |   |
| Power(a)                                                                                                                                                    |   |                                 | 1.2    |   |                               |   | 1.3 |   |   |   | 2.4 |   |   |   | 2.4 |   |
| Total segment earnings before DD&A                                                                                                                      |   |                                 | 823.6  |   |                               |   | 742.7 |   |   |   | 1,094.3 |   |   |   | 1,447.0 |   |
| Depreciation, depletion and amortization                                                                                                                    |   |                                 | (269.7 | )      |                               |   | (256.8 | ) |   |   | (552.0 | ) |   |   | (521.6 | ) |
| Amortization of excess cost of equity investments                                                                                                           |   |                                 | (1.5   | )      |                               |   | (1.5 | ) |   |   | (2.9 | ) |   |   | (2.9 | ) |
| NGPL PipeCo LLC fixed fee revenue                                                                                                                           |   |                                 | 11.8   |   |                               |   | 11.4 |   |   |   | 23.6 |   |   |   | 22.9 |   |
| Other revenue                                                                                                                                               |   |                                 | 1.5    |   |                               |   | - |   |   |   | 1.5 |   |   |   | - |   |
| General and administrative expense                                                                                                                          |   |                                 | (104.8 | )      |                               |   | (84.1 | ) |   |   | (220.5 | ) |   |   | (177.0 | ) |
| Unallocable interest and other, net(e)                                                                                                                      |   |                                 | (163.1 | )      |                               |   | (139.1 | ) |   |   | (318.9 | ) |   |   | (289.4 | ) |
| Unallocable income tax benefit (expense)                                                                                                                    |   |                                 | (37.5  | )      |                               |   | (64.2 | ) |   |   | 55.5 |   |   |   | (125.5 | ) |
| Income from continuing operations                                                                                                                           |   | $                                    | 260.3  |   |                               | $      | 208.4 |   |   | $ | 80.6 |   |   | $ | 353.5 |   |

|                            |   | June 30,2010 |     |   | December 31,2009 |   |
|---------------------------------|--------|-------------------|----------|--------|-----------------------|--------|
| Assets                          |   |              |     |   |                  |   |
| Products Pipelines–KMP    |   | $                 | 5,609.5  |   |                  | $      | 5,614.7 |   |
| Natural Gas Pipelines–KMP |   |              | 10,960.1 |   |                  |   | 9,956.7 |   |
| CO2–KMP                   |   |              | 4,142.0  |   |                  |   | 4,230.5 |   |
| Terminals–KMP             |   |              | 4,873.5  |   |                  |   | 4,537.3 |   |
| Kinder Morgan Canada–KMP  |   |              | 1,761.0  |   |                  |   | 1,797.7 |   |
| NGPL PipeCo LLC(d)              |   |              | 273.7    |   |                  |   | 698.5 |   |
| Power(a)                        |   |              | 5.6      |   |                  |   | 67.6 |   |
| Total segment assets            |   |              | 27,625.4 |   |                  |   | 26,903.0 |   |
| Corporate assets(f)             |   |              | 952.8    |   |                  |   | 683.3 |   |
| Total consolidated assets       |   | $                 | 28,578.2 |   |                  | $      | 27,586.3 |   |

| (a)       | Upon the adoption of Accounting Standards Update No. 2009-17, which amended the codification’s “Consolidation” topic, on January 1, 2010, Triton Power Company LLC is no longer consolidated into our financial statements, but is treated as an equity investment (see Note 13). This resulted in decreases to 2010 revenues, operating expenses and noncontrolling interests with no impact to segment earnings before DD&A as compared to 2009. |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)       | Includes revenues, earnings from equity investments, allocable interest income, and other, net, less operating expenses, allocable income taxes, and other expense (income).                                                                                                                                                                                                                                                                                             |
| (c)       | Six month 2010 amount includes a $158.0 million increase in expense associated with rate case liability adjustments. Following the Federal Regulatory Energy Commission’s approval of a settlement agreement we reached with certain shippers, KMP made settlement payments totaling $206.3 million in June 2010.  For more information on the rate case proceedings, see Note 11.                                                                       |
| (d)       | Six month 2010 amount includes a $430.0 million non-cash investment impairment charge (see Note 2).                                                                                                                                                                                                                                                                                                                                                                      |
| (e)       | Includes (i) interest expense and (ii) miscellaneous other income and expenses not allocated to reportable segments.                                                                                                                                                                                                                                                                                                                                                     |
| (f)  | Includes cash and cash equivalents, margin and restricted deposits, unallocable interest receivable, prepaid assets and deferred charges, risk management assets related to the fair value of interest rate swaps and miscellaneous corporate assets (such as information technology and telecommunications equipment) not allocated to individual segments.                                                                                                             |

----

----

|                                                                           |   | June 30,2010 |   |   | December 31,2009 |   |
|--------------------------------------------------------------------------------|--------|-------------------|--------|--------|-----------------------|--------|
| Derivatives - asset (liability)                                                |   |              |   |   |                  |   |
| Current assets: Fair value of derivative contracts                             |   | $                 | 0.4    |   |                  | $      | 4.3 |   |
| Assets: Fair value of derivative contracts                                     |   | $                 | 22.4   |   |                  | $      | 18.4 |   |
| Current liabilities: Fair value of derivative contracts                        |   | $                 | (84.2  | )      |                  | $      | (96.8 | ) |
| Long-term liabilities and deferred credits: Fair value of derivative contracts |   | $                 | (82.5  | )      |                  | $      | (190.8 | ) |

|                         | Three Months EndedJune 30, |   | Six Months EndedJune 30, |
|------------------------------|-------------------------------------------|--------|-----------------------------------------|
|                         | 2010                                      |   | 2009                                    |   | 2010 |   | 2009 |
|                         |                                      |
| Income tax expense (benefit) | $                                         | 45.8   |                                    |   | $ | 67.0 |   |   | $ | (49.7) |   |   | $ | 147.6 |   |
| Effective tax rate           |                                      | 15.0   | %                                       |   |   | 24.3 | % |   |   | (160.8) | % |   |   | 29.5 | % |

----

|   | SFPP |
|--------|------|

----

|   | ▪ | FERC Docket Nos. OR92-8, et al. (West and East Line Rates)—Chevron protests of compliance filings pending with FERC and appeals pending at the D.C. Circuit; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | FERC Docket Nos. OR96-2, et al. (All SFPP Rates)—Chevron (as a successor-in-interest to Texaco) protests of compliance filings pending with FERC; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | FERC Docket No. OR02-4 (All SFPP Rates)—Chevron appeal of complaint dismissal pending at the D.C. Circuit; |
|--------|---------|------------------------------------------------------------------------------------------------------------------|

|   | ▪ | FERC Docket No. OR03-5 (West, East, North, and Oregon Line Rates)—Chevron exceptions to initial decision pending at FERC; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | FERC Docket No. OR07-4 (All SFPP Rates)—Chevron complaint held in abeyance; |
|--------|---------|-----------------------------------------------------------------------------------|

|   | ▪ | FERC Docket No. OR09-8 (consolidated) (2008 Index Increases)—Hearing regarding Chevron complaint held in abeyance pending settlement discussions; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | FERC Docket No. IS98-1 (Sepulveda Line Rates)—Chevron protests to compliance filing pending at FERC; |
|--------|---------|------------------------------------------------------------------------------------------------------------|

|   | ▪ | FERC Docket No. IS05-230 (North Line Rates)—Chevron exceptions to initial decision pending at FERC; |
|--------|---------|-----------------------------------------------------------------------------------------------------------|

|   | ▪ | FERC Docket No. IS07-116 (Sepulveda Line Rates)—Chevron protest subject to resolution of IS98-1 proceeding; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------|

|   | ▪ | FERC Docket No. IS08-137 (West and East Line Rates)—Chevron protest subject to resolution of the OR92-8/OR96-2 proceeding; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | FERC Docket No. IS08-302 (2008 Index Rate Increases)—Chevron protest subject to the resolution of proceedings regarding the West, North and Sepulveda Lines; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | FERC Docket No. IS09-375 (2009 Index Rate Increases)—Chevron protest subject to resolution of proceedings regarding the North, West and Sepulveda Lines; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

|   | ▪ | FERC Docket No. IS09-437 (East Line Rates)—Protestants: BP, ExxonMobil, ConocoPhillips, Valero, Chevron, Western Refining, and Southwest Airlines—Status: Hearing stage. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | FERC Docket No. OR07-3 (2005-2006 North Line Index Rate Increases)—Protestants: BP, ExxonMobil, Tesoro, Valero Marketing, Chevron—Defendant: SFPP—Status: Petition for review at D.C. Circuit denied, mandate issued. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | FERC Docket No. OR09-16 (not consolidated) (2007 and 2008 Page 700 Audit Request)—Complainants: Tesoro—Defendant: SFPP—Status: Dismissed at FERC; no appeal taken; and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | FERC Docket No. OR09-17 (Most SFPP Rates) (not consolidated)—Complainants: Tesoro—Defendant: SFPP—Status: Dismissed at FERC; no appeal taken. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Calnev |
|--------|--------|

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

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

|   | ▪ | FERC Docket Nos. OR09-11/OR09-14 (not consolidated) (2007 and 2008 Page 700 Audit Request)—Complainants: BP/Tesoro—Status:  BP petition for review at D.C. Circuit dismissed, mandate issued; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | ▪ | FERC Docket Nos. OR09-18/OR09-22 (not consolidated) (2009 Index Increases)—Complainants: Tesoro/BP—Status:  BP petition for review at D.C. Circuit dismissed, mandate issued. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Trailblazer Pipeline Company LLC |
|--------|----------------------------------|

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|                                                                                                                                                                                            |   | Three Months EndedJune 30, |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|--------|--------|--------|--------|
|                                                                                                                                                                                            |   | 2010                                 |   |   | 2009   |   |   | Earningsincrease/(decrease) |   |
|                                                                                                                                                                                            |   | (In millions, except percentages)    |   |
| Segment earnings before depreciation, depletion and amortization expense and amortization of excess cost of equity investments(a)                            |   |                                 |   |   |   |   |   |   |   |   |   |   |
| Products Pipelines–KMP(b)                                                                                                                                                                 |   | $                                    | 158.0  |   |   | $      | 154.7 |   |   | $ | 3.3 |   |   |   | 2 |   % |
| Natural Gas Pipelines–KMP(c)                                                                                                                                                              |   |                                 | 184.6  |   |   |   | 162.0 |   |   |   | 22.6 |   |   |   | 14 |   % |
| CO2–KMP(d)                                                                                                                                                                                |   |                                 | 262.7  |   |   |   | 226.9 |   |   |   | 35.8 |   |   |   | 16 |   % |
| Terminals–KMP(e)                                                                                                                                                                          |   |                                 | 164.8  |   |   |   | 141.0 |   |   |   | 23.8 |   |   |   | 17 |   % |
| Kinder Morgan Canada–KMP(f)                                                                                                                                                               |   |                                 | 43.9   |   |   |   | 46.7 |   |   |   | (2.8 | ) |   |   | (6 | ) % |
| NGPL PipeCo LLC                                                                                                                                                                                 |   |                                 | 8.4    |   |   |   | 10.1 |   |   |   | (1.7 | ) |   |   | (17 | ) % |
| Power                                                                                                                                                                                           |   |                                 | 1.2    |   |   |   | 1.3 |   |   |   | (0.1 | ) |   |   | (8 | ) % |
| Segment earnings before depreciation, depletion and amortization expense and amortization of excess cost of equity investments |   |                                 | 823.6  |   |   |   | 742.7 |   |   |   | 80.9 |   |   |   | 11 |   % |
|                                                                                                                                                                                            |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation, depletion and amortization expense                                                                                                                                                |   |                                 | (269.7 | )      |   |   | (256.8 | ) |   |   | (12.9 | ) |   |   | (5 | ) % |
| Amortization of excess cost of equity investments                                                                                                                                               |   |                                 | (1.5   | )      |   |   | (1.5 | ) |   |   | - |   |   |   | - |   |
| NGPL PipeCo LLC fixed fee revenue(g)                                                                                                                                                            |   |                                 | 11.8   |   |   |   | 11.4 |   |   |   | 0.4 |   |   |   | 4 |   % |
| Other operating revenues                                                                                                                                                                        |   |                                 | 1.5    |   |   |   | - |   |   |   | 1.5 |   |   |   | n/a |   |
| General and administrative expense(h)                                                                                                                                                           |   |                                 | (104.8 | )      |   |   | (84.1 | ) |   |   | (20.7 | ) |   |   | (25 | ) % |
| Unallocable interest and other, net(i)                                                                                                                                                          |   |                                 | (163.1 | )      |   |   | (139.1 | ) |   |   | (24.0 | ) |   |   | (17 | ) % |
| Income from continuing operations before income taxes                                                                                                                                           |   |                                 | 297.8  |   |   |   | 272.6 |   |   |   | 25.2 |   |   |   | 9 |   % |
| Unallocable income tax expense(a)                                                                                                                                                               |   |                                 | (37.5  | )      |   |   | (64.2 | ) |   |   | 26.7 |   |   |   | 42 |   % |
| Income from continuing operations                                                                                                                                                               |   |                                 | 260.3  |   |   |   | 208.4 |   |   |   | 51.9 |   |   |   | 25 |   % |
| Income from discontinued operations, net of tax                                                                                                                                                 |   |                                 | -      |   |   |   | 0.7 |   |   |   | (0.7 | ) |   |   | (100 | ) % |
| Net income                                                                                                                                                                                      |   |                                 | 260.3  |   |   |   | 209.1 |   |   |   | 51.2 |   |   |   | 24 |   % |
| Net income attributable to noncontrolling interests                                                                                                                                             |   |                                 | (214.3 | )      |   |   | (79.3 | ) |   |   | (135.0 | ) |   |   | (170 | ) % |
| Net income attributable to Kinder Morgan, Inc.(j)                                                                                                                                               |   | $                                    | 46.0   |   |   | $      | 129.8 |   |   | $ | (83.8 | ) |   |   | (65 | ) % |

----

|                                                                                                                                                                                            |   | Six Months EndedJune 30, |    |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|---------|--------|--------|--------|
|                                                                                                                                                                                            |   | 2010                               |    |   | 2009   |   |   | Earningsincrease/(decrease) |   |
|                                                                                                                                                                                            |   | (In millions, except percentages)  |    |
| Segment earnings (loss) before depreciation, depletion and amortization expense and amortization of excess cost of equity investments(a)                     |   |                               |    |   |   |   |   |   |   |   |   |   |
| Products Pipelines–KMP(k)                                                                                                                                                                 |   | $                                  | 164.4   |   |   | $      | 300.1 |   |   | $ | (135.7 | ) |   |   | (45 | ) % |
| Natural Gas Pipelines–KMP(l)                                                                                                                                                              |   |                               | 405.2   |   |   |   | 362.0 |   |   |   | 43.2 |   |   |   | 12 |   % |
| CO2–KMP(m)                                                                                                                                                                                |   |                               | 529.3   |   |   |   | 418.6 |   |   |   | 110.7 |   |   |   | 26 |   % |
| Terminals–KMP(n)                                                                                                                                                                          |   |                               | 315.3   |   |   |   | 275.3 |   |   |   | 40.0 |   |   |   | 15 |   % |
| Kinder Morgan Canada–KMP(o)                                                                                                                                                               |   |                               | 88.9    |   |   |   | 66.2 |   |   |   | 22.7 |   |   |   | 34 |   % |
| NGPL PipeCo LLC(p)                                                                                                                                                                              |   |                               | (411.2  | )      |   |   | 22.4 |   |   |   | (433.6 | ) |   |   | (1,936 | ) % |
| Power                                                                                                                                                                                           |   |                               | 2.4     |   |   |   | 2.4 |   |   |   | - |   |   |   | - |   |
| Segment earnings before depreciation, depletion and amortization expense and amortization of excess cost of equity investments |   |                               | 1,094.3 |   |   |   | 1,447.0 |   |   |   | (352.7 | ) |   |   | (24 | ) % |
|                                                                                                                                                                                            |   |                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation, depletion and amortization expense                                                                                                                                                |   |                               | (552.0  | )      |   |   | (521.6 | ) |   |   | (30.4 | ) |   |   | (6 | ) % |
| Amortization of excess cost of equity investments                                                                                                                                               |   |                               | (2.9    | )      |   |   | (2.9 | ) |   |   | - |   |   |   | - |   |
| NGPL PipeCo LLC fixed fee revenue(g)                                                                                                                                                            |   |                               | 23.6    |   |   |   | 22.9 |   |   |   | 0.7 |   |   |   | 3 |   % |
| Other operating revenues                                                                                                                                                                        |   |                               | 1.5     |   |   |   | - |   |   |   | 1.5 |   |   |   | n/a |   |
| General and administrative expense(q)                                                                                                                                                           |   |                               | (220.5  | )      |   |   | (177.0 | ) |   |   | (43.5 | ) |   |   | (25 | ) % |
| Unallocable interest and other, net(r)                                                                                                                                                          |   |                               | (318.9  | )      |   |   | (289.4 | ) |   |   | (29.5 | ) |   |   | (10 | ) % |
| Income from continuing operations before income taxes                                                                                                                                           |   |                               | 25.1    |   |   |   | 479.0 |   |   |   | (453.9 | ) |   |   | (95 | ) % |
| Unallocable income tax benefit (expense)(a)                                                                                                                                                     |   |                               | 55.5    |   |   |   | (125.5 | ) |   |   | 181.0 |   |   |   | 144 |   % |
| Income from continuing operations                                                                                                                                                               |   |                               | 80.6    |   |   |   | 353.5 |   |   |   | (272.9 | ) |   |   | (77 | ) % |
| Income (loss) from discontinued operations, net of tax                                                                                                                                          |   |                               | (0.2    | )      |   |   | 0.5 |   |   |   | (0.7 | ) |   |   | (140 | ) % |
| Net income                                                                                                                                                                                      |   |                               | 80.4    |   |   |   | 354.0 |   |   |   | (273.6 | ) |   |   | (77 | ) % |
| Net income attributable to noncontrolling interests                                                                                                                                             |   |                               | (195.3  | )      |   |   | (108.9 | ) |   |   | (86.4 | ) |   |   | (79 | ) % |
| Net income (loss) attributable to Kinder Morgan, Inc.(j)                                                                                                                                        |   | $                                  | (114.9  | )      |   | $      | 245.1 |   |   | $ | (360.0 | ) |   |   | (147 | ) % |

| (a) | Includes revenues, earnings from equity investments, allocable interest income and other, net, less operating expenses, allocable income taxes, and other expense (income).  Operating expenses include natural gas purchases and other costs of sales, operations and maintenance expenses, and taxes, other than income taxes. Segment earnings include KMP’s allocable income taxes expense of $8.3 million and $2.8 million for the three months ended June 30, 2010 and 2009, respectively, and $5.8 million and $22.1 million for the six months ended June 30, 2010 and 2009, respectively.                                                                                                                                                                                                                                                                                                           |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | 2010 and 2009 amounts include a decrease in income of $0.4 million and an increase in income of $1.0 million, respectively, resulting from unrealized foreign currency gains and losses on long-term debt transactions.  2010 amount also includes a $15.5 million decrease in income associated with combined property environmental expenses and disposal losses related to the retirement of the Gaffey Street, California products terminal facility.  2009 amount also includes a $3.8 million increase in expense associated with environmental liability adjustments. Also, 2010 and 2009 amounts include $7.2 million and $0.3 million, respectively, decrease in segment earnings related to property disposal losses, which had been revalued as part of the Going Private transaction and recorded in the application of the purchase method of accounting.                                   |
| (c) | 2010 amount includes a $0.1 million unrealized loss on derivative contracts used to hedge forecasted natural gas sales.  2009 amount includes a $2.5 million decrease in income resulting from unrealized mark to market gains and losses due to the discontinuance of hedge accounting at Casper Douglas. Also, 2010 and 2009 amounts include increases in segment earnings of $0.1 million and $0.2 million, respectively, resulting from valuation adjustments related to derivative contracts in place at the time of the Going Private transaction and recorded in the application of the purchase method of accounting. 2010 and 2009 amounts include $ 0.5 million and $0.3 million, respectively, decrease in segment earnings related to property disposal losses, which had been revalued as part of the Going Private transaction and recorded in the application of the purchase method of accounting. |
| (d) | 2010 amount includes a $7.9 million unrealized gain on derivative contracts used to hedge forecasted crude oil sales.  Also, 2010 and 2009 amounts include increases in segment earnings resulting from valuation adjustments of $13.3 million and $24.2 million, respectively, primarily related to derivative contracts in place at the time of the Going Private transaction and recorded in the application of the purchase method of accounting.                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (e) | 2010 amount includes a $6.7 million casualty indemnification gain related to a 2008 fire at the Pasadena, Texas liquids terminal, and a $0.2 million increase in expense related to storm and flood clean-up and repair activities.  2009 amount includes a $0.5 million decrease in expense associated with legal liability adjustments related to a litigation matter involving the Staten Island liquids terminal, and a $0.1 million increase in expense associated with environmental liability adjustments. Also, 2010 and 2009 amounts include $0.7 million and $1.9 million, respectively, decrease in segment earnings, related to assets sold, which had been revalued as part of the Going Private transaction and recorded in the application of the purchase method of accounting.                                                                                                                    |
| (f) | 2009 amount includes a $3.7 million decrease in expense due to a certain non-cash accounting change related to book tax accruals made by the Express pipeline system.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

----

| (g) | See Note 9 of our consolidated financial statements included elsewhere in this report.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (h) | Includes unallocated litigation and environmental expenses.  2010 and 2009 amounts include an increase in expense of $0.1 million and a decrease in expense of $0.9 million, respectively, related to capitalized overhead costs associated with the 2008 hurricane season.  2010 amount also includes a $1.0 million increase in expense for certain asset and business acquisition costs.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (i) | 2010 and 2009 amounts include increases in imputed interest expense of $0.2 million and $0.3 million, respectively, related to the January 1, 2007 Cochin Pipeline acquisition.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (j) | 2010 amounts include a reduction of approximately $107 million (after-tax) due to a KMP interim capital transaction.  See Note 11 of our consolidated financial statements included elsewhere in this report.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (k) | 2010 and 2009 amounts include increases in income of $0.1 million and $0.4 million, respectively, resulting from unrealized foreign currency gains and losses on long-term debt transactions.  2010 amount also includes a $158.0 million expense associated with rate case liability adjustments, and a $15.5 million decrease in income associated with combined property environmental expenses and disposal losses related to the retirement of the Gaffey Street, California products terminal facility.  2009 amount also includes a $3.8 million increase in expense associated with environmental liability adjustments.  Also 2010 and 2009 amounts include $7.2 million and $0.3 million, respectively, decrease in segment earnings related to property disposal losses, which had been revalued as part of the Going Private transaction and recorded in the application of the purchase method of accounting. With respect to the 2010 rate case liability adjustments, following the Federal Regulatory Energy Commission’s approval of a settlement agreement KMP reached with certain shippers, it made settlement payments totaling $206.3 million in June 2010.  For more information on the rate case proceedings, see Note 11 of our consolidated financial statements included elsewhere in this report included elsewhere in this report. |
| (l) | 2010 amount includes a $0.8 million unrealized gain on derivative contracts used to hedge forecasted natural gas sales, and a $0.4 million increase in income from certain measurement period adjustments related to the October 1, 2009 natural gas treating business acquisition.  2009 amount includes a $3.8 million decrease in income resulting from unrealized mark to market gains and losses due to the discontinuance of hedge accounting at Casper Douglas.  Also, 2010 and 2009 amounts include increases in segment earnings of $0.1 million and $0.2 million, respectively, resulting from valuation adjustments related to derivative contracts in place at the time of the Going Private transaction and recorded in the application of the purchase method of accounting; and 2010 and 2009 amounts include $ 0.5 million and $1.1 million, respectively, decrease in segment earnings related to property disposal losses, which had been revalued as part of the Going Private transaction and recorded in the application of the purchase method of accounting.                                                                                                                                                                                                                                                                                                       |
| (m) | 2010 amount includes a $13.3 million unrealized gain on derivative contracts used to hedge forecasted crude oil sales.  Also, 2010 and 2009 amounts include increases in segment earnings resulting from valuation adjustments of $26.7 million and $48.5 million, respectively, primarily related to derivative contracts in place at the time of the Going Private transaction and recorded in the application of the purchase method of accounting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (n) | 2010 amount includes a $6.7 million casualty indemnification gain related to a 2008 fire at the Pasadena, Texas liquids terminal and a $0.6 million increase in expense related to storm and flood clean-up and repair activities.  2009 amount includes a $0.5 million decrease in expense associated with legal liability adjustments related to a litigation matter involving the Staten Island liquids terminal and a $0.1 million increase in expense associated with environmental liability adjustments.  Also, 2010 and 2009 amounts include $0.7 million and $2.3 million, respectively, decrease in segment earnings; related to assets sold, which had been revalued as part of the Going Private transaction and recorded in the application of the purchase method of accounting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (o) | 2009 amount includes a $14.9 million increase in expense primarily due to certain non-cash regulatory accounting adjustments to the carrying amount of Trans Mountain pipeline system’s previously established deferred tax liability and a $3.7 million decrease in expense due to a certain non-cash accounting change related to book tax accruals made by the Express pipeline system.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (p) | Includes a non-cash investment impairment charge, which we recorded in the amount of $430.0 million (pre-tax); see Note 2 of our consolidated financial statements included elsewhere in this report.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (q) | Includes unallocated litigation and environmental expenses.  2010 and 2009 amounts include (i) increases in expense of $2.4 million and $0.1 million, respectively, for certain asset and business acquisition costs and (ii) decreases in expense of $0.2 million and $1.5 million, respectively, related to capitalized overhead costs associated with the 2008 hurricane season.  2010 amount also includes a $1.6 million increase in legal expense associated with certain items such as legal settlements and pipeline failures.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (r) | 2010 and 2009 amounts include increases in imputed interest expense of $0.6 million and $0.8 million, respectively, related to the January 1, 2007 Cochin Pipeline acquisition.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Three Months EndedJune 30,                 |   |   | Six Months EndedJune 30, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|--------|--------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2010                                       |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | (In millions, except operating statistics) |   |
| Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                                          | 226.3  |   |                     | $      | 206.7 |   |   | $ | 433.8 |   |   | $ | 394.9 |   |
| Operating expenses(a)                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                       | (65.0  | )      |                     |   | (60.0 | ) |   |   | (273.9 | ) |   |   | (109.0 | ) |
| Other expense(b)                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                       | (11.1  | )      |                     |   | (0.3 | ) |   |   | (11.1 | ) |   |   | (0.3 | ) |
| Earnings from equity investments                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                       | 6.1    |   |                     |   | 5.1 |   |   |   | 10.6 |   |   |   | 8.6 |   |
| Interest income and Other, net-income(c)                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                       | 1.3    |   |                     |   | 3.5 |   |   |   | 3.9 |   |   |   | 6.3 |   |
| Income tax benefit (expense)                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                       | 0.4    |   |                     |   | (0.3 | ) |   |   | 1.1 |   |   |   | (0.4 | ) |
| Earnings before depreciation, depletion and amortization expense and amortization of excess cost of equity investments                                                                                                                                                                                                                                                                                   |   | $                                          | 158.0  |   |                     | $      | 154.7 |   |   | $ | 164.4 |   |   | $ | 300.1 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Gasoline (MMBbl)(d)                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                       | 103.4  |   |                     |   | 104.2 |   |   |   | 197.2 |   |   |   | 199.8 |   |
| Diesel fuel (MMBbl)                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                       | 38.3   |   |                     |   | 36.5 |   |   |   | 71.1 |   |   |   | 72.0 |   |
| Jet fuel (MMBbl)                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                       | 26.2   |   |                     |   | 28.1 |   |   |   | 51.0 |   |   |   | 54.9 |   |
| Total refined product volumes (MMBbl)                                                                       |   |                                       | 167.9  |   |                     |   | 168.8 |   |   |   | 319.3 |   |   |   | 326.7 |   |
| Natural gas liquids (MMBbl)                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                       | 5.7    |   |                     |   | 7.3 |   |   |   | 11.6 |   |   |   | 12.2 |   |
| Total delivery volumes (MMBbl)(e)                                                                           |   |                                       | 173.6  |   |                     |   | 176.1 |   |   |   | 330.9 |   |   |   | 338.9 |   |
| Ethanol (MMBbl)(f)                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                       | 7.6    |   |                     |   | 5.5 |   |   |   | 14.8 |   |   |   | 10.6 |   |

| (a) | Three and six month 2010 amounts include an $11.6 million increase in property environmental expenses associated with the retirement of the Gaffey Street, California products terminal facility.  Six month 2010 amount also includes a $158.0 million increase in expense associated with rate case liability adjustments.  Three and six month 2009 amounts include a $3.8 million increase in expense associated with environmental liability adjustments.                           |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | Three and six month 2010 amounts include $3.9 million related to property disposal losses for the retirement of the Gaffey Street, California products terminal facility.  Also three and six month 2010 and 2009 amounts include $7.2 million and  $0.3 million, respectively, decrease in segment earnings related to property disposal losses, which had been revalued as part of the Going Private transaction and recorded in the application of the purchase method of accounting. |
| (c) | Three and six month 2010 amounts include a $0.4 million decrease in income and a $0.1 million increase in income, respectively, resulting from unrealized foreign currency gains and losses on long-term debt transactions.  Three and six month 2009 amounts include increases in income of $1.0 million and $0.4 million, respectively, resulting from unrealized foreign currency gains and losses on long-term debt transactions.                                                              |
| (d) | Volumes include ethanol pipeline volumes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (e) | Includes Pacific, Plantation, Calnev, Central Florida, Cochin and Cypress pipeline volumes.                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (f) | Represents total ethanol volumes, including ethanol pipeline volumes.                                                                                                                                                                                                                                                                                                                                                                                                                                        |

----

|                                             |   | EBDAincrease/(decrease)           |   |   | Revenuesincrease/(decrease) |   |
|--------------------------------------------------|--------|-----------------------------------|--------|--------|-----------------------------|--------|
|                                             |   | (In millions, except percentages) |   |
| Pacific operations                               |   | $                                 | 13.4   |   |                        |   | 20 |   % |   | $ | 14.9 |   |   |   | 15 |   % |
| Southeast Terminals                              |   |                              | 7.6    |   |                        |   | 56 |   % |   |   | 6.0 |   |   |   | 30 |   % |
| Transmix operations                              |   |                              | 4.2    |   |                        |   | 60 |   % |   |   | 1.3 |   |   |   | 13 |   % |
| West Coast Terminals                             |   |                              | 3.5    |   |                        |   | 22 |   % |   |   | 2.7 |   |   |   | 12 |   % |
| Central Florida Pipeline                         |   |                              | 2.9    |   |                        |   | 21 |   % |   |   | 0.5 |   |   |   | 3 |   % |
| Cochin Pipeline                                  |   |                              | (9.5   | )      |                        |   | (68 | ) % |   |   | (7.7 | ) |   |   | (45 | ) % |
| All others (including intrasegment eliminations) |   |                              | 1.2    |   |                        |   | 5 |   % |   |   | 1.9 |   |   |   | 8 |   % |
| Total Products Pipelines–KMP               |   | $                                 | 23.3   |   |                        |   | 15 |   % |   | $ | 19.6 |   |   |   | 9 |   % |

|                                             |   | EBDAincrease/(decrease)           |   |   | Revenuesincrease/(decrease) |   |
|--------------------------------------------------|--------|-----------------------------------|--------|--------|-----------------------------|--------|
|                                             |   | (In millions, except percentages) |   |
| Pacific operations                               |   | $                                 | 23.1   |   |                        |   | 18 |   % |   | $ | 25.6 |   |   |   | 14 |   % |
| Southeast Terminals                              |   |                              | 12.2   |   |                        |   | 49 |   % |   |   | 10.8 |   |   |   | 29 |   % |
| West Coast Terminals                             |   |                              | 4.7    |   |                        |   | 14 |   % |   |   | 3.8 |   |   |   | 8 |   % |
| Transmix operations                              |   |                              | 4.4    |   |                        |   | 32 |   % |   |   | 1.5 |   |   |   | 8 |   % |
| Central Florida Pipeline                         |   |                              | 4.1    |   |                        |   | 16 |   % |   |   | 1.5 |   |   |   | 5 |   % |
| Cochin Pipeline                                  |   |                              | (12.1  | )      |                        |   | (48 | ) % |   |   | (7.9 | ) |   |   | (29 | ) % |
| All others (including intrasegment eliminations) |   |                              | 4.8    |   |                        |   | 10 |   % |   |   | 3.6 |   |   |   | 8 |   % |
| Total Products Pipelines–KMP               |   | $                                 | 41.2   |   |                        |   | 14 |   % |   | $ | 38.9 |   |   |   | 10 |   % |

|   | ▪ | increases of $13.4 million (20%) and $23.1 million (18%), respectively, from the Pacific operations—driven by (i) increased mainline delivery revenues, due to higher average tariffs partly offset by decreases in mainline delivery volumes of 1.5% and 2%, respectively; and (ii) increased terminal revenues, due to incremental ethanol handling services that were due in part to mandated increases in ethanol blending rates in California since the end of the second quarter of 2009; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | increases of $7.6 million (56%) and $12.2 million (49%), respectively, from the Southeast terminal operations—related largely to higher revenues attributable to both increased ethanol throughput and higher product inventory sales at higher prices; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | increases of $4.2 million (60%) and $4.4 million (32%), respectively, from the Transmix processing operations—due largely to incremental liquids product inventory gains of $5.1million, recognized pursuant to a periodic physical inventory completed in the second quarter of 2010; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | increases of $3.5 million (22%) and $4.7 million (14%), respectively, from the West Coast terminal operations—driven by higher warehousing revenues at the combined Carson/Los Angeles Harbor terminal system, incremental biodiesel revenues from the liquids facilities located in Portland, Oregon, and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | incremental earnings contributions from the terminals’ Portland, Oregon Airport pipeline, which was acquired on July 31, 2009; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | increases of $2.9 million (21%) and $4.1 million (16%), respectively, from the Central Florida Pipeline—driven by incremental product inventory gains, and for the comparable six month periods, by higher ethanol revenues and higher refined products delivery revenues; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | decreases of $9.5 million (68%) and $12.1 million (48%), respectively, from the Cochin pipeline system—attributable to a 51% decrease in total pipeline throughput volumes quarter-to-quarter, and for the comparable six month periods, attributable to both higher operating expenses and lower other non-operating income.  The decreases in earnings from higher operating expenses and lower non-operating income were primarily related to favorable settlements reached in the first quarter of 2009 with the seller of the remaining approximate 50.2% interest in the Cochin pipeline system that KMP purchased on January 1, 2007. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                    |   | Three Months EndedJune 30,       |    |   | Six Months EndedJune 30, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|--------|------------------------------------|--------|
|                                                                                                                                                                                    |   | 2010                                       |    |   | 2009                               |   |   | 2010 |   |   | 2009 |   |
|                                                                                                                                                                                    |   | (In millions, except operating statistics) |    |
| Revenues(a)                                                                                                                                                                             |   | $                                          | 1,029.7 |   |                               |   | 860.7 |   |   |   | 2,266.4 |   |   |   | 1,912.4 |   |
| Operating expenses(b)                                                                                                                                                                   |   |                                       | (884.7  | )      |                               |   | (739.1 | ) |   |   | (1,936.2 | ) |   |   | (1,629.6 | ) |
| Other expense(c)                                                                                                                                                                        |   |                                       | (0.5    | )      |                               |   | (0.3 | ) |   |   | (0.5 | ) |   |   | (1.1 | ) |
| Earnings from equity investments                                                                                                                                                        |   |                                       | 40.1    |   |                               |   | 29.4 |   |   |   | 73.9 |   |   |   | 56.0 |   |
| Interest income and Other, net-income                                                                                                                                                   |   |                                       | 0.1     |   |                               |   | 12.6 |   |   |   | 2.3 |   |   |   | 27.3 |   |
| Income tax expense                                                                                                                                                                      |   |                                       | (0.1    | )      |                               |   | (1.3 | ) |   |   | (0.7 | ) |   |   | (3.0 | ) |
| Earnings before depreciation, depletion and amortization expense and amortization of excess cost of equity investments |   | $                                          | 184.6   |   |                               |   | 162.0 |   |   |   | 405.2 |   |   |   | 362.0 |   |
|                                                                                                                                                                                    |   |                                       |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas transport volumes (Bcf)(d)                                                                                                                                                  |   |                                       | 634.6   |   |                               |   | 541.8 |   |   |   | 1,268.3 |   |   |   | 1,050.2 |   |
| Natural gas sales volumes (Bcf)(e)                                                                                                                                                      |   |                                       | 199.0   |   |                               |   | 198.1 |   |   |   | 388.0 |   |   |   | 401.8 |   |

| (a)  | Six month 2010 amount includes a $0.4 million increase in revenues from certain measurement period adjustments related to the October 1, 2009 natural gas treating business acquisition.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)  | Three and six month 2010 amounts include a $0.1 million unrealized loss (from an increase in natural gas purchase costs) and a $0.8 million unrealized gain (from a decrease in natural gas purchase costs), respectively, on derivative contracts used to hedge forecasted natural gas sales.  Three and six month 2009 amounts include decreases in income (from net increases in natural gas purchase costs) of $2.5 million and $3.8 million, respectively, resulting from unrealized mark to market gains and losses due to the discontinuance of hedge accounting at Casper Douglas.  Beginning in the second quarter of 2008, the Casper and Douglas gas processing operations discontinued hedge accounting, and the last of the related derivative contracts expired in December 2009.  Also, 2010 and 2009 amounts include increases in segment earnings of $0.1 million and $0.2 million, respectively, resulting from valuation adjustments related to derivative contracts in place at the time of the Going Private transaction and recorded in the application of the purchase method of accounting. |
| (c)  | 2010 amounts include $ 0.5 million decrease in segment earnings related to property disposal losses, which had been revalued as part of the Going Private transaction and recorded in the application of the purchase method of accounting.  Three- and six-month 2009 amounts include $ 0.3 million and $1.1 million, respectively, decrease in segment earnings related to assets sold, which had been revalued as part of the Going Private transaction and recorded in the application of the purchase method of accounting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (d)  | Includes Kinder Morgan Interstate Gas Transmission LLC, Trailblazer Pipeline Company LLC, TransColorado Gas Transmission Company LLC, Rockies Express Pipeline LLC, Midcontinent Express Pipeline LLC, Kinder Morgan Louisiana Pipeline LLC and Texas intrastate natural gas pipeline group pipeline volumes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| (e)       | Represents Texas intrastate natural gas pipeline group volumes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

----

|                                        |   | EBDAincrease/(decrease)           |   |   | Revenuesincrease/(decrease) |   |
|---------------------------------------------|--------|-----------------------------------|--------|--------|-----------------------------|--------|
|                                        |   | (In millions, except percentages) |   |
| Kinder Morgan Natural Gas Treating          |   | $                                 | 10.6   |   |                        |   | n/a |   |   | $ | 15.3 |   |   |   | n/a |   |
| Midcontinent Express Pipeline               |   |                              | 6.7    |   |                        |   | 957 |   % |   |   | - |   |   |   | - |   |
| Texas Intrastate Natural Gas Pipeline Group |   |                              | 2.9    |   |                        |   | 4 |   % |   |   | 132.9 |   |   |   | 17 |   % |
| Kinder Morgan Louisiana Pipeline            |   |                              | 2.8    |   |                        |   | 28 |   % |   |   | 17.0 |   |   |   | n/a |   |
| KinderHawk Field Services                   |   |                              | 1.7    |   |                        |   | n/a |   |   |   | - |   |   |   | - |   |
| Rockies Express Pipeline                    |   |                              | 1.6    |   |                        |   | 7 |   % |   |   | - |   |   |   | - |   |
| Kinder Morgan Interstate Gas Transmission   |   |                              | (7.5   | )      |                        |   | (22 | ) % |   |   | (4.2 | ) |   |   | (9 | ) % |
| All others                                  |   |                              | 1.7    |   |                        |   | 5 |   % |   |   | 8.0 |   |   |   | 18 |   % |
| Total Natural Gas Pipelines–KMP       |   | $                                 | 20.5   |   |                        |   | 12 |   % |   | $ | 169.0 |   |   |   | 20 |   % |

|                                        |   | EBDAincrease/(decrease)           |   |   | Revenuesincrease/(decrease) |   |
|---------------------------------------------|--------|-----------------------------------|--------|--------|-----------------------------|--------|
|                                        |   | (In millions, except percentages) |   |
| Kinder Morgan Natural Gas Treating          |   | $                                 | 21.1   |   |                        |   | n/a |   |   | $ | 30.4 |   |   |   | n/a |   |
| Midcontinent Express Pipeline               |   |                              | 12.1   |   |                        |   | 1,736 |   % |   |   | - |   |   |   | - |   |
| Kinder Morgan Louisiana Pipeline            |   |                              | 8.1    |   |                        |   | 43 |   % |   |   | 34.0 |   |   |   | n/a |   |
| Rockies Express Pipeline                    |   |                              | 2.2    |   |                        |   | 5 |   % |   |   | - |   |   |   | - |   |
| KinderHawk Field Services                   |   |                              | 1.7    |   |                        |   | n/a |   |   |   | - |   |   |   | - |   |
| Kinder Morgan Interstate Gas Transmission   |   |                              | (6.9   | )      |                        |   | (11 | ) % |   |   | (5.8 | ) |   |   | (7 | ) % |
| Texas Intrastate Natural Gas Pipeline Group |   |                              | (6.1   | )      |                        |   | (4 | ) % |   |   | 274.2 |   |   |   | 16 |   % |
| All others                                  |   |                              | 5.5    |   |                        |   | 8 |   % |   |   | 20.9 |   |   |   | 23 |   % |
| Intrasegment eliminations                   |   |                              | -      |   |                        |   | - |   |   |   | (0.1 | ) |   |   | (18 | ) % |
| Total Natural Gas Pipelines–KMP       |   | $                                 | 37.7   |   |                        |   | 10 |   % |   | $ | 353.6 |   |   |   | 18 |   % |

|   | ▪ | an increase of $2.9 million (4%) and a decrease of $6.1 million (4%), respectively, from the Texas intrastate natural gas pipeline group.  For the comparable three month periods, the increase in earnings was driven primarily by higher margins from proprietary storage activities and natural gas processing activities, and partly offset by lower margins from natural gas sales activities.  For the comparable six month periods, the overall decrease in earnings was primarily impacted by lower natural gas sales volumes and margins, lower margins from proprietary storage activities, and lower interest income due to a one-time natural gas loan to a single customer in 2009.  The decrease in earnings compared to the first half of 2009 was partially offset by higher natural gas processing margins; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | ▪ | increases of $2.8 million (28%) and $8.1 million (43%), respectively, from KMP’s fully-owned Kinder Morgan Louisiana natural gas pipeline system.  The Kinder Morgan Louisiana pipeline system commenced limited natural gas transportation service in April 2009, and construction was fully completed and transportation service on the system’s remaining portions began in full on June 21, 2009.  The overall increases in earnings included increases of $13.2 million and $26.4 million, respectively, in system operating income (revenues less operating expenses), due mainly to incremental transportation service, and decreases of $10.4 million and $18.3 million, respectively, in non-operating other income (primarily consisting of higher non-cash allowances for capital funds used during construction in the 2009 time periods; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | increases of $1.7 million and $1.7 million, respectively, due to incremental second quarter 2010 equity earnings from KMP’s 50%-owned KinderHawk Field Services LLC.  KMP acquired its 50% ownership interest on May 21, 2010, and the joint venture’s operations include natural gas gathering and treating in the Haynesville shale gas formation located in northwest Louisiana; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | increases of $1.6 million (7%) and $2.2 million (5%), respectively, from KMP’s 50%-owned Rockies Express pipeline system—largely attributable to the completion and start-up of the Rockies Express-East pipeline segment, the third and final phase of the Rockies Express system.  It began initial pipeline service on June 29, 2009, and began full operations on November 12, 2009. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | The operating results for the first half of 2010 were negatively impacted by a portion of the Rockies Express-East pipeline segment being shutdown due to a pipeline girth weld failure that occurred on November 14, 2009. Partial service was restored on January 27, 2010, with full service being restored on February 6, 2010. The shutdown cost KMP approximately $15 million in demand charge credits in the first quarter of 2010; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | decreases of $7.5 million (22%) and $6.9 million (11%), respectively, from the Kinder Morgan Interstate Gas Transmission pipeline system—due largely to lower earnings from short-term natural gas balancing services (those services that offer shippers the option to store or withdraw natural gas as needed in order to manage overall gas supply), and lower volumes and prices for net fuel recoveries. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                   |   | Three Months EndedJune 30,                 |   |   | Six Months EndedJune 30, |   |
|------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|--------|--------------------------|--------|
|                                                                                                                   |   | 2010                                       |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                                                                                                                   |   | (In millions, except operating statistics) |   |
| Revenues(a)                                                                                                            |   | $                                          | 327.9  |   |                     | $      | 282.4 |   |   | $ | 663.1 |   |   | $ | 535.6 |   |
| Operating expenses                                                                                                     |   |                                       | (72.6  | )      |                     |   | (59.3 | ) |   |   | (151.7 | ) |   |   | (125.9 | ) |
| Earnings from equity investments                                                                                       |   |                                       | 6.5    |   |                     |   | 5.1 |   |   |   | 13.0 |   |   |   | 10.9 |   |
| Interest income and other, net-income                                                                                  |   |                                       | 1.9    |   |                     |   | - |   |   |   | 1.9 |   |   |   | - |   |
| Income tax benefit (expense)                                                                                           |   |                                       | (1.0   | )      |                     |   | (1.3 | ) |   |   | 3.0 |   |   |   | (2.0 | ) |
| Earnings before depreciation, depletion and amortization expense and amortization of excess cost of equity investments |   | $                                          | 262.7  |   |                     | $      | 226.9 |   |   | $ | 529.3 |   |   | $ | 418.6 |   |
|                                                                                                                   |   |                                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Carbon dioxide delivery volumes (Bcf)(b)                                                                               |   |                                       | 191.6  |   |                     |   | 188.7 |   |   |   | 382.6 |   |   |   | 401.4 |   |
| SACROC oil production (gross)(MBbl/d)(c)                                                                               |   |                                       | 29.1   |   |                     |   | 31.1 |   |   |   | 29.5 |   |   |   | 30.6 |   |
| SACROC oil production (net)(MBbl/d)(d)                                                                                 |   |                                       | 24.2   |   |                     |   | 25.9 |   |   |   | 24.6 |   |   |   | 25.5 |   |
| Yates oil production (gross)(MBbl/d)(c)                                                                                |   |                                       | 24.3   |   |                     |   | 26.8 |   |   |   | 24.9 |   |   |   | 26.6 |   |
| Yates oil production (net)(MBbl/d)(d)                                                                                  |   |                                       | 10.8   |   |                     |   | 11.9 |   |   |   | 11.1 |   |   |   | 11.8 |   |
| Natural gas liquids sales volumes (net)(MBbl/d)(d)                                                                     |   |                                       | 10.1   |   |                     |   | 9.6 |   |   |   | 9.9 |   |   |   | 9.2 |   |
| Realized weighted average oil price per Bbl(e)(f)                                                                      |   | $                                          | 59.58  |   |                     | $      | 49.47 |   |   | $ | 60.05 |   |   | $ | 46.71 |   |
| Realized weighted average natural gas liquids price per Bbl(f)(g)                                                      |   | $                                          | 48.67  |   |                     | $      | 34.02 |   |   | $ | 51.78 |   |   | $ | 31.20 |   |

| (a) | Three and six month 2010 amounts include unrealized gains (from increases in revenues) of $7.9 million and $13.3 million, respectively, on derivative contracts used to hedge forecasted crude oil sales.  Also, amounts include increases in segment earnings resulting from valuation adjustments of $13.3 million and $26.7 million, respectively, for the three- and six-month periods ended June 30, 2010, and $24.2 million and $48.5 million, respectively, for the three- and six- month periods ended June 30, 2009, primarily related to derivative contracts in place at the time of the Going Private transaction and recorded in the application of the purchase method of accounting. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | Includes Cortez, Central Basin, Canyon Reef Carriers, Centerline and Pecos pipeline volumes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (c) | Represents 100% of the production from the field.  KMP owns an approximately 97% working interest in the SACROC unit and an approximately 50% working interest in the Yates unit.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (d) | Net to KMP, after royalties and outside working interests.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (e) | Includes all of KMP’s crude oil production properties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (f) | Hedge gains/losses for crude oil and natural gas liquids are included with crude oil.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (g) | Includes production attributable to leasehold ownership and production attributable to KMP’s ownership in processing plants and third party processing agreements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

|                                |   | EBDAincrease/(decrease)           |   |   | Revenuesincrease/(decrease) |   |
|-------------------------------------|--------|-----------------------------------|--------|--------|-----------------------------|--------|
|                                |   | (In millions, except percentages) |   |
| Oil and Gas Producing Activities    |   | $                                 | 21.9   |   |                        |   | 14 | % |   | $ | 37.5 |   |   |   | 18 |   % |
| Sales and Transportation Activities |   |                              | 16.9   |   |                        |   | 35 | % |   |   | 15.8 |   |   |   | 27 |   % |
| Intrasegment eliminations           |   |                              | -      |   |                        |   | - |   |   |   | (4.8 | ) |   |   | (52 | ) % |
| Total CO2–KMP                 |   | $                                 | 38.8   |   |                        |   | 19 | % |   | $ | 48.5 |   |   |   | 19 |   % |

----

|                                |   | EBDAincrease/(decrease)           |   |   | Revenuesincrease/(decrease) |   |
|-------------------------------------|--------|-----------------------------------|--------|--------|-----------------------------|--------|
|                                |   | (In millions, except percentages) |   |
| Oil and Gas Producing Activities    |   | $                                 | 95.3   |   |                        |   | 37 | % |   | $ | 119.4 |   |   |   | 31 |   % |
| Sales and Transportation Activities |   |                              | 23.9   |   |                        |   | 22 | % |   |   | 19.6 |   |   |   | 15 |   % |
| Intrasegment eliminations           |   |                              | -      |   |                        |   | - |   |   |   | (3.0 | ) |   |   | (13 | ) % |
| Total CO2–KMP                 |   | $                                 | 119.2  |   |                        |   | 32 | % |   | $ | 136.0 |   |   |   | 28 |   % |

|   | ▪ | increases of $34.8 million (17%) and $113.8 million (31%), respectively, in combined crude oil and natural gas plant products sales revenues, due largely to increases of 20% and 29%, respectively, in the realized weighted average price per barrel of crude oil, and increases of 43% and 66%, respectively, in the realized weighted average price per barrel of natural gas liquids.  KMP also benefitted from period-to-period increases in natural gas liquids sales volumes.  However, increases in crude oil revenues due to higher prices were somewhat offset by decreases in crude oil production volumes of 7% in the second quarter of 2010 and 4% in the first six months of 2010, when compared to the same periods a year ago; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | increases of $2.7 million (44%) and $5.6 million (47%), respectively, in other combined revenues, including natural gas sales, net profit interests and other service revenues.  The quarterly increase was driven by higher natural gas sales revenues in 2010, and for the comparable six month periods, the increase was driven by higher net profit interests revenues in 2010 (from KMP’s interest in the Snyder, Texas natural gas processing plant); and |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | decreases of $17.6 million (32%) and $26.2 million (21%), respectively, due to higher combined operating expenses.  The overall increases in expenses were driven by (i) increases of $11.5 million (177%) and $12.3 million (361%), respectively, in tax expenses, other than income tax expenses, due primarily to a $15.4 million reduction in severance tax expense in the second quarter of 2009 due to prior year overpayments; and (ii) increases of $6.3 million (14%) and $9.6 million (11%), respectively, in operating and maintenance expenses, due largely to increased natural gas processing volumes. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | increases of $15.5 million (41%) and $20.8 million (25%), respectively, in carbon dioxide sales revenues.  The period-to-period increases in sales revenues were primarily price related, and partly volume related.  The segment’s average price received for all carbon dioxide sales in the second quarter and first six months of 2010 increased 36% and 23%, respectively, and overall carbon dioxide sales volumes increased 4% and 1%, respectively, when compared to the same prior year periods; and |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | increases of $1.4 million (27%) and $2.1 million (19%), respectively, due to higher equity earnings from KMP’s 50% ownership interest in the Cortez Pipeline Company.  The increase reflects higher net income earned by Cortez in 2010, chiefly due to lower depreciation expense resulting from a lower depreciable pipeline property base relative to 2009. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                   | Three Months EndedJune 30,  |   | Six Months EndedJune 30, |
|------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|--------|-----------------------------------------|
|                                                                                                                   | 2010                                       |   | 2009                                    |   | 2010 |   | 2009 |
|                                                                                                                   | (In millions, except operating statistics) |
| Revenues                                                                                                               | $                                          | 320.5  |                                    |   | $ | 264.0 |   |   | $ | 624.6 |   |   | $ | 531.9 |   |
| Operating expenses(a)                                                                                                  |                                       | (160.7 |  )                                 |   |   | (123.9 |  ) |   |   | (316.6 |  ) |   |   | (257.5 |  ) |
| Other income (b)                                                                                                       |                                       | 8.5    |                                    |   |   | 0.8 |   |   |   | 9.8 |   |   |   | 1.3 |   |
| Earnings from equity investments                                                                                       |                                       | 0.4    |                                    |   |   | - |   |   |   | 0.6 |   |   |   | 0.1 |   |
| Interest income and Other, net-income (expense)                                                                        |                                       | (0.5   |  )                                 |   |   | 1.2 |   |   |   | 0.4 |   |   |   | 1.1 |   |
| Income tax expense                                                                                                     |                                       | (3.4   |  )                                 |   |   | (1.1 |  ) |   |   | (3.5 |  ) |   |   | (1.6 |  ) |
| Earnings before depreciation, depletion and amortization expense and amortization of excess cost of equity investments | $                                          | 164.8  |                                    |   | $ | 141.0 |   |   | $ | 315.3 |   |   | $ | 275.3 |   |
|                                                                                                                   |                                       |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Bulk transload tonnage (MMtons)(c)                                                                                     |                                       | 25.2   |                                    |   |   | 19.8 |   |   |   | 46.6 |   |   |   | 39.1 |   |
| Ethanol (MMBbl)                                                                                                        |                                       | 14.6   |                                    |   |   | 8.0 |   |   |   | 30.0 |   |   |   | 16.6 |   |
| Liquids leaseable capacity (MMBbl)                                                                                     |                                       | 58.2   |                                    |   |   | 55.1 |   |   |   | 58.2 |   |   |   | 55.1 |   |
| Liquids utilization %                                                                                                  |                                       | 95.8   | %                                       |   |   | 96.9 | % |   |   | 95.8 | % |   |   | 96.9 | % |

| (a)  | Three and six month 2010 amounts include increases in expense of $0.2 million and $0.6 million, respectively, related to storm and flood clean-up and repair activities.  Three and six month 2009 amounts include a $0.5 million decrease in expense associated with legal liability adjustments related to a litigation matter involving the Staten Island liquids terminal, and a $0.1 million increase in expense associated with environmental liability adjustments.                                               |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)  | Three and six month 2010 amounts include a $6.7 million casualty indemnification gain related to a 2008 fire at the Pasadena, Texas liquids terminal.  Also, 2010 amounts include a$0.7 million decrease in segment earnings, and the three and six month 2009 amounts include $1.9 million and $2.3 million, respectively, decrease in segment earnings; related to assets sold, which had been revalued as part of the Going Private transaction and recorded in the application of the purchase method of accounting. |
| (c)       | Volumes for acquired terminals are included for all periods.                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

----

|                                                                                                         |   | EBDAincrease/(decrease)           |   |   | Revenuesincrease/(decrease) |   |
|--------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|--------|-----------------------------|--------|
|                                                                                                         |   | (In millions, except percentages) |   |
| West                                                                                                         |   |                              | 2.3    |   |                        |   | 19 |   % |   |   | 8.6 |   |   |   | 44 | % |
| Mid-River                                                                                                    |   | $                                 | 3.3    |   |                        |   | 90 |   % |   | $ | 10.1 |   |   |   | 87 | % |
| Southeast                                                                                                    |   |                              | 2.9    |   |                        |   | 29 |   % |   |   | 5.1 |   |   |   | 23 | % |
| Gulf Coast                                                                                                   |   |                              | 2.4    |   |                        |   | 7 |   % |   |   | 3.5 |   |   |   | 8 | % |
| Ohio Valley                                                                                                  |   |                              | 2.9    |   |                        |   | 68 |   % |   |   | 4.9 |   |   |   | 36 | % |
| Texas Petcoke                                                                                                |   |                              | 2.0    |   |                        |   | 12 |   % |   |   | 4.4 |   |   |   | 13 | % |
| Lower River (Louisiana)                                                                                      |   |                              | (3.1   | )      |                        |   | (22 | ) % |   |   | 2.7 |   |   |   | 12 | % |
| All others (including intrasegment eliminations and unallocated income tax expense) |   |                              | (4.5   | )      |                        |   | (10 | ) % |   |   | 0.3 |   |   |   | - |   |
| Total Terminals–KMP                                                                                    |   | $                                 | 8.2    |   |                        |   | 6 |   % |   | $ | 39.6 |   |   |   | 15 | % |

|                                                                                                          |   | EBDAincrease/(decrease)           |   |   | Revenuesincrease/(decrease) |   |
|---------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|--------|-----------------------------|--------|
|                                                                                                          |   | (In millions, except percentages) |   |
| West                                                                                                          |   | $                                 | 10.5   |   |                        |   | 52 |   % |   | $ | 21.7 |   |   |   | 58 | % |
| Mid-River                                                                                                     |   |                              | 5.7    |   |                        |   | 76 |   % |   |   | 15.6 |   |   |   | 63 | % |
| Southeast                                                                                                     |   |                              | 4.5    |   |                        |   | 23 |   % |   |   | 8.6 |   |   |   | 20 | % |
| Gulf Coast                                                                                                    |   |                              | 3.9    |   |                        |   | 6 |   % |   |   | 6.4 |   |   |   | 7 | % |
| Ohio Valley                                                                                                   |   |                              | 3.0    |   |                        |   | 39 |   % |   |   | 6.5 |   |   |   | 25 | % |
| Texas Petcoke                                                                                                 |   |                              | (3.4   | )      |                        |   | (10 | ) % |   |   | (0.3 | ) |   |   | - |   |
| Lower River (Louisiana)                                                                                       |   |                              | (3.0   | )      |                        |   | (12 | ) % |   |   | 3.1 |   |   |   | 7 | % |
| All others (including intrasegment eliminations and unallocated income tax expenses) |   |                              | (3.3   | )      |                        |   | (4 | ) % |   |   | (0.6 | ) |   |   | - |   |
| Total Terminals–KMP                                                                                     |   | $                                 | 17.9   |   |                        |   | 6 |   % |   | $ | 61.0 |   |   |   | 11 | % |

----

|                                                                                                                                                 |   | Three Months EndedJune 30,       |   |   | Six Months EndedJune 30, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|--------|------------------------------------|--------|
|                                                                                                                                                 |   | 2010                                       |   |   | 2009                               |   |   | 2010 |   |   | 2009 |   |
|                                                                                                                                                 |   | (In millions, except operating statistics) |   |
| Revenues                                                                                                                                             |   | $                                          | 70.6   |   |                               | $      | 56.0 |   |   | $ | 130.4 |   |   | $ | 106.0 |   |
| Operating expenses                                                                                                                                   |   |                                       | (23.7  | )      |                               |   | (18.1 | ) |   |   | (43.2 | ) |   |   | (33.3 | ) |
| Earnings from equity investments                                                                                                                     |   |                                       | (0.6   | )      |                               |   | (0.6 | ) |   |   | (0.2 | ) |   |   | (0.3 | ) |
| Interest income and Other, net-income                                                                                                                |   |                                       | 1.8    |   |                               |   | 8.2 |   |   |   | 7.6 |   |   |   | 8.9 |   |
| Income tax benefit (expense)(a)                                                                                                                      |   |                                       | (4.2   | )      |                               |   | 1.2 |   |   |   | (5.7 | ) |   |   | (15.1 | ) |
| Earnings before depreciation, depletion and amortization expense and amortization of excess cost of equity investments |   | $                                          | 43.9   |   |                               | $      | 46.7 |   |   | $ | 88.9 |   |   | $ | 66.2 |   |
|                                                                                                                                                 |   |                                       |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Transport volumes (MMBbl)(b)                                                                                                                         |   |                                       | 28.3   |   |                               |   | 24.3 |   |   |   | 52.1 |   |   |   | 46.9 |   |

| (a)  | Three and six month 2009 amounts include a $3.7 million decrease in expense due to a certain non-cash accounting change related to book tax accruals made by the Express pipeline system.  Six month 2009 amount also includes a $14.9 million increase in expense primarily due to certain non-cash regulatory accounting adjustments to Trans Mountain’s carrying amount of the previously established deferred tax liability. |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)       | Represents Trans Mountain pipeline system volumes.                                                                                                                                                                                                                                                                                                                                                                                               |

|                                  | EBDAincrease/(decrease)           | RevenuesIncrease/(decrease) |
|---------------------------------------|-----------------------------------|-----------------------------|
|                                  | (In millions, except percentages) |
| Trans Mountain and Jet Fuel Pipelines |                              | $                           | (0.3 | ) |   |   | (1 | ) % |   | $ | 14.6 |   |   |   | 26 | % |
| Express Pipelines                     |                              |                        | 1.2 |   |   |   | 89 |   % |   |   | - |   |   |   | - |   |
| Total Kinder Morgan Canada–KMP  |                              | $                           | 0.9 |   |   |   | 2 |   % |   | $ | 14.6 |   |   |   | 26 | % |

|                                  | EBDAIncrease/(decrease)           | RevenuesIncrease/(decrease) |
|---------------------------------------|-----------------------------------|-----------------------------|
|                                  | (In millions, except percentages) |
| Trans Mountain and Jet Fuel Pipelines |                              | $                           | 10.2 |   |   |   | 14 |   % |   | $ | 24.4 |   |   |   | 23 | % |
| Express Pipeline                      |                              |                        | 1.3 |   |   |   | 27 |   % |   |   | - |   |   |   | - |   |
| Total Kinder Morgan Canada–KMP  |                              | $                           | 11.5 |   |   |   | 15 |   % |   | $ | 24.4 |   |   |   | 23 | % |

----

|                                       |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|--------------------------------------------|--------|-------------------------------------------|--------|--------|-----------------------------------------|--------|
|                                       |   | 2010                                      |   |   | 2009                                    |   |   | 2010 |   |   | 2009 |   |
|                                       |   | (In millions)                             |   |
| Earnings (loss) from equity investments(a) |   | $                                         | 8.4    |   |                                    | $      | 10.1 |   |   | $ | (411.2 | ) |   | $ | 22.4 |   |

| (a) | Six months ended June 30, 2010 amount includes a non-cash investment impairment charge of $430.0 million; see Note 2 of our consolidated financial statements included elsewhere in this report. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                               | Three Months EndedJune 30, |   | Six Months EndedJune 30, |   |
|----------------------------------------------------|-------------------------------------------|--------|-----------------------------------------|--------|
|                                               | 2010                                      |   | 2009                                    |   | 2010 |   | 2009 |   |
|                                               | (In millions)                             |   |
| Revenues(a)                                        |                                      | $      | 2.8                                     |   |   | $ | 12.4 |   |   | $ | 5.6 |   |   | $ | 19.0 |   |
| Operating expenses and noncontrolling interests(a) |                                      |   | (1.6                                    | )      |   |   | (11.1 | ) |   |   | (3.2 | ) |   |   | (16.6 | ) |
| Segment earnings before DD&A                   |                                      | $      | 1.2                                     |   |   | $ | 1.3 |   |   | $ | 2.4 |   |   | $ | 2.4 |   |

| (a) | Upon the adoption of Accounting Standards Update No. 2009-17, which amended the codification’s “Consolidation” topic, on January 1, 2010, Triton Power Company LLC is no longer consolidated into our financial statements, but is treated as an equity investment. This resulted in decreases to 2010 revenues, operating expenses and noncontrolling interests with no impact to segment earnings before DD&A as compared to 2009. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                     |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|--------------------------------------------------------------------------|--------|-------------------------------------------|--------|--------|-----------------------------------------|--------|
|                                                                     |   | 2010                                      |   |   | 2009                                    |   |   | 2010 |   |   | 2009 |   |
|                                                                     |   | (In millions)                             |   |
| Kinder Morgan, Inc. general and administrative expense                   |   | $                                         | 11.4   |   |                                    | $      | 11.5 |   |   | $ | 26.0 |   |   | $ | 21.9 |   |
| Kinder Morgan Energy Partners general and administrative expense(a) |   |                                      | 93.4   |   |                                    |   | 72.6 |   |   |   | 194.5 |   |   |   | 155.1 |   |
| Consolidated general and administrative expense                          |   | $                                         | 104.8  |   |                                    | $      | 84.1 |   |   | $ | 220.5 |   |   | $ | 177.0 |   |
|                                                                     |   |                                      |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net(b)                                                 |   | $                                         | 156.4  |   |                                    | $      | 139.3 |   |   | $ | 307.0 |   |   | $ | 281.3 |   |
| Other, net(c)                                                            |   |                                      | 6.7    |   |                                    |   | (0.2 | ) |   |   | 11.9 |   |   |   | 8.1 |   |
| Unallocable interest expense and other, net                              |   | $                                         | 163.1  |   |                                    | $      | 139.1 |   |   | $ | 318.9 |   |   | $ | 289.4 |   |
|                                                                     |   |                                      |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Net income attributable to noncontrolling interests                      |   | $                                         | 214.3  |   |                                    | $      | 79.3 |   |   | $ | 195.3 |   |   | $ | 108.9 |   |

| (a)  | Includes such items as salaries and employee-related expenses, payroll taxes, insurance, office supplies and rentals, unallocated litigation and environmental expenses, and shared corporate services.  Three and six month 2010 amounts include (i) increases in expense of $1.0 million and $2.4 million, respectively, for certain KMP asset and business acquisition costs and (ii) an increase in expense of $0.1 million and a decrease in expense of $0.2 million, respectively, related to KMP capitalized overhead costs associated with the 2008 hurricane season.  Six month 2010 amount also includes an increase in KMP legal expense of $1.6 million associated with certain items such as legal settlements and pipeline failures.  Three and six month 2009 amounts include decreases in expense of $0.9 million and $1.5 million, respectively, from KMP capitalized overhead costs associated with the 2008 hurricane season.  Six month 2009 amount also includes an increase in expense of $0.1 million for certain KMP asset and business acquisition costs that were capitalized under prior accounting standards. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)  | Three and six month 2010 amounts include increases in imputed interest expense of $0.2 million and $0.6 million, respectively, and three and six month 2009 amounts include increases in imputed interest expense of $0.3 million and $0.8 million, respectively, all related to KMP’s January 1, 2007 Cochin Pipeline acquisition.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (c)       | “Other, net” primarily represents offset to interest income shown above and included in segment earnings.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

----

----

----

----

|                                                                                          |   | At June 30, 2010          |   |
|-----------------------------------------------------------------------------------------------|--------|---------------------------|--------|
|                                                                                          |   | Short-termdebtoutstanding |   |   | Availableborrowingcapacity |   |
|                                                                                          |   | (In millions)             |   |
| Credit Facilities                                                                             |   |                      |   |   |   |   |
| Kinder Morgan, Inc.                                                                           |   |                      |   |   |   |   |
| $1.0 billion, six-year secured revolver, due May 2013                                         |   | $                         | 142.7  |   |   | $ | 787.1 |   |
|                                                                                     |   |                      |   |   |   |   |   |   |
| KMP                                                                                           |   |                      |   |   |   |   |   |   |
| $2.0 billion, three-year unsecured revolver, due June 2013 |   | $                         | 576.4  |   |   | $ | 1,201.4 |   |

----

|                                                 |   | Six Months EndedJune 30, |     |   |   |   |
|------------------------------------------------------|--------|------------------------------------|----------|--------|--------|--------|
|                                                 |   | 2010                               |     |   | 2009   |   |   | Increase(Decrease) |   |
|                                                 |   | (In millions)                      |     |
| Net cash provided by (used in):                      |   |                               |     |   |   |   |   |   |   |
| Operating activities                                 |   | $                                  | 735.3    |   |   | $      | 580.8 |   |   | $ | 154.5 |   |
| Investing activities                                 |   |                               | (1,682.2 | )      |   |   | (1,529.0 | ) |   |   | (153.2 | ) |
| Financing activities                                 |   |                               | 926.8    |   |   |   | 994.1 |   |   |   | (67.3 | ) |
|                                                 |   |                               |     |   |   |   |   |   |   |   |   |   |
| Effect of exchange rate changes on cash              |   |                               | (0.8     | )      |   |   | 2.5 |   |   |   | (3.3 | ) |
|                                                 |   |                               |     |   |   |   |   |   |   |   |   |   |
| Net (decrease) increase in cash and cash equivalents |   | $                                  | (20.9    | )      |   | $      | 48.4 |   |   | $ | (69.3 | ) |

|   | ▪ | a $133.4 million increase in cash from overall higher net income after adjusting for non-cash items, including a $430.0 million pre-tax impairment charge on our investment in NGPL PipeCo and a $158.0 million expense related to KMP rate case liability adjustments, both recorded in the first quarter of 2010.  The period-to-period increase in net income from our seven reportable business segments in the first six months of 2010 versus the first six months of 2009 is discussed above in “—Results of Operations” (including all of the certain items disclosed in the associated table footnotes); |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | ▪ | a $348.8 million increase in cash inflows relative to net changes in working capital items, primarily driven by (i) a $139.8 million decrease in cash used for income tax payments, net of refunds, (ii) a $129.3 million increase in net cash inflows from the collection and payment of trade and related party receivables and payables (including collections and payments on natural gas transportation and exchange imbalance receivables and payables) and (iii) a $42.8 million increase in cash from higher payments in the first half of 2009 for natural gas storage on KMP’s Kinder Morgan Texas Pipeline system; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a $20.0 million pension contribution made in 2009, offset slightly by $6.3 million of pension expenses; |
|--------|---------|---------------------------------------------------------------------------------------------------------|

|   | ▪ | a $190.8 million decrease in cash attributable to higher payments made in 2010 for transportation rate settlements, refunds and reparations made pursuant to certain legal settlements reached with various shippers on KMP’s Pacific operations’ refined products pipelines.  In May 2010, KMP paid $206.3 million to eleven of twelve shippers regarding the settlement of various transportation rate challenges filed with the Federal Energy Regulatory Commission (FERC) dating back as early as 1992.  In May 2009, KMP made refund and settlement payments totaling $15.5 million to various shippers in connection with certain East Line rate settlement agreements; and |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a $144.4 million decrease in cash from an interest rate swap termination payment KMP received in January 2009, when it terminated a fixed-to-variable interest rate swap agreement having a notional principal amount of $300 million and a maturity date of March 15, 2031. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a combined $1,129.3 million increase in cash used for the acquisition of assets and investments.  In the first six months of 2010, our cash outlays for strategic business acquisitions, through our subsidiary KMP, totaled $1,147.8 million, primarily consisting of the following: (i) $921.4 million for a 50% equity ownership interest in Petrohawk Energy Corporation’s natural gas gathering and treating business, (ii) $115.7 million for three unit train ethanol handling terminals acquired from US Development Group LLC in January 2010 and (iii) $97.0 million for terminal assets and investments acquired from Slay Industries in March 2010.  Each of these 2010 acquisitions is discussed further in Note 2 “Investments, Acquisitions, Joint Ventures and Divestitures” in our consolidated financial statements included elsewhere in this report. In the first half of 2009, our cash payments for acquired assets, through our subsidiary KMP, totaled $18.5 million, including $18.0 million for the acquisition of certain marine vessels from Megafleet Towing Co., Inc.; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a $109.6 million decrease in cash due to the full repayment received in the first half of 2009 from a loan KMP made in December 2008 to a single customer of its Texas intrastate natural gas pipeline group; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a $17.5 million increase in cash used resulting from the deconsolidation of Triton Power Company LLC from our consolidated financial statements upon the adoption of Accounting Standards Update No. 2009-17, which amended the codification’s “Consolidation” topic, on January 1, 2010.  Triton Power Company LLC is now treated as an equity investment (see Note 13 to our consolidated financial statements included elsewhere in this report); |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a $622.2 million decrease in cash used due to lower contributions to investments in the first six months of 2010.  The decrease was driven by a $628.2 million decrease in combined contributions made to KMP’s equity investments in Rockies Express Pipeline LLC, Midcontinent Express Pipeline LLC, and Fayetteville Express Pipeline LLC in the first half of 2010, largely due to incremental contributions made in the first half of 2009 to partially fund KMP’s respective share of the Rockies Express, Midcontinent Express, and Fayetteville Express pipeline system construction and/or pre-construction costs; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a $335.4 million decrease in cash used for capital expenditures in the first six months of 2010—largely due to the higher investment undertaken in the first half of 2009 to construct KMP’s Kinder Morgan Louisiana Pipeline and to expand and improve the Terminals-KMP business segment; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a $103.4 million increase in cash due to higher capital distributions (distributions in excess of cumulative earnings) received from equity investments in the first half of 2010, primarily related to distributions received from KMP’s equity investments in Rockies Express Pipeline LLC, Midcontinent Express Pipeline LLC and Fayetteville Express Pipeline LLC and from our equity investment in NGPL PipeCo LLC; and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | ▪ | a $26.5 million increase in cash primarily due to higher net proceeds received in the first six months of 2010 from property sales and casualty insurance settlements, mainly related to insurance indemnifications received for (i) assets damaged during the 2008 hurricane season, (ii) property damaged at KMP’s Pasadena, Texas liquids terminal facility from a fire in September 2008 and (iii) a marine vessel dock damaged at KMP’s International Marine Terminals facility in March 2008. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a $236.3 million decrease in cash provided by noncontrolling interest contributions primarily reflecting the $433.2 million in combined proceeds received by KMP for the issuance of approximately 6.7 million common units in the first half of 2010 versus the $669.5 million in combined proceeds it received from the sales of approximately 14.0 million additional common units in the first half of 2009; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a $175.0 million increase in cash used to pay dividends; |
|--------|---------|----------------------------------------------------------|

|   | ▪ | a $46.7 million increase in cash used for noncontrolling interest distributions, primarily due to an increase in KMP’s cash distributions to its common unit owners; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a $361.0 million increase in cash from overall debt financing activities—which include issuances and payments of debt and debt issuance costs.  The period-to-period increase in cash from overall debt financing activities was primarily due to (i) a $501.4 million increase in cash due to net commercial paper borrowings by KMP in the first half of 2010 (KMP had no commercial paper borrowings during the first six months of 2009) and (ii) the $250.0 million KMP paid on February 1, 2009 to retire the principal amount of its 6.30% senior notes that matured on that date, partially offset by (i) $325.0 million of lower net borrowings under KMP’s bank credit facility and (ii) a $44.5 million decrease in net borrowings under Kinder Morgan Inc.’s bank credit facility. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | The incremental cash inflows of $993.1 million from KMP’s issuances of additional senior notes in the first half of 2010 (discussed in Note 4 of our consolidated financial statements included elsewhere in this report) were offset by the $993.3 million proceeds KMP received, after underwriting discounts and commissions, from the issuance of an aggregate $1 billion in principal amount of senior notes in two separate series in May 2009; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ▪ | a $29.6 million increase in cash from net changes in cash book overdrafts—resulting from timing differences on checks issued but not yet presented for payment. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

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

|   | • | changes in tariff rates charged by NGPL or those of KMP’s pipeline subsidiaries implemented by the Federal Energy Regulatory Commission, or other regulatory agencies or the California Public Utilities Commission or other regulatory agencies; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | • | difficulties or delays experienced by railroads, barges, trucks, ships or pipelines in delivering products to or from KMP’s terminals or pipelines; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | • | changes in crude oil and natural gas production from exploration and production areas that we or KMP serve, such as the Permian Basin area of West Texas, the U.S. Rocky Mountains and the Alberta, Canada oil sands; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

|   | • | acts of nature, sabotage, terrorism or other similar acts causing damage greater than our insurance coverage limits; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------|

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

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

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

|   | • | our ability to achieve cost savings and revenue growth; |
|--------|---------|---------------------------------------------------------|

|   | • | foreign exchange fluctuations; |
|--------|---------|--------------------------------|

|   | • | the timing and extent of changes in commodity prices for oil, natural gas, electricity and certain agricultural products; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------|

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|   | • | the extent of KMP’s success in discovering, developing and producing oil and gas reserves, including the risks inherent in exploration and development drilling, well completion and other development activities; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | engineering and mechanical or technological difficulties that KMP may experience with operational equipment, in well completions and workovers, and in drilling new wells; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the uncertainty inherent in estimating future oil and natural gas production or reserves that KMP may experience; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------|

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

|   | • | the timing and success of KMP’s and our business development efforts; and |
|--------|---------|---------------------------------------------------------------------------------|

|   | • | unfavorable results of litigation and the fruition of contingencies referred to in Note 11 to our consolidated financial statements included elsewhere in this report. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 4.1   | —     | Certain instruments with respect to the long-term debt of Kinder Morgan, Inc. and its consolidated subsidiaries that relate to debt that does not exceed 10% of the total assets of Kinder Morgan, Inc. and its consolidated subsidiaries are omitted pursuant to Item 601(b) (4) (iii) (A) of Regulation S-K, 17 C.F.R. sec.229.601. Kinder Morgan, Inc. hereby agrees to furnish supplementally to the Securities and Exchange Commission a copy of each such instrument upon request.  |
|--------|-------|---------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 31.1* | —     | Certification by CEO pursuant to Rule 13a-14 or 15d-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                      |
|   | 31.2* | —     | Certification by CFO pursuant to Rule 13a-14 or 15d-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                      |
|   | 32.1* | —     | Certification by CEO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                            |
|   | 32.2* | —     | Certification by CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                 |

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|    | KINDER MORGAN, INC. |
|--------------|---------------------|
|    |                |   | Registrant |

| Date: August 9, 2010 |   |   |   | By:    |   | /s/ Kimberly A. Dang                                                                                   |
|----------------------|--------|--------|--------|--------|--------|--------------------------------------------------------------------------------------------------------|
|                 |   |   |   |   |   | Kimberly A. DangVice President and Chief Financial Officer(Principal Financial and Accounting Officer) |

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