Slide 1: Acquisition of El Paso Corporation
KINDER/MORGAN Investor Presentation Acquisition of El Paso Corporation October 16, 2011
Slide 2: Additional information and forward-looking statements
KINDER/MORGAN ‘ence Morgan, PRUE) ln tne SEC a Raglan Stn on Frm -4 icant vn prooned anacton, nd Kan aca Carport ‘EEPy pnt te vantneSE¢ saat the specs secahaans Jon enyeemain Satoanmaseects comer vate test ansacion ME ‘onasea maencron sna RELATED WATTERS” MvESTORS AND ECUNTY HOLDEES ARE URGED 70 REA
Slide 3: Merger Creates the Largest Midstream Energy Company in North America
KINDERJMORGAN Merger Creates the Largest Midstream Energy Company in North America
Slide 4: Largest Natural Gas Pipeline Company in North America
KINDER/MORGAN Largest Natural Gas Pipeline Company in North America
Slide 5: Largest Midstream Energy Company in North America
KINDERJMORGAN Large: Midstream Energy Company in North America = Enterprise Value = ~$94 billion = Largest transporter of natural gas in the U.S. — Own an interest in / operate approximately 67,000 miles of interstate / intrastate pipeline — / Connected to most importanitnatural gas shale plays incl
Slide 6: Transaction Overview
KINDER/MORGAN Transaction Overview = KMI will acquire all of the outstanding common stock of EP — $14.65 in cash; 0.4187 shares of KM common stock and 0.640 KMI warrants for each EP share — Warrants will have a duration of 5 years and a strike price of $40.00 — Warrants estimated to have a total val
Slide 7: Strategic Combination
KINDER/MORGAN Strategic Combination ‘Acquisition delivers meaningful accretion, both immediate and long-term, to KMI shareholders as well as to KMP, KMR and EPB unitholders and shareholders Creates the largest midstream and natural gas pipeline company in North America — Fourth largest energy compan
Slide 8: KMI Remains a General Partner
KINDER/MORGAN KMI Remains a General] Partner = Sell El Paso's exploration and production assets — _ Sale process to begin immediately — _ EP Net Operating Loss maximizes after-tax proceeds — Proceeds substantially reduce acquisition debt = Drop-down El Paso’s pipeline assets into both KMP and EPB —_
Slide 9: Not Our First Rodeo
KINDER/MORGAN Not Our First Rodeo KMI has proved its ability to execute significant transactions th downs to delever, and the realization of meaningful cost savings \clude asset sales and drop- = Santa Fe Pacific Partners in 1997 — $1.4 billion acquisition (KMP enterprise value at the time was ~$630
Slide 10: KMI Remains Focused on Cash Flows
KINDER/MORGAN KMI Remains Focused on Cash Flows = Pure GP holding company by 2015 — Assets to consist almost exclusively of GP interests in KMP and EPB and ownership of KMP, EPB units and KMR shares = Immediately accretive to distributable cash flow — 2012E dividend per share expected to increase to
Slide 11: Enhanced Cash Flow Stability
KINDER/MORGAN Enhanced Cash Flow Stability = Stable FERC-regulated, fee-based, long-haul, interstate pipeline revenue will constitute the largest portion of Kinder Morgan's pro forma cash flow profile = Cash flow stability supported by scale and scope of combined company’s comprehensive infrastructu
Slide 12: "Drop-downs" Create Additional Growth for MLPs
KINDER/MORGAN “Drop-downs” Create Additional Growth for MLPs = KMP — _ Increases KMP’s long-term expected distribution growth rate from 5.0% to ~7.0% — Further enhances the stability of cash flows through FERC regulated fee-based pipeline assets — Expect to finance a significant portion of drop-down
Slide 13: Commitment to Maintain Strong Balance Sheet
Commitment to Maintain Strong Balance Sheet = Kinder Morgan is committed to maintain a strong balance sheet and credit ratings across its family of companies = KiMllis expected to achieve leverage levels below its current level of ~2.5x by 2013, = Consolidated leverage at approximately 4.0x by 2014
Slide 14: Our Strategy Remains the Same
KINDER/MORGAN Our Strategy Remains the Same Focus on stable fee-based assets that are core to North American energy infrastructure — Market leader in each of our business segments Control costs — _Itsthe investors’ money, not management's — treat it that way Leverage asset footprint to seek attracti
Slide 15: KINDER/MORGAN
KINDER/MORGAN
Slide 16: Significant Historical Returns
KINDER/MORGAN Significant Historical Returns @ KMP: 25% CAGR Since ‘96 (») KMR: 13% CAGR Since ‘01 (¢) Batre ‘ozs ance SN: mss = sa18 KM $2500 $375 a $2.00 00 31,500 525 si,av0 + = 5180 soo sis — so ot “Total Return 2010 2year year Sy KM 2% Teh 61% 105% kM Eo 1 ‘SEP S00 Index 1k o% 12% ‘Alerian MLP
Slide 17: Promises Made, Promises Kept
KINDER/MORGAN Promi 's Made, Promises Kept KMP Budgeted KMP Actual 7
Slide 18: Transaction Timeline
Transaction Timeline = E&P sale process to begin immediately = Integration plan will be put in place immediately = Expect Q1 2012 shareholder meeting = Expect Q2 2012 closing = Antitrust approval required KINDER/MORGAN 18
Slide 19: Tremendous Value Creation
KINDER/MORGAN Tremendous Value Creation = Meaningful accretion to KMI, KMP, KMR and EPB = Very attractive investor return profiles of yield and growth in all four securities: KMI, KMP, KMR and EPB = Largest midstream and fourth largest energy company in North America = Unparalleled asset footprint m
Slide 20: KINDER/MORGAN
KINDER/MORGAN