Bear Stearns2005 Energy Credit Conference

March 29, 2005

2

This presentation contains forward looking statements, includingThis presentation contains forward looking statements, including these, within the meaning of these, within the meaning of Section 27A of the Securities Act of 1933, as amended and SectioSection 27A of the Securities Act of 1933, as amended and Section 21E of the Exchange Act n 21E of the Exchange Act of 1934, as amended. Forward looking statements are not guarantof 1934, as amended. Forward looking statements are not guarantees of performance. They ees of performance. They involve risks, uncertainties and assumptions. The future resultinvolve risks, uncertainties and assumptions. The future results and securities values of s and securities values of Kinder Morgan Inc., Kinder Morgan Energy Partners, L.P. and KindKinder Morgan Inc., Kinder Morgan Energy Partners, L.P. and Kinder Morgan Management, er Morgan Management, LLC (collectively known as LLC (collectively known as ““Kinder MorganKinder Morgan””) may differ materially from those expressed in ) may differ materially from those expressed in the forwardthe forward--looking statements contained throughout this presentation and inlooking statements contained throughout this presentation and in documents filed documents filed with the SEC. Many of the factors that will determine these reswith the SEC. Many of the factors that will determine these results and values are beyond ults and values are beyond Kinder Morgan's ability to control or predict. These statementsKinder Morgan's ability to control or predict. These statements are necessarily based upon are necessarily based upon various assumptions involving judgments with respect to the futuvarious assumptions involving judgments with respect to the future, including, among others, re, including, among others, the ability to achieve synergies and revenue growth; national, ithe ability to achieve synergies and revenue growth; national, international, regional and local nternational, regional and local economic, competitive and regulatory conditions and developmentseconomic, competitive and regulatory conditions and developments; technological ; technological developments; capital markets conditions; inflation rates; interdevelopments; capital markets conditions; inflation rates; interest rates; the political and est rates; the political and economic stability of oil producing nations; energy markets; weaeconomic stability of oil producing nations; energy markets; weather conditions; ther conditions; environmental conditions; business and regulatory or legal decisenvironmental conditions; business and regulatory or legal decisions; the pace of ions; the pace of deregulation of retail natural gas and electricity and certain aderegulation of retail natural gas and electricity and certain agricultural products; the timing gricultural products; the timing and success of business development efforts; terrorism; and otheand success of business development efforts; terrorism; and other uncertainties. You are r uncertainties. You are cautioned not to put undue reliance on any forwardcautioned not to put undue reliance on any forward--looking statement. looking statement.

Forward Looking Statements

3

Kinder Morgan System Map

Kinder Morgan HeadquartersHouston, Texas

CO2 PipelinesCO2 FieldTerminalsProducts PipelinesProducts Pipeline TerminalsTransmix FacilitiesNatural Gas PipelinesNatural Gas StorageNatural Gas PlantsIndicates # of Facilities(2,3,8)

KMPKMP

NGPLNGPL StorageNatural Gas PipelinesNatural Gas StorageGas-Fired Power PlantsRetail Natural Gas Division

KMIKMI

2

2

2

4

8

2

2

2

2

KMCO2

PACIFIC COCHIN

PACIFIC

PACIFIC

CALNEV

NORTH

PLANTATION

CFPL

KMIGT

KMTP

KM TEJAS

2

NGPL

3

2

4

2

2

2

MONTERREY

2

4

Kinder Morgan: Three Securities

(a) KMEP market cap based on 153 million common units at a price of $44.75 and 55 million KMR i-units at a price of $40.48 as of March 24, 2005. Debt balance, as of December 31, 2004, excluding the fair value of interest rate swaps, net of cash.

(b) KMI market cap based on 125 million shares at $74.91 as of March 24, 2005. Market equity also includes $284 million of capital trust securities (TRUPS). Debt balance as of December 31, 2004, excluding fair value of interest rate swaps and cash from sale of TransColorado, net of other cash.

(c) Includes 5.3 million Class B units owned by KMI. Class B units are unlisted KMP common units.

20 mm20 mm133 mm133 mm40 mm40 mm15 mm15 mm

CashCashDistributionDistribution

Additional Additional SharesShares

KMIKMIKMI Public Float

Public Public FloatFloat KMIKMIKMI

Kinder Morgan Energy Partners Kinder Morgan Energy Partners Market Equity Market Equity (a)(a) $9.1$9.1Debt Debt (a)(a) 4.7 4.7 Enterprise ValueEnterprise Value $13.8$13.8

2005E EBITDA2005E EBITDA $1,581 mm$1,581 mm2005E Dist. CF2005E Dist. CF $1,178 mm$1,178 mm

KMRKMR(LLC)(LLC)

55 million i55 million i--units units (a)(a)

KMPKMP(Partnership)(Partnership)

153 million units 153 million units (a,c)(a,c)

Kinder Morgan, Inc Kinder Morgan, Inc Market Equity Market Equity (b)(b) $9.6$9.6Debt Debt (b)(b) 2.72.7Enterprise Value Enterprise Value $12.3$12.3

2005E EBITDA2005E EBITDA $1,142 mm$1,142 mm2005E Dist. CF2005E Dist. CF $623 mm$623 mm

KMIKMI(Inc)(Inc)

125 million shares125 million shares

MgmtMgmtMgmtPublic Float

Public Public FloatFloat

28 mm28 mm97 mm97 mm

Incentive Incentive DistributionDistribution

5

2005 Corporate Goals

KMP/KMRKMP/KMR

Distribution TargetDistribution Target (without acquisitions)(without acquisitions)

$3.13 per unit (9% growth)$3.13 per unit (9% growth) Excess coverage of $39 millionExcess coverage of $39 million

Strengthen balance sheetStrengthen balance sheet

Budgeted Expansions: Budgeted Expansions: 85% equity, 15% debt85% equity, 15% debt

New acquisitions: New acquisitions: 60% equity, 40% debt60% equity, 40% debt

KMIKMI

EPS TargetEPS Target (without acquisitions)(without acquisitions)

$4.22 per share (11% growth)$4.22 per share (11% growth)

Maintain strong balance sheetMaintain strong balance sheet

Return cash to investorsReturn cash to investors

6

Consistent Track Record

Debt to Total Capital Debt to Total Capital (b)(b)

31%39%

54% 51%48%39%

46%49% 46% 51% 52%61%

67%

43% 39%47%

0%

20%

40%

60%

80%

100%

1997 1998 1999 2000 2001 2002 2003 2004 2005E

KMP KMI

(a) Declared 4Q distribution annualized (i.e. multiplied by four)(b) Excludes loss/gains in Other Comprehensive Income related to hedges; KMI 2004 excludes cash on hand from TransColorado sale

KMI Earnings Per ShareKMI Earnings Per Share

CAGR = 34% $4.22$3.81

$3.33$2.84

$1.96$1.28

$0.74

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

1999 2000 2001 2002 2003 2004 2005E

$3.20$2.96$2.72

$2.50$2.20

$1.90

$1.45$1.30$1.13

$0.63

$0.00

$1.00

$2.00

$3.00

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005E

CAGR = 20%

Total Distributions (GP + LP) ($mm)Total Distributions (GP + LP) ($mm)

$0

$200

$400

$600

$800

$1,000

$1,200

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005E

GPLP

CAGR = 60%

$17 $30$153 $198

$333

$548

$701$827

$978

KMP Distribution / Unit KMP Distribution / Unit (a)(a)

$1,139

7

The Kinder Morgan Strategy

Focus on stable, feeFocus on stable, fee--based assets which are core to the energy infrastructure based assets which are core to the energy infrastructure of growing marketsof growing markets

Increase utilization of assets while controlling costsIncrease utilization of assets while controlling costs

Classic fixed cost businesses with little variable costs Classic fixed cost businesses with little variable costs Improve productivity to drop all topImprove productivity to drop all top--line growth to bottom lineline growth to bottom line

Leverage economies of scale from incremental acquisitions and exLeverage economies of scale from incremental acquisitions and expansionspansions

Reduce needless overheadReduce needless overhead Apply best practices to core operationsApply best practices to core operations

Maximize benefit of a unique financial structure which fits withMaximize benefit of a unique financial structure which fits with strategystrategy

MLP avoids double taxation, increasing distributions from high cMLP avoids double taxation, increasing distributions from high cash flow ash flow businessesbusinesses

Strong balance sheet allows flexibility when raising capital forStrong balance sheet allows flexibility when raising capital for acquisitions / acquisitions / expansionsexpansions

Same Strategy Since InceptionSame Strategy Since Inception

8

Management Philosophy

Low Cost Asset OperatorLow Cost Asset Operator

Attention to DetailAttention to Detail

Disciplined Capital AllocationDisciplined Capital Allocation

Risk ManagementRisk Management

TransparencyTransparency

Cash is KingCash is King

Alignment of IncentivesAlignment of Incentives

Business Unit AutonomyBusiness Unit Autonomy

Kinder Morgan Energy PartnersKMP and KMR

10

Solid Asset Base Generates Stable Fee Income

51% Texas Intrastate51% Texas Intrastate49% Rockies49% RockiesLittle incidental commodity riskLittle incidental commodity risk

25% CO25% CO22 transport and salestransport and sales75% oil production related75% oil production relatedExpected production hedged:Expected production hedged:2005=95%; 2006=72%; 2007=58%2005=95%; 2006=72%; 2007=58%

55% Liquids, 45% Bulk55% Liquids, 45% BulkGeographic and product Geographic and product diversitydiversity33--4 year average contract life4 year average contract life

Refinery hub to population Refinery hub to population center strategycenter strategy64% Pipelines64% Pipelines31% Associated Terminals 31% Associated Terminals (b)(b)

5% Transmix5% TransmixNo commodity price riskNo commodity price risk

(a) Budgeted 2005 distributable cash flow before G&A and interest(b) Terminals are not FERC regulated except portion of CALNEV

Natural Gas PipelinesNatural Gas Pipelines

Products PipelinesProducts PipelinesTerminalsTerminals

COCO22

Product Pipelines

30%

Natural Gas Pipelines

26%

CO2

28%

Terminals16%

KMPKMP2005 DCF 2005 DCF (a)(a)

11

Long-Term Growth Drivers

Increasing product specificationsIncreasing product specificationsChanging regulationsChanging regulationsAdvantage to existing assetsAdvantage to existing assets

TerminalsTerminals

Production at SACROC and YatesProduction at SACROC and YatesAdditional Permian Basin OpportunitiesAdditional Permian Basin OpportunitiesOpportunities in new basinsOpportunities in new basinsCOCO2 2 ExpertiseExpertise

COCO22

Natural gas demand growth = 1.5%/year Natural gas demand growth = 1.5%/year (a)(a)

US is infrastructure constrainedUS is infrastructure constrainedLNG requires new infrastructureLNG requires new infrastructureAdvantage to existing assetsAdvantage to existing assets

Natural Gas PipelinesNatural Gas Pipelines

Gasoline demand tracks demographic growthGasoline demand tracks demographic growthServe 8 of 10 fastest growing metropolitan areasServe 8 of 10 fastest growing metropolitan areasPrice escalator = PPIPrice escalator = PPIAdvantage to existing assetsAdvantage to existing assets

Products PipelinesProducts Pipelines

Growth DriversGrowth DriversBusiness SegmentBusiness Segment

(a) Source: Energy Information Administration (EIA) 2005 Annual Energy Outlook

12

Approximately $9 Billion in Capital Invested at KMP

$0

$400

$800

$1,200

$1,600

$2,000

1998 1999 2000 2001 2002 2003 2004

ExpansionAcquisition $6,976

$1,986$0

$2,000

$4,000

$6,000

$8,000

Acquisitions Expansions

$1,278$1,545

$2,948$3,191

$0

$1,000

$2,000

$3,000

$4,000

Products NaturalGas

CO2 TerminalsNote: Investment is defined as Gross PP&E plus Investments and Intangibles, less

cumulative sustaining capex, minority interest (KMI), deferred taxes and assumed liabilities

$1,618

$1,065$1,020

$1,893

$1,261

$873

$1,232

($ millions)($ millions)

Total Invested by SegmentTotal Invested by Segment

Total Invested by YearTotal Invested by Year

Total Invested by TypeTotal Invested by Type

13

2005 Expansion

$606$606TotalTotal

Pasadena, Carteret, TampaplexPasadena, Carteret, Tampaplex$53$53TerminalsTerminals

SACROC and YatesSACROC and Yates$238$238COCO22

Dallas, Rancho, Markham, TransColoradoDallas, Rancho, Markham, TransColorado$130$130Natural Gas PipelinesNatural Gas Pipelines

East Line, CarsonEast Line, Carson$185$185Product PipelinesProduct Pipelines

Major ProjectsMajor Projects

2005 2005 BudgetBudget($mm)($mm)Business SegmentBusiness Segment

KMP 2005 Expansion Capital BudgetKMP 2005 Expansion Capital Budget

14

Disciplined Investment Process and Accountability

$450$4502005 DCF2005 DCF

5050Add: Acquisition/ExpansionAdd: Acquisition/Expansion

$400$4002004 DCF2004 DCFSegment Budget Segment Budget

8X8XMultipleMultiple

17%17%IRR IRR (a)(a)

400400Purchase PricePurchase Price5050Distributable CFDistributable CF

(10)(10)Sustaining CapitalSustaining Capital$60$60EBITDAEBITDA

Acquisition/Expansion ModelAcquisition/Expansion Model

DecisionDecision AccountabilityAccountability

2005 2005 ResultsResultsAcquisitionAcquisition

$50$50

(10)(10)

$60$60

$51$51DCFDCF

(11)(11)Sust. CapitalSust. Capital

$62$62EBITDAEBITDA

Board ReviewBoard Review

(a) Assumes 60% equity, 40% debt

IllustrativeIllustrative

15

23.2%23.2%

13.1%13.1%

18.418.4

21.921.9

13.513.5

12.9%12.9%

20032003

13.7%13.7%12.6%12.6%12.7%12.7%12.3%12.3%KMP Return on Investment KMP Return on Investment (a)(a)

25.2%25.2%21.9%21.9%19.0%19.0%17.4%17.4%KMP Return on EquityKMP Return on Equity

18.018.017.717.718.218.219.119.1TerminalsTerminals

23.823.822.022.024.624.627.527.5COCO22

14.014.012.912.915.515.513.313.3Natural Gas PipelinesNatural Gas Pipelines

12.6%12.6%12.8%12.8%11.8%11.8%11.9%11.9%Products PipelinesProducts Pipelines

20042004200220022001200120002000Return on Investment:Return on Investment:

(a) G&A is deducted in calculating KMP’s return on investment, but is not allocated to the segments and therefore not deducted in calculatingthe segment information. See Appendix from the 2005 Analyst Conference presentation, available at www.kindermorgan.com, fordetails on calculations.

Leads to Attractive Return on Capital

16

KMP is Conservatively Capitalized

$1,133$1,133Excess CapacityExcess Capacity

117117Outstanding CPOutstanding CP

$1,250$1,250Total RevolverTotal Revolver

$5$52005 2005 (b)(b)

$45$4520062006

$255$25520072007

$5$520082008

$250$25020092009

$ (in millions)$ (in millions)

Rating Rating Baa1/BBB+Baa1/BBB+

Current Net Debt / Total Capital Current Net Debt / Total Capital (a)(a) 52%52%

2005 Budget Estimates:2005 Budget Estimates:Debt / EBITDA Debt / EBITDA 3.0x3.0xEBITDA / Interest EBITDA / Interest 6.3x6.3x

(a) As of 12/31/2004. Excludes loss/gain in Other Comprehensive Income account related to hedges.(b) Remaining in 2005 after $200 million March-15 maturity.(c) Pro forma for recent $500 million note issuance and $200 million March-15 maturity.

Credit SummaryCredit Summary

CP Capacity CP Capacity (c)(c)

LongLong--Term Debt MaturitiesTerm Debt Maturities

17

KMP is Growing Equity Distribution Coverage

1.041.02

1.051.06

1.00 1.00

1.08

0.90

1.00

1.10

2002 2003 2004 2005E

Budgeted Actual

$28

$39

$18$11

$46

$0

$10

$20

$30

$40

$50

2002 2003 2004 2005E

BudgetActual $0

$50

$100

$150

$200

$250

2000

2001

2002

2003

2004

2005E

KMR DistributionsCoverage

$215

$136$108

$28$9

Approximate $ CoverageApproximate $ Coverage (a)(a)(millions)(millions)

Published Budget vs. Actual CoveragePublished Budget vs. Actual Coverage Internally Generated Cash Flow Internally Generated Cash Flow Available for Reinvestment Available for Reinvestment ($ mm)($ mm)

(a) Approximate coverage is the actual net income before DD&A less sustaining cap ex, divided by the cash required to pay the declared distribution to the LPs and the incentive distribution to the GP.

$194

Kinder Morgan Inc.

19

Solid Asset Base Generates Stable Fee IncomeKMIKMI

2005 Segment Income2005 Segment Income (b)(b)

(a) Includes: (i) general partner interest, (ii) earnings from 20 million KMP units and (iii) earnings from 15 million KMR shares. (b) Budgeted 2005 segment earnings before G&A and interest.

FERC regulated with 3 year FERC regulated with 3 year average contract life average contract life Primary customers are Chicago Primary customers are Chicago local distribution companieslocal distribution companiesLittle incidental commodity riskLittle incidental commodity risk

General partner interest earns General partner interest earns incentive distributionsincentive distributionsOwns 17% of total limited Owns 17% of total limited partner unitspartner units

Investment in KMP Investment in KMP (a)(a) NGPLNGPL

Natural gas distribution serviceNatural gas distribution serviceServe Colorado, Wyoming and Serve Colorado, Wyoming and NebraskaNebraska240,000 customers240,000 customers

RetailRetail

PowerPower

Equity interest in five plantsEquity interest in five plants

NGPL39%

Retail7%

Power1%

KMP53%

20

KMI is Conservatively Capitalized

7373Outstanding CP Outstanding CP

$727$727Excess Capacity Excess Capacity

$800$800Total RevolverTotal Revolver

$5$52005 2005 (b)(b)

$5$520062006

$5$520072007

$305$30520082008

$5$520092009

$ (in millions)$ (in millions)

Rating Rating Baa2/BBBBaa2/BBB

Current Net Debt / Total Capital Current Net Debt / Total Capital (a)(a) 39%39%

2005 Budget Estimates:2005 Budget Estimates:Debt / EBITDA Debt / EBITDA 2.4x2.4xEBITDA / Interest EBITDA / Interest 7.5x7.5x

Credit SummaryCredit Summary

CP Capacity CP Capacity (c)(c)

LongLong--Term Debt MaturitiesTerm Debt Maturities

(a) As of 12/31/2004. Excludes cash on hand from TransColorado sale.(b) Remaining in 2005 after $500 million March-1 maturity.(c) Pro forma for recent $250 million note issuance and $500 million maturity.

21

Targeted KMI Internal Growth

$2.80/share in dividends$2.80/share in dividends4. Use of Free Cash Flow4. Use of Free Cash Flow

$104 million in share repurchase$104 million in share repurchase3. Use of Free Cash Flow3. Use of Free Cash Flow

3 3 -- 5% segment earnings growth5% segment earnings growth2. NGPL / Other Assets2. NGPL / Other Assets

15% growth results from 815% growth results from 8--10% LP 10% LP distribution growthdistribution growth

1. Investment in KMP1. Investment in KMP

Consistent with 10Consistent with 10--12% earnings growth12% earnings growth

Three Assumptions:Three Assumptions:

Approximately 3.7% yield Approximately 3.7% yield

22

Limited Reinvestment Required for Growth (a)

Source: Factset(a) Comparison does not include any firms with a negative CF in 1998. Cash Flow from Continuing Operations is used to determine change in CF.(b) KMI (2) is from 1998-2004.(c) S&P 500 – All Energy = Utility & Energy Indices

KMI (2) KMI (2) (b)(b)KMIKMI

S&P 500S&P 500

S&P 500 S&P 500 –– All Energy All Energy (c)(c)

S&P 500 Energy IndexS&P 500 Energy Index

S&P 500 Utility IndexS&P 500 Utility Index

-10%

-5%

0%

5%

10%

15%

20%

-10% -5% 0% 5% 10% 15% 20%

Change in Assets 1998-2003

Cha

nge

in C

F 19

98-2

003

23

Tremendous Historical Incremental Returns

21.3%21.3%

13.3%13.3%

5.65.6

14.514.5

11.411.4

25.0%25.0%20032003

14.8%14.8%12.4%12.4%11.7%11.7%10.5%10.5%KMI Return on Investment KMI Return on Investment ((a,ba,b))

23.2%23.2%18.5%18.5%19.0%19.0%16.6%16.6%KMI Return on EquityKMI Return on Equity

4.74.79.79.720.220.214.314.3PowerPower

13.113.115.015.011.711.713.013.0RetailRetail

12.112.110.910.911.111.111.411.4NGPLNGPL

29.6%29.6%21.4%21.4%16.9%16.9%11.2%11.2%Investment in KMPInvestment in KMP20042004200220022001200120002000Return on Investment:Return on Investment:

(a) G&A is deducted in calculating KMI’s return on investment, but is not allocated to the segments and therefore not deducted in calculatingthe segment information. See Appendix from the 2005 Analyst Conference presentation, available at www.kindermorgan.com, fordetails on calculations.

(b) Totals include all assets owned in given year, even if subsequently divested.

24

Over $2.7 billion returned to investors 2000-2005

$343 $222

$565

$556$496

$2,201

$1,149

-$200

$300

$800

$1,300

$1,800

$2,300

$2,800

Dividends ShareRepurchase

Change in NetDebt

Total

2000-2004 2005E (a)

$839$839 $778$778

$2,766$2,766

(a) 2005E numbers include $118 million in share repurchase from TransColorado sale.

25

RisksRegulatoryRegulatory

Pacific Products Pipeline FERC/CPUC casePacific Products Pipeline FERC/CPUC case

Periodic rate reviewsPeriodic rate reviews

Unexpected FERC policy changesUnexpected FERC policy changes

EnvironmentalEnvironmental

TerrorismTerrorism

Interest RatesInterest Rates

50% of debt is floating rate50% of debt is floating rate

Budget assumes approximately 100 bps increase in floating rates Budget assumes approximately 100 bps increase in floating rates over the yearover the year

A full year of a 100 basis point increase in rates approximatelyA full year of a 100 basis point increase in rates approximately $24 million $24 million increase in expense at KMP and $14 million at KMIincrease in expense at KMP and $14 million at KMI

26

Summary

Stable Cash FlowStable Cash Flow Own assets core to energy infrastructureOwn assets core to energy infrastructure

Internal Growth OpportunitiesInternal Growth Opportunities Critical MassCritical Mass WellWell--located assets/favorable demographicslocated assets/favorable demographics

Fixed Cost BusinessFixed Cost Business Drop growth to bottom lineDrop growth to bottom line

Unique StructureUnique Structure Tax EfficientTax Efficient Incentive FeeIncentive Fee

Management Philosophy Management Philosophy LowLow--Cost OperatorCost Operator Focused on cashFocused on cash Disciplined InvestmentDisciplined Investment

KMI:KMI:3.7% Yield3.7% Yield

and and 1010--12% 12%

LongLong--Term Term GrowthGrowth

KMP/KMR:KMP/KMR:66--7% Yield 7% Yield

andand88--10%10%

LongLong--TermTermGrowthGrowth