KMP Increases Quarterly Distribution

Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced an increase in its quarterly cash distribution per common unit to $0.81 ($3.24 annualized) from $0.80 per unit. Payable on May 15, 2006, to unitholders of record as of April 28, 2006, the distribution represents a 7 percent increase over the first quarter 2005 cash distribution per unit of $0.76 ($3.04 annualized).

KMI to Expand Midwest Pipeline

Kinder Morgan Inc. announced an agreement that will result in the construction of a $13 million natural gas line that will serve the Chicago, Illinois market. The pipeline will run from Beecher, Illinois to Chicago city limits near Burnham, Illinois. The line should begin service in late 2007.

KMP Acquires Permian Basin Assets

The Kinder Morgan CO2 Company has purchased various properties located primarily in the Permian Basin of West Texas.

The Kinder Morgan CO2 Company is the largest transporter and marketer of carbon dioxide in the United States. It owns the most extensive CO2 pipeline network in the industry, with over 1300 miles of pipelines. This transaction should be immediately accretive to cash available to KMP unitholders.

The Permian Basin is a sedimentary basin largely contained in the western part of Texas. The basin reaches from just south of Lubbock, Texas, to just south of Midland and Odessa, extending westward into the southeastern part of the adjacent state of New Mexico. It is so named because it has one of the thickest deposits of rocks from the Permian geologic period in the world. The greater Permian Basin comprises several component basins: of these, Midland Basin is the largest, Delaware Basin is the second largest, and Marfa Basin is the smallest. The Permian Basin extends beneath an area approximately 250 miles wide and 300 miles long.