Tim Bradley President CO Group - Kinder Morgan

History of CO 2 Group and Looking ForwardTrack Record – Consistently very close to budget despite inherent volatility• Shell CO 2 formed in 1998, KM share 20%• Acquired remaining 80% in April 2000• Acquired SACROC interests June 2000• Acquired Yates interests in 2001 and 2003• Ramped up developments at SACROC 2003+— Constructed Centerline pipeline in 2003— Constructed power plant in 2005— Increased oil production 3X+• Acquired Wink pipeline in 2004• Acquired Claytonville / Katz interests 2005-06• Increased SW Colorado CO 2 capacity 30% 2008• Katz CO 2 project: CO 2 injection commencedDec-2010$1,400$1,200$1,000$800$600$400$200$-DCF ($MM) (a)CO2 S&T CO2 Flood Properties Plan for Each YearOur assets, resources and technologies provide us with growth opportunities— Continued developments at SACROC, Yates, and Katz— Strong growth in CO 2 demand – new developments are underway__________________________(a) CO 2 Sales and Transportation includes YOGS, CO 2 sales profit on own use has not been eliminated2

2011 and 2012 DCF by Asset Group (a) 42011 DCF= $1,082 MMKatz-1%Katz2%2012B DCF= $1,365 MMS&T27%S&T26%SACROCComplex55%Yates19%SacrocComplex55%Yates17%__________________________(a) Segments shown without elimination

2012 Expansion Capital Budget - $437 Million5Staff overhead and CO 2purchases – aggregatedCO 2 purchases and staffoverhead allocated to assetsCO2PurchasesKatz19%16%Staff OVHD7%CO2 S&T31%Yates9%CO2 S&T34%Katz9%YatesSACROC28%SACROC41%6%

2012 Executive SummaryCapex Program $437 MM (a)CO 2 S&T – $134.8 MM• Drill 11 wells• Debottleneck Gathering System (22+ miles of pipe)• Order additional Compression (32,000 horsepower)• Produce 1,260 MMcf/dSACROC Complex – $119.7 MM• Activate 27 patterns• Initiate work on Platform 3• Purchase 100 MMcf/d, Produce 27.9 MBbl/d oil, 17.4 MBbl/d NGLYates – $26.1 MM• Drill 30 wells on West side• Add 33 CO 2 injectors• Purchase 115 MMcf/d, Produce 21 MBbl/d oilKatz – $39.5 MM• Add 9 patterns• Purchase 57 MMcf/d, Produce 2,267 Bbl/d oil$350MM DCF$747MM DCF$240MM DCF$26MM DCFTotal $320.1 MM capex (exc overhead / CO 2 purchases) (a) Total $1,365MM DCF (b) 6__________________________(a) Included in $437 million total capex program are overhead and CO 2 purchases, in the aggregate, of approximately $117 million(b) Includes minor properties, unallocated costs

Impact of Oil Price / Volume Variance on 2012 DCF2012 Budget: $1,365MMVolume +/– 1,000 Bbl/dSACROC / KatzYates$26.6MM$14.4MMPrice +/– $1/Bbl WTICO 2NGLCrude$1.6MM$2.5MM$1.7MM$5.8MM__________________________Note: Unhedged WTI price presumed to average $93.75/b, WTI-WTS spread = $2.34, NGL = 69% WTI7

CO 2 S&T Growth OpportunitiesDemand is strong and continues to increase12108Domestic EOR Projected CO 2 Demand (a)Bcf/dWe have a simple plan:1. Sign Contracts securingthe demand64201985 1990 1995 2000 2005 2010 2015 2020 2025 2030 20352. Develop the supply tomeet those contracts— Options: 400-600MMcf/d for $1-2 Billion__________________________(a) Source: AEO 2011 Forecast8

CO 2 Source & TransportationGrowing Business Opportunities1,8001,6001,4001,2001,000800600400200-MMcf/dPermian Basin CO 2 DeliveriesSheep Mtn.Bravo DomeMcElmoDome & DoeCanyonOther1985 1990 1995 2000 2005 2010Domestic CO 2 DeliveriesMMcf/dNorth3,200Dakota2,800Mississippi2,4002,000Wyoming1,6001,200800PermianBasin400-1985 1990 1995 2000 2005 2010__________________________Sources: KM estimates, Oil and Gas Journal, EIA, XOM, Dakota Gasification, DRIPermian Basin• 2011 supplies were at capacity, customerswere being pro-rated• Permian Basin demand is growing via newprojects, extensions of existing projects, andROZ projectsDomestic EOR• Industry CO 2 EOR activity is increasing• Naturally occurring sources are beingexpanded to ultimate capacity• Several regions have potential— Gulf Coast, California, Mid-continent,Canada9

CO 2 VolumesProduced and Sold to our Customers7006005004003002001000MMcf/dCO 2 KM-share2005 2006 2007 2008 2009 2010 2011 2012Significant growth since 2005:• CAGR: volumes +6.2%, price +13.9%• 2012 vs 2011: volumes +1%, price +13.6%And, just to be clear:• Although our customer deliveries often have andwill exceed our entitlement, sales revenues basedon our working interest entitlement and notdeliveries• KM share of EOR demand consumes ~36% of ourentitled production in 2012• Elimination: consolidation results in eliminatingprofit on sales to ourselves, however we view ourS&T and O&G businesses independently, andprice sales to ourselves at market prices10

Demand Growth and Regeneration5-year Contracted VolumesCO 2 Daily Contract QuantitiesHigh oil prices have increased long-term demandfor CO 21,000800600MMcf/d2006 2012Total contract quantities signed in 2006-2011represents 2 times our entitled production duringthat period• Weighted average contract life with 3rd parties is5.3 years400200-1 2 3 4 5YearHigh CO 2 demand has improved contract terms• Higher floor prices• Increased upside• Higher take-or-pay requirements11

Doe Canyon Field Expansion$255 MM, 65 MMcf/d increaseDoe Canyon Expansion Project Flow Rate180160MMcf/d• 170 MMcf/d (from 105 MMcf/d)— Adds 750 Bcf reserves( )1401201008060• Timing : 2nd Quarter 2014• Project delivers attractivereturns based on contractsrecently executed and currentlybeing negotiated4020Case 3: Case 2 + 2012 Well Work +2012 New Drills02005 2010 2015 2020 2025 2030 2035 2040( )12

St. John’s CO 2 Source OpportunityExpect to close in late JanuaryMcElmoDomeSheepMountain• Located in Arizona and NewMexico10” Pipeline~200 MilesPlacitasCortezBravoDome• In-place CO 2 resource of 12+Tcf— 40 wells drilled to-date20” pipeline~400 MilesDenverCity• Asset acquisition $30MM13

Oil and Gas SegmentProduction and DCF50403020Net Hydrocarbon Production (Mboe/d)Gas ProcessingKatzYatesSACROCOriginal oil in place (billion Bbls)• SACROC 2.8• Yates 5.0• Katz 0.23100$1,000$800$600$400$2002002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012KatzYatesSACROCDCF ($MM)Gross production (Bbl/d) 2011 2012• SACROC oil 28,627 27,868• SGP NGLs 16,644 17,364• Yates 21,728 20,986• Katz 499 2,267DCF ($MM, without Elimination) 2011 2012• SACROC Group (a) 595 747• Yates 203 240• Katz (a) (14) 28$02002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012__________________________Notes: Yates DCF does not include contribution from MKMBoe: Oil and NGL =1:1, Residue gas sales = 6:1Gas Processing includes net Boe attributable to our plant interests and processing agreements but excluded from reserve report(a) Includes other minor oil and gas properties near SACROC or in Eastern Shelf asset14

Oil & GasBasis for Hedging PolicyOil & Gas All-in Cost Structure (a) ($/Net Boe)$100$80$60$40$20$-100%90%80%70%2006 2007 2008 2009 2010 2011 2012Operating Margin as % of OilRevenue (without hedging)DD&ATOTICO2 ExpenseWorkover ExpOtherLaborPowerHedged RevenueUnhedgedRevenueO&G cost structure has strong correlation toenergy prices• Power is tied to gas prices• High activity levels have increased staffing andother service costs• Well-work and rig contracts now being tied to oilprices• Purchased CO 2 and TOTI (b) are stronglycorrelated to oil pricesOperating margins (including gas processingactivities) have averaged ~85% of our unhedgedoil prices• We target 85% of plan-year production to behedged• Gas / oil and NGL / oil price ratios cause somefluctuationsCapital development costs also have a strongcorrelation to oil prices• We consider PUD volumes in placing hedges inout years, but consider no more than 50% of thosevolumes and generally much less60%2006 2007 2008 2009 2010 2011 2012__________________________(a) Costs and Revenue per net Boe, including hedges where applicable; includes acquisition and all development costs(b) Taxes other than income taxes15

Oil and Gas Segment Production ForecastsProduction expectations tend to grow over time5040302010-605040302010Evolution of Forecasted 2012Production (a) over Time (MBbl/d, 8/8ths)SACROC Yates Katz Total2006 2007 2008 2009 2010 2011 2012Proved Reserves ProductionForecast (a) (MBbl/d, 8/8ths)KatzYatesSACROCKM FcstDespite oil price volatility, we have replaced allof our oil production and 98% of our HCproduction with new proved reserves for thepast 3 yearsWe expect production to exceed our reservereport over the long-term• Higher recoveries and additional targets addedto inventory at SACROC• Addition of Katz projectCurrent challenge: slow the decline02012 2013 2014 2015 2016__________________________(a) 2007+ Forecasts based on independent consultant NSAI Reserve Report. Excludes minor properties16

Oil & Gas, and Business Unit IRR35%30%25%20%15%10%5%0%10-K + Reserve ReportKatzGas ProcessingP2's, Development CostsS&TAll-in O&G IRR (2000-2021) ~23.7%• Required disclosures in 10-K plus provedreserves cash flows: 14.8%— With unhedged prices, IRR would havebeen 40%• Adding in Katz and Gas Processing excludedfrom disclosures increases IRR to 17.3%• Adding in reserves discounted to P2 by NSAI,and using planned development costs increasesreturn to 23.7%Total Business IRR = 31%• Includes S&T assuming volumes increase withhigher capacity, valued at market pricesAs of 12/31/11, CO 2 Segment Cumulative free cashflow is $1.8B+• As of 12/31/12 expect cumulative FCF of $2.8B__________________________Note: Segments shown without elimination17

Oil and Gas SegmentOver past 5 years, capex 10% below plan, oil production 1% below planCapex ($MM)Net Oil Production (MBbl/d)$60050$5004540$4003530$30025$2002015$100105$-2007 2008 2009 2010 2011-2007 2008 2009 2010 2011BudgetActualBudgetActual18

SACROC Production & Operations Highlights40ActualBudget302010-90%80%70%60%50%40%30%20%10%0%Oil Production 2003-2012 (MBbl/d)Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12Sub-pump ImprovementsFailure RateAverage Bbls off-2007 2008 2009 2010 20112,7002,4002,1001,8001,5001,2009006003002011 – Review• Oil production 2.6% below plan— Platform pressure and conformance issues— Injection rates higher than expected –curtailed pattern activations from 35 to 27— Field gas production continues to increase— Sub-pump performance continued toimprove— Compressor run-time improved from 96.2%to 97%• Costs below plan— Opex/sustaining capex: $18MM below plan— Expansion capex: $23MM below plan— Lower rig costs due to lower failure rate— Lower activity level due to pattern selections2012 – Focus• Costs, vendors beginning to push increases• Add patterns at the right pace, manage gasvolumes• Continue Conformance improvement projects• Evaluate 3D for infill opportunities19

SACROC Unit Look-back:Recent Projects – Meeting, sometimes exceeding expectations1200010000Bbl/dSWCLAFEActualForecast60005000Bbl/dGilligan’s IslandAFEActualForecast8000400060003000400020002000100001/076/0711/074/089/082/097/0912/095/1010/103/118/111/126/1211/124/139/132/147/1412/145/1510/1501/085/089/081/095/099/091/105/109/101/115/119/111/125/129/121/135/139/131/145/149/141/155/159/157,0006,0005,000Bbl/dS. PlatformAFEActualForecast140001200010000Bbl/dPlatform 1AFEActualForecast4,00080003,00060002,00040001,0002000-1/085/089/081/095/099/091/105/109/101/115/119/111/125/129/121/135/139/131/145/149/141/155/159/1501/087/081/097/091/107/101/117/111/127/121/137/131/147/141/157/151/167/161/177/171/187/181/197/191/20Better surveillance and selective activation pace has added 19 MM Bbls of expected production over past 3 years20

Yates ProductionSteady25,00020,00015,00010,0005,000-1,5001,2009006003002011 Production (MBbl/d)Feb freezing eventJan Feb Mar Apr May JunPlanJul Aug Sep Oct Nov Dec JanActualYates West Side Horizontals (Bbl/d)ActualBudgetYates oil production missed plan in 2011 (3.4%)• Oil column thinned to

Katz CO 2 ProjectThe first yearInvestment• $199MM project total, $125MM thru 2011Oil Response• 2011 plan 1,455 vs. actual 499 Bbl/d• Response delayed 7-8 month• Effect was 875 Bbl/d (95% of short fall)7,0006,0005,000Bbl/dRecent Operation Challenges• Scale, Asphaltine, Corrosion• Fix by lower tubing, tubing liner and chem.• Sub pump – more robust motors• Effect was 45 Bbl/d (5% of short fall)2012 Expected Production – 2,267 Bbl/d• Existing patterns production continues to climb• Increase pattern activations by 50% (18-27)• Increase CO 2 purchases by 25% (45-57 MMcf/d)4,0003,0002,0001,0002011 Budget2012 Current ViewAFEActuals-1/1/2011 1/1/2012 1/1/2013 1/1/201422

Katz CO 2 ProjectSolid oil response but delayed from plan1.000Katz Phase 1 – Oil Cut0.1000.010AFE ForecstActual0.001Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13Oil Rate Increase from 232 to 1104 (Dec-Dec)• Response seen in All Phase 1 Wells• Oil Cut increase from 1% to 5%, and climbing• Production growth continues as well responsestrengthensDelay indicates a more homogeneous reservoirresulting in more uniform sweep• Modestly slower processing rate indicatesreservoir is curbing channelingPhase 1 – All Producers Responding• Responding w/ Low GOR < 10,000Up from 8 to 10• Responding High GOR, going downUp from 2 to 6• Responding High GOR, going upDown from 6 to 2• Not Responding YetDown from 2 to 023

KM CO 2 Current OutlookDevelopment Plans 2012-20211. SACROC Base Case Forecast— 67 MMBoe net (a) , $715MM KM-share capex($172MM CO 2 )— Continue platform development plan; productionforecast is based on existing recovery expectations— Forecast assumes deteriorating inlet gas qualityimpacting NGL production volumes$1,600$1,400DCF ($MM) (b)EasternShelf2. Yates Base Case— 29 MMBoe net (a) , $199MM KM-share capex($77MM CO 2 )— Continue HDH programs and gravity drainagedepletion plan; no upside potential included from infillor surfactant3. Eastern Shelf— 16MMBoe net (a) , $349MM KM-share capex($275MM CO 2 )— Continue development plans at Katz— Claytonville CO 2 project not included$1,200$1,000$800$600$400$200SACROCComplexYatesS&T (c)$-2009 2010 2011 2012 2013 2014 2015 2016 2017 20184. CO 2 S&T— $918MM KM-share capex, 1.55 Bcf/d capacity— Maintain aggressive CO 2 sales program and increasefacilities capacity (production sustained by in-fill drillingand inlet compression__________________________(a) Net Beq = Net Crude plus NGLs plus Residue Gas sold divided by 6.(b) 2012 = Budget, 2013+ at $90/Bbl; cost metrics based on 2011 run rate; development plans may change in different price scenarios(c) CO 2 profits not eliminated from S&T24

Historical Long-term OutlookThe best is yet to come$1,600$1,400$1,200$1,000$800$600$400$200$-Historical DCF Projections ($MM)2012201120102009200820072006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016CO 2 segment outlook has continued togrow over past 5 years• Oil prices have increased from $50 to$90/Bbl— Increased costs but also opportunities• Higher CO 2 volumes and prices— Increased demand, improved contractterms• Higher ultimate recoveries beingachieved— Improved operating practices, newareas to exploit• Katz CO 2 project added— Continue to seek acquisitionopportunities25