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TABLE OF CONTENTS

Filed Pursuant to Rule 424(b)(3)
Registration No. 333-198411


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LOGO

MERGER PROPOSAL—YOUR VOTE IS VERY IMPORTANT

October 22, 2014

Dear Unitholder:

        On August 9, 2014, El Paso Pipeline Partners, L.P., which is referred to as "EPB," and Kinder Morgan, Inc., which is referred to as "KMI," entered into a merger agreement, which is referred to as the "EPB merger agreement," pursuant to which KMI will acquire directly or indirectly all of the outstanding EPB common units that KMI and its subsidiaries do not already own. The conflicts committee of the board of directors of EPB's general partner, which is referred to as the "EPGP conflicts committee," and the board of directors of EPB's general partner, which is referred to as the "EPGP board," each have determined that the EPB merger is fair and reasonable to, and in the best interests of, EPB, after determining that the EPB merger is fair and reasonable to, and in the best interests of the EPB unitholders (other than EPGP and its affiliates), and have unanimously approved the EPB merger agreement and the EPB merger.

        If the EPB merger is completed, each outstanding EPB common unit not owned by KMI or its subsidiaries will be converted into the right to receive, at the election of the unitholder but subject to proration, (i) 1.0711 shares of Class P common stock of KMI, which is referred to as "KMI common stock," (ii) $39.53 in cash without interest or (iii) a combination of 0.9451 of a share of KMI common stock and $4.65 in cash without interest. Immediately following completion of the EPB merger, it is expected that the former public EPB unitholders will own approximately 6.3% of the shares of outstanding common stock of KMI, based on the number of EPB common units owned by public EPB unitholders, the number of shares of KMI common stock expected to be issued in the KMP merger and the KMR merger, described below, and the number of shares of KMI common stock outstanding as of October 20, 2014. The EPB common units are traded on the New York Stock Exchange under the symbol "EPB," and the KMI common stock is traded on the New York Stock Exchange under the symbol "KMI."

        KMI also has entered into a merger agreement with each of Kinder Morgan Energy Partners, L.P., which is referred to as "KMP," and Kinder Morgan Management, LLC, which is referred to as "KMR," pursuant to which KMI will acquire directly or indirectly all of the outstanding equity interests in KMP and KMR that KMI and its subsidiaries do not already own.

        Each of KMP and KMR will hold a special meeting of its unitholders or shareholders to obtain their approval of the applicable merger agreement. Completion of each merger is contingent on the completion of each of the other two mergers. KMI also will hold a special meeting of its stockholders to approve an amendment to its certificate of incorporation to increase the number of authorized shares of KMI common stock and to approve the issuance of KMI common stock in the three mergers.

        We are holding a special meeting of unitholders on Thursday, November 20, 2014 at 10:00 a.m., local time, at the Kinder Morgan Building, 1001 Louisiana Street, Houston, Texas 77002 to obtain your vote to approve the EPB merger agreement. Your vote is very important, regardless of the number of units you own. The EPB merger cannot be completed unless a majority of the outstanding EPB common units are voted for the approval of the EPB merger agreement at the special meeting. Therefore, your failure to vote your units will have the same effect as a vote against the approval of the EPB merger agreement.

        The EPGP conflicts committee and the EPGP board each recommend that EPB unitholders vote FOR the approval of the EPB merger agreement and FOR the adjournment of the special meeting if necessary to solicit additional proxies if there are not sufficient votes to approve the EPB merger agreement at the time of the special meeting.

        On behalf of the EPGP board, I invite you to attend the EPB special meeting. Whether or not you expect to attend the special meeting in person, we urge you to submit your proxy as promptly as possible through one of the delivery methods described in the accompanying proxy statement/prospectus.


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        In addition, we urge you to read carefully the accompanying proxy statement/prospectus (and the documents incorporated by reference into it) which includes important information about the EPB merger agreement, the proposed EPB merger, the proposed KMP and KMR mergers, EPB, KMI and the special meeting. Please pay particular attention to the section titled "Risk Factors" beginning on page 107 of the accompanying proxy statement/prospectus.

        On behalf of the EPGP board, thank you for your continued support.

    Sincerely,

 

 

 
   
LOGO
    Richard D. Kinder
Chairman of the Board

        Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of the securities to be issued under the accompanying proxy statement/prospectus, passed upon the merits or fairness of the EPB merger or determined that the accompanying proxy statement/prospectus is accurate or complete. Any representation to the contrary is a criminal offense.

        The accompanying proxy statement/prospectus is dated October 22, 2014 and is first being mailed to EPB unitholders on or about October 22, 2014.


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LOGO

1001 Louisiana Street, Suite 1000
Houston, Texas 77002

NOTICE OF SPECIAL MEETING OF UNITHOLDERS

To the Unitholders of El Paso Pipeline Partners, L.P.:

        Notice is hereby given that a special meeting of unitholders of El Paso Pipeline Partners, L.P., a Delaware limited partnership, which is referred to as "EPB," will be held on Thursday, November 20, 2014 at 10:00 a.m., local time, at the Kinder Morgan Building, 1001 Louisiana Street, Houston, Texas 77002, solely for the following purposes:

        These items of business, including the EPB merger agreement and the proposed EPB merger, are described in detail in the accompanying proxy statement/prospectus. The conflicts committee of the board of directors of EPB's general partner, which is referred to as the "EPGP conflicts committee," and the board of directors of EPB's general partner, which is referred to as the "EPGP board," each have determined that the EPB merger is fair and reasonable to, and in the best interests of, EPB, after determining that the EPB merger is fair and reasonable to, and in the best interests of the EPB unitholders (other than EPGP and its affiliates), and recommend that EPB unitholders vote FOR the proposal to approve the EPB merger agreement and FOR the EPB adjournment proposal.

        Only EPB unitholders of record as of the close of business on October 20, 2014 are entitled to notice of the special meeting and to vote at the special meeting or at any adjournment or postponement thereof. A list of EPB unitholders entitled to vote at the special meeting will be available in our offices located at 1001 Louisiana Street, Suite 1000, Houston, Texas, during regular business hours for a period of ten days before the special meeting, and at the place of the special meeting during the meeting.


YOUR VOTE IS IMPORTANT!

        Approval of the EPB merger agreement by the EPB unitholders is a condition to the consummation of the EPB merger and requires the affirmative vote of holders of a majority of the outstanding EPB common units. Therefore, your vote is very important. Your failure to vote your EPB units will have the same effect as a vote against the approval of the EPB merger agreement.

        WHETHER OR NOT YOU EXPECT TO ATTEND THE SPECIAL MEETING IN PERSON, WE URGE YOU TO SUBMIT YOUR PROXY AS PROMPTLY AS POSSIBLE (1) THROUGH THE INTERNET, (2) BY TELEPHONE OR (3) BY MARKING, SIGNING AND DATING THE ENCLOSED PROXY CARD AND RETURNING IT IN THE POSTAGE-PAID ENVELOPE PROVIDED. You may revoke your proxy or change your vote at any time by 11:59 p.m., Eastern Time, on the day before the special meeting. If your EPB common units are held in the name of a bank, broker, nominee, trust company or other fiduciary, please follow the instructions on the voting instruction card furnished to you by them.


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        We urge you to read carefully the accompanying proxy statement/prospectus, including all documents incorporated by reference into it, and its annexes before voting your EPB common units at the special meeting or submitting your voting instructions by proxy.

IF YOU PLAN TO ATTEND THE SPECIAL MEETING:

        Please note that space limitations make it necessary to limit attendance to EPB unitholders or their duly appointed proxies. Admission to the special meeting will be on a first-come, first-served basis. Registration will begin at 9:00 a.m., and seating will begin at 9:45 a.m. Unitholders will be asked to present valid picture identification, such as a driver's license or passport. Unitholders and proxies holding EPB common units in brokerage accounts will also need to bring a copy of the voting instruction card that they receive from their broker or other nominee in connection with the special meeting or a brokerage statement reflecting unit ownership as of the record date. Cameras, recording devices and other electronic devices will not be permitted at the meeting.

    By order of the board of directors,

 

 

 
   
LOGO
    Richard D. Kinder
Chairman of the Board

Houston, Texas
October 22, 2014


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ABOUT THIS DOCUMENT

        This document, which forms part of a registration statement on Form S-4 filed with the SEC by KMI (File No. 333-198411), constitutes a prospectus of KMI under Section 5 of the Securities Act of 1933, as amended, which is referred to as the "Securities Act," with respect to the KMI common stock to be issued pursuant to the EPB merger agreement. This document also constitutes a notice of meeting and a proxy statement of EPB under Section 14(a) of the Securities Exchange Act of 1934, as amended, which is referred to as the "Exchange Act," with respect to the special meeting of EPB unitholders at which EPB unitholders will be asked to consider and vote on, among other matters, a proposal to approve the EPB merger agreement.

        You should rely only on the information contained in or incorporated by reference into this proxy statement/prospectus. No one has been authorized to provide you with information that is different from that contained in, or incorporated by reference into, this proxy statement/prospectus. This proxy statement/prospectus is dated October 22, 2014. The information contained in this proxy statement/prospectus is accurate only as of that date or, in the case of information in a document incorporated by reference, as of the date of such document, unless the information specifically indicates that another date applies. Neither the delivery of this proxy statement/prospectus to EPB unitholders nor the issuance by KMI of the shares of KMI common stock pursuant to the EPB merger agreement will create any implication to the contrary.

        This proxy statement/prospectus does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, or the solicitation of a proxy, in any jurisdiction in which or from any person to whom it is unlawful to make any such offer or solicitation in such jurisdiction.


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SUMMARY TERM SHEET

  1

Frequently Used Terms

  1

The Transactions

  2

The Parties to the Merger

  2

The Merger

  3

Relationship of the Parties to the Transactions

  3

Merger Consideration

  3

Treatment of Equity Awards

  4

Interests of Certain Persons in the Transactions

  4

EPB Special Meeting; Unitholders Entitled to Vote; Vote Required

  4

Unit Ownership of KMI and of EPGP's Directors and Executive Officers

  5

Recommendation of the EPGP Conflicts Committee and the EPGP Board and Their Reasons for the Merger

  5

Opinion of Tudor, Pickering, Holt & Co. Securities, Inc. 

  6

Conditions to Completion of the Merger

  6

Changes in Board or Committee Recommendations

  7

Risks Relating to the Merger and Ownership of KMI Common Stock

  8

Regulatory Approvals Required for the Merger

  9

Termination of the Merger Agreement

  9

Expenses Relating to the Merger

  9

Comparison of Rights of KMI Stockholders and EPB Unitholders

  10

No Solicitation by EPB

  10

No Appraisal Rights

  11

Material U.S. Federal Income Tax Consequences of the Merger

  11

Accounting Treatment of the Merger

  11

Litigation Relating to the Mergers

  11

Selected Historical Consolidated Financial Data of KMI

  12

Selected Historical Consolidated Financial Data of EPB

  13

Selected Unaudited Pro Forma Condensed Combined Financial Information

  14

Unaudited Comparative Per Share/Unit Information

  15

Comparative Stock and Unit Prices; Comparative Dividends and Distributions

  17

QUESTIONS AND ANSWERS ABOUT THE EPB SPECIAL MEETING AND THE PROPOSALS

  19

SPECIAL FACTORS

  25

Effects of the Transactions

  25

Background of the Transactions

  27

Relationship of the Parties to the Transactions

  49

Recommendation of the EPGP Conflicts Committee and the EPGP Board and Their Reasons for the EPB Merger

  50

KMI Parties' Purpose and Reasons for the Transactions

  55

Position of the KMI Parties, EPGP and EPB as to the Fairness of the Merger

  56

Projected Financial Information

  58

Opinion of Tudor, Pickering, Holt & Co. Securities, Inc. 

  60

Opinion of Barclays Capital Inc. 

  73

Financial Analyses of Citigroup Global Markets Inc. 

  81

Interests of Certain Persons in the Transactions

  97

Security Ownership of Certain Beneficial Owners and Management of EPB

  99

No Appraisal Rights

  100

Accounting Treatment of the Merger

  101

Estimated Fees and Expenses

  101

Regulatory Approvals Required for the Merger

  101

Directors and Executive Officers of KMI After the Merger

  101

EPB Unitholders Making Elections

  102

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Listing of KMI Common Stock

  105

Delisting and Deregistration of EPB Common Units

  105

Ownership of KMI after the Transactions

  105

Restrictions on Sales of KMI Common Stock Received in the Merger

  105

Litigation Relating to the Mergers

  105

RISK FACTORS

  107

Risk Factors Relating to the Merger

  107

Risk Factors Relating to the Ownership of KMI Common Stock

  112

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

  116

THE PARTIES TO THE MERGER

  119

THE EPB SPECIAL MEETING

  120

Date, Time and Place

  120

Purpose

  120

EPGP Conflicts Committee and EPGP Board Recommendation

  120

Record Date; Outstanding Units; Units Entitled to Vote

  120

Quorum

  121

Required Vote

  121

Unit Ownership of and Voting by KMI and EPGP's Directors and Executive Officers

  121

Voting of Units by Holders of Record

  121

Voting of Units Held in Street Name

  122

Revocability of Proxies; Changing Your Vote

  122

Solicitation of Proxies

  123

Unitholders should not send unit certificates with their proxies

  123

No Other Business

  123

Adjournments

  123

Attending the Special Meeting

  123

Assistance

  124

PROPOSAL 1: THE MERGER AGREEMENT

  125

The EPB Merger

  125

Effective Time; Closing

  125

Conditions to Completion of the Merger

  126

EPGP Recommendation and EPB Adverse Recommendation Change

  128

EPB Unitholder Approval

  130

KMI Recommendation and KMI Adverse Recommendation Change

  130

KMI Stockholder Approval

  131

No Solicitation by EPB

  131

Merger Consideration

  132

Treatment of EPB Restricted Units

  133

Adjustments to Prevent Dilution

  133

Withholding

  133

Dividends and Distributions

  133

Financing Covenant

  134

Filings

  134

Regulatory Matters

  134

Termination

  135

Expenses Relating to the Merger

  136

Conduct of Business Pending the Merger

  136

Indemnification; Directors' and Officers' Insurance

  137

Coordination of the Transactions

  137

Notification of Certain Matters Regarding KMP Merger and KMR Merger

  137

EPGP Conflicts Committee

  137

Voting

  138

Amendment and Supplement; Waiver and Consent

  138

Amendments to the KMP Merger Agreement and the KMR Merger Agreement

  138

Remedies; Specific Performance

  139

Representations and Warranties

  139

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Additional Agreements

  140

THE SUPPORT AGREEMENT

  141

MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES

  142

DESCRIPTION OF THE DEBT FINANCING FOR THE TRANSACTIONS

  146

Overview

  146

Interest Rate and Maturity

  146

Guarantees

  146

Prepayments

  146

Representations, Covenants and Events of Default

  147

Fees

  147

Conditions

  148

DESCRIPTION OF KMI'S CAPITAL STOCK

  149

General

  149

Common Stock

  149

Preferred Stock

  150

Certain Anti-takeover Provisions of KMI's Charter and Bylaws and Delaware Law

  150

Certain Other Provisions of KMI's Charter and Bylaws and Delaware Law

  153

Shareholders Agreement

  155

COMPARISON OF RIGHTS OF KMI STOCKHOLDERS AND EPB UNITHOLDERS

  161

Purpose and Term of Existence

  161

Authorized Capital

  161

Dividends / Distributions

  162

Business Combinations

  166

Management by Board of Directors / General Partner

  168

Nomination and Election of Directors / General Partner

  169

Removal of Directors; Withdrawal or Removal of General Partner

  170

Filling Vacancies on the Board; Replacing the General Partner

  171

Transfer of General Partner Interest and Incentive Distribution Rights

  172

Limited Call Rights

  172

Preemptive Rights

  173

Amendment of Governing Documents

  173

Voting Rights; Meetings; Action by Written Consent

  175

Stockholder Proposals and Director Nominations

  176

Indemnification and Limitation on Liability

  177

Conflicts of Interest; Fiduciary Duties

  178

Taxation

  179

Non-Citizen Assignees; Redemption

  180

PROPOSAL 2: ADJOURNMENT OF THE EPB SPECIAL MEETING

  181

EPB UNITHOLDER PROPOSALS

  182

KMI STOCKHOLDER PROPOSALS

  182

LEGAL MATTERS

  183

EXPERTS

  183

WHERE YOU CAN FIND MORE INFORMATION

  184

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS

  187

ANNEXES

 
 

ANNEX A—AGREEMENT AND PLAN OF MERGER

 
A-1

ANNEX B—OPINION OF TUDOR, PICKERING, HOLT & CO. SECURITIES, INC. 

  B-1

ANNEX C—OPINION OF BARCLAYS CAPITAL INC. 

  C-1

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SUMMARY TERM SHEET

        The following summary, together with "Questions and Answers about the EPB Special Meeting and the Proposals," highlights selected information contained in this proxy statement/prospectus. It may not contain all of the information that may be important in your consideration of the proposed EPB merger. To understand more fully the Transactions (as defined below) and the matters to be voted on at the EPB special meeting, we encourage you to read carefully this proxy statement/prospectus, its annexes and the documents we have incorporated by reference into this proxy statement/prospectus before voting. See "Where You Can Find More Information" on page 184. Where appropriate, we have set forth a section and page reference directing you to a more complete description of the topics described in this summary.

Frequently Used Terms.  A few frequently used terms may be helpful for you to have in mind at the outset. This document refers to:

Kinder Morgan, Inc., a Delaware corporation, as "KMI";

El Paso Pipeline Partners, L.P., a Delaware limited partnership, as "EPB";

Kinder Morgan Energy Partners, L.P., a Delaware limited partnership, as "KMP";

Kinder Morgan Management, LLC, a Delaware limited liability company, as "KMR";

Kinder Morgan G.P., Inc., a Delaware corporation and the general partner of KMP, as "KMGP";

El Paso Pipeline GP Company, L.L.C., a Delaware limited liability company and the general partner of EPB, as "EPGP";

the board of directors of KMI as the "KMI board";

the board of directors of EPGP as the "EPGP board";

the conflicts committee of the EPGP board, both before and after the adoption of the formal resolutions forming and delegating authority to the conflicts committee of the EPGP board, as the "EPGP conflicts committee";

the conflicts and audit committee of the KMGP board, both before and after the adoption of the formal resolutions forming and delegating authority to the conflicts and audit committee of the KMGP board, as the "KMGP conflicts committee";

the special committee of the KMR board, both before and after the adoption of the formal resolution forming and delegating authority to the special committee of the KMR board, as the "KMR special committee";

E Merger Sub LLC, a Delaware limited liability company and wholly owned subsidiary of KMI, as "E Merger Sub";

the Class P common stock, par value $0.01 per share, of KMI as "KMI common stock";

the common units representing limited partner interests of EPB as "EPB common units";

the Agreement and Plan of Merger dated as of August 9, 2014, among EPB, KMI, EPGP and E Merger Sub, as it may be amended from time time, as the "EPB merger agreement";

the proposed merger pursuant to the EPB merger agreement whereby KMI will acquire directly or indirectly all of the outstanding EPB common units that KMI and its subsidiaries do not already own as the "merger" or the "EPB merger";

the EPB unitholders (other than EPGP and its affiliates) as the "unaffiliated EPB unitholders";

the Agreement and Plan of Merger dated as of August 9, 2014, among KMP, KMI, KMGP, KMR and P Merger Sub LLC, as it may be amended from time to time, as the "KMP merger agreement";

 

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The Transactions.  The EPB merger is part of a larger series of mergers involving KMI and its three principal subsidiaries, KMP, KMR and EPB. Each merger is contingent on the other two mergers, and at the conclusion of the mergers, KMI will have acquired directly or indirectly all of the outstanding equity interests in KMP, KMR and EPB that KMI and its subsidiaries do not already own.
The Parties to the Merger.  KMI is a Delaware corporation with its common stock traded on the NYSE under the symbol "KMI." KMI owns the general partner interests of, and significant limited partner interests in, KMP and EPB, and significant limited liability company interests in KMR (including all of KMR's voting shares, which are not publicly traded). See "—Relationship of the Parties to the Transactions" below.

 

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The Merger.  KMI, E Merger Sub, EPB and EPGP have entered into the EPB merger agreement. Subject to the terms and conditions of the EPB merger agreement and in accordance with Delaware law, at the effective time of the EPB merger, KMI will acquire directly or indirectly all of the publicly held EPB common units through the merger of E Merger Sub, a wholly owned subsidiary of KMI, with and into EPB, with EPB as the surviving entity. Upon completion of the EPB merger, KMI will have acquired directly or indirectly all of the outstanding EPB common units that KMI and its subsidiaries do not already own, and the EPB common units will cease to be publicly traded.

Relationship of the Parties to the Transactions.  KMI conducts most of its business through KMP and EPB. For 2013, distributions from KMP and EPB represented approximately 87% of the sum of total cash generated by (i) distributions payable to KMI by these two partnerships (on a declared basis) and (ii) distributable cash generated by assets KMI owns and its share of cash generated by its joint venture investments.
Merger Consideration.  At the effective time of the EPB merger, each EPB common unit issued and outstanding (excluding EPB common units owned by EPGP or KMI or any of its other subsidiaries, which will remain outstanding) will be converted into the right to receive, at the election of the holder, one of the following:

$4.65 in cash without interest and 0.9451 of a share of KMI common stock, which is referred to as the "mixed consideration";

$39.53 in cash without interest, which is referred to as the "cash consideration"; or

1.0711 shares of KMI common stock, which is referred to as the "stock consideration."

 

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Treatment of Equity Awards.  Each restricted EPB common unit that is issued and outstanding immediately prior to the effective time of the EPB merger will be treated as an issued and outstanding EPB common unit as of immediately prior to the effective time of the EPB merger and having the same terms and conditions as applied to the EPB common units under the EPB merger agreement.

Interests of Certain Persons in the Transactions.  In considering the recommendations of the EPGP conflicts committee and the EPGP board, EPB unitholders should be aware that some of the executive officers and directors of EPGP have interests in the Transactions that may differ from, or may be in addition to, the interests of EPB unitholders generally. These interests include:

Certain members of the EPGP board are members of the KMI board and many executive officers of EPGP are executive officers of KMI.

The directors and officers of EPGP are entitled to continued indemnification and insurance coverage under the EPB merger agreement, and in the case of the non-employee directors, indemnification agreements.

The non-employee directors on the EPGP board, who serve as the members of the EPGP conflicts committee, have been offered the opportunity to become members of the KMI board after the EPB merger.

The members of the EPGP conflicts committee hold EPB restricted units that will vest immediately prior to the effective time of the EPB merger.

Certain directors and executive officers of EPGP beneficially own units or shares of one or more of the parties to the Transactions, and these directors and executive officers will receive the applicable merger consideration upon completion of the Transactions.
EPB Special Meeting; Unitholders Entitled to Vote; Vote Required.  The special meeting of EPB unitholders will be held on Thursday, November 20, 2014 at 10:00 a.m. local time, at the Kinder

 

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Unit Ownership of KMI and of EPGP's Directors and Executive Officers.  As of October 20, 2014, the record date, KMI and its subsidiaries held and were entitled to vote, in the aggregate, EPB common units representing approximately 40.1% of the outstanding EPB common units, and the directors and executive officers of EPGP held and were entitled to vote, in the aggregate, EPB common units representing approximately 0.1% of the outstanding EPB common units. KMI has agreed in the EPB merger agreement that, subject to limited exceptions, it and its subsidiaries will vote their EPB common units FOR the EPB merger agreement proposal, and we believe that KMI and its subsidiaries intend to vote their EPB common units FOR the EPB adjournment proposal. We believe that the EPGP directors and executive officers intend to vote all of their EPB common units FOR the EPB merger agreement proposal and FOR the EPB adjournment proposal. Accordingly, we believe approximately 40.2% of the outstanding EPB units will be voted in favor of the EPB merger agreement proposal and the EPB adjournment proposal by virtue of KMI's and its subsidiaries' and affiliates' ownership of EPB units. See "The EPB Special Meeting—Unit Ownership of and Voting by KMI and EPGP's Directors and Executive Officers" beginning on page 121.

Recommendation of the EPGP Conflicts Committee and the EPGP Board and Their Reasons for the EPB Merger.  After considering the various factors more fully described in "Special Factors—Recommendation of the EPB Conflicts Committee and the EPGP Board and Their Reasons for the EPB Merger," the EPGP conflicts committee unanimously (i) determined that the EPB merger is fair and reasonable to, and in the best interests of, EPB, after determining that the EPB merger is fair and reasonable to, and in the best interests of, the unaffiliated EPB unitholders, (ii) approved, and recommended that the EPGP board approve, the EPB merger agreement, the execution, delivery and performance of the EPB merger agreement and the transactions contemplated by the EPB merger agreement and submit the EPB merger agreement to a vote of the EPB unitholders and (iii) resolved to recommend approval of the EPB merger agreement by the EPB unitholders. The EPGP conflicts committee's approval constitutes "Special Approval," as such term is defined by the EPB partnership agreement.

 

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Opinion of Tudor, Pickering, Holt & Co. Securities, Inc.  In connection with the EPB merger, Tudor, Pickering, Holt & Co. Securities, Inc., which is referred to as "TPH," delivered an opinion to the EPGP conflicts committee, as to the fairness, from a financial point of view, of the consideration to be received by the unaffiliated EPB unitholders. The EPGP conflicts committee retained TPH to act as its financial advisor and to provide its opinion.
Conditions to Completion of the Merger.  KMI and EPB currently expect to complete the Transactions during the fourth quarter of 2014, subject to receipt of required unitholder, stockholder and regulatory approvals and the satisfaction or waiver of the other conditions to the EPB merger.

 

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Changes in Board or Committee Recommendations.  The EPB merger agreement contains provisions regarding the applicable board of directors' or committee's change in its recommendation.

 

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Risks Relating to the Merger and Ownership of KMI Common Stock.  EPB unitholders should consider carefully all the risk factors together with all of the other information included or incorporated by reference in this proxy statement/prospectus before deciding how to vote. Risks relating to the EPB merger and ownership of KMI common stock are described in the section titled "Risk Factors" beginning on page 107. Some of these risks include, but are not limited to, those described below:

Completion of the EPB merger is contingent upon completion of the KMP merger and the KMR merger, and vice versa. No merger will occur unless all three mergers occur.

The EPB merger is subject to other substantial conditions and may not be consummated even if the required KMI stockholder and EPB unitholder approvals are obtained.

Because the exchange ratios are fixed, EPB unitholders who will receive KMI common stock as part of the merger consideration cannot be sure of the market value of the KMI common stock they will receive as merger consideration relative to the value of the EPB common units they exchange.

The tax liability of an EPB unitholder as a result of the EPB merger could be more than expected and could exceed the cash received by such unitholder in the EPB merger.

All directors and certain executive officers of EPGP have certain interests in the Transactions that are different from those of EPB unitholders generally.

The KMI common stock to be received by EPB unitholders as a result of the EPB merger has different rights from EPB common units.

KMI is entitled to vote its EPB common units, representing approximately 40% of the outstanding EPB common units, in favor of the EPB merger agreement.

The market price of the KMI common stock may be volatile, and KMI stockholders could lose a significant portion of their investments.

 

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Regulatory Approvals Required for the Merger.  We are unaware of any material regulatory approvals that must be received or filings that must be made in order to consummate the EPB merger other than the regulatory approvals required in connection with the KMP merger. See "Special Factors—Regulatory Approvals Required for the Merger" beginning on page 101.

Termination of the Merger Agreement.  KMI and EPB may terminate the EPB merger agreement at any time prior to the effective time of the EPB merger by mutual written consent authorized by the KMI board and the EPGP conflicts committee.
Expenses Relating to the Merger.  Generally, all fees and expenses incurred in connection with the EPB Merger will be the obligation of the respective party incurring such fees and expenses. There is no termination fee payable by either KMI or EPB under any circumstance under the EPB merger agreement.

 

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Comparison of Rights of KMI Stockholders and EPB Unitholders.  A limited partnership is inherently different from a corporation. Ownership interests in a limited partnership are therefore fundamentally different from ownership interests in a corporation. EPB unitholders will own KMI common stock following the completion of the EPB merger, and their rights associated with the KMI common stock will be governed by KMI's certificate of incorporation and bylaws and Delaware corporation law, which differ in a number of respects from the EPB partnership agreement and Delaware limited partnership law. See "Comparison of Rights of KMI Stockholders and EPB Unitholders" beginning on page 161.

No Solicitation by EPB.  The EPB merger agreement contains detailed provisions prohibiting EPGP and EPB from seeking an alternative proposal to the EPB merger. Under these "no solicitation" provisions, EPGP and EPB have agreed that they will not, and will cause their respective subsidiaries and use commercially reasonable best efforts to cause their and their subsidiaries' respective directors, officers, employees, investment bankers, financial advisors, attorneys, accountants, agents and other representatives (collectively, their "representatives") not to, directly or indirectly, except as permitted by the EPB merger agreement:

solicit, initiate, knowingly facilitate, knowingly encourage (including by way of furnishing confidential information) or knowingly induce or take any other action intended to lead to any inquiries or any proposals that constitute the submission of an alternative proposal; or

enter into any confidentiality agreement, merger agreement, letter of intent, agreement in principle, unit purchase agreement, asset purchase agreement or unit exchange agreement, option agreement or other similar agreement relating to an alternative proposal.

 

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No Appraisal Rights.  EPB unitholders will not have appraisal rights in connection with the EPB merger under Delaware law or pursuant to the EPB partnership agreement or the EPB merger agreement. See "Special Factors—No Appraisal Rights" on page 100.

Material U.S. Federal Income Tax Consequences of the Merger.  The receipt of KMI common stock, cash or a combination of KMI common stock and cash in exchange for EPB common units pursuant to the EPB merger will be a taxable transaction for U.S. federal income tax purposes to U.S. holders (as defined in "Material U.S. Federal Income Tax Consequences").
Accounting Treatment of the Merger.  The EPB merger will be accounted for in accordance with Financial Accounting Standards Board Accounting Standards Codification 810, Consolidation—Overall—Changes in a Parent's Ownership Interest in a Subsidiary. As KMI controls EPB and will continue to control EPB after the EPB merger, the changes in KMI's ownership interest in EPB will be accounted for as an equity transaction and no gain or loss will be recognized in KMI's consolidated statements of income resulting from the EPB merger.

Litigation Relating to the Mergers.  Three purported class action lawsuits are currently pending that challenge the merger transactions. Each of the actions names KMI, KMGP, KMR, Richard D. Kinder, Steven J. Kean, Ted A. Gardner, Gary L. Hultquist, and Perry M. Waughtal as defendants. Additionally, KMP, P Merger Sub LLC, E Merger Sub LLC, EPB, EPGP, Ronald L. Kuehn, Jr., Thomas A. Martin, Arthur C. Reichstetter, and William A. Smith are named as defendants in one of the pending actions. The lawsuits are brought on behalf of putative classes seeking to enjoin one or more of the merger transactions and alleging, among other things, that one or more of the

 

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Selected Historical Consolidated Financial Data of KMI.  The following selected historical consolidated financial data as of and for each of the years ended December 31, 2013, 2012, 2011, 2010 and 2009 are derived from KMI's audited consolidated financial statements. The selected historical consolidated financial data as of and for each of the six month periods ended June 30, 2014 and 2013 are derived from KMI's unaudited consolidated financial statements. You should read the following data in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the consolidated financial statements and the related notes thereto set forth in KMI's Annual Report on Form 10-K for the year ended December 31, 2013 and KMI's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2014 incorporated by reference into this proxy statement/prospectus. See "Where You Can Find More Information."

 
  Six Months Ended
June 30,
  Year Ended December 31,  
 
  2014   2013   2013   2012   2011   2010   2009  
 
  (Unaudited)
   
   
   
   
   
 
 
  (in millions, except per share information)
 

Income and Cash Flow Data:

                                           

Revenues

  $ 7,984   $ 6,442   $ 14,070   $ 9,973   $ 7,943   $ 7,852   $ 6,879  

Operating income

    2,160     1,789     3,990     2,593     1,423     1,133     1,257  

Earnings (loss) from equity investments

    199     194     327     153     226     (274 )   123  

Income from continuing operations

    1,098     1,439     2,696     1,204     449     64     523  

(Loss) income from discontinued operations, net of tax

        (2 )   (4 )   (777 )   211     236     250  

Net income

    1,098     1,437     2,692     427     660     300     773  

Net income (loss) attributable to KMI

    571     569     1,193     315     594     (41 )   495  

Class P shares:

                                           

Basic and diluted earnings per common share from continuing operations

  $ 0.55   $ 0.55   $ 1.15   $ 0.56   $ 0.70              

Basic and diluted (loss) earnings per common share from discontinued operations

                (0.21 )   0.04              
                                   

Total basic and diluted earnings per common share

  $ 0.55   $ 0.55   $ 1.15   $ 0.35   $ 0.74              
                                   
                                   

Class A shares:

                                           

Basic and diluted earnings per common share from continuing operations

                    $ 0.47   $ 0.64              

Basic and diluted (loss) earnings per common share from discontinued operations

                      (0.21 )   0.04              
                                         

Total basic and diluted earnings per common share

                    $ 0.26   $ 0.68              
                                         
                                         

Basic weighted-average number of shares outstanding

                                           

Class P shares

    1,028     1,036     1,036     461     118              

Class A shares

                      446     589              

Diluted weighted-average number of shares outstanding

                                           

Class P shares

    1,028     1,038     1,036     908     708              

Class A shares

                      446     589              

Dividends per common share declared for the period(a)

  $ 0.85   $ 0.78   $ 1.60   $ 1.40   $ 1.05              

Dividends per common share paid in the period(a)

    0.83     0.75     1.56     1.34     0.74              

 

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  Six Months Ended
June 30,
  Year Ended December 31,  
 
  2014   2013   2013   2012   2011   2010   2009  
 
  (Unaudited)
   
   
   
   
   
 
 
  (in millions, except per share information)
 

Balance Sheet Data (at end of period):

                                           

Property, plant and equipment, net

  $ 37,607         $ 35,847   $ 30,996   $ 17,926   $ 17,071   $ 16,804  

Total assets

    76,364           75,185     68,245     30,717     28,908     27,581  

Long-term debt—KMI(b)

    8,088           9,321     9,248     2,078     2,918     2,925  

Long-term debt—KMP(c)

    19,610           18,410     15,907     11,183     10,301     10,022  

Long-term debt—EPB(d)

    4,750           4,179     4,254                    

Other Data:

                                           

Ratio of earnings to fixed charges(e)

    2.64           3.18     2.02                    

(a)
Quarterly dividends are paid in the quarter following the quarterly period for which the dividends are declared.

(b)
Excludes debt fair value adjustments. Increases (decreases) to long-term debt for debt fair value adjustments for KMI and its subsidiaries (excluding KMP, EPB and their respective subsidiaries) totaled $714 million, $771 million, $901 million, $40 million, $12 million and $(14 million) as of June 30, 2014, December 31, 2013, 2012, 2011, 2010 and 2009, respectively.

(c)
Excludes debt fair value adjustments. Increases to long-term debt for debt fair value adjustments totaled $1,267 million, $1,214 million, $1,698 million, $1,055 million, $582 million and $308 million as of June 30, 2014, December 31, 2013, 2012, 2011, 2010 and 2009, respectively.

(d)
Excludes debt fair value adjustments. Decrease to long-term debt for debt fair value adjustments totaled $8 million as of June 30, 2014, December 31, 2013 and 2012.

(e)
In all cases, earnings are determined by adding: income before income taxes, extraordinary items, equity income and minority interest; plus fixed charges, amortization of capitalized interest and distributed income of equity investees; less capitalized interest and noncontrolling interest in pre-tax income of subsidiaries with no fixed charges. In all cases, fixed charges include: interest, including capitalized interest; plus amortization of debt discount, premium, and debt issuance costs; plus the estimated interest portion of rental expenses.
Selected Historical Consolidated Financial Data of EPB.  The following selected historical consolidated financial data as of and for each of the years ended December 31, 2013, 2012, 2011, 2010 and 2009 are derived from EPB's audited consolidated financial statements. The selected historical consolidated financial data as of and for each of the six month periods ended June 30, 2014 and 2013 are derived from EPB's unaudited consolidated financial statements. You should read the following data in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the consolidated financial statements and the related notes thereto set forth in EPB's Annual Report on Form 10-K for the year ended December 31, 2013 and EPB's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2014 incorporated by reference into this proxy statement/prospectus. See "Where You Can Find More Information."

 

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  Six Months Ended
June 30,
  Year Ended December 31,  
 
  2014   2013   2013   2012   2011   2010   2009  
 
  (Unaudited)
   
   
   
   
   
 
 
  (in millions, except per unit information)
 

Income and Cash Flow Data:

                                           

Revenues

  $ 735   $ 745   $ 1,505   $ 1,515   $ 1,531   $ 1,454   $ 1,231  

Operating income

    440     455     895     863     849     819     656  

Net income

    304     310     610     589     605     666     542  

Net income attributable to EPB

    304     310     610     579     512     418     357  

Net income attributable to EPB per limited partner unit, basic and diluted:

                                           

Common units

  $ 0.86   $ 0.98   $ 1.86   $ 2.15   $ 2.03   $ 1.90   $ 1.64  

Subordinated units(a)

                                  1.78     1.56  

Per unit cash distributions declared for the period(b)

  $ 1.30   $ 1.25   $ 2.55   $ 2.25   $ 1.93   $ 1.63   $ 1.36  

Per unit cash distributions paid in the period(b)

    1.30     1.23     2.51     2.14     1.87     1.55     1.33  

Balance Sheet Data (at end of period):

   
 
   
 
   
 
   
 
   
 
   
 
   
 
 

Property, plant and equipment, net

  $ 5,817         $ 5,879   $ 5,931   $ 6,040   $ 6,051   $ 5,781  

Total assets

    8,102           6,495     6,581     6,679     6,569     6,565  

Long-term debt(c)

    4,742           4,171     4,246     4,028     3,580     2,732  

(a)
All subordinated units were converted into common units on a one-for-one basis effective January 3, 2011.

(b)
Quarterly distributions are paid in the quarter following the quarterly period for which the distributions are declared.

(c)
Includes debt fair value adjustments. Decreases to long-term debt for debt fair value adjustments totaled $8 million as of June 30, 2014, December 31, 2013 and 2012, and $7 million, $4 million and $1 million as of December 31, 2011, 2010 and 2009, respectively.
Selected Unaudited Pro Forma Condensed Combined Financial Information.  The following table sets forth selected unaudited pro forma condensed combined financial information for KMI after giving effect to the Transactions. The selected unaudited pro forma condensed combined financial information is derived from the unaudited pro forma condensed combined financial statements included in this proxy statement/prospectus. For a complete discussion of the pro forma adjustments underlying the amounts in the table below, please read the section titled "Unaudited Pro Forma Condensed Combined Financial Statements" beginning on page 187.

 
  Six Months
Ended June 30,
2014
  Year Ended
December 31,
2013
 
 
  (in millions, except per share
amounts)

 

Unaudited Pro Forma Condensed Combined Statements of Income Information:

             

Revenues

  $ 7,984   $ 14,070  

Operating income

    2,160     3,990  

Earnings from equity investments

    199     327  

Income from continuing operations

    914     2,151  

Net income

    914     2,147  

Net income attributable to Kinder Morgan, Inc. 

    911     2,143  

Basic and diluted earnings per common share

 
$

0.43
 
$

1.01
 

Basic and diluted weighted-average number of shares outstanding

   
2,118
   
2,126
 

 

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  As of
June 30, 2014
 
 
  (in millions)
 

Unaudited Pro Forma Condensed Combined Balance Sheet Information:

       

Total assets

  $ 79,995  

Total debt(a)

    41,197  

Total liabilities

    47,298  

Total Kinder Morgan, Inc.'s stockholders' equity

    32,368  

Noncontrolling interests

    329  

Total stockholders' equity

    32,697  

(a)
Includes historical debt fair value adjustments of $1,973 million.
Unaudited Comparative Per Share/Unit Information.  The following table sets forth: (a) certain historical per share information of KMI; (b) certain historical per unit information of EPB; and (c) unaudited pro forma combined and equivalent pro forma combined per share information after giving effect to the Transactions.

 
  Six Months
Ended June 30,
2014
  Year Ended
December 31,
2013
 

Historical—KMI

             

Income from continuing operations per share—basic and diluted(a)

  $ 0.55   $ 1.15  

Dividends per share declared for the period

  $ 0.85   $ 1.60  

Book value per share(b)

  $ 12.28   $ 12.70  

Historical—EPB

   
 
   
 
 

Income from continuing operations per unit—basic and diluted

  $ 0.86   $ 1.86  

Distributions per unit declared for the period

  $ 1.30   $ 2.55  

Book value per unit(b)

  $ 12.82   $ 8.73  

Pro forma combined—KMI

   
 
   
 
 

Income from continuing operations per share—basic and diluted(c)

  $ 0.43   $ 1.01  

Dividends per share declared for the period(d)

  $ 1.05   $ 1.88  

Book value per share(e)

  $ 15.28     n/a  

Equivalent pro forma combined—EPB(f)

   
 
   
 
 

Income from continuing operations per share—basic and diluted

  $ 0.41   $ 0.95  

Dividends per share declared for the period

  $ 0.99   $ 1.78  

Book value per share

  $ 14.44     n/a  

(a)
Income from continuing operations per share—basic and diluted amounts are calculated using the two-class method. Earnings are allocated to each class of common stock based on the amount of dividends paid in the current period for each class of stock plus an allocation of the undistributed earnings or excess distributions over earnings to the extent that each security shares in undistributed earnings or excess distributions over earnings.

 

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(b)
The historical book value per share or unit was calculated as follows (in millions, except per share or unit amounts):

 
  Six Months Ended June 30, 2014  
 
  KMI   EPB  

Equity or capital, as applicable, before noncontrolling interests

  $ 12,620   $ 3,026  

Divided by: Number of shares or units outstanding as of end of period

    1,028     236  
           

Book value per share or unit

  $ 12.28   $ 12.82  
           
           

 

 
  Year Ended December 31, 2013  
 
  KMI   EPB  

Equity or capital, as applicable, before noncontrolling interests

  $ 13,093   $ 1,939  

Divided by: Number of shares or units outstanding as of end of period

    1,031     222  
           

Book value per share or unit

  $ 12.70   $ 8.73  
           
           
(c)
Amounts are from the unaudited pro forma condensed combined financial statements included under "Unaudited Pro Forma Condensed Combined Pro Forma Financial Statements."

(d)
The pro forma combined—KMI dividends declared amounts were calculated as follows (in millions, except per share or unit amounts):

 
  Six Months Ended June 30, 2014  
 
  KMI   KMP   KMR(1)   EPB   Total  

Declared dividends or distributions, as applicable, for the period to the public (historical)

  $ 880   $ 833   $ 344   $ 173   $ 2,230  

Divided by: Pro forma combined number of shares outstanding as of date of record

                            2,118  
                               

Dividends per share declared for the period (pro forma)

                          $ 1.05  
                               
                               

 

 
  Year Ended December 31, 2013  
 
  KMI   KMP   KMR(1)   EPB   Total  

Declared dividends or distributions, as applicable, for the period to the public (historical)

  $ 1,664   $ 1,468   $ 551   $ 324   $ 4,007  

Divided by: Pro forma combined number of shares outstanding as of date of record

                            2,126  
                               

Dividends per share declared for the period (pro forma)

                          $ 1.88  
                               
                               

(1)
Reflects the cash equivalent for the KMR share distributions. KMR share distributions are not paid in cash.

 

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(e)
The pro forma combined—KMI, book value per share was calculated as follows (in millions, except per share amounts):

 
  As of
June 30, 2014
 

Equity before noncontrolling interests

  $ 32,368  

Divided by: number of shares outstanding

    2,118  
       

Book value per share

  $ 15.28  
       
       
(f)
Equivalent pro forma amounts are calculated by multiplying pro forma combined KMI amounts by the exchange ratio of 0.9451 shares of KMI common stock for each EPB unit. In addition, the public unitholders of EPB will receive approximately $0.65 billion in cash in total.
Comparative Stock and Unit Prices; Comparative Dividends and Distributions.  KMI common stock is listed on the NYSE under the ticker symbol "KMI." EPB common units are listed on the NYSE under the ticker symbol "EPB." The table below sets forth, for the calendar quarters indicated, the high and low sale prices per share of KMI common stock and per EPB common unit, respectively, on the NYSE. The table also shows the amount of per share cash dividends and per unit cash distributions declared on KMI common stock and EPB common units, respectively, for the calendar quarters indicated.

   
  KMI Common Stock   EPB Common Units  
   
  High   Low   Declared
Cash
Dividends
  High   Low   Declared
Cash
Distributions
 
 

2014

                                     
 

Fourth quarter (through October 17, 2014)

  $ 39.60   $ 33.25         $ 41.45   $ 35.35        
 

Third quarter

    42.49     35.20   $ 0.44     42.94     32.75   $ 0.65  
 

Second quarter

    36.50     32.10     0.43     36.90     30.35     0.65  
 

First quarter

    36.45     30.81     0.42     36.12     28.87     0.65  
 

2013

                                     
 

Fourth quarter

    36.68     32.30     0.41     43.04     33.34     0.65  
 

Third quarter

    40.45     34.54     0.41     44.85     39.90     0.65  
 

Second quarter

    41.49     35.52     0.40     44.99     39.04     0.63  
 

First quarter

    38.80     35.74     0.38     44.19     37.30     0.62  
 

2012

                                     
 

Fourth quarter

    36.50     31.93     0.37     38.65     33.64     0.61  
 

Third quarter

    36.63     32.03     0.36     37.43     33.26     0.58  
 

Second quarter

    40.25     30.51     0.35     35.42     30.64     0.55  
 

First quarter

    39.25     31.76     0.32     38.10     33.34     0.51  

 

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  Equivalent Market
Value per EPB
Common Unit
 
   
  KMI Common
Stock
  EPB
Common Units
  Stock Election   Mixed Election  
 

August 8, 2014

  $ 36.12   $ 33.60   $ 38.69   $ 38.79  
 

October 17, 2014

    36.81     38.89     39.43     39.44  

 

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QUESTIONS AND ANSWERS ABOUT THE EPB SPECIAL MEETING AND THE PROPOSALS

Q:
Why am I receiving these materials?

A:
The EPGP board is sending these proxy materials to provide EPB common unitholders with information about the Transactions and the proposals so that they may determine how to vote their units in connection with the EPB special meeting.

Q:
Who is soliciting my proxy?

A:
Your proxy is being solicited by the EPGP board.

Q:
Where and when is the special meeting?

A:
The EPB special meeting will be held on Thursday, November 20, 2014 at 10:00 a.m. local time, at the Kinder Morgan Building, 1001 Louisiana Street, Houston, Texas 77002.

Q:
What matters will be voted on at the special meeting?

A:
You will be asked to consider and vote on the following proposals:

To approve the EPB merger agreement; and

To approve the EPB adjournment proposal, if adjournment is submitted to a vote of EPB unitholders.

Q:
How do the EPGP conflicts committee and the EPGP board recommend that I vote on the proposals?

A:
The EPGP conflicts committee and the EPGP board each recommend that you vote:

FOR the proposal to approve the EPB merger agreement; and

FOR the EPB adjournment proposal.

Q:
Who is entitled to vote at the special meeting?

A:
The record date for the EPB special meeting is October 20, 2014. Only holders of EPB common units at the close of business on the record date are entitled to notice of, and to vote at, the EPB special meeting or any adjournment or postponement thereof.

Q:
What happens if I sell my EPB common units after the record date but before the special meeting?

A:
If you transfer your EPB common units after the record date but before the date of the EPB special meeting, you will retain your right to vote at the EPB special meeting, but you will not have the right to receive the merger consideration. In order to receive the merger consideration, you must hold your units through the completion of the EPB merger.

Q:
What constitutes a quorum for the special meeting?

A:
The presence, in person or by proxy, of EPB unitholders representing a majority of the EPB common units outstanding on the record date will constitute a quorum for the EPB special meeting.

Q:
What vote is required to approve the proposals?

A:
Approval of the EPB merger agreement requires the affirmative vote of a majority of the outstanding EPB common units. Pursuant to the terms of the EPB partnership agreement, EPGP

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Table of Contents

Q:
How are votes counted?

A:
For the proposal to approve the EPB merger agreement, you may vote FOR, AGAINST or ABSTAIN. Abstentions will count for the purpose of determining whether a quorum is present. If you abstain, it will have the same effect as if you voted against the proposal to approve the EPB merger agreement. Failure to submit your proxy and to attend the meeting will also have the same effect as a vote against the proposal to approve the EPB merger agreement. In addition, if your units are held in the name of a bank, broker, nominee, trust company or other fiduciary, your bank, broker, nominee, trust company or other fiduciary will not be entitled to vote your units on the proposal to approve the EPB merger agreement in the absence of specific instructions from you. These non-voted units will not be counted as present for purposes of determining a quorum and will have the effect of a vote against the approval of the EPB merger agreement.
Q:
How do KMI and EPGP's directors and executive officers intend to vote?

A:
As of October 20, 2014, the record date, KMI and its subsidiaries held and were entitled to vote, in the aggregate, EPB common units representing approximately 40.1% of the outstanding common units, and the directors and executive officers of EPGP held and were entitled to vote, in the aggregate, EPB common units representing approximately 0.1% of the outstanding common units. KMI has agreed in the EPB merger agreement that, subject to limited exceptions, it and its subsidiaries will vote their common units FOR the EPB merger agreement proposal, and we believe KMI and its subsidiaries intend to vote their common units FOR the EPB adjournment proposal. We believe the EPGP directors and executive officers intend to vote all of their common units FOR the EPB merger agreement proposal and FOR the EPB adjournment proposal. Accordingly, we believe approximately 40.2% of the outstanding EPB units will be voted in favor of the EPB merger agreement proposal and the EPB adjournment proposal by virtue of KMI's and its subsidiaries' and affiliates' ownership of EPB units.

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Q:
What will I receive when the merger occurs?

A:
For every EPB common unit that they own at the effective time of the EPB merger, unitholders other than KMI and its subsidiaries will be given the right to receive, at the election of the unitholder but subject to proration, (i) 1.0711 shares of KMI common stock, (ii) $39.53 in cash without interest or (iii) a combination of 0.9451 of a share of KMI common stock and $4.65 in cash without interest. Holders who elect to receive the mixed consideration will not be subject to proration. See "Special Factors—EPB Unitholders Making Elections—Proration and Adjustment Procedures" for more information about how the proration procedures work.

Q:
What will happen to my EPB restricted units?

A:
If the EPB merger is completed, each outstanding EPB restricted unit issued under the EPGP Long-Term Incentive Plan will, immediately before the effective time of the EPB merger, automatically vest in full, and such restricted unit will be treated as an EPB common unit for all purposes under the EPB merger agreement. See "Proposal 1: The Merger Agreement—Treatment of EPB Restricted Units" beginning on page 133.

Q:
When do you expect the merger to be completed?

A:
We are working toward completing the EPB merger as quickly as possible and currently expect the EPB merger to close in the fourth quarter of 2014. In order to complete the EPB merger, we must obtain unitholder approval and the other closing conditions under the EPB merger agreement must be satisfied or waived, as permitted by law. Please see "Proposal 1: The Merger Agreement—Conditions to Completion of the Merger" beginning on page 126 for more details about these closing conditions.

Q:
What do I need to do now?

A:
Please vote as soon as possible. We urge you to read carefully this proxy statement/prospectus, including its annexes, and to consider how the Transactions affect you as a unitholder. You should also carefully read the documents referenced under "Where You Can Find More Information" on page 184.

Q:
How do I vote?

A:
You should simply indicate on your proxy card how you want to vote, and sign and mail your proxy card in the enclosed return envelope as soon as possible so that your units will be represented at the special meeting. If you sign and send in your proxy and do not indicate how you want to vote, your units will be voted for approval of the EPB merger agreement and for the EPB adjournment proposal. If you fail to vote your units, the effect will be a vote against approval of the EPB merger agreement, but it will not affect the vote on any proposal to adjourn the EPB special meeting unless a quorum is present.
Q:
Can I vote by telephone or electronically?

A:
If you hold your units as a unitholder of record, you may vote by telephone or by the Internet by following the instructions set forth on the enclosed proxy card.

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Q:
If my EPB common units are held in a brokerage account, will my broker vote my units for me?

A:
Your broker will only be permitted to vote your EPB common units for you if you instruct them how to vote. Therefore, it is important that you promptly follow the directions provided by your broker regarding how to instruct them to vote your EPB common units. If you do not instruct your broker, how to vote your EPB common units that they hold, those EPB common units will not be voted and the effect will be the same as a vote against the approval of the EPB merger agreement, but it will not affect the vote on any proposal to adjourn the EPB special meeting unless a quorum is present.

Q:
What does it mean if I receive more than one proxy card?

A:
It means that you have multiple accounts at the transfer agent and/or with banks, brokers, nominees, trust companies or other fiduciaries. Please sign and return all proxy cards to ensure that all your units are voted.

Q:
May I change my vote?

A:
Yes. You may change your vote at any time before your proxy is voted at the special meeting, subject to the limitations described below. If you are a unitholder of record, you may do this in a number of ways. First, you may send EPB a written notice stating that you would like to revoke your proxy. Second, you may complete and submit a new proxy card. If you choose either of these two methods, you must submit your notice of revocation or your new proxy card to the secretary of EPB, at the address under "The Parties to the Merger—EPB" on page 119. You also may submit a later-dated proxy using the telephone or Internet voting procedures on the proxy card. If you choose to revoke your proxy by written notice or submit a later-dated proxy, you must do so by 11:59 p.m., Eastern Time, on the day before the special meeting. Finally, you may attend the special meeting and vote in person. Simply attending the EPB special meeting, without voting in person, will not revoke your proxy. If your EPB common units are held in street name and you have instructed a bank, broker, nominee, trust company or other fiduciary, to vote your units, you must follow the directions received from your bank, broker, nominee, trust company or other fiduciary, to change your vote or to vote at the EPB special meeting.

Q:
Should I send in my unit certificates now?

A:
No. The election form, which will be mailed to EPB unitholders prior to the closing of the EPB merger, and the letter of transmittal, which will be mailed to EPB unitholders shortly after the closing of the EPB merger, will contain instructions for the surrender of EPB common unit certificates.

Q:
How and when do I make my stock, cash or mixed election?

A:
You will receive a form of election in a separate mailing. You should carefully review and follow the instructions accompanying that form of election. You will make your stock, cash or mixed election by properly completing, signing and returning the form of election along with unit certificates (or evidence of units in book-entry form) representing EPB common units to Computershare Trust Company, N.A., the exchange agent in connection with the Transactions.

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Q:
Can I change my election after the form of election has been submitted?

A:
Yes. You may revoke your election prior to the election deadline by submitting a written notice of revocation to the exchange agent or by submitting new election materials. Revocations must specify the name in which your units are registered on the unit transfer books of EPB and such other information as the exchange agent may request. If you wish to submit a new election, you must do so in accordance with the election procedures described in this proxy statement/prospectus and in the form of election that you will receive in a separate mailing. If you instructed a bank, broker, nominee, trust company or other fiduciary to submit an election for your units, you must follow the directions of your bank, broker, nominee, trust company or other fiduciary for changing those instructions. Whether you revoke your election by submitting a written notice of revocation or by submitting new election materials, the notice of materials must be received by the exchange agent by the election deadline in order for the revocation or new election to be valid. See "Special Factors—EPB Unitholders Making Elections—Election Revocation and Changes."

Q:
May I transfer my EPB common units after I make my election?

A:
EPB unitholders who have made elections will be unable to sell or otherwise transfer their EPB common units after making the election, unless the election is properly revoked before the election deadline or unless the EPB merger agreement is terminated. See "Special Factors—EPB Unitholders Making Elections—Impact of Selling Units as to which an Election Has Already Been Made."

Q:
What if I do not send a form of election or it is not received?

A:
If the exchange agent does not receive a properly completed form of election from you before the election deadline, together with any unit certificates (or evidence of units in book-entry form) representing the units you wish to exchange for the merger consideration, properly endorsed for transfer, book-entry transfer shares or a guarantee of delivery and any additional documents required by the procedures set forth in the form of election, then you will have no control over the type of merger consideration you receive. EPB unitholders not making an election will be deemed to have made a mixed election. See "Special Factors—EPB Unitholders Making Elections—Non-Electing Holders." You bear the risk of delivery and should send any form of election by courier or by hand to the appropriate address shown in the form of election.
Q:
May I submit a form of election even if I do not vote for the approval of the EPB merger agreement?

A:
Yes. You may submit a form of election even if you vote against the approval of the EPB merger agreement or if you abstain from voting.

Q:
What are the expected U.S. federal income tax consequences to an EPB unitholder as a result of the EPB merger?

A:
The receipt of KMI common stock, cash or a combination of KMI common stock and cash in exchange for EPB common units pursuant to the EPB merger will be a taxable transaction to U.S. holders (as defined in "Material U.S. Federal Income Tax Consequences") for U.S. federal income tax purposes. A U.S. holder will generally recognize capital gain or loss on the receipt of KMI common stock and/or cash in exchange for EPB common units. However, a portion of this gain or loss, which portion will likely be substantial, will be separately computed and taxed as ordinary

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Q:
What are the expected U.S. federal income tax consequences for an EPB unitholder of the ownership of KMI common stock after the EPB merger is completed?

A:
KMI is classified as a corporation for U.S. federal income tax purposes, and thus, KMI (and not its stockholders) is subject to U.S. federal income tax on its taxable income. A distribution of cash by KMI to a stockholder who is a U.S. holder (as defined in "Material U.S. Federal Income Tax Consequences") will generally be included in such U.S. holder's income as ordinary dividend income to the extent of KMI's current and accumulated "earnings and profits" as determined under U.S. federal income tax principles. A portion of the cash distributed to KMI shareholders by KMI after the merger may exceed KMI's current and accumulated earnings and profits. Distributions of cash in excess of KMI's current and accumulated earnings and profits will be treated as a non-taxable return of capital reducing a U.S. holder's adjusted tax basis in such U.S. holder's shares of KMI common stock and, to the extent the distribution exceeds such stockholder's adjusted tax basis, as capital gain from the sale or exchange of such shares of KMI common stock.
Q:
What happens if the merger is not completed?

A:
If the EPB merger agreement is not approved by the EPB unitholders or if the EPB merger is not completed for any other reason, you will not receive any form of consideration for your EPB common units in connection with the EPB merger. Instead, EPB will remain a public limited partnership and its common units will continue to be listed and traded on the NYSE.

Q:
Who can help answer my questions?

A:
If you have any questions about the EPB merger or if you need additional copies of this proxy statement/prospectus or the enclosed proxy card, you should contact D.F. King & Co., Inc., which is acting as the proxy solicitation agent and information agent in connection with the EPB merger.

D.F. King & Co., Inc.
48 Wall Street, 22nd Floor
New York, NY 10005
Banks and Brokers Call Collect: (212) 269-5550
All Others Call Toll-Free: (800) 317-8006
Email: epb@dfking.com

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SPECIAL FACTORS

Effects of the Transactions

        Pursuant to the Transactions, KMI will acquire all of the outstanding equity interests in KMP, KMR and EPB that KMI and its subsidiaries do not already own. For purposes of this proxy statement/prospectus, references to subsidiaries of KMI do not include EPB and its subsidiaries unless otherwise indicated. The following steps will be taken in the following order and substantially concurrently in completing the Transactions:

The KMR merger.  KMI will acquire directly or indirectly all publicly held KMR listed shares through the merger of R Merger Sub LLC with and into KMR, with KMR as the surviving limited liability company. In the KMR merger, pursuant to the KMR merger agreement,

    each KMR listed share held by a public KMR shareholder will be converted into the right to receive 2.4849 shares of KMI common stock;

    each KMR listed share held by KMR, KMI, R Merger Sub LLC or KMGP will be cancelled and receive no consideration;

    each KMR voting share (all of which are owned by a subsidiary of KMI, and which are a different class than KMR listed shares) will be converted into the right to receive 2.4849 shares of KMI common stock, corresponding to the exchange ratio for the KMR listed shares; and

    the interests in R Merger Sub LLC will be converted into 100% of the membership interests in KMR.
The KMP merger.  KMI will then acquire directly or indirectly all publicly held KMP common units through the merger of P Merger Sub LLC with and into KMP, with KMP as the surviving limited partnership. In the KMP merger, pursuant to the KMP merger agreement,

each KMP common unit held by a public KMP unitholder will be converted into the right to receive, at the election of the unitholder but subject to proration, (i) 2.4849 shares of KMI common stock, (ii) $91.72 in cash without interest or (iii) a combination of 2.1931 shares of KMI common stock and $10.77 in cash without interest;

the KMP general partner interest and each KMP common unit (other than any KMP common unit held by KMP, which will be cancelled), Class B unit and new unit issued in exchange for KMP i-units held by KMI and its subsidiaries will remain outstanding and unaffected by the KMP merger; and

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The EPB merger.  KMI will then acquire directly or indirectly all publicly held EPB common units through the merger of E Merger Sub with and into EPB, with EPB as the surviving limited partnership. In the EPB merger, pursuant to the EPB merger agreement,

each EPB common unit held by a public EPB unitholder will be converted into the right to receive, at the election of the unitholder but subject to proration, (i) 1.0711 shares of KMI common stock, (ii) $39.53 in cash without interest or (iii) a combination of 0.9451 of a share of KMI common stock and $4.65 in cash without interest;

the EPB general partner units, the EPB incentive distribution rights and each other EPB unit held by KMI and its subsidiaries will remain outstanding and unaffected by the EPB merger; and

the interests in E Merger Sub will be converted into the same number of EPB common units that were owned by the public EPB unitholders immediately before the consummation of the EPB merger and which were converted into the right to receive the merger consideration.

        Based on the closing price of KMI common stock on August 8, 2014 (the last trading day before announcement of the Transactions),

        Each merger agreement is included as an exhibit to the registration statement of which this proxy statement/prospectus is a part.

        Each of the KMP merger and the EPB merger will be taxable to the former holders of KMP and EPB common units. It is a condition of KMI's obligation to complete the KMR merger that KMI receive an opinion of its counsel, Bracewell & Giuliani LLP, and it is a condition of KMR's obligation to complete the KMR merger that KMR receive an opinion of Baker Botts L.L.P., counsel to the KMR special committee, in each case dated as of the closing date of the KMR merger and based on representations set forth or referred to therein, to the effect that the KMR merger, taken separately or taken together with a second step merger, will qualify as a reorganization within the meaning of Section 368(a) of the Code. Assuming the KMR merger constitutes a reorganization, the KMR merger will be tax free to the former holders of KMR shares, except to the extent of any cash received in lieu of fractional shares as part of the KMR merger consideration. Please see "Material U.S. Federal Income Tax Consequences."

        Each merger agreement is subject to approval by the unitholders or shareholders of KMR, KMP and EPB, as applicable. KMI also is required to hold a special meeting of its stockholders to approve an amendment to its certificate of incorporation to increase the number of authorized shares of KMI common stock and to approve the issuance of KMI common stock in the Transactions. In connection with the merger agreements, Richard D. Kinder and a limited partnership controlled by him have

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entered into a support agreement whereby they have agreed to vote all of the shares of KMI common stock owned by them in favor of the proposals at the KMI special meeting. The support agreement is included as an exhibit to the registration statement of which this proxy statement/prospectus forms a part.

        After the consummation of the KMR, KMP and EPB mergers, KMI, KMP and EPB and substantially all of their wholly owned subsidiaries with debt will enter into cross guarantees with respect to the existing debt of KMI, KMP, EPB and such subsidiaries, so that KMI and those subsidiaries will be liable for the debt of KMI, KMP, EPB and such subsidiaries.


Background of the Transactions

        The senior management and boards of directors of each of KMI, KMGP, EPGP and KMR regularly review operational and strategic opportunities to maximize value for investors of KMI, KMP, EPB and KMR, respectively. In connection with these reviews, the management and boards of directors of each of the companies from time to time evaluate potential transactions that would further their respective strategic objectives.

        As more fully described in the section entitled "Relationship Between the Parties," KMI conducts most of its business through KMP and EPB. KMI directly and indirectly owns approximately 43 million units of KMP. These units, which consist of approximately 22 million common units, 5 million Class B units and 16 million i-units (corresponding to the number of KMR shares owned by KMI), represent approximately 10% of the total outstanding limited partner interests of KMP. KMI also indirectly owns all of the common stock of KMGP, the general partner of KMP, which owns an effective 2% interest in KMP and its operating partnerships and the right to receive incentive distributions from KMP. KMGP has delegated to KMR, subject to limited exceptions, all of its rights and powers to manage and control the business and affairs of KMP and its operating limited partnerships. KMGP also owns all of the shares of KMR that elect the members of the KMR board. KMR owns all of the outstanding i-units of KMP. KMI owns approximately 16 million KMR listed shares, representing approximately 13% of KMR's outstanding shares. KMI also indirectly owns all of the membership interests in EPGP, which owns a 2% general partner interest in EPB, as well as approximately 40% of the outstanding common units of EPB and all of EPB's incentive distribution rights.

        From late-2013 to mid-2014, senior management of KMI, with the assistance of Barclays Capital, financial advisor to KMI, considered and discussed with the KMI board numerous potential strategic alternatives with respect to KMI, KMP, KMR and EPB to enhance value for their respective investors, including a potential reset of the general partner's incentive distribution rights at KMP, a potential equity investment in KMI by a third party, potential combination transactions involving KMP and EPB, and potential strategic alternatives regarding KMP's CO2 business. By mid-March 2014, KMI senior management had determined that none of the potential alternatives reviewed were superior to continuing to operate under the existing structures. Beginning on March 17, 2014, KMI senior management began considering the possibilities surrounding a potential acquisition by KMI of the remaining publicly traded equity securities of KMP, KMR and EPB that it did not already own. During the regularly scheduled KMI board meeting on April 16, 2014, KMI senior management provided a brief update to the KMI board during which it reviewed the numerous potential strategic alternatives that management had been exploring, including potential Transactions involving KMI acquiring KMP, KMR and EPB. The strategic alternatives that KMI senior management reviewed with the KMI board on April 16, 2014 included (i) a potential reset of the general partner's incentive distribution rights at KMP, which the KMI board and KMI senior management dismissed because such a transaction would not be attractive to all parties involved and would provide only a temporary benefit until such time as the incentive distribution once again reached its maximum percentage, and the KMI board's and KMI management's view that a reset of the incentive distribution rights could be implemented from time to time as needed to enable a large accretive acquisition, (ii) a potential equity investment in KMI by a

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third party, which the KMI board and KMI senior management dismissed, because, among other reasons, the equity investment would likely be made at a price that the KMI board and KMI management did not believe was desirable, (iii) potential combination transactions involving KMP and EPB, which the KMI board and KMI senior management dismissed due to tax inefficiencies raised by the potential transactions and the economic terms to accomplish such potential transactions not being attractive to the parties and (iv) potentially separating KMP's CO2 business through a spin-off, initial public offering or sale transaction, which the KMI board and KMI management dismissed due to tax inefficiencies raised by the potential transactions, the dilutive effect of the potential transactions and the valuation uncertainties raised by the potential transactions. These strategic alternatives were considered by the KMI board and KMI senior management taking into account the interests of each of KMP, KMR and EPB and were not reviewed and considered at such time by the KMGP board, KMR board or EPGP board (the KMGP/KMR committee later considered strategic alternatives with its independent advisors as further described in this section entitled "Background of the Transactions").

        On May 13, 2014, KMI senior management again updated the KMI board on its preliminary exploration of the potential Transactions involving KMP, KMR, EPB and KMI. KMI management noted the advantages and issues to be resolved with respect to such transactions. In particular, KMI management noted that it could not recommend that the KMI board seriously consider pursuing the potential Transactions unless and until KMI had received adequate assurances from the credit rating agencies that KMI would be rated investment grade following such transactions. At the meeting, Barclays Capital reviewed its preliminary analysis with the KMI board. The KMI board recognized that the analyses were very preliminary and agreed that KMI management, with the assistance of Barclays Capital, should continue to explore the potential Transactions, including by meeting with the rating agencies in order to obtain their views on KMI's prospective credit rating if such Transactions were completed. Accordingly, KMI management had confidential meetings with the rating agencies in early June 2014 to determine the impact of the potential Transactions on KMI's credit rating. In late June 2014, the rating agencies advised senior management of KMI of their view that following the consummation of the Transactions, KMI would have an investment grade credit rating.

        In late June 2014, KMI also retained Citigroup Global Markets Inc., which is referred to as "Citi," to provide financial advisory services to KMI with respect to a potential acquisition by KMI of KMP, KMR and EPB, including assisting KMI in evaluating certain financial and market perspectives regarding KMI and the potential pro forma financial impact of such Transactions on KMI.

        On July 10, 2014, at a meeting of the KMI board, senior management of KMI provided the KMI board with a preliminary overview of the possible strategic benefits of an acquisition of KMP, KMR and EPB by KMI. Following discussion, the KMI board authorized KMI senior management to continue to explore the possible strategic benefits of the potential Transactions and to initiate a dialogue with the independent board members of each of KMGP, KMR and EPGP with respect to the potential Transactions. After the conclusion of the meeting of the KMI board, Mr. Kinder reached out to the lead independent board members of KMGP, KMR and EPGP to schedule a meeting with the independent board members of KMGP and KMR and a separate meeting with the independent board members of EPGP on July 17 to discuss the potential Transactions.

        On July 16, 2014, the boards of EPGP, KMGP, KMR and KMI met in person in Houston, Texas for their regularly scheduled board meetings. At the separate meeting of the KMI board, senior management of KMI discussed with all members of the KMI board the potential acquisition by KMI of KMP, KMR and EPB. During this discussion, Barclays Capital and Citi each separately reviewed with the KMI board certain preliminary analyses relating to the potential Transactions. Barclays Capital provided an overview of the potential Transactions, including the benefits of structural consolidation of the companies (which include enhanced growth prospects, a lower overall cost of capital, greater dividend coverage and credit enhancement due to the simplification of the corporate structure), an analysis of the pro forma consequences of the potential combination (including with respect to the

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impact on KMI common stock), a sensitivity analysis of the dividend coverage based on various premiums paid to KMP, KMR and EPB, a preliminary "has-gets" analysis which looked at the status quo for each of KMP/KMR and EPB compared with the combined company on a pro forma basis, as well as a comparable companies analysis for KMI. Citi reviewed with the KMI board, among other things, the relative trading performance of KMI, KMP and EPB and relative financial performance of KMI and selected peers, certain market perspectives regarding KMI common stock, potential total investment returns for KMI pro forma for the Transactions and certain potential pro forma financial effects of the transactions on KMI, KMP, KMR and EPB assuming, illustratively, either a 10% or 15% premium paid to each of KMP, KMR and EPB in the transactions. The KMI board also discussed the affiliated nature of the transactions and agreed that members of KMI senior management, including Messrs. Kinder and Kean, as well as Kimberly Dang, Dax Sanders and David DeVeau, would represent KMI in any negotiations and that Messrs. Kinder and Kean would recuse themselves from any deliberations regarding the potential transactions at the boards of KMGP, KMR and EPGP. In addition, Mr. Martin, a director of EPGP, would not participate in any negotiations and would recuse himself from any deliberations regarding the potential transactions at the EPGP board. Members of KMI senior management also discussed with the KMI board their expectation that any potential transactions should be reviewed and approved by the EPGP conflicts committee and the KMGP conflicts committee in accordance with the procedures set forth in the partnership agreements of KMP and EPB and by the independent directors of KMR.

        On July 17, 2014, Mr. Kinder and other members of senior management of KMI along with representatives of Barclays Capital met separately with Ted A. Gardner, Gary L. Hultquist and Perry M. Waughtal, the independent members of the KMGP board and the KMR board, and Ronald L. Kuehn, Jr., Arthur C. Reichstetter and William A. Smith, the independent members of the EPGP board. At each of these meetings, Mr. Kinder and other members of senior management of KMI presented to the independent members of the KMGP board and the KMR board and the independent members of the EPGP board, respectively, an overview of the potential Transactions involving each of KMI, KMP, KMR and EPB. In addition, at each of the meetings, Barclays Capital provided an overview of the challenges of the current structure of the Kinder Morgan family of companies, including the higher cost of capital of KMP and EPB at times limiting the ability of KMP and EPB to be competitive in making large accretive acquisitions and developing large projects needed for a meaningful impact on cash flows per unit, the lower distribution coverage relative to peers, concern around EPB's potential growth, the contribution of KMP's CO2 business relative to KMP's combined businesses and the potential impact to distributions at KMP due to commodity exposure at KMP's CO2 business. Representatives of Barclays Capital also reviewed the potential strategic alternatives that had been considered by the KMI board, including an acquisition of EPB by KMP followed by an acquisition of KMI by KMP, an acquisition of EPB by KMP, an acquisition of EPB by KMI followed by a drop-down of EPB into KMP, a reset of the incentive distribution rights at KMP and alternatives with respect to certain of KMI's business units, and the reasons why the KMI board determined that the proposed Transactions were the best alternative to create value for all equityholders.

        At the meeting with the independent members of the KMGP board and KMR board, Barclays Capital summarized the potential benefits of the proposed Transactions to each of KMP and KMR. At the meeting with the independent members of the EPGP board, Barclays Capital summarized the potential benefits of the proposed Transactions to EPB. At each of the meetings, members of KMI management then informed the independent directors that KMI was interested in exploring an acquisition of KMP and KMR for a 10% premium to the July 16, 2014 closing price of KMP common units (which represented an offer of $10.77 in cash and an exchange ratio of 2.1624 for each KMP common unit and a corresponding exchange ratio of 2.4543 for each KMR share) and an acquisition of EPB for a 10% premium to the July 16, 2014 closing price of EPB common units (which represented an offer of $4.65 in cash and an exchange ratio of 0.9337 for each EPB common unit), and that each

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transaction would be cross-conditioned upon the others. The proposed merger consideration in the case of KMP and EPB would be a mix of cash and KMI common stock (approximately 88% stock and 12% cash) in a taxable transaction and in the case of KMR would be 100% KMI common stock in a non-taxable transaction. KMI management believed that exploring an acquisition at a 10% premium to the July 16th closing price of KMP common units was appropriate based upon the historical trading price of KMP common units. KMI management used the premium being considered to KMP common unitholders as the basis for determining the potential consideration to the KMR shareholders and the premium to be explored with the EPB common unitholders.

        At each of the meetings, Mr. Kinder and the independent directors discussed that, if the independent directors were to proceed with exploring the proposed transaction, (i) any such transaction would be reviewed and subject to approval by the EPGP conflicts committee and the KMGP conflicts committee, in accordance with the procedures set forth in the respective partnership agreements of EPB and KMP, and by the independent members of the KMR board, (ii) the EPGP conflicts committee, the KMGP conflicts committee and the independent members of the KMR board (who are the same individuals who comprise the KMGP conflicts committee) would retain independent legal and financial advisors of their choosing to evaluate the proposed transactions, (iii) Messrs. Kinder and Kean would recuse themselves from any deliberations at the KMGP board, KMR board and, together with Mr. Martin, from any deliberations at the EPGP board, in each case due to their affiliation with KMI, and (iv) members of senior management of KMI would represent KMI in any negotiations, but would provide access to information that the EPGP conflicts committee, the KMGP conflicts committee and the independent members of the KMR board and their respective advisors would need to evaluate the proposed transactions and be available to answer diligence requests and questions they might have in connection with the proposed transactions. Mr. Kinder also discussed with the independent members of the KMGP board, the KMR board and the EPGP board that given the large stock component of the Transactions and the desire to ensure continuity as the entities were combined, KMI would be willing to increase the size of its board of directors, subject to KMI's nominations process, so that all of the independent members of the KMGP board, the KMR board and the EPGP board would be able to continue to participate in the governance of the combined company if they deemed it desirable to the unaffiliated equityholders of KMP, KMR and EPB (as applicable).

        At the conclusion of the respective meetings on July 17, after discussion, each of the KMGP board, the EPGP board and the KMR board delegated authority to evaluate the proposed Transactions to the KMGP conflicts committee, in the case of KMP, Messrs. Kuehn, Reichstetter and Smith, in the case of EPB and the KMR special committee, in the case of KMR. In the case of EPGP, the formal resolutions forming and delegating authority to the EPGP conflicts committee (consistent with the motions approved by the EPGP board on July 17, 2014) were adopted on July 22, 2014 and provided the EPGP conflicts committee the authority to, among other things, (i) review and evaluate the terms of the proposed transactions on behalf of the unaffiliated EPB unitholders, (ii) negotiate, or delegate to any person or persons the ability to negotiate, the terms and conditions of the proposed EPB transaction, (iii) determine whether or not to approve and recommend for approval to the EPGP board the proposed EPB transaction, (iv) make any recommendation to the unaffiliated EPB unitholders regarding what action, if any, should be taken by the unaffiliated EPB unitholders with respect to the proposed EPB transaction and (v) retain independent professional advisors. The formal resolutions forming and delegating authority to the EPGP conflicts committee did not provide the EPGP conflicts committee the authority to review and evaluate, negotiate, approve or make any recommendation to the unaffiliated EPB unitholders regarding any potential alternative transactions to the EPB merger. Therefore, the EPGP conflicts committee considered the proposed transaction against remaining a publicly traded MLP whose general partner interest is owned by KMI, but did not consider other strategic alternatives. In the case of KMGP and KMR, the formal resolutions forming and delegating authority to the KMGP conflicts committee and the KMR special committee (in each case consistent with the motions approved by the KMGP board and the KMR board on July 17, 2014) were adopted

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on August 9, 2014 and provided each of the KMGP conflicts committee and the KMR special committee the authority to, among other things, with respect to KMP and KMR, respectively, (i) review and evaluate the terms and conditions, and determine the advisability, of the proposed KMP/KMR transactions, (ii) make such investigations of potential alternatives to the proposed KMP/KMR transactions only among KMI, KMR, KMP, KMGP, EPB or their affiliates, including maintaining the status quo, as the applicable committee deemed necessary or appropriate, (iii) negotiate, or delegate to any person or persons the ability to negotiate, the terms and conditions of the proposed KMP/KMR transactions, (iv) determine whether to give or withhold the committee's approval of the proposed KMP/KMR transactions, (v) determine whether to make a recommendation to the respective boards whether to approve the proposed KMP/KMR transactions and (vi) retain independent professional advisors. We sometimes refer collectively to the KMGP conflicts committee and the KMR special committee as the "KMGP/KMR committee" for ease of reference.

        Later on July 17, 2014, on behalf of the EPGP conflicts committee, Mr. Smith contacted Vinson & Elkins L.L.P., which we refer to as "Vinson & Elkins," to discuss engaging Vinson & Elkins, given its extensive experience in public company merger transactions and master limited partnership, or "MLP," transactions, to represent the EPGP conflicts committee, upon its formation, in connection with the proposed EPB merger. At the request of the EPGP conflicts committee, Mr. Reichstetter contacted Tudor, Pickering, Holt & Co. Securities, Inc., which we refer to as "TPH," to discuss engaging TPH, given its extensive experience in public company merger transactions and MLP transactions, as financial advisor to the EPGP conflicts committee, upon its formation, in connection with the proposed EPB merger. The EPGP conflicts committee entered into engagement letters with each of Vinson & Elkins and TPH on July 25, 2014 and July 30, 2014, respectively, in each case after reviewing and discussing each firm's historical relationships with KMI and its affiliates, and negotiating acceptable engagement letters.

        In addition, on July 17, 2014, Mr. Hultquist, on behalf of the KMGP/KMR committee, contacted Jefferies to discuss engaging Jefferies with respect to the proposed Transactions, and requested that Jefferies prepare a presentation of Jefferies' qualifications to be given at an in-person meeting with each of the members of the KMGP/KMR committee present. Mr. Hultquist later contacted Baker Botts L.L.P., which we refer to as "Baker Botts," to discuss engaging Baker Botts, given its knowledge and experience with respect to public merger and acquisition transactions, MLPs and KMP and KMR particularly in having acted as legal advisors to committees of the KMGP and KMR boards in prior drop-down transactions, as well as Baker Botts' substantial experience advising MLPs and other companies with respect to transactions similar to the proposed Transactions. An engagement letter detailing the terms of Baker Botts' engagement was entered on August 7, 2014.

        Also on July 17, 2014, KMI management provided representatives of TPH with projections regarding KMP, KMR and EPB on a standalone basis and the pro forma combined company, as well as an analysis of the proposed transactions prepared by Barclays Capital.

        On July 18, 2014, Mr. Sanders and representatives of TPH and Vinson & Elkins participated in a conference call to discuss the proposed economic and tax structure of the proposed EPB merger.

        On July 19, 2014, the EPGP conflicts committee also engaged Richards, Layton & Finger, P.A., which we refer to as "Richards Layton," as Delaware counsel.

        On July 20, 2014, KMI entered into a confidentiality agreement with EPB and on July 21, 2014, KMI entered into a confidentiality agreement with KMP and KMR. Each of the confidentiality agreements contained customary provisions for the confidentiality of discussions and the exchange of information. Neither of the confidentiality agreements contained standstill provisions.

        On July 21, 2014, the KMGP/KMR committee met with representatives of Baker Botts and Jefferies. Prior to Jefferies joining the meeting, the KMGP/KMR committee and Baker Botts discussed

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the terms of the proposed Transactions and the potential benefits of the proposed Transactions, including the lower cost of capital on a pro forma basis as compared to KMP on a standalone basis, the increased ability to pursue acquisitions and higher distribution growth of the combined entity, as well as better distribution coverage for the combined entity. The KMGP/KMR committee and Baker Botts also discussed potential negative impacts of the proposed Transactions, including the tax effects on KMP unitholders. The KMGP/KMR committee and Baker Botts discussed the respective duties of the KMGP/KMR committee with respect to the proposed Transactions and the equity ownership of each of the members of the KMGP/KMR committee in KMI, KMP and KMR. Following such discussion, representatives of Jefferies joined the meeting and discussed Jefferies' experience and qualifications, including with respect to public merger and acquisition transactions, MLPs, KMP's industry generally, and KMP and KMR particularly, as well as its substantial experience advising MLPs and other companies with respect to transactions similar to the proposed transactions. The representatives of Jefferies also noted that Jefferies had not been engaged by KMI, KMP, KMR, EPB or any of their affiliates in the past three years and had no historical M&A or capital markets revenue from or credit exposure to any of them. After Jefferies left the meeting, the KMGP/KMR committee and Baker Botts discussed the qualifications, experience and reputation of Jefferies and another potential financial advisor that had advised the KMGP/KMR committee in prior drop-down transactions, and the KMGP/KMR committee then determined to retain Jefferies as its financial advisor, subject to negotiation of a formal engagement letter with Jefferies. During the course of the negotiation of the Jefferies engagement letter, Jefferies informed the KMGP/KMR committee that a member of the Jefferies team held less than 500 shares of KMI common stock in an investment account managed by a third party. Later in the day on July 21, the KMGP/KMR committee also engaged Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel, which we refer to as "Morris Nichols." An engagement letter detailing the terms of Morris Nichols' engagement was entered into on August 4, 2014.

        Also on July 21, 2014, members of senior management of KMI, including Messrs. Kean, DeVeau and Sanders and Ms. Dang as well as representatives of Barclays Capital, met with representatives of TPH and Vinson & Elkins to make a presentation with respect to the assets, business plan, growth projects and outlook for KMI, KMP and EPB, during which the parties discussed key assumptions underlying management's projections for the standalone companies. Following the diligence session, representatives from Vinson & Elkins met with Messrs. Kuehn, Reichstetter and Smith to review the substance of the diligence session and discuss other procedural matters, including the scope of the authority to be delegated to the EPGP conflicts committee.

        In addition, later that evening on July 21, 2014, after discussions with members of KMI senior management and representatives of Bracewell & Giuliani LLP (counsel to KMI), representatives of Weil, Gotshal & Manges LLP, counsel to KMI and which we refer to as "Weil," sent a draft merger agreement to each of Vinson & Elkins and Baker Botts. The draft merger agreements provided for a mix of cash and stock consideration in the case of EPB and KMP (with no ability to elect between cash and stock consideration) and 100% stock consideration in the case of KMR. In addition, the draft merger agreements provided that for KMI each transaction would be cross-conditioned upon the others and provided for a termination fee of 3.5% of the equity value of KMP, KMR or EPB payable by such entity under specified circumstances and a termination fee of 1.5% of the equity value payable by KMI under specified circumstances. The termination fees would be payable by KMP, KMR and EPB in the event of termination following a change in recommendation or in certain cases where an alternative transaction was consummated within 12 months of termination. The termination fee payable by KMI would be payable only in the event of termination following a change in recommendation by the KMI board. The draft merger agreements included customary "no shop" provisions applicable to KMP, KMR and EPB, but did not include a "no shop" provision applicable to KMI.

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        On July 22, 2014, members of senior management of KMI as well as representatives of Barclays Capital had a conference call with representatives of Jefferies and Baker Botts to discuss the structure of the proposed transactions and their economic terms.

        Also on July 22, 2014, the EPGP conflicts committee met with representatives of TPH, Vinson & Elkins and Richards Layton, to discuss matters related to the proposed EPB merger, including the scope of authority delegated to the EPGP conflicts committee, the terms of the draft EPB merger agreement, the status of the financial diligence and analysis being conducted by TPH, certain economic and tax aspects of the proposed EPB merger and various process matters. Among other items, the EPGP conflicts committee reviewed and discussed information regarding prior relationships between TPH and Vinson & Elkins, as the case may be, and KMI and its affiliates, as well as information regarding personal ownership interests of the TPH representatives advising on the EPB merger in KMI and its affiliates, and determined that the prior relationships and personal ownership interests did not result in a conflict of interest that would result in the inability of either Vinson & Elkins or TPH to serve effectively as independent advisors to the EPGP conflicts committee. The EPGP conflicts committee members also disclosed to each other their respective personal ownership of equity interests in KMI and its affiliates.

        On July 23, 2014, members of senior management of KMI together with representatives of Barclays Capital had separate discussions with representatives of Jefferies and TPH regarding financial due diligence matters.

        On July 24, 2014, members of senior management of KMI as well as representatives of Barclays Capital and Citi, including Messrs. Kean, DeVeau and Sanders and Ms. Dang, met with Mr. Hultquist and representatives of Jefferies and Baker Botts to give a presentation with respect to the assets, business plan, growth projects and outlook for KMI, KMP and EPB.

        Also on July 24, 2014, the EPGP conflicts committee met with representatives from TPH, Vinson & Elkins and Richards Layton. The EPGP conflicts committee and its advisors discussed the financial aspects of the proposed EPB merger and certain aspects of TPH's preliminary views with respect to the proposed EPB merger, which TPH indicated it would be able to present in more detail at the next meeting of the EPGP conflicts committee, scheduled for July 30, 2014. The EPGP conflicts committee members, together with their advisors, discussed, among other things, the EPGP conflicts committee members' view that the benefits of the proposed EPB merger would largely depend on assumptions regarding the growth rate, credit rating and trading yield of the combined company, and also discussed certain challenges and considerations in evaluating the proposed EPB merger, including (i) uncertainty as to how the market would view KMI, on a pro forma basis for the Transactions, given the lack of clearly comparable companies and the broad range of companies that shared some, but not all, of the key characteristics of the combined company from an investment perspective, such as growth rate, dividend profile and asset class, (ii) the taxable nature of the EPB merger to EPB unitholders, combined with the fact that a substantial majority of the merger consideration was anticipated to be paid in KMI common stock, resulting in the EPB merger being comparable to both a cash merger (in which valuation analysis focuses on the value of the consideration being received at a point in time) and a stock merger (in which valuation analysis also focuses on the value of the consideration being received over time), (iii) the fact that the tax consequences of the EPB merger would vary among the EPB unitholders, depending, among other things, on their individual tax characteristics and how long they had owned EPB common units, (iv) challenges facing EPB as a standalone company, specifically its limited expected growth prospects and recontracting risk associated with contract expirations on certain of its pipelines, (v) the fact that, because KMI had indicated it did not wish to consider a sale of its interest in EPB to a third party, EPB had limited strategic alternatives to operating as a standalone company and (vi) the difficulty in projecting the appropriate cost of capital for KMI on a pro forma basis for the Transactions, which would be affected by its credit rating, its trading yield, the methods by which it determined to finance growth and, potentially, external factors such as changes in

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interest rates. After further discussion, the EPGP conflicts committee members requested that TPH focus on these and other issues as it proceeded with its financial analysis of the EPB merger.

        Also at the July 24 meeting, representatives from Richards Layton reviewed with the members of the EPGP conflicts committee their duties under the EPB partnership agreement. The EPGP conflicts committee also reviewed and discussed information regarding current and prior relationships between Richards Layton and KMI and its affiliates, and determined that such relationships did not result in a conflict of interest that would result in Richards Layton not being able to serve effectively as independent advisors to the EPGP conflicts committee.

        The EPGP conflicts committee members also discussed the terms of the EPB merger agreement that Weil had distributed to Vinson & Elkins and the key issues reflected in or raised by the draft, including (i) KMI's ownership of approximately 40% of the EPB common units, and the implications with respect thereto on the appropriateness of a "force the vote" provision, as reflected in the initial draft, or a simple majority approval requirement for the EPB merger, (ii) the embedded optionality at KMI and KMP because their equityholders would also be entitled to vote on the Transactions, (iii) the need for the EPGP conflicts committee to have the ability to change its recommendation, which had been restricted to situations in which there was a "superior proposal" in the initial draft EPB merger agreement, including in the event that the EPGP board approved changes to the proposed EPB merger without the EPGP conflicts committee's consent, (iv) the appropriate remedies in the event the EPGP conflicts committee were to change its recommendation or the EPGP board were to determine to pursue an alternative transaction, compared to the termination fees of 3.5% and 1.5% of equity value, respectively, proposed by KMI, (v) the need for the Transactions to close concurrently and be cross-conditioned on each other, which was inconsistent with KMI's initial proposal that completion of the other mergers only be a condition to KMI's (and not EPB's) obligations to complete the proposed EPB merger and (vi) the need to restrict the ability of the EPGP board or KMI to change the composition of the EPGP conflicts committee or otherwise take actions without the EPGP conflicts committee's consent, which had not been addressed in the initial draft EPB merger agreement.

        After discussion among the EPGP conflicts committee members and its advisors, including as to the benefits and detriments of negotiating any issues in the EPB merger agreement prior to reaching agreement with KMI on the economic terms of the proposed EPB merger, the EPGP conflicts committee instructed its legal advisors to prepare a revised merger agreement providing, among other things, that (i) the completion of the KMP merger and KMR merger would be a mutual closing condition, (ii) the "force the vote" construct would be acceptable, but there would be a "majority of the unaffiliated votes cast" threshold for the EPB unitholder approval of the proposed EPB merger, (iii) the EPGP conflicts committee would have the right to the extent necessary to meet its obligations to change its recommendation of the proposed EPB merger with no termination fee or other costs payable by EPB, (iv) the full EPGP board, in addition to the EPGP conflicts committee, would make a recommendation to the EPB unitholders regarding the proposed EPB merger, (v) there would be restrictions on the ability of KMI and EPGP to alter the composition of the EPGP conflicts committee prior to the termination of the EPB merger agreement and (vi) the EPGP board would be required to provide the EPGP conflicts committee with advance notice of any potential amendment, waiver or decision under the EPB merger agreement and give the EPGP conflicts committee an opportunity to make a recommendation to the EPGP board with respect thereto. The EPGP conflicts committee authorized Vinson & Elkins to revise the EPB merger agreement accordingly and circulate a draft to KMI and its advisors, but (i) to reserve comment in the draft with respect to matters subject to ongoing legal and financial diligence and (ii) to indicate to KMI and its advisors that the EPGP conflicts committee had not yet determined whether a transaction was acceptable on any economic terms, and that the economic terms of any negotiated transaction may result in changes to the EPGP conflicts committee's positions with respect to the EPB merger agreement.

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        On the night of July 24, 2014, representatives of Vinson & Elkins sent a revised draft merger agreement to Weil in accordance with the EPGP conflicts committee's instructions.

        On July 25, 2014, Mr. Sanders had a discussion with representatives of Jefferies regarding the other alternatives that were considered by the KMI board (as described in more detail above).

        Also on July 25, 2014, members of senior management of KMI had a discussion with representatives of TPH regarding tax aspects of the proposed EPB merger.

        On July 25, 2014, the KMGP/KMR committee met with representatives of Baker Botts to discuss the terms of the draft merger agreements previously distributed by Weil. Baker Botts noted that it had engaged in discussions with counsel for KMI with regard to potential alternative tax-free structures.

        On July 28, 2014, the KMGP/KMR committee met with representatives of Baker Botts and Morris Nichols to discuss proposed revisions to the KMP merger agreement made by Baker Botts and, after review with the members of the KMGP conflicts committee, Baker Botts sent a revised draft of the KMP merger agreement to Weil, which, among other things, included more expansive representations and warranties and interim operating covenants applicable to KMI, a requirement that a majority of the unitholders of KMP other than KMI and its affiliates vote in favor of the merger agreement, a "no shop" covenant applicable to KMI in addition to KMP, a requirement that certain directors of KMI sign a support agreement, a limit on KMI's ability to revoke or diminish the authority of the KMGP/KMR committee and a provision that the termination fees payable by either KMP or KMI should be the same amount and payable only in the event of entering into an alternative transaction within 12 months of terminating the merger agreement under certain circumstances.

        On July 28, 2014, Weil distributed to Vinson & Elkins a revised draft of the EPB merger agreement.

        On July 29, 2014, representatives of Weil and Baker Botts had a conference call to discuss the changes proposed in the revised draft of the KMP merger agreement sent by Baker Botts on July 28, in which Weil relayed KMI's position that KMI would not agree to the proposed changes to the interim operating covenant limiting KMI's operations prior to closing other than with respect to operating in the ordinary course, the requirement that a majority of the unitholders of KMP other than KMI and its affiliates vote in favor of the merger agreement, the limitation on KMI's ability to revoke or diminish the KMGP/KMR committee's authority or the KMGP/KMR committee's revised termination fee structure. Weil noted that KMI would be willing to accept certain of the proposed changes to the representations and warranties and agree to a "no shop" covenant applicable to KMI and that Mr. Kinder would be willing to enter into a support agreement to vote his KMI common stock in favor of the proposals at the KMI stockholders' meeting if such obligation would fall away in the event of an adverse KMI board recommendation.

        Later in the evening of July 29, Baker Botts sent a revised draft of the KMR merger agreement to Weil implementing substantially similar changes as proposed in the revised draft of the KMP merger agreement sent by Baker Botts to Weil on July 28.

        On July 30, 2014, the KMGP/KMR committee met with representatives of Baker Botts, Morris Nichols and Jefferies. Baker Botts reviewed with the KMGP/KMR committee the matters discussed with Weil during the July 29 discussion. Baker Botts and Morris Nichols then discussed the duties of the KMGP/KMR committee under the KMP partnership agreement and the KMR limited liability company agreement. Baker Botts and Morris Nichols also discussed the issues presented by Messrs. Gardner, Hultquist and Waughtal serving on each of the KMGP conflicts committee and the KMR special committee and having the same advisors for each committee. Baker Botts noted that, as the KMGP conflicts committee, Messrs. Gardner, Hultquist and Waughtal would make a determination with respect to the Transactions as to the interests of the KMP unitholders, and, as the KMR special committee, Messrs. Gardner, Hultquist and Waughtal would separately make a determination with

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respect to the Transactions as to the interests of the KMR shareholders. The KMGP/KMR committee discussed the interests of the KMP unitholders and the KMR shareholders, and, in this regard, noted that the KMI proposal included the same effective exchange ratio for KMP and KMR and discussed the common interests of KMP unitholders and KMR shareholders, including that (i) KMP common units and KMR shares had a long history of trading in parallel, recently within a tight trading range, and (ii) the economic interests and pro rata ownership of the underlying assets, liabilities and net worth of KMP were the same, because KMR's only material assets are KMP i-units. The KMGP/KMR committee also discussed the different interests of the KMP unitholders and KMR shareholders, including (i) the historical and current trading discount of KMR shares to KMP common units and the resulting merger premium difference as a result of the KMI proposal having the same effective exchange ratio for KMP and KMR, (ii) that the KMP merger would be a taxable transaction for KMP unitholders who had historically received partially or wholly non-taxable cash distributions, depending upon the individual situation of the unitholder, and the KMR merger would not be a taxable transaction for KMR shareholders, (iii) the entity-level tax treatment of KMP and KMR on a historical basis and of KMI going forward, (iv) the different cash/stock consideration mix for KMP unitholders and KMR shareholders and (v) the differences in the economic and legal attributes of KMP common units and KMR shares, including with respect to distributions. The KMGP/KMR committee discussed potential alternative approval structures including the appointment of additional directors to serve on either committee. In addition to the above, the KMGP/KMR committee discussed issues presented by alternative approval structures and hiring separate advisors for each committee, including (i) that the appointment of new directors, who would have less, if any, familiarity with the business of KMP or KMR and the issues giving rise to the proposed Transactions, would not better serve the interests of either entity or their respective equity holders, and (ii) the potential that a delay caused by identifying and appointing additional directors and hiring additional advisors could increase the risk of subsequent disparate trading prices of the four equity securities involved, which in each case could materially jeopardize the approval process and be a material detriment to the receipt by the unaffiliated KMP unitholders and KMR shareholders of the substantial benefits of the proposed Transactions.

        Following such discussion, Jefferies provided a presentation to the KMGP/KMR committee, which included a discussion of the benefits of the proposed Transactions, including, among others, (i) the simplification of the Kinder Morgan organizational structure, (ii) the lower cost of capital of the combined entity and the resulting ability to fund acquisitions and capital expenditures necessary to grow dividends of the combined entity and (iii) the higher projected dividend growth and stronger coverage ratio of the combined entity as compared to KMP on a stand-alone basis. Jefferies discussed various other matters with the KMGP/KMR committee, including (i) the potential tax implications of the proposed Transactions, (ii) the different premiums reflected in the proposed merger consideration for the various transaction parties as a result of recent trading prices, (iii) risks associated with sustaining the projected dividend growth of the combined entity and (iv) the near-term dilution for KMP unitholders and KMR shareholders. The KMGP/KMR committee discussed with Baker Botts and Jefferies the tax treatment of the KMP merger and potential alternative structures. Following such discussion, the KMGP/KMR committee directed Baker Botts and Jefferies to further review the tax implications of the proposed Transactions and consider potential alternative tax structures. Jefferies then discussed the financial projections and the pro forma trading analysis provided by KMI and reviewed the discussions Jefferies had engaged in with KMI management regarding such projections and analyses and the operations and assets and the planned capital program of the various entities. Jefferies then provided a presentation of its financial analyses performed to date, including (i) an implied premium analysis, (ii) a historical trading volume and price analysis, (iii) a review of analyst projections, (iv) an analysis of the historical trading discount of KMR shares relative to KMP common units, (v) a comparable company yield analysis, (vi) a discounted cash flow analysis, (vii) a historical exchange ratio analysis, (viii) a premiums paid analysis and (ix) an analysis of weighted average cost of

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capital. The KMGP/KMR committee also discussed with its advisors the relative ownership of KMP and KMR equity holders in the pro forma entity.

        The KMGP/KMR committee then engaged in a discussion with its advisors regarding making a counterproposal to KMI requesting additional merger consideration payable to KMP unitholders and KMR shareholders. Following such discussion, the KMGP/KMR committee directed Mr. Hultquist and Mr. Peter Bowden of Jefferies to meet with representatives of KMI to propose that (i) KMI increase the KMP and KMR merger consideration to $11.77 in cash (which represented a $1.00 increase to the cash consideration offered by KMI on July 17) and an exchange ratio of 2.162 for each KMP common unit (with an equivalent all-stock offer of 2.4813 shares of KMI common stock for each KMR share), (ii) the 2.162 exchange ratio be fixed as of that date and not adjusted on the basis of fluctuations in the trading values of any of the relevant entities during the period preceding the execution of definitive agreements with respect to the proposed Transactions, (iii) KMP unitholders be given a choice to elect between all stock consideration, all cash consideration and a mix of cash and stock consideration and (iv) the KMGP/KMR committee would be willing to accept such revised merger consideration subject to any changes to the EPB merger consideration. The KMGP/KMR committee's decision to propose an increase in the cash consideration payable in the KMP merger and to propose that each KMP unitholder could elect to receive all cash or all KMI stock or a combination of cash and stock as determined by the unitholder, was specifically to provide KMP unitholders the option of electing additional cash consideration to satisfy tax obligations resulting from the KMP merger, as well as to improve the overall consideration payable in the Transactions for both KMP unitholders and KMR shareholders. In determining to propose such increases and determining the amount of increases to be proposed, the KMGP/KMR committee considered the anticipated tax treatment and estimated tax obligations of KMP unitholders, the additional benefit to both KMP unitholders and KMR shareholders of the increased consideration, the elimination of incentive distributions, the impact on the balance sheet of the combined company of an increase in the cash consideration payable in the Transactions and that the initial KMI proposal was attractive in light of the various issues facing KMP, including with respect to the burden on its cost of capital due to incentive distributions, and was within a reasonable range of valuation as portrayed by the information and analyses provided by Jefferies. Following such discussion, representatives of Jefferies left the room and the KMGP/KMR committee discussed with Baker Botts and Morris Nichols issues relating to the derivative claims that had been filed on behalf of KMP with respect to allocations of capital expenditures.

        Following the KMGP/KMR committee meeting on July 30, Messrs. Hultquist and Bowden met with Mr. Dax Sanders, Vice President of Corporate Development for KMI, and proposed the changes discussed at the KMGP/KMR committee meeting earlier that day.

        Also on July 30, 2014, the members of the EPGP conflicts committee met with representatives from TPH, Vinson & Elkins and Richards Layton. At the meeting, representatives of TPH reviewed with the EPGP conflicts committee members the preliminary financial analysis together with supplementary materials that had been completed by TPH with respect to the proposed EPB merger, and circulated to the EPGP conflicts committee members prior to the meeting, which included (i) a comparable companies multiples analysis with respect to both EPB on a standalone basis and KMI on a pro forma basis for the Transactions, (ii) a comparable transaction analysis, (iii) a discounted cash flow analysis, (iv) a present value of future share price analysis, (v) a relative contribution analysis, (vi) a premiums paid analysis and (vii) an analysis of the pro forma financial impacts of the EPB merger and the Transactions. The EPGP conflicts committee members discussed the assumptions underlying the analyses and the basis therefor with their advisors, including (i) the companies selected as comparable to EPB and pro forma KMI, and the reasons for their selection, as well as the EPGP conflicts committee's view that each of the companies selected was distinguishable from the pro forma combined company in ways that could be material to the analysis, (ii) the transactions selected as comparable to the EPB merger, and the fact that the unique aspects of the proposed transactions

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resulted in a set of comparable transactions that were each distinguishable at least to some extent from the proposed EPB merger and (iii) the assumptions utilized by TPH in determining EPB's and the combined company's costs of capital.

        TPH also reviewed with the EPGP conflicts committee members, at their request, their discussions with KMI management regarding the standalone financial projections for EPB, KMP and KMI and the pro forma financial projections for KMI. Among other things, TPH indicated that KMI management had confirmed the same financial projections had been shared with each of KMP and KMR, and that such projections were substantially the same as those provided to the rating agencies by KMI as it conducted diligence on the likely credit ratings that would be assigned to the pro forma combined company. The EPGP conflicts committee members discussed at length the importance of the pro forma financial projections in evaluating the benefits of the proposed EPB merger, and the necessity of fully understanding the assumptions underlying such projections.

        Also during this meeting, representatives from Vinson & Elkins updated the EPGP conflicts committee regarding its negotiations with Weil regarding the EPB merger agreement and the outstanding key issues in the revised draft that Weil had distributed to Vinson & Elkins, which included, among other things, (i) the completion of the KMP merger and KMR merger as a mutual closing condition (to which KMI had agreed), (ii) a "majority of the unaffiliated votes cast" threshold for the EPB unitholder approval of the proposed EPB merger (which KMI had rejected and indicated that it was not willing to proceed with a transaction that included such a requirement) and a voting agreement by Mr. Kinder with respect to the KMI stockholder approvals (to which KMI and Mr. Kinder had agreed), (iii) the EPGP conflicts committee's right to change its recommendation with respect to the proposed EPB merger to the extent necessary to meet its obligations under the EPB partnership agreement or applicable law (to which KMI had agreed), with no termination fee or other costs payable by EPB (which KMI had rejected), including in the event the EPB merger agreement were amended or waived (which KMI had rejected) and (iv) restrictions on the ability of KMI and EPGP to alter the composition of the EPGP conflicts committee prior to the termination of the EPB merger agreement (which KMI had rejected). After discussion, the EPGP conflicts committee determined that each of the issues discussed that had been rejected by KMI was important to EPB and that the EPGP conflicts committee was not prepared to concede to any of such issues. The EPGP conflicts committee instructed its advisors to prepare a revised draft of the EPB merger agreement and to negotiate its terms consistent with those instructions.

        In the afternoon of July 30, 2014, representatives of Vinson & Elkins and members of senior management of KMI also had a due diligence call regarding certain regulatory and litigation matters, including derivative claims that had been filed on behalf of EPB.

        Later that day, representatives of Weil sent a revised draft of the KMP merger agreement to Baker Botts, which implemented the changes discussed between representatives of Weil and Baker Botts on July 29. In addition, the revised draft provided for a termination fee equal to 3.5% of the equity value of KMP payable by KMP to KMI and an unspecified termination fee payable by KMI to KMP in certain circumstances through a waiver of a portion of KMGP's incentive distributions in light of certain tax requirements that a certain percentage of KMP's gross income be treated as "qualifying income" for tax purposes.

        On July 31, 2014, the KMGP/KMR committee met with representatives of Baker Botts. The KMGP/KMR committee and Baker Botts discussed potential additional analyses to be performed by Jefferies, including with respect to projected trading prices of KMI common stock following the proposed Transactions and the relative credit profiles of KMP as a standalone company and KMI following the proposed Transactions. Baker Botts reviewed the revisions to the KMP merger agreement sent by Weil to Baker Botts on July 30. Following a discussion of such revisions, the KMGP/KMR committee directed Baker Botts to continue to negotiate with Weil with respect to (i) KMI's interim

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operating covenants, (ii) the requirement that a majority of the unitholders of KMP other than KMI and its affiliates vote in favor of the merger agreements, (iii) the limitation on KMI's ability to revoke or diminish the KMGP/KMR committee's authority and (iv) the KMGP/KMR committee's prior proposal with respect to termination fees. The KMGP/KMR committee agreed to accept Mr. Kinder's proposal that the support agreement to vote his KMI common stock in favor of the proposals at the KMI stockholders' meeting would fall away in the event of an adverse KMI board recommendation.

        On July 31, 2014, Mr. Sanders communicated a revised proposal to Mr. Hultquist and representatives of Jefferies of $10.77 in cash and an exchange ratio of 2.1889 for each KMP common unit and a corresponding exchange ratio of 2.4787 for each KMR share, which represented KMI accepting the proposed increase to the overall amount of consideration as proposed by Mr. Hultquist on July 30th with the increase in total consideration coming in the form of additional KMI common stock instead of additional cash had been requested by Mr. Hultquist on July 30th. The increase in total consideration was provided in the form of additional KMI common stock rather than additional cash to limit the amount of indebtedness KMI would need to raise to finance the Transactions. Mr. Sanders noted that KMI was willing to provide KMP unitholders with a choice to elect the form of consideration, subject to proration, and that there could be no assurance at such time as to what the maximum exchange ratio would be for the EPB merger.

        Later that day, Mr. Sanders spoke with Ronald Kuehn, a member of the EPGP conflicts committee, regarding the proposed Transactions and the status of negotiations with the EPGP conflicts committee, the KMGP conflicts committee and the KMR special committee. Mr. Sanders advised Mr. Kuehn that he expected that the most recent proposed exchange ratio from KMP would be an exchange ratio that management would recommend to the KMI board for approval. Mr. Sanders also informed Mr. Kuehn that KMI was focused on proceeding as quickly as possible with negotiations on the economic terms of the proposed EPB merger. Mr. Kuehn informed Mr. Sanders that the EPGP conflicts committee viewed the consideration payable to KMP unitholders and KMR shareholders as linked to the EPB consideration, given the nature of the Transactions, and indicated that he expected that the terms proposed by KMI for the EPB merger would be modified to reflect any agreement on a change in the premium agreed to between KMP or KMR and KMI. Mr. Kuehn reported that Mr. Sanders would not confirm the implications, if any, of the KMI/KMP negotiations on the proposed economic terms for the EPB merger, but that he would respond to Mr. Kuehn after he had discussed the matter internally.

        Later on July 31, 2014, Vinson & Elkins distributed a revised draft EPB merger agreement to Weil, which draft reflected the position of the EPGP conflicts committee as of the July 30, 2014 committee meeting, as well as a request for certain additional documents and conference calls to support legal due diligence of the proposed EPB merger.

        During the morning of August 1, 2014, the EPGP conflicts committee met with representatives from TPH, Vinson & Elkins and Richards Layton. During the meeting, the members of the EPGP conflicts committee discussed Mr. Kuehn's conversation with Mr. Sanders the prior evening, as well as economic aspects of the proposed EPB merger and strategies with respect to the negotiation of the appropriate exchange ratio assuming the EPGP conflicts committee determined to proceed with the proposed EPB merger. The EPGP conflicts committee members also discussed outstanding diligence items and additional financial analysis that needed to be completed prior to negotiating an appropriate exchange ratio.

        On August 1, 2014, Messrs. Sanders and DeVeau discussed with Mr. Hultquist and representatives of Jefferies the timeline for the proposed Transactions and KMI's revised proposal to EPB based on the revised proposal made to KMP. Messrs. Sanders and DeVeau then spoke with Mr. Kuehn to provide him with additional details as to the status of KMI's negotiations with KMP and KMR, including that KMP had proposed an increase in the value of the merger consideration payable to

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KMP unitholders that would result in an implied premium of 12.5% to KMP unitholders based on the trading prices of KMP common units and KMI common stock on July 29, 2014. Messrs. Sanders and DeVeau also indicated to Mr. Kuehn that KMI would also modify the economic proposal to EPB to provide for an implied premium of 12.5% to EPB unitholders based on July 29, 2014 trading prices, such that EPB unitholders would receive $4.65 in cash and an exchange ratio of 0.9142 for each EPB common unit. Mr. Kuehn informed Messrs. Sanders and DeVeau that he would communicate the revised proposal to his fellow EPGP conflicts committee members and advisors.

        On August 1, 2014, representatives of Baker Botts sent a revised draft of the KMP merger agreement to Weil, which provided for, among other things, the requirement for approval of the KMP merger agreement by a majority of the KMP unitholders excluding KMI and its affiliates, additional representations and warranties of KMI, a limitation on KMI's ability to revoke or diminish the KMGP/KMR committee's authority, interim operating covenants applicable to KMI's operations between signing and closing and removal of the termination fees entirely (or, in the alternative, payment of termination fees in reciprocal circumstances). In addition, on that same day, representatives of Vinson & Elkins sent a revised draft EPB merger agreement to Weil, which provided for, among other things, the requirement that the EPB merger agreement be approved by a majority of the EPB unitholders excluding EPGP and its affiliates and the removal of any termination fee payable by EPB to KMI.

        In a series of two meetings on the evening of August 1, 2014, the EPGP conflicts committee met with representatives of TPH, Vinson & Elkins and Richards Layton to discuss the terms of the revised KMI proposal, including the fact that, due to a larger relative decline in the trading price of EPB common units as compared to KMP common units and KMR common shares during the period from July 16, 2014 (the reference date for the initial KMI proposal) and July 29, 2014 (the reference date for the revised KMI proposal), the revised KMI proposal resulted in a decrease in the pro forma ownership of the combined company by the public EPB unitholders from 6.05% to 5.94%, and a decrease in the exchange ratio for the stock component of the merger consideration from 0.9337 of a share of KMI common stock for each EPB common unit to 0.9142 of a share of KMI common stock for each EPB common unit. The EPGP conflicts committee members authorized TPH to contact Mr. Sanders and indicate that the EPGP conflicts committee believed that the revised KMI proposal did not result in a comparable increase in the proposed value of the merger consideration payable to EPB unitholders, when compared to KMP unitholders, and that a comparable increase would result in an exchange ratio of 0.9451 of a share of KMI common stock for each EPB common unit and $4.65 in cash for each EPB common unit, with the public EPB unitholders holding 6.12% of the combined company. On the night of August 1, 2014, representatives from TPH communicated this response to Mr. Sanders.

        Also on August 1, 2014, members of senior management of KMI had a supplemental discussion with representatives of TPH regarding tax aspects of the proposed EPB merger.

        On August 3, 2014, representatives of Baker Botts sent a revised draft of the KMR merger agreement to Weil implementing certain changes applicable solely to KMR, and noting that the changes made to the KMP agreement sent by Baker Botts to Weil on August 1 should be made to the KMR merger agreement.

        On the morning of August 4, 2014, the EPGP conflicts committee met with representatives of TPH, Vinson & Elkins and Richards Layton to discuss TPH's financial analysis with respect to the revised proposal made by KMI on August 1, which contained similar substantive financial analysis to the preliminary analysis presented on July 30, 2014. TPH led the discussion of the financial analysis and responded to a number of questions regarding the analysis. Following further discussion, the EPGP conflicts committee members, based in part upon the analysis, determined that, subject to further diligence of the growth prospects and expected trading yield, credit rating and cost of capital of the

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combined company, the proposed EPB merger could likely be economically advantageous to holders of EPB common units as compared to the status quo of continuing to operate as a stand-alone entity controlled by KMI. The EPGP conflicts committee members determined, however, to defer making any counterproposal until after a diligence session with KMI management on the forecasts for the combined company scheduled for that afternoon.

        Later on August 4, 2014, representatives of Weil and Baker Botts had a conference call in which Weil informed Baker Botts that KMI was not willing to proceed with a transaction that included a requirement that the KMP merger be approved by a majority of the KMP unitholders excluding KMI and its affiliates. Later that day, representatives of Weil sent Baker Botts and Vinson & Elkins revised merger agreements, both of which included a cash/stock election mechanism and limited each board's ability to change its recommendation to instances in which there was a "superior proposal" or an "intervening event" and limited the circumstances in which a termination fee would be payable to those instances in which change in recommendation had occurred due to a superior proposal (as opposed to an intervening event).

        Also on August 4, 2014, representatives of Jefferies met with senior management of KMI to discuss the projected tax implications of the proposed transaction and Jefferies requested additional information with respect to (i) KMI's step-up in basis for KMP's and EPB's assets as a result of the proposed Transactions, (ii) the projected tax depreciation resulting from the transaction as proposed (a taxable transaction to KMP and EPB unitholders) and that would result from a transaction that was non-taxable to KMP and EPB unitholders and (iii) the projected tax implications to KMP unitholders.

        On the afternoon of August 4, 2014, the EPGP conflicts committee met with Messrs. Kean, DeVeau and Sanders and Ms. Dang from KMI, as well as representatives from TPH and Vinson & Elkins, to review with KMI management certain key assumptions underlying management's projections for the combined company, including (i) the backlog of growth projects and expected timing thereof, (ii) the credit ratings and costs of capital of the combined company, (iii) the trading yield of the combined company and (iv) the expected growth rate of dividends and EBITDA of the combined company. During and following the presentation, the EPGP conflicts committee members and their representatives asked questions of the KMI representatives regarding these assumptions. During the diligence session, Mr. Sanders also confirmed for the EPGP conflicts committee members that there had been no change in the economic terms proposed by KMI to either KMP or KMR since the revised proposal made to the EPGP conflicts committee on August 1.

        Following the conclusion of the diligence session, the EPGP conflicts committee met, together with representatives from TPH and Vinson & Elkins, to discuss the substance of the diligence session, as well as the appropriate counterproposal to KMI. The EPGP conflicts committee members discussed their view of the assumptions underlying KMI management projections based upon the diligence completed by the EPGP conflicts committee and its advisors, including the immediately preceding session with KMI management, and their general agreement that the proposed EPB merger would be economically beneficial to holders of EPB common units compared to the status quo of continuing to operate as a standalone entity controlled by KMI. Vinson & Elkins also reviewed with the EPGP conflicts committee members certain key issues in the revised merger agreement received from Weil earlier that day, including that (i) the draft imposed restrictions on the ability of the EPGP conflicts committee to change its recommendation of the proposed EPB merger in circumstances in which there was not a superior proposal or intervening event, (ii) the draft permitted KMI to vote its EPB common units (representing approximately 40% of the outstanding EPB common units) against the proposed EPB merger in the event the KMI board were to change its recommendation of the proposals related to the proposed EPB merger, (iii) EPB would be obligated to pay to KMI a termination fee in the event that the EPGP conflicts committee or EPGP board were to change its recommendation in connection with a superior proposal, (iv) the EPB merger would not be subject to the approval of holders of a majority of the EPB common units held by unaffiliated EPB unitholders that actually vote

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on the proposed EPB merger, as had been proposed by EPB and (v) KMI would have the ability to amend the KMP merger agreement or KMR merger agreement even in ways that affected the value of the EPB merger consideration.

        After discussion, the EPGP conflicts committee authorized the representatives from TPH and Vinson & Elkins to contact Mr. Sanders and representatives of Weil to deliver a counterproposal, with the following key terms: (i) each public EPB unitholder would receive 0.958 of a share of KMI common stock and $4.65 cash for each EPB common unit owned, which would represent an implied 12.5% premium using trading prices as of July 16, and a 17% premium using trading prices as of August 1; and (ii) four key issues in the EPB merger agreement were favorably resolved, including that (A) the EPGP conflicts committee would have an unfettered ability to change its recommendation of the proposed EPB merger if it determined the proposed EPB merger was no longer in the best interests of EPB, for any reason, and such a change in recommendation by the EPGP conflicts committee would invalidate and rescind any prior "Special Approval" of the EPB merger agreement and the EPB merger, (B) KMI agree to vote its EPB common units (representing approximately 40% of the outstanding EPB common units) in favor of the EPB merger in all circumstances, unless the EPGP conflicts committee or EPGP board changed its recommendation of the proposed EPB merger, (C) EPB would not be obligated to pay to KMI a termination fee for any reason, including a change in recommendation by the EPGP conflicts committee and (D) KMI would not be permitted to amend the KMP merger agreement or KMR merger agreement in ways that affected the value of the EPB merger consideration, without the consent of the EPGP board. If these issues were favorably resolved, the EPGP conflicts committee indicated it could accept the inclusion of the "force the vote" construct and the removal of the "majority of the unaffiliated votes cast" condition.

        On the evening of August 4, 2014, representatives from TPH contacted Mr. Sanders to communicate the terms of the counterproposal, which Mr. Sanders indicated would not be acceptable to KMI.

        On August 5, 2014, Mr. Sanders spoke with representatives of TPH and presented a revised proposal of $4.65 in cash and 0.9451 of a share of KMI common stock for each EPB common unit, as KMI's best and final offer and noted that the revised proposal would need to be discussed with the KMGP conflicts committee, the KMR special committee and their advisors. Mr. Sanders also expressed that KMI would attempt to resolve each of the four key issues in the EPB merger agreement identified by EPB the prior evening in a manner satisfactory to the parties, but that he had not yet presented this revised proposal with respect to EPB to the KMGP conflicts committee.

        Following the call from Mr. Sanders, the EPGP conflicts committee members met with representatives from TPH, Vinson & Elkins and Richards Layton to discuss the terms of the counterproposal. After discussion as to the benefits of the proposed EPB merger to the unaffiliated EPB unitholders as compared to EPB remaining as a standalone company, and the EPGP conflicts committee members' view that it was extremely unlikely that KMI would agree to offer a higher implied premium to holders of EPB common units than KMP common units, the EPGP conflicts committee concluded that the economic terms of the counterproposal were acceptable, subject to (i) confirmation of the economic and legal terms of the KMP merger and KMR merger and (ii) finalization of the transaction documents in a manner acceptable to the EPGP conflicts committee and consistent with the positions relayed to KMI the prior evening.

        After discussion with the EPGP conflicts committee, representatives of TPH called Mr. Sanders to confirm that KMI's revised proposal was acceptable to the EPGP conflicts committee assuming the proposal for KMP and KMR was finalized on the terms previously discussed ($10.77 in cash and an exchange ratio of 2.1889 for each KMP common unit and a corresponding exchange ratio of 2.4787 for each KMR share) and that the terms of the merger agreement were satisfactorily finalized. Mr. Sanders

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then spoke with representatives of Jefferies to update them on the status of discussions with the EPGP conflicts committee.

        Following the discussion between Mr. Sanders and Jefferies, the KMGP/KMR committee met with Baker Botts and Jefferies to discuss the revised EPB merger consideration. Jefferies discussed the relative ownership of KMP, KMR and EPB equity holders in the pro forma entity based on the revised EPB merger consideration, and the KMGP/KMR committee determined that Messrs. Hultquist and Bowden would present a counterproposal to Mr. Sanders for $10.77 in cash and an exchange ratio of 2.1973 for each KMP common unit and a corresponding exchange ratio of 2.4891 for each KMR share, which would result in a percentage ownership in the pro forma entity for KMP and KMR equity holders equal to the ownership that would have resulted prior to the increase in the EPB merger consideration.

        Following the KMGP/KMR committee meeting, Mr. Bowden presented the revised proposal to Mr. Sanders, which KMI rejected. Mr. Hultquist then spoke with Messrs. Kinder and Sanders and insisted on an increase in the stock portion of the merger consideration in the KMP merger and the exchange ratio in the KMR merger in order for the KMGP/KMR committee to approve the transaction. The KMGP/KMR committee met again with representatives of Baker Botts and Jefferies to discuss Mr. Bowden's and Mr. Hultquist's conversations with representatives of KMI and determined to present a revised proposal which effectively split the difference between the prior agreed KMP and KMR merger consideration and the proposal relayed to KMI earlier in the day. Following such meeting, Mr. Bowden spoke with Mr. Sanders and proposed an exchange ratio of 2.1931 for the stock portion of the KMP merger consideration (with a corresponding increase in the KMR exchange ratio to 2.4849).

        Mr. Sanders then contacted representatives from TPH to communicate that KMI had agreed to an increase in the consideration to be received by KMP unitholders and KMR shareholders compared to the proposal made by KMI on August 1, specifically that KMP unitholders would receive 2.1931 shares of KMI stock and $10.77 in cash for each KMP common unit and KMR shareholders would receive 2.4849 shares of KMI common stock for each KMR listed share.

        In response to the update from Mr. Sanders, the EPGP conflicts committee met that evening with representatives from TPH, Vinson & Elkins and Richards Layton. TPH reviewed with the EPGP conflicts committee the effect of the modification to the terms of the KMP merger and KMR merger on the value of the consideration to be received by EPB unitholders, specifically that the pro forma ownership of former public EPB unitholders in the combined company would decrease slightly, but still equal, in both cases, approximately 6.12%, and that there would be a dilutive impact of approximately $4 million spread across all public EPB unitholders. The EPGP conflicts committee determined the modifications were immaterial and acceptable, subject to satisfactorily finalizing the merger agreement and completing the due diligence items that remained outstanding. Members of senior management of KMI then spoke separately with Mr. Hultquist and representatives of Jefferies and the parties each confirmed that it was willing to proceed with a proposal of $10.77 in cash and an exchange ratio of 2.1931 for each KMP common unit and a corresponding exchange ratio of 2.4849 for each KMR share, subject to satisfactorily finalizing the merger agreement and completing the due diligence items that remained outstanding.

        On August 5, 2014, representatives of Baker Botts had a due diligence call with members of KMI senior management regarding certain legal matters.

        On August 6, 2014, representatives of Vinson & Elkins had a due diligence call with members of KMI senior management and representatives of Weil regarding certain legal matters.

        On August 7, 2014, the KMGP/KMR committee met with representatives of Baker Botts, Morris Nichols and Jefferies. Baker Botts provided a review of the then current terms of the KMP and KMR

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merger agreements, including certain improvements in the terms compared with the initial drafts distributed by Weil on July 21, and discussed the remaining open issues with respect to the merger agreements. Baker Botts also summarized its legal diligence review. Representatives of Baker Botts reviewed the status and merits of the derivative claims that had been filed on behalf of KMP with respect to allocations of capital expenditures, and the KMGP/KMR committee engaged in a discussion with respect thereto. The KMGP/KMR committee asked representatives of Baker Botts to discuss the tax aspects of the proposed Transactions, and representatives of Baker Botts reviewed the proposed tax treatment as well as possible alternative tax-free structures for the KMP merger and related matters. Jefferies then provided a presentation discussing the relative ownership of KMP, KMR and EPB in the combined entity based on the incremental changes in merger consideration, a relative contribution analysis, various other financial analyses and potential alternative transactions, including KMP acquiring KMI and EPB, KMP acquiring EPB, KMI providing incremental incentive distribution waivers in connection with KMP acquisitions, a permanent reset or elimination of incentive distributions, potential strategic alternatives regarding one of KMP's business units, and an equity investment in KMP by a third party. Jefferies also provided a comparable company yield analysis, a pro forma KMI yield analysis, an analysis of pro forma capital flexibility and a discounted cash flow analysis. At the prior request of the KMGP/KMR committee, Jefferies evaluated such strategic alternatives and performed various analyses using data supplied by KMI. Jefferies discussed the advantages involved with each alternative, including that (i) KMP's acquiring KMI and/or EPB would result in a simplified organizational structure and that an acquisition of KMI would remove the burden on KMP's cost of capital resulting from KMP's incentive distributions, (ii) a permanent reset or elimination of KMP's incentive distributions could be effected in a cash flow neutral manner in the short term and (iii) an equity investment in KMP by a third party might improve market confidence in KMP. In each case, however, Jefferies identified the significant difficulties involved and flaws associated with each alternative, including that (i) none of the alternatives would result in the significant tax savings from a stepped-up basis in the underlying assets and resulting increase in cash available for growth by acquisition and/or distributions to equity holders in the combined business that would be accomplished by the proposed Transactions, (ii) KMP's acquiring KMI and/or EPB would be highly dilutive to KMP unitholders, (iii) KMP's acquiring KMI would result in material tax inefficiencies, (iv) KMI's providing incremental incentive distribution waivers in connection with KMP acquisitions did not provide a long-term solution to KMP's cost of capital concerns, (v) the KMGP/KMR committee's belief that KMI would not be willing to effect a permanent reset or elimination of KMP's incentive distributions due to the significant long-term reduction in value to KMI's shareholders that would result, (vi) potential strategic alternatives involving KMP's CO2 business unit may not result in an acceptable valuation based on Jefferies' review of multiples for similar businesses, would not provide a long-term solution to KMP's cost of capital concerns, and could significantly impair KMP's cash available for distribution because investing the proceeds from the sale of such business unit into higher growth midstream acquisitions would likely require a much higher purchase multiple and a resultant loss in EBITDA, and (vii) a validating equity investment in KMP by a third party, which transactions are typically employed by distressed companies lacking efficient access to public equity markets or companies with higher funding costs than KMP, would not solve KMP's cost of capital concerns and could not likely be achieved on better terms than those available to KMP through ordinary course equity issuance in the public markets. The KMGP/KMR committee was not authorized to conduct an auction process or other solicitation of interest from third parties for the acquisition of KMP or KMR. Nevertheless, the KMGP/KMR committee discussed this limitation on its authority, as well as the substance and practicality of conducting an auction or soliciting interest from third parties. KMI had indicated that it was interested only in acquiring KMP common units and KMR shares it did not already own and that it was not interested in disposing of its controlling interest in KMP to a third party at such time. The KMGP/KMR committee determined that, because KMI indirectly controls KMP and KMR, it was unrealistic to expect a third party acquisition proposal or offer, whether solicited or unsolicited, for the assets or control of KMP or KMR, and it was thus unlikely that the KMGP/KMR committee could

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conduct a meaningful auction for the acquisition of the assets or control of KMP or KMR and unlikely that any such auction, if conducted, would result in a material benefit for KMP unitholders or KMR shareholders. In addition, at the request of the KMGP/KMR committee and based on the guidance and pro forma tax information provided by KMI, Jefferies provided an analysis of pro forma KMI tax benefits and projected KMP unitholder tax implications.

        Between August 6, 2014 and August 9, 2014, representatives of Weil, Baker Botts, Vinson & Elkins and Richards Layton held multiple conference calls and negotiated and finalized the terms of the merger agreements, including with respect to conforming the terms of the KMR merger agreement to the agreed upon terms of the KMP merger agreement and related disclosure schedules and support agreement.

        On August 8, 2014, Weil also distributed to Vinson & Elkins drafts of the KMP merger agreement and KMR merger agreement, each of which were in near final form.

        On August 8, 2014, the KMGP/KMR committee and representatives of Baker Botts and Morris Nichols met with members of senior management of KMI and a representative of Weil for a due diligence session regarding certain litigation matters, including derivative claims that had been filed on behalf of KMP with respect to allocations of capital expenditures, and financial matters. In addition, on August 8, 2014, representatives of TPH and Vinson & Elkins held a confirmatory bringdown due diligence session with members of senior management of KMI and representatives of Jefferies held a separate confirmatory bringdown due diligence session with members of senior management of KMI.

        Later in the day, the KMGP/KMR committee met with representatives of Baker Botts, Morris Nichols and Jefferies. Jefferies provided a presentation as to fairness and confirmed that Jefferies would deliver a written fairness opinion at the KMGP/KMR committee meeting to be held on August 9 to approve the KMP and KMR mergers. Baker Botts discussed remaining open issues with respect to the KMP and KMR merger agreements, including the amount of termination fees and limitations on EPB equity issuances between signing and closing of the mergers.

        During the evening of August 8, Messrs. DeVeau and Hultquist discussed the proposed cap on EPB equity issuances between signing and closing of the proposed Transactions, after which discussions Mr. DeVeau relayed that KMI would accept the KMGP/KMR committee's proposed cap. In addition, the parties determined the final proposal resulting in the stock election, cash election and mixed election options for KMP and EPB by taking the existing proposals (in the case of KMP, $10.77 in cash and an exchange ratio of 2.1931 shares of KMI common stock for each KMP common unit and, in the case of EPB, $4.65 in cash and an exchange ratio of 0.9451 of a share of KMI common stock for each EPB common unit) and calculating the all-cash and all-stock value of such proposals based upon the July 16th closing price for KMI common stock, which was $36.91.

        On the evening of August 8, 2014, the members of the EPGP conflicts committee held a telephonic meeting, which was also attended by representatives from TPH, Vinson & Elkins and Richards Layton. TPH provided an update to the EPGP conflicts committee on TPH's financial analysis regarding the EPB merger and noted that, despite the change to the KMP and KMR consideration, the materials and financial analyses had no material changes since TPH's last financial presentation to the EPGP conflicts committee on August 4, 2014. Vinson & Elkins summarized the material terms of the EPB merger agreement, the KMP merger agreement, the KMR merger agreement and the support agreement. Representatives from Vinson & Elkins and Richards Layton also reviewed with the EPGP conflicts committee the legal due diligence that had been completed. The legal due diligence report included a discussion of the status and merits of various derivative claims that had been filed on behalf of EPB with respect to challenges to prior asset drop-down transactions between EPB and KMI and EPB and El Paso Corporation (prior to its acquisition by KMI). The discussion noted that the EPGP conflicts committee had considered that (i) the members of the EPGP conflicts committee, given their positions on the EPGP board and the EPGP conflicts committee, had

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extensive prior familiarity with the nature of the derivative claims and the underlying asset drop-down transactions and factual assertions on which the claims are based; (ii) favorable decisions had been rendered by the trial court in connection with two of the pending derivative actions (although it was noted that such decisions may be subject to appeal); (iii) the advisors to the EPGP conflicts committee had discussions with KMI management and in-house legal counsel for KMI with respect to the status of and merits of the derivative lawsuits in connection with its review of the Transactions; and (iv) in light of the foregoing, the limited utility of any further third party analysis and/or valuation of the derivative claims was outweighed by the delay that such analysis would entail which could threaten the viability of the Transactions, and ultimately determined that the value of the claims to EPB that might be extinguished as a result of the EPB merger was not sufficiently material such that they would merit adjustments to the EPB merger consideration or otherwise affect the determinations made by the EPGP conflicts committee with respect to the EPB merger.

        On the morning of August 9, 2014, the members of the EPGP conflicts committee met with representatives from TPH, Vinson & Elkins and Richards Layton. Vinson & Elkins provided the EPGP conflicts committee with an update on the EPB merger agreement, the KMP merger agreement, KMR merger agreement and the support agreement, each of which included no material changes since the meeting of the EPGP conflicts committee on August 8, 2014. Also at this meeting, TPH delivered to the EPGP conflicts committee an oral opinion, confirmed by delivery of a written opinion dated August 9, 2014 following the execution of the EPB merger agreement, to the effect that, as of that date and based upon and subject to the assumptions and qualifications and limitations and other matters set forth therein, from a financial point of view, the EPB merger consideration to be received by the unaffiliated EPB unitholders is fair from a financial point of view to the unaffiliated EPB unitholders.

        After discussion and deliberation, the EPGP conflicts committee unanimously (i) determined that the EPB merger is fair and reasonable to, and in the best interests of, EPB, after determining that the EPB merger is fair and reasonable to, and in the best interests of, the unaffiliated EPB unitholders, (ii) approved, and recommended that the EPGP board approve, the EPB merger agreement, the execution, delivery and performance of the EPB merger agreement and the transactions contemplated by the EPB merger agreement and submit the EPB merger agreement to a vote of the EPB unitholders and (iii) resolved to recommend approval of the EPB merger agreement by the EPB unitholders.

        Later in the morning on August 9, 2014, the members of the EPGP board met with Mr. DeVeau and representatives from Vinson & Elkins. The EPGP conflicts committee provided a report to the full EPGP board as to its determinations. Based upon the EPGP conflicts committee's recommendations, the EPGP board unanimously (i) determined that the EPB merger is fair and reasonable to, and in the best interests of, EPB, after determining that the EPB merger is fair and reasonable to, and in the best interests of, the unaffiliated EPB unitholders, (ii) approved the EPB merger agreement, the execution, delivery and performance of the EPB merger agreement and the transactions contemplated by the EPB merger agreement and (iii) resolved to submit the EPB merger agreement to a vote of the EPB unitholders and recommend approval of the EPB merger agreement by the EPB unitholders.

        On August 9, 2014, Messrs. DeVeau and Hultquist met to discuss the provision in the KMP merger agreement providing for payment of any termination fee by KMI to KMP in the form of a reduction in future incentive distributions rather than cash. Mr. DeVeau explained that such provision was a result of the possible treatment of the fee as non-qualifying income for tax purposes, and Messrs. DeVeau and Hultquist agreed that such reduction would be effected over an eight-quarter period.

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        On August 9, 2014, the KMGP/KMR committee met with representatives of Baker Botts and Jefferies and determined to propose a mutual termination fee of 3.0% of equity value for each of KMI, KMP and KMR, with any KMI termination fee to be payable in the form of a reduction in future incentive distributions over an eight-quarter period. Representatives of Baker Botts called Weil to make such proposal, and representatives of Weil later confirmed that KMI was willing to accept such proposal.

        On August 9, 2014, the KMGP board and the KMR board (in each case with Messrs. Kinder and Kean participating) held special meetings, with representatives of KMI, Baker Botts and Jefferies present, and unanimously voted to adopt formal resolutions delegating authority to the KMGP/KMR committee with respect to the KMP merger and KMR merger as previously approved on July 17.

        Following the KMGP board and KMR board meeting, the KMGP/KMR committee met with representatives of Baker Botts and Jefferies. Representatives of Baker Botts reviewed the efforts made by the KMGP/KMR committee over the past month, including the substantive work and the processes followed. Representatives of Baker Botts noted that the KMGP/KMR committee had met frequently since the proposed terms were communicated to the KMGP/KMR committee. Representatives of Baker Botts also noted that all three KMGP/KMR committee members were present at substantially all of the KMGP/KMR committee meetings and that the KMGP/KMR committee members reviewed and thoroughly considered the relevant materials. Representatives of Baker Botts briefly reviewed the work conducted by the KMGP/KMR committee's advisors and noted that Jefferies stood ready to deliver its written fairness opinion. Mr. Hultquist summarized the extensive meetings held by the KMGP/KMR committee, and noted that the KMGP/KMR committee had examined the proposed Transactions in great depth and reviewed various documents prepared by Jefferies and Baker Botts. Mr. Hultquist noted that the members of the KMGP/KMR committee had, for a long time, considered the substantive issues that led to the original proposals being made by KMI and the discussions both publicly in the investment community and within the Kinder Morgan companies with respect to a combination of the Kinder Morgan companies in one form or another. Mr. Hultquist also noted the prior discussions between the KMGP/KMR committee and its advisors with respect to Messrs. Gardner, Hultquist and Waughtal serving on both the KMGP conflicts committee and the KMR special committee and potential alternative approval structures with respect to the proposed transactions, and reviewed the reasons the KMGP/KMR committee determined not to pursue such alternative approval structures.

        Mr. Bowden of Jefferies left the meeting and the KMGP/KMR committee discussed with Baker Botts the status and merits of the derivative claims that had been filed on behalf of KMP with respect to allocations of capital expenditures. The KMGP/KMR committee had considered, among other factors, that (i) Messrs. Gardner, Hultquist and Waughtal had extensive prior familiarity with the nature of the derivative claims and the underlying capital transactions and other factual assertions on which the claims are based from their service and work on the KMGP board and the KMR board; (ii) the KMGP/KMR committee had discussions with KMI management and counsel for KMI and the KMGP/KMR committee with respect to the status of and merits of the derivative lawsuits in connection with its review of the Transactions; and (iii) in light of the foregoing, the limited utility of any further third party analysis and/or valuation of the derivative claims was outweighed by the delay that such analysis would entail which could threaten the viability of the Transactions, and ultimately determined that the value of the claims to KMP that might be extinguished as a result of the KMP merger was not sufficiently material such that they would merit adjustments to the KMP merger consideration or otherwise affect the determinations made by the KMGP/KMR committee with respect to the KMP merger or the KMR merger. Following such discussion, Mr. Bowden rejoined the meeting. Mr. Hultquist then reviewed the principal reasons for the KMP and KMR mergers. Jefferies then delivered its written opinion to the effect that, as of August 9, 2014, and based upon and subject to the assumptions made, procedures followed, factors considered and limitations upon the review undertaken

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by Jefferies as set forth in its opinion, the KMR merger consideration was fair, from a financial point of view, to the KMR shareholders (other than KMI and its affiliates (other than KMR)) and the KMP merger consideration was fair, from a financial point of view, to KMP unitholders (other than KMI and its affiliates (other than KMP)).

        The KMGP conflicts committee then unanimously (i) determined that the KMP merger is fair and reasonable to, and in the best interests of, KMP, after determining that the KMP merger is fair and reasonable to, and in the best interests of, the unaffiliated KMP unitholders, (ii) approved the KMP merger, the KMP merger agreement and the execution, delivery and performance of the KMP merger agreement, such approval constituting "Special Approval" as defined in the KMP partnership agreement, (iii) recommended that the KMGP board approve the KMP merger, the KMP merger agreement and the execution, delivery and performance of the KMP merger agreement, submit the KMP merger agreement to a vote of limited partners of KMP and recommend approval of the KMP merger agreement by the limited partners of KMP and (iv) recommended approval of the KMP merger agreement by the limited partners of KMP.

        Following such determinations and approvals by the KMGP conflicts committee, the KMR special committee unanimously (i) determined that, in accordance with Section 5.7(c) of KMR's limited liability company agreement, the KMR merger is fair, taking into account the totality of the relationships between the parties involved, including other transactions between the parties, (ii) determined that the KMR merger is fair and reasonable to, and in the best interests of, KMR, after determining that the KMR merger is fair and reasonable to, and in the best interests of, the unaffiliated KMR shareholders, (iii) approved the KMR merger, the KMR merger agreement and the execution, delivery and performance of the KMR merger agreement, (iv) recommended that the KMR board approve the KMR merger, the KMR merger agreement and the execution, delivery and performance of the KMR merger agreement, submit the KMR merger agreement to a vote of the KMR shareholders and recommend approval of the KMR merger agreement by the KMR shareholders and (v) recommended approval of the KMR merger agreement by the KMR shareholders. Section 5.7(c) of KMR's limited liability company agreement provides that a transaction between KMR and its affiliates is not void if the transaction is fair, taking into account the totality of the relationships between the parties involved, including other transactions between the parties, as determined in the sole discretion of the KMR board. For purposes of such determination, the KMR special committee considered, among other things, the various transactions contemplated between KMI, KMP, the KMP unitholders, KMR, the KMR shareholders, EPB and the EPB unitholders in connection with the proposed Transactions.

        Following the KMGP/KMR committee meeting, the KMGP board held a special meeting with representatives of KMI, Baker Botts and Jefferies present. Based on the KMGP conflicts committee's recommendation, the KMGP board (with Messrs. Kinder and Kean abstaining) (i) determined that the KMP merger is fair and reasonable to, and in the best interests of, KMP, after determining that the KMP merger is fair and reasonable to, and in the best interests of, the unaffiliated KMP unitholders, (ii) approved the KMP merger, the KMP merger agreement and the execution, delivery and performance of the KMP merger agreement, (iii) directed that the KMP merger agreement be submitted to a vote of limited partners of KMP and (iv) recommended approval of the KMP merger agreement by the limited partners of KMP.

        Following the KMGP board meeting, the KMR board held a special meeting with representatives of KMI, Baker Botts and Jefferies present. The KMR board (with Messrs. Kinder and Kean abstaining), (i) determined that the KMP merger is fair and reasonable to, and in the best interests of, KMP, after determining that KMP merger is fair and reasonable to, and in the best interests of, the unaffiliated KMP unitholders, (ii) approved the KMP merger, the KMP merger agreement and the execution, delivery and performance of the KMP merger agreement, (iii) directed that the KMP merger agreement be submitted to a vote of limited partners of KMP and (iv) recommended approval of the KMP merger agreement by the limited partners of KMP. Based on the KMR special committee's

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recommendation, the KMR board (with Messrs. Kinder and Kean abstaining) (i) determined that the KMR merger is fair, taking into account the totality of the relationships between the parties involved, including other transactions between the parties, (ii) determined that the KMR merger is fair and reasonable to, and in the best interests of, KMR, after determining that the KMR merger is fair and reasonable to, and in the best interests of, the unaffiliated KMR shareholders, (iii) approved the KMR merger, the KMR merger agreement and the execution, delivery and performance of the KMR merger agreement, (iv) directed that the KMR merger agreement be submitted to a vote of KMR shareholders and (iv) recommended approval of the KMR merger agreement by the KMR shareholders. In addition, the KMR board (with Messrs. Kinder and Kean abstaining) resolved to recommend approval of the KMP merger agreement by the KMR shareholders for purposes of the vote of KMR shares with respect to determining how KMP i-units will be voted at the KMP unitholder meeting with respect to the approval of the KMP merger agreement.

        On August 9, 2014, the KMI board held a special board meeting attended by all members of the KMI board, as well as members of management and representatives of Barclays Capital, Citi and Weil. Members of senior management of KMI reviewed with the KMI board the legal and financial terms of the proposed Transactions, including a discussion of the debt financing contemplated for the proposed Transactions, and the principal benefits of the proposed Transactions. For a discussion of such principal benefits of the Transactions, see "—KMI Parties' Purpose and Reasons for the Merger." Prior to the presentations of Citi and Barclays Capital, Mr. DeVeau reviewed with the KMI board information regarding material relationships with the entities involved in the proposed Transactions that had been provided by each of Citi and Barclays Capital. Mr. DeVeau discussed potential conflicts of interest with the KMI board and members of management, and it was agreed that there were no material conflicts of interest. Citi provided the KMI board with updated financial and market perspectives regarding KMI and the potential pro forma financial impact of the proposed Transactions on KMI. Barclays Capital presented its financial analyses regarding the consideration payable in the Transactions and delivered its oral opinion to the KMI board, which was confirmed by delivery of a written opinion dated August 9, 2014, that, as of such date and based upon and subject to the limitations and assumptions set forth therein, the merger consideration to be paid by KMI pursuant to the EPB merger agreement, the KMP merger agreement and the KMR merger agreement was fair, from a financial point of view, to KMI. Following review and discussion among the members of the KMI board, the KMI board unanimously determined that the merger agreements and the transactions contemplated by the merger agreements were advisable and in the best interests of KMI stockholders, and the KMI directors unanimously voted to approve the merger agreements and the transactions contemplated by the merger agreements and recommend that KMI stockholders approve the stock issuance proposal and the charter amendment proposal.

        On August 9, 2014, the merger agreements and related transaction documents were executed by the parties and on August 10, 2014, KMI, KMP, KMR and EPB issued a joint press release announcing the Transactions.


Relationship of the Parties to the Transactions

        KMI conducts most of its business through KMP and EPB. For 2013, distributions from KMP and EPB represented approximately 87% of the sum of total cash generated by (i) distributions payable to KMI by these two partnerships (on a declared basis) and (ii) distributable cash generated by assets KMI owns and its share of cash generated by its joint venture investments.

        KMI indirectly owns all of the membership interests in EPGP, which owns a 2% general partner interest in EPB, as well as approximately 40% of the outstanding common units of EPB and all of EPB's incentive distribution rights.

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        KMI directly and indirectly owns approximately 43 million units of KMP. These units, which consist of approximately 22 million common units, 5 million Class B units and 16 million i-units (corresponding to the number of KMR shares owned by KMI), represent approximately 10% of the total outstanding limited partner interests of KMP. KMI also indirectly owns all of the common stock of KMGP, the general partner of KMP, which owns an effective 2% interest in KMP and its operating partnerships and the right to receive incentive distributions from KMP pursuant to KMP's partnership agreement. Together, these limited partner and general partner interests represent approximately 12% of KMP's total equity interests and an approximate 50% economic interest in KMP, as a result of the incentive distributions.

        KMGP has delegated to KMR, subject to limited exceptions, all of its rights and powers to manage and control the business and affairs of KMP and its operating limited partnerships. KMGP also owns all of the voting shares of KMR, which are the only shares entitled to vote in the election of KMR's directors. KMR owns all of the outstanding i-units of KMP. KMI owns approximately 16 million KMR shares, including, through KMGP, all of KMR's voting shares, representing approximately 13% of KMR's outstanding shares.

        Certain executive officers and directors of KMI are also executive officers and directors of EPGP, KMGP and KMR. Richard D. Kinder and Steven J. Kean serve as members of the boards of directors of all four companies, and Thomas A. Martin is a director of EPGP as well as an executive officer of all four companies. The compensation received by the executive officers of KMI is paid to them in their capacities as executive officers of KMI, EPGP, KMR and KMGP, as applicable. KMR and KMGP have the same directors and executive officers.

        Richard D. Kinder is a Director, Chairman and Chief Executive Officer of KMI, KMR, KMGP and EPGP. He is the largest individual shareholder of KMI, beneficially owning approximately 23.6% of the outstanding shares of KMI common stock. Under KMI's shareholders agreement, Mr. Kinder has the right to appoint five director nominees to KMI's board of directors. He also owns interests in KMR, KMP and EPB. Mr. Kinder was one of the members of KMI senior management authorized by the KMI board to represent KMI in negotiations with KMR, KMP and EPB. In addition, in connection with the KMR, KMP and EPB merger agreements, Mr. Kinder and a limited partnership he controls entered into a support agreement with each of those entities pursuant to which he and the limited partnership agreed to vote all of their shares of KMI common stock in favor of the KMI charter amendment proposal, the KMI stock issuance proposal and specified other matters. In the support agreement, they also agreed not to transfer or dispose of their KMI common stock or take certain other actions, subject to limited exceptions. After the Transactions, Mr. Kinder will remain the largest individual shareholder of KMI, although his ownership percentage will be significantly reduced because of the issuance of KMI common stock in the Transactions. As a result of the Transactions, he will no longer own shares of units or KMR, KMP or EPB. He will continue to have his rights under the KMI shareholders agreement to appoint director nominees to the KMI board of directors, and he will continue to be a Director, Chairman and Chief Executive Officer of KMI, KMR, KMGP and EPGP. Because of the potential conflicts arising from these interests, as discussed under "—Background of the Transactions," Mr. Kinder recused himself from any deliberations regarding the Transactions at the boards of KMGP, KMR and EPGP.


Recommendation of the EPGP Conflicts Committee and the EPGP Board and Their Reasons for the EPB Merger

        The EPGP conflicts committee consists of three independent directors: Arthur C. Reichstetter, Ronald L. Kuehn, Jr. and William A. Smith. In resolutions approved by the EPGP board on July 22, 2014, the EPGP conflicts committee was authorized to (a) review and to evaluate the terms and conditions of the KMI proposed transaction on behalf of the unaffiliated EPB unitholders and EPB; (b) negotiate, or delegate to any person or persons the ability to negotiate, the terms and conditions of

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the KMI proposed transaction; (c) determine whether or not to approve and recommend for approval to the EPGP board the KMI proposed transaction, any such recommendation to constitute Special Approval pursuant to Section 7.9(a) of the EPB partnership agreement; (d) determine whether the KMI proposed transaction is advisable and fair to, and in the best interests of, EPB and the unaffiliated EPB unitholders; and (e) make any recommendation to the unaffiliated EPB unitholders what action, if any, should be taken by the unaffiliated EPB unitholders with respect to the KMI proposed transaction. The EPGP conflicts committee retained TPH as its financial advisor and Vinson & Elkins and Richards Layton as its legal counsel. The EPGP conflicts committee oversaw the performance of financial and legal due diligence by its advisors, conducted a review and evaluation of KMI's proposal and conducted negotiations with KMI and its representatives with respect to the EPB merger agreement and the various other agreements related to the EPB merger.

        On August 9, 2014, the EPGP conflicts committee unanimously (i) determined that the EPB merger is fair and reasonable to, and in the best interests of, EPB, after determining that the EPB merger is fair and reasonable to, and in the best interests of, the unaffiliated EPB unitholders, (ii) approved, and recommended that the EPGP board approve, the EPB merger agreement, the execution, delivery and performance of the EPB merger agreement and the transactions contemplated by the EPB merger agreement and submit the EPB merger agreement to a vote of the EPB unitholders and (iii) resolved to recommend approval of the EPB merger agreement by the EPB unitholders.

        Based upon the EPGP conflicts committee's recommendations, the EPGP board unanimously (i) determined that the EPB merger is fair and reasonable to, and in the best interests of, EPB, after determining that the EPB merger is fair and reasonable to, and in the best interests of, the unaffiliated EPB unitholders, (ii) approved the EPB merger agreement, the execution, delivery and performance of the EPB merger agreement and the transactions contemplated by the EPB merger agreement and (iii) resolved to submit the EPB merger agreement to a vote of the EPB unitholders and recommend approval of the EPB merger agreement by the EPB unitholders.

        The EPGP conflicts committee considered many factors in making its determination and recommendation. The Conflicts Committee consulted with its financial and legal advisors and viewed the following factors as being generally positive or favorable in coming to its determination and recommendation.

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        The EPGP conflicts committee also considered the following in making its determination and recommendation:

        In making their determinations and recommendation with respect to the EPB merger, the EPGP conflicts committee and the EPGP board did not consider liquidation value to be a relevant methodology and did not appraise the assets of EPB to determine the liquidation value for the EPB unaffiliated unitholders because they (i) considered EPB to be a viable going concern, (ii) believe that liquidation sales generally result in proceeds substantially less than sales of going concerns, (iii) considered determining a liquidation value to be impracticable given the significant execution risk involved in any breakup of EPB and (iv) considered that KMI will continue to operate the businesses of EPB following the Transactions. Further, the EPGP conflicts committee and the EPGP board did not consider the net book value, which is an accounting concept, as a relevant factor because, in their view, net book value is not indicative of EPB's value as a going concern but rather is an indicator of historical costs and because net book value does not take into account the prospects of EPB, market conditions, trends in the industries in which EPB operates or the business risks inherent in those industries. The implied value of the EPB merger consideration, based on the closing price of KMI common stock on August 8, 2014, is $38.79 per EPB common unit, which is higher than the book value per EPB common unit of $12.82 as of June 30, 2014. The EPGP conflicts committee and the EPGP board did not expressly consider the purchase prices (a range of $29.835 to $30.22 per EPB common unit and an average of $30.0359 per EPB common unit) paid by Richard D. Kinder for 100,000 EPB common units in open market transactions during the first quarter of 2014 because such purchase

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prices were based on historical trading prices. With respect to historical trading prices, the EPGP conflicts committee and the EPGP board instead considered the analysis on historical unit price trading ratios contained in the TPH presentation to the EPGP conflicts committee. The EPGP conflicts committee and the EPGP board did not seek to determine a going concern value of EPB in making its determination, other than with respect to the analyses of discounted cash flow, ratio of enterprise value to EBITDA and trading prices contained in the presentations made by TPH.

        In making their determinations and recommendation with respect to the EPB merger, the EPGP conflicts committee and the EPGP board also considered that, as a result of the EPB merger, certain unitholder derivative claims brought against, among others, the members of the EPGP board, EPGP and nominal defendant EPB, may be extinguished. Such derivative lawsuits allege, among other things, that certain asset drop-down transactions between EPB and KMI and EPB and El Paso Corporation (prior to its acquisition by KMI) were effected on unfavorable terms to EPB and/or the unitholders of EPB. The derivative lawsuits seek equitable and monetary relief and attorney fees. The derivative lawsuits are described in more detail in EPB's Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 which is incorporated by reference into this proxy statement/prospectus. The EPGP conflicts committee and the EPGP board considered that (i) the members of the EPGP conflicts committee, given their positions on the EPGP board and the EPGP conflicts committee, had extensive prior familiarity with the nature of the derivative claims and the underlying asset drop-down transactions and factual assertions on which the claims are based; (ii) favorable decisions had been rendered by the trial court in connection with two of the pending derivative actions (although it was noted that such decisions may be subject to appeal); (iii) the advisors to the EPGP conflicts committee had discussions with KMI management and in-house legal counsel for KMI with respect to the status of and merits of the derivative lawsuits in connection with its review of the Transactions; and (iv) in light of the foregoing, the utility of any further third party analysis and/or valuation of the derivative claims was outweighed by the delay that such analysis would entail which could threaten the viability of the Transactions, and ultimately determined that the value of the claims to EPB that might be extinguished as a result of the EPB merger was not sufficiently material such that they would merit adjustments to the EPB merger consideration or otherwise affect the determinations made by the EPGP conflicts committee with respect to the EPB merger.

        The foregoing discussion of the information and factors considered by the EPGP conflicts committee is not intended to be exhaustive, but includes the material factors the EPGP conflicts committee considered. In view of the variety of factors considered in connection with its evaluation of the EPB merger, the EPGP conflicts committee did not find it practicable to quantify or otherwise assign specific weights to the factors considered in reaching its determination and recommendation. In addition, each of the members of the EPGP conflicts committee may have given differing weights to different factors.

        The EPGP conflicts committee also reviewed a number of procedural factors relating to the EPB merger, including, without limitation, the following:

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        In reaching its conclusions regarding the EPB merger, the EPGP board not only considered the process by which the EPGP conflicts committee has made its recommendations, but it also considered the matters described above or considered by the EPGP conflicts committee. As in the case of the EPGP conflicts committee, the EPGP board did not consider only the matters listed above or considered by the EPGP conflicts committee, and similar to the EPGP conflicts committee, the members of the EPGP board may have given different weights to different factors.


KMI Parties' Purpose and Reasons for the Transactions

        For the KMI Parties, as defined under "—Position of the KMI Parties, EPGP and EPB as to the Fairness of the Merger," EPGP and EPB the purpose of the Transactions is to enable KMI to acquire directly or indirectly all of the outstanding KMP common units, KMR shares and EPB common units that KMI and its subsidiaries do not already own and, as a result, for KMI and its stockholders to bear the rewards and risk of such ownership of KMP common units, KMR shares and EPB common units.

        The KMI Parties, EPGP and EPB believe that the structure of the Transactions is preferable to other structures because it will enable KMI to acquire directly or indirectly at one time all of the outstanding KMP common units, KMR shares and EPB common units that it does not already own, while allowing the unaffiliated KMP unitholders, unaffiliated KMR shareholders and unaffiliated EPB unitholders to participate and share in the potential future profits of KMI, while continuing to benefit from the future profits related to the assets of each of KMP, KMR and EPB through KMI's ownership of KMP, KMR and EPB.

        The KMI Parties' reasons for entering into the Transactions at this time include the following:

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        In addition, the KMI Parties also identified and considered several potentially negative factors to be balanced against the positive factors listed above, including the following, the order of which does not necessarily reflect their relative significance:

        In view of the variety of factors and the quality and amount of information considered, the KMI Parties did not find it practicable to and did not quantify or otherwise assign relative weights to the specific factors considered in reaching its determination but conducted an overall review of the Transactions. Certain of the KMI Parties may have given different relative considerations to different factors. The reasons of EPGP for entering into the Transactions, particularly with respect to the EPB merger, are described in the section titled "Proposal 1: The Merger Agreement—Recommendation of the EPGP Conflicts Committee and the EPGP Board and Their Reasons for the Merger."


Position of the KMI Parties, EPGP and EPB as to the Fairness of the Merger

        Under the rules governing "going private" transactions, each of KMI, E Merger Sub and Richard D. Kinder, which are collectively referred to as the "KMI Parties," EPGP and EPB are deemed to be engaged in a "going private" transaction and are required to express their beliefs as to

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the fairness of the EPB merger to the unaffiliated EPB unitholders pursuant to Rule 13e-3 under the Exchange Act. The KMI Parties, the EPGP conflicts committee and the EPGP board are making the statements included in this section solely for the purposes of complying with the requirements of Rule 13e-3 and related rules under the Exchange Act. Although the EPGP conflicts committee and the EPGP board each recommend that the EPB unitholders vote to approve the EPB merger agreement, the views of the KMI Parties and EPGP as to the fairness of the EPB merger should not be construed as a recommendation to any EPB unitholder as to how that unitholder should vote on the proposal to approve the EPB merger agreement.

        The KMI Parties did not undertake any independent evaluation of the fairness of the EPB merger to the unaffiliated EPB unitholders or engage a financial advisor for such purpose. While the vote of a majority of the outstanding EPB units, including those owned by KMI and its affiliates, is required to approve the EPB merger agreement, no separate vote of a majority of the unaffiliated EPB unitholders is required under the terms of the EPB partnership agreement. KMI was not willing to proceed with a transaction that included a "majority of the unaffiliated votes cast" threshold because KMI and its affiliates wanted to preserve their ability to vote on the EPB merger and they collectively do not own a sufficient number of EPB units to assure the outcome of the vote on the EPB merger. However, based on the procedural safeguards implemented during the negotiation of the EPB merger agreement, which include the formation of the EPGP conflicts committee and authorizing the EPGP conflicts committee to (i) review and evaluate the terms of the proposed transactions on behalf of the unaffiliated EPB unitholders, (ii) negotiate, or delegate to any person or persons the ability to negotiate, the terms and conditions of the EPB merger, (iii) determine whether or not to approve and recommend for approval to the EPGP board the EPB merger, (iv) make any recommendation to the unaffiliated EPB unitholders regarding what action, if any, should be taken by the unaffiliated EPB unitholders with respect to the EPB merger and (v) retain independent professional advisors, and the other factors considered by, and the analysis, discussion and resulting conclusions of, the EPGP conflicts committee and the EPGP board described in the section entitled "—Recommendation of the EPGP Conflicts Committee and the EPGP Board and Their Reasons for the EPB Merger," which analysis, discussion and resulting conclusions the KMI Parties expressly adopt as their own, the KMI Parties believe that the EPB merger is substantively and procedurally fair to the unaffiliated EPB unitholders.

        The foregoing discussion of the information and factors considered and given weight by the KMI Parties and EPGP is not intended to be exhaustive, but includes the factors considered by the KMI Parties and EPGP that each believes to be material and the fairness determination regarding the fairness of the EPB merger for the purpose of complying with the requirements of Rule 13e-3 and the related rules under the Exchange Act. The KMI Parties and EPGP did not find it practicable to, and did not, quantify or otherwise attach relative weights to the foregoing factors in reaching their position as to the fairness of the EPB merger. Rather, the KMI Parties and EPGP made their fairness determination after considering all of the factors as a whole.

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Projected Financial Information

        Set forth below is a summary of certain projected financial information, referred to as "management projections," that was prepared by KMI management and furnished to the KMI board, the KMGP conflicts committee, the KMR special committee and the EPGP conflicts committee for purposes of evaluating the proposed Transactions. This projected financial information was also provided to the financial advisors for use in connection with their respective financial analyses and, if applicable, opinion.

(in millions, except per share amounts)
  2015   2016   2017   2018   2019   2020  

KMP EBITDA(1)

  $ 6,561   $ 7,491   $ 8,191   $ 9,546   $ 10,023   $ 10,524  

EPB EBITDA(1)

    1,240     1,249     1,441     1,499     1,574     1,653  

KMI Standalone EBITDA(2)

    212     191     201     200     200     200  
                           

Combined enterprise EBITDA

  $ 8,013   $ 8,931   $ 9,834   $ 11,245   $ 11,797   $ 12,377  

KMP Status Quo Distributable Cash Flow Per Unit(3)

  $ 5.73   $ 6.15   $ 6.43   $ 6.95   $ 7.08   $ 7.29  

KMP Status Quo Distribution Per Unit

  $ 5.83   $ 6.18   $ 6.46   $ 6.96   $ 7.09   $ 7.30  

EPB Status Quo Distributable Cash Flow Per Unit(4)

  $ 2.63   $ 2.58   $ 2.78   $ 2.83   $ 2.92   $ 3.01  

EPB Status Quo Distribution Per Unit

  $ 2.60   $ 2.60   $ 2.73   $ 2.78   $ 2.87   $ 2.96  

KMI Status Quo Dividend Per Share

  $ 1.84   $ 2.00   $ 2.07   $ 2.22   $ 2.37   $ 2.53  

KMI Pro Forma Dividend Per Share(5)

  $ 2.00   $ 2.20   $ 2.42   $ 2.66   $ 2.93   $ 3.22  

The above measures are not measures of financial performance under generally accepted accounting principles, or GAAP, and should not be considered as alternatives to net income (loss), operating income, or other performance measures derived in accordance with GAAP. KMI's computations of these measures may differ from similarly titled measures used by others.

(1)
EBITDA is defined as net income plus depreciation, depletion and amortization, or DD&A, including such entity's share of DD&A for certain non-consolidated equity investees, plus income tax expense and interest expense.

(2)
KMI's share of pretax income plus DD&A less cash taxes for its investments in Citrus, LLC and NGPL Holdco LLC less KMI's general and administrative expense, or G&A. Includes $20 million per year in synergies attributable to the Transactions which would not be realized in the status quo case.

(3)
KMP Distributable Cash Flow Per Unit is defined as (i) limited partners' pre-tax income before certain items and DD&A, less cash taxes paid and sustaining capital expenditures for KMP, plus DD&A less sustaining capital expenditures for certain of its equity method investees, less equity earnings plus cash distributions received for Endeavor Gathering LLC (an additional equity investee) divided by (ii) average units outstanding.

(4)
EPB Distributable Cash Flow Per Unit is defined as (i) limited partners' pre-tax income before certain items and DD&A, less sustaining capital expenditures for EPB, plus DD&A less sustaining capital expenditures for its equity method investees plus certain other income and expenses, net (which primarily includes deferred revenue, non-cash allowance for equity funds used during construction and other items) divided by (ii) average units outstanding.

(5)
Pro forma after giving effect to the Transactions.

        The foregoing projected financial information is based on the following principal assumptions:

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        The foregoing projected financial information was not prepared with a view toward compliance with the published guidelines of the SEC, the guidelines established by the American Institute of Certified Public Accountants for preparation and presentation of prospective financial information or generally accepted accounting principles. The projected financial information set forth above was prepared by, and is the responsibility of, KMI. Neither KMI's independent accountants, PricewaterhouseCoopers LLP, nor any other independent accountants, have compiled, examined or performed any procedures with respect to such projected financial information, nor have they expressed any opinion or any other form of assurance on such information or its achievability, and assume no responsibility for, and they disclaim any association with, such projected financial information. The PricewaterhouseCoopers LLP report incorporated by reference into this proxy statement/prospectus relates to KMI's historical financial information. It does not extend to the projected financial information and should not be read to do so. The projected financial information is not included in this proxy statement/prospectus to influence the decision of EPB unitholders on how to vote on any proposal and should not be relied upon for such purpose.

        The projected financial information is based on numerous variables and assumptions that are inherently uncertain and may be beyond the control of KMI's management. Important factors that may affect actual results and cause the projected financial information not to be achieved include, but are not limited to, risks and uncertainties relating to KMI's, KMP's or EPB's businesses (including their ability to achieve strategic goals, objectives and targets over applicable periods), industry performance,

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the regulatory environment, general business and economic conditions and other matters described under the sections entitled "Cautionary Statement Regarding Forward-Looking Statements" and "Risk Factors." The projected financial information also reflects assumptions as to certain business decisions that are subject to change. As a result, actual results may differ materially from those contained in the projected financial information. Accordingly, there can be no assurance that the forecasted results will be realized.

        The inclusion of the projected financial information in this proxy statement/prospectus should not be regarded as an indication that any of KMI or its officers, directors, partners, affiliates, advisors or other representatives considered the projected financial information to be necessarily predictive of actual future events, and the projected financial information should not be relied upon as such. None of KMI or any of its officers, directors, partners, affiliates, advisors or other representatives can give you any assurance that actual results will not differ from the projected results. KMI undertakes no obligation to update or otherwise revise or reconcile the projected financial information to reflect circumstances existing after the date the projected financial information was generated or to reflect the occurrence of future events in the event that any or all of the assumptions underlying the projections are shown to be in error or for any other reason. KMI does not intend to make publicly available any update or other revision to the projected financial information. KMI makes no representation to any stockholder or other person regarding KMI's, KMP's or EPB's ultimate performance compared to the information contained in the projected financial information or that projected results will be achieved. KMI has made no representation to KMP, KMR or EPB in the respective merger agreements or otherwise concerning the projected financial information.


Opinion of Tudor, Pickering, Holt & Co. Securities, Inc.

        The EPGP conflicts committee retained TPH to act as its financial advisor and provide an opinion in connection with the EPB merger. The EPGP conflicts committee instructed TPH to evaluate the fairness, from a financial point of view, of the consideration to be received by the unaffiliated EPB unitholders. At a meeting of the EPGP conflicts committee held on August 9, 2014, TPH rendered its opinion orally to the EPGP conflicts committee that, as of August 9, 2014, based upon and subject to the factors and assumptions set forth in the opinion and based upon such other matters as TPH considered relevant, the consideration to be received by the unaffiliated EPB unitholders pursuant to the EPB merger agreement was fair, from a financial point of view, to such holders of EPB common units. Subsequent to rendering its oral opinion, TPH confirmed its opinion in writing to the EPGP conflicts committee.

        The opinion speaks only as of the date and the time it was rendered and not as of the time the EPB merger may be completed or any other time. The opinion does not reflect changes that may occur or may have occurred after its delivery, which could significantly alter the value, among other things, of EPB or KMI or the trading price of EPB common units or KMI common stock, which are factors on which TPH's opinion was based.

        The full text of the TPH opinion, dated August 9, 2014, which sets forth, among other things, the assumptions made, procedures followed, matters considered, and qualifications and limitations of the review undertaken by TPH in rendering its opinion, is attached as Annex B to this proxy statement/prospectus and is incorporated herein by reference. The summary of the TPH opinion set forth in this document is qualified in its entirety by reference to the full text of the opinion. EPB unitholders are urged to read the TPH opinion carefully and in its entirety. TPH provided its opinion for the information and assistance of the EPGP conflicts committee in connection with its consideration of the EPB merger and related transactions. The TPH opinion does not constitute a recommendation as to how any holder of interests in EPB, KMI or any other party to the other Transactions should vote or act with respect to the EPB merger, any of the Transactions or any other matter.

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        TPH's opinion and its presentation to the EPGP conflicts committee were among many factors taken into consideration by the EPGP conflicts committee in approving the EPB merger agreement and making its recommendation regarding the EPB merger.

        In connection with rendering its opinion and performing its related financial analysis, TPH reviewed, among other things:

        TPH also (a) held discussions with members of senior management of EPGP and KMI regarding their assessment of the strategic rationale for, and the potential benefits of, the Transactions and the past and current business operations, financial condition and future prospects of EPB, KMP and KMI, (b) reviewed the reported price and trading activity for EPB's common units and KMI's common stock, (c) compared certain financial and stock market information for EPB, KMP and KMI with similar financial and stock market information for certain other companies, the securities of which are publicly traded, (d) reviewed the financial terms of certain recent business combinations in the midstream energy industry, (e) compared the relative contribution by each of KMI, KMP and EPB of certain financial metrics TPH deemed relevant to the pro forma entity with the relative ownership in the pro forma entity of the unitholder or stockholders of each such entity and (f) performed such other studies and analyses, and considered such other factors, as TPH deemed appropriate.

        For purposes of its opinion, TPH assumed and relied upon, without assuming any responsibility for independent verification, the accuracy and completeness of all of the financial, accounting, legal, tax and other information provided to, discussed with or reviewed by or for it, or publicly available. In that regard, TPH assumed with the EPGP conflicts committee's consent that the internal financial information and forecasts and cost synergies and operating synergies referenced above were reasonably prepared on a basis reflecting the best currently available estimates and judgments of the management of EPGP, KMGP, KMR and KMI, and that such forecasts and synergies will be realized in the amounts and the time periods contemplated thereby. TPH also assumed that all governmental, regulatory or other consents or approvals necessary for the consummation of the Transactions will be obtained without any material adverse effect on EPB, KMI, E Merger Sub, the unitholders of EPB or the stockholders of KMI or the expected benefits of the Transactions in any way meaningful to TPH's

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analysis. In addition, TPH did not make an independent evaluation or appraisal of the assets and liabilities (including any contingent, derivative or off-balance-sheet assets and liabilities) of EPB or any of its subsidiaries or KMI, KMP or KMR or any of their subsidiaries, and has not been furnished with any such evaluation or appraisal. TPH's opinion does not address any tax or other consequences that might result from the Transactions, nor does it address any legal, regulatory or accounting matters. TPH also assumed that the Transactions will be consummated on the terms set forth in the EPB merger agreement, the KMP merger agreement and the KMR merger agreement, without the waiver or modification of any term or condition the effect of which would be in any way meaningful to its analysis.

        TPH's opinion is necessarily based upon economic, monetary, market and other conditions as in effect on, and the information made available to it as of, August 9, 2014. TPH has disclaimed any obligation to update, revise or reaffirm its opinion, including with respect to circumstances, developments or events that occur after the rendering of its opinion.

        The estimates contained in TPH's analysis and the results from any particular analysis are not necessarily indicative of future results, which may be significantly more or less favorable than suggested by such analyses. In addition, analyses relating to the value of businesses or assets neither purport to be appraisals nor do they necessarily reflect the prices at which businesses or assets may actually be sold. Accordingly, TPH's analysis and estimates are inherently subject to substantial uncertainty.

        In arriving at its opinion, TPH did not attribute any particular weight to any particular analysis or factor considered by it, but rather made qualitative judgments as to the significance and relevance of each analysis and factor. Several analytical methodologies were employed by TPH in its analyses, and no one single method of analysis should be regarded as critical to the overall conclusion reached by TPH. Each analytical technique has inherent strengths and weaknesses, and the nature of the available information may further affect the value of particular techniques. Accordingly, TPH believes that its analyses must be considered as a whole and that selecting portions of its analyses and of the factors considered by it, without considering all analyses and factors in their entirety, could create a misleading or incomplete view of the evaluation process underlying its opinion. The conclusion reached by TPH, therefore, is based on the application of TPH's own experience and judgment to all analyses and factors considered by it, taken as a whole. TPH's opinion was reviewed and approved by its fairness opinion committee.

        TPH's opinion addresses only the fairness, from a financial point of view, as of August 9, 2014, of the consideration to be received by the unaffiliated EPB unitholders pursuant to the EPB merger agreement.

        TPH's opinion does not address the underlying business decision of the EPGP conflicts committee, EPGP, EPB or KMI to engage in the EPB merger or any of the Transactions or the relative merits of the EPB merger or any of the Transactions as compared to any other alternative transaction that may be available to EPB. TPH does not express any view on, and its opinion does not address, any other term or aspect of the EPB merger agreement or the EPB merger, including, without limitation, (a) the fairness of the EPB merger to, or any consideration paid or received in connection therewith by, the holders of any other class of securities, creditors or other constituencies of EPB, EPGP or KMI, whether relative to the merger consideration pursuant to the EPB merger agreement or otherwise; (b) the allocation of any consideration to be paid by KMI or its affiliates in the Transactions; (c) the fairness of the amount or nature of any compensation to be paid or payable to any of the officers, directors or employees of EPGP, KMI or any other party, or any class of such persons, in connection with the Transactions, whether relative to the merger consideration to be paid to holders of EPB common units pursuant to the EPB merger agreement or otherwise; and (d) the mergers contemplated by each of the KMP merger agreement and the KMR merger agreement (other than taking into consideration analyses relating to KMI on a pro forma basis giving effect to the Transactions). TPH

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expressed no opinion as to the price at which KMI's common stock will trade at any time or as to the impact of the Transactions on the solvency or viability of EPB or KMI or the ability of EPB or KMI to pay its obligations when they come due. TPH is not rendering any legal, tax or accounting advice and understands EPGP is relying on its legal counsel and accounting and tax advisors as to legal, tax and accounting matters in connection with the Transactions.

        The data and analyses summarized herein are from TPH's presentation to the EPGP conflicts committee delivered on August 8, 2014, which primarily utilized market closing prices as of August 7, 2014.

        TPH reviewed and analyzed certain financial information including valuation multiples related to selected comparable publicly-traded midstream energy master limited partnerships, or MLPs, whose operations TPH believed, based on its experience with companies in the midstream energy industry, to be similar to EPB's operations for purposes of this analysis. These MLPs are Enbridge Energy Partners, L.P., Energy Transfer Partners, L.P., Kinder Morgan Energy Partners, L.P., ONEOK Partners, L.P., Spectra Energy Partners, LP, TC Pipelines, LP and Williams Partners L.P. The preceding MLPs are referred to as the Selected EPB Comparable Companies in this proxy statement/prospectus.

        TPH selected the MLPs reviewed in its analysis because, among other things, in TPH's judgment the Selected EPB Comparable Companies operate businesses that have similar characteristics as EPB. However, no selected MLP or group of MLPs is identical to EPB. Accordingly, TPH believes that purely quantitative analyses are not, in isolation, determinative in the context of the Transactions and that qualitative judgments concerning differences between the financial and operating characteristics and prospects of EPB and the Selected EPB Comparable Companies that could affect the public trading values of each also are relevant. TPH calculated and compared various financial multiples and ratios of each MLP in the Selected EPB Comparable Companies, including, among other things, the ratio of each member of the Selected EPB Comparable Companies' (i) enterprise value, which is referred to as EV, calculated as the market capitalization of each MLP in the Selected EPB Comparable Companies, plus book value of debt and non-controlling interests, less cash, cash equivalents and marketable securities, to its (ii) estimated earnings before interest, taxes, depreciation and amortization, commonly referred to as EBITDA. All of these calculations were performed, and based on publicly available financial data and closing prices, as of August 7, 2014. The EBITDA estimates for each member of the Selected EPB Comparable Companies used by TPH in its analysis were based on publicly available consensus estimates as reported by FactSet Research Systems Inc. The median of EV to EBITDA for the Selected EPB Comparable Companies was 15.3x and 12.9x for 2014E and 2015E, respectively.

        TPH also considered the ratio of each member of the Selected EPB Comparable Companies' (i) Price, calculated as the closing price per unit on August 7, 2014 of each MLP in the Selected EPB Comparable Companies to its (ii) annual distributable cash flow per unit. The estimates used to calculate each MLP's Price per DCF/Unit were based on publicly available Wall Street research reports. The median of Price per DCF/Unit for the Selected EPB Comparable Companies was 14.6x and 14.2x for 2014E and 2015E, respectively.

        TPH also considered the Distribution Yield for each member of the Selected EPB Comparable Companies, which is calculated as the estimated annualized distribution per unit divided by the MLP's closing unit price on August 7, 2014. The estimates used to calculate each MLP's Distribution Yield were based on company filings with the SEC and publicly available Wall Street research reports, The median Distribution Yield for the Selected EPB Comparable Companies was 6.7% for the last quarter annualized and 2014E and 7.1%, for 2015E. Based on an analysis of the merger consideration and the

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status quo financial forecast for EPB prepared by the management of EPGP and KMI, which are referred to in this discussion as the "management projections" and are described in "Special Factors—Projected Financial Information," TPH estimated that EPB would have a (i) 13.9x EV to 2014E EBITDA and a 13.4x EV to 2015E EBITDA, (ii) 14.5x Price per DCF/Unit for each of 2014E and 2015E and (iii) 6.8% Distribution Yield for each of 2014E and 2015E. TPH then compared these estimated multiples to the EV to EBITDA, Price per DCF/Unit and Distribution Yield, including the medians of each of these three metrics, for the Selected EPB Comparable Companies discussed above.

        TPH reviewed and analyzed certain financial information including valuation multiples related to selected comparable companies, whose operations and/or financial characteristics TPH believed, based on its experience, to be similar to those of KMI on an illustrative pro forma combined basis giving effect to the Transactions, which is referred to as the "Surviving Entity". TPH used this analysis to form its views when selecting exit multiples and terminal yields for the Discounted Cash Flow Analysis and Present Value of Future Share Price analysis of the Surviving Entity. These companies included Enbridge Energy Partners, L.P., Energy Transfer Partners L.P., Enterprise Products Partners, L.P., Kinder Morgan Energy Partners, L.P., ONEOK Partners, L.P., Plains All American Pipeline Partners, L.P. and Williams Partners L.P. (the "Diversified Midstream MLPs"); CenterPoint Energy Inc., Enbridge Inc., Spectra Energy Corp., Sempra Energy, TransCanada Corp. and Williams Companies, Inc. (collectively, "Diversified Gas"); American Electric Power Co, Dominion Resources Inc., Duke Energy Corp., Exelon Corp., PPL Corp. and Southern Co. (the "Large Cap Utilities"); General Electric Company, Chevron Corp., The Procter & Gamble Company, Pfizer Inc., Philip Morris International, Inc., Cisco Systems, Inc., McDonalds Corp., Altria Group Inc., Simon Property Group Inc. and Lockheed Martin Corp. (the "Large Cap High Growth / High Dividend Payers"); and Alliance Holdings GP, L.P., Crestwood Equity Partners, L.P., Energy Transfer Equity, L.P., EnLink Midstream LLC, Kinder Morgan, Inc., NuStar GP Holdings, LLC, ONEOK, Inc., Plains GP Holdings, Targa Resources Corp., Western Gas Equity Partners, L.P. and The Williams Companies, Inc. The preceding groups of selected companies are collectively referred to as the Surviving Entity Comparable Companies in this proxy statement/prospectus.

        TPH selected the companies reviewed in this analysis because, among other things, in TPH's judgment the Surviving Entity Comparable Companies operate businesses that have similar characteristics to the Surviving Entity. However, no selected company or group of companies is identical to the Surviving Entity. Accordingly, TPH believes that purely quantitative analyses are not, in isolation, determinative in the context of the Transactions and that qualitative judgments concerning differences between the financial and operating characteristics and prospects of the Surviving Entity and the Surviving Entity Comparable Companies that could affect the public trading values of each also are relevant. TPH calculated and compared various financial multiples and ratios of each of the Surviving Entity Comparable Companies, including, among other things, the ratio of each member of the Surviving Entity Comparable Companies' (i) enterprise value, which is referred to as EV, calculated as the market capitalization of each company in the Surviving Entity Comparable Companies, plus book value of debt and non-controlling interests, less cash, cash equivalents and marketable securities, to its (ii) estimated earnings before interest, taxes, depreciation and amortization, commonly referred to as EBITDA. All of these calculations were performed, and based on publicly available financial data and closing prices, as of August 7, 2014. The EBITDA estimates for each member of the Surviving Entity Comparable Companies used by TPH in its analysis were based on publicly available consensus estimates as reported by FactSet Research Systems Inc. The median of EV to EBITDA for the groups of the Surviving Entity Comparable Companies ranged from 9.5x to 27.1x for 2014E and 9.1x to 22.3x for 2015E.

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        TPH also considered the Dividend or Distribution Yield, as applicable, for each member of the Surviving Entity Comparable Companies, which is calculated as the estimated annualized dividend per share or distribution per unit, as applicable, divided by the company's closing unit or stock price as of August 7, 2014. The estimates used to calculate each C-corp's dividend yield were based on company filings with the SEC and publicly available consensus estimates as reported by FactSet Research Systems Inc. The estimates used to calculate each MLP's Distribution Yield were based on company filings and publicly available Wall Street research reports. The median Dividend Yield and Distribution Yield for the Surviving Entity Comparable Companies ranged from 3.1% to 6.7% for both the last quarter annualized and 2014E and from 3.7% to 7.1% for 2015E.

        Using publicly available information and third-party research, TPH calculated multiples of transaction value to estimated EBITDA for the forward year, or FY1 period, based on the purchase prices paid in selected publicly announced transactions involving companies in the midstream energy industry. The selected transactions were chosen because one or both parties involved in the transaction were deemed to be similar to EPB in one or more respects, including nature of the business, size and geographic concentration.

        The following table sets forth the selected transactions reviewed:

Acquirer
 
Target
Plains All American Pipeline LP   Plains Natural Gas Storage LP
Regency Energy Partners LP   PVR Partners LP
Inergy Midstream LP   Crestwood Midstream Partners LP
Kinder Morgan Energy Partners LP   Copano Energy LLC
Kinder Morgan Inc.   El Paso Corporation
Energy Transfer Equity LP   Southern Union Co.
Enterprise Products Partners L.P.   Duncan Energy Partners L.P.
Williams Partners, L.P.   Williams Pipeline Partners L.P.
Enterprise Products Partners L.P.   TEPPCO Partners LP
Plains All American Pipeline LP   Pacific Energy Partners LP
Valero LP   Kaneb Pipeline Partners LP
Enterprise Products Partners L.P.   GulfTerra Energy Partners LP

        TPH determined that the median transaction value to estimated EBITDA for the FY1 period for the selected comparable transactions was 12.6x. TPH then compared this multiple to its projected EV to 2014E EBITDA multiple of 13.9x for EPB, which was calculated taking into consideration the merger consideration and the management projections.

        TPH performed a discounted cash flow analysis of EPB on a status quo basis and the Surviving Entity, in each case as of January 1, 2015. Discounted cash flow analysis is a valuation methodology used to derive a valuation by calculating the present value of estimated future cash flows. For these analyses, TPH used the cash flows as reflected in the management projections.

        EPB.    For its discounted cash flow calculations of EPB, TPH applied levered discount rates ranging from 11.0% to 14.0% to each of (i) the estimated future cash available for distribution to limited partner units of EPB including the EPB common units and (ii) the estimated unit value at the end of 2022. The discount rates applicable to EPB were based, among other things, on TPH's judgment of the estimated range of the cost of equity based on an analysis of EPB and the Selected EPB Comparable Companies discussed above in "—Selected EPB Comparable Companies Multiples

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Analysis." The terminal value of EPB was calculated applying various terminal value DCF/Unit multiples ranging from 12.0x to 16.0x. The terminal value DCF/Unit multiples were selected by TPH by reference to Price to DCF/Unit trading multiples calculated for the Selected EPB Comparable Companies discussed above in "—Selected EPB Comparable Companies Multiples Analysis." TPH applied such ranges of terminal value DCF/Unit multiples to EPB's estimated 2023 DCF/Unit, as set forth in the management projections, to determine a terminal value of an EPB unit. The ranges of estimated future cash available for distribution and terminal values were then discounted to present values as of January 1, 2015 using the range of discount rates referred to above. From this analysis, TPH estimated an implied price per unit range for EPB common units of $27.76 to $38.11.

        Surviving Entity.    For its discounted cash flow calculations, TPH applied unlevered discount rates ranging from 7.0% to 10.0% to each of (i) the estimated future free cash flows of the Surviving Entity and (ii) the estimated terminal value of the Surviving Entity at the end of 2022. The discount rates applicable to the Surviving Entity were based, among other things, on TPH's judgment of the estimated range of weighted average cost of capital based on an analysis of the Surviving Entity Comparable Companies discussed above in "—Selected Surviving Entity Comparable Companies Multiples Analysis." The terminal value of the Surviving Entity was calculated applying various terminal value EBITDA multiples ranging from 10.0x to 15.0x. The terminal value EBITDA multiples were selected by TPH by reference to EV to EBITDA trading multiples calculated for the Surviving Entity Comparable Companies discussed above in "—Selected Surviving Entity Comparable Companies Multiples Analysis." TPH applied such range of terminal value EBITDA multiples to the estimated 2023E pro forma EBITDA of the Surviving Entity, as set forth in the management projections, to determine a terminal value for the Surviving Entity. TPH assumed that the estimated earnings before interest and taxes of the Surviving Entity were subject to a 36.5% federal income tax rate. The ranges of estimated future free cash flows and terminal values were then discounted to present values as of January 1, 2015 using the range of discount rates referred to above. TPH then calculated per share values of the Surviving Entity by subtracting the book value of debt and non-controlling interests, less cash, cash equivalents and marketable securities then dividing by the projected pro forma share count of the Surviving Entity. TPH then adjusted the Surviving Entity per share amount by multiplying the per share amount by the EPB exchange ratio of 0.9451 and adding the EPB cash consideration per unit of $4.65. From this analysis of the Surviving Entity, TPH estimated a range of implied values of merger consideration per EPB unit of $25.74 to $52.81, and compared this to the implied price per unit range of one EPB common unit calculated in the discounted cash flow analysis above of $27.76 to $38.11.

        Sensitivity Analysis.    TPH then performed a valuation sensitivity analysis by varying the forecast EBITDA for EPB, KMP and the assets directly owned by KMI while keeping constant the range of terminal value EBITDA multiples and discount rates referred to above. When TPH increased the forecast EBITDA for each of EPB, KMP and the assets directly owned by KMI by 5%, TPH estimated an implied price per unit range of one EPB common unit of $29.15 to $40.01 and a range of implied values of merger consideration per EPB unit of $27.91 to $56.33. When TPH decreased the forecast EBITDA for each of EPB, KMP and the assets directly owned by KMI by 5%, TPH estimated an implied price per unit range of one EPB common unit of $26.38 to $36.22 and a range of implied values of merger consideration per EPB unit of $23.58 to $49.30. Lastly, when TPH increased the forecast EBITDA for EPB by 5% and decreased the forecast EBITDA for KMP and the assets directly owned by KMI by 5%, TPH estimated an implied price per unit range of one EPB common unit of $29.15 to $40.01 and a range of implied values of merger consideration per EPB unit of $24.17 to $50.24.

        TPH analyzed the implied present value per unit of EPB and the implied present value per share of common stock of the Surviving Entity. Implied future prices as of January 1, 2015 of an EPB unit

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and a Surviving Entity share were calculated by first determining the terminal yield value for EPB and the Surviving Entity. Terminal yield value was calculated based on a terminal yield of 2022E distributions per unit for EPB and 2022E dividends per share of common stock for the Surviving Entity. TPH selected a terminal yield value range of 6% to 8% for EPB and 3% to 7% for the Surviving Entity based on an analysis of the Selected EPB Comparable Companies discussed above in "—EPB Selected Comparable Companies Multiples Analysis" and an analysis of the Surviving Entity Comparable Companies discussed above in "—Selected Surviving Entity Comparable Companies Multiples Analysis," respectively. TPH used levered discount rate ranges of 11.0% to 14.0% for EPB and 8.0% to 12.0% for the Surviving Entity to discount the implied future unit price and stock price, as applicable, as of January 1, 2015 of EPB and the Surviving Entity, respectively. The discount rates applicable to EPB were based, among other things, on TPH's judgment of the estimated range of the cost of equity based on an analysis of EPB and the Selected EPB Comparable Companies discussed above in "—Selected EPB Comparable Companies Multiples Analysis." The discount rates applicable to the Surviving Entity were based, among other things, on TPH's judgment of the estimated range of the cost of equity based on an analysis of the Surviving Entity Comparable Companies discussed above in "—Selected Surviving Entity Comparable Companies Multiples Analysis." TPH then adjusted the future stock price of the Surviving Entity by multiplying the per share range by the EPB exchange ratio of 0.9451 and adding the cash consideration per unit of $4.65. From this analysis of EPB and the Surviving Entity, TPH estimated a range of implied prices per unit for one EPB common unit of $27.57 to $37.88 and compared this to the implied values of merger consideration per EPB unit of $36.99 to $79.62.

        TPH then performed a valuation sensitivity analysis by varying the forecast EBITDA for EPB, KMP and the assets directly owned by KMI while keeping constant the range of terminal yield EBITDA multiples and discount rates referred to above. When TPH increased the forecast EBITDA for each of EPB, KMP and the assets directly owned by KMI by 5%, TPH estimated an implied price per unit range of one EPB common unit of $28.96 to $39.79 and a range of implied values of merger consideration per EPB unit of $38.30 to $83.43. When TPH decreased forecast EBITDA for each of EPB, KMP and the assets directly owned by KMI by 5%, TPH estimated an implied price per unit range of one EPB common unit of $26.18 to $35.97 and a range of implied values of merger consideration per EPB unit of $35.65 to $75.90. Lastly, when TPH increased the forecast EBITDA for EPB by 5% and decreased the forecast EBITDA for KMP and the assets directly owned by KMI by 5%, TPH estimated an implied price per unit range of one EPB common unit of $28.96 to $39.79 and a range of implied values of merger consideration per EPB unit of $36.01 to $76.91.

        TPH calculated the implied ownership of the unaffiliated EPB unitholders, based on the relative contributions of pre-tax distributable cash flow to the unaffiliated EPB unitholders set forth in the management projections, to KMI on a pro forma basis after giving effect to the EPB merger and the related Transactions. In performing its contribution analysis, TPH adjusted the pro forma ownership of KMI to reflect that the unaffiliated EPB unitholders would receive 100% stock consideration by assuming that the EPB unaffiliated unitholders would use the cash portion of the merger consideration to purchase KMI common stock at a transaction price of $35.37. Relative contribution analysis was performed for the year ended December 31, 2013 and the projected years ending December 31, 2014 through December 31, 2023. This analysis indicated an implied range of ownership percentages over this period for the unaffiliated EPB unitholders, after giving effect to the consummation of the Transactions, of approximately 5.9% to 7.2%, as compared to the 7.0% pro forma ownership percentage of the unaffiliated EPB unitholders immediately following the Transactions.

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        TPH reviewed EPB's unit price performance from November 2007 to August 2014. TPH noted that, over this period, EPB's unit price increased 150% since its initial public offering compared to 153% for the Selected EPB Comparable Companies as a whole. TPH also noted that, from January 1, 2014 to August 7, 2014, EPB's unit price decreased by 2% compared to an increase of 10% for the Selected EPB Comparable Companies as a whole, and from July 1, 2014 to August 7, 2014, EPB's unit price decreased by 7% compared to a decrease of 4% for the Selected EPB Comparable Companies as a whole. In addition, TPH evaluated EPB's unit price performance since the October 2011 announcement of KMI's merger with El Paso Corporation, EPB's former parent, and noted that EPB's unit price increased 7% during this period compared to an increase of 47% for the Selected EPB Comparable Companies as a whole.

        TPH reviewed the median and mean one day spot premiums for U.S. based energy transactions since January 1, 2010 whose aggregate consideration (i) was greater than $1.0 billion and (ii) consisted of 75% or more of the purchaser's stock. The median and mean premium for these transactions was 16.8% and 18.7%, respectively. TPH also reviewed the median and mean one day spot premiums for midstream energy transactions involving MLPs and corporations since January 1, 2003 whose aggregate consideration (a) was greater than $1.0 billion and (b) consisted of 75% or more of the purchaser's stock. The median and mean premium for transactions involving MLPs was 15.0% and 16.8%, respectively, and the median and mean premium for transactions involving corporations was 16.8% and 16.8%, respectively, compared to the 14.0% implied transaction premium based on EPB's closing price as of August 7, 2014.

        TPH analyzed the projected pro forma financial effects of the Transactions on EPB unitholders' estimated pro forma distributable cash flow per unit for the fiscal years 2015E through 2023E using various financial forecasts and other data contained in the EPB management projections. In performing its pro forma analysis, TPH adjusted the pro forma per unit cash flow to reflect that the unaffiliated EPB unitholders of EPB would receive 100% stock consideration by assuming that the unaffiliated EPB unitholders would use the cash portion of the merger consideration to purchase KMI common stock at a transaction price of $35.37. TPH noted that the Transactions are expected to be accretive to EPB unitholders' estimated pro forma pre-tax distributable cash flow per unit for each of the fiscal years 2016E through 2023E and accretive to EPB unitholders' estimated pro forma pre-tax distributions per unit for each of the fiscal years 2018E through 2023E. TPH also noted that, assuming estimated average unitholder transaction taxes of $3.79, the Transactions are expected to be accretive to EPB unitholders' estimated pro forma pre-tax distributable cash flow per unit for each of the fiscal years 2018E through 2023E and accretive to EPB unitholders' estimated pro forma pre-tax distributions per unit for each of the fiscal years 2020E through 2023E. TPH also noted that the Transactions are expected to be accretive to KMI's estimated pro forma cash flow available for dividend per share, as well as KMI's estimated pro forma dividend per share, for the fiscal years 2015E through 2023E.

        In addition to the final presentation described above, TPH also made preliminary written presentations (each a "TPH preliminary presentation") to the EPGP conflicts committee on July 30, 2014 and August 4, 2014.

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        The TPH preliminary presentations are filed as exhibits to the Schedule 13E-3 filed with the SEC by EPB in connection with the Transactions, for informational purposes and because they provide background with respect to the TPH final presentation and TPH's opinion. The TPH preliminary presentations consisted of various summary data and analyses that TPH utilized in formulating its preliminary perspective on the EPB merger, were for discussion purposes only, and did not present any findings or make any recommendations or constitute an Opinion of Tudor, Pickering, Holt & Co. Securities, Inc. with respect to the fairness of the merger consideration to be received by EPB unitholders. The TPH preliminary presentations contained substantially similar analyses, based upon trading multiples of the Selected EPB Comparable Companies, selected comparable transaction analysis, discounted cash flow analysis, present value of future unit price, EPB's contribution to a pro forma KMI, an analysis of EPB's historical trading price and a pro forma analysis of the EPB merger (together, the "Valuation Analyses"), all subject to refinement and updates in TPH's final presentation. The procedures followed by TPH in preparing the material analyses in the TPH preliminary presentations were substantially similar to the procedures used by TPH to prepare the corresponding analyses in its final presentation.

        The July 30, 2014 preliminary presentation contained an overview of the proposed structure and terms of the EPB merger, an overview of both EPB and KMI, preliminary Valuation Analyses, a summary analysis of the proposed merger consideration, and a summary analysis of the pro forma impact of the EPB merger on EPB's financial performance (together, the "preliminary presentation materials"). The preliminary presentation materials were based on the information available to TPH and the proposed terms of the EPB merger as of July 30, 2014, including financial information and market, economic and other conditions as they existed as of July 25, 2014, as well as TPH's preliminary working assumptions at such time, and the observed data and multiples analyzed by TPH in connection with such preliminary presentation materials. The preliminary Valuation Analyses presented on July 30, 2014, based on the proposed merger consideration and other terms of the EPB merger as of such date, indicated: (i) for the Selected EPB Comparable Companies, a median EV to EBITDA of 15.2x and 12.8x for 2014E and 2015E, respectively, a median Price per DCF/Unit of 15.7x and 15.1x for 2014E and 2015E, respectively, and a median Distribution Yield of 6.3% for both the last quarter annualized and 2014E, and 6.6% for 2015E, compared to TPH's estimates for EPB, using a range of implied premiums from 10% to 20%, of EV to EBITDA of 14.4x to 15.1x and 13.9x to 14.6x for 2014E and 2015E, respectively, Price per DCF/Unit of 15.1x to 16.5x and 15.0x to 16.4x for 2014E and 2015E, respectively, and Distribution Yield of 6.0% to 6.6% for the last quarter annualized, 2014E and 2015E; (ii) for the Surviving Entity Comparable Companies, a median range of 9.7x to 28.1x for EV to 2014E EBITDA and 9.3x to 23.5x for EV to 2015E EBITDA, and a median Dividend Yield and Distribution Yield range of 2.9% to 6.1% for the last quarter annualized, 2.9% to 6.3% for 2014E and 3.5% to 6.6% for 2015E; (iii) a median transaction value to estimated EBITDA for the FY1 period for the selected comparable transactions of 12.6x; (iv) based on a discounted cash flow analysis, an implied price per unit range for EPB common units of $27.49 to $35.37, and an implied value of merger consideration per EPB unit of $26.80 to $47.56; (v) based on the present value of future price calculation, an estimated range of implied present value of future price of one EPB common unit of $26.23 to $37.86, and an implied present value of future merger consideration per EPB unit of $31.48 to $57.93; (vi) an implied range of ownership percentages from 2013 to 2023 for EPB's unaffiliated EPB unitholders of approximately 5.9% to 7.2%, as compared to the range of pro forma ownership percentages of 6.8% to 7.1%, using premiums ranging from 10% to 20%, for EPB's unaffiliated EPB unitholders immediately following the EPB merger and related Transactions; (vii) from November 2007 to July 2014, EPB's unit price increased 164% compared to 162% for the Selected EPB Comparable Companies, from July 2011 to July 2014, EPB's unit price increased by 23% compared to 52% for the Selected EPB Comparable Companies, from October 2011 to July 2014, EPB's unit price increased by 12% compared to 52% for the Selected EPB Comparable Companies and from January 2014 to July 2014, EPB's unit price increased by 4% compared to 13% for the selected EPB Comparable

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Companies; (viii) the Transactions are expected to be accretive to EPB unitholders' estimated pro forma pre-tax distributable cash flow per unit for each of the fiscal years 2018E through 2023E when using a 10% premium and for each of the fiscal years 2016E through 2023E when using a 15% or 20% premium, accretive to EPB unitholders' estimated pro forma pre-tax distributions per unit for each of the fiscal years 2019E through 2023E when using a 10% premium, for each of the fiscal years 2018E through 2023E when using a 15% premium, and for each of the fiscal years 2017E through 2023E when using a 20% premium; (ix) assuming estimated average unitholder transaction taxes of $3.79, the Transactions are expected to be accretive to EPB unitholders' estimated pro forma pre-tax distributable cash flow per unit for each of the fiscal years 2018E through 2023E and accretive to EPB unitholders' estimated pro forma pre-tax distributions per unit for each of the fiscal years 2019E through 2023E when using a 15% or 20% premium, and for each of the fiscal years 2020E through 2023E when using a 10% premium and (x) the Transactions are expected to be accretive to KMI's estimated pro forma cash flow available for dividend per share, as well as KMI's estimated pro forma dividend per share, for the fiscal years 2015E through 2023E.

        At the request of the EPGP conflicts committee, TPH also provided the EPGP conflicts committee with supplemental presentation materials on July 30, 2014. The supplemental presentation materials included: (i) a post-tax financial analysis of the merger consideration; (ii) an overview of the pro forma impact of the EPB merger and related Transactions on KMP and the Surviving Entity; (iii) a unitholder tax impact analysis; (iv) a premiums analysis; and (v) a market update for KMP and the Surviving Entity. The data included in the supplemental presentation materials did not have a meaningful impact on TPH's analysis in rendering its opinion to the EPGP conflicts committee in connection with the EPB merger.

        The August 4, 2014 preliminary presentation contained preliminary presentation materials updated to reflect updated market information, including recently filed quarterly reports on Form 10-Q, and financial projections provided to TPH by EPGP management revised to include updated tax depreciation assumptions for the Surviving Entity. Based on updated market information and its ongoing analysis, TPH adjusted certain discount rates and exit multiples and yields used to calculate terminal values of both EPB and the Surviving Entity. Specifically, for EPB, TPH (i) lowered the cost of equity, (ii) decreased exit multiples and (iii) increased the low end of the terminal yield range, and for the Surviving Entity, TPH (i) lowered the low end of the unlevered discount rate range, (ii) lowered the low end of the exit multiples and (iii) used a cost of equity based on the Surviving Entity Comparable Companies rather than using EPB's cost of equity. As a result of applying different assumptions, the projected financial information utilized by TPH differed from the financial information presented in the July 30, 2014 preliminary presentation. The preliminary presentation materials were based on the information available to TPH and the proposed terms of the EPB merger as of August 4, 2014, including financial information and market, economic and other conditions as they existed as of August 1, 2014, as well as TPH's preliminary working assumptions at such time, and the observed data and multiples analyzed by TPH in connection with such preliminary presentation materials. The preliminary Valuation Analyses presented on August 4, 2014, based on the proposed merger consideration and other terms of the EPB merger as of such date, indicated: (i) for the Selected EPB Comparable Companies, a median EV to EBITDA of 15.0x and 13.0x for 2014E and 2015E, respectively, a median Price per DCF/Unit of 14.9x and 14.5x for 2014E and 2015E, respectively, and a median Distribution Yield of 6.6% for both the last quarter annualized and 2014E, and 7.0% for 2015E, compared to TPH's estimates for EPB, using a range of exchange ratios from 0.9142x to 0.9578x, of EV to EBITDA of 13.7x to 14.0x and 13.2x to 13.5x for 2014E and 2015E, respectively, Price per DCF/Unit of 14.2x to 14.8x and 14.1x to 14.7x for 2014E and 2015E, respectively, and Distribution Yield of 6.7% to 7.0% for the last quarter annualized, 2014E and 2015E; (ii) for the Surviving Entity Comparable Companies, a median range of 9.6x to 27.5x for EV to 2014E EBITDA and 9.2x to 22.6x for EV to 2015E EBITDA, and a median Dividend Yield and Distribution Yield range of 3.1% to 6.6% for both the last quarter annualized and 2014E and of 3.7% to 7.0% for 2015E;

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(iii) a median transaction value to estimated EBITDA for the FY1 period for the selected comparable transactions of 12.6x; (iv) based on the discounted cash flow analysis, an implied price per unit range for EPB common units of $27.76 to $38.11, and an implied value of merger consideration per EPB unit of $25.10 to $51.34; (v) when applying the same sensitivity analysis as used in the final presentation for the discounted cash flow analysis, a range of implied price per unit for one EPB common unit of $29.15 to $40.01, $26.38 to $36.22 and $29.15 to $40.01, respectively, and an implied value of merger consideration per one EPB unit of $27.19 to $54.74, $23.00 to $47.93 and $23.57 to $48.85, respectively; (vi) based on the present value of future price calculation, an estimated range of implied present value of future units of one EPB common unit of $27.57 to $37.88, and an implied present value of future merger consideration per EPB unit of $35.98 to $77.30; (vii) when applying the same sensitivity analysis as used in the final presentation for the present value of future units, an estimated range of implied present value of future units of one EPB common unit of $28.96 to $39.79, $26.18 to $35.97 and $28.96 to $39.79, respectively, and an implied present value of future merger consideration per EPB unit of $37.25 to $81.00, $34.68 to $73.70 and $35.03 to $74.67, respectively; (viii) an implied range of ownership percentages from 2013 to 2023 for the unaffiliated EPB unitholders of approximately 7.2% to 5.9%, as compared to the range of pro forma ownership percentages of 6.8% to 7.1% using exchange ratios ranging from 0.9142x to 0.9578x, for the unaffiliated EPB unitholders immediately following the EPB merger and related Transactions; (ix) from November 2007 to August 2014, EPB's unit price increased 148% compared to 156% for the Selected EPB Comparable Companies, from January 2014 to August 2014, EPB's unit price decreased by 3% compared to an increase of 11%, from October 2011 to August 2014, EPB's unit price increased by 5% compared to 49% and from July 1, 2014 to August 1, 2014, EPB's unit price decreased by 8% compared to 3% for the selected EPB comparable companies; (x) a median and mean premium for mixed consideration transactions of 34.0% and 32.5% for all energy transactions, 22% and 20.9% for transactions involving midstream MLPs, 27.4% and 29.0% for midstream corporations and 24.4% and 24.9% for all midstream transactions and (xi) a median and mean premium for 100% stock consideration transactions of 16.2% and 15.8% for all energy transactions, 13.1% and 16.2% for transactions involving midstream MLPs, 16.8% and 16.8% for midstream corporations and 15.6% and 16.2% for all midstream transactions; (xii) the Transactions are expected to be accretive to EPB unitholders' estimated pro forma pre-tax distributable cash flow per unit for each of the fiscal years 2016E through 2023E when using exchange ratios of 0.9451x and 0.9578x and for each of the fiscal years 2018E through 2023E when using exchange ratios of 0.9142x and 0.9337x, and the Transactions are expected to be accretive to EPB unitholders' estimated pro forma pre-tax distributions per unit for each of the fiscal years 2018E through 2023E when using exchange ratios of 0.9337x, 0.9451x and 0.9578x and for each of the fiscal years 2019E through 2023E when using an exchange ratio of 0.9142x; (xiii) assuming estimated average unitholder transaction taxes of $3.79, the Transactions are expected to be accretive to EPB unitholders' estimated pro forma pre-tax distributable cash flow per unit for each of the fiscal years 2018E through 2023E when using exchange ratios of 0.9337x, 0.9451x and 0.9578x and for each of the fiscal years 2020E through 2023E when using an exchange ratio of 0.9142x, and the Transactions are expected to be accretive to EPB unitholders' estimated pro forma pre-tax distributions per unit for each of the fiscal years 2020E through 2023E when using exchange ratios of 0.9142x, 0.9337x, 0.9451x and 0.9578x and (xiv) the Transactions are expected to be accretive to KMI's estimated pro forma cash flow available for dividend per share, as well as KMI's estimated pro forma dividend per share, for the fiscal years 2015E through 2023E.

        At the request of the EPGP conflicts committee, TPH also provided the EPGP conflicts committee with supplemental presentation materials on August 4, 2014. The supplemental presentation materials included: (i) a post-tax financial analysis of the merger consideration; (ii) an overview of the pro forma impact of the EPB merger and related Transactions on EPB and KMP; (iii) a unitholder tax impact analysis; (iv) an exchange ratio analysis; and (v) a market update for KMP and the Surviving Entity. The data included in the supplemental presentation materials did not have a meaningful impact on TPH's analysis in rendering its opinion to the EPGP conflicts committee in connection with the EPB

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merger. TPH's final presentation and each preliminary presentation will be made available for inspection and copying at the principal executive offices of EPGP during its regular business hours by any unitholder of EPB or representative who has been so designated in writing. EPGP will also provide a copy of the final presentation and the preliminary presentations, without charge, by written or oral request directed to EPGP at the address and telephone number specified in the section titled "Where You Can Find More Information."

        TPH and its affiliates, as part of their investment banking business, are continually engaged in performing financial analyses with respect to businesses and their securities in connection with mergers and acquisitions, negotiated underwritings, competitive biddings, secondary distributions of listed and unlisted securities, private placements and other transactions as well as for estate, corporate and other purposes.

        TPH also engages in securities trading and brokerage, private equity activities, equity research and other financial services, and in the ordinary course of these activities, TPH and its affiliates may from time to time acquire, hold or sell, for their own accounts and for the accounts of their customers, (i) equity, debt and other securities (or related derivative securities) and financial instruments (including bank loans and other obligations) of EPB, EPGP, KMI and any of the other companies that may be involved in the Transactions, including the parties to the EPB merger agreement and any of their respective affiliates, including KMP and KMR and (ii) any currency or commodity that may be involved in the Transactions and the other matters contemplated by the EPB merger agreement.

        In addition, TPH and its affiliates and certain of its employees, including members of the team performing services in connection with the EPB merger, as well as certain private equity funds associated or affiliated with TPH in which they may have financial interests, may from time to time acquire, hold or make direct or indirect investments in or otherwise finance a wide variety of companies, including EPGP, EPB, KMI, KMP, KMR, other prospective counterparties and their respective affiliates.

        TPH acted as financial advisor to the EPGP conflicts committee in order to render its opinion in connection with the transactions contemplated by the EPB merger agreement. On July 17, 2014, at the request of the EPGP conflicts committee, Mr. Reichstetter contacted TPH to discuss engaging TPH as financial advisor to the EPGP conflicts committee, upon its formation, in connection with the proposed EPB merger. The EPGP conflicts committee invited representatives of TPH to attend a telephonic meeting of the EPGP conflicts committee held on July 22, 2014 in order to consider TPH's possible retention as financial advisor to the EPGP conflicts committee. At that meeting, representatives of TPH discussed their master limited partnership conflicts committee experience and qualifications. The representatives of TPH also presented information as to the historical relationship of TPH with KMI and its related entities. The EPGP conflicts committee members acknowledged these relationships and agreed that they did not present concerns with respect to TPH's independence in acting as financial advisor to the EPGP conflicts committee in the EPB merger. After the representatives of TPH left the meeting, the EPGP conflicts committee considered the discussion with TPH, along with the qualifications, experience and reputation of TPH, and determined to retain TPH as its financial advisor if an acceptable engagement letter could be negotiated with TPH. Following negotiation of an acceptable engagement letter, TPH was formally retained on July 30, 2014. The EPGP conflicts committee selected TPH to provide a fairness opinion in connection with the EPB merger because of TPH's expertise, reputation and familiarity with the oil and gas industry generally and the midstream energy industry specifically and because its investment banking professionals have substantial experience in transactions comparable to the EPB merger.

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        TPH has previously provided various investment banking and financial services for the EPGP conflicts committee and various affiliates or portfolio companies of KMI, including EPB, for which it received customary compensation. In the past two years, these services consisted of acting as financial advisor to the EPGP conflicts committee in April 2014 in connection with a private transaction pursuant to which KMI and certain of its affiliates contributed assets to EPB. TPH received a total of $500,000 in investment banking fees for these services in the past two years. TPH and its affiliates may in the future provide investment banking or other financial services to EPGP, EPB, KMI or any of the companies involved in the Transactions or their respective shareholders, unitholders, affiliates or portfolio companies. In connection with such investment banking or other financial services, TPH may receive compensation.

        The description set forth above constitutes a summary of the analyses employed and factors considered by TPH in rendering its opinion to the Conflicts Committee. TPH believes that its analyses must be considered as a whole and that selecting portions of its analyses, without considering all analyses and factors, could create an incomplete view of the process underlying its opinion. The preparation of a fairness opinion is a complex, analytical process involving various determinations as to the most appropriate and relevant methods of financial analysis and the application of those methods to the particular circumstances and is not necessarily susceptible to partial analysis or summary description.

        Pursuant to the terms of the engagement of TPH, EPB agreed to pay TPH a $1.0 million fee upon delivery of its opinion. EPB has also agreed to pay TPH an additional fee of $4.0 million upon closing of the EPB merger. In addition, EPB has agreed to reimburse TPH for its reasonably incurred out-of-pocket expenses incurred in connection with the engagement, including fees and disbursements of its legal counsel. EPB has also agreed to indemnify TPH, its affiliates and their respective officers, directors, partners, agents, employees and controlling persons for liabilities arising in connection with or as a result of its rendering of services under its engagement, including liabilities under the federal securities laws.


Opinion of Barclays Capital Inc.

        KMI engaged Barclays Capital to act as a financial advisor with respect to the Transactions, pursuant to an engagement letter dated August 8, 2014. KMI's board of directors received a written opinion, dated August 9, 2014, from Barclays Capital to the effect that, as of such date and based upon and subject to the qualifications, limitations and assumptions stated therein, the aggregate number of shares of KMI common stock, together with the aggregate amount of cash, contemplated by the merger agreements to be issued and paid as consideration in the mergers, referred to as the "Transactions Consideration," to be paid in the aggregate by KMI was fair, from a financial point of view, to KMI.

        The full text of Barclays Capital's written opinion, dated as of August 9, 2014, is attached as Annex C to this proxy statement/prospectus. Barclays Capital's written opinion sets forth, among other things, the assumptions made, procedures followed, factors considered and limitations on the review undertaken by Barclays Capital in rendering its opinion. You are encouraged to read the opinion of Barclays Capital carefully in its entirety. The following is a summary of Barclays Capital's opinion and the methodology that Barclays Capital used to render its opinion. This summary is qualified in its entirety by reference to the full text of the opinion.

        The terms of the Transactions were determined through arm's-length negotiations between KMI, on the one hand, and the KMGP conflicts committee, the KMR special committee and the EPGP conflicts committee, as applicable, on the other hand, and were unanimously approved by KMI's board of directors. Barclays Capital did not recommend any specific form or amount of consideration to KMI or that any specific form or amount of consideration constituted the only appropriate consideration for the Transactions. Barclays Capital was not requested to address, and its opinion does not in any

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manner address, KMI's underlying business decision to proceed with or effect any or all of the Transactions or the likelihood of consummation of any or all of the Transactions or the relative merits of any or all of the Transactions as compared to any strategic alternatives that may be available to KMI (including pursuing any of the Transactions individually). In addition, Barclays Capital expressed no opinion on, and its opinion does not in any manner address, the fairness of the amount or the nature of any compensation to any officers, directors or employees of any parties to the Transactions, or any class of such persons, relative to the Transactions Consideration to be paid in the aggregate by KMI in the Transactions or otherwise. No limitations were imposed by the KMI board upon Barclays Capital with respect to the investigations made or procedures followed by it in rendering its opinion.

        In arriving at its opinion, Barclays Capital, among other things, reviewed and analyzed:

In addition, Barclays Capital has had discussions with the management of KMI concerning the business, operations, assets, liabilities, financial condition and prospects of KMI, KMP, KMR and EPB and has undertaken such other studies, analyses and investigations as Barclays Capital deemed appropriate.

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        In arriving at its opinion, Barclays Capital assumed and relied upon the accuracy and completeness of the financial and other information used by Barclays Capital without any independent verification of such information (and Barclays Capital did not assume responsibility or liability for any independent verification of such information) and Barclays Capital further relied upon the assurances of the management of KMI that they were not aware of any facts or circumstances that would make such information inaccurate or misleading. With respect to the financial projections of KMI, upon the advice of KMI, Barclays Capital assumed that such projections were reasonably prepared on a basis reflecting the best currently available estimates and judgments of the management of KMI as to the future financial performance of KMI and that KMI would perform substantially in accordance with such projections. With respect to the financial projections of KMP, KMR and EPB, upon the advice of KMI, Barclays Capital assumed that such projections were reasonably prepared on a basis reflecting the best currently available estimates and judgments of the management of KMI as to the future financial performance of KMP, KMR and EPB and Barclays Capital has relied on such projections in arriving at its opinion. Furthermore, upon the advice of KMI, Barclays Capital assumed that the amounts and timing of the Expected Synergies and the Expected Benefits are reasonable and that the Expected Synergies and the Expected Benefits would be realized in accordance with such estimates. Barclays Capital assumed no responsibility for, and Barclays Capital expressed no view as to any such projections or estimates or the assumptions on which they are based. In arriving at its opinion, Barclays Capital did not conduct a physical inspection of the properties and facilities of KMI, KMP, KMR or EPB, and has not made or obtained any evaluations or appraisals of the assets or liabilities of KMI, KMP, KMR or EPB. Barclays Capital's opinion necessarily was based upon market, economic and other conditions as they existed on, and could be evaluated as of, August 9, 2014. Barclays Capital assumed no responsibility for updating or revising its opinion based on events or circumstances that may occur after August 9, 2014. Barclays Capital expressed no opinion as to the prices at which shares of KMI common stock, or common units or shares, as applicable, of KMP, KMR and EPB or any other securities of KMI, KMP, KMR or EPB, would trade following the announcement of the Transactions or as to the prices at which shares of KMI common stock would trade following the consummation of the Transactions. Barclays Capital expressed no opinion as to the credit rating of KMI at any time following the announcement or consummation of the Transactions. Furthermore, Barclays Capital expressed no opinion as to any determination of dividend policy of KMI following the consummation of the Transactions.

        Barclays Capital assumed that each of the executed merger agreements and the commitment letter would conform in all material respects to the last drafts thereof reviewed by Barclays Capital. Additionally, Barclays Capital assumed the accuracy of the representations and warranties contained in the merger agreements and all agreements related thereto. Barclays Capital also assumed, upon the advice of KMI, that all material governmental, regulatory and third party approvals, consents and releases for the Transactions would be obtained within the constraints contemplated by the merger agreements and that the Transactions would be consummated in accordance with the terms of the merger agreements without waiver, modification or amendment of any material term, condition or agreement thereof (including that all of the Transactions will be consummated substantially concurrently). Barclays Capital assumed that KMI will obtain financing on terms no less favorable to KMI than the terms contemplated by the commitment letter. Barclays Capital did not express any opinion as to any tax or other consequences that might result from the Transactions, nor did Barclays Capital's opinion address any legal, tax, regulatory or accounting matters, as to which Barclays Capital understood that KMI had obtained such advice as it deemed necessary from qualified professionals.

        In connection with rendering its opinion, Barclays Capital performed certain financial, comparative and other analyses as summarized below. In arriving at its opinion, Barclays Capital did not ascribe a specific range of values to KMP's, KMR's and EPB's common units or shares, as applicable, but rather made its determination as to the fairness, from a financial point of view, to KMI of the Transactions Consideration to be paid in the aggregate by KMI in the Transactions on the basis of various financial

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and comparative analyses. The preparation of a fairness opinion is a complex process and involves various determinations as to the most appropriate and relevant methods of financial and comparative analyses and the application of those methods to the particular circumstances. Therefore, a fairness opinion is not readily susceptible to summary description.

        In arriving at its opinion, Barclays Capital did not attribute any particular weight to any single analysis or factor considered by it but rather made qualitative judgments as to the significance and relevance of each analysis and factor relative to all other analyses and factors performed and considered by it and in the context of the circumstances of the particular transaction. Accordingly, Barclays Capital believes that its analyses must be considered as a whole, as considering any portion of such analyses and factors, without considering all analyses and factors as a whole, could create a misleading or incomplete view of the process underlying its opinion.

        The following is a summary of the material financial analyses used by Barclays Capital in preparing its opinion for KMI's board of directors. Certain financial, comparative and other analyses summarized below include information presented in tabular format. In order to fully understand the methodologies used by Barclays Capital and the results of its financial, comparative and other analyses, the tables must be read together with the text of each summary, as the tables alone do not constitute a complete description of the financial analyses. In performing its analyses, Barclays Capital made numerous assumptions with respect to industry performance, general business and economic conditions and other matters, many of which are beyond the control of KMI or any other parties to the Transactions. None of KMI, KMP, KMR, EPB, Barclays Capital or any other person assumes responsibility if future results are materially different from those discussed. Any estimates contained in these analyses are not necessarily indicative of actual values or predictive of future results or values, which may be significantly more or less favorable than as set forth below. In addition, analyses relating to the value of the businesses do not purport to be appraisals or reflect the prices at which the businesses may actually be sold.

Premiums Paid Analysis

        Barclays Capital reviewed certain publicly available information related to selected precedent transactions to calculate the amount of the premiums paid by the acquirers to the acquired company's stockholders or unitholders, as applicable. Barclays Capital analyzed domestic master limited partnership, or "MLP," transactions announced for the period from August 9, 2004 to August 8, 2014 with total transaction values in excess of $1 billion, excluding acquisitions of general partners. The following table sets forth the transactions analyzed based on such characteristics (and the date that each such transaction was announced):

Announcement Date
  Acquirer   Target
10/10/13   Regency Energy Partners LP   PVR Partners, L.P.
05/06/13   Inergy Midstream, L.P.   Crestwood Midstream Partners LP
01/30/13   Kinder Morgan Energy Partners, L.P.   Copano Energy, L.L.C.
04/29/11   Enterprise Products Partners L.P.   Duncan Energy Partners L.P.
06/29/09   Enterprise Products Partners L.P.   TEPPCO Partners L.P.
06/12/06   Plains All-American Pipeline, L.P.   Pacific Energy Partners LP
11/01/04   Valero L.P.   Kaneb PipeLine Partners, L.P.

        For each of the precedent transactions analyzed, Barclays Capital calculated the premiums paid by the acquirer by comparing the per share or per unit purchase price in each transaction to the historical stock price of the acquired company as of 1 day, 30 days and 60 days prior to the announcement date of the applicable precedent transaction. Barclays Capital compared the premiums paid in the precedent transactions to the premiums in the Transactions based on the implied value, as of August 8, 2014, of

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the Transactions Consideration of (x) $89.98 per unit of KMP (y) $89.75 per share of KMR and (z) $38.79 per unit of EPB. The table below sets forth the summary results of the analysis:

 
   
  Merger
Consideration
   
  Merger
Consideration
   
  Merger
Consideration
  Representative
Transactions Statistics
 
As of 08/08/2014
  KMP   $89.98   KMR   $89.75   EPB   $38.79   Median   Mean   Low   High  
 
   
  Implied
Premium /
(Discount)

   
  Implied
Premium /
(Discount)

   
  Implied
Premium /
(Discount)

  Implied Premium / (Discount)
                
                   

 

Current

  $ 80.34     12.0 % $ 77.02     16.5 % $ 33.60     15.4 %   21.2 %   20.2 %   9.3 %   36.1 %

30 Days Ago

  $ 81.43     10.5 % $ 78.15     14.8 % $ 36.16     7.3 %   20.8 %   23.1 %   11.1 %   40.1 %

60 Days Ago

  $ 74.99     20.0 % $ 71.47     25.6 % $ 33.08     17.3 %   26.3 %   22.4 %   (0.7 %)   42.9 %

Pro Forma Accretion/Dilution Analysis

        Using the Projections and estimates of the Expected Synergies and the Expected Benefits resulting from the Transactions provided by the management of KMI, Barclays Capital calculated the accretion/dilution of dividends per share (including warrants) of KMI common stock as a result of the Transactions. For calendar years 2015 through 2020, assuming an expected January 1, 2015 closing of the Transactions, Barclays Capital compared the dividends per share (including warrants) of KMI common stock after giving effect to the Transactions, which is referred to as the "KMI Pro Forma Scenario," to the dividends per share (including warrants) of KMI common stock without giving effect to the Transactions, which is referred to as the "KMI Status Quo Scenario." The analysis indicated that the KMI Pro Forma Scenario would be accretive to dividends per share of KMI common stock in each of calendar years 2015 through 2020. The following table summarizes the results of these calculations:

 
  2015   2016   2017   2018   2019   2020  

Dividends per share (including warrants) for the KMI Status Quo Scenario

  $ 1.84   $ 2.00   $ 2.07   $ 2.22   $ 2.37   $ 2.53  

Dividends per share (including warrants) for the KMI Pro Forma Scenario

  $ 2.00   $ 2.20   $ 2.42   $ 2.66   $ 2.93   $ 3.22  

Accretion / (Dilution)—$

  $ 0.16   $ 0.20   $ 0.35   $ 0.44   $ 0.56   $ 0.69  

Accretion / (Dilution)—%

    8.7 %   10.2 %   17.1 %   20.1 %   23.6 %   27.4 %

        In performing this analysis, Barclays Capital made numerous assumptions with respect to industry performance, general business and economic conditions and other matters, many of which are beyond the control of KMI, KMP, KMR and EPB. Any estimates contained in Barclays Capital's analysis are not necessarily indicative of future results or actual values, which may be significantly more or less favorable than those suggested by the estimates. These analyses were prepared solely as part of the analysis of Barclays Capital of the fairness to KMI, from a financial point of view, of the Transactions Consideration to be paid in the aggregate by KMI and were conducted in connection with the delivery of Barclays Capital's opinion to KMI's board of directors.

Discounted Cash Flow Analysis

        In order to estimate the present value of KMI common stock for the KMI Status Quo Scenario as compared to the present value of KMI common stock for the KMI Pro Forma Scenario, Barclays Capital performed a discounted cash flow analysis. A discounted cash flow analysis is a traditional valuation methodology used to derive the valuation of an asset by calculating the "present value" of estimated future cash flows of an asset. "Present value" refers to the current value of future cash flows or amounts and is obtained by discounting those future cash flows or amounts by a discount rate that takes into account macroeconomic assumptions and estimates of risk, the opportunity cost of capital, expected returns and other appropriate factors.

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        To calculate the estimated implied per share value of KMI common stock using the discounted cash flow method for each of the KMI Status Quo Scenario and the KMI Pro Forma Scenario, Barclays Capital added: (i) the forecasted dividends per share for calendar years 2015 through 2019, based on distributed cash flow projections of KMI furnished to Barclays Capital by KMI management to (ii) the "terminal value" of the forecasted dividend per share at the end of calendar year 2019, based on guidance from KMI management, and discounted the sum of such amounts to January 1, 2015 using a range of assumed yield and indicative growth rates (as further described below).

        The terminal value for the KMI Status Quo Scenario was estimated by applying a range of assumed yields of 4.50% to 5.25% to KMI's forecasted calendar year 2020 dividend per share. These assumed yields were selected based on Barclays Capital's professional judgment and experience, taking into account historical trading levels of KMI common stock. The cash flows for the KMI Status Quo Scenario were then discounted to January 1, 2015 using assumed yield and indicative growth rates ranging from 11.50% to 14.50%, which were selected based on estimates of assumed dividend yields added to estimates of indicative growth rates (based on Barclays Capital's professional judgment and experience, taking into account projected compounded annual growth rates for dividends as estimated by equity research analysts who cover KMI and as estimated by KMI management). Based on these calculations, Barclays Capital determined an implied reference range of per share values of KMI common stock for the KMI Status Quo Scenario of $32.50 to $39.00.

        Similarly, the terminal value for the KMI Pro Forma Scenario was estimated by applying a range of assumed yields of 3.75% to 4.50% to KMI's forecasted calendar year 2020 dividend per share. These assumed yields were selected based on Barclays Capital's professional judgment and experience, taking into account dividend yields and estimated dividend growth rates of comparable large-capitalization, dividend-paying companies and MLPs. The cash flows for the KMI Pro Forma Scenario were then discounted to January 1, 2015 using assumed yield and indicative growth rates ranging from 13.75% to 14.50%, which were selected based on estimates of assumed dividend yields added to estimates of indicative growth rates (based on Barclays Capital's professional judgment and experience, taking into account dividend yields and estimated dividend growth rates of comparable large-capitalization, dividend-paying companies and MLPs). Based on these calculations, Barclays Capital determined an implied reference range of per share values of KMI common stock for the KMI Pro Forma Scenario of $45.00 to $53.50.

        Barclays Capital then compared the implied per share values for the KMI Status Quo Scenario with the implied per share values for the KMI Pro Forma Scenario. Barclays Capital noted that, on the basis of the discounted cash flow analysis and such comparison, the implied per share values for the KMI Pro Forma Scenario were above the implied per share values of KMI common stock for the KMI Status Quo Scenario.

Equity Research Price Targets Analysis

        Barclays Capital evaluated the publicly available share price targets of KMI published by independent equity research analysts associated with various Wall Street firms. Barclays Capital used these share price targets, where applicable and available, as a reference point to provide background information and perspective. With respect to KMI, Barclays Capital noted that the range of low to high share price targets, where applicable and available, as of August 8, 2014 was $31.00 to $45.00 per share of KMI common stock.

Historical Share Price Analysis

        To illustrate the trend in the historical trading prices of shares of KMI common stock, Barclays Capital considered historical data with regard to the trading share prices of KMI common stock for the

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52-week period from August 8, 2013 through and including August 8, 2014. Barclays Capital noted that during such 52-week period, the price per share of KMI common stock ranged from $30.81 to $38.30.

Other Presentations by Barclays Capital

        In addition to the presentation delivered to the KMI board on August 9, 2014, as described above, which is referred to as the "Barclays Capital Fairness Opinion Analysis Presentation," Barclays Capital also delivered materials and presentations to the KMI board and the independent members of the KMGP board, KMR board and EPGP board, respectively, as further described in the section titled "Special Factors—Background of the Transactions." One such presentation, dated as of July 16, 2014, which is referred to as the "Barclays Capital July 16th Presentation," was delivered by Barclays to the KMI board on July 16, 2014. Furthermore, at the request of the management of KMI, Barclays Capital prepared certain materials, which are referred to as the "Barclays Capital Committee Materials," for, and presented the Barclays Capital Committee Materials to, the independent members of the KMGP board, KMR board and EPGP board, respectively, on July 17, 2014.

        The financial and comparative analyses and other information in the Barclays Capital July 16th Presentation and the Barclays Capital Committee Materials were based on market, economic and other conditions as of their respective dates as well as other information that was available to Barclays at such times. Accordingly, the results of the financial analyses and other information differed from the Barclays Capital Fairness Opinion Presentation due to changes in those conditions. Barclays Capital also continued to refine various aspects of its financial analyses with respect to KMI, KMP, KMR and EPB over time.

        Copies of the Barclays Capital July 16th Presentation and the Barclays Capital Committee Materials have been filed as exhibits to the Schedule 13E-3 filed with the SEC in connection with the Transactions and will be made available for inspection and copying at the principal executive offices of KMI during its regular business hours by any interested stockholder of KMI. Copies may be obtained by requesting them in writing from KMI at the address provided in the section titled "Parties to the Merger—KMI." None of these presentations by Barclays Capital, alone or together, constitute, or form the basis of, an opinion of Barclays Capital with respect to the Transactions Consideration.

Barclays Capital July 16th Presentation

        The Barclays Capital July 16th Presentation contained a preliminary overview of the Transactions and a preliminary version of certain financial, comparative and other analyses summarized above in this section. The Barclays Capital July 16th Presentation included a statement (qualified by a note that Barclays Capital does not render formal opinions or assurances regarding future trading values) that the pro forma combined company would trade at a 4.50% yield or below, based on Barclays Capital's professional judgement and experience, taking into account (i) market conditions as of the date thereof, (ii) pro forma metrics of the proposed combined company and (iii) dividend yields and estimated dividend growth rates of comparable large-capitalization, dividend-paying companies and MLPs. In addition, the Barclays Capital July 16th Presentation included an illustrative sensitivity to transaction premiums analysis, for which Barclays Capital calculated the cash coverage in the KMI Pro Forma Scenario as a function of the premiums paid to KMP's, KMR's and EPB's respective price per share or unit, as applicable, ranging from 10.0% to 15.0% (based on guidance from KMI management). The Barclays Capital July 16th Presentation also reviewed and analyzed (i) the trading history of KMI's common stock from February 11, 2011 through and including July 14, 2014 as compared with the trading histories of other companies that Barclays Capital deemed relevant and (ii) the yields and expected distribution growth rates of the KMI Pro Forma Scenario as compared with the yields and expected distribution growth rates of large- and mid-capitalization companies and MLPs that Barclays Capital deemed relevant.

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Barclays Capital Committee Materials

        At the request of the management of KMI, Barclays Capital prepared the Barclays Capital Committee Materials for, and presented the Barclays Capital Committee Materials to, the independent members of the KMGP board, KMR board and EPGP board, respectively, on July 17, 2014. The Barclays Capital Committee Materials contained a preliminary overview of the Transactions and a preliminary version of certain financial, comparative and other analyses summarized above in this section. Additionally, the Barclays Capital Committee Materials included information regarding (i) a trading history of KMP and EPB common units from July 16, 2013 through and including July 16, 2014 as compared with the trading history of the Alerian MLP Index, (ii) the relative cost of equity of select MLPs as compared with KMP and EPB, respectively, (iii) the relative expected distribution growth rates of select MLPs as compared with KMP and EPB, respectively, (iv) the cash flow profile by business segment of KMP and EPB, respectively, as compared with the cash flow profile by business segment of the KMI Pro Forma Scenario, and (v) an overview of the Transactions as compared with other strategic alternatives available to KMI, KMP and EPB.

General

        Barclays Capital is an internationally recognized investment banking firm and, as part of its investment banking activities, is regularly engaged in the valuation of businesses and their securities in connection with mergers and acquisitions, investments for passive and control purposes, negotiated underwritings, competitive bids, secondary distributions of listed and unlisted securities, private placements and valuations for estate, corporate and other purposes. KMI's board of directors selected Barclays Capital because of its familiarity with KMI and its qualifications, reputation and experience in the valuation of businesses and securities in connection with mergers and acquisitions generally, as well as substantial experience in transactions in the industries in which KMI, KMP, KMR and EPB operate.

        Barclays Capital is acting as financial advisor to KMI in connection with the Transactions. As compensation for its services in connection with the Transactions, $1 million became payable by KMI to Barclays Capital upon the delivery of Barclays Capital's opinion, which is referred to as the "Opinion Fee." In addition, KMI will pay Barclays Capital a fee of $13 million, less any amount of the Opinion Fee previously paid, at the closing of the Transactions. In addition, KMI has agreed to reimburse certain of Barclays Capital's expenses in connection with the Transactions and indemnify Barclays Capital for certain liabilities that may arise out of Barclays Capital's engagement by KMI and the rendering of Barclays Capital's opinion. Barclays Capital has performed various investment banking and financial services for KMI, KMP, KMR and EPB in the past, and Barclays Capital expects to perform such services in the future, and has received, and expects to receive, customary fees for such services.

        With respect to KMI, KMP, KMR and EPB, collectively, in the two years prior to rendering its fairness opinion, Barclays Capital performed the following investment banking and financial services: (i) (a) in August 2012, Barclays Capital rendered a fairness opinion to KMI in connection with KMI's sale of its 100% interest in Tennessee Gas Pipeline and 50% interest in El Paso Natural Gas to KMP; (b) in August 2012, Barclays Capital acted as joint bookrunner on KMI's secondary offering of 66,700,000 shares of KMI common stock by selling stockholders; (c) in October 2012, Barclays Capital acted as sole bookrunner on KMI's secondary offering of 69,296,921 shares of KMI common stock by selling stockholders; (d) in November 2012, Barclays Capital acted as administrative agent on KMI's amendment to its $1,750,000,000 revolving credit facility; and (e) in October 2013, Barclays Capital acted as joint bookrunner on KMI's $1,500,000,000 7.25-year and 10-year senior notes offering; (ii) in September 2012, Barclays Capital acted as joint bookrunner on EPB's follow-on offering of 8,165,000 EPB common units; and (iii)(a) in August 2012, Barclays Capital acted as financial advisor on KMP's sale of Rockies Express Pipeline; (b) in December 2012, Barclays Capital acted as sole bookrunner on KMP's follow-on offering of 4,485,000 KMP common units; (c) in May 2013, Barclays Capital acted as bookrunner on KMP's refinancing of its $2,700,000,000 credit facility; (d) in February 2014, Barclays

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Capital acted as joint bookrunner on KMP's $1,500,000,000 7-year and 30-year senior notes offering; (e) in February 2014, Barclays Capital acted as joint bookrunner on KMP's follow-on offering of 7,935,000 KMP common units; and (f) in August 2014, Barclays Capital acted as administrative agent, sole arranger and sole bookrunner on KMP's $1,000,000,000 credit facility. In connection with the foregoing services, Barclays Capital has received aggregate compensation equal to approximately $39,300,000.

        Barclays Bank, an affiliate of Barclays Capital, is the administrative agent and a lender under the bridge facility that KMI has entered into in connection with the Transactions. See "Description of the Debt Financing for the Transactions."

        Barclays Capital and its affiliates engage in a wide range of businesses from investment and commercial banking, lending, asset management and other financial and non-financial services. In the ordinary course of its business, Barclays Capital and its affiliates may actively trade and effect transactions in the equity, debt and/or other securities (and any derivatives thereof) and financial instruments (including loans and other obligations) of KMI, KMP, KMR and EPB and their respective affiliates for its own account and for the accounts of its customers and, accordingly, may at any time hold long or short positions and investments in such securities and financial instruments.

        Barclays Capital's opinion, the issuance of which was approved by Barclays Capital's Fairness Opinion Committee, is addressed to KMI's board of directors, and addresses only the fairness, from a financial point of view, of the Transactions Consideration to be paid in the aggregate by KMI. Barclays Capital's opinion is not intended to and does not constitute a recommendation to any stockholder of KMI as to how such stockholder should vote or act with respect to the Transactions or any other matter.


Financial Analyses of Citigroup Global Markets Inc.

        KMI also has retained Citigroup Global Markets Inc., which is referred to as "Citi," as a financial advisor in connection with the proposed Transactions. In connection with this engagement, the KMI board of directors requested that Citi perform certain financial analyses of KMI both on a standalone basis and pro forma for the proposed Transactions, but primarily focused on KMI pro forma for the proposed Transactions. Citi's financial analyses were provided for the information of the KMI board of directors (in its capacity as such) in connection with its evaluation of the proposed Transactions from a financial point of view to KMI and did not address any other terms, aspects or implications of the proposed Transactions. Citi's financial analyses did not address the underlying business decision of KMI to effect the proposed Transactions, the relative merits of the proposed Transactions as compared to any alternative business strategies that might exist for KMI or the effect of any other transaction in which KMI might engage or consider. Citi's financial analyses are not intended to be and do not constitute a recommendation as to how any stockholder or unitholder should vote or act on any matters relating to the proposed Transactions or otherwise.

        In preparing its financial analyses, Citi assumed and relied, without independent verification, upon the accuracy and completeness of all financial and other information and data publicly available or provided to or otherwise reviewed by or discussed with Citi and upon the assurances of KMI management that it was not aware of any relevant information that was omitted or that remained undisclosed to Citi. With respect to the financial projections and other information and data provided to or otherwise reviewed by or discussed with Citi relating to KMI, KMR, KMP and EPB, Citi was advised by KMI management, and assumed, with KMI's consent, that they were reasonably prepared on bases reflecting the best currently available estimates and judgments of KMI management as to the future financial performance of KMI, KMR, KMP and EPB, the potential strategic implications and financial and operational benefits (including the amount, timing and achievability thereof) anticipated by KMI management to result from, and other potential pro forma financial effects of, the proposed

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Transactions and the other matters covered thereby. Citi assumed, with KMI's consent, that the financial results, including with respect to the potential strategic implications and financial and operational benefits anticipated to result from the proposed Transactions, reflected in such financial projections and other information and data would be realized in the amounts and at the times projected. Citi relied upon the assessments of KMI management as to (i) existing and future relationships, agreements and arrangements with, and the ability of KMI pro forma for the Transactions to retain, key customers and related contracts of, or otherwise relating to, KMI, KMR, KMP and EPB, (ii) growth rate and other assumptions of KMI management with respect to KMI pro forma for the proposed Transactions and (iii) the potential impact on KMI, KMR, KMP and EPB of market trends and prospects relating to the natural gas and natural gas gathering, processing, transporting and fractionating industry, including assumptions of KMI management regarding future drilling and production, volume commitments, acreage dedication, and gathering and processing rates as reflected in the financial projections and other information and data utilized in Citi's analyses, which are subject to significant volatility and which, if different than as assumed, could have a material impact on Citi's analyses. Citi assumed, with KMI's consent, that there would be no developments with respect to any such matters that would have an adverse effect on KMI, KMR, KMP, EPB or the proposed Transactions (including the contemplated benefits thereof) or that would otherwise be meaningful in any respect to Citi's analyses.

        Citi did not make and was not provided with an independent evaluation or appraisal of the assets or liabilities (contingent or otherwise) of KMI, KMR, KMP, EPB or any other entity and Citi did not make any physical inspection of the properties or assets of KMI, KMR, KMP, EPB or any other entity. Citi did not express any view with respect to accounting, tax, regulatory, legal or similar matters and it relied, with KMI's consent, upon the assessments of representatives of KMI as to such matters. Citi's financial analyses were necessarily based upon information available, and financial, stock market and other conditions and circumstances existing and disclosed, to Citi as of the date on which such analyses were performed.

        Citi was not requested to, and it did not, provide an opinion as to the fairness, from a financial point of view, of the consideration payable in the proposed Transactions or any other term or aspect of the proposed Transactions. The type and amount of consideration payable in the proposed Transactions were determined through negotiations among KMI, KMR, KMP and EPB, and the decision to enter into the merger agreements was solely that of the KMI board, the KMR board and KMR special committee, the KMGP board and KMGP conflicts committee, and the EPGP board and EPGP conflicts committee. Citi expressed no view or opinion as to, among other things, the form or structure of the proposed Transactions or any terms, aspects or implications of any agreement, arrangement or understanding to be entered into in connection with or contemplated by the proposed Transactions or otherwise. Citi did not express any view or opinion as to the actual value of KMI common stock when issued in the proposed Transactions or the prices at which KMI common stock, KMR shares, KMP common units or EPB common units would trade or otherwise be transferable at any time. Citi's financial analyses were only one of many factors considered by the KMI board of directors in its evaluation of the proposed Transactions and should not be viewed as determinative of the views of the KMI board of directors or KMI management with respect to the proposed Transactions or the consideration payable in the proposed Transactions.

        In preparing its financial analyses, Citi performed a variety of financial and comparative analyses, including those described below. The summary of the analyses below is not a complete description of Citi's analyses. The preparation of financial analyses is a complex analytical process involving various determinations as to the most appropriate and relevant methods of financial analysis and the application of those methods to the particular circumstances and, therefore, financial analyses are not readily susceptible to summary description. Citi considered the results of all analyses undertaken by it and assessed as a whole, and it did not draw, in isolation, conclusions from or with regard to any one

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factor or method of analysis. Accordingly, Citi believes that the analyses must be considered as a whole and that selecting portions of its analyses and factors or focusing on information presented in tabular format, without considering all analyses and factors or the narrative description of the analyses, could create a misleading or incomplete view of the processes underlying such analyses.

        In its analyses, Citi considered industry performance, general business, economic, market and financial conditions and other matters existing as of the date of its financial analyses, many of which are beyond the control of KMI. No company, business or transaction reviewed is identical or directly comparable to KMI, KMR, KMP, EPB or their respective businesses or the proposed Transactions and an evaluation of these analyses is not entirely mathematical; rather, the analyses involve complex considerations and judgments concerning financial and operating characteristics and other factors that could affect the public trading or other values of the companies or business segments reviewed.

        The estimates contained in Citi's analyses and the valuation ranges resulting from any particular analysis are not necessarily indicative of actual values or predictive of future results or values, which may be significantly more or less favorable than those suggested by such analyses. In addition, analyses relating to the value of businesses or securities do not purport to be appraisals or to reflect the prices at which businesses or securities actually may be sold or acquired. Accordingly, the estimates used in, and the results derived from, Citi's analyses are inherently subject to substantial uncertainty and are not intended to be, and should not be construed in any respect as, an assurance or guaranty of value.

        The following is a summary of the material financial analyses presented to the KMI board of directors. The financial analyses summarized below include information presented in tabular format. In order to fully understand Citi's financial analyses, the tables must be read together with the text of each summary. The tables alone do not constitute a complete description of the financial analyses. Considering the data below without considering the full narrative description of the financial analyses, including the methodologies and assumptions underlying the analyses, could create a misleading or incomplete view of such analyses. For purposes of the financial analyses summarized below, the term "potential total investment returns" refers to the current yield of the applicable securities plus potential growth in distributions based on two-year compound annual growth rates of such distributions for calendar years 2015 through 2017.

July 16, 2014 Preliminary KMI Board Discussion Materials

        Preliminary financial analyses and market perspectives provided by Citi to the KMI board of directors on July 16, 2014 included the following:

        Current Performance of KMI on a Standalone Basis.    In order to assist the KMI board of directors in evaluating certain market perspectives on KMI, KMP and EPB on a standalone basis, Citi reviewed the following:

        Trading Performance of KMI, KMP and EPB Relative to Selected Peers.    In reviewing the stock or unit price performance of KMI, KMP and EPB, Citi compared the stock or unit price performance of KMI, KMP and EPB relative to their respective selected peer group indexes during the one-year and three-year periods ended July 14, 2014 in the case of KMI and during the one-year, three-year and five-year periods ended July 14, 2014 in the case of KMP and EPB. Financial data of the selected peer group indexes and KMI, KMP and EPB were based on publicly available information.

        The selected peer group index for KMI consisted of the following six selected entities that are publicly traded general partners, which are referred to as "GPs," of publicly traded MLPs with midstream pipeline assets:

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        The selected peer group index for KMP consisted of the following seven selected entities that are publicly traded large diversified MLPs:

        The selected peer group index for EPB consisted of the following six selected entities that are publicly traded natural gas pipeline-focused MLPs:

        Citi observed that (i) shares of KMI common stock appreciated in value during such one-year and three-year periods by approximately 89.8% and 127.7% per share, respectively, relative to the appreciation in value of KMI's selected peer group index of approximately 155.9% and 198.9%, respectively, (ii) KMP common units appreciated in value during such one-year, three-year and five-year periods by approximately 92.4%, 110.5% and 156.8% per unit, respectively, relative to the appreciation in value of KMP's selected peer group index of approximately 113.1%, 148.8% and 233.1%, respectively, and (iii) EPB common units appreciated in value during such one-year, three-year and five-year periods by approximately 80.8%, 102.0% and 199.6% per unit, respectively, relative to the appreciation in value of EPB's selected peer group index of approximately 134.1%, 144.7% and 193.7%, respectively.

        Financial Performance of KMI Relative to Selected Peers.    In reviewing the financial performance of KMI on a standalone basis, Citi compared the GP distribution compound annual growth rates, expected potential total investment returns, GP firm values, debt ratios and current and calendar year 2015 estimated GP yields of KMI on a standalone basis and the following six selected partnerships that are GPs of publicly traded MLPs, which are referred to as the "selected public partnerships" and six selected companies that are GPs of publicly traded MLPs, which are referred to as the "selected public companies":

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        Financial data of the selected public partnerships and the selected public companies were based on publicly available research analysts' estimates, public filings and other publicly available information. Financial data of KMI was based on internal financial projections and other estimates of KMI management. The approximate overall low to high GP distribution compound annual growth rates, expected potential total investment returns, GP firm values, debt ratios and current and calendar year 2015 estimated GP yields as of July 14, 2014 for the six selected public partnerships and the six selected public companies were as follows:

        Citi observed the following corresponding data for KMI as of July 14, 2014: (i) a GP distribution compound annual growth rate of approximately 5.8%; (ii) an expected potential total investment return of approximately 10.5%; (iii) a GP firm value of approximately $47.2 billion; (iv) a debt ratio of approximately 3.4x; and (v) a current and calendar year 2015 estimated GP dividend yield of approximately 4.7% and 5.1%.

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        Sum-of-the-Parts Analysis of KMI.    Citi performed a sum-of-the-parts analysis of KMI on a standalone basis in order to observe the implied per share equity value reference range derived for KMI from such analysis relative to the closing stock price of KMI as of July 14, 2014. Financial data of KMI was based on internal financial projections and other estimates of KMI management. Citi calculated the implied total value of KMR shares, KMP common units and EPB common units held by KMI by multiplying selected publicly available research analysts' price target ranges for KMR shares, KMP common units and EPB common units of $66.00 to $92.00 per share, $70.00 to $93.00 per unit, and $32.00 to $36.00 per unit, respectively, by the total number of such shares or common units held by KMI. Citi then calculated the implied total value of the general partner interest and related incentive distribution rights of KMP and EPB held by KMI by multiplying calendar year 2014 estimated distributions in respect of such general partner interest and related incentive distribution rights by a selected indicative trading multiple range for such general partner interest and related incentive distribution rights of 17.0x to 23.0x. Citi calculated the implied total value of KMI's other assets by multiplying calendar year 2014 estimated earnings before interest, taxes, depreciation and amortization, which is referred to as "EBITDA," by a selected indicative precedent transactions multiple range of 9.0x to 12.0x.

        This analysis indicated the following approximate implied per share equity value reference range for KMI on a standalone basis, as compared to KMI's closing stock price on July 14, 2014:

 
  Implied Per Share Equity Value Reference
Range for KMI (Standalone)
  KMI Per Share Closing
Stock Price (July 14, 2014)
    $33.77 - $48.59   $35.97

        Citi observed that the approximate implied per share equity value reference range for KMI on a standalone basis derived from this analysis represented a (discount)/premium to KMI's closing stock price on July 14, 2014 of approximately (6.1%) to 35.1%.

        Potential Total Investment Returns Overview.    In order to assist the KMI board of directors in evaluating the potential total investment returns for KMI that could be realized as a result of the proposed Transactions, Citi reviewed the potential total investment returns for selected publicly traded companies in comparison to those for KMI on a pro forma basis and performed a dividend discount analysis of KMI both on a standalone and pro forma basis, as more fully described below.

        Selected Public Companies Potential Total Investment Returns.    Citi reviewed certain financial information of KMI on a pro forma basis, certain financial and stock market information of KMI on a standalone basis and certain publicly available financial and stock market information of the following six selected companies that directly or through affiliates own midstream pipeline operations, which are collectively referred to as the "selected pipeline companies":

        Citi also reviewed certain publicly available financial and stock market information of the following three selected companies that are dividend-paying utility companies, which are collectively referred to

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as the "selected utilities companies" and, together with the selected pipeline companies, as the "selected companies":

        Citi reviewed, among other things, calendar year 2015 through calendar year 2017 estimated EBITDA, compound annual growth rates, calendar year 2015 through calendar year 2017 estimated dividend compound annual growth rates, and calendar year 2015 estimated dividend yields of the selected companies. Citi also reviewed estimated potential total investment returns for the selected companies. Financial data of the selected companies were based on publicly available research analysts' estimates, public filings and other publicly available information. Financial data of KMI was based on internal financial projections and other estimates of KMI management. The approximate overall low to high calendar year 2015 through calendar year 2017 estimated EBITDA compound annual growth rates, calendar year 2015 through calendar year 2017 estimated dividend compound annual growth rates, calendar year 2015 estimated dividend yields and estimated potential total investment returns observed for the selected pipeline companies and the selected utilities companies were as follows:

        Citi observed that the calendar year 2015 through calendar year 2017 estimated EBITDA compound annual growth rate and estimated dividend compound annual growth rate for KMI on a pro forma basis were approximately 10.8% and 10.0%, respectively. Citi then selected a potential estimated calendar year 2015 dividend yield range for KMI on a pro forma basis of 4.75% to 4.50% which, after taking into account the estimated present value of a potential step-up in tax basis per share of KMI common stock, which is referred to as the "potential tax basis step-up per share," that KMI management projected could result from the proposed Transactions, indicated an approximate implied per share equity value range for KMI of $42.11 to $44.44, respectively, and a potential total investment return range of approximately 14.8% to 14.5%, respectively.

        Dividend Discount Analyses.    Citi performed dividend discount analyses of KMI in order to observe the implied per share equity value reference ranges derived from such analyses for KMI both on a standalone and pro forma basis. Financial data of KMI was based on internal financial projections and other estimates of KMI management.

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        Citi performed a standalone dividend discount analysis of KMI by calculating the estimated present value of the dividends per share that KMI on a standalone basis was projected to generate during calendar years ending December 31, 2015 through December 31, 2023. Citi calculated terminal values for KMI on a standalone basis by applying to its calendar year 2023 estimated dividends per share a range of terminal dividend yields of 5.5% to 4.5%. The present values (as of January 1, 2015) of the dividends per share and terminal values were then calculated using discount rates ranging from 7.5% to 9.5%.

        Citi also performed a pro forma dividend discount analysis of KMI after giving effect to the proposed Transactions by calculating the estimated present value of the dividends per share that KMI on a pro forma basis was projected to generate during calendar years ending December 31, 2015 through December 31, 2023, excluding the effects of the potential tax basis step-up per share that KMI management projected could result from the proposed Transactions. Citi calculated terminal values for KMI on a pro forma basis by applying to its calendar year 2023 estimated dividends per share a range of terminal dividend yields of 5.5% to 4.5%. The present values (as of January 1, 2015) of the dividends per share and terminal values were then calculated using discount rates ranging from 7.5% to 9.5%. Citi additionally calculated the estimated present value (as of January 1, 2015) of the potential tax basis step-up per share that KMI management projected could result from the proposed Transactions during calendar years ending December 31, 2015 through December 31, 2028 using discount rates ranging from 7.5% to 9.5%.

        These analyses indicated the following approximate implied per share equity value reference ranges for KMI on a standalone basis, as compared to the approximate implied per share equity value reference ranges for KMI on a pro forma basis, both excluding and including the estimated present value of the potential tax basis step-up per share that KMI management projected could result from the proposed Transactions:

 
  Implied Per Share Equity Value Reference Ranges for KMI
 
  Standalone Basis   Pro Forma Basis
(Excluding Potential Tax
Basis Step-Up Per Share)
  Potential Tax Basis
Step-Up Per Share
  Pro Forma Basis
(Including Potential Tax
Basis Step-Up Per Share)
    $39.11 - $51.31   $38.92 - $51.03   $4.98 - $5.52   $43.90 - $56.55

        Citi observed that these dividend discount analyses indicated approximate implied per share calendar year 2015 estimated dividend yields for KMI, both excluding and including the estimated present value of the potential tax basis step-up per share that KMI management projected could result from the proposed Transactions, ranging from 3.4% to 4.4% and 3.5% to 4.6%, respectively.

        Pro Forma Accretion/Dilution.    Citi reviewed the potential pro forma financial effects of the proposed Transactions on KMI's estimated cash available for dividends and dividends per share of KMI common stock during calendar years 2015 through 2023 assuming, for illustrative purposes, a 10% premium and a 15% premium to KMP, KMR and EPB closing share or unit prices on July 14, 2014 relative to KMI's cash available for dividends and dividends per share of KMI common stock on a standalone basis during such calendar years. Financial data of KMI was based on internal financial projections and other estimates of KMI management. Citi observed that the proposed Transactions

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could be accretive (dilutive) to KMI's cash available for dividends and dividends per share of KMI common stock on a standalone basis by the following approximate percentages:

 
  2015   2016   2017   2018   2019   2020   2021   2022   2023  

At 10% Premium:

                                                       

Cash Available for Dividends

    21.6 %   24.6 %   29.1 %   35.8 %   28.6 %   28.5 %   24.5 %   20.8 %   17.5 %

Dividends per Share

    8.7 %   10.6 %   17.5 %   20.5 %   21.0 %   22.5 %   19.9 %   17.4 %   15.1 %

At 15% Premium:

                                                       

Cash Available for Dividends

    19.6 %   22.4 %   26.9 %   33.4 %   26.2 %   26.0 %   21.9 %   18.2 %   14.9 %

Dividends per Share

    8.7 %   10.6 %   17.5 %   20.5 %   21.0 %   22.5 %   19.9 %   17.4 %   15.1 %

        Citi also reviewed the potential pro forma financial effects of the proposed Transactions on distributions per KMP common unit, distributions per KMR share and distributions per EPB common unit for calendar years 2015 through 2023 assuming, for illustrative purposes, a 10% premium and a 15% premium to KMP's, KMR's and EPB's closing share or unit prices on July 14, 2014 relative to distributions per KMP common unit, distributions per KMR share and distributions per EPB common unit on a standalone basis during such calendar years. Financial data of KMP, KMR and EPB were based on internal financial projections and other estimates of KMI management. Citi observed that the proposed Transactions could be accretive (dilutive) to distributions per KMP common unit, distributions per KMR share and distributions per EPB common unit on a standalone basis by the following percentages:

 
  2015   2016   2017   2018   2019   2020   2021   2022   2023  

At 10% Premium:

                                                       

KMP

    (15.2 %)   (12.0 %)   (7.4 %)   (5.5 %)   2.1 %   4.0 %   6.0 %   8.2 %   10.5 %

KMR

    (15.2 %)   (12.0 %)   (7.4 %)   (5.5 %)   2.1 %   4.0 %   6.0 %   8.2 %   10.5 %

EPB

    (15.9 %)   (7.5 %)   (3.1 %)   4.6 %   10.6 %   12.3 %   14.1 %   15.9 %   17.7 %

At 15% Premium:

                                                       

KMP

    (11.4 %)   (8.1 %)   (3.2 %)   (1.2 %)   6.7 %   8.7 %   10.8 %   13.1 %   15.5 %

KMR

    (11.4 %)   (8.1 %)   (3.2 %)   (1.2 %)   6.7 %   8.7 %   10.8 %   13.1 %   15.5 %

EPB

    (12.1 %)   (3.3 %)   1.3 %   9.4 %   15.7 %   17.4 %   19.3 %   21.1 %   23.0 %

        The actual results achieved by KMI, KMP, KMR and EPB may vary from projected results and the variations may be material.

        Other Information.    Citi also noted certain additional information, including, among other things, the following:

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August 9, 2014 KMI Board Discussion Materials

        Financial analyses and market perspectives provided by Citi to the KMI board of directors on August 9, 2014 included the following:

        Current Performance of KMI on a Standalone Basis.    In order to further assist the KMI board of directors in evaluating certain market perspectives on KMI, KMP and EPB on a standalone basis, Citi reviewed the following:

        Trading Performance of KMI, KMP and EPB Relative to Selected Peers.    In reviewing the stock or unit price performance of KMI, KMP and EPB, Citi compared the stock or unit price performance of KMI, KMP and EPB relative to their respective selected peer group indexes during the one-year and three-year periods ended August 8, 2014 in the case of KMI and during the one-year, three-year and five-year periods ended August 8, 2014 in the case of KMP and EPB. Financial data of the selected peer group indexes and KMI, KMP and EPB were based on publicly available information.

        The selected peer group index for KMI consisted of the following six selected entities that are publicly traded general partners, which are referred to as "GPs," of publicly traded MLPs with midstream pipeline assets:

        The selected peer group index for KMP consisted of the following seven selected entities that are publicly traded large diversified MLPs:

        The selected peer group index for EPB consisted of the following six selected entities that are publicly traded natural gas pipeline-focused MLPs:

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        Citi observed that (i) shares of KMI common stock appreciated in value during such one-year and three-year periods by approximately 95.7% and 152.7% per share, respectively, relative to the appreciation in value of KMI's selected peer group index of approximately 140.4% and 226.5%, respectively, (ii) KMP common units appreciated in value during such one-year, three-year and five-year periods by approximately 98.0%, 124.4% and 152.2% per unit, respectively, relative to the appreciation in value of KMP's selected peer group index of approximately 114.5%, 164.2% and 212.0%, respectively, and (iii) EPB common units appreciated in value during such one-year, three-year and five-year periods by approximately 80.8%, 104.7% and 174.1% per unit, respectively, relative to the appreciation in value of EPB's selected peer group index of approximately 125.0%, 155.3% and 168.5%, respectively.

        Financial Performance of KMI Relative to Selected Peers.    In reviewing the financial performance of KMI on a standalone basis, Citi compared of the GP distribution compound annual growth rates, expected potential total investment returns, GP firm values, debt ratios and current and calendar year 2015 estimated GP yields of KMI on a standalone basis and the following six selected partnerships that are GPs of publicly traded MLPs, which are referred to as the "selected public partnerships," and six selected companies that are GPs of publicly traded MLPs, which are referred to as the "selected public companies":

        Financial data of the selected public partnerships and the selected public companies were based on publicly available research analysts' estimates, public filings and other publicly available information. Financial data of KMI was based on internal financial projections and other estimates of KMI management. The approximate overall low to high GP distribution compound annual growth rates, expected potential total investment returns, GP firm values, debt ratios and current and calendar year 2015 estimated GP yields as of August 8, 2014 for the six selected public partnerships and the six selected public companies were as follows:

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        Citi observed the following corresponding data for KMI as of August 8, 2014: (i) a GP distribution compound annual growth rate of approximately 5.8%; (ii) an expected potential total investment return of approximately 10.6%; (iii) a GP firm value of approximately $47.4 billion; (iv) a debt ratio of approximately 3.4x; and (v) a current and calendar year 2015 estimated GP dividend yield of approximately 4.8% and 5.1%.

        Sum-of-the-Parts Analysis of KMI.    Citi performed a sum-of-the-parts analysis of KMI on a standalone basis in order to observe the implied per share equity value reference range derived for KMI from such analysis relative to the closing stock price of KMI as of August 8, 2014. Financial data of KMI was based on internal financial projections and other estimates of KMI management. Citi calculated the implied total value of KMR shares, KMP common units and EPB common units held by KMI by multiplying selected publicly available research analysts' price target ranges for KMR shares, KMP common units and EPB common units of $68.00 to $92.00 per share, $75.00 to $93.00 per unit and $32.00 to $40.00 per unit, respectively, by the total number of such shares or common units held by KMI. Citi then calculated the implied total value of the general partner interest and related incentive distribution rights of KMP and EPB held by KMI by multiplying calendar year 2014 estimated distributions in respect of such general partner interest and related incentive distribution rights by a selected indicative trading multiple range for such general partner interest and related incentive distribution rights of 17.0x to 23.0x. Citi calculated the implied total value of KMI's other assets by multiplying calendar year 2014 estimated EBITDA by a selected indicative precedent transactions multiple range of 9.0x to 12.0x.

        This analysis indicated the following approximate implied per share equity value reference range for KMI on a standalone basis, as compared to KMI's closing stock price on August 8, 2014:

 
  Implied Per Share Equity Value Reference
Range for KMI (Standalone)
  KMI Per Share Closing
Stock Price (August 8, 2014)
    $33.91 - $48.93   $36.12

        Citi observed that the approximate implied per share equity value reference range for KMI on a standalone basis derived from this analysis represented a (discount)/premium to KMI's closing stock price on August 8, 2014 of approximately (6.1%) to 35.5%.

        Potential Total Investment Returns Overview.    In order to further assist the KMI board of directors in evaluating the potential total investment returns for KMI that could be realized as a result of the proposed Transactions, Citi reviewed the potential total investment returns for selected publicly traded companies in comparison to those for KMI on a pro forma basis and performed a dividend discount analysis of KMI both on a standalone and pro forma basis, as more fully described below.

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        Selected Public Companies Potential Total Investment Returns.    Citi reviewed certain financial information of KMI on a pro forma basis, certain financial and stock market information of KMI on a standalone basis and certain publicly available financial and stock market information of the following six selected companies that directly or through affiliates own midstream pipeline operations, which are collectively referred to as the "selected pipeline companies":

        Citi also reviewed certain publicly available financial and stock market information of the following three selected companies that are dividend-paying utility companies, which are collectively referred to as the "selected utilities companies" and, together with the selected pipeline companies, as the "selected companies":

        Citi reviewed, among other things, calendar year 2015 through calendar year 2017 estimated EBITDA compound annual growth rates, calendar year 2015 through calendar year 2017 estimated dividend compound annual growth rates, and calendar year 2015 estimated dividend yields of the selected companies. Citi also reviewed estimated potential total investment returns for the selected companies. Financial data of the selected companies were based on publicly available research analysts' estimates, public filings and other publicly available information. Financial data of KMI was based on internal financial projections and other estimates of KMI management. The approximate overall low to high calendar year 2015 through calendar year 2017 estimated EBITDA compound annual growth rates, calendar year 2015 through calendar year 2017 estimated dividend compound annual growth rates, calendar year 2015 estimated dividend yields and estimated potential total investment returns observed for the selected pipeline companies and the selected utilities companies were as follows:

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        Citi observed that the calendar year 2015 through calendar year 2017 estimated EBITDA compound annual growth rate and estimated dividend compound annual growth rate for KMI on a pro forma basis were approximately 10.8% and 10.0%, respectively. Citi then selected a potential estimated calendar year 2015 dividend yield range for KMI on a pro forma basis of 4.75% to 4.50% which, after taking into account the estimated present value of the potential tax basis step-up per share that KMI management projected could result from the proposed Transactions, indicated an approximate implied per share equity value range for KMI of $42.11 to $44.44, respectively, and a potential total investment return range of approximately 14.8% to 14.5%, respectively.

        Dividend Discount Analyses.    Citi performed dividend discount analyses of KMI in order to observe the implied per share equity value reference ranges derived from such analyses for KMI both on a standalone and pro forma basis. Financial data of KMI was based on internal financial projections and other estimates of KMI management. Citi performed a standalone dividend discount analysis of KMI by calculating the estimated present value of the dividends per share that KMI on a standalone basis was projected to generate during calendar years ending December 31, 2015 through December 31, 2023. Citi calculated terminal values for KMI on a standalone basis by applying to its calendar year 2023 estimated dividends per share a range of terminal dividend yields of 5.5% to 4.5%. The present values (as of January 1, 2015) of the dividends per share and terminal values were then calculated using discount rates ranging from 7.5% to 9.0%.

        Citi also performed a pro forma dividend discount analysis of KMI after giving effect to the proposed Transactions by calculating the estimated present value of the dividends per share that KMI on a pro forma basis was projected to generate during calendar years ending December 31, 2015 through December 31, 2023, excluding the effects of the potential tax basis step-up per share that KMI management projected could result from the proposed Transactions. Citi calculated terminal values for KMI on a pro forma basis by applying to its calendar year 2023 estimated dividends per share a range of terminal dividend yields of 5.5% to 4.5%. The present values (as of January 1, 2015) of the dividends per share and terminal values were then calculated using discount rates ranging from 7.5% to 9.0%. Citi additionally calculated the estimated present value (as of January 1, 2015) of the potential tax basis step-up per share that KMI management projected could result from the proposed Transactions during calendar years ending December 31, 2015 through December 31, 2029 using discount rates ranging from 7.5% to 9.0%.

        These analyses indicated the following approximate implied per share equity value reference ranges for KMI on a standalone basis, as compared to the approximate implied per share equity value reference ranges for KMI on a pro forma basis, both excluding and including the estimated present value of the potential tax basis step-up per share that KMI management projected could result from the proposed Transactions:

Implied Per Share Equity Value Reference Ranges for KMI
 
  Standalone Basis   Pro Forma Basis
(Excluding Potential Tax
Basis Step-Up Per Share)
  Potential Tax Basis
Step-Up Per Share
  Pro Forma Basis
(Including Potential Tax
Basis Step-Up Per Share)
    $40.43 - $51.29   $41.83 - $52.86   $3.27 - $3.57   $45.10 - $56.43

        Citi observed that these dividend discount analyses indicated approximate implied per share calendar year 2015 estimated dividend yields for KMI, both excluding and including the estimated present value of the potential tax basis step-up per share that KMI management projected could result from the proposed Transactions, ranging from 3.3% to 4.1% and 3.5% to 4.4%, respectively.

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        Pro Forma Accretion/Dilution.    Citi reviewed the potential pro forma financial effects of the proposed Transactions on KMI's estimated cash available for dividends and dividends per share of KMI common stock during calendar years 2015 through 2023 assuming a 12.0% premium to KMP's closing unit price on August 8, 2014, a 16.5% premium to KMR's closing share price on August 8, 2014 and a 15.4% premium to EPB's closing unit price on August 8, 2014 relative to KMI's cash available for dividends and dividends per share of KMI common stock on a standalone basis during such calendar years. Financial data of KMI was based on internal financial projections and other estimates of KMI management. Citi observed that the proposed Transactions could be accretive (dilutive) to KMI's cash available for dividends and dividends per share of KMI common stock on a standalone basis by the following approximate percentages:

 
  2015   2016   2017   2018   2019   2020   2021   2022   2023  

Cash Available for Dividends

    21.9 %   23.7 %   28.8 %   36.2 %   29.0 %   29.3 %   25.3 %   21.2 %   17.1 %

Dividends per Share

    8.7 %   10.6 %   17.5 %   20.5 %   21.1 %   28.3 %   25.3 %   21.2 %   17.1 %

        Citi also reviewed the potential pro forma financial effects of the proposed Transactions on distributions per KMP common unit, distributions per KMR share and distributions per EPB common unit for calendar years 2015 through 2023 assuming a 12.0% premium to KMP's closing unit price on August 8, 2014, a 16.5% premium to KMR's closing share price on August 8, 2014 and a 15.4% premium to EPB's closing unit price on August 8, 2014 relative to distributions per KMP common unit, distributions per KMR share and distributions per EPB common unit on a standalone basis during such calendar years. Financial data of KMP, KMR and EPB were based on internal financial projections and other estimates of KMI management. Citi observed that the proposed Transactions could be accretive (dilutive) to distributions per KMP common unit, distributions per KMR share and distributions per EPB common unit on a standalone basis by the following percentages:

 
  2015   2016   2017   2018   2019   2020   2021   2022   2023  

KMP

    (14.5 %)   (11.3 %)   (6.7 %)   (4.7 %)   2.9 %   9.9 %   11.8 %   12.6 %   13.4 %

KMR

    (14.8 %)   (11.5 %)   (6.9 %)   (5.0 %)   2.7 %   9.6 %   11.5 %   12.4 %   13.2 %

EPB

    (17.4 %)   (9.1 %)   (4.8 %)   2.8 %   8.7 %   15.7 %   17.3 %   17.7 %   18.0 %

        The actual results achieved by KMI, KMP, KMR and EPB may vary from projected results and the variations may be material.

        Other Information.    Citi also noted certain additional information, including, among other things, implied enterprise values (calculated as equity values based on closing stock or unit prices on August 8, 2014 plus implied market values of KMGP and EPGP (calculated as firm value of the publicly traded general partner less the value of common units held by such general partner and the value of other operations allocated proportionally by contribution of general partner interest and related incentive distributions), total debt and minority interest and less cash and cash equivalents) as a multiple of calendar year 2015 estimated EBITDA and stock or unit prices as a multiple of calendar year 2015 estimated distributable cash flow, among other performance data, for KMI, KMP and EPB assuming a 12.0% and 15.4% premium to KMP's and EPB's closing unit prices on August 8, 2014, respectively, which indicated calendar year 2015 estimated EBITDA multiples for KMI, KMP and EPB of 15.6x, 15.0x and 13.8x, respectively, and calendar year 2015 estimated distributable cash flow multiples for KMI, KMP and EPB of 19.6x, 15.7x and 14.7x, respectively.

Miscellaneous

        KMI has agreed to pay Citi for its services as a financial advisor to KMI in connection with the proposed Transactions an aggregate fee of $5 million, payable contingent upon consummation of the Transactions. In addition, KMI has agreed to reimburse Citi for certain expenses, including reasonable fees and expenses of counsel, and to indemnify Citi and certain related parties against liabilities, including liabilities under federal securities laws, arising from Citi's engagement. Citi and its affiliates

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also are participating in the bridge facility as a syndication agent, documentation agent and lender and in the replacement revolving credit facility as syndication agent and as a joint lead arranger, joint bookrunner and lender, for which services Citi and its affiliates have received or will receive compensation.

        Citi and its affiliates in the past have provided, currently are providing and/or in the future may provide services to KMI, KMP, KMR, EPB and their respective affiliates unrelated to the proposed Transactions for which services Citi and its affiliates have received and may receive compensation including, during the two-year period prior to the KMI board meeting on August 9, 2014 at which the proposed Transactions were approved, having acted or acting (i) as financial advisor in connection with certain merger and acquisition transactions, (ii) as a syndication agent, lead arranger, book-running manager and collateral agent for, and as a lender under, certain credit facilities of KMI, KMP and certain affiliates of EPB and (iii) as a sales agent, underwriter, co-manager and book-running manager for certain securities offerings of KMI, KMP and EPB, for which services Citi and its affiliates received aggregate fees totaling approximately $12.8 million. In the ordinary course of business, Citi and its affiliates may actively trade or hold the securities of KMI, KMP, KMR, EPB and their respective affiliates for its own account or for the account of its customers and, accordingly, may at any time hold a long or short position in such securities. In addition, Citi and its affiliates (including Citigroup Inc. and its affiliates) may maintain relationships with KMI, KMP, KMR, EPB and their respective affiliates.

        KMI selected Citi to act as a financial advisor to KMI in connection with the proposed Transactions based on Citi's reputation, experience and familiarity with KMI and its business. Citi is an internationally recognized investment banking firm that regularly engages in the valuation of businesses and their securities in connection with mergers and acquisitions, negotiated underwritings, competitive bids, secondary distributions of listed and unlisted securities, private placements and valuations for estate, corporate and other purposes.


Interests of Certain Persons in the Transactions

        In considering the recommendations of the EPGP conflicts committee and the EPGP board, EPB unitholders should be aware that some of the executive officers and directors of EPGP have interests in the transaction that may differ from, or may be in addition to, the interests of EPB unitholders generally. These interests may present such directors and executive officers with actual or potential conflicts of interests, and these interests, to the extent material, are described below. The EPGP conflicts committee and the EPGP board were aware of these interests and considered them, among other matters, prior to providing their respective approvals and recommendations with respect to the EPB merger agreement.

        The following EPGP directors and executive officers are directors and executive officers of KMI, KMR and KMGP:

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        Each of these individuals will retain his or her positions with KMI following the Transactions.

        The EPB merger agreement provides for indemnification and advancement of expenses by KMI and EPB, after the effective time of the EPB merger, of the directors and officers of EPGP to the fullest extent authorized or permitted by applicable law. These merger agreement provisions are in addition to the indemnification and advancement of expenses provided to each of EPGP's directors and officers under (i) the organizational documents of EPB and EPGP, which provisions the EPB merger agreement requires to be maintained in effect for six years after the effective time of the EPB merger and (ii) separate indemnification agreements each of EPGP's non-employee directors has with EPGP.

        In addition, KMI will maintain in effect for six years from the effective time of the EPB merger EPGP's current directors' and officers' liability insurance policies covering acts or omissions occurring at or prior to the effective time of the EPB merger with respect to such indemnified persons.

        The non-employee directors on the EPGP board, Ronald L. Kuehn, Jr., Arthur C. Reichstetter and William A. Smith, each of whom serves on the EPGP conflicts committee, have been offered the opportunity to become members of the KMI board after the merger. If any of these individuals becomes a member of the KMI board, his initial term would expire at the next KMI annual meeting of stockholders in 2015, and at that time, he would be required to stand for re-election by the stockholders if he wished to continue to serve as a director.

        Any non-employee director on the EPGP board who becomes a member of the KMI board would be entitled to receive the same compensation as KMI's other non-employee directors. For 2014, this compensation consists of an annual retainer of $200,000, compared to the annual retainer of $125,000, consisting of $65,000 in cash and $60,000 in restricted EPB units, currently received by non-employee directors for service on the EPGP board. Under KMI's Stock Compensation Plan for Non-Employee Directors, eligible directors may elect to receive all or a portion of their annual retainer in the form of shares of KMI common stock rather than in cash. For more details about KMI's Stock Compensation Plan for Non-Employee Directors, please see KMI's documents incorporated by reference as described under "Where You Can Find More Information."

        All directors and certain executive officers of EPGP beneficially own equity securities of one or more of the parties to the Transactions, and these directors and executive officers will receive the applicable merger consideration upon completion of the Transactions. Each of the non-employee directors on the EPGP board holds 1,453 EPB restricted units, which would not otherwise vest until December 2, 2014. In accordance with the EPB merger agreement, these EPB restricted units will be treated as issued and outstanding EPB common units as of immediately prior to the effective time of the EPB merger. Please see "—Security Ownership of Certain Beneficial Owners and Management of EPB" for further detail.

        No executive officer of KMI or EPGP is entitled to or will receive any severance payments or "golden parachute compensation" in connection with the Transactions.

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Security Ownership of Certain Beneficial Owners and Management of EPB

        The following table sets forth information as of October 20, 2014, regarding the beneficial ownership of EPB common units (i) by each of the directors of EPGP, by the principal executive officer, principal financial officer and three other most highly compensated executive officers of EPGP (referred to as the named executive officers) and by all directors and executive officers as a group and (ii) by each person known by EPB to own beneficially at least 5% of such units. Except as noted otherwise, each beneficial owner has sole voting power and sole investment power over the units listed. The address of each person below is c/o El Paso Pipeline Partners, L.P., 1001 Louisiana Street, Suite 1000, Houston, Texas 77002.

 
  EPB Common Units  
Name of Beneficial Owner
  Number
of Units
  Percent
of Class(a)
 

Richard D. Kinder

    128,000     *  

Steven J. Kean

    18,000     *  

Thomas A. Martin

         

Ronald L. Kuehn, Jr.(b)

    78,121     *  

Arthur C. Reichstetter(b)

    113,753     *  

William A. Smith(b)

    13,858     *  

Kimberly A. Dang

         

David P. Michels

         

Directors and executive officers as a group (11 persons)(c)

    353,732     *  

KMI(d)

    93,380,734     40.1 %

*
Less than 1%.

(a)
Calculated based on 233,151,329 EPB common units outstanding as of October 20, 2014.

(b)
Includes 1,453 EPB restricted units.

(c)
Includes 4,359 EPB restricted units.

(d)
Consists of 93,380,734 EPB common units held by El Paso Pipeline LP Holdings, L.L.C., KMI's wholly owned subsidiary. KMI also indirectly owns EPB's general partner, which holds a 2% general partner interest in EPB and the incentive distribution rights.

        The following table sets forth information as of October 20, 2014, regarding the beneficial ownership of KMI common stock, KMP common units and KMR shares by each of the named executive officers and directors of EPGP and by all directors and executive officers of EPGP as a group.

 
  KMI Common Stock   KMP Common Units   KMR Shares  
Name of Beneficial Owner
  Number
of Shares
  Percent
of Class(a)
  Number
of Units
  Percent
of Class(a)
  Number
of Shares
  Percent
of Class(a)
 

Richard D. Kinder(b)

    243,100,000     23.6 %   333,774     *     344,181     *  

Steven J. Kean(c)

    7,119,843     *     10,830     *     5,752     *  

Thomas A. Martin(d)

    883,824     *             6,128     *  

Ronald L. Kuehn, Jr.(e)

    133,256     *     7,000     *              

Arthur C. Reichstetter

                         

William A. Smith(f)

    9,101     *                  

Kimberly A. Dang(g)

    2,110,690     *     121     *     715     *  

David P. Michels(h)

    240     *                  

Directors and executive officers as a group (11 persons)(i)

    253,949,950     24.7 %   351,987     *     359,153     *  

*
Less than 1%.

(a)
Calculated based on 1,028,229,501 shares of KMI common stock, 326,239,985 KMP common units and 133,966,228 KMR shares, as applicable, issued and outstanding as of October 20, 2014.

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(b)
Includes 40,467 shares of KMI common stock, 7,879 KMP common units and 1,366 KMR shares owned by Mr. Kinder's wife. Mr. Kinder disclaims any and all beneficial or pecuniary interest in the shares owned by his wife. Also includes 11,072,258 shares of KMI common stock held by a limited partnership of which Mr. Kinder controls the voting and disposition power. Mr. Kinder disclaims 99% of any beneficial and pecuniary interest in these shares.

(c)
Excludes 754,717 restricted KMI shares subject to forfeiture and voting restrictions that lapse on July 16, 2019. Includes 230,000 shares of KMI common stock held by a limited partnership. Mr. Kean is the sole general partner of the limited partnership, and two trusts of which family members of Mr. Kean are sole beneficiaries and Mr. Kean is a trustee, each own a 49.5% limited partner interest in the limited partnership. Mr. Kean disclaims beneficial ownership of the shares held by the limited partnership except to the extent of his pecuniary interest therein. Also includes 425,000 shares of KMI common stock owned by a charitable foundation of which Mr. Kean is a member of the board of directors and shares voting and investment power. Mr. Kean disclaims any beneficial ownership in these shares.

(d)
Excludes 226,416 restricted KMI shares subject to forfeiture and voting restrictions that lapse on July 16, 2019. Includes 148,950 shares of KMI common stock held by a trust for the benefit of family members of Mr. Martin with respect to which Mr. Martin shares voting and disposition power. Mr. Martin disclaims any beneficial ownership in these shares.

(e)
Includes 10,365 shares of KMI common stock and 7,000 KMP common units owned by Mr. Kuehn's spouse. Mr. Kuehn disclaims beneficial ownership of such KMI shares and KMP common units. Amount includes warrants to purchase 64,000 shares of KMI common stock held by Mr. Kuehn and 15,679 warrants to purchase KMP common units owned by Mr. Kuehn's spouse. Mr. Kuehn disclaims beneficial ownership of such warrants owned by his spouse.

(f)
Includes 3,622 shares of KMI common stock held by Mr. Smith's wife. Mr. Smith disclaims beneficial ownership of these shares. Amount includes warrants to purchase 5,479 shares of KMI common stock held by Mr. Smith's wife. Mr. Smith disclaims beneficial ownership of these warrants.

(g)
Excludes 226,416 restricted KMI shares subject to forfeiture and voting restrictions that lapse on July 16, 2019. Includes 2,026,048 shares of KMI common stock held by a limited partnership of which Mrs. Dang controls the voting and disposition power. Mrs. Dang disclaims 10% of any beneficial and pecuniary interests in these shares. Amount includes warrants to purchase 192 shares of KMI common stock held by Mrs. Dang.

(h)
Excludes 23,012 restricted KMI shares subject to forfeiture and voting restrictions that lapse between July 17, 2015 and July 17, 2017.

(i)
See notes (b) through (g) above. Also excludes 264,136 restricted KMI shares subject to forfeiture and voting restrictions that lapse between July 16, 2016 and July 16, 2019. Also includes 174,019 shares of KMI common stock held by limited partnerships, limited liability companies or trusts with respect to which executive officers have sole or shared voting or disposition power, but in respect of which shares, the executive officers disclaim all or a portion of any beneficial or pecuniary interest. Amount includes warrants to purchase 1,600 shares of KMI common stock held by an executive officer.


No Appraisal Rights

        EPB unitholders will not have appraisal rights in connection with the EPB merger. Under Section 17-212 of the Delaware Revised Uniform Limited Partnership Act, a partnership agreement or an agreement of merger may provide contractual appraisal rights with respect to partnership interests in the limited partnership. The EPB partnership agreement, however, does not provide limited partners with any dissenters' or appraisal rights in the event of a merger. Further, Section 2.6 of the EPB

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merger agreement provides that no dissenters' or appraisal rights are available with respect to the EPB merger or the other transactions contemplated by the EPB merger agreement. The foregoing discussion is not a complete statement of law pertaining to appraisal rights under Delaware law and is qualified in its entirety by reference to Delaware law, the EPB partnership agreement and the EPB merger agreement.


Accounting Treatment of the Merger

        The EPB merger will be accounted for in accordance with Financial Accounting Standards Board Accounting Standards Codification 810, Consolidation—Overall—Changes in a Parent's Ownership Interest in a Subsidiary. As KMI controls EPB and will continue to control EPB after the EPB merger, the changes in KMI's ownership interest in EPB will be accounted for as an equity transaction and no gain or loss will be recognized in KMI's consolidated statements of income resulting from the EPB merger.


Estimated Fees and Expenses

        The following is an estimate of the aggregate fees and expenses incurred, excluding financing costs, or to be incurred by the parties in connection with the Transactions:

Description
  Amount  
 
  (in millions)
 

Financial advisory fees

  $ 30.5  

Legal and other professional service fees

    16.8  

Proxy solicitation, printing and mailing costs

    17.5  

Filing fees

    5.6  

Miscellaneous

    19.6  
       

Total

  $ 90.0  
       
       

        Generally, all fees and expenses incurred in connection with the Transactions will be the obligation of the respective party incurring such fees and expenses.


Regulatory Approvals Required for the Merger

        We are unaware of any material regulatory approvals that must be received or filings that must be made in order to consummate the EPB merger, other than regulatory approvals required in the KMP merger. The following is a summary of the material regulatory requirements for completion of the KMP merger contemplated by the KMP merger agreement, the completion of which is a condition to the EPB merger. There can be no guarantee if and when any of the consents or approvals required for the KMP merger will be obtained or as to the conditions that such consents and approvals may contain.

        Under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, which is referred to as the "HSR Act," and related rules, certain transactions, including the KMP merger, may not be completed until notifications have been given and information furnished to the Antitrust Division of the United States Department of Justice, which is referred to as the "Antitrust Division," and the United States Federal Trade Commission, which is referred to as the "FTC," and all statutory waiting period requirements under the HSR Act have been satisfied. On August 15, 2014, KMI and KMP filed HSR Act Notification and Report Forms, which are referred to as the "HSR Forms," with the Antitrust Division and the FTC. The FTC granted early termination of the applicable waiting period under the HSR Act on August 22, 2014.


Directors and Executive Officers of KMI After the Merger

        The directors and executive officers of KMI prior to the EPB merger will continue as directors and executive officers of KMI after the EPB merger, except one of the current two directors nominated

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by Highstar Capital LP, which is referred to as "Highstar," will step down as a result of Highstar's ownership in KMI being reduced below 5% due to dilution as a result of the Transactions. For further information, please see "Description of KMI's Capital Stock—Shareholders Agreement—Board, Committee and Observer Rights." Additionally, the non-employee directors of EPGP, KMGP and KMR have been offered the opportunity to become members of the KMI board of directors after the Transactions.


EPB Unitholders Making Elections

        No less than 30 days prior to the anticipated effective time of the EPB merger, we will mail to EPB unitholders under separate cover a form of election for making stock, cash, mixed or no elections. EPB unitholders will have a minimum of 20 business days from the mailing of the form of election to make their election. Any EPB unitholder who became an EPB unitholder after the record date established for the mailing of forms of election, or who did not otherwise receive a form of election, should contact D.F. King & Co., Inc. toll-free at (800) 331-5963 or their bank, broker, nominee, trust company or other fiduciary to obtain a form of election. EPB unitholders who vote against approving the EPB merger agreement are still entitled to make elections with respect to their common units. The form of election allows holders of EPB common units to make stock, cash or mixed elections for some or all of their EPB common units or no election for their EPB common units. EPB common units as to which the holder has not made a valid election prior to the election deadline will be treated as though no election has been made. To validly make a stock, cash, mixed or no election, EPB unitholders must properly complete, sign and send the form of election and unit certificates (or evidence of units in book-entry form) to the exchange agent prior to the election deadline.

        For information regarding certain U.S. federal income tax consequences of the EPB merger, please see "Material U.S. Federal Income Tax Consequences."

Exchange Agent

        Computershare Inc. and Computershare Trust Company, N.A. will serve as the exchange agent for purposes of effecting the election and proration procedures.

Election Deadline

        Unless otherwise designated on the election form, the election deadline will be 5:00 p.m., New York City time, on the second business day prior to the effective time of the merger. KMI will publicly announce the anticipated election deadline at least five business days prior to the election deadline in a press release, on KMI's website at www.kindermorgan.com and in a filing with the SEC. If the effective time of the EPB merger is delayed to a subsequent date, the election deadline will be similarly delayed to a subsequent date (which will be the second business day prior to the new effective time of the EPB merger), and KMI will promptly announce any such delay.

        EPB unitholders who hold their units in "street name" may be subject to an earlier deadline. Therefore, EPB unitholders should carefully read any materials received from their bank, broker, nominee, trust company or other fiduciary.

Form of Election

        The applicable form of election must be properly completed and signed and accompanied by:

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        In order to make a stock, cash, mixed and/or no election, the properly completed and signed form of election, together with one of the items described above, must be actually received by the exchange agent at or prior to the election deadline in accordance with the instructions accompanying the form of election.

Impact of Selling Units as to which an Election Has Already Been Made

        EPB unitholders who have made elections will be unable to sell or otherwise transfer their units after making the election, unless the election is properly revoked before the election deadline or unless the EPB merger agreement is terminated.

Election Revocation and Changes

        An election may be revoked or changed with respect to all or a portion of the EPB common units covered by the election by the holder who submitted the applicable form of election, but only by written notice received by the exchange agent prior to the election deadline. If an election is revoked, or the EPB merger agreement is terminated, and any unit certificates have been transmitted to the exchange agent, the exchange agent will promptly return those certificates to the EPB unitholder who submitted those certificates. EPB unitholders will not be entitled to revoke or change their elections following the election deadline, unless the EPB merger agreement is thereafter terminated or the election deadline is thereafter delayed. As a result, EPB unitholders who have made elections will be unable to revoke their elections or sell their EPB common units during the period between the election deadline and the date of completion of the EPB merger or termination of the EPB merger agreement.

        EPB unitholders not making a valid election in respect of their EPB common units prior to the election deadline, including as a result of revocation, will be deemed non-electing holders. If it is determined that any purported stock election, cash election or mixed election was not properly made, the purported election will be deemed to be of no force or effect and the holder making the purported election will be deemed not to have made an election for these purposes, unless a proper election is subsequently made on a timely basis.

Non-Electing Holders

        EPB unitholders who make no election to receive stock consideration, cash consideration or mixed consideration in the EPB merger, whose election forms are not received by the exchange agent by the election deadline, or whose election forms are improperly completed or not signed will be deemed not to have made an election (and such EPB common units referred to as "no election units"). EPB unitholders not making an election in respect of some or all of their EPB common units will receive mixed consideration with respect to the EPB common units for which no election has been made. See "—Proration and Adjustment Procedures" below.

Proration and Adjustment Procedures

        EPB unitholders should be aware that cash elections and stock elections they make may be subject to the proration and adjustment procedures provided in the EPB merger agreement to ensure that the total amount of cash paid and the total number of shares of KMI common stock issued in the EPB merger to EPB unitholders as a whole are equal to the total amount of cash that would have been paid

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and the total number of shares of KMI common stock that would have been issued if all EPB unitholders elected to receive the mixed consideration.

        Therefore, if providing $39.53 in cash per EPB common unit to those who make the cash election would cause KMI to pay more cash than if all EPB unitholders were to receive $4.65 in cash per EPB common unit, then the amount of cash per EPB common unit to be received by holders making a cash election will be reduced (pro rata across all outstanding EPB common units subject to a cash election, which are referred to as the "cash election units"), so that the aggregate cash paid to all EPB unitholders is equal to $4.65 per EPB common unit, and the remainder of the consideration in respect of outstanding EPB cash election units will be payable in shares of KMI common stock and cash in lieu of fractional shares.

        In addition, if providing 1.0711 shares of KMI common stock per EPB common unit to those who make the stock election would cause KMI to issue more shares of KMI common stock than if all EPB unitholders received 0.9451 of a share of KMI common stock per EPB common unit, then the amount of shares of KMI common stock per EPB common unit to be received by holders making a stock election will be reduced (pro rata across all outstanding EPB common units subject to a stock election, which are referred to as the "stock election units"), so that the aggregate shares of KMI common stock paid to all EPB unitholders is equal to 0.9451 of a share of KMI common stock per EPB common unit, and the remainder of the consideration in respect of outstanding EPB stock election units will be payable in cash.

        The proration and adjustment procedures work as follows:

        If, (A) the product of the number of cash election units and $39.53, the "Per Unit Cash Election Consideration," (such product being referred to as the "Cash Election Amount") exceeds (B) the difference between (x) the product of $4.65, the "Per Unit Mixed Consideration Cash Amount," and the total number of issued and outstanding EPB common units immediately prior to the effective time of the EPB merger (excluding EPB common units that are to remain outstanding as provided for in the EPB merger agreement and including, for the avoidance of doubt, EPB restricted units) minus (y) the product of the number of mixed consideration election units (provided that no election units will be deemed to be mixed consideration election units for purposes of the proration provision)) and the Per Unit Mixed Consideration Cash Amount, the "Aggregate Mixed Consideration Cash Amount", such difference being referred to as the "Available Cash Election Amount", then each cash election unit will be converted into a right to receive (1) an amount of cash (without interest) equal to the product of (p) the Per Unit Cash Election Consideration and (q) a fraction, the numerator of which will be the Available Cash Election Amount and the denominator of which will be the Cash Election Amount, such fraction being the "Cash Fraction", and (2) a number of shares of KMI common stock equal to the product of (r) 1.0711, the "Exchange Ratio," and (s) one (1) minus the Cash Fraction.

        If the Available Cash Election Amount exceeds the Cash Election Amount, then each stock election unit shall be converted into the right to receive (A) an amount of cash (without interest) equal to the amount of such excess divided by the number of stock election units and (B) a number of shares of KMI common stock equal to the product of (x) the Exchange Ratio and (y) a fraction, the numerator of which shall be the Per Unit Cash Election Consideration minus the amount calculated in clause (A) and the denominator of which shall be the Per Unit Cash Election Consideration.

        Neither KMI nor EPB is making any recommendation as to whether EPB unitholders should make a cash election, stock election, mixed election or no election in the EPB merger. You must make your own decision with respect to such election. No guarantee can be made that you will receive the amount of cash consideration or stock consideration you elect. As a result of the proration procedures and other limitations described in this proxy statement/prospectus and in the EPB merger agreement, you may receive stock consideration or cash consideration in amounts that are different from the amounts you elect to receive. Because the value of the stock consideration and cash consideration may differ, you may receive consideration having an aggregate value less than what you elected to receive.

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Listing of KMI Common Stock

        It is a condition to closing that the KMI common stock to be issued in the EPB merger to EPB unitholders be approved for listing on the NYSE, subject to official notice of issuance.


Delisting and Deregistration of EPB Common Units

        If the EPB merger is completed, EPB common units will cease to be listed on the New York Stock Exchange and will be deregistered under the Exchange Act.


Ownership of KMI after the Transactions

        KMI will issue approximately 133 million shares of KMI common stock to former unaffiliated EPB unitholders pursuant to the EPB merger. Further, KMI will issue approximately 963 million shares of KMI common stock to former public KMP common unitholders and former public KMR shareholders pursuant to the KMP merger and the KMR merger. As a result, immediately following the completion of the Transactions, KMI expects to have at least 2,124 million shares of KMI common stock outstanding. Former public EPB common unitholders are therefore expected to hold approximately 6.3% of the aggregate shares of KMI common stock outstanding immediately after the Transactions. Collectively, former public KMP common unitholders, public KMR shareholders and public EPB common unitholders are expected to hold approximately 51.6% of the aggregate shares of KMI common stock outstanding immediately after the Transactions.


Restrictions on Sales of KMI Common Stock Received in the Merger

        Shares of KMI common stock issued in the EPB merger will not be subject to any restrictions on transfer arising under the Securities Act or the Exchange Act, except for shares of KMI common stock issued to any EPB unitholder who may be deemed to be an "affiliate" of KMI after the completion of the EPB merger. This proxy statement/prospectus does not cover resales of KMI common stock received by any person upon the completion of the EPB merger, and no person is authorized to make any use of this proxy statement/prospectus in connection with any resale.


Litigation Relating to the Mergers

        Four putative class action lawsuits were filed in the Court of Chancery of the State of Delaware in connection with the proposed merger transactions: (i) William Bryce Arendt v. Kinder Morgan Energy Partners, L.P., et al., Case No. 10093-VCL; (ii) The Haynes Family Trust U/A. v. Kinder Morgan Energy Partners, L.P., et al., Case No. 10118-VCL; (iii) George H. Edwards, et al., v. El Paso Pipeline Partners, L.P., et al., Case No. 10160-VCL; and (iv) Irwin Berlin v. Kinder Morgan Energy Partners, L.P., et al., Case No. 10191-VCL. On September 28, 2014, the Arendt and Haynes actions were consolidated under the caption In re Kinder Morgan Energy Partners, L.P. Unitholders Litigation, Case No. 10093-VCL, with the complaint in the Haynes action designated as the operative complaint. Among the relief sought in the complaints filed in these lawsuits is to enjoin one or more of the proposed merger transactions.

        The plaintiffs in the In re Kinder Morgan Energy Partners, L.P. Unitholders Litigation action allege that (i) KMR, KMGP, and individual defendants breached the express terms of and their duties under the KMP partnership agreement, including the implied duty of good faith and fair dealing, by entering into the KMP Transaction and by failing to adequately disclose material facts related to the transaction; (ii) KMI aided and abetted such breach; and (iii) KMI tortiously interfered with the rights of the plaintiffs and the putative class under the KMP partnership agreement by causing KMGP and the individual defendants to breach their duties under the KMP partnership agreement. Further, plaintiffs allege that the KMP partnership agreement mandates that the transaction be approved by two-thirds of KMP's limited partner interests. On September 26, 2014, plaintiffs filed a motion for expedited proceedings. On September 29, 2014, plaintiffs filed a motion for a preliminary injunction seeking to enjoin the KMP vote.

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        In the George H. Edwards, et al. v. El Paso Pipeline Partners, L.P., et al. action, plaintiffs allege that (i) EPGP breached the implied duty of good faith and fair dealing by approving the EPB transaction in bad faith; (ii) EPGP, the EPGP directors named as defendants, E Merger Sub LLC, and KMI aided and abetted such breach; (iii) EPGP breached its duties under the EPB partnership agreement, including the implied duty of good faith and fair dealing; and (iv) EPB, the EPGP directors named as defendants, E Merger Sub LLC, and KMI aided and abetted such breach and tortiously interfered with the rights of the EPB unitholders under the EPB partnership agreement.

        The plaintiffs also allege that (i) KMR and KMGP breached their duties under the KMP partnership agreement including the implied duty of good faith and fair dealing; and (ii) KMP, the KMGP directors named as defendants, P Merger Sub LLC, and KMI aided and abetted such breach and tortiously interfered with the rights of the KMP unitholders under the KMP partnership agreement. In addition, plaintiffs allege that KMR and KMGP breached the residual fiduciary duties owed to KMP unitholders, and KMP, the KMGP directors named as defendants, P Merger Sub LLC, and KMI aided and abetted such breach. Finally, plaintiffs allege that the KMP partnership agreement mandates that the KMP merger be approved, alternatively, by at least 95% of all of KMP's limited partner interests, by at least two-thirds of KMP's limited partner interests, or by at least two-thirds of KMP's common unitholders.

        On September 26, 2014, plaintiffs filed a motion for expedited discovery, and a motion for a preliminary injunction seeking to enjoin the KMP vote.

        On October 7, 2014, the Court ruled that expedited discovery and expedited proceedings could proceed with respect to claims relating to the vote required to approve the KMP merger. The Court has scheduled a hearing on this matter for October 31, 2014.

        In the Irwin Berlin v. Kinder Morgan Energy Partners, L.P., et al. action, plaintiff alleges that (i) KMR, KMGP, KMI, and members of the Board of Directors of KMGP breached their fiduciary duties by entering into the KMP Transaction and by failing to adequately disclose material facts related to the transaction; (ii) KMI aided and abetted such breach; and (iii) KMGP breached its duty of good faith and fair dealing. Although KMP is listed as a defendant in the caption, no claims are asserted against it in the complaint.

        The defendants believe the allegations against them lack merit, and they intend to vigorously defend these lawsuits.

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RISK FACTORS

        In addition to the other information included and incorporated by reference into this proxy statement/prospectus, including the matters addressed in the section titled "Cautionary Statement Regarding Forward-Looking Statements," you should carefully consider the following risks before deciding whether to vote for the approval of the EPB merger agreement. In addition, you should read and carefully consider the risks associated with each of KMI and EPB and their respective businesses. These risks can be found in KMI's and EPB's respective Annual Reports on Form 10-K for the year ended December 31, 2013, as updated by subsequent Quarterly Reports on Form 10-Q, all of which are filed with the SEC and incorporated by reference into this proxy statement/prospectus. You also may wish to read and consider the risks associated with each of KMP and KMR and their respective businesses described in their reports filed with the SEC. For further information regarding the documents incorporated into this proxy statement/prospectus by reference or referred to above, please see the section titled "Where You Can Find More Information." Realization of any of the risks described below, any of the events described under "Cautionary Statement Regarding Forward-Looking Statements" or any of the risks or events described in the documents incorporated by reference or referred to above could have a material adverse effect on KMI's, EPB's or the combined organization's respective businesses, financial condition, cash flows and results of operations and could result in a decline in the trading prices of their respective securities.


Risk Factors Relating to the Merger

The mergers that are part of the Transactions are contingent upon each other, and the EPB merger is subject to other substantial conditions and may not be consummated even if the required KMI stockholder and EPB unitholder approvals are obtained.

        Completion of the EPB merger is contingent upon completion of the KMP merger and the KMR merger, and vice versa. No merger will occur unless all three mergers occur. The KMP and KMR mergers are subject to the satisfaction or waiver of their own conditions, including approval of merger agreements by KMP's unitholders and KMR's shareholders, some of which are out of the control of KMI and all of which are out of the control of EPB. Further, KMI's stockholders must approve an amendment to KMI's certificate of incorporation to increase the number of authorized shares of KMI common stock and must approve the issuance of KMI common stock in the three mergers.

        The EPB merger agreement contains other conditions that, if not satisfied or waived, would result in the EPB merger not occurring, even though the KMI stockholders and the EPB unitholders may have voted in favor of the merger-related proposals presented to them. Satisfaction of some of these other conditions to the EPB merger, such as receipt of required regulatory approvals, is not entirely in the control of KMI or EPB. In addition, KMI and EPB can agree not to consummate the EPB merger even if all stockholder and unitholder approvals have been received. The closing conditions to the EPB merger may not be satisfied, and KMI or EPB may choose not to, or may be unable to, waive an unsatisfied condition, which may cause the EPB merger not to occur. See "Proposal 1: The Merger Agreement—Conditions to Completion of the Merger."

Because the exchange ratio is fixed and because the market price of KMI common stock will fluctuate prior to the consummation of the EPB merger, EPB unitholders who receive KMI common stock as part of the merger consideration cannot be sure of the market value of the KMI common stock they will receive in the EPB merger until the effective time of the EPB merger.

        EPB unitholders who either make a stock election, mixed election or no election or who make a cash election that is subject to proration will receive KMI common stock as part of the merger consideration. The market value of the KMI common stock that such EPB unitholders will receive in the EPB merger will depend on the trading price of the KMI common stock as of the effective time of the EPB merger. The exchange ratio that determines the number of shares of KMI common stock that

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EPB unitholders will receive in the EPB merger is fixed. This means that there is no mechanism contained in the EPB merger agreement that would adjust the number of shares of KMI common stock that EPB unitholders will receive based on any decreases in the trading price of the KMI common stock. If the KMI common stock price as of the effective time of the EPB merger is less than the KMI common stock price as of the date that the EPB merger agreement was signed, then the market value of the consideration received by EPB unitholders will be less than contemplated at the time the EPB merger agreement was signed.

        KMI common stock price changes may result from a variety of factors, including general market and economic conditions, market expectations regarding the impact of the Transactions on KMI's future financial performance, conditions affecting its industry generally or those of its customers, changes in KMI's business, operations and prospects, and regulatory considerations. Many of these factors are beyond KMI's and EPB's control. For historical and current market prices of KMI common stock and EPB common units, please read "Summary Term Sheet—Comparative Stock and Unit Prices; Comparative Dividends and Distributions" in this proxy statement/prospectus.

EPB unitholders may not receive the amount of cash consideration or stock consideration they elected to receive due to proration and adjustment, and therefore such unitholders may receive consideration having an aggregate value that is less than the aggregate value of consideration they elected to receive.

        EPB unitholders who make either a cash election or a stock election will be subject to proration if EPB unitholders, in the aggregate, elect to receive more or less cash consideration than the aggregate amount of cash consideration to be paid in the EPB merger. Accordingly, some of the consideration EPB unitholders receive in the EPB merger may differ from the type of consideration they elected to receive. The relative proportion of KMI common stock and cash that an EPB unitholder receives in the merger also may have an aggregate value that is higher or lower than the relative proportion of stock and cash that the EPB unitholder elected to receive. A discussion of the proration mechanism can be found under the heading "Special Factors—EPB Unitholders Making Elections—Proration and Adjustment Procedures."

The tax liability of an EPB unitholder as a result of the EPB merger could be more than expected.

        As a result of the EPB merger, an EPB unitholder will recognize gain or loss for U.S. federal income tax purposes equal to the difference between the amount realized and its adjusted tax basis in its EPB common units. EPB unitholders who either make the stock election, mixed election or no election or who make a cash election that is subject to proration will receive KMI common stock as part of the merger consideration. Because the value of any KMI common stock received in the EPB merger will not be known until the effective time of the merger, an EPB unitholder who receives KMI common stock as full or partial consideration for its EPB common units will not be able to determine its amount realized, and therefore its taxable gain or loss, until such time. In addition, because prior distributions in excess of an EPB unitholder's allocable share of EPB's net taxable income decrease such EPB unitholder's tax basis in its EPB common units, the amount, if any, of such prior excess distributions with respect to such EPB common units will, in effect, become taxable income to an EPB unitholder if the aggregate value of the consideration received in the EPB merger is greater than such EPB unitholder's adjusted tax basis in its EPB common units, even if the aggregate value of the consideration received in the EPB merger is less than such EPB unitholder's original cost basis in its EPB common units. Furthermore, a portion of this gain or loss, which portion will likely be substantial, will be separately computed and taxed as ordinary income or loss to the extent attributable to assets giving rise to depreciation recapture or other "unrealized receivables" or to "inventory items" owned by EPB and its subsidiaries.

        For a more complete discussion of certain U.S. federal income tax consequences of the EPB merger, please read "Material U.S. Federal Income Tax Consequences."

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The tax liability of an EPB unitholder as a result of the EPB merger may exceed the cash received by such unitholder in the EPB merger.

        The receipt of KMI common stock, cash or a combination of KMI common stock and cash by EPB unitholders in exchange for EPB common units in the EPB merger will be treated as a taxable sale by such unitholders of such common units for U.S. federal income tax purposes. The amount of gain or loss recognized by each EPB unitholder in the EPB merger will vary depending on each EPB unitholder's particular situation, including the amount of any cash and the fair market value of any KMI common stock received by such unitholder in the EPB merger, the adjusted tax basis of the EPB common units exchanged by such unitholder in the EPB merger and the amount of any suspended passive losses that may be available to a particular unitholder to offset a portion of the gain recognized by such unitholder. The amount of cash received by each EPB unitholder in the EPB merger will vary depending on whether such unitholder makes a stock, cash or mixed election, or no election, and whether such unitholder's cash election or stock election is subject to proration and adjustment. Consequently, the gain recognized for U.S. federal income tax purposes by a EPB unitholder in the EPB merger may result in a tax liability in excess of the cash received by such unitholder in the EPB merger.

        For a more complete discussion of certain U.S. federal income tax consequences of the EPB merger, please read "Material U.S. Federal Income Tax Consequences."

EPB is subject to provisions that limit its ability to pursue alternatives to the EPB merger and could discourage a potential competing acquirer of EPB from making a favorable alternative transaction proposal.

        Under the EPB merger agreement, EPB is restricted from entering into alternative transactions. Unless and until the EPB merger agreement is terminated, subject to specified exceptions (which are discussed in more detail in "Proposal 1: The Merger Agreement—No Solicitation by EPB"), EPB is restricted from soliciting, initiating, knowingly facilitating, knowingly encouraging or knowingly inducing or negotiating, any inquiry, proposal or offer for a competing acquisition proposal with any person. Under the EPB merger agreement, in the event of a potential change by the EPGP conflicts committee or the EPGP board of its recommendation with respect to the proposed EPB merger in light of an alternative proposal where the failure to make such change of recommendation would be inconsistent with the best interests of EPB, EPB must provide KMI with three days' notice to allow KMI to propose an adjustment to the terms and conditions of the EPB merger agreement. These provisions could discourage a third party that may have an interest in acquiring all or a significant part of EPB from considering or proposing that acquisition, even if such third party were prepared to pay consideration with a higher per unit market value than the market value proposed to be received or realized in the EPB merger. For a discussion of the restrictions on EPB soliciting or entering into a takeover proposal or alternative transaction and the EPGP conflicts committee's or the EPGP board's ability to change its recommendation, see "Proposal 1: The Merger Agreement—No Solicitation by EPB" and "KMR Recommendation and KMR Adverse Recommendation Change."

All directors and certain executive officers of EPGP have certain interests that are different from those of EPB unitholders generally.

        All directors and certain executive officers of EPGP have interests that may be different from, or be in addition to, your interests as a unitholder of EPB. You should consider these interests in voting on the EPB merger. These different interests are described under "Special Factors—Interests of Certain Persons in the Transactions."

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The KMI common stock to be received by EPB unitholders as a result of the EPB merger has different rights from EPB common units.

        Following completion of the EPB merger, EPB unitholders will no longer hold EPB common units, but will instead be stockholders of KMI. KMI is a corporation, and EPB is a limited partnership. There are important differences between the rights of EPB unitholders and the rights of KMI stockholders. See "Comparison of Rights of KMI Stockholders and EPB Unitholders" for a discussion of the different rights associated with EPB common units and KMI common stock.

KMI and the other parties will incur substantial transaction-related costs in connection with the Transactions.

        KMI and the other parties to the Transactions, including EPB, expect to incur a number of non-recurring transaction-related costs associated with completing the Transactions, which are currently estimated to total approximately $90 million, excluding expenses associated with expected financings, which expenses could be substantial. Non-recurring transaction costs include, but are not limited to, fees paid to legal, financial and accounting advisors, filing fees and printing costs. There can be no assurance that the elimination of certain costs due to the fact that KMP, KMR and EPB will no longer be public companies will offset the incremental transaction-related costs over time. Thus, any net cost savings may not be achieved in the near term, the long term or at all.

Failure to complete, or significant delays in completing, the EPB merger could negatively affect the trading prices of KMI common stock and EPB common units and the future business and financial results of KMI and EPB.

        Completion of the EPB merger is not assured and is subject to risks, including the risks that approval of the EPB merger by the EPB unitholders or by governmental agencies is not obtained or that other closing conditions are not satisfied. If the EPB merger is not completed, or if there are significant delays in completing the EPB merger, the trading prices of KMI common stock and EPB common units and the respective future business and financial results of KMI and EPB could be negatively affected, and each of them will be subject to several risks, including the following:

If the EPB merger is approved by EPB unitholders, the date that those unitholders will receive the merger consideration is uncertain.

        As described in this proxy statement/prospectus, completing the proposed merger is subject to a number of conditions, not all of which are controllable or waiveable by KMI or EPB. Accordingly, if the proposed merger is approved by EPB unitholders, the date that those EPB unitholders will receive the merger consideration depends on the completion date of the EPB merger, which is uncertain.

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The fairness opinion rendered to the EPGP conflicts committee by its financial advisor was based on the financial analysis performed by the financial advisor, which considered factors such as market and other conditions then in effect, and financial forecasts and other information made available to the financial advisor, as of the date of its opinion. As a result, this opinion does not reflect changes in events or circumstances after the date of the opinion. The EPGP conflicts committee has not obtained, and does not expect to obtain, an updated fairness opinion from its financial advisor reflecting changes in circumstances that may have occurred since the signing of the EPB merger agreement.

        The fairness opinion rendered to the EPGP conflicts committee by TPH was provided in connection with, and at the time of, the EPGP conflicts committee's evaluation of the EPB merger and the EPB merger agreement. This opinion was based on the financial analysis performed, which considered market and other conditions then in effect, and financial forecasts and other information made available to TPH, as of the date of its opinion, which may have changed, or may change, after the date of the opinion. The EPGP conflicts committee has not obtained an updated opinion as of the date of this proxy statement/prospectus from TPH, and it does not expect to obtain an updated opinion prior to completion of the EPB merger. Changes in the operations and prospects of KMI or EPB, general market and economic conditions and other factors which may be beyond the control of KMI and EPB, and on which the fairness opinion was based, may have altered the value of KMI or EPB or the prices of KMI common stock or EPB common units since the date of such opinion, or may alter such values and prices by the time the EPB merger is completed. The opinion does not speak as of any date other than the date of the opinion. For a description of the opinion that the EPGP conflicts committee received from TPH, please refer to "Special Factors—Opinion of Tudor, Pickering, Holt & Co. Securities, Inc."

The financial estimates in this proxy statement/prospectus are based on various assumptions that may not be realized.

        The financial estimates set forth in the forecast included under "Special Factors—Projected Financial Information" are based on assumptions of, and information available to, management of KMI at the time they were prepared and provided to the EPGP conflicts committee and its financial advisor. KMI and EPB do not know whether the assumptions made will be realized. They can be adversely affected by known or unknown risks and uncertainties, many of which are beyond KMI's and EPB's control. Many factors mentioned in this proxy statement/prospectus, including the risks outlined in this "Risk Factors" section and the events and/or circumstances described under "Cautionary Statement Regarding Forward-Looking Statements" will be important in determining KMI's and/or EPB's future results. As a result of these contingencies, actual future results may vary materially from KMI's estimates. In view of these uncertainties, the inclusion of the projected financial information in this proxy statement/prospectus is not and should not be viewed as a representation that the forecasted results will be achieved.

        The projected financial information contains possible scenarios for KMI's and EPB's internal use and was not prepared with a view toward public disclosure, nor with a view toward compliance with published guidelines of any regulatory or professional body. Further, any forward-looking statement speaks only as of the date on which it is made, and neither KMI nor EPB undertakes any obligation, other than as required by applicable law, to update the projected financial information herein to reflect events or circumstances after the date the projected financial information was prepared or to reflect the occurrence of anticipated or unanticipated events or circumstances.

        The projected financial information included in this proxy statement/prospectus has been prepared by, and is the responsibility of, KMI. PricewaterhouseCoopers LLP, KMI's and EPB's independent accountants, have not compiled, examined or performed any procedures with respect to the projected financial information contained herein, nor have they expressed any opinion or any other form of assurance on such information or its achievability, and, accordingly, PricewaterhouseCoopers LLP

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assumes no responsibility for, and disclaims any association with, such projected financial information. The reports of PricewaterhouseCoopers LLP incorporated by reference in this proxy statement/prospectus relate exclusively to the historical financial information of the entities named in those reports and do not cover any other information in this proxy statement/prospectus and should not be read to do so. See "Special Factors—Projected Financial Information" for more information.

Pursuant to the terms of the EPB partnership agreement, KMI is entitled to vote its EPB common units, representing approximately 40% of the outstanding EPB common units, in favor of the merger at the EPB special meeting.

        Pursuant to the terms of the EPB partnership agreement, the affirmative vote of holders of a majority of the outstanding EPB common units, including units owned by KMI and its affiliates, is required to approve the EPB merger. KMI and its subsidiaries own approximately 40% of the outstanding EPB common units. Accordingly, the EPB merger may be approved even if a majority of the unaffiliated EPB unitholders vote against the EPB merger.

Purported class action complaints have been filed challenging the merger transactions, and an unfavorable judgment or ruling in these lawsuits could prevent or delay the consummation of the proposed merger and result in substantial costs.

        Three purported class action lawsuits are currently pending that challenge the merger transactions. Each of the actions names KMI, KMGP, KMR, Richard D. Kinder, Steven J. Kean, Ted A. Gardner, Gary L. Hultquist, and Perry M. Waughtal as defendants. Additionally, KMP, P Merger Sub LLC, E Merger Sub LLC, EPB, EPGP, Ronald L. Kuehn, Jr., Thomas A. Martin, Arthur C. Reichstetter, and William A. Smith are named as defendants in one of the pending actions. Among other remedies, the plaintiffs seek to enjoin one or more of the proposed merger transactions. If these lawsuits are not dismissed or otherwise resolved, they could prevent and/or delay completion of the merger transactions and result in substantial costs to KMI, KMP, KMR, and EPB including any costs associated with the indemnification of general partners, directors, and/or their affiliates. Additional lawsuits may be filed in connection with the proposed merger transactions. There can be no assurance that any of the defendants will prevail in the pending litigation or in any future litigation. The defense or settlement of any lawsuit or claim may adversely affect the combined organization's business, financial condition or results of operations. See "Proposal 1: Special Factors—Litigation Relating to the Mergers."


Risk Factors Relating to the Ownership of KMI Common Stock

The price of KMI common stock may be volatile, and holders of KMI common stock could lose a significant portion of their investments.

        The market price of the KMI common stock could be volatile, and holders of KMI common stock may not be able to resell their KMI common stock at or above the price at which they acquired such KMI common stock due to fluctuations in the market price of the KMI common stock, including changes in price caused by factors unrelated to KMI's operating performance or prospects.

        Specific factors that may have a significant effect on the market price for the KMI common stock include:

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Holders of KMI common stock may not receive the anticipated level of dividends under KMI's dividend policy or any dividends at all.

        KMI's dividend policy provides that, subject to applicable law, KMI will pay quarterly cash dividends generally representing the cash it receives from its subsidiaries less any cash disbursements and reserves established by a majority vote of the KMI board of directors, including for general and administrative expenses, interest and cash taxes. However, KMI's board of directors may amend, revoke or suspend the dividend policy at any time, and even while the current policy is in place, the actual amount of dividends on the KMI common stock will depend on many factors, including KMI's financial condition and results of operations, liquidity requirements, market opportunities, capital requirements of its subsidiaries, legal, regulatory and contractual constraints, tax laws and other factors.

        Over time, KMI's capital and other cash needs may change significantly from its current needs, which could affect whether KMI pays dividends and the amount of any dividends it may pay in the future. The terms of any future indebtedness KMI incurs also may restrict it from paying cash dividends on its stock under certain circumstances. A decline in the market price or liquidity, or both, of the KMI common stock could result if KMI's board of directors establishes large reserves that reduce the amount of quarterly dividends paid or if KMI reduces or eliminates the payment of dividends. This may in turn result in losses by KMI's stockholders, which could be substantial.

KMI's dividend policy may limit its ability to pursue growth opportunities or impair its financial flexibility.

        If KMI pays dividends at the level currently anticipated under its dividend policy, KMI may not retain a sufficient amount of cash to finance growth opportunities, meet any large unanticipated liquidity requirements or fund its operations in the event of a significant business downturn. In addition, because of the dividends required under the dividend policy, KMI's ability to pursue any material expansion of its business, including through acquisitions, increased capital spending or other increases of expenditures, will depend more than it otherwise would on KMI's ability to obtain third party financing. KMI cannot assure its stockholders that such financing will be available to KMI at all, or at an acceptable cost. If KMI is unable to take timely advantage of growth opportunities, its future financial condition and competitive position may be harmed, which in turn may adversely affect the market price of the KMI common stock.

KMI's ability to pay dividends is restricted by Delaware law.

        Under the General Corporation Law of the State of Delaware, or the DGCL, KMI's board of directors may not authorize payment of a dividend unless it is either paid out of surplus, as calculated in accordance with the DGCL, or if KMI does not have a surplus, it is paid out of net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year. KMI's bylaws require the declaration and payment of dividends to comply with the DGCL. If, as a result of these restrictions, KMI is unable to authorize payment of dividends, a decline in the market price or liquidity, or both, of the KMI common stock could result. This may in turn result in losses by KMI stockholders.

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KMI's substantial debt could adversely affect its financial health and make it more vulnerable to adverse economic conditions.

        In connection with the Transactions, KMI expects to incur approximately $4.2 billion of indebtedness either under the bridge facility or in capital markets transactions. As a result, as of June 30, 2014, on a pro forma basis after giving effect to the Transactions, KMI would have had approximately $39.3 billion of consolidated debt (excluding debt fair value adjustments). Additionally, in connection with the Transactions, KMI, KMP, EPB and substantially all of their respective wholly owned subsidiaries with debt will enter into a cross guarantee arrangement whereby each entity will unconditionally guarantee the indebtedness of each other entity, thereby causing KMI to become liable for the debt of each of such subsidiaries. This level of debt and this cross guarantee arrangement could have important consequences, such as:

        KMI's ability to service its debt will depend upon, among other things, its future financial and operating performance, which will be affected by prevailing economic conditions and financial, business, regulatory and other factors, many of which will be beyond KMI's control. If KMI's operating results are not sufficient to service its indebtedness, including the cross-guaranteed debt, and any future indebtedness that it may incur, KMI will be forced to take actions, which may include reducing dividends, reducing or delaying its business activities, acquisitions, investments or capital expenditures, selling assets or seeking additional equity capital. KMI may not be able to effect any of these actions on satisfactory terms or at all.

        To the extent indebtedness incurred in connection with the Transactions is floating rate debt, such as would be the case pursuant to the bridge facility, each of KMI's, KMP's, KMR's and EPB's exposure to floating rate debt would increase.

The U.S. federal income tax treatment to EPB unitholders with respect to owning and disposing of any KMI common stock received in the EPB merger will be different than their U.S. federal income tax treatment with respect to owning and disposing of their EPB common units.

        For U.S. federal income tax purposes, EPB is classified as a partnership, and thus, is not a taxable entity and incurs no U.S. federal income tax liability. Instead, each EPB unitholder is required to take into account such unitholder's share of items of income, gain, loss and deduction of EPB in computing its U.S. federal income tax liability, regardless of whether cash distributions are made to such EPB unitholder by EPB. A distribution of cash by EPB to an EPB unitholder who is a U.S. holder (as defined in "Material U.S. Federal Income Tax Consequences") is generally not taxable for U.S. federal income tax purposes unless the amount of cash distributed is in excess of the EPB unitholder's adjusted tax basis in its EPB common units. In contrast, KMI is classified as a corporation for U.S. federal income tax purposes, and thus, KMI (and not its stockholders) is subject to U.S. federal income tax on its taxable income. A distribution of cash by KMI to a stockholder who is a U.S. holder will generally be included in such U.S. holder's income as ordinary dividend income to the extent of KMI's current and accumulated "earnings and profits," as determined under U.S. federal income tax principles. A

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portion of the cash distributed to KMI shareholders by KMI after the merger may exceed KMI's current and accumulated earnings and profits. Cash distributions in excess of KMI's current and accumulated earnings and profits will be treated as a non-taxable return of capital, reducing a U.S. holder's adjusted tax basis in such stockholder's shares of KMI common stock and, to the extent the cash distribution exceeds such stockholder's adjusted tax basis, as gain from the sale or exchange of such shares of KMI common stock.

        Please read "Material U.S. Federal Income Tax Consequences" for a more complete discussion of certain U.S. federal income tax consequences of owning and disposing of KMI common stock.

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

        This proxy statement/prospectus and the documents incorporated herein by reference contain forward-looking statements. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts. They use words such as "anticipate," "believe," "intend," "plan," "projection," "forecast," "strategy," "position," "continue," "estimate," "expect," "may," or the negative of those terms or other variations of them or comparable terminology. In particular, statements, express or implied, concerning future actions, conditions or events, future operating results, the ability to generate sales, income or cash flow, to realize cost savings or other benefits associated with the EPB merger, to service debt or to pay dividends involve risks, uncertainties and assumptions. Future actions, conditions or events and future results of operations may differ materially from those expressed in these forward-looking statements. Many of the factors that will determine actual results are beyond the ability of KMI or EPB to control or predict. Specific factors which could cause actual results to differ from those in the forward-looking statements include:

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        Forward-looking statements are based on the expectations and beliefs of management, based on information currently available, concerning future events affecting KMI. Although KMI believes that these forward-looking statements are based on reasonable assumptions, they are subject to uncertainties and factors related to KMI's operations and business environment, all of which are difficult to predict and many of which are beyond KMI's control. Any or all of the forward-looking statements in this proxy statement/prospectus may turn out to be wrong. They may be affected by inaccurate assumptions or by known or unknown risks and uncertainties. The foregoing list of factors should not be construed to be exhaustive. Many factors mentioned in this proxy statement/prospectus, including the risks outlined under the caption "Risk Factors" contained in KMI's and EPB's Exchange Act reports incorporated herein by reference, will be important in determining future results after the Transactions,

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and actual future results may vary materially. There is no assurance that the actions, events or results of the forward-looking statements will occur, or, if any of them do, when they will occur or what effect they will have on KMI's results of operations, financial condition, cash flows or dividends. In view of these uncertainties, KMI and EPB caution that investors should not place undue reliance on any forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, KMI and EPB undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.

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THE PARTIES TO THE MERGER

KMI

        KMI is a Delaware corporation with its common stock traded on the NYSE under the symbol "KMI." KMI owns the general partner interests of, and significant limited partner interests in, KMP and EPB, and significant limited liability company interests in KMR, including all of voting shares, which are not publicly traded.

        The executive offices of KMI are located at 1001 Louisiana Street, Suite 1000, Houston, Texas 77002, and the telephone number is (713) 369-9000.


EPB

        EPB is a Delaware limited partnership formed in 2007 with its common units traded on the NYSE under the symbol "EPB." EPB owns and operates natural gas transportation pipelines, storage and other midstream assets. KMI indirectly owns all of the membership interests in EPGP, EPB's general partner.

        The executive offices of EPB and EPGP are located at 1001 Louisiana Street, Suite 1000, Houston, Texas 77002, and the telephone number is (713) 369-9000.


E Merger Sub

        E Merger Sub is a Delaware limited liability company and a wholly owned subsidiary of KMI that was formed solely in contemplation of the EPB merger, has not commenced any operations, has only nominal assets and has no liabilities or contingent liabilities, nor any outstanding commitments other than as set forth in the EPB merger agreement. E Merger Sub has not incurred any obligations, engaged in any business activities or entered into any agreements or arrangements with any third parties other than the EPB merger agreement.

        The executive offices of E Merger Sub are located at 1001 Louisiana Street, Suite 1000, Houston, Texas 77002, and the telephone number is (713) 369-9000.

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THE EPB SPECIAL MEETING

        We are providing this proxy statement/prospectus to the EPB unitholders in connection with the solicitation of proxies to be voted at the special meeting of EPB unitholders that we have called for the purposes described below. This proxy statement/prospectus constitutes a prospectus for KMI in connection with the issuance by KMI of KMI common stock in connection with the EPB merger. This proxy statement/prospectus is first being mailed to EPB unitholders on or about October 22, 2014 and provides EPB unitholders with the information they need to know about the Transactions and the proposals to be able to vote or instruct their vote to be cast at the special meeting.


Date, Time and Place

        The special meeting will be held at the Kinder Morgan Building, 1001 Louisiana Street, Houston, Texas 77002 on Thursday, November 20, 2014 at 10:00 a.m., local time.


Purpose

        At the EPB special meeting, you will be asked to vote solely on the following proposals:


EPGP Conflicts Committee and EPGP Board Recommendation

        The EPGP conflicts committee and the EPGP board each recommend that you vote:

        The EPGP conflicts committee and the EPGP board each (i) determined that the EPB merger is fair and reasonable to, and in the best interests of, EPB, after determining that the EPB merger is fair and reasonable to, and in the best interests of the unaffiliated EPB unitholders, (ii) approved the EPB merger and the EPB merger agreement and (iii) resolved to recommend approval of the EPB merger agreement to the EPB unitholders. See "Special Factors—Recommendation of the EPGP Conflicts Committee and the EPGP Board and Their Reasons for the EPB Merger."

        In considering the recommendations of the EPGP conflicts committee and the EPGP board with respect to the EPB merger agreement and the transactions contemplated thereby, you should be aware that some of EPGP's directors and executive officers may have interests that are different from, or in addition to, the interests of EPB unitholders more generally. See "Special Factors—Interests of Certain Persons in the Transactions."


Record Date; Outstanding Units; Units Entitled to Vote

        The record date for the special meeting is October 20, 2014. Only EPB unitholders of record at the close of business on the record date will be entitled to receive notice of and to vote at the special meeting or any adjournment or postponement of the meeting.

        As of the close of business on the record date, there were 233,151,329 EPB common units and no EPB Class B units outstanding and entitled to vote at the EPB special meeting. Each holder of EPB common units is entitled to one vote for each unit owned as of the record date.

        A complete list of EPB unitholders entitled to vote at the special meeting will be available for inspection at our principal place of business during regular business hours for a period of no less than ten days before the special meeting and at the place of the special meeting during the meeting.

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Quorum

        A quorum of EPB unitholders is required to approve the EPB merger agreement at the EPB special meeting, but not to approve any adjournment of the meeting. A majority of the outstanding EPB common units must be represented in person or by proxy at the meeting in order to constitute a quorum. Any abstentions will be counted as present in determining whether a quorum is present at the special meeting.


Required Vote

        To approve the EPB merger agreement, holders of a majority of the outstanding EPB common units must vote in favor of approval of the EPB merger agreement. Because approval is based on the affirmative vote of a majority of the outstanding EPB common units, an EPB unitholder's failure to submit a proxy or to vote in person at the special meeting or an abstention from voting, or the failure of an EPB unitholder who holds his or her units in "street name" through a bank, broker, nominee, trust company or other fiduciary to give voting instructions to such bank, broker, nominee, trust company or other fiduciary, will have the same effect as a vote against approval of the EPB merger agreement.

        If submitted to a vote of EPB unitholders, the EPB adjournment proposal requires (a) if a quorum does not exist, the affirmative vote of the holders of a majority of the EPB common units present in person or by proxy at the special meeting or (b) if a quorum does exist, the affirmative vote of a majority of the outstanding EPB common units. Abstentions will have the same effect as a vote against the EPB adjournment proposal. Unvoted units and units not in attendance at the special meeting will have no effect on the outcome of any vote to adjourn the EPB special meeting. If a quorum is not present, abstentions would have the same effect as a vote against the EPB adjournment proposal.


Unit Ownership of and Voting by KMI and EPGP's Directors and Executive Officers

        At the close of business on the record date for the special meeting, KMI and its subsidiaries held, in the aggregate, EPB common units representing approximately 40.1% of the outstanding units of EPB, and the directors and executive officers of EPB held, in the aggregate, EPB common units representing approximately 0.1% of the outstanding units of EPB. KMI has agreed in the EPB merger agreement that, subject to limited exceptions, it and its subsidiaries would vote their EPB common units FOR the EPB merger agreement proposal, and we believe KMI and its subsidiaries intend to vote their EPB common units FOR the EPB adjournment proposal. We believe the EPGP directors and executive officers intend to vote all of such units they are entitled to vote FOR the EPB merger agreement proposal and FOR the EPB adjournment proposal.

        Accordingly, we believe approximately 40.2% of the outstanding EPB units will be voted in favor of the EPB merger agreement proposal and the EPB adjournment proposal by virtue of KMI's and its subsidiaries' and affiliates' ownership of EPB units.


Voting of Units by Holders of Record

        If you are entitled to vote at the EPB special meeting and hold your EPB common units in your own name, you can submit a proxy or vote in person by completing a ballot at the special meeting. However, we encourage you to submit a proxy before the EPB special meeting even if you plan to attend the special meeting in order to ensure that your units are voted. A proxy is a legal designation of another person to vote your EPB common units on your behalf in the manner you instruct. If you hold units in your own name, you may submit a proxy for your units by:

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        When you submit a proxy by telephone or through the Internet, your proxy is recorded immediately. We encourage you to submit your proxy using these methods whenever possible. If you submit a proxy by telephone or the Internet website, please do not return your proxy card by mail.

        All EPB common units represented by each properly executed and valid proxy received before the EPB special meeting will be voted in accordance with the instructions given on the proxy. If a unitholder executes a proxy card without giving instructions, the EPB common units represented by that proxy card will be voted FOR approval of the proposal to approve the EPB merger agreement and FOR approval of the EPB adjournment proposal.

        Your vote is important. Accordingly, please submit your proxy by telephone, through the Internet or by mail, whether or not you plan to attend the meeting in person. Proxies must be received by 11:59 p.m., Eastern Time, on Wednesday, November 19, 2014.


Voting of Units Held in Street Name

        If your EPB common units are held in an account at a bank, broker, nominee, trust company or other fiduciary, you must instruct the bank, broker, nominee, trust company or other fiduciary on how to vote your units by following the instructions that the bank, broker, nominee, trust company or other fiduciary provides to you with these proxy materials. Most banks, brokers, nominees, trust companies and other fiduciaries offer the ability for unitholders to submit voting instructions by mail by completing a voting instruction card, by telephone and via the Internet.

        If you hold your EPB common units in a brokerage account and you do not provide voting instructions to your broker, your units will not be voted on any proposal, as under the current rules of the NYSE, brokers do not have discretionary authority to vote on the proposal to approve the EPB merger agreement or the EPB adjournment proposal. Since there are no items on the agenda which your broker has discretionary authority to vote upon, there will be no broker non-votes present at the EPB special meeting.

        If you hold EPB common units through a bank, broker, nominee, trust company or other fiduciary and wish to vote your units in person at the special meeting, you must obtain a legal proxy from your bank, broker, nominee, trust company or other fiduciary and present it to the inspector of election with your ballot when you vote at the EPB special meeting.


Revocability of Proxies; Changing Your Vote

        You may revoke your proxy and/or change your vote at any time before your proxy is voted at the EPB special meeting. If you are a unitholder of record, you can do this by:

        If you choose to revoke your proxy by written notice or submit a later-dated proxy, you must do so by 11:59 p.m., Eastern Time, on the day before the EPB special meeting.

        If you hold your EPB common units through a bank, broker, nominee, trust company or other fiduciary, you must follow the directions you receive from your bank, broker, nominee, trust company or other fiduciary in order to revoke or change your vote.

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Solicitation of Proxies

        We will bear all costs and expenses in connection with the solicitation of proxies from EPB unitholders. We have engaged D.F. King & Co., Inc. to assist in the solicitation of proxies for the EPB special meeting and estimate that KMI, KMP, KMR and EPB will pay D.F. King & Co., Inc. an aggregate base fee of approximately $60,000 for its services in connection with the Transactions. We also have agreed to reimburse D.F. King & Co., Inc. for reasonable out-of-pocket expenses and disbursements incurred in connection with the proxy solicitation, such as phone calls with our unitholders. These expenses and disbursements could be substantial. KMI has agreed to indemnify D.F. King & Co., Inc. against certain losses, costs and expenses. In addition, we will reimburse brokerage firms and other persons representing beneficial owners of common units for their reasonable expenses in forwarding solicitation materials to such beneficial owners. Proxies also may be solicited by certain of our directors, officers and employees by telephone, electronic mail, letter, facsimile or in person, but no additional compensation will be paid to them.

Unitholders should not send unit certificates with their proxies.    The election form, which will be mailed to EPB unitholders prior to the closing of the EPB merger, and the letter of transmittal, which will be mailed to EPB unitholders shortly after the closing of the EPB merger, will contain instructions for the surrender of EPB common unit certificates.


No Other Business

        Under the EPB partnership agreement, the business to be conducted at the EPB special meeting will be limited to the purposes stated in the notice of the special meeting to EPB unitholders provided with this proxy statement/prospectus.


Adjournments

        Adjournments may be made for the purpose of, among other things, soliciting additional proxies. Pursuant to the terms of the EPB partnership agreement, EPGP may adjourn the special meeting without limited partner action and any adjournment may be made by the chairman of the meeting designated by EPGP or with the approval of the limited partners. If submitted to a vote of EPB limited partners, the EPB adjournment proposal requires (a) if a quorum does not exist, the affirmative vote of the holders of a majority of the EPB common units present in person or by proxy at the special meeting or (b) if a quorum does exist, the affirmative vote of a majority of the outstanding EPB common units. We are not required to notify EPB unitholders of any adjournment of 45 days or less if the time and place of the adjourned meeting are announced at the meeting at which the adjournment is taken, unless after the adjournment a new record date is fixed for the adjourned meeting. At any adjourned meeting, we may transact any business that we might have transacted at the original meeting, provided that a quorum is present at such adjourned meeting. Proxies submitted by EPB unitholders for use at the EPB special meeting will be used at any adjournment or postponement of the meeting. References to the EPB special meeting in this proxy statement/prospectus are to such special meeting as adjourned or postponed.


Attending the Special Meeting

        All EPB unitholders as of the close of business on the record date, or their duly appointed proxies, may attend the EPB special meeting. Seating, however, is limited. Admission to the EPB special meeting will be on a first-come, first-served basis. Registration will begin at 9:00 a.m. local time, and seating will begin at 9:45 a.m. local time. Cameras, recording devices and other electronic devices will not be permitted at the special meeting.

        EPB unitholders and proxies will be asked to present valid picture identification, such as a driver's license or passport. Please note that if you hold your EPB common units in street name, you will also need to bring a copy of the voting instruction card that you receive from your bank, broker, nominee, trust company or other fiduciary in connection with the EPB special meeting or a brokerage statement

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reflecting your EPB common unit ownership as of the close of business on the record date and check in at the registration desk at the EPB special meeting.


Assistance

        If you need assistance in completing your proxy card or have questions regarding the EPB special meeting, please contact D.F. King & Co., Inc. toll-free at (800) 317-8006 (banks and brokers call collect at (212) 269-5550) or by email at epb@dfking.com.

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PROPOSAL 1: THE MERGER AGREEMENT

        The following describes the material provisions of the EPB merger agreement, which is attached as Annex A to this proxy statement/prospectus and incorporated by reference herein. The description in this section and elsewhere in this proxy statement/prospectus is qualified in its entirety by reference to the EPB merger agreement. This summary does not purport to be complete and may not contain all of the information about the EPB merger agreement that is important to you. KMI and EPB encourage you to read carefully the EPB merger agreement in its entirety before making any decisions regarding the EPB merger as it is the legal document governing the EPB merger.

        The EPB merger agreement and this summary of its terms have been included to provide you with information regarding the terms of the EPB merger agreement. Factual disclosures about KMI, EPB, EPGP or any of their respective subsidiaries or affiliates contained in this proxy statement/prospectus or their respective public reports filed with the SEC may supplement, update or modify the factual disclosures about KMI, EPB, EPGP or their respective subsidiaries or affiliates contained in the EPB merger agreement and described in this summary. The representations, warranties and covenants made in the EPB merger agreement by KMI, EPB, EPGP and E Merger Sub were qualified and subject to important limitations agreed to by KMI, EPB, EPGP and E Merger Sub in connection with negotiating the terms of the EPB merger agreement. In particular, in your review of the representations and warranties contained in the EPB merger agreement and described in this summary, it is important to bear in mind that the representations and warranties were negotiated with the principal purpose of allocating risk between the parties to the EPB merger agreement, rather than establishing matters as facts. The representations and warranties also may be subject to a contractual standard of materiality different from those generally applicable to EPB unitholders and reports and documents filed with the SEC and in some cases were qualified by confidential disclosures that were made by each party to the other, which disclosures are not reflected in the EPB merger agreement or otherwise publicly disclosed. Moreover, information concerning the subject matter of the representations and warranties, which do not purport to be accurate as of the date of this proxy statement/prospectus, may have changed since the date of the EPB merger agreement and subsequent developments or new information qualifying a representation or warranty may have been included in this proxy statement/prospectus. For the foregoing reasons, the representations, warranties and covenants or any descriptions of those provisions should not be read alone, but instead should be read only in conjunction with the information provided elsewhere in this proxy statement/prospectus and in the documents incorporated by reference into this proxy statement/prospectus.


The EPB Merger

        Subject to the terms and conditions of the EPB merger agreement and in accordance with Delaware law, at the effective time of the EPB merger, KMI will acquire all of the publicly held EPB common units by E Merger Sub, a wholly owned subsidiary of KMI, merging with and into EPB, with EPB as the surviving entity.


Effective Time; Closing

        The effective time of the EPB merger will occur at such time as EPB and KMI cause a certificate of merger to be duly filed with the Secretary of State of the State of Delaware or at such later date or time as may be agreed by EPB and KMI in writing and specified in the certificate of merger.

        The closing of the EPB merger will take place on the second business day after the satisfaction or waiver of the conditions set forth in the EPB merger agreement (other than conditions that by their nature are to be satisfied at the closing but subject to the satisfaction of those conditions), or at such other place, date and time as KMI and EPB shall agree. Each of the EPB merger, the KMP merger and the KMR merger shall be consummated substantially concurrently on the same date such that the KMR merger shall be consummated first, followed by the KMP merger and then the EPB merger.

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Subject to certain exceptions, EPB and KMI each have the right to terminate the EPB merger agreement if the closing of the EPB merger does not occur on or prior to May 11, 2015.

        KMI and EPB currently expect to complete the EPB merger by the fourth quarter of 2014 subject to receipt of required equityholder and regulatory approvals and the satisfaction or waiver of the other conditions to the EPB merger described below.


Conditions to Completion of the Merger

        KMI and EPB may not complete the EPB merger unless each of the following conditions is satisfied or waived:

        The obligations of KMI and E Merger Sub to effect the EPB merger are subject to the satisfaction or waiver of the following additional conditions:

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        The obligation of EPB to effect the EPB merger is subject to the satisfaction or waiver of the following additional conditions:

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        For purposes of the EPB merger agreement, the term "material adverse effect" means, when used with respect to person, any change, effect, event or occurrence that, individually or in the aggregate, has had or would reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of such person and its subsidiaries, taken as a whole; provided, however, that any adverse changes, effects, events or occurrences resulting from or due to any of the following shall be disregarded in determining whether there has been a "material adverse effect": (i) changes, effects, events or occurrences generally affecting the United States or global economy, the financial, credit, debt, securities or other capital markets or political, legislative or regulatory conditions or changes in the industries in which such person operates; (ii) the announcement or pendency of the EPB merger agreement or the transactions contemplated by the EPB merger agreement or, except specifically for purposes of the representations and warranties made by EPB and EPGP with respect to no conflicts or by KMI and E Merger Sub with respect to no conflicts and the satisfaction of the closing conditions set forth in the EPB merger agreement (and described above under "—Conditions to Completion of the Merger") with respect to such representations and warranties, the performance of the EPB merger agreement; (iii) any change in the market price or trading volume of the limited liability company units, limited partnership interests, shares of common stock or other equity securities of such person (it being understood and agreed that the foregoing shall not preclude any other party to the EPB merger agreement from asserting that any facts or occurrences giving rise to or contributing to such change that are not otherwise excluded from the definition of "material adverse effect" should be deemed to constitute, or be taken into account in determining whether there has been, or would reasonably be expected to be, a "material adverse effect"); (iv) acts of war, terrorism or other hostilities (or the escalation of the foregoing) or natural disasters or other force majeure events; (v) changes in any laws or regulations applicable to such person or applicable accounting regulations or principles or the interpretation thereof; (vi) any legal proceedings commenced or threatened by or involving any current or former member, partner or stockholder of such person or any of its subsidiaries (or in the case of KMI, EPB) (on their own or on behalf of such person or any of its subsidiaries or in the case of KMI, EPB) arising out of or related to the EPB merger agreement or the transactions contemplated thereby; (vii) changes, effects, events or occurrences generally affecting the prices of oil, gas, natural gas, natural gas liquids or other commodities; (viii) any failure of a person to meet any internal or external projections, forecasts or estimates of revenues, earnings or other financial or operating metrics for any period (it being understood and agreed that the foregoing shall not preclude any other party to the EPB merger agreement from asserting that any facts or occurrences giving rise to or contributing to such failure that are not otherwise excluded from the definition of "material adverse effect" should be deemed to constitute, or be taken into account in determining whether there has been, or would reasonably be expected to be, a "material adverse effect"); and (ix) the taking of any action required by EPB merger agreement; provided, however, that changes, effects, events or occurrences referred to in clauses (i), (iv), (v) and (vii) above shall be considered for purposes of determining whether there has been or would reasonably be expected to be a "material adverse effect" if and to the extent such changes, effects, events or occurrences have had or would reasonably be expected to have a disproportionate adverse effect on such person and its subsidiaries, taken as a whole, as compared to other companies of similar size operating in the industries in which such person and its subsidiaries operate.


EPGP Recommendation and EPB Adverse Recommendation Change

        The EPGP conflicts committee unanimously determined that the EPB merger is fair and reasonable to, and in the best interests of, EPB, after determining that the EPB merger is fair and reasonable to, and in the best interests of, the unaffiliated EPB unitholders, approved, and recommended that the EPGP board approve, the EPB merger agreement, the execution, delivery and

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performance of the EPB merger agreement and the transactions contemplated thereby and submit the EPB merger agreement to a vote of the EPB unitholders and resolved to recommend approval of the EPB merger agreement by the EPB unitholders.

        The EPGP board (acting based upon the recommendation of the EPGP conflicts committee) unanimously determined that the EPB merger is fair and reasonable to, and in the best interests of, EPB, after determining that the EPB merger is fair and reasonable to, and in the best interests of, the unaffiliated EPB unitholders, approved the EPB merger agreement and the execution, delivery and performance of the EPB merger agreement and the transactions contemplated thereby and resolved to submit the EPB merger agreement to a vote of the EPB unitholders and recommend approval of the EPB merger agreement by the EPB unitholders.

        The EPB merger agreement provides that EPB and EPGP will not, and will cause their respective subsidiaries and use their commercially reasonable best efforts to cause their respective representatives not to, directly or indirectly:

        EPB and EPGP taking any of the actions described above is referred to as an "EPB adverse recommendation change."

        Notwithstanding the terms above or any other term in the EPB merger agreement to the contrary, the EPGP conflicts committee and the EPGP board, as applicable, may, at any time prior to obtaining the approval of the EPB merger agreement and the transactions contemplated thereby by the EPB unitholders, if the EPGP board or the EPGP conflicts committee, as applicable, determines in good faith (after consultation with its financial advisor and outside legal counsel) that the failure to take such action would be inconsistent with the best interests of EPB; provided that, neither the EPGP conflicts committee nor the EPGP board may effect an EPB adverse recommendation change pursuant to the foregoing unless:

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        Any EPB adverse recommendation change made by the EPGP conflicts committee invalidates and rescinds any prior "Special Approval" of the EPB merger agreement and the EPB merger.

        For purposes of the EPB merger agreement, the term "alternative proposal", with respect to EPB, means any inquiry, proposal or offer from any person or "group" (as defined in Section 13(d) of the Exchange Act), other than KMI and its subsidiaries, relating to any (i) direct or indirect acquisition (whether in a single transaction or a series of related transactions), outside of the ordinary course of business, of assets of EPB and its subsidiaries (including securities of subsidiaries) equal to 25% or more of EPB's consolidated assets or to which 25% or more of EPB's revenues or earnings on a consolidated basis are attributable, (ii) direct or indirect acquisition (whether in a single transaction or a series of related transactions) of beneficial ownership (within the meaning of Section 13 under the Exchange Act) of 25% or more of any outstanding class of equity securities of EPB, (iii) tender offer or exchange offer that if consummated would result in any person or "group" (as defined in Section 13(d) of the Exchange Act) beneficially owning 25% or more of the outstanding EPB common units or (iv) merger, consolidation, unit exchange, share exchange, business combination, recapitalization, liquidation, dissolution or similar transaction involving EPB which is structured to permit such person or group to acquire beneficial ownership of at least 25% of EPB's consolidated assets or outstanding EPB common units; in each case, other than the transactions contemplated by the EPB merger agreement.


EPB Unitholder Approval

        EPB has agreed to hold a special meeting of the EPB unitholders as soon as practicable for purposes of obtaining the approval by the EPB unitholders of the EPB merger agreement. For further discussion on the vote required by the EPB unitholders to approve the EPB merger agreement, see "The EPB Special Meeting."

        The EPB merger agreement requires EPB to submit the EPB merger agreement to the EPB unitholders for approval at a special meeting: (i) even if the EPGP conflicts committee or the EPB board no longer recommends approval or adoption of the EPB merger agreement; and (ii) irrespective of the commencement, public proposal, public disclosure or communication to EPB, or any public recommendation or approval by the EPGP conflicts committee, of any alternative proposal (as described above).


KMI Recommendation and KMI Adverse Recommendation Change

        The KMI board of directors determined that the EPB merger agreement and the transactions contemplated thereby (including the KMP merger and the KMR merger) are in the best interests of KMI and its stockholders, approved and declared advisable the EPB merger agreement, the KMP merger agreement, the KMR merger agreement, the stock issuance proposal and the charter amendment proposal and resolved to submit the charter amendment proposal and the stock issuance proposal to a vote of the KMI stockholders and recommend adoption thereof.

        The EPB merger agreement provides that KMI, through its board of directors, shall not withdraw, modify or qualify, or propose publicly to withdraw, modify or qualify, in a manner adverse to EPB, its recommendation to its stockholders to approve and adopt the charter amendment proposal and the stock issuance proposal. KMI taking any of the actions described in the foregoing sentence is referred to as a "KMI adverse recommendation change."

        Notwithstanding the terms above or any other term in the EPB merger agreement to the contrary, subject to compliance with the EPB merger agreement, KMI's board of directors may, if it determines

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in good faith (after consultation with KMI's financial advisors and outside legal counsel) that the failure to take such action would be inconsistent with its fiduciary duties to stockholders under applicable law, make a KMI adverse recommendation change; provided, however, that KMI's board of directors may not effect a KMI adverse recommendation change pursuant to the foregoing unless:


KMI Stockholder Approval

        KMI has agreed to hold a meeting of its stockholders as soon as is practicable for the purpose of obtaining stockholder approval of the stock issuance proposal and charter amendment proposal. The EPB merger agreement requires KMI to submit the stock issuance proposal and charter amendment proposal to a stockholder vote even if the KMI board no longer recommends approval of the stock issuance proposal and charter amendment proposal. The KMI board approved the EPB merger agreement and the transactions contemplated thereby and directed that the stock issuance proposal and charter amendment proposal be submitted to KMI stockholders for their consideration.


No Solicitation by EPB

        The EPB merger agreement contains detailed provisions prohibiting EPGP and EPB from seeking an alternative proposal to the EPB merger. Under these "no solicitation" provisions, EPGP and EPB have agreed that they will not, and will cause their respective subsidiaries and use commercially reasonable best efforts to cause their respective directors, officers, employees, investment bankers, financial advisors, attorneys, accountants, agents and other representatives (collectively, their "representatives") not to, directly or indirectly, except as permitted by the EPB merger agreement:

        EPGP and EPB have agreed that they will, and will cause their respective subsidiaries and use commercially reasonable best efforts to cause their respective representatives to, cease and cause to be terminated any discussions or negotiations with any persons conducted prior to the execution of the EPB merger agreement with respect to an alternative proposal and immediately terminate any access by any person (other than KMI and its representatives) to confidential information relating to a possible alternative proposal.

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        Following the date of the EPB merger agreement but prior to obtaining the approval of EPB's unitholders of the EPB merger agreement, if EPB has received a written alternative proposal that the EPGP board believes is bona fide and the EPGP board, after consultation with its financial advisors and outside legal counsel, determines in good faith that such alternative proposal constitutes or could reasonably be expected to lead to or result in a superior proposal (as described below) and such alternative proposal does not result from a material breach of the non-solicitation provisions in the EPB merger agreement, then the EPB merger agreement permits EPGP and EPB to furnish information with respect to EPB and its subsidiaries to any third party making such alternative proposal and participate in discussions or negotiations regarding such alternative proposal; provided, that (i) EPB and EPGP and their respective subsidiaries will not, and will use reasonable best efforts to cause their respective representatives not to, disclose any non-public information to such person unless EPB has, or first enters into, a confidentiality agreement with such person with confidentiality provisions that are not less restrictive in the aggregate to such person than the provisions of the confidentiality agreement between KMI and EPB are to KMI and (ii) EPB and EPGP provide KMI any non-public information that was not previously provided or made available to KMI prior to or substantially concurrently with providing or making available such non-public information to such other person.

        EPB and EPGP also have agreed in the EPB merger agreement that they will (i) promptly advise KMI, orally and in writing, and in any event within 24 hours after receipt, if any proposal offer or inquiry is received by, any information is requested (other than requests for information in the ordinary course of business) from, or any discussions or negotiations are sought to be initiated with them in respect of any alternative proposal, and indicate the identity of the person making any such alternative proposal, offer or inquiry and (ii) provide KMI the terms and conditions of any such alternative proposal, request or inquiry (including providing KMI with copies of any written materials received from or on behalf of such person making such proposal, offer or inquiry). In addition, EPB and EPGP have agreed to promptly keep KMI reasonably informed of all material developments affecting the status and terms of any such proposals, offers, inquiries or requests (and promptly, in any event within 24 hours, provide KMI with copies of any additional written materials received by EPB or EPGP or that EPB or EPGP has delivered to any third party making an alternative proposal that relate to such proposals, offers, inquiries or requests) and the status of any such discussions or negotiations.

        The EPB merger agreement permits EPB, the EPGP conflicts committee and the EPGP board to comply with Rule 14d-9 and Rule 14e-2(a) under the Exchange Act if the EPGP conflicts committee determines in good faith (after consultation with outside legal counsel) that the failure to do so would be inconsistent with the best interests of EPB or any applicable law.

        For purposes of the EPB merger agreement, a "superior proposal" means a bona fide written offer, obtained after the date of the EPB merger agreement and not in material breach of the EPB merger agreement, to acquire, directly or indirectly, more than 50% of the outstanding equity securities of EPB or assets of EPB and its subsidiaries on a consolidated basis, made by a third party, which is on terms and conditions which the EPGP board determines in its good faith to be more favorable to EPB than the transactions contemplated by the EPB merger agreement, taking into account all financial, legal, financing, regulatory and other aspects of such offer and any changes to the terms of the EPB merger agreement that as of the time of determination had been committed to by KMI in writing.


Merger Consideration

        At the effective time of the EPB merger, each common unit issued and outstanding (excluding EPB common units owned by EPGP or KMI or any of its subsidiaries, which shall remain outstanding) will be converted into the right to receive, at the election of the holder, one of the following:

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        Any election by a holder to receive the cash consideration or the stock consideration will be subject to proration to ensure that the aggregate amount of cash paid and the aggregate number of shares of KMI common stock issued in the EPB merger is the same as would be paid and issued if each EPB common unit had been converted into the right to receive the mixed consideration. See "Special Factors—EPB Unitholders Making Elections—Proration and Adjustment Procedures" for more information on the proration and adjustment procedures.

        KMI will not issue any fractional shares of KMI common stock in the EPB merger. Instead, each holder of EPB common units who otherwise would have received a fractional share of KMI common stock will be entitled to receive, from the exchange agent appointed by KMI pursuant to the EPB merger agreement, a cash payment, without interest, in lieu of such fractional shares representing such holder's proportionate interest, if any, in the proceeds from the sale by the exchange agent (reduced by reasonable and customary fees of the exchange agent attributable to such sale) in one or more transactions of a number of shares of KMI common stock equal to the aggregate amount of fractional shares of KMI common stock otherwise issuable.


Treatment of EPB Restricted Units

        Each EPB common unit subject to forfeiture or restricted unit granted under the EPGP Long-Term Incentive Plan that is outstanding immediately prior to the effective time will be automatically and without any action on the part of the holder thereof, vest in full and the restrictions with respect thereto shall lapse, and each restricted unit shall be treated as an issued and outstanding EPB common unit as of immediately prior to the effective time. At the effective time, the EPGP Long-Term Incentive Plan will be terminated and no longer in effect.


Adjustments to Prevent Dilution

        The merger consideration described above under "—Merger Consideration" will be appropriately adjusted to reflect fully the effect of any unit or share dividend, subdivision, reclassification, recapitalization, split, split-up, unit or share distribution, combination, exchange of units or shares or similar transaction with respect to the number of outstanding EPB common units or shares of KMI common stock prior to the effective time of the EPB merger to provide the holders of EPB common units the same economic effect as contemplated by the EPB merger agreement prior to such event.


Withholding

        KMI, E Merger Sub, the surviving entity and the exchange agent will be entitled to deduct and withhold from the consideration otherwise payable pursuant to the EPB merger agreement such amounts, if any, as are required to be deducted and withheld with respect to the making of such payment under applicable tax law. To the extent amounts are so withheld, such withheld amounts will be treated as having been paid to the former holder of EPB common units in respect of whom such withholding was made.


Dividends and Distributions

        No dividends or other distributions with respect to shares of KMI common stock issued in the EPB merger shall be paid to the holder of any surrendered certificates or book-entry units until such certificates or book-entry units are surrendered. Following such surrender, subject to the effect of escheat, tax or other applicable law, there shall be paid, without interest, to the record holder of the shares of KMI common stock, if any, issued in exchange therefor (i) at the time of such surrender, all

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dividends and other distributions payable in respect of any such shares of KMI common stock with a record date after the effective time of the EPB merger and a payment date on or prior to the date of such surrender and not previously paid and (ii) at the appropriate payment date, the dividends or other distributions payable with respect to such shares of KMI common stock with a record date after the effective time of the EPB merger but with a payment date subsequent to such surrender. For purposes of dividends or other distributions in respect of shares of KMI common stock, all shares of KMI common stock to be issued pursuant to the EPB merger shall be entitled to dividends as if issued and outstanding as of the effective time of the EPB merger.


Financing Covenant

        EPB has agreed to, and to cause each of its subsidiaries and use reasonable best efforts to cause its and their representatives to, use reasonable best efforts to provide cooperation as reasonably requested by KMI, at KMI's sole expense, to assist KMI in the arrangement of any bank debt financing or any capital markets debt financing, any repayment or refinancing of debt contemplated in connection with the EPB merger and the other transactions contemplated by the EPB merger agreement and any other amounts required to be paid in connection with the consummation of the EPB merger. KMI has agreed to indemnify and hold harmless EPGP, EPB and their respective subsidiaries from and against any and all losses or damages actually suffered or incurred by them directly in connection with the arrangement of any such bank debt financing or any capital markets debt financing.


Filings

        Pursuant to the EPB merger agreement, KMI, on the one hand, and EPB and EPGP, on the other hand, have agreed to cooperate and use, and to cause their respective subsidiaries to use (it being understood that with respect to KMP, its general partner and KMR and their respective subsidiaries, KMI's obligations shall only apply to the extent such obligation is appropriate under the organizational documents of KMP, its general partner and KMR and their respective subsidiaries) their respective reasonable best efforts to (i) prepare and file as promptly as practicable and advisable all documentation to effect all necessary filings, notifications, notices, petitions, statements, registrations, submissions of information, applications and other documents (including any required or recommended filings under applicable antitrust laws), (ii) obtain promptly (and in any event no later than May 11, 2015) all approvals, consents, clearances, expirations or terminations of waiting periods, registrations, permits, authorizations and other confirmations from any governmental authority or third party necessary, proper or advisable to consummate the transactions contemplated by the EPB merger agreement and (iii) defend any lawsuits or other legal proceedings, whether judicial or administrative, challenging the EPB merger agreement or the consummation of the transactions contemplated thereby.


Regulatory Matters

        Pursuant to the EPB merger agreement each party thereto has agreed to (i) make an appropriate filing of a Notification and Report Form pursuant to the HSR Act with respect to the transactions contemplated by the EPB merger agreement as promptly as practicable and advisable and in any event within 15 business days after the date of the EPB merger agreement (unless a later date is mutually agreed to by the parties thereto) and to supply as promptly as practicable and advisable any additional information and documentary material that may be requested by any governmental authority pursuant to the HSR Act or any other antitrust law and use its reasonable best efforts to take, or cause to be taken (including by their respective subsidiaries), all other actions consistent with the applicable provisions of the EPB merger agreement necessary to cause the expiration or termination of the applicable waiting periods under the HSR Act as soon as practicable (and in any event no later than May 11, 2015); and (ii) EPB, EPGP and KMI shall each use its reasonable best efforts to (x) take all action necessary to ensure that no state takeover statute or similar law is or becomes applicable to any

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of the transactions contemplated by the EPB merger agreement and (y) if any state takeover statute or similar law becomes applicable to any of the transactions contemplated by the EPB merger agreement, take all action necessary to ensure that such transaction may be consummated as promptly as practicable on the terms contemplated by the EPB merger agreement and otherwise minimize the effect of such law on such transaction.


Termination

        KMI and EPB may terminate the EPB merger agreement at any time prior to the effective time of the EPB merger by mutual written consent authorized by the KMI board and the EPGP conflicts committee.

        In addition, either KMI or EPB may terminate the EPB merger agreement at any time prior to the effective time of the EPB merger by written notice to the other party if:

        KMI also may terminate the EPB merger agreement if an EPB adverse recommendation change occurs or EPB or EPGP materially breaches or fails to perform any of its representations, warranties, covenants or agreements such that certain closing conditions would not be satisfied, or if such breach or failure is capable of being cured, such breach or failure has not been cured within 30 days following delivery of written notice by KMI and KMI is not then in any material breach.

        EPB also may terminate the EPB merger agreement if a KMI adverse recommendation change occurs or KMI materially breaches or fails to perform any of its representations, warranties, covenants or agreements such that certain closing conditions would not be satisfied, or if such breach or failure is capable of being cured, such breach or failure has not been cured within 30 days following delivery of written notice by EPB and neither of EPB or EPGP is then in any material breach.

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Expenses Relating to the Merger

        Generally, all fees and expenses incurred in connection with the EPB merger will be the obligation of the respective party incurring such fees and expenses. There is no termination fee payable by either KMI or EPB under any circumstance under the EPB merger agreement.


Conduct of Business Pending the Merger

        Under the EPB merger agreement, each of KMI and EPB has undertaken certain covenants that place restrictions on it and its respective subsidiaries from the date of the EPB merger agreement until the earlier of the termination of the EPB merger agreement in accordance with its terms and the effective time of the EPB merger, unless the other party gives its prior written consent (which consent cannot be unreasonably withheld, conditioned or delayed). In general, each of KMI, EPB and EPGP has agreed to, and to cause its respective subsidiaries to conduct its business in the ordinary course consistent with past practice.

        Subject to certain exceptions, unless KMI consents in writing (which consent cannot be unreasonably withheld, conditioned or delayed), EPB and EPGP have agreed not to take any action to cause:

        Subject to certain exceptions, unless EPB consents in writing (which consent cannot be unreasonably withheld, conditioned or delayed), KMI has agreed to not to, and will not permit its subsidiaries to:

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Indemnification; Directors' and Officers' Insurance

        The EPB merger agreement provides that, upon the effective time of the EPB merger, KMI will, to the fullest extent that any of EPB or EPGP or any applicable subsidiary thereof would be permitted, indemnify, defend and hold harmless, and provide advance and reimbursement of reasonable expenses to, all past and present directors and officers and employees of EPB or any of its subsidiaries or EPGP. In addition, KMI will maintain in effect for six years from the effective time of the EPB merger EPGP's current directors' and officers' liability insurance policies covering acts or omissions occurring at or prior to the effective time of the EPB merger with respect to such indemnified persons.


Coordination of the Transactions

        KMI and EPB have agreed to coordinate the consummation of the transactions contemplated by the EPB merger agreement so that the KMR merger agreement and the KMP merger agreement are consummated substantially concurrently in the manner and sequence set forth in the EPB merger agreement.


Notification of Certain Matters Regarding KMP Merger and KMR Merger

        KMI has agreed to give prompt notice to EPB and EPGP of (a) any fact, event or circumstance known to it that is reasonably likely to, individually or taken together with all other facts, events and circumstances known to it, (i) cause or result in any condition to the closing of either the KMP merger or the KMR merger to not be satisfied by the May 11, 2015, or (ii) materially delay or impede the consummation of either the KMP merger or the KMR merger or (b) any litigation or governmental complaints, investigations or hearings, in each case to the extent such change, litigation, complaints, investigations, or hearings materially delays or impedes, or would reasonably be expected to materially delay or impede, the consummation of either the KMP merger or the KMR merger.


EPGP Conflicts Committee

        KMI has agreed, until the effective time of the EPB merger or the termination of the EPB merger agreement, not to, without the consent of a majority of the EPGP conflicts committee, take any action (or allow its subsidiaries to take any action) to eliminate the EPGP conflicts committee, revoke or diminish the authority of the EPGP conflicts committee or remove or cause the removal of any director of the EPGP board that is a member of the EPGP conflicts committee either as a director or member of such committee.

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Voting

        KMI has agreed to vote or cause to be voted (i) all common units of EPB beneficially owned by KMI, its subsidiaries and controlled affiliates in favor of approval of the EPB merger unless there is an EPB adverse recommendation change, (ii) all voting securities beneficially owned by KMI, its subsidiaries and controlled affiliates in KMP in favor of the KMP merger and (iii) to the extent permitted, all voting securities beneficially owned by KMI, its subsidiaries and controlled affiliates in KMR in favor of the KMR merger.


Amendment and Supplement; Waiver and Consent

        At any time prior to the effective time of the EPB merger, (i) the EPB merger agreement may be amended or supplemented in any and all respects and (ii) any party to the EPB merger agreement may waive compliance by another party or grant any consent under the EPB merger agreement, whether before or after approval of the EPB merger agreement by the EPB unitholders or the approval of the stock issuance proposal and charter amendment proposal by the stockholders of KMI; provided, however, that the EPGP board may not take or authorize any such action unless it has referred such action to the EPGP conflicts committee for its consideration and permitted the EPGP conflicts committee not less than two business days to make a recommendation to the EPGP board with respect thereto (for the avoidance of doubt, the EPGP board shall in no way be obligated to follow the recommendation of the EPGP conflicts committee and the EPGP board shall be permitted to take action following the expiration of such two business day period); provided, further, that following receipt of the approval of the EPB merger agreement by the EPB unitholders or the approval of the stock issuance proposal and charter amendment proposal by the stockholders of KMI, (x) there shall be no amendment or change to the provisions of the EPB merger agreement which by law or stock exchange rule would require further approval by the EPB unitholders or the stockholders of KMI, as applicable, without such approval (y) and there shall be no waiver of compliance or grant of any consent by the EPGP board without the prior written consent of the EPGP conflicts committee. Unless otherwise expressly set forth in the EPB merger agreement, whenever a determination, decision, approval or consent of EPB or EPGP is required pursuant to the EPB merger agreement, such determination, decision, approval or consent must be authorized by the EPGP board; provided, however, that the EPGP board may not take or authorize any such action unless it has first referred such action to the EPGP conflicts committee for its consideration, and permitted the EPGP conflicts committee not less than two business days to make a recommendation to the EPGP board with respect thereto.


Amendments to the KMP Merger Agreement and the KMR Merger Agreement

        The EPB merger agreement provides that, at any time prior to the effective time, KMI may not, without the prior written consent of the EPGP board, amend, modify or terminate any provision of or grant any waiver or extension under the KMP merger agreement or the KMR merger agreement, in each case, in a manner which would prevent or materially impede or delay the ability of the parties to satisfy any of the conditions to, or the consummation of, the transactions set forth in the EPB merger agreement or have an adverse effect on the value of the merger consideration to be received by the unaffiliated EPB unitholders in the EPB merger; provided, however, that following approval of the EPB merger and the other transactions contemplated thereby by EPB unitholders or the stockholders of KMI, there shall be no amendment or change to the provisions of the KMP merger agreement or the KMR merger agreement which by law or stock exchange rule would require further approval by the EPB unitholders or the stockholders of KMI without such approval.

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Remedies; Specific Performance

        The EPB merger agreement provides that the parties are entitled to an injunction or injunctions to prevent breaches of the EPB merger agreement and to specifically enforce the provisions of the EPB merger agreement.


Representations and Warranties

        The EPB merger agreement contains representations and warranties by KMI, on the one hand, and EPB and EPGP, on the other hand. These representations and warranties have been made solely for the benefit of the other party to the EPB merger agreement and:

        Accordingly, these representations and warranties should not be read alone, but instead should be read only in conjunction with the information provided elsewhere in this proxy statement/prospectus and in the documents incorporated by reference into this proxy statement/prospectus, which may include information that updates, modifies or qualifies the information set forth in the representations and warranties.

        The representations and warranties made by both KMI, on the one hand, and EPB and EPGP, on the other hand relate to, among other things:

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        Additional representations and warranties made only by KMI to EPB relate to, among other things:


Additional Agreements

        The EPB merger agreement also contains covenants relating to cooperation in the preparation of this proxy statement/prospectus and additional agreements relating to, among other things, access to information, securityholder litigation and public announcements.

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THE SUPPORT AGREEMENT

        The following describes the material provisions of the support agreement, which is filed as an exhibit to the registration statement of which this proxy statement/prospectus forms a part and is incorporated by reference herein. The description in this section and elsewhere in this proxy statement/prospectus is qualified in its entirety by reference to the support agreement. This summary does not purport to be complete and may not contain all of the information about the support agreement that is important to you. We encourage you to read carefully the support agreement in its entirety before making any decisions regarding the proposals.

        The support agreement was entered into simultaneously with the execution of the KMP merger agreement, the KMR merger agreement and the EPB merger agreement on August 9, 2014. It is by and among KMP, KMR, KMGP, EPB, EPGB, Richard D. Kinder, Chairman and Chief Executive Officer of KMI, KMGP, KMR and EPB, and a limited partnership which he controls. In the aggregate, Mr. Kinder and the limited partnership hold shares of KMI common stock representing approximately 23.6% of the outstanding KMI common stock. Pursuant to the terms of the support agreement, Mr. Kinder and the limited partnership have agreed, among other things, to vote all of their shares of KMI common stock: (i) in favor of the charter amendment proposal, (ii) in favor of the stock issuance proposal, (iii) in favor of any proposal to adjourn or postpone the KMI stockholder meeting to a later date if there are not sufficient votes for the approval of the charter amendment proposal and the stock issuance proposal, (iv) in favor of any other matter necessary or desirable to the consummation of the Transactions and (v) against any action, agreement or transaction that is intended, or would reasonably be expected, to materially impede or delay the consummation of the Transactions.

        The support agreement generally prohibits Mr. Kinder or the limited partnership he controls from transferring any of the shares of KMI common stock they owned on the date of the support agreement prior to the earlier of the termination of the support agreement and the time that the requisite stockholder approvals have been obtained, except (i) to an immediate family member or upon his death, in the case of Mr. Kinder, or (ii) to a partner or an affiliated person under common control, in the case of the limited partnership. Any permitted transferee must agree in writing to be bound by the terms of the support agreement.

        The support agreement also prohibits Mr. Kinder and the limited partnership from, directly or indirectly, acquiring, agreeing to acquire or making any proposal or offer to acquire, beneficially or of record, any EPB common units or the right to direct the voting of any EPB common units, or any rights or options to acquire any EPB common units, prior to the EPB unitholder approval or the termination of the support agreement.

        The support agreement terminates upon the earlier to occur of (i) the date on which each of the KMP merger, the KMR merger and the EPB merger has been consummated, or the merger agreement with respect to any such merger that has not been consummated has been terminated in accordance with its respective terms and (ii) the KMI board changing its recommendation in favor of approval of the charter amendment proposal and the stock issuance proposal.

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MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES

        The following is a discussion of certain material U.S. federal income tax consequences to U.S. holders (as defined below) of the EPB merger and of owning and disposing of KMI common stock received in the EPB merger. This discussion is based upon current provisions of the Internal Revenue Code of 1986, as amended (the "Code"), existing and proposed Treasury regulations (the "Treasury Regulations") promulgated under the Code and current administrative rulings and court decisions, all of which are subject to change, possibly with retroactive effect. Changes in these authorities may cause the tax consequences to vary substantially from the consequences described below. No ruling has been or is expected to be sought from the Internal Revenue Service (the "IRS") with respect to any of the tax consequences discussed below. As a result, there can be no assurance that the IRS will not assert, or that a court would not sustain, a position contrary to any of the conclusions set forth below.

        This discussion is limited to U.S. holders of EPB common units that hold their EPB common units, and will hold their KMI common stock, if any, received in the EPB merger, as "capital assets" within the meaning of Section 1221 of the Code (generally, property held for investment). This discussion does not address any tax consequences arising under the unearned income Medicare contribution tax or the alternative minimum tax, nor does it address any tax consequences arising under the laws of any state, local or foreign jurisdiction, or under any U.S. federal laws other than those pertaining to income taxes. Furthermore, this discussion does not address all aspects of U.S. federal income taxation that may be applicable to U.S. holders in light of their particular circumstances or to U.S. holders subject to special treatment under U.S. federal income tax laws, including, without limitation:

        If a partnership, or an entity treated as a partnership for U.S. federal income tax purposes, holds EPB common units, the tax treatment of a partner in such partnership generally will depend on the status of the partner and the activities of the partnership. A partner in a partnership holding EPB common units should consult its own tax advisor.

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        For purposes of this discussion, the term "U.S. holder" means a beneficial owner of EPB common units or KMI common stock that is for U.S. federal income tax purposes:

        THIS DISCUSSION IS PROVIDED FOR GENERAL INFORMATION ONLY AND IS NOT A COMPLETE ANALYSIS OR DESCRIPTION OF ALL POTENTIAL U.S. FEDERAL INCOME TAX CONSEQUENCES OF THE EPB MERGER OR THE RECEIPT, OWNERSHIP AND DISPOSITION OF KMI COMMON STOCK, IF ANY, RECEIVED IN THE EPB MERGER. EACH HOLDER OF EPB COMMON UNITS IS STRONGLY URGED TO CONSULT WITH AND RELY UPON ITS OWN TAX ADVISOR AS TO THE SPECIFIC FEDERAL, STATE, LOCAL AND NON-U.S. TAX CONSEQUENCES TO SUCH HOLDER OF THE EPB MERGER AND THE RECEIPT, OWNERSHIP AND DISPOSITION OF KMI COMMON STOCK, IF ANY, RECEIVED IN THE EPB MERGER, TAKING INTO ACCOUNT ITS OWN PARTICULAR CIRCUMSTANCES.


Tax Consequences of the EPB Merger to U.S. Holders of EPB Common Units

        Tax Characterization of the EPB Merger.    The receipt of KMI common stock, cash or a combination of KMI common stock and cash in exchange for EPB common units pursuant to the EPB merger will be a taxable transaction to U.S. holders for U.S. federal income tax purposes. In general, the EPB merger will be treated as a taxable sale of a U.S. holder's EPB common units in exchange for KMI common stock, cash or a combination of KMI common stock and cash received in the EPB merger.

        Amount and Character of Gain or Loss Recognized.    A U.S. holder who receives KMI common stock, cash or a combination of KMI common stock and cash in exchange for EPB common units pursuant to the EPB merger will recognize gain or loss in an amount equal to the difference between (i) the sum of (A) the amount of any cash received, (B) the fair market value of any KMI common stock received, and (C) such U.S. holder's share of EPB's nonrecourse liabilities immediately prior to the EPB merger and (ii) such U.S. holder's adjusted tax basis in the EPB common units exchanged therefor (which includes such U.S. holder's share of EPB's nonrecourse liabilities immediately prior to the merger).

        A U.S. holder's initial tax basis in its EPB common units would have been equal the amount such holder paid for the EPB common units plus the U.S. holder's share of EPB's nonrecourse liabilities. Over time that basis would have (i) increased by the U.S. holder's share of EPB's income and by any increases in the U.S. holder's share of EPB's nonrecourse liabilities, and (ii) decreased, but not below zero, by distributions from EPB, by the U.S. holder's share of EPB's losses, by any decreases in the U.S. holder's share of EPB's nonrecourse liabilities and by the U.S. holder's share of EPB's expenditures that are not deductible in computing taxable income and are not required to be capitalized.

        Except as noted below, gain or loss recognized by a U.S. holder on the exchange of EPB common units in the EPB merger will generally be taxable as capital gain or loss. However, a portion of this

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gain or loss, which portion will likely be substantial, will be separately computed and taxed as ordinary income or loss under Section 751 of the Code to the extent attributable to assets giving rise to depreciation recapture or other "unrealized receivables" or to "inventory items" owned by EPB and its subsidiaries. The term "unrealized receivables" includes potential recapture items, including depreciation recapture. Ordinary income attributable to unrealized receivables, inventory items and depreciation recapture may exceed net taxable gain realized upon the exchange of an EPB common unit pursuant to the EPB merger and may be recognized even if there is a net taxable loss realized on the exchange of such U.S. holder's EPB common units pursuant to the EPB merger. Consequently, a U.S. holder may recognize both ordinary income and capital loss upon the exchange of EPB common units in the EPB merger.

        Capital gain or loss recognized by a U.S. holder will generally be long-term capital gain or loss if the U.S. holder has held its EPB common units for more than twelve months as of the effective time of the EPB merger. If the U.S. holder is an individual, such long-term capital gain will generally be eligible for reduced rates of taxation. Capital losses recognized by a U.S. holder may offset capital gains and, in the case of individuals, no more than $3,000 of ordinary income. Capital losses recognized by U.S holders that are corporations may be used to offset only capital gains.

        The amount of gain or loss recognized by each U.S. holder in the EPB merger will vary depending on each U.S. holder's particular situation, including the amount of the cash and/or the value of the KMI common stock received by each U.S. holder in the EPB merger, the adjusted tax basis of the EPB common units exchanged by each U.S. holder in the EPB merger, and the amount of any suspended passive losses that may be available to a particular unitholder to offset a portion of the gain recognized by each U.S. holder. Passive losses that were not deductible by a U.S. holder in prior taxable periods because they exceeded a U.S. holder's share of EPB's income may be deducted in full upon the U.S. holder's taxable disposition of its entire investment in EPB pursuant to the EPB merger. Each U.S. holder is strongly urged to consult its own tax advisor with respect to the specific tax consequences to them of the EPB merger, taking into account its own particular circumstances.

        EPB Items of Income, Gain, Loss and Deduction for the Taxable Period Ending on the Date of the EPB Merger.    U.S. holders of EPB common units will be allocated their share of EPB's items of income, gain, loss and deduction for the taxable period of EPB ending on the date of the EPB merger. These allocations will be made in accordance with the terms of the EPB partnership agreement. A U.S. holder will be subject to U.S. federal income taxes on any such allocated income and gain even if such U.S. holder does not receive a cash distribution from EPB attributable to such allocated income and gain. Any such income and gain allocated to a U.S. holder will increase the U.S. holder's tax basis in the EPB common units held and, therefore, will reduce the gain, or increase the loss, recognized by such U.S. holder resulting from the EPB merger. Any losses or deductions allocated to a U.S. holder will decrease the U.S. holder's tax basis in the EPB common units held and, therefore, will increase the gain, or reduce the loss, recognized by such U.S. holder resulting from the EPB merger.

        Tax Basis and Holding Period in KMI Common Stock Received in the EPB Merger.    A U.S. holder's tax basis in the shares of KMI common stock, if any, received in the EPB merger will equal the fair market value of such shares. A U.S. holder's holding period in the shares of KMI common stock, if any, received in the EPB merger will begin on the day after the date of the EPB merger.


Tax Consequences to U.S. Holders of Owning and Disposing of Shares of KMI Common Stock Received in the EPB Merger

        Distributions on KMI Common Stock.    For U.S. federal income tax purposes, distributions of cash by KMI to a U.S. holder with respect to shares of KMI common stock received in the EPB merger will generally be included in a U.S. holder's income as ordinary dividend income to the extent of KMI's current and accumulated "earnings and profits" as determined under U.S. federal income tax

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principles. A portion of the cash distributed to KMI shareholders by KMI after the merger may exceed KMI's current and accumulated earnings and profits. Distributions of cash in excess of KMI's current and accumulated earnings and profits will be treated as a non-taxable return of capital reducing a U.S. holder's adjusted tax basis in such U.S. holder's shares of KMI common stock and, to the extent the distribution exceeds such U.S. holder's adjusted tax basis, as capital gain from the sale or exchange of such shares of KMI common stock. Dividends received by a corporate U.S. holder may be eligible for a dividends received deduction, subject to applicable limitations. Dividends received by an individual U.S. holder may be taxed at the lower applicable long-term capital gains rate if such dividends are treated as "qualified dividend income" for U.S. federal income tax purposes.

        Sale, Exchange, Certain Redemptions or Other Taxable Dispositions of KMI Common Stock.    Upon the sale, exchange, certain redemptions or other taxable dispositions of KMI common stock received in the EPB merger, a U.S. holder will generally recognize capital gain or loss equal to the difference between (i) the amount of cash and the fair market value of any other property received upon such taxable disposition of shares of KMI common stock and (ii) the U.S. holder's adjusted tax basis in such shares of KMI common stock. Such capital gain or loss will be long-term capital gain or loss if the U.S. holder's holding period in the shares of KMI common stock disposed of is more than twelve months at the time of such taxable disposition. Long-term capital gains of non-corporate taxpayers are generally taxed at reduced rates. The deductibility of capital losses is subject to limitations.


Information Reporting and Backup Withholding

        Information returns may be required to be filed with the IRS in connection with the EPB merger and in connection with distributions made with respect to, or dispositions of, KMI common stock received in the EPB merger. A U.S. holder may be subject to U.S. backup withholding on payments made pursuant to the EPB merger or on distributions made with respect to, or on payments made pursuant to dispositions of, KMI common stock received in the EPB merger unless such holder provides proof of an applicable exemption or a correct taxpayer identification number and otherwise complies with the applicable requirements of the backup withholding rules. Any amount withheld under the U.S. backup withholding rules is not an additional tax and will generally be allowed as a refund or credit against the U.S. holder's U.S. federal income tax liability provided that the required information is timely furnished to the IRS.

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DESCRIPTION OF THE DEBT FINANCING FOR THE TRANSACTIONS

Overview

        KMI expects to finance the cash portion of the merger consideration for the KMP merger and the EPB merger and the fees and expenses of the Transactions with the proceeds of the issuance of debt securities in capital markets transactions and/or by borrowing under the bridge facility discussed below.

        On September 19, 2014, KMI entered into a bridge credit agreement with the lenders listed on the signature pages to such agreement and Barclays Bank, as administrative agent. The bridge credit agreement provides for an up to $5.0 billion senior unsecured 364-day term loan facility, which is referred to as the "bridge facility." To the extent the proceeds of the issuance of debt securities are not sufficient for the purposes set forth above, the proceeds of the bridge facility are expected to be used on the closing date of the Transactions to pay the cash portion of the merger consideration for the KMP merger and the EPB merger, related fees and expenses of the Transactions and all term loan indebtedness outstanding under KMI's existing credit agreement dated as of May 6, 2014.


Interest Rate and Maturity

        Interest on borrowings under the bridge facility will initially be calculated based on either (a) LIBOR plus an applicable margin ranging from 1.250% to 1.750% per annum based on the credit rating of KMI's senior unsecured non-credit enhanced long term indebtedness for borrowed money (referred to as "KMI's credit rating") or (b) the greatest of (1) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1%, (2) the Prime Rate in effect for such day, and (3) the LIBOR Rate for a Eurodollar Loan with a one month interest period that begins on such day plus 1%, plus, in each case an applicable margin ranging from 0.250% to 0.750% per annum based on KMI's credit rating. In addition, in each case the applicable margin will increase by 0.25% for each 90 day period that any loans remain outstanding under the bridge facility.

        All amounts outstanding under the bridge facility will be repayable on the date that is 364 days after the closing date of the bridge facility.


Guarantees

        Certain subsidiaries of KMI, including KMR, KMP and EPB, will be guarantors of KMI's obligations under the bridge facility pursuant to a guaranty agreement to be executed in connection with the bridge facility on the closing date thereof.


Prepayments

        Amounts borrowed under the bridge facility must be repaid with the net cash proceeds from:

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        The occurrence of certain events prior to the closing of the bridge facility that would have resulted in a mandatory prepayment of the bridge facility after funding thereof shall result in a reduction of the committed amount for the bridge facility, subject to certain exceptions.

        KMI may at any time make voluntary prepayments of the loans under the bridge facility without premium or penalty upon prior written notice, subject only to the obligation to reimburse the lenders for breakage costs.


Representations, Covenants and Events of Default

        The bridge facility contains representations and warranties and financial and various other covenants that apply to KMI and its subsidiaries and are common in such agreements, including a maximum ratio of Consolidated Net Indebtedness to Consolidated EBITDA (each as defined in the bridge facility) of 6.50 to 1.00. Other negative covenants include restrictions on KMI's and certain of its subsidiaries' ability to incur debt, grant liens, make fundamental changes or engage in transactions with affiliates, or in the case of certain material subsidiaries, permit restrictions on dividends or distributions or prepayments of loans to KMI or any guarantor. The bridge facility also restricts KMI's ability to pay dividends or repurchase stock if, before or after a dividend payment or stock repurchase, an event of default (as defined in the bridge facility) has occurred and is continuing or would occur and be continuing.

        The bridge facility contains customary events of default, including, among others, (a) non-payment; (b) non-compliance with covenants (in some cases, subject to grace periods); (c) payment default under, or acceleration events affecting, certain other indebtedness of KMI or certain of its subsidiaries; (d) bankruptcy or insolvency events involving KMI or certain of its subsidiaries and (e) a change in control of KMI.

        If an event of default under the bridge facility exists and is continuing, the lenders may terminate their commitments and accelerate the maturity of KMI's outstanding obligations under the bridge facility.


Fees

        The bridge facility provides for the payment by KMI of certain fees, including but not limited to a ticking fee and a duration fee.

        The ticking fee began accruing on August 9, 2014, the date of the execution of the commitment letter for the bridge facility, and ends on the earlier of the termination of the commitment letter or the closing date of the bridge facility. The ticking fee rate ranges from 0.15% to 0.30% based on KMI's credit rating. Prior to the public announcement of credit ratings that give effect to the Transactions, the applicable ticking fee rate is 0.25%, which is also the ticking fee rate that would apply if KMI had a BBB- rating from Standard and Poor's Rating Services and a Baa3 rating from Moody's Investors Service.

        The duration fee is equal to (a) 0.50% of the aggregate principal amount of the loans outstanding under the bridge facility on the date that is 90 days after the closing date of the bridge facility, (b) 0.75% of the aggregate principal amount of the loans outstanding under the bridge facility on the date that is 180 days after the closing date of the bridge facility and (c) 1.00% of the aggregate principal amount of the loans outstanding under the bridge facility on the date that is 270 days after the closing date of the bridge facility.

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Conditions

        The obligations of the lenders make loans under the bridge facility are subject to a number of conditions, including, without limitation:

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DESCRIPTION OF KMI'S CAPITAL STOCK

        The following information is a summary of the material terms of KMI's certificate of incorporation and bylaws and the shareholders agreement between KMI and certain of its investors, all of which are on file with the SEC and incorporated herein by reference. This summary does not purport to be complete and may not contain all of the information about KMI's certificate of incorporation and bylaws and the shareholders agreement that is important to you. We encourage you to read carefully KMI's certificate of incorporation and bylaws and the shareholders agreement in their entirely. See "Where You Can Find More Information" for information on how to obtain copies of these documents.


General

        KMI's authorized capital stock consists of:

        In connection with the Transactions, KMI will hold a special meeting of its stockholders to approve an increase in the number of authorized shares of KMI common stock to 4,000,000,000.


Common Stock

General

        In addition to the Class P common stock mentioned above, KMI's certificate of incorporation also authorized 707,000,000 shares of Class A convertible common stock, $0.01 par value per share, issued in nine series, which is referred to as the "Class A shares;" 100,000,000 shares of Class B convertible common stock, $0.01 par value per share, issued in nine series, which is referred to as the "Class B shares;" and 2,462,927 shares of Class C convertible common stock, $0.01 par value per share, issued in nine series, which is referred to as the "Class C shares."

        The Class A shares, Class B shares and Class C shares were originally issued to individuals and entities collectively referred to as the "Original Investors." The Original Investors were investors in KMI's going private transaction in 2007, namely:

        All of the Class A shares, Class B shares and Class C shares have been converted into KMI common stock, and none of the Class A shares, Class B shares and Class C shares are outstanding or may be reissued. Accordingly, the KMI common stock is the only class or series of KMI's capital stock currently issued or outstanding. Since all of the Sponsor Investors, other than the funds affiliated with

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Highstar, have sold all the shares of KMI's capital stock held by them, these funds are the only remaining Sponsor Investor.

Voting Rights

        Each share of KMI common stock entitles the holder to one vote with respect to each matter presented to KMI's stockholders on which the holders of KMI common stock are entitled to vote. Holders of KMI's capital stock do not have cumulative voting rights.

Dividends

        Holders of KMI common stock share equally in any dividend declared by KMI's board of directors, subject to the rights of the holders of any outstanding preferred stock.

Liquidation Rights

        In the event of any voluntary or involuntary liquidation, dissolution or winding up of KMI's affairs, holders of KMI common stock would be entitled to share ratably in KMI's assets that are legally available for distribution to its stockholders after payment of liabilities. If KMI has any preferred stock outstanding at such time, holders of the preferred stock may be entitled to distributions and/or liquidation preferences. In either such case, KMI must pay the applicable distribution to the holders of its preferred stock, if required pursuant to the terms of any such preferred stock, before KMI may pay distributions to the holders of KMI common stock.

Other Rights

        KMI's stockholders have no preemptive or other rights to subscribe for additional shares. All outstanding shares are validly issued, fully paid and nonassessable.


Preferred Stock

        KMI's board of directors is authorized, subject to the limits imposed by the General Corporation Law of the State of Delaware, which is referred to as the "DGCL," to issue up to 10,000,000 shares of preferred stock in one or more series, to establish from time to time the number of shares to be included in each series of preferred stock, and to fix the rights, preferences, privileges, qualifications, limitations and restrictions of the shares of each wholly unissued series of preferred stock. KMI's board of directors also is authorized to increase or decrease the number of shares of any series, but not below the number of shares of that series of preferred stock then outstanding and not above the total number of shares of preferred stock authorized by KMI's certificate of incorporation, without any further vote or action by KMI's stockholders.

        KMI's board of directors may authorize the issuance of preferred stock with voting rights that affect adversely the voting power or other rights of KMI's other classes of stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, also could have the effect of delaying, deferring or preventing a change in control or causing the market price of the KMI common stock to decline.


Certain Anti-takeover Provisions of KMI's Charter and Bylaws and Delaware Law

        KMI's certificate of incorporation and bylaws have the following provisions that could deter, delay or prevent a third party from acquiring KMI, even if doing so would benefit its stockholders.

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Undesignated Preferred Stock

        The ability to authorize undesignated preferred stock makes it possible for KMI's board of directors to issue preferred stock with super voting, special approval, dividend or other rights or preferences on a discriminatory basis that could impede the success of any attempt to acquire KMI. These and other provisions may have the effect of deferring, delaying or discouraging hostile takeovers, or changes in control or management of KMI. Further, the rights of the holders of KMI common stock will be subject to, and may be adversely affected by, the rights of the holders of any preferred shares that may be issued in the future.

Requirements for Advance Notification of Stockholder Meetings, Nominations and Proposals

        KMI's bylaws provide that special meetings of the stockholders may be called only upon the request of the chairman of the board, the chief executive officer, the president or the board of directors or upon the written request of stockholders of record of not less than 10% of all voting power entitled to vote at such meeting. KMI's bylaws prohibit the conduct of any business at a special meeting other than as specified in the notice for such meeting.

        KMI's bylaws establish advance notice procedures with respect to stockholder proposals for annual meetings and the nomination of candidates for election as directors, other than nominations made by or at the direction of the board of directors or a committee of the board of directors. In order for any matter to be "properly brought" before a meeting, a stockholder will have to comply with advance notice requirements and provide KMI with specified information. KMI's bylaws provide that any director or the board of directors may be removed, with or without cause, by an affirmative vote of shares representing the majority of all voting power then entitled to vote at an election of directors. KMI's bylaws also provide that vacancies may be filled only by a vote of a majority of the directors then in office, even though less than a quorum, and not by KMI's stockholders. KMI's bylaws allow the chairman of a meeting of the stockholders to adopt rules and regulations for the conduct of meetings that may have the effect of precluding the conduct of certain business at a meeting if the rules and regulations are not followed. These provisions also may defer, delay or discourage a potential acquiror from conducting a solicitation of proxies to elect the acquiror's own slate of directors or otherwise attempting to obtain control of KMI. In addition, at the time of KMI's initial public offering in 2011, KMI entered into a shareholders agreement with the Original Investors, which is referred to as the "shareholders agreement." The nomination and removal of directors, including the filling of board vacancies, also must comply with the provisions of the shareholders agreement that relate to composition of KMI's board of directors. See "—Shareholders Agreement."

No Stockholder Action by Written Consent

        KMI's certificate of incorporation provides that any vote or similar action required or permitted to be taken by holders of KMI common stock must be effected at a duly called annual or special meeting of stockholders and may not be effected by consent in writing by such stockholders.

Approval Requirements for Certain Changes of Control

        KMI's organizational documents contain additional approval requirements for certain non-cash changes of control. The shareholders agreement prohibits KMI from directly or indirectly engaging in any merger, amalgamation, consolidation or other business combination or similar transaction or series of transactions in which all shares of the KMI common stock would be exchanged for cash, securities or other property (other than solely for cash) without obtaining the unanimous approval of KMI's stockholders unless the organizational documents and capital structure of the acquiring, surviving or resulting entity preserve in all material respects the economic and other rights (including conversion, transfer, distribution and governance rights as set forth in KMI's certificate of incorporation, bylaws

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and shareholders agreement), characteristics and tax treatment, including on a relative basis, of the Sponsor Investors and the shares of KMI common stock as they exist on the date of such transaction.

Section 203 of the DGCL

        KMI is subject to the provisions of Section 203 of the DGCL. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a "business combination" with any "interested stockholder" for a three-year period following the time that such stockholder becomes an interested stockholder, unless the business combination is approved in a prescribed manner. A "business combination" includes, among other things, a merger, asset or stock sale or other transaction resulting in a financial benefit to the interested stockholder. An "interested stockholder" is a person who, together with affiliates and associates, owns (or who is an affiliate or associate of the corporation and did own within three years prior to the determination of interested stockholder status) 15% or more of the corporation's voting stock. Under Section 203, a business combination between a corporation and an interested stockholder is prohibited unless:

        Section 203 defines a business combination to include:

        A Delaware corporation may opt out of this provision either with an express provision in its original certificate of incorporation or in an amendment to its certificate of incorporation or bylaws approved by its stockholders. KMI has not opted out of this provision, so Section 203 will apply to any stockholder that becomes an interested stockholder after KMI's initial public offering. The statute, as it applies to interested stockholders other than Mr. Kinder, could prohibit or delay mergers or other takeover or change in control attempts and, accordingly, may discourage attempts to acquire KMI. These provisions of the DGCL could have the effect of deferring, delaying or discouraging hostile

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takeovers and may also have the effect of preventing changes in control or management of KMI. It is possible that these provisions could make it more difficult to accomplish transactions other stockholders might deem desirable.


Certain Other Provisions of KMI's Charter and Bylaws and Delaware Law

Board of Directors

        KMI's certificate of incorporation provides that the number of directors will be fixed in the manner provided in its bylaws. KMI's bylaws provide that the number of directors will be fifteen, subject to increase or decrease in accordance with the shareholders agreement. As of the date of this proxy statement/prospectus, the provisions of the shareholders agreement have resulted in a decrease in the number of KMI's directors to eleven. Because the Sponsor Investors now have the right to choose fewer than three director nominees, the shareholders agreement permits the number of directors to be reduced below eleven, but not below nine, if a majority of the board approves such reduction. In such case, the number of director nominees that Mr. Kinder has the right to choose also will be reduced to four. The shareholders agreement also provides that the number of directors may be increased in order to meet the majority independence requirements of the NYSE if KMI is unable to qualify for a controlled company exemption at such time. See "—Shareholders Agreement."

        The non-employee members of the EPGP, KMGP and KMR boards of directors have been offered the opportunity to become members of the KMI board of directors after the mergers. Accordingly, KMI expects to amend its bylaws and the shareholders agreement to provide that after the mergers, the number of KMI directors will be no more than 16 and no less than 10, as fixed from time to time by the board of directors, and may also be increased in accordance with the shareholders agreement or reduced to not fewer than nine in accordance with the shareholders agreement.

Supermajority Board Approval

        KMI's bylaws state that, unless otherwise provided, so long as the Sponsor Investors have the right to choose at least five nominees to the board of directors pursuant to the shareholders agreement, any matter brought before the board of directors will be decided by a supermajority vote. KMI's bylaws further provide a list of actions, including amending KMI's certificate of incorporation or bylaws, that, so long as the Sponsor Investors have the right to choose at least five nominees to the board of directors pursuant to the shareholders agreement, must be brought before the board of directors and decided by supermajority vote. Because the Sponsor Investors no longer have the right to choose at least five nominees, the foregoing supermajority provisions are no longer in effect.

Limitations of Liability and Indemnification of Officers and Directors

        The DGCL authorizes corporations to limit or eliminate the personal liability of directors to corporations and their stockholders for monetary damages for breaches of directors' fiduciary duties. KMI's certificate of incorporation eliminates the personal liability of directors for monetary damages for actions taken as a director to the fullest extent authorized by the DGCL. The DGCL does not permit exculpation for liability:

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        KMI's certificate of incorporation and bylaws provide that KMI shall indemnify its current and former directors and officers, and may indemnify its employees, agents and other persons, to the fullest extent permitted by law. KMI also is expressly authorized to carry directors' and officers' insurance providing indemnification for its directors, officers and certain employees and agents for any liabilities incurred in any such capacity, whether or not KMI would have the power to indemnify such person against such liability. KMI believes that these indemnification provisions and insurance are useful to attract and retain qualified directors and executive officers.

        The limitation of liability and indemnification provisions in KMI's certificate of incorporation and bylaws may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary duty. These provisions also may have the effect of reducing the likelihood of derivative litigation against directors and officers, even though such an action, if successful, might otherwise benefit KMI and its stockholders. In addition, an investment in KMI's stock may be adversely affected to the extent KMI pays the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions.

Corporate Opportunities

        KMI's certificate of incorporation provides that the Sponsor Investors and certain of their affiliates (including any director nominated by the Sponsor Investors) have no obligation to offer KMI or its wholly owned subsidiaries an opportunity to participate in business opportunities presented to the Sponsor Investors or such affiliates (other than KMI or its wholly owned subsidiaries) even if the opportunity is one that KMI or one of its wholly owned subsidiaries might reasonably have pursued, and that neither the Sponsor Investors nor their respective affiliates will be liable to KMI or any of its wholly owned subsidiaries for breach of any duty by reason of any such activities. However, each such person serving as a director of KMI or one of its wholly owned subsidiaries must tell KMI about any business opportunity offered to such person solely in his or her capacity as such a director.

Amending KMI's Certificate of Incorporation and Bylaws

        KMI's certificate of incorporation may be amended in any manner provided by the DGCL. Because the KMI common stock is the only class of KMI capital stock that remains outstanding, KMI's certificate of incorporation may be amended with the affirmative vote of a majority of the outstanding KMI common stock, except that any provision requiring a supermajority vote of stockholders may only be amended with such supermajority vote.

        KMI's certificate of incorporation and bylaws provide that the bylaws may be amended, altered, repealed or new bylaws may be adopted by KMI's board of directors or by the affirmative vote of holders of shares representing two-thirds of the total voting power of all of KMI's outstanding capital stock then entitled to vote at any annual or special meeting for the election of directors. In addition, any adoption, alteration, amendment or repeal of any bylaw by the board of directors requires the affirmative vote of:

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Shareholders Agreement

        Although only KMI and the Original Investors are parties to the shareholders agreement, it contains a number of provisions affecting the governance of KMI. Following is a summary of those provisions. Because all of the Sponsor Investors, other than the funds affiliated with Highstar Capital LP, have sold all the shares of KMI's capital stock held by them, certain provisions in the shareholders agreement no longer apply and are not described below. The funds affiliated with Highstar Capital LP are sometimes referred to as the "Remaining Sponsor Investor." We encourage you to read the shareholders agreement in its entirety.

Board, Committee and Observer Rights

        The shareholders agreement provides that Mr. Kinder and the Remaining Sponsor Investor have the following rights to appoint director nominees to the KMI board and committees, which may be adjusted as described below. As of the date of this proxy statement/prospectus, the KMI board has eleven members, with five director nominees appointed by Mr. Kinder, two director nominees appointed by the Remaining Sponsor Investor, and four additional independent directors.

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        Because the Remaining Sponsor Investor has the right to appoint fewer than three director nominees, KMI's board of directors can elect to decrease the size of the board down to a minimum of nine directorships. In such case, the number of director nominees that Mr. Kinder has the right to choose would decrease to four. Appointments to any directorships which are not specifically allocated pursuant to the above description will be made by KMI's nominating and governance committee.

        Under the shareholders agreement, share ownership for Mr. Kinder includes shares owned by his permitted transferees, and share ownership for Sponsor Investors includes specified transferees and successors. In the event of Mr. Kinder's death, his nomination rights described above may be exercised by his heirs, executors and beneficiaries so long as they own shares representing at least 2.5% of the voting power of the outstanding shares of KMI's capital stock entitled to vote on the election of directors.

        During such time as Mr. Kinder is entitled to appoint five director nominees, one member of each of the nominating and governance committee and the audit committee will consist of a director who was chosen as a director nominee by Mr. Kinder, which directors must meet the applicable independence requirements for those committees. If Mr. Kinder loses the right to select, or his nominees are ineligible to serve as, members of those committees, then that committee member must be one of the directors nominated for election by the nominating and governance committee.

        In the shareholders agreement, KMI agrees to include the persons nominated as directors in accordance with the shareholders agreement in the slate of nominees recommended by the board of directors, and Mr. Kinder and the Remaining Sponsor Investor agree with each other to take all necessary action within their power as stockholders to vote in favor of such persons nominated to the board of directors in accordance with the shareholders agreement and to remove any directors as required by the shareholders agreement. If Mr. Kinder or the Remaining Sponsor Investor does not vote in accordance with the shareholders agreement to elect or remove any directors, they have granted each other an irrevocable proxy so that their shares of KMI common stock may be voted in accordance with the shareholders agreement.

        Under the shareholders agreement, as long as the Remaining Sponsor Investor owns at least 1% of the outstanding shares of KMI's capital stock entitled to vote on the election of directors, it may appoint an observer to participate in meetings of the KMI board or any committee thereof. In addition, the Remaining Sponsor Investor has specified rights to appoint observers to attend meetings of the boards and committees of KMGP, KMR and EPGP. Observers may be excluded from the deliberations of any board or committee at the direction of a majority of the members of such board or committee and must comply with applicable laws and regulations. In the event that the participation of an

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observer appointed by the Remaining Sponsor Investor would create a conflict of interest at a meeting, such observer will recuse himself or herself from the related portion of such meeting.

Certain Actions Relating to KMI and Its Subsidiaries and Other Affiliates

        As long as the Remaining Sponsor Investor owns any shares of KMI common stock received upon conversion of its Class A shares as a result of a mandatory conversion, KMI has agreed in the shareholders agreement to:

        As long as the Remaining Sponsor Investor owns shares representing at least 2.5% of the voting power of the outstanding shares of KMI's capital stock entitled to vote on the election of directors, KMI has agreed in the shareholders agreement to:

        In addition, Mr. Kinder has agreed until May 15, 2015 to notify the Remaining Sponsor Investor prior to his acquisition of, or offer to acquire, any securities of KMI or any of its publicly-traded subsidiaries in a transaction or a series of related transactions involving a value in excess of $50 million.

Registration Rights

        The shareholders agreement contains registration rights provisions pursuant to which KMI may be required to register the sale of shares of KMI common stock owned by the Remaining Sponsor Investor and Mr. Kinder that were issued upon the conversion of their Class A shares and Class B shares, as applicable. Under the registration rights provisions, the Remaining Sponsor Investor and Mr. Kinder will each have the right to require that KMI register resales of such shares of KMI common stock having an aggregate value of at least $200 million, or such lesser amount that represents all of such holder's remaining shares. KMI will not be obligated to effect such a demand registration at any time that a shelf registration statement is effective, or if, in KMI's good faith reasonable judgment, it is not feasible for KMI to proceed because of the unavailability of required financial statements, or during a blackout period. A blackout period, for this purpose, is any of (1) a regular quarterly blackout period when KMI's directors and executive officers are not permitted to trade, (2) a seven day period (which KMI may not invoke more than twice in any 12 month period) relating to a securities offering of $150 million or more by KMP, EPB or KMR, or (3) a 30 day period (which KMI may not invoke

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more than twice in any 12 month period) if the registration would cause the disclosure of specified types of non-public information. The registration rights provisions contain holdback provisions for KMI and certain holders of shares in the event of an underwritten offering of common stock having an aggregate value of at least $500 million.

        Under the registration rights provisions, the Remaining Sponsor Investor or Mr. Kinder also can require KMI to file a shelf registration statement on Form S-3 for the resale of KMI common stock they received upon the conversion of their Class A shares or Class B shares, as applicable. In such event, KMI has agreed to use its reasonable best efforts to keep a shelf registration statement continuously effective until the earlier of the date on which all registrable securities covered by the shelf registration statement have been sold or otherwise cease to be registrable securities or the date on which the Sponsor Investors no longer collectively hold registrable securities that represent at least 1% of the voting power of the outstanding shares of KMI's capital stock entitled to vote on the election of directors.

        KMI also has agreed not to effect any merger, amalgamation, consolidation, business combination or change of control or reorganization event or similar transaction or series of transactions in which it is not the surviving entity (other than solely for cash consideration) unless the surviving entity assumes these registration obligations.

        KMI has agreed to indemnify and hold harmless each selling shareholder for whom it files a registration statement and such selling stockholder's affiliates and their respective officers, directors, managers, partners, agents and control persons against any losses relating to violations of applicable securities law by KMI in connection with such registration or offering (except to the extent such violations were caused by such selling shareholder) or untrue statement of a material fact contained in such registration statement, prospectus or preliminary prospectus or free writing prospectus or any omission of a material fact required to be stated therein or necessary to make the statement therein, in light of the circumstances under which they were made, not misleading.

Non-Compete Agreements

        The executive management stockholders identified in the shareholders agreement, which include Mr. Kinder and certain of KMI's executive officers, have agreed to certain non-competition and non-solicitation provisions during the term of their employment and for a specified period of time following their employment, which ranges from one year to two years, if they are terminated on or prior to May 31, 2015.

Corporate Opportunities

        The shareholders agreement provides that the Sponsor Investors and certain of their respective affiliates, including any director nominated by a Sponsor Investor, have no obligation to offer KMI or its wholly owned subsidiaries an opportunity to participate in business opportunities presented to the Sponsor Investors or such affiliates (other than KMI and its wholly owned subsidiaries) even if the opportunity is one that KMI or one of its wholly owned subsidiaries might reasonably have pursued, and that neither the Sponsor Investors nor their respective affiliates will be liable to KMI or any of its wholly owned subsidiaries for breach of any duty by reason of any such activities. However, each such person serving as a director of KMI or one of its wholly owned subsidiaries must tell KMI about any business opportunity offered to him or her solely in his or her capacity as such a director. Each director nominated by the Remaining Sponsor Investor has agreed to recuse himself or herself from any portion of a board or committee meeting if such director has actual knowledge that the Remaining Sponsor Investor that appointed such director (or one of its controlled affiliates) is engaged in or pursuing any business opportunity that such director has actual knowledge that KMI also is engaged in or evaluating and if such director's participation would cause a conflict of interest.

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Payment of Certain Costs and Expenses

        KMI is obligated to pay all reasonable fees and expenses of the Sponsor Investors and their counsel related to the administration of, and their rights and obligations under, KMI's certificate of incorporation and bylaws and the shareholders agreement that are approved in advance by KMI.

Other Provisions

        Certain provisions in the shareholders agreement will terminate with respect to the Remaining Sponsor Investor when it no longer owns shares representing at least 2.5% of the voting power of the outstanding shares of KMI's capital stock entitled to vote on the election of directors, including the right to nominate director and committee members. When the Remaining Sponsor Investor no longer owns shares representing at least 2.5% of the voting power of the outstanding shares of KMI's capital stock entitled to vote on the election of directors, then certain sections of the shareholders agreement will terminate with respect to all Original Investors, including rights to nominate director and committee nominees and certain actions relating to KMI's subsidiaries and other affiliates. The shareholders agreement will terminate when none of the shareholders party thereto hold any shares of KMI common stock.

        Amendments to the shareholders agreement must be signed by KMI, if the amendment modifies its rights or obligations, and by the following holders:

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        If no parties meet the conditions set forth in the bullets above, then the holders of shares representing a majority of the voting power of the outstanding shares of KMI's capital stock entitled to vote on the election of directors then held by holders who are party to the shareholders agreement must sign an amendment.

Indemnification of Directors and Officers

        Pursuant to KMI's certificate of incorporation and bylaws, KMI has agreed to indemnify each of its current and former directors and officers, and may additionally indemnify any of its employees, agents or other persons, to the fullest extent permitted by law against all expense, liability and loss (including attorney's fees, judgments, fines, ERISA excise taxes or penalties and amounts paid in settlement) incurred or suffered by its directors or officers or these other persons. KMI has agreed to provide this indemnification for civil, criminal, administrative, arbitrative or investigative proceedings to the fullest extent permitted under the DGCL. Thus, KMI's directors and officers could be indemnified for their negligent acts if they met the requirements set forth above. KMI also has acknowledged that it is the indemnitor of first resort with respect to such indemnification obligations and that any obligations of a Sponsor Investor and its affiliates to advance expenses or to provide indemnification and/or insurance for the same expenses or liabilities are secondary. KMI also is expressly authorized to carry directors' and officers' insurance providing indemnification for its directors, officers and certain employees and agents for any liabilities incurred in any such capacity, whether or not KMI would have the power to indemnify such person against such liability.

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COMPARISON OF RIGHTS OF KMI STOCKHOLDERS
AND EPB UNITHOLDERS

        KMI is a corporation, and EPB is a limited partnership. Ownership interests in a limited partnership are fundamentally different from ownership interests in a corporation. The rights of KMI stockholders are governed by KMI's certificate of incorporation and bylaws and the Delaware General Corporation Law, which is referred to as the "DGCL." The rights of EPB unitholders are governed by the EPB partnership agreement and the Delaware Revised Uniform Limited Partnership Act, which is referred to as the "Delaware LP Act." If the EPB merger is completed, the rights of EPB unitholders as holders of KMI common stock will be governed by KMI's certificate of incorporation and bylaws and the DGCL. There are many differences between the rights of EPB unitholders and the rights of KMI stockholders. Some of these, such as distribution/dividend and voting rights, are significant. Additionally, although EPB unitholders will not become parties to KMI's shareholders agreement, that agreement affects the nomination and election of KMI directors, the composition and operation of its board of directors and committees and other matters. The following description summarizes the material differences that may affect the rights of KMI common stockholders and EPB common unitholders but does not purport to be a complete statement of all those differences, or a complete description of the specific provisions referred to in this summary. The identification of specific differences is not intended to indicate that other equally significant or more significant differences do not exist. EPB unitholders should read carefully the relevant provisions of the KMI certificate of incorporation, bylaws and shareholders agreement and the EPB partnership agreement. Copies of the documents referred to in this summary may be obtained as described under "Where You Can Find More Information."

Purpose and Term of Existence    

        KMI

 

EPB

        KMI's stated purpose is to engage in any and all lawful acts and activities for which corporations may be organized under the DGCL. KMI is to have perpetual existence.

 

EPB's stated purpose is to engage directly or indirectly in any business activity that is approved by EPB's general partner and that may lawfully be conducted or engaged in by a Delaware limited partnership; provided that the general partner may not cause EPB to engage in any business activity that the general partner determines would cause EPB to be treated as an association taxable as a corporation or otherwise taxable as an entity for federal income tax purposes.

        EPB's existence will continue until its certificate of limited partnership is cancelled in accordance with its partnership agreement.


Authorized Capital

 

 

        KMI

 

EPB

  
        KMI's authorized capital stock consists of:

2,000,000,000 shares of KMI common stock, $0.01 par value per share, 1,028,229,501 shares of which were outstanding as of the date of this proxy statement/prospectus; and

    
        As of the date of this proxy statement/prospectus, EPB had 233,151,329 EPB common units, including 4,359 EPB restricted units, and no other limited partner interests outstanding other than its incentive distribution rights.

        EPB may issue an unlimited number of additional limited partner interests and other

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10,000,000 shares of preferred stock, $0.01 par value per share, none of which were outstanding as of the date of this proxy statement/prospectus.

        In connection with the Transactions, KMI will hold a special meeting of its stockholders to approve an increase in the number of authorized shares of KMI common stock to 4,000,000,000.

        KMI's certificate of incorporation also authorized three classes of common stock that were convertible into KMI common stock, but all shares of such classes have been converted into KMI common stock and none are outstanding or may be reissued.

 

equity securities, including in additional classes or series, with such designations, preferences, rights, powers and duties, which may be senior or in addition to those of its common units or other existing classes of units, as the general partner may determine, all without the approval of any EPB unitholders.


Dividends / Distributions

 

 

        KMI

 

EPB

        Holders of KMI common stock share equally in any dividend declared by the KMI board. If any preferred stock were outstanding, dividends on KMI common stock would be subject to the rights of the holders of that preferred stock. Dividends may be paid out of the corporation's surplus, or in the case no surplus exists, out of the net profits for the fiscal year and may be paid in cash, property, or shares of the corporation's capital stock.

        KMI has adopted a dividend policy providing that, subject to applicable law, KMI will pay quarterly cash dividends on all classes of its capital stock equal to the cash it receives from its subsidiaries and other sources less any cash disbursements and reserves established by a majority vote of its board of directors, including for general and administrative expenses, interest and cash taxes. the KMI board may amend, suspend or revoke this dividend policy at any time.

 

Distributions of Available Cash. EPB's partnership agreement requires that EPB distribute 100% of "available cash," as defined in the partnership agreement, to its partners within 45 days following the end of each calendar quarter. Available cash generally means, with respect to any quarter, all cash and cash equivalents of EPB and its subsidiaries on hand, less the amount of cash reserves established by the general partner to (1) provide for the proper conduct of EPB's business, including necessary maintenance capital expenditures; (2) comply with applicable law, any of EPB's debt instruments or other agreements; or (3) provide funds for distributions to unitholders and to the general partner for any one or more of the next four quarters.

        General Partner Interest. EPB's general partner is currently entitled to 2% of all quarterly distributions that EPB makes prior to its liquidation. This general partner interest is represented by general partner units. The general partner has the right, but not the obligation, to contribute a proportionate amount of capital to EPB to maintain its current general partner interest. The general partner's 2% interest in these distributions will be reduced if EPB issues additional units in the future and the general partner does not contribute a proportionate amount of capital to EPB to maintain its 2% general partner interest.

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Incentive Distribution Rights. EPB's general partner also currently holds incentive distribution rights that entitle it to receive increasing percentages, up to a maximum of 50%, of the cash EPB distributes from operating surplus (as defined below) in excess of $0.33063 per unit per quarter. The maximum distribution of 50% includes distributions paid to the general partner on its 2% general partner interest and assumes that the general partner maintains its general partner interest at 2%. The maximum distribution of 50% does not include any distributions that the general partner or its affiliates may receive on EPB common units that they own.

        Characterization of Cash Distributions. All cash distributed to unitholders is characterized as either "operating surplus" or "capital surplus." EPB's partnership agreement requires that it distribute available cash from operating surplus differently than available cash from capital surplus. All available cash distributed is to be treated as coming from operating surplus until the sum of all available cash distributed equals the operating surplus as of the most recent date of determination of available cash. Any amount distributed in excess of operating surplus, regardless of its source, is to be treated as capital surplus.

        Operating Surplus. Operating surplus is defined in the partnership agreement and generally means, for any period: $50 million; plus all cash receipts after the closing of EPB's 2007 initial public offering, excluding cash from interim capital transactions (as described below); less operating expenditures (as defined in the partnership agreement) and reserves for operating expenditures; and various other items.

        Capital Surplus. Capital surplus is defined in the partnership agreement and generally will be generated primarily by "interim capital transactions", which include borrowings other than working capital borrowings; sales of EPB equity and debt securities; sales or other dispositions of assets for cash, other than inventory, accounts receivable and other current assets sold in the ordinary course of business or as part of normal retirement or replacement of assets; and corporate reorganizations or restructurings.

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          Distributions of Available Cash from Operating Surplus. The partnership agreement requires that EPB make distributions of available cash from operating surplus for a quarter in the following manner (assuming that the general partner continues to hold the incentive distribution rights):

first, 98% to all EPB unitholders, pro rata, and 2% to the general partner, until each EPB unitholder receives a total of $0.33063 per unit for that quarter;

second, 85% to all EPB unitholders, pro rata, and 15% to the general partner, until each EPB unitholder receives a total of $0.35938 per unit for that quarter;

third, 75% to all EPB unitholders, pro rata, and 25% to the general partner, until each EPB unitholder receives a total of $0.43125 per unit for that quarter; and

thereafter, 50% to all EPB unitholders, pro rata, and 50% to the general partner.

        The first three distribution levels described above will be proportionately adjusted upward or downward, as appropriate, in the event of any combination or subdivision of units, whether effected by a distribution payable in any type of units or otherwise. In addition, if legislation is enacted or if existing law is modified or interpreted by a governmental taxing authority, so that EPB becomes taxable as a corporation or otherwise subject to taxation as an entity for federal, state or local income tax purposes, the partnership agreement specifies that the general partner may reduce those three distribution levels for each quarter by multiplying each distribution level by a fraction, the numerator of which is available cash for that quarter and the denominator of which is the sum of available cash for that quarter plus the general partner's estimate of EPB's aggregate liability for the quarter for such income taxes payable by reason of such legislation or interpretation. To the extent that the actual tax liability differs from the estimated tax liability for any quarter, the difference will be accounted for in subsequent quarters.

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General Partner's Right to Reset Incentive Distribution Levels. The general partner, as the holder of the incentive distribution rights, has the right under EPB's partnership agreement to elect to relinquish the right to receive incentive distribution payments based on the initial cash EPB distribution levels described above and to reset, at higher levels, the minimum quarterly distribution amount and cash EPB distribution levels upon which the incentive distribution payments to the general partner would be set. The general partner's right to reset the minimum quarterly distribution amount and the EPB distribution levels upon which the incentive distributions payable to the general partner are based may be exercised, without approval of EPB's unitholders or the EPGP conflicts committee, at any time when there are no subordinated units outstanding and EPB has made cash distributions to the holders of the incentive distribution rights at the highest level of incentive distribution for each of the prior four consecutive fiscal quarters. The minimum quarterly distribution amount, which at present is $0.2875 per EPB common unit, would be increased in the reset to an amount equal to the average cash distribution amount on the common units for the two fiscal quarters immediately preceding the general partner's election to reset, and the first three distribution levels described above would increase to levels above that calculated in accordance with the partnership agreement.

        In connection with the resetting of the minimum quarterly distribution amount and the EPB distribution levels and the corresponding relinquishment by the general partner of incentive distribution payments based on the EPB cash distributions prior to the reset, the general partner will be entitled to receive a number of newly issued Class B common units and general partner units based on a predetermined formula described in the partnership agreement that takes into account the "cash parity" value of the average cash distributions related to the incentive distribution rights received by the general partner for the two quarters prior to the reset event as compared to the average cash distributions per common unit during this period.

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          Distributions from Capital Surplus. EPB's partnership agreement requires that it make distributions of available cash from capital surplus, if any, in the following manner:

first, 98% to all EPB unitholders, pro rata, and 2% to the general partner, until EPB distributes for each EPB common unit an amount of available cash from capital surplus equal to the initial public offering price; and

thereafter, all distributions of available cash from capital surplus will be made as if they were from operating surplus.

        EPB's partnership agreement treats a distribution of capital surplus as the repayment of the initial unit price from the initial public offering, which is a return of capital. The initial public offering price less any distributions of capital surplus per unit is referred to as the "unrecovered initial unit price." Each time a distribution of capital surplus is made, the first three EPB distribution levels described under "—Distribution of Available Cash from Operating Surplus" will be reduced in the same proportion as the corresponding reduction in the unrecovered initial unit price. When the initial unit price is fully recovered, each of those first three distribution levels described above will have been reduced to zero. Thereafter, all distributions of available cash from all sources will be treated as if they were operating surplus and distributed 50% to all unitholders pro rata, and 50% to the general partner.


Business Combinations

 

 

        KMI

 

EPB

        Under the DGCL, the consummation of a merger or consolidation requires the approval of the board of directors of a corporation that is a constituent corporation in the merger or consolidation and requires that the agreement of merger or consolidation be adopted by the affirmative vote of a majority of the stock of that corporation entitled to vote thereon at an annual or special meeting for the purpose of acting on the agreement. However, no such approval and

 

EPB's partnership agreement generally prohibits the general partner, without the prior approval of the holders of a majority of the outstanding EPB common units, from causing EPB, among other things, to merge or consolidate with another entity, or to sell, exchange or otherwise dispose of all or substantially all of the assets of EPB and its subsidiaries, taken as a whole, in a single transaction or a series of related transactions. The general partner may, however,

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vote are required if such constituent corporation is the surviving corporation and:

such corporation's certificate of incorporation is not amended;

the stockholders of the surviving corporation whose shares were outstanding immediately before the effective date of the merger will hold the same number of shares, with identical designations, preferences, limitations, and rights, immediately after; and

either no shares of common stock of the surviving corporation and no shares, securities or obligations convertible into such stock are to be issued or delivered under the plan of merger, or the authorized unissued shares or the treasury shares of common stock of the surviving corporation to be issued or delivered under the plan of merger do not exceed 20% of the shares of common stock of such corporation outstanding immediately prior to the effective date of the merger.

        In the case of the Transactions, although KMI common stock is being issued in the Transactions, KMI is not one of the constituent corporations in the Transactions. Therefore, the only stockholder votes necessary are to approve an increase in the number of authorized shares of KMI common stock and to approve the issuance of the KMI common stock in the Transactions, as required by NYSE rules.

        KMI's organizational documents contain additional approval requirements for certain non-cash changes of control. The shareholders agreement prohibits KMI from directly or indirectly engaging in any merger, amalgamation, consolidation or other business combination or similar transaction or series of transactions in which all shares of the KMI common stock would be exchanged for cash, securities or other property (other than solely for cash) without obtaining the unanimous approval of KMI's stockholders unless the organizational documents and capital structure of the acquiring, surviving or resulting entity preserve in all material respects the economic and other rights (including conversion, transfer, distribution and governance rights as set forth in KMI's certificate of incorporation, bylaws and shareholders

 

mortgage, pledge, hypothecate or grant a security interest in all or substantially all of EPB's assets without that approval. The general partner may also sell any or all of EPB's assets under a foreclosure of or other realization upon those encumbrances without that approval.

        EPB's partnership agreement contains provisions that may discourage a person or group from attempting to remove the general partner or otherwise change management. For example, in addition to other provisions described in this section, EPB's partnership agreement provides that if at any time any person or group, other than the general partner and its affiliates, or a direct or approved transferee of the general partner of its affiliates, acquires beneficial ownership of 20% or more of any class of units outstanding, that person or group cannot vote on any matter.

        Neither EPB's partnership agreement nor the Delaware LP Act has any provisions with respect to business combinations similar to those contained in Section 203 of the DGCL.

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agreement), characteristics and tax treatment, including on a relative basis, of the Sponsor Investors and the shares of KMI common stock as they exist on the date of such transaction.

        KMI is subject to the provisions of Section 203 of the DGCL. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a "business combination" with any "interested stockholder" for a three-year period following the time that such stockholder becomes an interested stockholder, unless the business combination is approved in a prescribed manner. A "business combination" includes, among other things, a merger, asset or stock sale or other transaction resulting in a financial benefit to the interested stockholder. An "interested stockholder" is a person who, together with affiliates and associates, owns (or who is an affiliate or associate of the corporation and did own within three years prior to the determination of interested stockholder status) 15% or more of the corporation's voting stock. For a description of the prohibitions and requirements of Section 203, see "Description of KMI's Capital Stock—Certain Anti-takeover Provisions of KMI's Charter and Bylaws and Delaware Law—Section 203 of the DGCL."


 

 

Management by Board of Directors / General Partner

        KMI

 

EPB

        In accordance with the DGCL, KMI's business and affairs are managed by its board of directors.

        KMI's certificate of incorporation provides that the number of directors will be fixed in the manner provided in its bylaws. KMI's bylaws provide that the number of directors will be fifteen, subject to increase or decrease in accordance with the shareholders agreement. As of the date of this proxy statement/prospectus, the provisions of the shareholders agreement have resulted in a decrease in the number of KMI's directors to eleven. The non-employee members of the EPGP, KMGP and KMR boards of directors have been offered the opportunity to become members of the KMI board after the mergers.

 

As a Delaware limited partnership, EPB is not managed by a board of directors but by a general partner. Except as provided in EPB's partnership agreement, EPB's general partner conducts, directs and manages its activities, all management powers over EPB's business and affairs are exclusively vested in the general partner, and no limited partner or assignee has any management power over EPB's business and affairs.

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Nomination and Election of Directors / General Partner

        KMI

 

EPB

        Directors are elected by a plurality of the votes of the shares present in person or represented by proxy and entitled to vote on the election of directors.

        At a meeting of the KMI stockholders, only such nominations of persons for the election of directors and such other business shall be conducted as shall have been properly brought before the meeting. To be properly brought before an annual meeting, nominations or such other business must be: (1) specified in KMI's notice of meeting, (2) otherwise properly brought before the meeting by or at the direction of its board of directors or any committee thereof, or (3) otherwise properly brought before an annual meeting by a stockholder who is a stockholder of record at the time such notice of meeting is given, who is entitled to vote at the meeting and who complies with the procedures described under "—Stockholder Proposals and Director Nominations."

        In the shareholders agreement, KMI agrees to include the persons nominated as directors in accordance with the shareholders agreement in the slate of nominees recommended by the board of directors, and Richard D. Kinder and the Sponsor Investors agree with each other to take all necessary action within their power as stockholders to vote in favor of such persons nominated to the board of directors in accordance with the shareholders agreement and to remove any directors as required by the shareholders agreement. Immediately after the completion of the Transactions, assuming Mr. Kinder and the Remaining Sponsor Investor retain all the KMI common stock they currently hold, Mr. Kinder and the Remaining Sponsor Investor are expected to have less than 12% and 4%, respectively, of the total voting power for the election of KMI's directors. The shareholders agreement also provides that nominees of Mr. Kinder must be appointed to specified committees of the board. For additional information with respect to the shareholders agreement provisions relating to the nomination, election and removal of directors and board committees, see "Description of KMI's

 

EPB unitholders have no right to elect the general partner unless the general partner has been removed or withdrawn, as described below, and have no right to elect the directors of the general partner.

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Capital Stock—Shareholders Agreement—Board, Committee and Observer Rights."

        Each director chosen shall hold office until the first annual meeting of stockholders held after his or her election and until his or her successor is elected and qualified or, if earlier, until his death, resignation, or removal from office.


 

 

Removal of Directors; Withdrawal or Removal of General Partner

        KMI

 

EPB

        KMI's bylaws provide that except as otherwise provided in its charter or bylaws, at any meeting of stockholders expressly called for that purpose, any director or the entire board of directors may be removed, with or without cause, by a vote of holders of shares representing a majority of the total voting power in the election of directors. As described above, in the shareholders agreement Mr. Kinder and the Sponsor Investors have made agreements about how their shares will be voted.

 

Except as noted below, EPB's general partner has agreed not to withdraw voluntarily as general partner prior to December 31, 2017 without obtaining the approval of the holders of at least a majority of the outstanding EPB common units, excluding common units held by the general partner and its affiliates, and furnishing an opinion of counsel that the withdrawal, following selection of a successor general partner, will not cause EPB or any of its subsidiaries to be treated as an association taxable as a corporation or otherwise taxed as an entity for federal income tax purposes or result in the loss of the limited liability of any limited partner. On or after December 31, 2017, the general partner may withdraw as general partner without first obtaining approval of any EPB unitholder by giving 90 days' written notice, and that withdrawal will not constitute a violation of EPB's partnership agreement. The general partner may withdraw without EPB unitholder approval, including prior to December 31, 2017, upon 90 days' notice to the limited partners if at least 50% of the outstanding common units are held or controlled by one person and its affiliates other than the general partner and its affiliates. EPB's partnership agreement provides for other events of withdrawal, including specified bankruptcy events.

        The general partner may not be removed unless that removal is approved by the vote of the holders of at least 662/3% of EPB's outstanding units, including units owned by the general partner and its affiliates.

        In the event of removal of the general partner under circumstances where cause exists or withdrawal of the general partner where that withdrawal violates EPB's partnership agreement, a successor general partner will have the option to

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purchase the general partner interest and the incentive distribution rights of the departing general partner for a cash payment equal to the fair market value of that combined interest, as determined under EPB's partnership agreement. In this context, cause means a situation where a court has entered a final, non-appealable judgment finding the general partner liable for actual fraud or willful misconduct in its capacity as general partner. In all other withdrawals or removals, the departing general partner will have the option to require the successor general partner to purchase the general partner interest for the same cash amount. If the option described above is not exercised by either the departing or the successor general partner, as applicable, the departing general partner's general partnership interest and incentive distribution rights will automatically convert into common units pursuant to a valuation made by an investment banking firm or other independent expert.

Filling Vacancies on the Board; Replacing the General Partner

        KMI

 

EPB

        Vacancies on the board of directors, however resulting, may be filled by the affirmative vote of a majority of the directors then in office, even if less than a quorum. However, at any time prior to the termination of a specified provision of the shareholders agreement, such vacancies shall be filled only with nominees chosen to fill such vacancies in accordance with the provisions of the shareholders agreement. Vacancies may not be filled by the stockholders.

 

Upon a voluntary withdrawal by the general partner, the holders of at least a majority of the outstanding EPB units, including EPB units owned by the general partner and its affiliates, may select a successor to the withdrawing general partner. If, prior to the effective date of the general partner's withdrawal, a successor is not elected or EPB does not receive an opinion of counsel regarding tax and limited liability matters (as discussed under "—Removal of Directors; Withdrawal or Removal of General Partner" above), EPB will be dissolved, unless within a specified period after that withdrawal, the holders of a majority of the outstanding EPB units agree in writing to continue EPB's business and to appoint a successor general partner.

        Any removal of the general partner is also subject to the approval of a successor general partner by the vote of the holders at least a majority of the outstanding EPB units, including units owned by the general partner and its affiliates, as well as EPB's receipt of an opinion of counsel regarding limited liability and tax matters.

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Transfer of General Partner Interest and Incentive Distribution Rights

        KMI

 

EPB

        Not applicable.

 

Prior to December 31, 2017, EPB's general partner may not transfer all or any portion of its general partner interest to another person, unless such transfer (i) has been approved by the holders of at least a majority of the outstanding common units, excluding common units held by the general partner and its affiliates, or (ii) is of all, but not less than all, of the general partner interest to an affiliate of the general partner, or to another entity as part of the merger or consolidation of the general partner into another entity or the transfer by the general partner of all or substantially all of its assets to another entity. After December 31, 2017, EPB's general partner may transfer all or any portion of its general partner interest without EPB unitholder approval.

        Prior to December 31, 2017, a holder of incentive distribution rights may transfer any or all of such rights without unitholder approval to an affiliate of the holder, or to another entity as part of the merger or consolidation of the holder with or into such other person, the transfer of all or substantially all of the holder's assets to such other person or the sale of all the ownership interests in such holder. Any other transfer of incentive distribution rights before December 31, 2017 would require the approval of at least a majority of the outstanding common units, excluding EPB common units held by the general partner and its affiliates. After December 31, 2017, a holder of incentive distribution rights may transfer any or all of such rights without EPB unitholder approval.


Limited Call Rights

 

 

        KMI

 

EPB

        Not applicable.

 

If at any time EPB's general partner and its affiliates own more than 75% of the common units, the general partner will have the right, which it may assign and transfer to any of its affiliates or to EPB, to purchase all, but not less than all, of the EPB common units held by unaffiliated persons as of a purchase date to be selected by the general partner, on at least ten but not more than 60 days' notice. The purchase price in the event of this purchase shall be the greater of the current market price, as defined in EPB's

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partnership agreement, for the common units as of a specified date, or the highest cash price paid by the general partner or any of its affiliates for any common units they purchased within the 90 days preceding that specified date.

Preemptive Rights

 

 

        KMI

 

EPB

        KMI common stockholders have no preemptive rights to additional shares of KMI common stock or other securities.

 

The general partner has the right, which it may from time to time assign in whole or in part to any of its affiliates, to purchase from EPB common units or other partnership securities whenever, and on the same terms that, EPB issues those units or other securities to persons other than the general partner and its affiliates, to the extent necessary to maintain the percentage interest of the general partner and its affiliates that existed immediately prior to each issuance.

        The holders of EPB common units have no preemptive rights to acquire additional EPB common units or other partnership interests.


Amendment of Governing Documents

 

 

        KMI

 

EPB

  
        KMI's certificate of incorporation may be amended in any manner provided by the DGCL. Because the KMI common stock is the only class of KMI capital stock that remains outstanding, KMI's certificate of incorporation may be amended with the affirmative vote of a majority of the outstanding KMI common stock, except that any provision requiring a supermajority vote of stockholders may only be amended with such supermajority vote.

        KMI's certificate of incorporation and bylaws provide that the bylaws may be amended, altered, repealed or new bylaws may be adopted by KMI's board of directors or by the affirmative vote of holders of shares representing two-thirds of the total voting power of all of KMI's outstanding capital stock then entitled to vote at any annual or special meeting for the election of directors. In addition, any adoption, alteration, amendment or repeal of any bylaw by the board of directors requires the affirmative vote of:

a majority of the directors chosen for nomination by Mr. Kinder (if any);

a majority of the directors chosen for nomination by the Sponsor Investors (if any);

    
        Amendments to EPB's partnership agreement may be proposed only by or with the consent of the general partner. Proposed amendments, other than those described below, must be approved by holders of at least a majority of the outstanding EPB units. However, if the effect of an amendment would have a material adverse effect on the rights or preferences of any class of outstanding EPB units in relation to any other class of outstanding EPB units, the approval of a majority of the outstanding EPB units of the class affected is required to adopt the amendment. Any amendment that reduces the voting percentage required to take any action must be approved by the affirmative vote of limited partners constituting not less than the voting requirement sought to be reduced.

        The general partner may generally make amendments to EPB's partnership agreement without the approval of any limited partner or assignee to reflect:

a change in EPB's name, the location of its principal place of business, its registered agent or its registered office;

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two-thirds of the directors chosen for nomination by the Sponsor Investors (if any) in the case of an alteration, amendment or repeal of specified provisions of KMI's bylaws with respect to directors, removal of officers, securities of other corporations and amendments of the bylaws; and

the director(s) chosen by a Sponsor Investor (if any) in the case of an alteration, amendment or repeal of any provision of KMI's bylaws that would treat such Sponsor Investor adversely.

 

the admission, substitution, withdrawal or removal of partners in accordance with the partnership agreement;

a change that the general partner determines is necessary or appropriate to qualify or continue EPB's qualification as a limited partnership or a partnership in which its limited partners have limited liability under the laws of any state or to ensure that EPB will not be treated as an association taxable as a corporation or otherwise taxed as an entity for federal income tax purposes;

an amendment that is necessary, in the opinion of EPB's counsel, to prevent EPB or the general partner or its directors, officers, agents or trustees from in any manner being subjected to the provisions of the Investment Company Act of 1940, the Investment Advisors Act of 1940, or "plan asset" regulations adopted under the Employee Retirement Income Security Act of 1974;

a change that the general partner determines is necessary or appropriate in connection with the authorization for issuance of any class or series of securities;

 

any amendment expressly permitted in EPB's partnership agreement to be made by the general partner acting alone;

an amendment effected, necessitated or contemplated by a merger agreement that has been approved pursuant to the terms of EPB's partnership agreement;

any amendment that the general partner determines to be necessary or appropriate for the formation by EPB of, or EPB's investment in, any corporation, partnership or other entity, as otherwise permitted by the partnership agreement;

a change in EPB's fiscal year or taxable year and related changes;

conversions into, mergers with or conveyances to another limited liability entity that is newly formed and has no assets, liabilities or operations at the time of the conversion, merger or conveyance other than those it receives by way of the conversion, merger or conveyance; or

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any other amendments substantially similar to any of the matters described above.

        EPB's partnership agreement contains restrictions on other amendments, including amendments that would enlarge the obligations of a limited partner without its consent, restrict in any way any action by or rights of the general partner as set forth in EPB's partnership agreement, or reduce amounts distributable, reimbursable or payable by EPB to the general partner.

        No amendments, other than those that may be made by the general partner without the approval of the limited partners or that are effected in a merger, will become effective without the approval of at least 90% of the outstanding units unless EPB obtains an opinion of counsel with respect to specified tax and limited liability matters.


Voting Rights; Meetings; Action by Written Consent

        KMI

 

EPB

  
        Each share of KMI common stock entitles the holder to one vote with respect to each matter presented to KMI's stockholders on which the holders of KMI common stock are entitled to vote. Holders of KMI's capital stock do not have cumulative voting rights.

        KMI's bylaws provide that special meetings of the stockholders may be called only upon the request of the chairman of the board, the chief executive officer, the president or the board of directors or upon the written request of stockholders of record of not less than 10% of all voting power entitled to vote at such meeting. KMI's bylaws prohibit the conduct of any business at a special meeting other than as specified in the notice for such meeting.

        KMI's certificate of incorporation provides that any vote or similar action required or permitted to be taken by holders of KMI common stock must be effected at a duly called annual or special meeting of its stockholders and may not be effected by consent in writing by such stockholders.

    
        EPB's unitholders are entitled to vote on the following matters:

merger or consolidation of EPB proposed by the general partner;

sale, exchange or other disposition of all or substantially all of EPB's assets or those of its subsidiaries;

election of a successor general partner upon the withdrawal of the current general partner;

the removal of the general partner;

the election by the general partner to dissolve EPB;

EPB's continuation after specified events of dissolution;

in specified circumstances, the general partner's transfer of its general partner interest or the transfer of incentive distribution rights; and

certain amendments of EPB's partnership agreement.

        Except as described under "—Business Combinations," unitholders who are record holders of EPB units on the record date set

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pursuant to EPB's partnership agreement will be entitled to notice of, and to vote at, meetings of EPB's limited partners and to act upon matters for which unitholders have the right to vote or act. Each record holder has a vote according to such holder's percentage interest in EPB. EPB units that are owned by an assignee who is a record holder, but who has not yet been admitted as a limited partner, will be voted by the general partner at the written direction of the record holder. Absent direction of this kind, such units will not be voted, except that, in the case of EPB units held by the general partner on behalf of non-citizen assignees, the general partner will distribute the votes on those EPB units in the same ratios as the votes of limited partners on other units are cast.

        If authorized by the general partner, any action that is required or permitted to be taken by the limited partners may be taken either at a meeting of the limited partners or without a meeting if consents in writing describing the action so taken are signed by holders of the number of EPB units as would be necessary to authorize or take that action at a meeting at which all the limited partners were present and voted.

        Special meetings of the limited partners may be called by the general partner or by limited partners owning at least 20% of the outstanding units of the class for which a meeting is proposed. The limited partners may vote either in person or by proxy at meetings. Two-thirds, or a majority, if that is the vote required to take action at the meeting in question, of the outstanding EPB units of the class for which a meeting has been called, represented in person or by proxy, will constitute a quorum.


Stockholder Proposals and Director Nominations

 

 

        KMI

 

EPB

        KMI's bylaws establish advance notice procedures with respect to stockholder proposals for annual meetings and stockholder nomination of candidates for election as directors. In order for any matter to be "properly brought" before a meeting, a stockholder will have to comply with advance notice requirements and provide KMI with specified information. Generally, that notice must be given to the Secretary of KMI no later than the 90th day, and no earlier and the

 

Not applicable.

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120th day, in advance of the anniversary of the previous year's annual meeting. In addition, the nomination and removal of directors, including the filling of board vacancies, must comply with the provisions of the shareholders agreement regarding composition of the KMI board.

 

 

Indemnification and Limitation on Liability

 

 

        KMI

 

EPB

 
        The DGCL authorizes corporations to limit or eliminate the personal liability of directors to corporations and their stockholders for monetary damages for breaches of directors' fiduciary duties. The DGCL does not permit exculpation for liability:

for breach of duty of loyalty;

for acts or omissions not in good faith or involving intentional misconduct or knowing violation of law;

under Section 174 of the DGCL (unlawful dividends and stock repurchases); or

for transactions from which the director derived an improper personal benefit.

        KMI's certificate of incorporation eliminates the personal liability of directors for monetary damages for actions taken as a director to the fullest extent authorized by the DGCL.

        KMI's certificate of incorporation and bylaws provide that it shall indemnify its directors and officers, and may indemnify its employees, agents and other persons, to the fullest extent permitted by law. KMI also is expressly authorized to carry directors' and officers' insurance providing indemnification for its directors, officers and certain employees and agents for any liabilities incurred in any such capacity, whether or not it would have the power to indemnify such person against such liability.

    
        Under EPB's partnership agreement, in most circumstances, EPB will, to the fullest extent permitted by law, indemnify the general partner, any departing general partner, any person who is or was an affiliate of the general partner or any departing general partner, any person who is or was an officer, director, member, manager, partner, fiduciary or trustee of the general partner, any departing general partner or any affiliate of the general partner or any departing general partner, any person who is or was serving as director, officer, member, manager, partner, fiduciary or trustee of another person at the request of our general partner or any departing general partner, and any person designated by the general partner.

        Any indemnification under these provisions will only be out of EPB's assets. Unless it otherwise agrees, the general partner will not be personally liable for, or have any obligation to contribute or lend funds or assets to EPB to enable EPB to effectuate, indemnification. EPB may purchase insurance against liabilities asserted against and expenses incurred by persons for EPB's activities, regardless of whether EPB would have the power to indemnify the person against liabilities under the partnership agreement.

        In addition to the other more specific provisions limiting the obligations of the general partner and other indemnitees, EPB's partnership agreement provides that the indemnitees will not be liable for monetary damages to EPB, the limited partners or assignees for losses unless there has been a final and non-appealable judgment that the indemnitee acted in bad faith or engaged in fraud, willful misconduct or, in the case of a criminal matter, acted with knowledge that the indemnitee's conduct was criminal.

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Conflicts of Interest; Fiduciary Duties

 

 

        KMI

 

EPB

  
        Under the DGCL, a transaction involving an interested officer or director is not void or voidable solely because of the officer's or director's interest if:

the material facts are disclosed or made known to the board of directors (or committee thereof) and a majority of the disinterested directors vote to authorize the transaction in good faith;

the material facts are disclosed or made known to the stockholders entitled to vote thereon and the transaction is specifically approved in good faith by vote of the stockholders; or

the transaction is fair to the corporation at the time it is authorized, approved or ratified by the board of directors (or committee thereof) or the stockholders.

        KMI's certificate of incorporation provides that the Sponsor Investors and certain of their affiliates (including any director nominated by the Sponsor Investors) have no obligation to offer KMI or its wholly owned subsidiaries an opportunity to participate in business opportunities presented to the Sponsor Investors or such affiliates (other than KMI and its wholly owned subsidiaries) even if the opportunity is one that KMI or one of its wholly owned subsidiaries might reasonably have pursued, and that neither the Sponsor Investors nor their respective affiliates will be liable to KMI or any of its wholly-owned subsidiaries for breach of any duty by reason of any such activities. However, each such person serving as a director of KMI or one of its wholly owned subsidiaries must tell KMI about any business opportunity offered to such person solely in his or her capacity as such a director.

    
        EPB's partnership agreement contains provisions that limit the general partner's fiduciary duties to EPB and the EPB unitholders. EPB's partnership agreement also restricts the remedies available to EPB unitholders for actions taken that might, without those limitations, constitute breaches of fiduciary duty.

        Whenever a conflict arises between the general partner or its affiliates, on the one hand, and EPB or any partner, on the other, the general partner will resolve that conflict. The general partner may, but is not required to, seek the approval of such resolution from the conflicts committee of the board of directors of the general partner. Any resolution or course of action with respect to such conflict shall be permitted and deemed approved by all partners, and shall not constitute a breach of EPB's partnership agreement, of any agreement contemplated thereby or of any duties stated or implied by law or equity, if the resolution or course of action with respect to the conflict is:

approved by the conflicts committee, although no party is obligated to seek that approval and the general partner may adopt a resolution or course of action that has not received that approval;

approved by the vote of a majority of the outstanding EPB common units, excluding any EPB common units owned by the general partner or any of its affiliates;

on terms no less favorable to EPB than those generally being provided to or available from unrelated third parties; or

fair and reasonable to EPB, taking into account the totality of the relationships between the parties involved, including other transactions that may be particularly favorable or advantageous to EPB.

        In resolving a conflict, the general partner may, unless the resolution is specifically provided for in EPB's partnership agreement, consider any factors it determines in good faith to consider when resolving a conflict. In connection with any such resolution or approval by the board of

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directors or the conflicts committee, it shall be presumed that, in making its decision, the board of directors or the conflicts committee acted in good faith, and in any proceeding brought by any unitholder or by or on behalf of such unitholder or any other unitholder or EPB challenging such approval, the person bringing or prosecuting such proceeding shall have the burden of overcoming such presumption.

        EPB's partnership agreement contains provisions that waive or consent to conduct by the general partner and its affiliates that might otherwise raise issues as to compliance with fiduciary duties or applicable law. For example, EPB's partnership agreement permits the general partner to make a number of decisions in its individual capacity, as opposed to its capacity as general partner. This entitles the general partner to consider only the interests and factors that it desires and it has no duty or obligation to give any consideration to any interest of, or factors affecting, EPB, EPB's affiliates or any limited partner.

        Except for the general partner itself, indemnitees are permitted to compete with EPB and are not restricted from engaging in any business, and no such activity shall breach any duty to EPB, its subsidiaries or any partners. Neither EPB, its subsidiaries, any limited partner nor any other person shall have any rights by virtue of EPB's partnership agreement or the partnership relationship established thereby in any business ventures of such indemnitee and such indemnitees shall have no obligation to offer any interest in any such business ventures to EPB, its subsidiaries, any limited partner or any other person.


Taxation

 

 

        KMI

 

EPB

        KMI is subject to U.S. federal income taxes on its taxable income.

        Cash distributions to stockholders of KMI are taxable to each stockholder as ordinary dividend income to the extent distributed out of KMI's current and accumulated "earnings and profits" (as determined under U.S. federal income tax principles). A portion of the cash distributed to KMI shareholders by KMI after the merger may

 

EPB is a flow-through entity for U.S. federal income tax purposes, which means that it is not subject to entity-level U.S. federal income taxes.

        Each EPB unitholder receives a Schedule K-1 from EPB reflecting such unitholders' share of EPB's items of income, gain, loss and deduction for each fiscal year following the end of such fiscal year.

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exceed KMI's current and accumulated earnings and profits. Cash distributions in excess of KMI's current and accumulated earnings and profits are treated as a non-taxable return of capital, which reduce a stockholder's adjusted tax basis in such holder's KMI shares and, to the extent the cash distribution exceeds such holder's adjusted tax basis, as gain from the sale or exchange of such shares.

 

 

Non-Citizen Assignees; Redemption

 

 

        KMI

 

EPB

        Not applicable.

 

If EPB is or becomes subject to federal, state or local laws or regulations that, in the reasonable determination of the general partner, provide for the cancellation or forfeiture of any property that EPB has an interest in because of the nationality, citizenship or other related status of any limited partner or assignee, the general partner may require each limited partner or assignee to furnish information about his nationality, citizenship or related status. If a limited partner or assignee fails to furnish this information within 30 days after a request for the information, or if the general partner determines after receipt of the information that the limited partner or assignee is not an eligible citizen, EPB may redeem the units held by the limited partner or assignee at the lesser of their current market price and the price paid by the limited partner, and the limited partner or assignee may be treated as a non-citizen assignee. In addition to other limitations on the rights of an assignee that is not a substituted limited partner, a non-citizen assignee does not have the right to direct the voting of his units and may not receive distributions in kind upon EPB's liquidation.

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PROPOSAL 2: ADJOURNMENT OF THE EPB SPECIAL MEETING

        If there are insufficient votes at the time of the special meeting to approve the EPB merger agreement, we may propose to adjourn the EPB special meeting for the purpose of soliciting additional proxies to approve the EPB merger agreement. We currently do not intend to propose adjournment at the special meeting if there are sufficient votes to approve the EPB merger agreement. Pursuant to the terms of the EPB partnership agreement, EPGP may adjourn the EPB special meeting without limited partner action. If the proposal to adjourn the special meeting for the purpose of soliciting additional proxies is submitted to the EPB unitholders for approval, such approval requires (i) if a quorum does not exist, the affirmative vote of the holders of a majority of the EPB units present in person or by proxy at the special meeting or (ii) if a quorum does exist, the affirmative vote of a majority of the outstanding EPB units.

        The EPGP board unanimously recommends that you vote FOR the EPB adjournment proposal.

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EPB UNITHOLDER PROPOSALS

        Under the Delaware LP Act and the EPB partnership agreement, we are not required to hold an annual meeting of our EPB unitholders (limited partners). Ownership of EPB common units does not entitle EPB unitholders to make proposals at the EPB special meeting. Under EPB's partnership agreement, only the general partner or limited partners owning 20% or more of the outstanding EPB units of the class for which a meeting is proposed may call a meeting. In any case, limited partners are not allowed to vote on matters that would cause the limited partners to be deemed to be taking part in the management and control of the business and affairs of EPB so as to jeopardize the limited partners' limited liability under the Delaware LP Act or the law of any other state in which EPB is qualified to do business.

KMI STOCKHOLDER PROPOSALS

        KMI will hold a regular annual meeting of stockholders in 2015 regardless of whether the Transactions are completed.

        Stockholders interested in submitting a proposal for inclusion in the proxy materials for KMI's annual meeting of stockholders in 2015 may do so by following the procedures prescribed in Rule l4a-8 under the Exchange Act. To be eligible for inclusion, stockholder proposals must be received by KMI's corporate secretary at 1001 Louisiana Street, Suite 1000, Houston, Texas 77002 no later than December 10, 2014.

        Stockholders of record who do not submit proposals for inclusion in the proxy statement but who intend to submit a proposal at the 2015 annual meeting, and stockholders of record who intend to submit nominations for directors at the 2015 annual meeting, must provide written notice. Such notice should be addressed to the corporate secretary and received at KMI's principal executive offices not less than 90 days nor more than 120 days prior to the first anniversary of the 2014 annual meeting. Under this criterion, stockholders must provide such notice during the period from January 19, 2015 to February 18, 2015.

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LEGAL MATTERS

        The validity of the KMI common stock to be issued in connection with the EPB merger and being offered hereby will be passed upon for KMI by Bracewell & Giuliani LLP, Houston, Texas. Weil, Gotshal & Manges LLP also has represented KMI in connection with the merger described herein.

EXPERTS

KMI

        The consolidated financial statements and management's assessment of the effectiveness of internal control over financial reporting (which is included in Management's Report on Internal Control Over Financial Reporting) incorporated in this proxy statement/prospectus by reference to KMI's Annual Report on Form 10-K for the year ended December 31, 2013 have been so incorporated in reliance on the report (which contains an explanatory paragraph on the effectiveness of internal control over financial reporting due to the exclusion of Copano Energy, L.L.C. from their audit of internal control over financial reporting as it was acquired by KMP on May 1, 2013) of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.

        The description of the review performed by Netherland, Sewell & Associates, Inc., independent petroleum consultants, included in KMI's Annual Report on Form 10-K for the year ended December 31, 2013, is incorporated herein by reference.

        The description of the review performed by Ryder Scott Company, L.P., independent petroleum consultants, included in KMI's Annual Report on Form 10-K for the year ended December 31, 2013, is incorporated herein by reference.


EPB

        The consolidated financial statements of EPB as of December 31, 2013 and 2012 and for each of the two years in the period ended December 31, 2013 and management's assessment of the effectiveness of internal control over financial reporting (which is included in Management's Report on Internal Control over Financial Reporting) as of December 31, 2013 incorporated in this proxy statement/prospectus by reference to EPB's Annual Report on Form 10-K for the year ended December 31, 2013 have been so incorporated in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.

        The consolidated financial statements of EPB for the year ended December 31, 2011, incorporated by reference in the proxy statement of EPB, which is referred to and made a part of this prospectus and registration statement of KMI, have been audited by Ernst & Young LLP, independent registered public accounting firm, as set forth in their report incorporated herein by reference, and are included in reliance upon such report given on the authority of such firm as experts in accounting and auditing.

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WHERE YOU CAN FIND MORE INFORMATION

        KMI has filed with the SEC a registration statement under the Securities Act of which this proxy statement/prospectus forms a part, which registers the shares of KMI common stock to be issued to EPB unitholders in connection with the EPB merger. The registration statement, including the exhibits and schedules attached to the registration statement, contains, among other things, additional relevant information about KMI and the KMI common stock. The rules and regulations of the SEC allow KMI and EPB to omit certain information that is included in the registration statement from this proxy statement/prospectus.

        KMI and EPB file annual, quarterly and special reports and other information with the SEC. KMI also files proxy statements with the SEC. The SEC allows KMI and EPB to "incorporate by reference" into this proxy statement/prospectus the information they file with the SEC, which means that they can disclose important information to you by referring you to those documents. This proxy statement/prospectus contains summaries of certain provisions contained in some of the documents described herein, but reference is made to the actual documents for complete information. All of the summaries are qualified in their entirety by reference to the actual documents. The information incorporated by reference is an important part of this proxy statement/prospectus, and information that KMI or EPB files later with the SEC will automatically update and supersede this information as well as the information included in this proxy statement/prospectus. Some documents or information, such as that called for by Items 2.02 and 7.01 of Form 8-K, or the exhibits related thereto under Item 9.01 of Form 8-K, are deemed furnished and not filed in accordance with SEC rules. None of those documents and none of that information is incorporated by reference into this proxy statement/prospectus. KMI and EPB incorporate by reference the documents listed below and any future filings they make with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act until the termination of this offering:


KMI's Filings (SEC File No. 001-35081)

        KMI will provide a copy of any document incorporated by reference in this proxy statement/prospectus and any exhibit specifically incorporated by reference in the documents it incorporates by reference, without charge, by written or oral request directed to KMI at the following address and telephone number:


EPB's Filings (SEC File No. 001-33825)

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        EPB will provide a copy of any document incorporated by reference in this proxy statement/prospectus and any exhibit specifically incorporated by reference in the documents it incorporates by reference, without charge, by written or oral request directed to EPB at the following address and telephone number:

        KMI and EPB also make available free of charge on their internet website at www.kindermorgan.com the reports and other information filed by KMI and EPB with the SEC, as soon as reasonably practicable after such material is electronically filed or furnished to the SEC. Neither KMI's nor EPB's websites, nor the information contained on their websites, is part of this proxy statement/prospectus or the documents incorporated by reference.

        The SEC maintains an Internet website that contains reports, proxy and information statements and other material that are filed through the SEC's Electronic Data Gathering, Analysis and Retrieval (EDGAR) System. This system can be accessed at www.sec.gov. You can find information that KMI and EPB file with the SEC by reference to their names or to their SEC file numbers. You also may read and copy any document KMI or EPB files with the SEC at the SEC's public reference room located at:

        Please call the SEC at 1-800-SEC-0330 for further information about the public reference room and its copy charges. KMI's and EPB's SEC filings are also available to the public through the New York Stock Exchange at 20 Broad Street, New York, New York 10005.

        The information concerning EPB contained in this proxy statement/prospectus or incorporated by reference has been provided by EPB, and the information concerning KMI and its other subsidiaries, including KMP and KMR, contained in this proxy statement/prospectus or incorporated by reference has been provided by KMI.

        In order to receive timely delivery of requested documents in advance of the special meeting, your request should be received no later than November 11, 2014. If you request any documents, KMI or EPB will mail them to you by first class mail, or another equally prompt means, within one business day after receipt of your request.

        In addition, if you would like to request any documents incorporated by reference in this proxy statement/prospectus prior to deciding what merger consideration to elect, please do so at least five business days prior to the election deadline, which will be identified in the form of election provided to you in a separate mailing following the special meeting.

        Neither KMI nor EPB has authorized anyone to give any information or make any representation about the EPB merger, KMI or EPB that is different from, or in addition to, that contained in this proxy statement/prospectus or in any of the materials that have been incorporated by reference. Therefore, if any one distributes this type of information, you should not rely on it. If you are in a

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jurisdiction where offers to exchange or sell, or solicitations of offers to exchange or purchase, the securities offered by this proxy statement/prospectus or the solicitation of proxies is unlawful, or you are a person to whom it is unlawful to direct these types or activities, then the offer presented in this proxy statement/prospectus does not extend to you. The information contained in this proxy statement/prospectus speaks only as of its date, or in the case of information in a document incorporated by reference, as of the date of such document, unless the information specifically indicates that another date applies.

        Should you want information regarding KMP or KMR, please refer to the annual, quarterly and special reports, as applicable, filed with the SEC regarding that entity.

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UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS

        In the Transactions, KMI will acquire all of the outstanding common units of KMP and EPB and all the outstanding shares of KMR that KMI and its subsidiaries do not already own (referred to in these pro forma financial statements as "the publicly held units or shares"). At the effective time of the mergers; (i) each publicly held KMR share will be converted into the right to receive 2.4849 shares of KMI common stock; (ii) through the election and proration mechanisms in the KMP merger agreement, on average, each common unit held by a public KMP unitholder will be converted into the right to receive 2.1931 shares of KMI common stock and $10.77 in cash; and (iii) through the election and proration mechanisms in the EPB merger agreement, on average, each common unit held by a public EPB unitholder will be converted into the right to receive 0.9451 shares of KMI common stock and $4.65 in cash. The cash payments to the public unitholders of KMP and EPB, based on the respective publicly held units outstanding as of September 30, 2014, would total approximately $3.9 billion.

        The unaudited pro forma condensed combined financial information has been developed by applying pro forma adjustments to the historical audited and unaudited consolidated financial statements of KMI. The historical consolidated financial statements of KMI consolidate KMP, EPB, and KMR, because KMI currently controls these entities. The unaudited pro forma condensed combined balance sheet as of June 30, 2014 of KMI has been prepared to give effect to the Transactions as if they had occurred on June 30, 2014. The unaudited pro forma condensed combined statements of income of KMI for the six months ended June 30, 2014 and year ended December 31, 2013, have been prepared to give effect to the Transactions as if they had occurred on January 1, 2013.

        The Transactions will be accounted for in accordance with Financial Accounting Standards Board Accounting Standards Codification (ASC) 810, Consolidation—Overall—Changes in a Parent's Ownership Interest in a Subsidiary (ASC 810). Because KMI controls KMP, EPB, and KMR both before and after the Transactions, the changes in KMI's ownership interest in KMP, EPB, and KMR will be accounted for as an equity transaction and no gain or loss will be recognized in KMI's consolidated statements of income resulting from the Transactions. In addition, the tax effects of the Transactions are presented in additional paid-in capital consistent with ASC 740, Income Taxes (ASC 740). Since the KMI historical financial information includes the accounts of KMP, EPB and KMR, the historical financial information of those entities has not been shown separately.

        The unaudited pro forma condensed combined financial statements include pro forma adjustments that are factually supportable and directly attributable to the Transactions. In addition, with respect to the unaudited pro forma condensed combined statements of income, pro forma adjustments have been made only for items that are expected to have a continuing impact on the combined results.

        The unaudited pro forma condensed combined financial statements should be read in conjunction with (i) the historical audited consolidated financial statements and related notes included in the respective Annual Reports on Form 10-K for the year ended December 31, 2013 for KMI, KMP, EPB and KMR; and (ii) the unaudited consolidated financial statements and related notes included in the respective Quarterly Reports on Form 10-Q for the six months ended June 30, 2014 for KMI, KMP, EPB and KMR.

        The unaudited pro forma adjustments are based on available preliminary information and certain assumptions that KMI believes are reasonable under the circumstances. The unaudited pro forma condensed combined financial statements are presented for informational purposes only and are not necessarily indicative of the results that might have occurred had the Transactions taken place on June 30, 2014 for balance sheet purposes, and on January 1, 2013 for statements of income purposes, and are not intended to be a projection of future results. Actual results may vary significantly from the results reflected because of various factors. All pro forma adjustments and their underlying assumptions are described more fully in the notes to the unaudited pro forma condensed combined financial statements.

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Kinder Morgan, Inc.

Unaudited Pro Forma Condensed Combined Balance Sheet

As of June 30, 2014

(In Millions)

 
  KMI
Historical
  Pro Forma
Adjustments
   
  Combined
Pro Forma
 

ASSETS

                       

Current assets

  $ 3,367   $ 90   (a)   $ 3,488  

          39   (b)        

          (8 ) (c)        

Property plant and equipment, net

    37,607             37,607  

Investments

    5,862             5,862  

Goodwill

    24,653             24,653  

Deferred charges and other assets

    4,875     3,506   (d)     8,385  

          4   (e)        
                   

Total Assets

  $ 76,364   $ 3,631       $ 79,995  
                   
                   

LIABILITIES AND STOCKHOLDERS' EQUITY

                       

Current liabilities

  $ 6,487   $ 90   (f)   $ 11,280  

          4,703   (g)        

Long-term debt

    34,521     (650 ) (g)     33,871  

Deferred income taxes

    4,554     (4,554 ) (d)      

Other long-term liabilities and deferred credits

    2,147             2,147  
                   

Total Liabilities

    47,709     (411 )       47,298  
                   

Stockholders' Equity

                       

Class P shares

    10     11   (h)     21  

Additional paid-in capital

    14,339     19,777   (h)     34,116  

Retained deficit

    (1,661 )   (4 ) (h)     (1,665 )

Accumulated other comprehensive loss

    (68 )   (36 ) (h)     (104 )
                   

Total Kinder Morgan, Inc.'s Stockholders' Equity

    12,620     19,748         32,368  

Noncontrolling interests

    16,035     (15,706 ) (h)     329  
                   

Total Stockholders' Equity

    28,655     4,042         32,697  
                   

Total Liabilities and Stockholders' Equity

  $ 76,364   $ 3,631       $ 79,995  
                   
                   

   

The accompanying notes are an integral part of this unaudited pro forma condensed combined financial statement.

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Kinder Morgan, Inc.

Unaudited Pro Forma Condensed Combined Statement of Income

For the Six Months Ended June 30, 2014

(In Millions, Except Per Share Amounts)

 
  KMI
Historical
  Pro Forma
Adjustments
  Combined
Pro Forma
 

Revenues

  $ 7,984   $   $ 7,984  

Operating Costs and Expenses

   
 
   
 
   
 
 

Cost of sales

    3,253         3,253  

Other operating expenses

    2,571         2,571  
               

Total Operating Costs and Expenses

    5,824         5,824  
               

Operating income

    2,160         2,160  
               

Other Income (Expense)

                   

Earnings from equity investments

    199         199  

Interest, net

    (888 )   (44 )(i)   (932 )

Other, net

    5         5  
               

Total Other (Expense) Income

    (684 )   (44 )   (728 )
               

Income from Continuing Operations Before Income Taxes

    1,476     (44 )   1,432  

Income tax expense

    (378 )   (140 )(j)   (518 )
               

Net Income

    1,098     (184 )   914  

Net income attributable to noncontrolling interests

    (527 )   524   (k)   (3 )
               

Net Income Attributable to Kinder Morgan, Inc. 

  $ 571   $ 340   $ 911  
               
               

Basic and Diluted Earnings Per Common Share

  $ 0.55         $ 0.43 (l)(m)
                 
                 

Basic and Diluted Weighted-Average Number of Shares Outstanding

    1,028     1,090   (l)   2,118 (l)(m)
               
               

   

The accompanying notes are an integral part of this unaudited pro forma condensed combined financial statement.

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Kinder Morgan, Inc.

Unaudited Pro Forma Condensed Combined Statement of Income

For the Year Ended December 31, 2013

(In Millions, Except Per Share Amounts)

 
  KMI
Historical
  Pro Forma
Adjustments
  Combined
Pro Forma
 

Revenues

  $ 14,070   $   $ 14,070  

Operating Costs and Expenses

   
 
   
 
   
 
 

Costs of sales

    5,253         5,253  

Other operating expenses

    4,827         4,827  
               

Total Operating Costs and Expenses

    10,080         10,080  
               

Operating income

    3,990         3,990  
               

Other Income (Expense)

                   

Earnings from equity investments

    327         327  

Interest, net

    (1,675 )   (218 )(i)   (1,893 )

Other, net

    796         796  
               

Total Other (Expense) Income

    (552 )   (218 )   (770 )
               

Income from Continuing Operations Before Income Taxes

    3,438     (218 )   3,220  

Income tax expense

    (742 )   (327 )(j)   (1,069 )
               

Income from Continuing Operations

    2,696     (545 )   2,151  

Loss on Sale of Discontinued Operations, Net of Tax

    (4 )       (4 )
               

Net Income

    2,692     (545 )   2,147  

Net income attributable to noncontrolling interests

    (1,499 )   1,495   (k)   (4 )
               

Net Income Attributable to Kinder Morgan, Inc. 

  $ 1,193   $ 950   $ 2,143  
               
               

Basic and Diluted Earnings Per Common Share From Continuing Operations

  $ 1.15         $ 1.01 (l)(m)
                 
                 

Basic and Diluted Weighted-Average Number of Shares Outstanding

    1,036     1,090   (l)   2,126 (l)(m)
               
               

   

The accompanying notes are an integral part of this unaudited pro forma condensed combined financial statement.

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Kinder Morgan, Inc.

Notes to Unaudited Pro Forma
Condensed Combined Financial Statements

Note 1—Basis of Pro Forma Presentation

        The unaudited pro forma condensed combined financial statements (the "Unaudited Pro Forma Statements") give effect to the Transactions as an equity transaction. The unaudited pro forma condensed combined balance sheet gives effect to the Transactions as if the they had occurred on June 30, 2014. The unaudited pro forma condensed combined statements of income for the six months ended June 30, 2014 and the year ended December 31, 2013 give effect to the Transactions as if they had occurred on January 1, 2013. The unaudited pro forma condensed combined statement of income for the year ended December 31, 2013 does not include pro forma effects of the previously consummated acquisitions of American Petroleum Tankers and State Class Tankers acquired January 1, 2014, certain oil and gas properties from Goldsmith Landreth acquired June 1, 2013 and Copano Energy, L.L.C. acquired May 1, 2013, because the impact on pro forma net income attributable to KMI was immaterial. The effects of these acquisitions are included in the historical financial statements of KMI since the respective dates of acquisition.

        These Unaudited Pro Forma Statements are presented for illustrative purposes only. The pro forma adjustments are based upon available information and the assumptions described below. The Unaudited Pro Forma Statements are not necessarily indicative of what the actual results of operations or financial position of KMI would have been if the Transactions had in fact occurred on the dates or for the periods indicated, nor do they purport to project the results of operations or financial position of KMI for any future periods or as of any date. The Unaudited Pro Forma Statements do not give effect to any cost savings, operating synergies, or revenue enhancements expected to result from the Transactions or the costs to achieve these cost savings, operating synergies, and revenue enhancements.

        These Unaudited Pro Forma Statements give effect to two committed borrowing facilities which are directly attributable to the Transactions and are described below.

        Bridge Facility

        On September 19, 2014, KMI entered into a Bridge Credit Agreement (the "Bridge Facility") with a syndicate of lenders. The Bridge Facility provides for up to a $5.0 billion term loan facility which will mature 364 days following the closing date of the Transactions. KMI may use borrowings under the Bridge Facility to pay cash consideration and transaction costs associated with the Transactions. KMI also may use a portion of the borrowings under the Bridge Facility to refinance certain term loan facility indebtedness. Interest on borrowings under the Bridge Facility will initially be calculated based on either (a) LIBOR plus an applicable margin ranging from 1.250% to 1.750% per annum based on the credit rating of KMI's senior unsecured non-credit enhanced long-term indebtedness for borrowed money ("KMI's Credit Rating") or (b) the greatest of (1) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1%, (2) the Prime Rate in effect for such day, and (3) the LIBOR Rate for a Eurodollar Loan with a one month interest period that begins on such day plus 1%, plus, in each case an applicable margin ranging from 0.250% to 0.750% per annum based on KMI's Credit Rating. In addition, in each case the applicable margin will increase by 0.25% for each 90 day period that any loans remain outstanding under the Bridge Facility. The Bridge Facility provides for the payment by KMI of certain fees, including but not limited to a ticking fee and a duration fee.

        Revolving Credit Facility

        On September 19, 2014, KMI entered into a replacement revolving credit agreement (the "Replacement Facility") with a syndicate of lenders. The Replacement Facility provides for up to $4.0 billion in borrowing capacity, which can be increased to $5.0 billion if certain conditions are met, and has a five-year term. In connection with the consummation of the Transactions, the Replacement

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Kinder Morgan, Inc.

Notes to Unaudited Pro Forma
Condensed Combined Financial Statements (Continued)

Note 1—Basis of Pro Forma Presentation (Continued)

Facility will replace (a) the existing credit agreement, dated as of May 6, 2014, by and among KMI, various lenders, and Barclays, as administrative agent ("KMI's Existing Credit Agreement"), (b) the facilities set forth in the credit agreement, dated as of May 1, 2013, among KMP, Wells Fargo Bank, National Association, as administrative agent and the other lenders and agents party thereto (the "KMP Credit Agreement") and (c) the facilities set forth in the credit agreement, dated May 27, 2011, among El Paso Pipeline Partners Operating Company, L.L.C., Wyoming Interstate Company, L.L.C., EPB, Bank of America, N.A., as administrative agent, and the other lenders and letter of credit issuers from time to time parties thereto (the "EPB Credit Agreement" and, together with KMI's Existing Credit Agreement and the KMP Credit Agreement, the "Prior Credit Facilities"). Borrowings under the Replacement Facility may be used for working capital and other general corporate purposes. Interest on the Replacement Facility will be calculated based on either (a) LIBOR plus an applicable margin ranging from 1.125% to 2.000% per annum based on KMI's Credit Rating or (b) the greatest of (1) the federal funds effective rate in effect on such day plus 1/2 of 1%, (2) the prime rate in effect for such day, and (3) the LIBOR Rate for a Eurodollar Loan with a one month interest period that begins on such day plus 1%, plus, in each case, an applicable margin ranging from 0.125% to 1.000% per annum based on KMI's Credit Rating. The Replacement Facility contains a financial covenant providing for a maximum debt to EBITDA ratio of 6.50 to 1.00 and various other covenants that are substantially consistent with the Prior Credit Facilities.

        The following is the estimated consideration for the Transactions calculated using actual share amounts (in millions, except per unit/share amounts):

Consideration

       

KMP public units exchanged(1)

    304  

Cash payment per KMP unit(2)

  $ 10.77  
       

Cash portion of consideration

  $ 3,274  

EPB public units exchanged(1)

    140  

Cash payment per EPB unit(2)

  $ 4.65  
       

Cash portion of consideration

  $ 650  
       

Total cash portion of consideration

  $ 3,924  
       

Total KMP units exchanged(1)

    304  

KMP exchange ratio per unit(2)

    2.1931  
       

KMI common stock assumed to be issued

    667  
       

Total EPB units exchanged(1)

    140  

EPB exchange ratio per unit(2)

    0.9451  
       

KMI common stock assumed to be issued

    132  
       

Total KMR shares exchanged(1)

    117  

KMR exchange ratio per share

    2.4849  
       

KMI common stock assumed to be issued

    291  
       

Total KMI common stock assumed to be issued

    1,090  

KMI Class P common share closing price as of October 16, 2014

  $ 36.82  
       

Fair value of equity portion of consideration(3)

  $ 40,127  
       

Total consideration (excluding debt assumed)(3)

  $ 44,051  
       
       

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Kinder Morgan, Inc.

Notes to Unaudited Pro Forma
Condensed Combined Financial Statements (Continued)

Note 1—Basis of Pro Forma Presentation (Continued)


(1)
Reflects publicly held KMP and EPB units and KMR shares outstanding as of September 30, 2014.

(2)
Reflects the average cash payment amount per unit and the average exchange ratio per unit to be received by the public KMP or EPB unitholders by reason of the election and proration provisions of the KMP and EPB merger agreements.

(3)
A $1 change in the price of a share of KMI common stock would change the total consideration by $1.1 billion, and the deferred tax asset and additional paid-in capital by approximately $0.3 billion for purposes of these Unaudited Pro Forma Statements.

Note 2—Pro Forma Adjustments and Assumptions

Unaudited Pro Forma Condensed Combined Balance Sheet Adjustments

(a)
Reflects the excess cash related to estimated borrowings of $4,703 million under the Bridge Facility, less (i) $3,924 million cash portion of the KMP and EPB consideration; (ii) $650 million for the extinguishment of a previously existing term loan facility; and (iii) $39 million of debt issuance costs. The $90 million of excess cash will be used to fund transaction costs which are reflected as a current liability. See footnote (f) below.

(b)
Reflects a $39 million increase in debt issuance costs associated with the Bridge Facility incurred as a direct result of the Transactions.

(c)
Reflects $8 million of cash used to pay debt issuance costs related to the restructuring of the Prior Credit Facilities into the Replacement Facility as a direct result of the Transactions. See Note 1.

(d)
Reflects the estimated impact on deferred income taxes resulting from the Transactions using KMI's statutory federal and state tax rate of 36.5%. The amount reflects a net adjustment of $8.5 billion to deferred income taxes, $7.7 billion of which relates to the effects of the change in ownership and the step-up in tax basis as a result of KMI's acquisition of the publicly held interests in KMP and EPB, resulting in a deferred tax asset. The remainder of the adjustment relates to estimated changes to other temporary differences and estimated changes to KMI's effective state tax rate. This adjustment also includes the elimination of $464 million in deferred charges associated with previously consummated transactions between entities under common control related to deferred taxes. The deferred income tax impact is an estimate based on preliminary information and assumptions used in preparing these Unaudited Pro Forma Statements and is subject to change.

(e)
Reflects $8 million of debt issuance costs associated with the restructuring of the Prior Credit Facilities into the Replacement Facility, partially offset by the write-off of $4 million of unamortized debt issuance costs related to the previously existing term loan facility and the Prior Credit Facilities. See Note 1.

(f)
Reflects estimated transaction costs of $90 million directly attributable to the Transactions. The transaction costs include fees related to financial advisory and legal services, and other professional fees expected to be paid in 2014 using a portion of the Bridge Facility proceeds. As the Transactions involve the acquisition of noncontrolling interests accounted for as an equity transaction, these costs will be recognized as an adjustment to additional paid-in capital, net of the estimated tax benefit, during the periods in which services are rendered.

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Kinder Morgan, Inc.

Notes to Unaudited Pro Forma
Condensed Combined Financial Statements (Continued)

Note 2—Pro Forma Adjustments and Assumptions (Continued)

(g)
Reflects the issuance of the Bridge Facility to fund the cash portion of the KMP and EPB consideration and to pay related transaction costs. The proceeds received from the Bridge Facility include an amount that will be used to extinguish a previously existing $650 million term loan facility which, pursuant to the existing credit agreement, is required to be repaid as a result of the Transactions. In addition, the Transactions result in the termination of the Prior Credit Facilities which had a combined outstanding balance of $1,333 million as of June 30, 2014 and are reflected as current liabilities in the KMI historical balance sheet.

(h)
The Transactions, which involve a change in KMI's ownership interests in its subsidiaries KMP, EPB and KMR, have been accounted for as equity transactions in accordance with ASC 810. As described in Note 2(d), the Transactions resulted in the recognition of a deferred tax asset totaling $8.5 billion. This tax impact is presented as an increase to additional paid-in capital consistent with the accounting for tax effects of transactions with noncontrolling shareholders pursuant to ASC 740. The following table reflects pro forma adjustments to components of Total Stockholders' Equity (in millions):

 
  Class P
shares
  Additional
paid-in
capital
  Retained
deficit
  Accumulated
other
comprehensive
loss
  KMI's
Stockholders'
Equity
  Non-
controlling
Interests(1)
  Total
Stockholders'
Equity
 

Shares issued for the Transactions

  $ 11   $ (11 ) $   $   $   $   $  

Cash consideration

        (3,924 )           (3,924 )       (3,924 )

Transaction costs, net of tax (see Note 2(f))

        (57 )           (57 )       (57 )

Deferred tax adjustments (see Note 2(d))

        8,007         20     8,027         8,027  

Eliminate noncontrolling interests to reflect historical cost

        15,762         (56 )   15,706     (15,706 )    

Write-off of unamortized debt costs

            (4 )       (4 )       (4 )
                               

Total pro forma adjustments

  $ 11   $ 19,777   $ (4 ) $ (36 ) $ 19,748   $ (15,706 ) $ 4,042  
                               
                               

(1)
Reflects the June 30, 2014 book value of the publicly held interests in KMP, EPB and KMR.

Unaudited Pro Forma Condensed Combined Statements of Income Adjustments

(i)
Reflects net incremental interest expense, including amortization of deferred financing costs, associated with the Bridge Facility and the required restructuring of the Prior Credit Facilities and repayment of the $650 million term loan facility, directly attributable to the Transactions. The incremental debt associated with the Bridge Facility is expected to aggregate to $4,703 million with a stated interest rate of LIBOR plus an accelerating margin (resulting in weighted-average interest rates of 2.53% for the six months ended June 30, 2014 and 2.15% for the year ended December 31, 2013 for purposes of these Unaudited Pro Forma Statements). A change of 0.125% in the effective interest rate on the Bridge Facility would cause a change in annual interest expense of $4 million, net of income tax. For purposes of these Unaudited Pro Forma Statements, and in connection with the Replacement Facility, the stated interest rate of LIBOR plus a margin which, based on KMI's expected credit rating, resulted in an interest rate of approximately 1.65%, was applied to the combined weighted average borrowings under the Prior Credit Facilities of $1,461 million for the six months ended June 30, 2014 and $1,873 million for the year ended December 31, 2013. A change of 0.125% in the effective interest rate on the Replacement Facility would cause a change in annual interest expense of $1 million, net of income tax.

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Kinder Morgan, Inc.

Notes to Unaudited Pro Forma
Condensed Combined Financial Statements (Continued)

Note 2—Pro Forma Adjustments and Assumptions (Continued)

        The following are the pro forma adjustments to interest expense (See Note 1) (in millions):

 
  Six Months Ended
June 30, 2014
  Year Ended
December 31, 2013
 

Interest on the Bridge Facility for the Transactions (1)

  $ (59 ) $ (101 )

Amortization of debt issuance costs of the Bridge Facility (2)

        (39 )

Fee escalations (3)

        (118 )

Remove interest on extinguished term loan

    13     28  

Remove amortization of debt issuance costs of extinguished term loan

    1     4  

Interest on the Replacement Facility (1)(4)

    (16 )   (40 )

Remove interest on Prior Credit Facilities (1)(4)

    15     48  

Amortization of debt issuance costs of the Replacement Facility(2)

    (3 )   (6 )

Remove amortization of debt issuance costs on the Prior Credit Facilities

    5     6  
           

Pro forma adjustments to interest expense

  $ (44 ) $ (218 )
           
           

(1)
Reflects incremental interest expense associated with the debt incurred for the Transactions as if that debt was outstanding for the six months ended June 30, 2014 and the year ended December 31, 2013.

(2)
Reflects amortization of the incremental debt issuance costs on the debt incurred and restructured as a direct result of the Transactions using the effective interest method.

(3)
Reflects certain escalating fees, including duration and funding fees, that would be recognized as interest expense if the borrowings under the Bridge Facility were to remain outstanding for the maximum term.

(4)
Includes interest on borrowings, letter of credit fees, and commitment fees.
(j)
Reflects estimated income tax expense using KMI's statutory federal and state income tax rate of 36.5%.


For the six months ended June 30, 2014, the amount reflects the combined effects of (i) $163 million of income tax expense on the income previously attributable to KMP's and EPB's noncontrolling interest holders that was not previously subject to corporate income taxes; (ii) $16 million of tax benefit related to the interest expense on the debt incurred as a direct result of the Transactions; and (iii) $7 million to reverse, as a result of the Transactions, the impacts of certain tax expense recorded during the six-month period ended June 30, 2014.


For the year ended December 31, 2013, the amount reflects the combined effects of (i) $466 million of income tax expense on the income previously attributable to KMP's and EPB's noncontrolling interest holders that was not previously subject to corporate income taxes; (ii) $79 million of tax benefit related to the interest expense on the debt incurred as a direct result of the Transactions; and (iii) $60 million to reverse, as a result of the Transactions, the impacts of certain tax expense recorded during 2013.

(k)
Reclassifies net income previously allocated to noncontrolling interests related to the publicly held KMP and EPB common units and publicly held KMR shares to net income attributable to KMI.

(l)
Reflects the 1,090 million shares of KMI common stock assumed to be issued in the Transactions as if they were outstanding as of January 1, 2013.

(m)
For the six months ended June 30, 2014 and the year ended December 31, 2013, for both historical and these Unaudited Pro Forma Statements, the following potential common stock equivalents were antidilutive and, accordingly, are excluded from the determination of diluted earnings per share (in millions, on a weighted-average basis):

 
  Six Months Ended
June 30, 2014
  Year Ended
December 31, 2013
 

Unvested restricted stock awards

    7     4  

Outstanding warrants to purchase KMI common stock

    325     401  

Convertible trust preferred securities

    10     10  

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Table of Contents

Annex A

AGREEMENT AND PLAN OF MERGER

Dated as of August 9, 2014

by and among

EL PASO PIPELINE PARTNERS, L.P,

EL PASO PIPELINE GP COMPANY, L.L.C.,

KINDER MORGAN, INC.,

and

E MERGER SUB LLC


Table of Contents

Table of Contents

 
   
  Page  

ARTICLE I

 

THE MERGER

    A-1  

Section 1.1.

 

The Merger

   
A-1
 

Section 1.2.

 

Closing

    A-2  

Section 1.3.

 

Effective Time

    A-2  

Section 1.4.

 

Effects of the Merger

    A-2  

Section 1.5.

 

Organizational Documents of the Surviving Entity

    A-2  

Section 1.6.

 

Organizational Documents of Parent

    A-2  

ARTICLE II

 

EFFECT ON UNITS

   
A-2
 

Section 2.1.

 

Effect of Merger

   
A-2
 

Section 2.2.

 

Exchange of Certificates

    A-4  

Section 2.3.

 

Election Procedures

    A-7  

Section 2.4.

 

Treatment of Restricted Units; Termination of Partnership Equity Plan

    A-9  

Section 2.5.

 

Adjustments

    A-9  

Section 2.6.

 

No Dissenters' Rights

    A-9  

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES OF THE PARTNERSHIP AND THE PARTNERSHIP GP

   
A-9
 

Section 3.1.

 

Organization, Standing and Corporate Power

   
A-10
 

Section 3.2.

 

Capitalization

    A-10  

Section 3.3.

 

Authority; Noncontravention; Voting Requirements

    A-11  

Section 3.4.

 

Governmental Approvals

    A-12  

Section 3.5.

 

Partnership SEC Documents; Undisclosed Liabilities

    A-12  

Section 3.6.

 

Compliance With Laws

    A-13  

Section 3.7.

 

Information Supplied

    A-13  

Section 3.8.

 

Tax Matters

    A-14  

Section 3.9.

 

Opinion of Financial Advisor

    A-14  

Section 3.10.

 

Brokers and Other Advisors

    A-15  

Section 3.11.

 

Absence of Certain Changes or Events

    A-15  

Section 3.12.

 

No Other Representations or Warranties

    A-15  

ARTICLE IV

 

REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB

   
A-15
 

Section 4.1.

 

Organization, Standing and Corporate Power

   
A-15
 

Section 4.2.

 

Capitalization

    A-16  

Section 4.3.

 

Authority; Noncontravention; Voting Requirements

    A-17  

Section 4.4.

 

Governmental Approvals

    A-18  

Section 4.5.

 

Parent SEC Documents; Undisclosed Liabilities

    A-18  

Section 4.6.

 

Absence of Certain Changes or Events

    A-19  

Section 4.7.

 

Legal Proceedings

    A-19  

Section 4.8.

 

Compliance With Laws; Permits

    A-19  

Section 4.9.

 

Information Supplied

    A-20  

Section 4.10.

 

Tax Matters

    A-20  

Section 4.11.

 

Contracts

    A-21  

Section 4.12.

 

Parent Benefit Plans

    A-21  

Section 4.13.

 

Environmental Matters

    A-21  

Section 4.14.

 

Property

    A-22  

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  Page  

Section 4.15.

 

Intellectual Property

    A-22  

Section 4.16.

 

Opinion of Parent Financial Advisor

    A-23  

Section 4.17.

 

Brokers and Other Advisors

    A-23  

Section 4.18.

 

Financing

    A-23  

Section 4.19.

 

Merger Agreements

    A-23  

Section 4.20.

 

Ownership of Common Units

    A-23  

Section 4.21.

 

No Other Representations or Warranties

    A-23  

ARTICLE V

 

ADDITIONAL COVENANTS AND AGREEMENTS

   
A-24
 

Section 5.1.

 

Preparation of the Registration Statement, the Proxy Statements and the Schedule 13E-3; Equityholder Meeting

   
A-24
 

Section 5.2.

 

Conduct of Business

    A-26  

Section 5.3.

 

No Solicitation by the Partnership; Etc

    A-27  

Section 5.4.

 

Reasonable Best Efforts

    A-30  

Section 5.5.

 

Public Announcements

    A-32  

Section 5.6.

 

Access to Information; Confidentiality

    A-32  

Section 5.7.

 

Indemnification and Insurance

    A-32  

Section 5.8.

 

Securityholder Litigation

    A-33  

Section 5.9.

 

Fees and Expenses

    A-34  

Section 5.10.

 

Section 16 Matters

    A-34  

Section 5.11.

 

Listing

    A-34  

Section 5.12.

 

Dividends and Distributions

    A-34  

Section 5.13.

 

Coordination of Transactions

    A-34  

Section 5.14.

 

Notification of Certain Matters Regarding the KMP Merger and the KMR Merger

    A-34  

Section 5.15.

 

GP Conflicts Committee

    A-34  

Section 5.16.

 

Amendments to KMP Merger Agreement and KMR Merger Agreement

    A-35  

Section 5.17.

 

Performance by Partnership GP

    A-35  

Section 5.18.

 

Performance by Parent

    A-35  

Section 5.19.

 

Cooperation with Financing

    A-35  

Section 5.20.

 

Tax Treatment

    A-35  

ARTICLE VI

 

CONDITIONS PRECEDENT

   
A-36
 

Section 6.1.

 

Conditions to Each Party's Obligation to Effect the Merger

   
A-36
 

Section 6.2.

 

Conditions to Obligations of Parent and Merger Sub to Effect the Merger

    A-36  

Section 6.3.

 

Conditions to Obligation of the Partnership to Effect the Merger

    A-37  

Section 6.4.

 

Frustration of Closing Conditions

    A-38  

ARTICLE VII

 

TERMINATION

   
A-38
 

Section 7.1.

 

Termination

   
A-38
 

Section 7.2.

 

Effect of Termination

    A-39  

ARTICLE VIII

 

MISCELLANEOUS

   
A-39
 

Section 8.1.

 

No Survival, Etc

   
A-39
 

Section 8.2.

 

Amendment or Supplement

    A-40  

Section 8.3.

 

Extension of Time, Waiver, Etc

    A-40  

Section 8.4.

 

Assignment

    A-40  

Section 8.5.

 

Counterparts

    A-41  

Section 8.6.

 

Entire Agreement; No Third-Party Beneficiaries

    A-41  

Section 8.7.

 

Governing Law; Jurisdiction; Waiver of Jury Trial

    A-41  

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  Page  

Section 8.8.

 

Specific Performance

    A-42  

Section 8.9.

 

Notices

    A-42  

Section 8.10.

 

Severability

    A-43  

Section 8.11.

 

Definitions

    A-43  

Section 8.12.

 

Interpretation

    A-48  

Section 8.13.

 

Non-Recourse

    A-49  

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AGREEMENT AND PLAN OF MERGER

        This AGREEMENT AND PLAN OF MERGER, dated as of August 9, 2014 (this "Agreement"), is by and among El Paso Pipeline Partners, L.P., a Delaware limited partnership (the "Partnership"), El Paso Pipeline GP Company, L.L.C. a Delaware limited liability company and the general partner of the Partnership (the "Partnership GP"), Kinder Morgan, Inc., a Delaware corporation ("Parent"), and E Merger Sub LLC, a Delaware limited liability company and a wholly owned Subsidiary of Parent ("Merger Sub"). Certain terms used in this Agreement are defined in Section 8.11.


W I T N E S S E T H:

        WHEREAS, the Conflicts Committee of the Board of Directors of the Partnership GP (the "GP Conflicts Committee") has (i) determined that the Merger is fair and reasonable to, and in the best interests of, the Partnership, after determining that the Merger is fair and reasonable to, and in the best interests of, the Partnership Unaffiliated Unitholders, (ii) approved, and recommended that the Board of Directors of the Partnership GP (the "GP Board") approve, this Agreement, the execution, delivery and performance of this Agreement and the transactions contemplated by this Agreement and submit this Agreement to a vote of the Limited Partners and (iii) resolved to recommend approval of this Agreement by the Limited Partners;

        WHEREAS, the GP Board (acting based upon the recommendation of the GP Conflicts Committee) has (i) determined that the Merger is fair and reasonable to, and in the best interests of, the Partnership, after determining that the Merger is fair and reasonable to, and in the best interests of, the Partnership Unaffiliated Unitholders, (ii) approved this Agreement, the execution, delivery and performance of this Agreement and the transactions contemplated by this Agreement and (iii) resolved to submit this Agreement to a vote of the Limited Partners and recommend approval of this Agreement by the Limited Partners;

        WHEREAS, the Board of Directors of Parent has (i) determined that this Agreement and the transactions contemplated by this Agreement (including the KMP Merger and the KMR Merger) are in the best interests of Parent and its stockholders, (ii) approved and declared advisable this Agreement, the KMP Merger Agreement, the KMR Merger Agreement, the Charter Amendment and the issuance of shares of Class P common stock, par value $0.01 per share of Parent ("Parent Class P Stock") pursuant to the Merger, the KMP Merger and the KMR Merger (together, the "Parent Stock Issuance") and (iii) resolved to submit the Charter Amendment and the Parent Stock Issuance to a vote of Parent's stockholders and recommend adoption of the Charter Amendment and approval of the Parent Stock Issuance; and

        WHEREAS, concurrently with the execution of this Agreement, and as a material inducement for the Partnership and the Partnership GP to enter into this Agreement, the Partnership has entered into a Support Agreement, dated as of the date hereof (collectively, the "Support Agreement"), with the Partnership, Partnership GP, Kinder Morgan Management, LLC ("KMR"), Kinder Morgan Energy Partners, L.P. ("KMP"), KMP's general partner, Richard D. Kinder and RDK Investments, Ltd.

        NOW, THEREFORE, in consideration of the representations, warranties, covenants and agreements contained in this Agreement, and intending to be legally bound, the parties agree as follows:


ARTICLE I

The Merger

        Section 1.1.    The Merger.     Upon the terms and subject to the conditions set forth in this Agreement, and in accordance with the DLLCA and the DRULPA, at the Effective Time, Merger Sub shall be merged with and into the Partnership (the "Merger"), the separate limited liability company

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existence of Merger Sub will cease and the Partnership will continue its existence as a limited partnership under Delaware Law as the surviving entity in the Merger (the "Surviving Entity").

        Section 1.2.    Closing.     Subject to the provisions of Article VI, the closing of the Merger (the "Closing") shall take place at the offices of Weil, Gotshal & Manges LLP, 700 Louisiana Street, Suite 1700, Houston, Texas 77002 at 10:00 A.M., Houston, Texas time, on the second (2nd) business day after the satisfaction or waiver of the conditions set forth in Article VI (other than conditions that by their nature are to be satisfied at the Closing, but subject to the satisfaction or waiver of those conditions), or at such other place, date and time as the Partnership and Parent shall agree. Each of the Merger, the KMR Merger and the KMP Merger shall be consummated substantially concurrently on the same date in the sequence set forth on Section 1.2 of the Parent Disclosure Schedule. The date on which the Closing actually occurs is referred to as the "Closing Date".

        Section 1.3.    Effective Time.     Subject to the provisions of this Agreement, at the Closing, the Partnership and Parent will cause each of a certificate of merger, executed in accordance with the relevant provisions of the Partnership Agreement, the DRULPA and the DLLCA (the "Certificate of Merger"), and the Charter Amendment, executed in accordance with the relevant provisions of the DGCL, to be duly filed with the Secretary of State of the State of Delaware. The Merger will become effective at such time as the Certificate of Merger has been duly filed with the Secretary of State of the State of Delaware or at such later date or time as may be agreed by the Partnership and Parent in writing and specified in the Certificate of Merger (the effective time of the Merger being hereinafter referred to as the "Effective Time"). The Charter Amendment shall be filed with the Secretary of State of the State of Delaware prior to the filing of the Certificate of Merger and shall become effective at or prior to the Effective Time.

        Section 1.4.    Effects of the Merger.     The Merger shall have the effects set forth in this Agreement, the Partnership Agreement and the applicable provisions of the DRULPA and the DLLCA.

        Section 1.5.    Organizational Documents of the Surviving Entity.     At the Effective Time, the certificate of limited partnership of the Partnership and the Partnership Agreement shall remain unchanged and shall be the certificate of limited partnership and Partnership Agreement of the Surviving Entity, until duly amended in accordance with applicable Law and the terms of the Partnership Agreement.

        Section 1.6.    Organizational Documents of Parent.     Subject to receipt of the Parent Charter Approval, the certificate of incorporation of Parent shall be amended prior to the Effective Time as set forth in Exhibit A (the "Charter Amendment") and, such certificate of incorporation as amended by the Charter Amendment, shall be the certificate of incorporation of Parent until thereafter amended or changed as provided herein or by applicable Law.


ARTICLE II

Effect on Units

        Section 2.1.    Effect of Merger.     At the Effective Time, by virtue of the Merger and without any action on the part of the Partnership, the Partnership GP, Parent, Merger Sub or the holder of any securities of the Partnership or Merger Sub:

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        Section 2.2.    Exchange of Certificates.     

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        Section 2.3.    Election Procedures.     

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        Section 2.4.    Treatment of Restricted Units; Termination of Partnership Equity Plan.     

        Section 2.5.    Adjustments.     Notwithstanding any provision of this Article II to the contrary, if between the date of this Agreement and the Effective Time the number of outstanding Common Units or shares of Parent Class P Stock shall have been changed into a different number of units or shares or a different class or series by reason of the occurrence or record date of any unit or share dividend, subdivision, reclassification, recapitalization, split, split-up, unit or share distribution, combination, exchange of units or shares or similar transaction, the Merger Consideration, the Per Unit Mixed Consideration Cash Amount, the Per Unit Cash Election Consideration, the Per Unit Stock Consideration, the Mixed Election Stock Exchange Ratio and any other similar dependent item, as the case may be, shall be appropriately adjusted to reflect fully the effect of such unit or share dividend, subdivision, reclassification, recapitalization, split, split-up, unit or share distribution, combination, exchange of units or shares or similar transaction and to provide the holders of Common Units the same economic effect as contemplated by this Agreement prior to such event.

        Section 2.6.    No Dissenters' Rights.     No dissenters' or appraisal rights shall be available with respect to the Merger or the other transactions contemplated by this Agreement.


ARTICLE III

Representations and Warranties of the Partnership and the Partnership GP

        Except as disclosed in (a) the Partnership SEC Documents filed or publicly furnished with the SEC on or after December 31, 2013 and prior to the date of this Agreement (but excluding any disclosure contained in any such Partnership SEC Documents under the heading "Risk Factors" or "Information Regarding Forward-Looking Statements" or similar heading (other than any factual information contained within such headings, disclosure or statements)) or (b) the disclosure letter delivered by the Partnership to Parent (the "Partnership Disclosure Schedule") prior to the execution of this Agreement (provided that (i) disclosure in any section of such Partnership Disclosure Schedule shall be deemed to be disclosed with respect to any other section of this Agreement to the extent that it is reasonably apparent on the face of such disclosure that it is applicable to such other section notwithstanding the omission of a reference or cross reference thereto and (ii) the mere inclusion of an item in such Partnership Disclosure Schedule as an exception to a representation or warranty shall not be deemed

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an admission that such item represents a material exception or material fact, event or circumstance or that such item has had, would have or would reasonably be expected to have a Partnership Material Adverse Effect), the Partnership and, with respect to itself where provided for in this Article III, the Partnership GP each represent and warrant to Parent as follows:

        Section 3.1.    Organization, Standing and Corporate Power.     

        Section 3.2.    Capitalization.     

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        Section 3.3.    Authority; Noncontravention; Voting Requirements.     

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        Section 3.4.    Governmental Approvals.     Except for (i) filings required under, and compliance with other applicable requirements of, the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (the "Exchange Act"), the Securities Act, including the filing of a proxy statement/prospectus with the SEC in connection with the Merger (the "Partnership Proxy Statement"), (ii) the filing of the Certificate of Merger with the Secretary of State of the State of Delaware, (iii) filings required under, and compliance with other applicable requirements of, Antitrust Laws or (iv) any consents, authorizations, approvals, filings or exemptions in connection with compliance with the rules of the NYSE, no consents or approvals of, or filings, declarations or registrations with, any Governmental Authority are necessary for the execution, delivery and performance of this Agreement by the Partnership and the consummation by the Partnership of the transactions contemplated by this Agreement, other than such other consents, approvals, filings, declarations or registrations that, if not obtained, made or given, would not, individually or in the aggregate, reasonably be expected to (A) prevent or materially impede, interfere with or hinder the consummation of the transactions contemplated by this Agreement or (B) result in a Partnership Material Adverse Effect.

        Section 3.5.    Partnership SEC Documents; Undisclosed Liabilities.     

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        Section 3.6.    Compliance With Laws.     The Partnership and its Subsidiaries are, and since the later of December 31, 2011 and their respective dates of formation or organization have been, in compliance with and are not in default under or in violation of any applicable federal, state, local or foreign or provincial law, statute, ordinance, rule, regulation, judgment, order, injunction, decree or agency requirement of or undertaking to any Governmental Authority, including common law (collectively, "Laws" and each, a "Law"), except where such non-compliance, default or violation has not had and would not reasonably be expected to have, individually or in the aggregate, a Partnership Material Adverse Effect.

        Section 3.7.    Information Supplied.     Subject to the accuracy of the representations and warranties of Parent and Merger Sub set forth in Section 4.9, none of the information supplied (or to be supplied) in writing by or on behalf of the Partnership and the Partnership GP specifically for inclusion or incorporation by reference in (a) the registration statement on Form S-4 to be filed with the SEC by Parent in connection with the issuance of shares of Parent Class P Stock in connection with the Merger (as amended or supplemented from time to time, the "Registration Statement") will, at the time the Registration Statement, or any amendment or supplement thereto, is filed with the SEC or at the time it becomes effective under the Securities Act, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, (b) the Rule 13e-3 transaction statement on Schedule 13E-3 relating to the approval of this Agreement by the Limited Partners (as amended or supplemented, the "Schedule 13E-3") will, at the time the Schedule 13E-3, or any amendment or supplement thereto, is filed with the SEC, contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they are made, not misleading, (c) the Partnership Proxy Statement will, on the date it is first mailed to Limited Partners, and at the time of the Partnership Unitholder Meeting, contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they are made, not misleading and (d) the proxy statement filed by Parent with the SEC in connection with Parent Stockholder Approval (the "Parent Proxy Statement" and

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together with the Partnership Proxy Statement, the "Proxy Statements") will, on the date it is first mailed to stockholders of Parent, and at the time of the Parent Stockholder Meeting, contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they are made, not misleading. The Partnership Proxy Statement will comply as to form in all material respects with the applicable requirements of the Exchange Act. Notwithstanding the foregoing, the Partnership makes no representation or warranty with respect to information supplied by or on behalf of Parent or Merger Sub (including, for the avoidance of doubt, any information supplied by Parent with respect to KMP, KMR, the KMP Merger or the KMR Merger, whether or not originally supplied to Parent by KMP, KMR or any other Person) for inclusion or incorporation by reference in any of the foregoing documents.

        Section 3.8.    Tax Matters.     

        Section 3.9.    Opinion of Financial Advisor.     The GP Conflicts Committee has received the opinion of Tudor, Pickering, Holt & Co. Securities, Inc. (the "Partnership Financial Advisor"), dated as of August 9, 2014, to the effect that, as of such date, and based upon and subject to the assumptions and qualifications and limitations and other matters set forth therein, from a financial point of view, the Merger Consideration to be paid to the Partnership Unaffiliated Unitholders pursuant to this Agreement, is fair from a financial point of view, to the Partnership Unaffiliated Unitholders (the "Partnership Fairness Opinion").

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        Section 3.10.    Brokers and Other Advisors.     Except for the Partnership Financial Advisor, the fees and expenses of which will be paid by the Partnership, no broker, investment banker or financial advisor is entitled to any broker's, finder's or financial advisor's fee or commission, or the reimbursement of expenses, in connection with the Merger or the transactions contemplated by this Agreement based on arrangements made by or on behalf of the GP Conflicts Committee. The Partnership has heretofore made available to Parent a correct and complete copy of the Partnership's engagement letter with the Partnership Financial Advisor, which letter describes all fees payable to the Partnership Financial Advisor in connection with the transactions contemplated by this Agreement and all agreements under which any such fees or any expenses are payable and all indemnification and other agreements with the Partnership Financial Advisor entered into in connection with the transactions contemplated by this Agreement.

        Section 3.11.    Absence of Certain Changes or Events.     Since the Balance Sheet Date, there has not occurred any change, effect, event or occurrence that, individually or in the aggregate, has resulted, or would reasonably be likely to result, in a Partnership Material Adverse Effect.

        Section 3.12.    No Other Representations or Warranties.     Except for the representations and warranties set forth in this Article III, neither the Partnership nor any other Person makes or has made any express or implied representation or warranty with respect to the Partnership or with respect to any other information provided to Parent or Merger Sub in connection with the Merger or the other transactions contemplated by this Agreement. Without limiting the generality of the foregoing, neither the Partnership nor any other Person will have or be subject to any liability or other obligation to Parent, Merger Sub or any other Person resulting from the distribution to Parent or Merger Sub (including their respective Representatives), or Parent's or Merger Sub's (or such Representatives') use of, any such information, including any information, documents, projections, forecasts or other materials made available to Parent or Merger Sub in expectation of the Merger, unless any such information is the subject of an express representation or warranty set forth in this Article III.


ARTICLE IV

Representations and Warranties of Parent and Merger Sub

        Except as disclosed in (a) the Parent SEC Documents filed or publicly furnished with the SEC on or after December 31, 2013 and prior to the date of this Agreement (but excluding any disclosure contained in any such Parent SEC Documents under the heading "Risk Factors" or "Information Regarding Forward-Looking Statements" or similar heading (other than any factual information contained within such headings, disclosure or statements)) or (b) the disclosure letter delivered by Parent to the Partnership (the "Parent Disclosure Schedule") prior to the execution of this Agreement (provided that (i) disclosure in any section of such Parent Disclosure Schedule shall be deemed to be disclosed with respect to any other section of this Agreement to the extent that it is reasonably apparent on the face of such disclosure that it is applicable to such other section notwithstanding the omission of a reference or cross reference thereto and (ii) the mere inclusion of an item in such Parent Disclosure Schedule as an exception to a representation or warranty shall not be deemed an admission that such item represents a material exception or material fact, event or circumstance or that such item has had, would have or would reasonably be expected to have a Parent Material Adverse Effect), Parent represents and warrants to the Partnership as follows:

        Section 4.1.    Organization, Standing and Corporate Power.     

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        Section 4.2.    Capitalization.     

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        Section 4.3.    Authority; Noncontravention; Voting Requirements.     

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        Section 4.4.    Governmental Approvals.     Except for (i) filings required under, and compliance with other applicable requirements of, the Exchange Act, the Securities Act, including the filing of the Registration Statement with the SEC, (ii) the filing of the Certificate of Merger and Charter Amendment with the Secretary of State of the State of Delaware, (iii) filings required under, and compliance with other applicable requirements of, Antitrust Laws or (iv) any consents, authorizations, approvals, filings or exemptions in connection with compliance with the rules of the NYSE, no consents or approvals of, or filings, declarations or registrations with, any Governmental Authority are necessary for the execution, delivery and performance of this Agreement by Parent and Merger Sub and the consummation by Parent and Merger Sub of the transactions contemplated by this Agreement (including, in the case of Parent, the KMP Merger and the KMR Merger), other than such other consents, approvals, filings, declarations or registrations that are not required to be obtained or made prior to consummation of such transactions or, if not obtained, made or given, would not, individually or in the aggregate, reasonably be expected to (A) prevent or materially impede, interfere with or hinder the consummation of the transactions contemplated by this Agreement or (B) result in a Parent Material Adverse Effect.

        Section 4.5.    Parent SEC Documents; Undisclosed Liabilities.     

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        Section 4.6.    Absence of Certain Changes or Events.     Since the Balance Sheet Date, there has not occurred any change, effect, event or occurrence that, individually or in the aggregate, has resulted, or would reasonably be likely to result, in a Parent Material Adverse Effect.

        Section 4.7.    Legal Proceedings.     There are no Actions pending or threatened in writing by any Governmental Authority with respect to Parent or any of its Subsidiaries or Actions pending or threatened in writing against Parent or any of its Subsidiaries, or with respect to any of their respective properties or assets at law or in equity before any Governmental Authority, and there are no orders, judgments, decrees or similar rulings of any Governmental Authority against Parent or any of its Subsidiaries, in each case except for those that have not had and would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect.

        Section 4.8.    Compliance With Laws; Permits.     

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        Section 4.9.    Information Supplied.     Subject to the accuracy of the representations and warranties of the Partnership and the Partnership GP, set forth in Section 3.7, none of the information supplied (or to be supplied) in writing by or on behalf of Parent (including, for the avoidance of doubt, any information supplied (or to be supplied) in writing by Parent with respect to KMP, KMR, the KMP Merger or the KMR Merger, whether or not originally supplied to Parent by KMP, KMR or any other Person) specifically for inclusion or incorporation by reference in (a) the Registration Statement will, at the time the Registration Statement, or any amendment or supplement thereto, is filed with the SEC or at the time it becomes effective under the Securities Act, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, (b) the Schedule 13E-3 will, at the time the Schedule 13E-3, or any amendment or supplement thereto, is filed with the SEC, contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they are made, not misleading, (c) the Partnership Proxy Statement will, on the date it is first mailed to Limited Partners, and at the time of the Partnership Unitholder Meeting, contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they are made, not misleading and (d) the Parent Proxy Statement will, on the date it is first mailed to stockholders of Parent, and at the time of the Parent Stockholder Meeting, contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they are made, not misleading. Notwithstanding the foregoing, Parent makes no representation or warranty with respect to information supplied by or on behalf of the Partnership for inclusion or incorporation by reference in any of the foregoing documents.

        Section 4.10.    Tax Matters.     Except as have not had and would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect: (i) all Tax Returns that were required to be filed by or with respect to Parent or any of its Subsidiaries have been duly and timely filed (taking into account any extension of time within which to file) and all such Tax Returns are complete and accurate, (ii) all Taxes owed by Parent or any of its Subsidiaries that are or have become due have been timely paid in full or an adequate reserve for the payment of such Taxes has been established on the balance sheet of Parent and its consolidated subsidiaries as of the Balance Sheet Date in the Parent SEC Documents, (iii) there is no claim against Parent or any of its Subsidiaries for

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any Taxes, and no assessment, deficiency, or adjustment has been asserted, proposed, or threatened with respect to any Taxes or Tax Returns of or with respect to Parent or any of its Subsidiaries, and (iv) Parent has not constituted either a "distributing corporation" or a "controlled corporation" in a distribution of stock intended to qualify for tax-free treatment under Section 355 of the Code in the two years prior to the date of this Agreement or in a distribution which could otherwise constitute part of a "plan" or "series of related transactions" (within the meaning of Section 355(e) of the Code) in conjunction with the transactions contemplated by this Agreement.

        Section 4.11.    Contracts.     

        Section 4.12.    Parent Benefit Plans.     

        Section 4.13.    Environmental Matters.     Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect: (i) each of Parent and its Subsidiaries is and has been in compliance with all applicable Environmental Laws, which compliance includes obtaining, maintaining and complying with all Parent Permits required to be

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obtained pursuant to Environmental Laws ("Environmental Permits"); (ii) all Environmental Permits are in full force and effect and, where applicable, applications for renewal or amendment thereof have been timely filed; (iii) no suspension or cancellation of any Environmental Permit is pending or threatened in writing; (iv) there has been no release of any Hazardous Substance by Parent or any of its Subsidiaries or any other Person in any manner that would reasonably be expected to give rise to Parent or any of its Subsidiaries incurring any liability, remedial obligation, or corrective action requirement under applicable Environmental Laws; (v) there are no Actions pending or threatened in writing against Parent or any of its Subsidiaries or involving any real property currently or formerly owned, operated or leased by or for Parent or any of its Subsidiaries alleging noncompliance with, or liability under, any Environmental Law; and (vi) no Hazardous Substance has been disposed of, released or transported in violation of any applicable Environmental Law, from any properties while owned or operated by Parent or any of its Subsidiaries or as a result of any operations or activities of Parent or any of its Subsidiaries.

        Section 4.14.    Property.     

        Section 4.15.    Intellectual Property.     Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect, either Parent or a Subsidiary of Parent owns, or is licensed or otherwise possesses adequate rights to use, all material trademarks, trade names, service marks, service names, mark registrations, logos, assumed names,

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domain names, registered and unregistered copyrights, patents or applications and registrations, and trade secrets (collectively, the "Parent Intellectual Property") used in their respective businesses as currently conducted. Except as has not had and would not reasonably be expected to have, individually or in the aggregate, a Parent Material Adverse Effect, (i) there are no pending or threatened in writing claims by any Person alleging infringement or misappropriation by Parent or any of its Subsidiaries of such Person's intellectual property, (ii) the conduct of the business of Parent and its Subsidiaries does not infringe or misappropriate any intellectual property rights of any Person, (iii) neither Parent nor any of its Subsidiaries has made any claim of a violation or infringement, or misappropriation by others of its rights to or in connection with the Parent Intellectual Property, and (iv) no Person is infringing or misappropriating any Parent Intellectual Property.

        Section 4.16.    Opinion of Parent Financial Advisor.     The Board of Directors of Parent has received the opinion of Barclays Capital Inc. (the "Parent Financial Advisor") to the effect that, as of the date of such opinion and subject to the qualifications, limitations and assumptions set forth therein, the Transactions Consideration to be paid in the aggregate by Parent in the Transactions is fair, from a financial point of view, to Parent (the "Parent Fairness Opinion").

        Section 4.17.    Brokers and Other Advisors.     Except for the Parent Financial Advisors, the fees and expenses of which will be paid by Parent, no broker, investment banker or financial advisor is entitled to any broker's, finder's or financial advisor's fee or commission, or the reimbursement of expenses, in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Parent or any of its Subsidiaries (other than the Partnership).

        Section 4.18.    Financing.     At the Effective Time, Parent and Merger Sub will have available to them all funds necessary to consummate the Merger, the KMP Merger and the KMR Merger and to pay all cash amounts required to be paid in connection with the Merger, the KMP Merger and the KMR Merger.

        Section 4.19.    Merger Agreements.     Parent has heretofore provided to the Partnership a correct and complete copy of the KMP Merger Agreement and the KMR Merger Agreement.

        Section 4.20.    Ownership of Common Units.     Parent and its Subsidiaries (other than KMP, its general partner and KMR and their respective Subsidiaries), taken together, are the beneficial owners of 93,380,734 Common Units, which represent all Common Units held of record or beneficially by Parent or any of its Subsidiaries as of the date hereof, and the record date for determining Limited Partners entitled to vote at the Partnership Unitholder Meeting.

        Section 4.21.    No Other Representations or Warranties.     Except for the representations and warranties set forth in this Article IV, neither Parent nor any other Person makes or has made any express or implied representation or warranty with respect to Parent and Merger Sub or with respect to any other information provided to the Partnership in connection with the transactions contemplated by this Agreement. Without limiting the generality of the foregoing, neither Parent nor any other Person will have or be subject to any liability or other obligation to the Partnership or the Partnership GP or any other Person resulting from the distribution to the Partnership (including their Representatives), or the Partnership's or the Partnership GP's (or such Representatives') use of, any such information, including any information, documents, projections, forecasts or other materials made available to the Partnership and the Partnership GP in expectation of the Merger, unless any such information is the subject of an express representation or warranty set forth in this Article IV.

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ARTICLE V

Additional Covenants and Agreements

        Section 5.1.    Preparation of the Registration Statement, the Proxy Statements and the Schedule 13E-3; Equityholder Meeting.     

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        Section 5.2.    Conduct of Business.     

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        Section 5.3.    No Solicitation by the Partnership; Etc.     

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        Section 5.4.    Reasonable Best Efforts.     

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        Section 5.5.    Public Announcements.     The initial press release with respect to the execution of this Agreement shall be a joint press release to be reasonably agreed upon by Parent and the Partnership. Thereafter, neither the Partnership nor Parent shall issue or cause the publication of any press release or other public announcement (to the extent not previously issued or made in accordance with this Agreement) with respect to this Agreement or the transactions contemplated by this Agreement without the prior consent of the other party (which consent shall not be unreasonably withheld, conditioned or delayed), except as may be required by Law or by any applicable listing agreement with the NYSE or other national securities exchange as determined in the good faith judgment of the party proposing to make such release (in which case such party shall not issue or cause the publication of such press release or other public announcement without prior consultation with the other party); provided, however, that the Partnership shall not be required by this Section 5.5 to consult with any other party with respect to a public announcement in connection with the receipt and existence of an Alternative Proposal that the GP Board believes in good faith is bona fide and matters related thereto or a Partnership Adverse Recommendation Change but nothing in this proviso shall limit any obligation of the GP Board or the GP Conflicts Committee under Section 5.3(d) to negotiate with Parent in good faith; provided, further, that each party and their respective controlled affiliates may make statements that are consistent with statements made in previous press releases, public disclosures or public statements made by Parent or the Partnership in compliance with this Section 5.5.

        Section 5.6.    Access to Information; Confidentiality.     Upon reasonable notice and subject to applicable Laws relating to the exchange of information, each party shall, and shall cause each of its Subsidiaries to afford to the other party and its Representatives reasonable access during normal business hours (and, with respect to books and records, the right to copy) to all of its and its Subsidiaries' properties, commitments, books, Contracts, records and correspondence (in each case, whether in physical or electronic form), officers, employees, accountants, counsel, financial advisors and other Representatives. Except for disclosures permitted by the terms of the Confidentiality Agreement, dated as of July 20, 2014, between Parent and the Partnership (as it may be amended from time to time, the "Confidentiality Agreement"), each party and its Representatives shall hold information received from the other party pursuant to this Section 5.6 in confidence in accordance with the terms of the Confidentiality Agreements.

        Section 5.7.    Indemnification and Insurance.     

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        Section 5.8.    Securityholder Litigation.     The Partnership and Partnership GP shall give Parent the opportunity to participate in the defense or settlement of any securityholder litigation against the Partnership and the Partnership GP and/or their directors (as applicable) relating to the transactions contemplated by this Agreement, provided that the Partnership and the Partnership GP shall in any

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event control such defense and/or settlement and shall not be required to provide information if doing so would be reasonably expected to threaten the loss of any attorney-client privilege or other applicable legal privilege.

        Section 5.9.    Fees and Expenses.     All fees and expenses incurred in connection with the transactions contemplated by this Agreement including all legal, accounting, financial advisory, consulting and all other fees and expenses of third parties incurred by a party in connection with the negotiation and effectuation of the terms and conditions of this Agreement and the transactions contemplated by this Agreement, shall be the obligation of the respective party incurring such fees and expenses.

        Section 5.10.    Section 16 Matters.     Prior to the Effective Time, Parent and the Partnership shall take all such steps as may be required (to the extent permitted under applicable Law) to cause any dispositions of Common Units (including derivative securities with respect to Common Units) or acquisitions of Parent Class P Stock (including derivative securities with respect to Parent Class P Stock) resulting from the transactions contemplated by this Agreement by each individual who is subject to the reporting requirements of Section 16(a) of the Exchange Act with respect to the Partnership, or will become subject to such reporting requirements with respect to Parent, to be exempt under Rule 16b-3 promulgated under the Exchange Act.

        Section 5.11.    Listing.     Parent shall cause the Parent Class P Stock to be issued pursuant to and in accordance with this Agreement to be approved for listing (subject, if applicable, to notice of issuance) for trading on the NYSE prior to the Closing.

        Section 5.12.    Dividends and Distributions.     After the date of this Agreement until the Effective Time, each of Parent and the Partnership shall coordinate with the other regarding the declaration of any dividends or distributions in respect of Parent Class P Stock and Partnership Interests and the record dates and payment dates relating thereto, it being the intention of the Parties that holders of Partnership Interests shall not receive, for any quarter, distributions both in respect of Partnership Interests and also dividends in respect of Parent Class P Stock that they receive in exchange therefor in the Merger, but that they shall receive for any such quarter either: (i) only distributions in respect of Partnership Interests or (ii) only dividends in respect of Parent Class P Stock that they receive in exchange therefor in the Merger.

        Section 5.13.    Coordination of Transactions.     At the Closing, each of Parent and the Partnership shall coordinate the consummation of the transactions contemplated by this Agreement such that the transactions contemplated by this Agreement (including the KMR Merger Agreement and the KMP Merger Agreement) shall be consummated in the manner and sequence set forth on Section 1.2 of the Parent Disclosure Schedule.

        Section 5.14.    Notification of Certain Matters Regarding the KMP Merger and the KMR Merger.     Parent shall give prompt notice to the other parties hereto of (a) any fact, event or circumstance known to it that is reasonably likely to, individually or taken together with all other facts, events and circumstances known to it, (i) cause or result in any condition to the closing of either the KMP Merger or KMR Merger to not be satisfied by the Outside Date or (ii) materially delay or impede the consummation of either the KMP Merger or the KMR Merger or (b) any litigation or governmental complaints, investigations or hearings, in each case to the extent such change, litigation, complaints, investigations, or hearings results in, or would reasonably be expected to materially delay or impede the consummation of either the KMP Merger or the KMR Merger.

        Section 5.15.    GP Conflicts Committee.     Prior to the earlier of the Effective Time and the termination of this Agreement, Parent shall not and it shall not permit any of its Subsidiaries to, and it shall not and shall not permit any of its Subsidiaries to take any action intended to cause the Partnership GP to, without the consent of a majority of the then existing members of the GP Conflicts

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Committee, eliminate the GP Conflicts Committee, revoke or diminish the authority of the GP Conflicts Committee or remove or cause the removal of any director of the Partnership GP that is a member of the GP Conflicts Committee either as a director or as a member of such committee. For the avoidance of doubt, this Section 5.145 shall not apply to the filling, in accordance with the provisions of the Partnership GP LLC Agreement, of any vacancies caused by the resignation, death or incapacity of any such director.

        Section 5.16.    Amendments to KMP Merger Agreement and KMR Merger Agreement.     At any time prior to the Effective Time, Parent may not, without the prior written consent of the GP Board, amend, modify or terminate any provision of or grant any waiver or extension under the KMP Merger Agreement or the KMR Merger, in each case, in a manner which would prevent or materially impede or delay the ability of the parties to satisfy any of the conditions to, or the consummation of, the transactions set forth in this Agreement or have an adverse effect on the value of the Merger Consideration to be received by the Partnership Unitholders in the Merger; provided, however, that following approval of the Merger and the other transactions contemplated hereunder by the Limited Partners or the stockholders of Parent, there shall be no amendment or change to the provisions of the KMP Merger Agreement or the KMR Merger Agreement which by Law or stock exchange rule would require further approval by the Limited Partners or the stockholders of Parent without such approval.

        Section 5.17.    Performance by Partnership GP.     The Partnership GP shall cause the Partnership and its Subsidiaries to comply with the provisions of this Agreement. Notwithstanding the foregoing, it is understood and agreed that actions or inactions by the Partnership and the Partnership GP and their respective Subsidiaries shall not be deemed to be breaches or violations or failures to perform by Parent or its Subsidiaries of any of the provisions of this Agreement unless such action or inaction was or was not taken at the direction of or on the recommendation of, or with respect to the Partnership and the Partnership GP and their respective Subsidiaries and subject to Section 5.2(b), with the consent of, Parent.

        Section 5.18.    Performance by Parent.     Subject to the terms of the KMP Agreement and the KMR Agreement, Parent shall cause its Subsidiaries to comply with the provisions of this Agreement (it being understood that with respect to KMP and its general partner and KMR and their respective Subsidiaries, Parent's obligations shall only apply to the extent such obligation is appropriate under the Organizational Documents of KMP and its general partner and KMR.).

        Section 5.19.    Cooperation with Financing.     From and after the date of this Agreement, the Partnership shall, and the Partnership shall cause each of its Subsidiaries and use reasonable best efforts to cause its and their representatives (including their auditors) to, use its respective reasonable best efforts to provide all customary cooperation (including providing reasonably available financial and other information regarding the Partnership and its Subsidiaries for use in marketing and offering documents and to enable Parent to prepare pro forma financial statements) as reasonably requested by Parent to assist Parent in the arrangement of any bank debt financing or any capital markets debt financing, any repayment or refinancing of debt contemplated by this Agreement or required in connection with the Merger and the other transactions contemplated by this Agreement and any other amounts required to be paid in connection with the consummation of the Merger; it being understood that the arrangement of any bank debt financing or any capital markets debt financing or the repayment or refinancing of any debt shall not be a condition to Parent's or Merger Sub's obligations to effect the Merger. Parent shall indemnify and hold harmless the Partnership GP, the Partnership and their respective Subsidiaries from and against any and all losses or damages actually suffered or incurred by them directly in connection with the arrangement of any such bank debt financing or any capital markets debt financing.

        Section 5.20.    Tax Treatment.     For U.S. federal income tax purposes (and for purposes of any applicable state, local or foreign Tax that follows the U.S. federal income tax treatment), the parties

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agree to treat the Merger (i) with respect to the holders of Common Units (other than Common Units held by Parent and its Subsidiaries immediately prior to the Effective Time), as a taxable sale of such Common Units to Parent and (ii) with respect to Parent, as a purchase of Common Units (other than Common Units held by Parent and its Subsidiaries immediately prior to the Effective Time) from the holders of such units. The parties will prepare and file all Tax Returns consistent with the foregoing and will not take any inconsistent position on any Tax Return, or during the course of any audit, litigation or other proceeding with respect to Taxes, except as otherwise required by applicable Law following a final determination by a court of competent jurisdiction or other administrative settlement with or final administrative decision by the relevant Governmental Authority.


ARTICLE VI

Conditions Precedent

        Section 6.1.    Conditions to Each Party's Obligation to Effect the Merger.     The respective obligations of each party hereto to effect the Merger shall be subject to the satisfaction (or waiver, if permissible under applicable Law) on or prior to the Closing Date of the following conditions:

        Section 6.2.    Conditions to Obligations of Parent and Merger Sub to Effect the Merger.    The obligations of Parent and Merger Sub to effect the Merger are further subject to the satisfaction (or

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waiver, if permissible under applicable Law) on or prior to the Closing Date of the following conditions:

        Section 6.3.    Conditions to Obligation of the Partnership to Effect the Merger.     The obligation of the Partnership to effect the Merger is further subject to the satisfaction (or waiver, if permissible under applicable Law) on or prior to the Closing Date of the following conditions:

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        Section 6.4.    Frustration of Closing Conditions.     


ARTICLE VII

Termination

        Section 7.1.    Termination.     This Agreement may be terminated and the transactions contemplated by this Agreement abandoned at any time prior to the Effective Time:

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        Section 7.2.    Effect of Termination.     In the event of the termination of this Agreement as provided in Section 7.1, written notice thereof shall be given to the other party or parties, specifying the provision of this Agreement pursuant to which such termination is made, and this Agreement shall forthwith become null and void (other than the provisions in the last sentence of Section 5.6, Section 5.9, the last sentence of Section 5.19 and Section 7.2 and the provisions in Article VIII, all of which shall survive termination of this Agreement), and there shall be no liability on the part of any of Parent, Merger Sub or the Partnership and the Partnership GP or their respective directors, officers and Affiliates, except that (i) Parent may have liability as provided in the last sentence of Section 5.19 and (ii) nothing shall relieve any party hereto from any liability for any failure to consummate the Merger and the other transactions contemplated by this Agreement when required pursuant to this Agreement or any party from liability for fraud or a willful breach of any covenant or other agreement contained in this Agreement; provided, however that it no event shall the Partnership GP or the Partnership have any liability for any matter set forth in the preceding clause (ii) for any action taken or omitted to be taken (A) by the Partnership GP, the Partnership or any of their respective Subsidiaries, or any of their respective Representatives at the direction of the Parent or any of its Subsidiaries, or any of their respective Representatives or (B) by any Representative of the Partnership, the Partnership GP, or any of their respective Subsidiaries that is also a Representative of the Parent or any of its Subsidiaries (unless, in the case of clause (B), such Representative was acting at the direction of the GP Board).


ARTICLE VIII

Miscellaneous

        Section 8.1.    No Survival, Etc.     Except as otherwise provided in this Agreement, the representations, warranties and agreements of each party hereto shall remain operative and in full force and effect regardless of any investigation made by or on behalf of any other party hereto, whether prior to or after the execution of this Agreement. The representations, warranties and agreements in this Agreement shall terminate at the Effective Time or, except as otherwise provided in Section 7.2, upon

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the termination of this Agreement pursuant to Section 7.1, as the case may be, except that the agreements set forth in Article II and the last sentence of Section 5.6 and Section 5.9 and any other agreement in this Agreement that contemplates performance after the Effective Time shall survive the Effective Time.

        Section 8.2.    Amendment or Supplement.     At any time prior to the Effective Time, this Agreement may be amended or supplemented in any and all respects, whether before or after receipt of the Partnership Unitholder Approval and the Parent Stockholder Approval, by written agreement of the parties hereto, by action taken or authorized by Parent's Board of Directors and the GP Board; provided, however, that the GP Board may not take or authorize any such action unless it has first referred such action to the GP Conflicts Committee for its consideration, and permitted the GP Conflicts Committee not less than two (2) business days to make a recommendation to the GP Board with respect thereto (for the avoidance of doubt, the GP Board shall in no way be obligated to follow the recommendation of the GP Conflicts Committee and the GP Board shall be permitted to take action following the expiration of such two (2) business day period); provided, further, that following receipt of the Partnership Unitholder Approval or the Parent Stockholder Approval, there shall be no amendment or change to the provisions of this Agreement which by Law or stock exchange rule would require further approval by the Limited Partners or the stockholders of Parent, as applicable, without such approval. Unless otherwise expressly set forth in this Agreement, whenever a determination, decision, approval or consent of the Partnership or Partnership GP is required pursuant to this Agreement, such determination, decision, approval or consent must be authorized by the GP Board; provided, however, that the GP Board may not take or authorize any such action unless it has first referred such action to the GP Conflicts Committee for its consideration, and permitted the GP Conflicts Committee not less than two (2) business days to make a recommendation to the GP Board with respect thereto.

        Section 8.3.    Extension of Time, Waiver, Etc.     At any time prior to the Effective Time, any party may, subject to applicable Law, (a) waive any inaccuracies in the representations and warranties of any other party hereto, (b) extend the time for the performance of any of the obligations or acts of any other party hereto, (c) waive compliance by the other party with any of the agreements contained herein or, except as otherwise provided herein, waive any of such party's conditions or (d) make or grant any consent under this Agreement; provided, however, that, prior to the Partnership Unitholder Approval, the GP Board may not take or authorize any such action unless it has first referred such action to the GP Conflicts Committee for its consideration, and permitted the GP Conflicts Committee not less than two (2) business days to make a recommendation to the GP Board with respect thereto (for the avoidance of doubt, the GP Board shall in no way be obligated to follow the recommendation of the GP Conflicts Committee and the GP Board shall be permitted to take action following the expiration of such two (2) business day period) and, following the Partnership Unitholder Approval, the GP Board may not take or authorize any such action without the prior written consent of the GP Conflicts Committee. Notwithstanding the foregoing, no failure or delay by the Partnership, the Partnership GP, Parent or Merger Sub in exercising any right hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right hereunder. Any agreement on the part of a party hereto to any such extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf of such party.

        Section 8.4.    Assignment.     Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned, in whole or in part, by operation of Law or otherwise, by any of the parties without the prior written consent of the other parties, except that Merger Sub may assign, in its sole discretion, any of or all its rights, interests and obligations under this Agreement to any wholly owned Subsidiary of Parent, but no such assignment shall relieve Parent or Merger Sub of any of its obligations hereunder. Subject to the preceding sentence, this Agreement shall be binding upon, inure

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to the benefit of, and be enforceable by, the parties hereto and their respective successors and permitted assigns. Any purported assignment not permitted under this Section 8.4 shall be null and void.

        Section 8.5.    Counterparts.     This Agreement may be executed in counterparts (each of which shall be deemed to be an original but all of which taken together shall constitute one and the same agreement) and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties. Signatures to this Agreement transmitted by facsimile transmission, by electronic mail in "portable document format" (".pdf") form, or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing the original signature.

        Section 8.6.    Entire Agreement; No Third-Party Beneficiaries.     This Agreement, the Confidentiality Agreement, the Partnership Disclosure Schedule and the Parent Disclosure Schedule (a) constitute the entire agreement, and supersede all other prior agreements and understandings, both written and oral, among the parties with respect to the subject matter of this Agreement and thereof and (b) shall not confer upon any Person other than the parties hereto any rights (including third-party beneficiary rights or otherwise) or remedies hereunder, except for, in the case of clause (b), (i) the provisions of Section 5.7 and Section 8.13 and (ii) the right of the holders of Common Units to receive the Merger Consideration after the Closing (a claim by the holders of Common Units with respect to which may not be made unless and until the Closing shall have occurred). Notwithstanding anything to the contrary in this Agreement, Section 8.7 and Section 8.13 shall be for the benefit of, and enforceable by, any financing sources or lender providing financing in connection with the Merger.

        Section 8.7.    Governing Law; Jurisdiction; Waiver of Jury Trial.     

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        Section 8.8.    Specific Performance.     

        Section 8.9.    Notices.     All notices and other communications hereunder shall be in writing and shall be deemed given (a) upon personal delivery to the party to be notified; (b) when received when sent by email or facsimile by the party to be notified, provided, however, that notice given by email or facsimile shall not be effective unless either (i) a duplicate copy of such email or fax notice is promptly given by one of the other methods described in this Section 8.9 or (ii) the receiving party delivers a written confirmation of receipt for such notice either by email or fax or any other method described in this Section 8.9; or (c) when delivered by an courier (with confirmation of delivery); in each case to the party to be notified at the following address:

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or such other address or facsimile number as such party may hereafter specify by like notice to the other parties hereto. All such notices, requests and other communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 5:00 P.M. in the place of receipt and such day is a business day in the place of receipt. Otherwise, any such notice, request or communication shall be deemed not to have been received until 9:00 AM on the next succeeding business day in the place of receipt. Any party to this Agreement may notify any other party of any changes to the address or any of the other details specified in this paragraph; provided, however, that such notification shall only be effective on the date specified in such notice or five (5) business days after the notice is given, whichever is later. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to be receipt of the notice as of the date of such rejection, refusal or inability to deliver.

        Section 8.10.    Severability.     If any term or other provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other terms, provisions and conditions of this Agreement shall nevertheless remain in full force and effect. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible to the fullest extent permitted by applicable law in an acceptable manner to the end that the transactions contemplated by this Agreement are fulfilled to the extent possible.

        Section 8.11.    Definitions.     

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        The following terms are defined on the page of this Agreement set forth after such term below:

Acquisition Agreement

  32

Action

  51

Affiliate

  51

Aggregate Mixed Consideration Cash Amount

  4

Agreement

  1

Alternative Proposal

  34

Antitrust Laws

  36

Available Cash Election Amount

  4

Balance Sheet Date

  15

Book-Entry Units

  5

business day

  51

Cash Election

  3

Cash Election Amount

  3

Cash Election Unit

  3

Cash Fraction

  4

Certificate

  5

Certificate of Merger

  2

Charter Amendment

  3

Closing

  2

Closing Date

  2

Code

  8

Common Unit

  51

Company Class B Units

  12

Confidentiality Agreement

  37

Contract

  13

DGCL

  51

DLLCA

  51

DRULPA

  51

Effective Time

  2

Election Deadline

  9

Election Form

  9

Election Form Record Date

  9

Election Period

  9

Environmental Law

  51

Environmental Permits

  25

ERISA Affiliate

  51

Excess Shares

  8

Exchange Act

  14

Exchange Agent

  5

Exchange Fund

  5

Exchange Ratio

  4

Fractional Share Proceeds

  8

GAAP

  52

Governmental Authority

  52

GP Board

  1

GP Conflicts Committee

  1

Hazardous Substance

  52

HSR Act

  52

Incentive Distribution Rights

  52

Indemnified Person

  37

KMP

  1

KMP Merger

  52

KMP Merger Agreement

  52

KMP Unitholder Meeting

  52

KMR

  1

KMR Merger

  52

KMR Merger Agreement

  52

KMR Shareholder Meeting

  52

Law

  15

Laws

  15

Liens

  12

Limited Partner

  52

Long-Term Incentive Plan

  52

Mailing Date

  9

Material Adverse Effect

  53

Maximum Amount

  38

Merger

  2

Merger Consideration

  3

Merger Sub

  1

Mixed Consideration Election Unit

  3

Mixed Election

  3

No Election Unit

  9

NYSE

  53

Organizational Documents

  11

Outside Date

  44

Outstanding

  53

Parent

  1

Parent Adverse Recommendation Change

  29

Parent Benefit Plans

  25

Parent Board Recommendation

  29

Parent Charter Approval

  20

Parent Class P Stock

  1

Parent Common Stock

  18

Parent Disclosure Schedule

  18

Parent Fairness Opinion

  26

Parent Financial Advisors

  26

Parent Intellectual Property

  26

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Parent Material Adverse Effect

  18

Parent Material Contract

  24

Parent Notice Period

  29

Parent Permits

  23

Parent Preferred Stock

  18

Parent Proxy Statement

  16

Parent SEC Documents

  21

Parent Stock Issuance

  1

Parent Stock Issuance Approval

  20

Parent Stockholder Approval

  20

Parent Stockholder Meeting

  29

Parent Warrants

  54

Partnership

  1

Partnership Adverse Recommendation Change

  32

Partnership Agreement

  54

Partnership Board Recommendation

  28

Partnership Disclosure Schedule

  11

Partnership Fairness Opinion

  17

Partnership Financial Advisor

  17

Partnership GP

  1

Partnership GP Interest

  12

Partnership GP LLC Agreement

  54

Partnership Interest

  54

Partnership Material Adverse Effect

  11

Partnership Material Contract

  54

Partnership Notice Period

  34

Partnership Proxy Statement

  14

Partnership SEC Documents

  14

Partnership Subordinated Units

  12

Partnership Unaffiliated Unitholders

  54

Partnership Unitholder Approval

  13

Partnership Unitholder Meeting

  28

Per Unit Cash Election Consideration

  3

Per Unit Mixed Consideration

  3

Per Unit Mixed Consideration Cash Amount

  3

Per Unit Mixed Election Stock Exchange Ratio

  3

Per Unit Stock Consideration

  4

Permits

  23

Person

  54

Proceeding

  37

Proxy Statements

  16

Registration Statement

  15

Release

  54

Representatives

  32

Restraints

  42

Restricted Unit

  10

rights-of-way

  26

Sarbanes-Oxley Act

  15

Schedule 13E-3

  15

SEC

  54

Securities Act

  12

share proceeds

  8

Stock Election

  4

Stock Election Unit

  4

Subsidiary

  54

Superior Proposal

  35

Support Agreement

  1

Surviving Entity

  2

Tax

  16

Tax Return

  16

Taxes

  16

Transactions

  54, 55

Unit

  55

        Section 8.12.    Interpretation.     

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        Section 8.13.    Non-Recourse.     No past, present or future director, officer, employee, incorporator, member, partner, stockholder, financing source, lender, agent, attorney, representative or affiliate of any party hereto or of any of their respective Affiliates (unless such Affiliate is expressly a party to this Agreement) shall have any liability (whether in contract or in tort or otherwise) for any obligations or liabilities arising under, in connection with or related to this Agreement or for any claim based on, in respect of, or by reason of, the transactions contemplated by this Agreement; provided, however, that nothing in this Section 8.13 shall limit any liability of the parties to this Agreement for breaches of the terms and conditions of this Agreement.

[signature page follows]

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        IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered as of the date first above written.

    PARENT:

 

 

KINDER MORGAN, INC.

 

 

By:

 

/s/ DAX SANDERS

        Name:   Dax Sanders
        Title:   Vice President

 

 

MERGER SUB:

 

 

E MERGER SUB LLC

 

 

By:

 

/s/ DAX SANDERS

        Name:   Dax Sanders
        Title:   Vice President

 

 

PARTNERSHIP:

 

 

EL PASO PIPELINE PARTNERS, L.P.

 

 

By:

 

EL PASO PIPELINE GP COMPANY, L.L.C., its general partner

 

 

By:

 

/s/ DAVID R. DEVEAU

        Name:   David R. DeVeau
        Title:   Vice President

 

 

PARTNERSHIP GP:

 

 

EL PASO PIPELINE GP COMPANY, L.L.C.

 

 

By:

 

/s/ DAVID R. DEVEAU

        Name:   David R. DeVeau
        Title:   Vice President

   

[SIGNATURE PAGE TO THE AGREEMENT AND PLAN OF MERGER]


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EXHIBIT A

FORM OF CHARTER AMENDMENT

See attached.


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EXHIBIT A

CERTIFICATE OF AMENDMENT
OF
CERTIFICATE OF INCORPORATION
OF
KINDER MORGAN, INC.

[                        ], 201[    ]

        Kinder Morgan, Inc., a corporation organized and existing under the laws of the State of Delaware (the "Company"), hereby certifies as follows:

[Signature Page to Follow.]


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        IN WITNESS WHEREOF, the undersigned has duly executed this Certificate of Amendment of the Certificate of Incorporation as of the date first written above.

    KINDER MORGAN, INC.

 

 

By:

 

 

        Name:    
        Title:    

   

[Certificate of Amendment to the Certificate of Incorporation of Kinder Morgan, Inc.]


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Annex B

GRAPHIC

August 9, 2014

Conflicts Committee
El Paso Pipeline GP Company, L.L.C.
Attn: Arthur C. Reichstetter
c/o Vinson & Elkins LLP
1001 Fannin Street, Suite 2500
Houston, Texas 77002

Members of the Conflicts Committee:

        You have requested our opinion as to the fairness from a financial point of view to the holders of common units representing limited partner interests ("Common Units") in El Paso Pipeline Partners, L.P. (the "Partnership") (other than Kinder Morgan, Inc. ("KMI"), El Paso Pipeline GP Company, L.L.C., the general partner of the Partnership ("EPP GP"), and their respective affiliates) (the "Unaffiliated Public Unitholders") of the consideration to be received by such Unaffiliated Public Unitholders pursuant to the Agreement and Plan of Merger dated as of August 9, 2014 (the "Agreement") by and among the Partnership, EPP GP, KMI and E Merger Sub LLC, a wholly owned subsidiary of KMI ("Merger Sub" and, collectively with the Partnership, EPP GP and KMI, the "Parties"). The Agreement provides, among other things, that Merger Sub will be merged with and into the Partnership (the "Merger"), pursuant to which the Partnership will be the surviving entity, and each issued and outstanding Common Unit (other than Common Units held by the Partnership or otherwise owned by EPP GP, KMI or any of its subsidiaries) will be converted into the right to receive, at the election of the holder and subject to certain limitations and proration procedures set forth in the Agreement (as to which we express no opinion), one of the following (a) (i) $4.65 in cash and (ii) 0.9451 shares of KMI Class P Common Stock ("Common Stock"), (b) 1.0711 shares of Common Stock or (c) $39.53 in cash (each of (a), (b) and (c), as the case may be, being referred to as the "Merger Consideration"). The terms and conditions of the Merger are set forth in more detail in the Agreement, and references to the Merger set forth herein are qualified in their entirety by the terms of the Agreement.

        Concurrently with entering into the Agreement, KMI will enter into separate agreements and plans of merger with each of Kinder Morgan Energy Partners, L.P. ("KMP") and Kinder Morgan Management, LLC ("KMR") (each an "Additional Merger Agreement" and, collectively, the "Additional Merger Agreements"). Pursuant to the terms of the Additional Merger Agreements, KMI, or a wholly owned subsidiary of KMI, will merge with and into KMP and KMR, respectively, with KMP and KMR surviving the respective mergers (each an "Additional Merger" and, collectively, the "Additional Mergers" and, together with the Merger, the "Transactions"). The closings of the Merger and each of the Additional Mergers are conditioned upon one another. At the closing of the Merger and each Additional Merger, the Partnership, KMP and KMR will be wholly owned subsidiaries of KMI.

GRAPHIC

   

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        Tudor, Pickering, Holt & Co. Securities, Inc. (including its affiliates, "TPH"), as part of its investment banking business, is continually engaged in performing financial analyses with respect to businesses and their securities in connection with mergers and acquisitions, negotiated underwritings, competitive biddings, secondary distributions of listed and unlisted securities, private placements and other transactions, as well as for estate, corporate and other purposes. TPH also engages in securities trading and brokerage, private equity activities, equity research and other financial services, and in the ordinary course of these activities, TPH may from time to time acquire, hold or sell, for its own accounts and for the accounts of its customers, (i) equity, debt and other securities (or related derivative securities) and financial instruments (including bank loans and other obligations) of the Partnership, EPP GP, KMI and any of the other companies that may be involved in the Transactions, including the Parties and any of their respective affiliates, including KMP and KMR, and (ii) any currency or commodity that may be involved in the Transactions and the other matters contemplated by the Agreement. In addition, TPH and certain of its employees, including members of the team performing services in connection with the Merger, as well as certain private equity funds associated or affiliated with TPH in which they may have financial interests, may from time to time acquire, hold or make direct or indirect investments in or otherwise finance a wide variety of companies, including the Partnership, EPP GP, KMI, KMP, KMR, other prospective counterparties and their respective affiliates. We have acted as financial advisor to the Conflicts Committee of the Board of Directors of EPP GP (the "Committee") in connection with, and have participated in certain of the negotiations leading to, the Merger. We expect to receive fees for our services in connection with our engagement by the Committee, a portion of which are payable upon rendering this opinion and a portion of which are contingent upon the consummation of the Merger, and the Partnership has agreed to reimburse our expenses arising, and indemnify us against certain liabilities that may arise, out of our engagement. We have in the past performed various investment banking and financial services for the Committee and various affiliates or portfolio companies of KMI, including the Partnership, for which we received customary compensation. In the past two years these services consisted of acting as financial advisor to the Committee in April 2014 in connection with a private transaction pursuant to which KMI and certain of its affiliates contributed assets to the Partnership. We may in the future provide investment banking or other financial services to the Parties or any of the other companies involved in the Transactions or their respective shareholders, unitholders, members, affiliates or portfolio companies. In connection with such investment banking or other financial services, we may receive compensation.

        In connection with this opinion, we have reviewed, among other things: (i) the Agreement; (ii) annual reports to unitholders and stockholders, as applicable, and Annual Reports on Form 10-K for each of the Partnership, KMP, KMR and KMI for each of the years in the three years ended December 31, 2013; (iii) certain interim reports to unitholders and stockholders, as applicable, and Quarterly Reports on Form 10-Q for each of the Partnership, KMP, KMR and KMI; (iv) certain other communications from the Partnership, KMP, KMR and KMI to their respective equity holders; (v) certain publicly available research analyst reports for the Partnership, KMP, KMR and KMI; (vi) certain internal financial analyses and forecasts for (a) the Partnership prepared by the management of EPP GP, (b) KMP prepared by the management of KMP's general partner, and (c) KMI, both on a stand-alone and pro forma basis giving effect to the Transactions, prepared by its management, in each case as approved for our use by the Committee and management of EPP GP (the "Forecasts"), including certain cost savings and operating synergies projected by management of EPP GP and KMI to result from the Transactions, as approved for our use by the Committee and management of EPP GP (the "Synergies"); (vii) certain other presentations prepared by KMI and its financial advisors; and (viii) the Additional Merger Agreements, each dated August 9, 2014. We have also (a) held discussions with members of senior management of EPP GP and KMI regarding their assessment of the strategic rationale for, and the potential benefits of, the Transactions and the past and current business operations, financial condition and future prospects of the Partnership, KMP and KMI, (b) reviewed the reported price and trading activity for the Common Units and the Common

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Stock, (c) compared certain financial and stock market information for the Partnership, KMP and KMI with similar financial and stock market information for certain other companies, the securities of which are publicly traded, (d) reviewed the financial terms of certain recent business combinations in the midstream energy industry, (e) compared the relative contribution by each of KMI, KMP and the Partnership of certain financial metrics we deemed relevant to the pro forma entity with the relative ownership in the pro forma entity of the unitholder or stockholders of each such entity and (f) performed such other studies and analyses, and considered such other factors, as we deemed appropriate.

        For purposes of our opinion, we have assumed and relied upon, without assuming any responsibility for independent verification, the accuracy and completeness of all of the financial, accounting, legal, tax and other information provided to, discussed with or reviewed by or for us, or publicly available. In that regard, we have assumed with your consent that the Forecasts and Synergies have been reasonably prepared on a basis reflecting the best currently available estimates and judgments of the management of EPP GP, KMP's general partner and KMI, and that such Forecasts and Synergies will be realized in the amounts and time periods contemplated thereby. We have also assumed that all governmental, regulatory or other consents or approvals necessary for the consummation of the Transactions will be obtained without any material adverse effect on the Partnership, KMI, Merger Sub, the unitholders of the Partnership or the stockholders of KMI or the expected benefits of the Transactions in any way meaningful to our analysis. In addition, we have not made an independent evaluation or appraisal of the assets and liabilities (including any contingent, derivative or off-balance-sheet assets and liabilities) of the Partnership or any of its subsidiaries or KMI, KMP or KMR or any of their subsidiaries, and we have not been furnished with any such evaluation or appraisal. We do not express any opinion as to any tax or other consequences that might result from the Transactions, nor does our opinion address any legal, regulatory or accounting matters. We have also assumed that the Transactions will be consummated on the terms set forth in the Agreement and the Additional Merger Agreements, without the waiver or modification of any term or condition the effect of which would be in any way meaningful to our analysis.

        Our opinion does not address the underlying business decision of the Committee, EPP GP, the Partnership or KMI to engage in the Merger or any of the Transactions or the relative merits of the Merger or any of the Transactions as compared to any other alternative transactions that may be available to the Partnership or EPP GP. This opinion addresses only the fairness, from a financial point of view, as of the date hereof, of the Merger Consideration to be received by the Unaffiliated Public Unitholders pursuant to the Agreement. We do not express any view on, and our opinion does not address, any other term or aspect of the Agreement or the Merger, including, without limitation: (a) the fairness of the Merger to, or any consideration paid or received in connection therewith by, the holders of any other class of securities, creditors or other constituencies of the Partnership, EPP GP or KMI, whether relative to the Merger Consideration pursuant to the Agreement or otherwise; (b) the allocation of any consideration to be paid by KMI or its affiliates in the Transactions; (c) the fairness of the amount or nature of any compensation to be paid or payable to any of the officers, directors or employees of EPP GP, KMI or any other party, or any class of such persons, in connection with the Transactions, whether relative to the Merger Consideration to be paid to the Unaffiliated Public Unitholders pursuant to the Agreement or otherwise; and (d) the Additional Mergers contemplated by each Additional Merger Agreement (other than taking into consideration analyses relating to KMI on a pro forma basis giving effect to the Transactions). We are not expressing any opinion as to the price at which shares of the Common Stock will trade at any time or as to the impact of the Transactions on the solvency or viability of the Partnership or KMI or the ability of the Partnership or KMI to pay its obligations when they come due. Our opinion is necessarily based on economic, monetary, market and other conditions as in effect on, and the information made available to us as of, the date hereof. We assume no obligation to update, revise or reaffirm our opinion and expressly disclaim any responsibility to do so based on circumstances, developments or events occurring after the date hereof. Our advisory

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services and the opinion expressed herein are provided for the information and assistance of the Committee in connection with its consideration of the Merger, and such opinion does not constitute a recommendation as to how any holder of interests in the Partnership, KMI or any party to the Transactions should vote with respect to the Merger, any of the Transactions or any other matter. This opinion has been reviewed and approved by TPH's fairness opinion committee.

        Based upon and subject to the foregoing, it is our opinion that, as of the date hereof, the Merger Consideration to be received by the Unaffiliated Public Unitholders pursuant to the Agreement is fair, from a financial point of view, to such Unaffiliated Public Unitholders.

    Very truly yours,

 

 

TUDOR, PICKERING, HOLT & CO. SECURITIES, INC.

 

 

By:

 

/s/ LANCE GILLILAND

Lance Gilliland
Managing Director

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Annex C


LOGO
  745 Seventh Avenue
New York, NY 10019
United States

August 9, 2014

Board of Directors
Kinder Morgan, Inc.
1001 Louisiana Street
Suite 1000
Houston, TX 77002

Members of the Board of Directors:

        We understand that Kinder Morgan, Inc. (the "Company") intends to enter into three transactions (the "Proposed Transactions") pursuant to which (i)(a) P Merger Sub LLC, a wholly-owned subsidiary of the Company ("KMP Merger Sub") will merge (the "KMP Merger") with and into Kinder Morgan Energy Partners, L.P. ("KMP"), with KMP as the surviving entity in the KMP Merger, (b) the Company and the Company's subsidiaries will become the sole limited partners of KMP, and (c) upon the effectiveness of the KMP Merger, each issued and outstanding, or deemed to be issued and outstanding, Common Unit (as defined in the KMP Merger Agreement (as defined below)) (other than (p) Units (as defined in the KMP Merger Agreement) held by KMP, which shall be cancelled and cease to exist, and (q) Partnership Interests (as defined in the KMP Merger Agreement) held by Kinder Morgan G.P., Inc., the general partner of KMP ("KMP GP"), Kinder Morgan Management, LLC, the delegate of KMP GP (the "KMP GP Delegate"), the Company or any of its subsidiaries, all of which shall remain outstanding as partnership interests in the surviving entity in the KMP Merger, unaffected by the KMP Merger) shall be converted into the right to receive, at the election of each Common Unit holder (x) 2.1931 shares of Class P common stock, par value $0.01 ("Company Class P Stock") of the Company (the "P Per Unit Mixed Election Exchange Ratio") and $10.77 in cash without interest (the "P Per Unit Mixed Election Cash Amount" and, together with the P Per Unit Mixed Election Exchange Ratio, the "P Per Unit Mixed Election Consideration"), (y) $91.72 in cash without interest (the "P Per Unit Cash Election Consideration") or (z) 2.4849 shares of Company Class P Stock (the "P Per Unit Stock Election Consideration" and the Company Class P Stock contemplated by the KMP Merger Agreement to be issued in the aggregate to Common Unit (as defined in the KMP Merger Agreement) holders in the KMP Merger, together with the aggregate amount of cash contemplated by the KMP Merger Agreement to be paid to Common Unit (as defined in the KMP Merger Agreement) holders in the KMP Merger, the "KMP Merger Consideration"), subject, in the case of the P Per Unit Mixed Election Consideration, the P Per Unit Cash Election Consideration and the P Per Unit Stock Election Consideration, to certain adjustments, limitations and proration procedures set forth in the KMP Merger Agreement, as to which adjustments, limitations and procedures we express no opinion; (ii)(a) R Merger Sub LLC, a wholly-owned subsidiary of the Company ("KMR Merger Sub") will merge (the "KMR Merger") with and into Kinder Morgan Management, LLC ("KMR"), with KMR as the surviving entity in the KMR Merger, (b) the Company will become the sole shareholder or sole member of KMR, and (c) upon the effectiveness of the KMR Merger, each issued and outstanding Listed Share and Voting Share (each as defined in the KMR Merger Agreement) (other than Company Securities (as defined in the KMR Merger Agreement) that are held by KMR, the Company, KMR Merger Sub or KMP GP, which shall be cancelled and cease to exist without consideration in exchange therefor, but excluding Voting Shares held by KMP GP, each of which shall be converted into the right to receive KMR Merger Consideration (as defined below)) shall be converted into the right to receive 2.4849 shares of Company Class P Stock (the Company Class P Stock contemplated by the KMR Merger Agreement to be issued in the aggregate to Listed Share and Voting Share holders, the "KMR

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Merger Consideration"); and (iii)(a) E Merger Sub LLC, a wholly-owned subsidiary of the Company ("EPB Merger Sub") shall merge (the "EPB Merger") with and into El Paso Pipeline Partners, L.P. ("EPB"), with EPB as the surviving entity in the EPB Merger, (b) the Company and the Company's subsidiaries will become the sole limited partners of EPB, and (c) upon the effectiveness of the EPB Merger, each issued and outstanding Common Unit (as defined in the EPB Merger Agreement) (other than (r) Units (as defined in the EPB Merger Agreement) held by EPB, which shall be cancelled and cease to exist, or (s) Partnership Interests (as defined in the EPB Merger Agreement) held by El Paso Pipeline GP Company, L.L.C. ("EPB GP"), the Company or any of its subsidiaries, all of which shall remain outstanding as Partnership Interests in the surviving entity of the EPB Merger, unaffected by the EPB Merger) shall be converted into the right to receive, at the election of each Common Unit holder (x) 0.9451 shares of Company Class P Stock (the "E Per Unit Mixed Election Exchange Ratio") and $4.65 in cash without interest (the "E Per Unit Mixed Election Cash Amount" and, together with the E Per Unit Mixed Election Exchange Ratio, the "E Per Unit Mixed Election Consideration"), (y) $39.53 in cash without interest (the "E Cash Election Consideration") or (z) 1.0711 shares of Company Class P Stock (the "E Stock Election Consideration," and the Company Class P Stock contemplated by the EPB Merger Agreement to be issued in the aggregate to Common Unit (as defined in the EPB Merger Agreement) holders in the EPB Merger, together with the aggregate amount of cash contemplated by the EPB Merger Agreement to be paid to Common Unit (as defined in the EPB Merger Agreement) holders in the EPB Merger, the "EPB Merger Consideration" and, together with the KMP Merger Consideration and the KMR Merger Consideration, collectively, the "Transactions Consideration"), in the case of the E Per Unit Mixed Election Consideration, the E Cash Election Consideration and the E Stock Election Consideration, subject to certain adjustments, limitations and proration procedures set forth in the KMP Merger Agreement, as to which adjustments, limitations and procedures we express no opinion. The terms and conditions of the Proposed Transactions are set forth in more detail in (A) the Agreement and Plan of Merger (the "KMP Merger Agreement"), dated August 9, 2014, by and among the Company, KMP Merger Sub, KMP GP, KMP GP Delegate and KMP (together with the Company, KMP Merger Sub, KMP and KMP GP Delegate, the "P Counterparties"); (B) the Agreement and Plan of Merger ("KMR Merger Agreement"), dated August 9, 2014, by and among the Company, KMR Merger Sub, and KMR (together with the Company and KMR Merger Sub, the "R Counterparties"); and (C) the Agreement and Plan of Merger (the "EPB Merger Agreement" and, together with the KMP Merger Agreement and the KMR Merger Agreement, collectively, the "Agreements"), dated August 9, 2014, by and among the Company, EPB Merger Sub, EPB GP and EPB (together with the Company, EPB Merger Sub and EPB GP, the "E Counterparties" and, together with the P Counterparties and the R Counterparties, collectively, the "Counterparties"). The summary of the Proposed Transactions set forth above is qualified in its entirety by the terms of the Agreements.

        We have been requested by the Board of Directors of the Company to render our opinion with respect to the fairness, from a financial point of view, to the Company of the Transactions Consideration to be paid in the aggregate by the Company in the Proposed Transactions. We have not been requested to opine as to, and our opinion does not in any manner address, the Company's underlying business decision to proceed with or effect any or all of the Proposed Transactions, the likelihood of consummation of any or all of the Proposed Transactions or the relative merits of any or all of the Proposed Transactions as compared to any strategic alternatives that may be available to the Company (including pursuing any of the Proposed Transactions individually). In addition, we express no opinion on, and our opinion does not in any manner address, the fairness of the amount or the nature of any compensation to any officers, directors or employees of any parties to the Proposed

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Transactions, or any class of such persons, relative to the consideration paid in the aggregate in the Proposed Transactions or otherwise.

        In arriving at our opinion, we reviewed and analyzed: (1) drafts, dated as of dated August 9, 2014, of each of the Agreements and the specific terms of the Proposed Transactions; (2) a draft, dated as of August 9, 2014, of a debt commitment letter (the "Commitment Letter") from Barclays Bank PLC to the Company in respect of certain financing relating to the Proposed Transactions; (3) publicly available information concerning each of the Company, KMP, KMR, and EPB that we believe to be relevant to our analysis, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2013 and Quarterly Reports on Form 10-Q for the fiscal quarters ended June 30, 2014 and March 31, 2014; (4) financial and operating information with respect to the business, operations and prospects of the Company furnished to us by the Company, including financial projections of the Company, KMP, KMR, and EPB prepared by management of the Company for fiscal years 2015 through 2020; (5) a trading history of the Company's common stock from August 8, 2012 through and including August 8, 2014, a trading history of KMP's, KMR's, and EPB's common stock or common units, as applicable, from August 8, 2013 through and including August 8, 2014, and a comparison of those trading histories with those of other companies that we deemed relevant; (6) a comparison of the historical financial results and present financial condition of the Company with each of KMP, KMR and EPB and of the Company, KMP, KMR and EPB with those of other companies that we deemed relevant; (7) a comparison of the financial terms of the Proposed Transactions with the financial terms of certain other transactions that we deemed relevant; (8) the pro forma impact of the Proposed Transactions on the future financial performance of the combined company, including (i) cost savings and estimated tax savings ("Expected Synergies") and (ii) the anticipated impact on coverage ratios, cash available for distributions to the Company, cost of capital and credit ratings, and the resulting potential impact on the availability of cash for dividends, each expected by the management of the Company to result from a combination of the businesses as a result of the Proposed Transactions (the "Expected Benefits"); and (9) published estimates of independent research analysts with respect to the future financial performance of the Company, KMP, KMR, and EPB. In addition, we have had discussions with the management of the Company concerning the business, operations, assets, liabilities, financial condition and prospects of the Company, KMP, KMR, and EPB and have undertaken such other studies, analyses and investigations as we deemed appropriate.

        In arriving at our opinion, we have assumed and relied upon the accuracy and completeness of the financial and other information used by us without any independent verification of such information (and have not assumed responsibility or liability for any independent verification of such information) and have further relied upon the assurances of the management of the Company that they are not aware of any facts or circumstances that would make such information inaccurate or misleading. With respect to the financial projections of the Company, upon the advice of the Company, we have assumed that such projections have been reasonably prepared on a basis reflecting the best currently available estimates and judgments of the management of the Company as to the future financial performance of the Company and that the Company will perform substantially in accordance with such projections. With respect to the financial projections of KMP, KMR, and EPB, upon the advice of the Company, we have assumed that such projections have been reasonably prepared on a basis reflecting the best currently available estimates and judgments of the management of the Company as to the future financial performance of KMP, KMR, and EPB and we have relied on such projections in arriving at our opinion. Furthermore, upon the advice of the Company, we have assumed that the amounts and timing of the Expected Synergies and Expected Benefits are reasonable and that the

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Expected Synergies and Expected Benefits will be realized in accordance with such estimates. We assume no responsibility for and we express no view as to any such projections or estimates or the assumptions on which they are based. In arriving at our opinion, we have not conducted a physical inspection of the properties and facilities of the Company, KMP, KMR, or EPB and have not made or obtained any evaluations or appraisals of the assets or liabilities of the Company, KMP, KMR, or EPB. Our opinion necessarily is based upon market, economic and other conditions as they exist on, and can be evaluated as of, the date of this letter. We assume no responsibility for updating or revising our opinion based on events or circumstances that may occur after the date of this letter. We express no opinion as to (i) the prices at which shares of Company Class P Stock, Company Securities of KMR, Common Units of KMP or EPB or any other securities of the Company, KMR, KMP or EPB, would trade at any time following the announcement of the Proposed Transactions or shares of Company Class P Stock or any security of the Company would trade following the consummation of the Proposed Transactions; (ii) the credit rating of the Company at any time following the announcement or consummation of the Proposed Transactions; or (iii) any determination of the dividend policy of the Company following the consummation of the Proposed Transactions.

        We have assumed that each of the executed Agreements and the Commitment Letter will conform in all material respects to the last drafts thereof reviewed by us. In addition, we have assumed the accuracy of the representations and warranties contained in the Agreements and all agreements related thereto. We have also assumed, upon the advice of the Company, that all material governmental, regulatory and third party approvals, consents and releases for the Proposed Transactions will be obtained within the constraints contemplated by the Agreement and that the Proposed Transactions will be consummated in accordance with the terms of the Agreement without waiver, modification or amendment of any material term, condition or agreement thereof (including that all of the Proposed Transactions will be consummated substantially concurrently). We have assumed that the Company will obtain financing on terms no less favorable to the Company than the terms contemplated by the Commitment Letter. We do not express any opinion as to any tax or other consequences that might result from the Proposed Transactions, nor does our opinion address any legal, tax, regulatory or accounting matters, as to which we understand that the Company has obtained such advice as it deemed necessary from qualified professionals.

        Based upon and subject to the foregoing, we are of the opinion as of the date hereof that, from a financial point of view, the Transactions Consideration to be paid in the aggregate by the Company in the Proposed Transactions is fair to the Company.

        We have acted as financial advisor to the Company in connection with the Proposed Transactions and will receive fees for our services, a portion of which is payable upon rendering this opinion and a substantial portion of which is contingent upon the consummation of the Proposed Transactions. In addition, the Company has agreed to reimburse a portion of our expenses and indemnify us for certain liabilities that may arise out of our engagement. We have performed various investment banking and financial services for the Company and the Counterparties in the past, and expect to perform such services in the future, and have received, and expect to receive, customary fees for such services. Specifically, in the past two years, we have performed the following investment banking and financial services: (i)(a) in August 2012, we rendered a fairness opinion to the Company in connection with the Company's sale of its 100% interest in Tennessee Gas Pipeline and 50% interest in El Paso Natural Gas to KMP, (b) in August 2012, we acted as joint bookrunner on the Company's secondary offering of 66,700,000 shares of common stock by selling stockholders, (c) in October 2012, we acted as sole book runner on the Company's secondary offering of 69,296,921 shares of common stock by selling

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stockholders, (d) in November 2012, we acted as administrative agent on the Company's amendment to its $1,750,000,000 revolving credit facility, and (e) in October 2013, we acted as joint bookrunner on the Company's $1,500,000,000 7.25-year and 10-year senior notes offering; (ii) in September 2012, we acted as joint bookrunner on EPB's follow-on offering of 8,165,000 common units; and (iii)(a) in August 2012, we acted as financial advisor on KMP's sale of Rockies Pipelines, (b) in December 2012, we acted as sole bookrunner on KMP's follow-on offering of 4,485,000 common units, (c) in May 2013, we acted as bookrunner on KMP's refinancing of its $2,700,000,000 credit facility, (d) in February 2014, we acted as joint bookrunner on KMP's $1,500,000,000 7-year and 30-year Senior Notes offering, (e) in February 2014, we acted as joint bookrunner on KMP's follow-on offering of 7,935,000 common units, and (f) in August 2014, we acted as administrative agent, sole arranger and sole bookrunner on KMP's $1,000,000,000 credit facility.

        Barclays Capital Inc. and its affiliates engage in a wide range of businesses from investment and commercial banking, lending, asset management and other financial and non-financial services. In the ordinary course of our business, we and our affiliates may actively trade and effect transactions in the equity, debt and/or other securities (and any derivatives thereof) and financial instruments (including loans and other obligations) of the Company and the Counterparties for our own account and for the accounts of our customers and, accordingly, may at any time hold long or short positions and investments in such securities and financial instruments.

        This opinion, the issuance of which has been approved by our Fairness Opinion Committee, is for the use and benefit of the Board of Directors of the Company and is rendered to the Board of Directors in its consideration of the Proposed Transactions. This opinion is not intended to be and does not constitute a recommendation to any stockholder of the Company as to how such stockholder should vote or act with respect to the Proposed Transactions.

    Very truly yours,

 

 

/s/ BARCLAYS CAPITAL INC.

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