Kinder Morgan, Inc. Makes Final Investment Decision on Trans Mountain Expansion Project

Kinder Morgan Canada Limited Prices C$1.75 billion Initial Public
Offering

HOUSTON–(BUSINESS WIRE)–Kinder Morgan, Inc., (NYSE: KMI), today announced a final investment
decision for the Trans Mountain Expansion Project in conjunction with
its indirect subsidiary, Kinder Morgan Canada Limited (KML), pricing its
initial public offering (the Offering) of 102.9 million shares of common
stock at a price to the public of C$17.00 per share for total gross
proceeds of C$1.75 billion. The final investment decision is conditioned
on the successful completion of the IPO, which is expected to take place
by not later than May 31, 2017.

“Upon the completion of the IPO, we will have secured satisfactory
financing for the Trans Mountain Expansion Project. We are excited to be
moving forward on this tremendous project which is expected to benefit
KMI and KML as well as our Trans Mountain shippers and Canada,” said
Steve Kean, Kinder Morgan chief executive officer. “The KML IPO is one
of the largest ever in Canada and provides Canadian investors the
opportunity to invest in a leading integrated midstream set of western
Canadian assets. We are very pleased to price the Offering and excited
about the future growth opportunities that this platform enables. The
Offering also strengthens KMI’s balance sheet and strengthens our
ability to return value to shareholders.”

“Our execution planning is complete, our approvals are in hand, and we
are now ready to commence construction activities this fall generating
thousands of direct jobs for Canadians, including significant benefits
to Indigenous communities in Alberta and British Columbia,” said Ian
Anderson, president of Kinder Morgan Canada Limited.

The Trans Mountain Expansion Project is a C$7.4 billion project (with a
remaining cash spend of C$6.2 billion as of March 31, 2017) which upon
completion will provide western Canadian oil producers with an
additional approximately 590,000 barrels per day (resulting in total
pipeline capacity of 890,000 barrels per day) of shipping capacity and
tidewater access to the western United States and global markets. The
project is underpinned by 15- and 20-year shipper commitments of 707,500
barrels per day, or roughly 80 percent of the capacity on the expanded
pipeline, with the other 20 percent reserved for spot volumes as
required by the National Energy Board. Construction on the project is
expected to begin in September 2017 with completion expected in December
2019.

The final investment decision was contingent on securing financing.
While the political climate was not ideal, the process proceeded at this
time because the Trans Mountain Expansion Project financing contingency
period, as specified in shipper agreements, concludes at the end of May.

The Offering constitutes a sale of a portion of KMI’s interest in the
Canadian business of KMI (the Business). The Business is composed of:
the Trans Mountain pipeline system (including related terminals assets),
the Puget Sound pipeline, the Jet Fuel pipeline system, the Canadian
portion of the Cochin pipeline system, the Vancouver Wharves Terminal
and the North 40 Terminal; as well as three jointly controlled
investments: the Edmonton Rail Terminal, the Alberta Crude Terminal and
the Base Line Terminal.

KMI will use the proceeds it receives to pay down debt. As a result, KMI
now expects to end the year at approximately 5.2X debt to EBITDA versus
its budget of 5.4X and remains on track to announce revised dividend
guidance for 2018 in the latter part of this year, consistent with the
previously announced goal of returning additional value to shareholders.
Upon closing of the Offering, KMI will own an approximately 70 percent
interest in the Business, which will be operated and administered by KML
and its affiliates.

An amended and restated preliminary prospectus of KML containing
important information relating to these securities has been filed with
the securities commissions or similar authorities in each province and
territory of Canada. The amended and restated prospectus of KML is still
subject to completion or amendment. Copies of the amended and
restated prospectus of KML are available on SEDAR at http://www.sedar.com
or from the underwriters named in it. There will not be any sale
or any acceptance of any offer to buy the securities until a receipt for
the final prospectus has been issued.

The securities of KML have not been and will not be registered under the
United States Securities Act of 1933 (the Securities Act) or the
securities laws of any state or other jurisdiction of the United States.
Accordingly, these securities may not be offered or sold in the United
States absent registration under the Securities Act or an exemption from
registration, and in each case in compliance with the applicable
securities laws of any state or other jurisdiction of the United States.
In particular, this press release is not an offer of securities for sale
in the United States.

About Kinder Morgan, Inc. (KMI)

Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy
infrastructure companies in North America. It owns an interest in or
operates approximately 84,000 miles of pipelines and 155 terminals.
KMI’s pipelines transport natural gas, refined petroleum products, crude
oil, condensate, CO₂ and other products, and its terminals
transload and store petroleum products, ethanol and chemicals, and
handle such products as steel, coal and petroleum coke. It is also a
leading producer of CO₂ that we and others use for enhanced
oil recovery projects primarily in the Permian basin. For more
information please visit www.kindermorgan.com.

About Kinder Morgan Canada Limited (KML)

Kinder Morgan Canada Limited will operate the Business, comprised of a
number of pipeline systems and terminal facilities including the Trans
Mountain pipeline, the Cochin pipeline, the Puget Sound and Trans
Mountain Jet Fuel pipelines, the Westridge marine and Vancouver Wharves
terminals in British Columbia as well as various crude oil loading
facilities in Edmonton, Alberta.

The Trans Mountain pipeline currently transports approximately 300,000
barrels per day (bpd) of crude oil and refined petroleum products from
the oil sands in Alberta to Vancouver, British Columbia and Washington
state. On Nov. 29, 2016, the Government of Canada granted approval for
the $7.4 billion Trans Mountain Expansion Project, to increase the
nominal capacity of the system to 890,000 bpd. The expanded pipeline is
expected to be completed in 2019.

Important Information Relating to
Forward-Looking Statements

In the interests of providing potential investors with information
regarding KMI and KML, including management’s assessment of KMI’s and
KML’s future plans for the Business, certain statements contained in
this news release are forward-looking statements or information within
the meaning of applicable securities legislation, collectively referred
to herein as “forward-looking statements.” Forward-looking statements in
this news release include, but are not limited to: the expected future
activities of KML following closing of the Offering, KMI’s expected
ownership level in KML following closing of the Offering, expectations
that applicable regulatory approvals will be obtained, the success of
the Offering, and expected timing of closing of the Offering. Readers
are cautioned not to place undue reliance on forward-looking statements,
as there can be no assurance that the plans, intentions or expectations
upon which they are based will occur.

By their nature, forward-looking statements involve numerous
assumptions, known and unknown risks and uncertainties, both general and
specific, that contribute to the possibility that the predictions,
forecasts, projections and other forward-looking statements will not
occur, which may cause the Business’ actual performance and financial
results in future periods to differ materially from any estimates or
projections of future performance or results expressed or implied by
such forward-looking statements. There can be no assurance that KML will
ultimately complete the Offering, the size of the retained interest that
KMI would hold initially or in the future in KML, and other arrangements
that would exist between KMI and KML. Closing of the Offering is subject
to a number of risks and uncertainties, including without limitation,
those relating to due diligence, favourable market conditions, stock
exchange and regulatory approvals, and approval by KMI’s and KML’s
boards of directors. Although KMI believes that the expectations
represented by such forward-looking statements are reasonable, there can
be no assurance that such expectations will prove to be correct.
Potential investors are cautioned that the foregoing list of important
factors is not exhaustive. In addition, assumptions relating to such
forward-looking statements generally include KMI’s current expectations
and projections made in light of, and generally consistent with, its
historical experience and its perception of historical trends, all of
which are subject to the risk factors identified elsewhere in this news
release or in the preliminary prospectus, including assumptions related
to receipt of all required regulatory approvals and completion of the
Offering. Furthermore, the forward-looking statements contained in this
news release are made as of the date hereof and, except as required by
law, KMI and KML undertake no obligation to update publicly or revise
any forward-looking statements, whether as a result of new information,
future events or otherwise. The forward-looking statements contained in
this news release are expressly qualified by this cautionary statement.

Contacts

Kinder Morgan, Inc.
Media Relations
Dave
Conover, (713) 369-9407
[email protected]
or
Investor
Relations
(713) 369-9490
[email protected]
www.kindermorgan.com