Kinder Morgan Statement on Federal Energy Regulatory Commission Notice of Proposed Rulemaking on the Tax Cuts and Jobs Act

HOUSTON–(BUSINESS WIRE)–$KMI #KinderMorgan–Kinder Morgan, Inc. (NYSE: KMI) today released the following statement
following the announcement by the Federal Energy Regulatory Commission
(FERC):

Kinder Morgan is aware of the FERC announcement today of a notice of
proposed rule-making (NOPR) on the impact of the Tax Cuts and Jobs Act
on FERC-regulated rates for natural gas and oil pipelines. As a proposed
rule, it is neither final nor immediate and will be subject to a public
comment process. We intend to provide comments during that process, both
as an individual company and through our trade associations.

Based on the information provided today, KMI is pleased by FERC’s
inclusion of an option for companies to file a statement with the FERC
explaining why an adjustment to rates to reflect the Tax Act impact is
not necessary. The competitive environment in which interstate natural
gas transmission companies operate is vastly different from the historic
“franchised utility service territory” that is still prevalent for
traditional utilities. As a result, many of our rates are set pursuant
to negotiated rate arrangements that we believe should not be subject to
adjustment due to changes in tax law. Also, many of our current
transactions are provided at discounted rates that are below maximum
tariff rates, many of which would not be impacted by a change in the
maximum tariff rate. Further, on many of our pipelines we are operating
under rate settlements that limit changes to their terms during the life
of the settlement.

We believe any action by FERC should not affect negotiated rate
contracts and will not significantly impact assets that are current cash
taxpayers. For those reasons, the ultimate timing and impact of any
future rate adjustments, should they occur, are not expected to be
material to KMI’s distributable cash flow.

Finally, with respect to FERC’s separate action eliminating the master
limited partnership tax allowance, we note that KMI has been organized
as a C-corporation since 2014.

Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy
infrastructure companies in North America. It owns an interest in or
operates approximately 85,000 miles of pipelines and 152 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 products such 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.

Important Information Relating to
Forward-Looking Statements

This news release includes forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995 and
Section 21E of the Securities and Exchange Act of 1934. Generally the
words “expects,” “believes,” anticipates,” “plans,” “will,” “shall,”
“estimates,” and similar expressions identify forward-looking
statements, which are generally not historical in nature. Forward-looking
statements are subject to risks and uncertainties and are based on the
beliefs and assumptions of management, based on information currently
available to them. Although KMI believes that these
forward-looking statements are based on reasonable assumptions, it can
give no assurance that any such forward-looking statements will
materialize. Important factors that could cause actual results to
differ materially from those expressed in or implied from these
forward-looking statements include the risks and uncertainties described
in KMI’s reports filed with the Securities and Exchange Commission
(SEC), including its Annual Report on Form 10-K for the year-ended
December 31, 2017 (under the headings “Risk Factors” and “Information
Regarding Forward-Looking Statements” and elsewhere) and its subsequent
reports, which are available through the SEC’s EDGAR system at www.sec.gov
and on our website at ir.kindermorgan.com. Forward-looking
statements speak only as of the date they were made, and except to the
extent required by law, KMI undertakes no obligation to update any
forward-looking statement because of new information, future events or
other factors. Because of these risks and uncertainties, readers
should not place undue reliance on these forward-looking statements.

Contacts

Kinder Morgan, Inc.
Dave Conover, (713) 369-9407
Media
Relations
[email protected]
or
Investor
Relations
(800) 348-7320
[email protected]
www.kindermorgan.com