KINDER MORGAN INC

Our business strategy is to:

•focus on stable, fee-based energy transportation and storage assets that are central to the energy infrastructure of growing markets within North America or served by U.S. exports;

•increase utilization of our existing assets while controlling costs, operating safely, and employing environmentally sound operating practices;

•exercise discipline in capital allocation decisions, including evaluating expansion projects and acquisition opportunities;

•leverage economies of scale through growth from asset expansions and acquisitions that fit within our strategy; and

•maintain a strong financial profile and enhance and return value to our stockholders.

It is our intention to carry out the above business strategy, modified as necessary to reflect changing economic conditions and other circumstances. However, as discussed under Item 1A. “Risk Factors” below and at the beginning of this report in “Information Regarding Forward-Looking Statements,” there are factors that could affect our ability to carry out our strategy or affect its level of success even if carried out.

We regularly consider and enter into discussions regarding potential acquisitions and divestitures, and we are currently contemplating potential transactions. Any such transaction would be subject to negotiation of mutually agreeable terms and conditions, and, as applicable, receipt of fairness opinions, approval of our Board and regulatory approval. While there are currently no unannounced purchase or sale agreements for the acquisition or sale of any material business or assets, such transactions can be effected quickly, may occur at any time and may be significant in size relative to our existing assets or operations.