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Supplemental Information on Oil and Gas Producing Activities (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2011

Supplemental Information on Oil and Gas Producing Activities (Unaudited) [Abstract]

Results of Operations for Oil and Gas Producing Activities - Unit Prices and Costs

	Year Ended December 31,
	2011		2010		2009
Consolidated Companies(a)
Production costs per barrel of oil equivalent(b)(c)(d)	$	15.37	$	12.58	$	11.44
Crude oil production (MBbl/d)		34.2		35.5		37.4
SACROC crude oil production (MBbl/d)		23.8		24.3		25.1
Yates crude oil production (MBbl/d)		9.6		10.7		11.8

Natural gas liquids production (MBbl/d)(d)		3.5		5.8		5.4
Natural gas liquids production from gas plants(MBbl/d)(e)		5.0		4.2		4.0
Total natural gas liquids production(MBbl/d)		8.5		10.0		9.4
SACROC natural gas liquids production (MBbl/d)(d)		3.3		5.5		5.3
Yates natural gas liquids production (MBbl/d)(d)		0.2		0.2		0.1

Natural gas production (MMcf/d)(d)(f)		1.5		1.4		0.9
Natural gas production from gas plants(MMcf/d)(e)(f)		0.5		1.9		0.7
Total natural gas production(MMcf/d)(f)		2.0		3.3		1.6
Yates natural gas production (MMcf/d)(d)(f)		1.4		1.3		0.8

Average sales prices including hedge gains/losses:
Crude oil price per Bbl(g)	$	69.73	$	59.96	$	49.55
Natural gas liquids price per Bbl(g)	$	65.65	$	50.34	$	37.70
Natural gas price per Mcf(h)	$	3.86	$	4.08	$	3.45
Total natural gas liquids price per Bbl(e)	$	65.61	$	51.03	$	37.96
Total natural gas price per Mcf(e)	$	3.76	$	4.10	$	3.53
Average sales prices excluding hedge gains/losses:
Crude oil price per Bbl(g)	$	92.61	$	76.93	$	59.03
Natural gas liquids price per Bbl(g)	$	65.65	$	50.34	$	37.70
Natural gas price per Mcf(h)	$	3.86	$	4.08	$	3.45

____________

(a)	Amounts relate to Kinder Morgan CO2 Company, L.P. and its consolidated subsidaries.
(b)	Computed using production costs, excluding transportation costs, as defined by the SEC. Natural gas volumes were converted to barrels of oil equivalent using a conversion factor of six mcf of natural gas to one barrel of oil.
(c)	Production costs include labor, repairs and maintenance, materials, supplies, fuel and power, and general and administrative expenses directly related to oil and gas producing activities.
(d)	Includes only production attributable to leasehold ownership.
(e)	Includes production attributable to our ownership in processing plants and third party processing agreements.
(f)	Excludes natural gas production used as fuel.
(g)	Hedge gains/losses for crude oil and natural gas liquids are included with crude oil.
(h)	Natural gas sales were not hedged.

Capitalized Costs Related to Oil and Gas Producing Activities

	As of December 31,
	2011			2010			2009
Consolidated Companies(a)
Wells and equipment, facilities and other	$	3,103.6		$	2,676.8		$	2,428.6
Leasehold		352.3			352.3			352.6
Total proved oil and gas properties		3,455.9			3,029.1			2,781.2
Unproved property(b)		34.3			88.3			10.2
Accumulated depreciation and depletion		(2,288.0	)		(1,901.0	)		(1,501.1	)
Net capitalized costs	$	1,202.2		$	1,216.4		$	1,290.3

____________

(a)	Amounts relate to Kinder Morgan CO2 Company, L.P. and its consolidated subsidaries. Includes capitalized asset retirement costs and associated accumulated depreciation.
(b)	The unproved amounts consist of capitalized costs related to the Katz Unit, which is in the initial stages of the carbon dioxide flooding operation.

Costs Incurred in Exploration, Property Acquisitions and Development

	Year Ended December 31,
	2011			2010			2009
Consolidated Companies(a)
Property acquisitions - proved oil and gas properties		$	-		$	-		$	5.3
Development			372.8			326.0			330.3

____________

(a)

Amounts relate to Kinder Morgan CO2 Company, L.P. and its consolidated subsidaries. During 2011, we spent $89.0 million on development costs related to the Katz field unit, which was in the initial stages of the carbon dioxide flooding operation. As of December 31, 2011, capitalized costs related to unproved property for the Katz unit was $34.3 million. No exploration costs were incurred for the periods reported.

Results of Operations for Oil and Gas Producing Activities

	Year Ended December 31,
	2011		2010		2009
Consolidated Companies(a)
Revenues(b)	$	993.0	$	903.2	$	767.0
Expenses:
Production costs		245.8		229.5		188.8
Other operating expenses(c)		79.5		62.7		53.3
Depreciation, depletion and amortization expenses		394.1		406.3		441.4
Total expenses		719.4		698.5		683.5
Results of operations for oil and gas producing activities	$	273.6	$	204.7	$	83.5

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table of content

188

(a)	Amounts relate to Kinder Morgan CO2 Company, L.P. and its consolidated subsidaries.
(b)	Revenues include losses attributable to our hedging contracts of $285.2 million, $219.9 million and $129.5 million for each of the years ended December 31, 2011, 2010 and 2009, respectively.
(c)	Consists primarily of carbon dioxide expense.

Reserve Quantity Information

	Consolidated Companies(a)
	Crude Oil (MBbls)			NGLs (MBbls)			Natural Gas (MMcf)(b)
Proved developed and undeveloped reserves:
As of December 31, 2008		78,579			6,860			1,274
Revisions of previous estimates(c)		15,900			1,018			(293	)
Production		(13,688	)		(1,995	)		(298	)
Purchases of reserves in place		53			37			15
As of December 31, 2009		80,844			5,920			698
Revisions of previous estimates(d)		16,294			1,059			2,923
Production		(12,962	)		(2,116	)		(523	)
As of December 31, 2010		84,176			4,863			3,098
Revisions of previous estimates(e)		4,719			567			687
Improved recovery(f)		3,018			-			-
Production		(12,466	)		(1,285	)		(544	)
As of December 31, 2011		79,447			4,145			3,241

Proved developed reserves:
As of December 31, 2009	47,058	2,665	698
As of December 31, 2010	56,423	2,221	3,098
As of December 31, 2011	55,652	1,823	3,241

Proved undeveloped reserves:
As of December 31, 2009	33,786	3,255	-
As of December 31, 2010	27,753	2,642	-
As of December 31, 2011	23,795	2,322	-

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table of content

191

(a)	Amounts relate to Kinder Morgan CO2 Company, L.P. and its consolidated subsidaries.
(b)	Natural gas reserves are computed at 14.65 pounds per square inch absolute and 60 degrees fahrenheit.
(c)	Predominantly due to higher product prices resulting in an expanded economic carbon dioxide project area.
(d)	Predominantly due to higher product prices used to determine reserve volumes and the change in methodology discussed above.
(e)	Predominantly due to higher product prices used to determine reserve volumes.
(f)	Represents volumes added with the development of the Katz (Strawn) unit carbon dioxide flood.

Standardized Measure of Discounted Future Net Cash Flows From Proved Oil and Gas Reserves, Including Rollforward of Estimated Changes

Standardized Measure of Discounted Future Net Cash Flows From

Proved Oil and Gas Reserves

	As of December 31,
	2011			2010			2009
Consolidated Companies(a)
Future cash inflows from production	$	7,648.1		$	6,665.8		$	4,898.0
Future production costs		(2,806.5	)		(2,387.9	)		(1,951.5	)
Future development costs(b)		(1,443.0	)		(1,433.7	)		(1,179.7	)
Undiscounted future net cash flows		3,398.6			2,844.2			1,766.8
10% annual discount		(1,204.6	)		(946.6	)		(503.5	)
Standardized measure of discounted future net cash flows	$	2,194.0		$	1,897.6		$	1,263.3

____________

(a)	Amounts relate to Kinder Morgan CO2 Company, L.P. and its consolidated subsidaries.
(b)	Includes abandonment costs.

Changes in Standardized Measure of Discounted Future Net Cash Flows From Proved Oil and Gas Reserves

Changes in the Standardized Measure of Discounted Future Net Cash Flows From

Proved Oil and Gas Reserves

	As of December 31,
	2011			2010			2009
Consolidated Companies(a)
Present value as of January 1	$	1,897.6		$	1,263.3		$	658.4
Changes during the year:
Revenues less production and other costs(b)		(949.5	)		(828.2	)		(652.7	)
Net changes in prices, production and other costs(b)		696.9			890.0			915.7
Development costs incurred		416.4			248.0			330.3
Net changes in future development costs		(316.7	)		(296.6	)		(445.4	)
Improved recovery		10.2			-			-
Revisions of previous quantity estimates(c)		257.1			494.2			391.1
Accretion of discount		182.0			126.9			65.9
Net change for the year		296.4			634.3			604.9
Present value as of December 31	$	2,194.0		$	1,897.6		$	1,263.3

____________

(a)	Amounts relate to Kinder Morgan CO2 Company, L.P. and its consolidated subsidaries.
(b)	Excludes the effect of losses attributable to our hedging contracts of $285.2 million, $219.9 million and $129.5 million for each of the years ended December 31, 2011, 2010 and 2009, respectively.
(c)	2011 revisions were primarily due to higher product prices used to determine reserve volumes and the addition of the Katz (Strawn) carbon dioxide flood. 2010 revisions were primarily due to higher product prices used to determine reserve volumes and the change in methodology discussed above. 2009 revisions were primarily due to higher product prices resulting in an expanded economic carbon dioxide project area.

- Definition

This element can be used to disclose all information about the future net cash flows relating to proved oil and gas reserves and oil and gas subject to purchase under long-term agreements in which the enterprise participates in the operation of the properties on which the oil and gas is located or otherwise serves as the producer. This information is presented in aggregate and for each geographic area for which reserve quantities are disclosed. The discounted future net cash flow is computed by applying year-end prices of oil and gas (with consideration of price changes only to the extent provided by contractual arrangements) to the estimated future production of oil and gas reserves, less estimated future expenditures (based on year-end costs) to be incurred in developing and producing the proved reserves, less estimated future income tax expenses (based on year-end statutory rates, with consideration of future tax rates already legislated) to be on pretax net cash flows less tax basis of properties and available credits, and assuming continuation of existing economic conditions. The estimated future net cash flows are then discounted using a rate of 10 percent per year to reflect the estimated timing of the future cash flows.

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