Capitalization

12 Months Ended

Dec. 31, 2012

Capitalization [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

Capitalization

Our authorized capital structure consists of two classes of interests: (1) our listed shares and (2) our voting shares, collectively referred to in this document as our “shares.” Prior to the May 2001 initial public offering of our shares, our issued capitalization consisted of $100,000 contributed by Kinder Morgan, G.P., Inc. for two voting shares. At December 31, 2012, KMI owned approximately 15 million, or approximately 13.0% of our outstanding shares.

In the third quarter of 2012, we issued 10,120,000 of our shares in a public offering at a price of approximately $73.50 per share, less commissions and underwriting expenses.  We used the net proceeds received of $727 million from the issuance of these 10,120,000 shares to buy additional i-units from KMP.  KMP used the proceeds to pay a portion of the purchase price for the drop-down transaction.   None of the shares from our offering were purchased by KMI.

As discussed above in Note 1, KMI completed a drop-down transaction with KMP during the third quarter of 2012. This transaction is treated as an intercompany transfer of assets between KMI (an affiliate and shareholder of the Company) and KMP. Our and KMI’s accounting policy is to apply the look-through method of recording deferred taxes on the outside book tax basis difference in its investments without regard to nondeductible goodwill. The adjustment to our deferred tax liability as a result of the intercompany transaction, including the transfer of nondeductible goodwill to KMP, is reflected as an offset to our shareholders’ equity.  Therefore, we have recorded a decrease to our deferred tax liability and offsetting increase to our shareholders’ equity in the amount of $235 million.

Share Distributions

	Year Ended December 31,
	2012		2011		2010
Equivalent Distribution Value Per Share(a)	$	4.85	$	4.58	$	4.32
Total Number of Additional Shares Distributed(b)	6,488,946		6,601,402		6,369,724

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(a) This is the cash distribution paid to each common unit of KMP during the period indicated and is used to calculate our distribution of shares. Because of this calculation, the market value of the shares distributed on the date of distribution may be less or more than the cash distribution per common unit of KMP.

(b) Our distributions are paid in the form of additional shares or fractions thereof based on the average market price of a share determined for a ten-day trading day period ending on the trading day immediately prior to the ex-dividend date for our shares.

On February 14, 2013, we paid a distribution of 0.015676 shares per outstanding share (1,804,595 total shares) to shareholders of record as of January 31, 2013, based on the $1.29 per common unit distribution declared by KMP.