v2.4.0.8
Fair Value (Tables)
 3 Months Ended
Mar. 31, 2014
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following tables present our derivative contracts subject to such netting agreements as of March 31, 2014 and December 31, 2013 (in millions):
 
Balance Sheet asset
fair value measurements using
 
Amounts not offset in the Balance Sheet
 
Net Amount
 
Level 1
 
Level 2
 
Level 3
 
Gross Amount
 
Financial Instruments
 
Cash Collateral Held(b)
As of March 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy commodity derivative contracts(a)
$
6

 
$
29

 
$
16

 
$
51

 
$
(40
)
 
$
—

 
$
11

Interest rate swap agreements
$
—

 
$
292

 
$
—

 
$
292

 
$
(44
)
 
$
—

 
$
248

As of December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy commodity derivative contracts(a)
$
4

 
$
46

 
$
48

 
$
98

 
$
(62
)
 
$
—

 
$
36

Interest rate swap agreements
$
—

 
$
259

 
$
—

 
$
259

 
$
(28
)
 
$
—

 
$
231


 
Balance Sheet liability
fair value measurements using
 
Amounts not offset in the Balance Sheet
 
Net Amount
 
Level 1
 
Level 2
 
Level 3
 
Gross Amount
 
Financial Instruments
 
Cash Collateral Held(c)
As of March 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy commodity derivative contracts(a)
$
(14
)
 
$
(50
)
 
$
(116
)
 
$
(180
)
 
$
40

 
$
22

 
$
(118
)
Interest rate swap agreements
$
—

 
$
(94
)
 
$
—

 
$
(94
)
 
$
44

 
$
—

 
$
(50
)
As of December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy commodity derivative contracts(a)
$
(6
)
 
$
(31
)
 
$
(158
)
 
$
(195
)
 
$
62

 
$
17

 
$
(116
)
Interest rate swap agreements
$
—

 
$
(116
)
 
$
—

 
$
(116
)
 
$
28

 
$
—

 
$
(88
)
_______
(a)
Level 1 consists primarily of New York Mercantile Exchange natural gas futures.  Level 2 consists primarily of OTC WTI swaps.  Level 3 consists primarily of WTI options, WTI basis swaps, NGL options, NGL swaps and power derivative contracts.
(b)
Cash margin deposits held by KMP associated with its energy commodity contract positions and OTC swap agreements and reported within “Other current liabilities” in our accompanying consolidated balance sheets.
(c)
Cash margin deposits posted by KMP associated with energy commodity contract positions and OTC swap agreements and reported within “Other current assets” in our accompanying consolidated balance sheets.
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The table below provides a summary of changes in the fair value of our Level 3 energy commodity derivative contracts for each of the three months ended March 31, 2014 and 2013 (in millions):
Significant unobservable inputs (Level 3)
 
Three Months Ended March 31,
 
2014
 
2013
Derivatives-net asset (liability)
 
 
 
Beginning of Period
$
(110
)
 
$
(155
)
Total gains or (losses)
 
 
 
Included in earnings
7

 
5

Included in other comprehensive loss
(1
)
 
(1
)
Settlements
4

 
9

End of Period
$
(100
)

$
(142
)
The amount of total gains or (losses) for the period included in earnings attributable to the change in unrealized gains or (losses) relating to assets held at the reporting date
$
3

 
$
(1
)
Schedule of Debt [Table Text Block]
The following table provides detail on the principal amount of our outstanding debt balances as of March 31, 2014 and December 31, 2013. The table amounts exclude all debt fair value adjustments, including debt discounts and premiums (in millions).
 
 
March 31, 2014
 
December 31, 2013
KMI
 
 
 
 
Senior term loan facility, variable rate, due May 24, 2015
 
$
1,528

 
$
1,528

Senior notes and debentures, 5.00% through 7.45%, due 2015 through 2098
 
1,815

 
1,815

Credit facility due December 31, 2014(a)
 
410

 
175

Subsidiary borrowings (as obligor)
 
 
 
 
Kinder Morgan Finance Company, LLC, senior notes, 5.70% through 6.40%, due 2016 through 2036
 
1,636

 
1,636

El Paso, senior notes, 6.50% through 8.25%, due 2014 through 2037
 
3,830

 
3,830

EPC Building, LLC, promissory note, 3.967%, due 2014 through 2035
 
459

 
461

EP preferred securities, 4.75%, due March 31, 2028
 
280

 
280

Other miscellaneous subsidiary debt
 
138

 
221

Total debt — KMI
 
10,096

 
9,946

Less: Current portion of debt — KMI
 
(1,128
)
 
(725
)
Total long-term debt outstanding — KMI
 
8,968

 
9,221

KMGP, $1,000 Liquidation Value Series A Fixed-to-Floating Rate Term Cumulative Preferred Stock
 
100

 
100

Total long-term debt — KMI(b)
 
$
9,068

 
$
9,321

 
 
 
 
 
KMP and EPB
 
 
 
 
KMP
 
 
 
 
Senior notes, 2.65% through 9.00%, due 2014 through 2044
 
$
17,100

 
$
15,600

Commercial paper borrowings(c)
 
419

 
979

Credit facility due May 1, 2018
 
—

 
—

KMP subsidiary borrowings (as obligor)
 
 
 
 
TGP senior notes, 7.00% through 8.375%, due 2016 through 2037
 
1,790

 
1,790

EPNG senior notes, 5.95% through 8.625%, due 2017 through 2032
 
1,115

 
1,115

Copano senior notes, 7.125%, due April 1, 2021
 
332

 
332

Other miscellaneous subsidiary debt
 
97

 
98

Total debt — KMP
 
20,853

 
19,914

Less: Current portion of debt — KMP(d)
 
(1,243
)
 
(1,504
)
Total long-term debt — KMP(b)
 
19,610

 
18,410

EPB
 
 
 
 
EPPOC
 
 
 
 
Senior notes, 4.10% through 7.50%, due 2015 through 2042
 
2,260

 
2,260

Credit facility due May 27, 2016(e)
 
—

 
—

EPB subsidiary borrowings (as obligor)
 
 
 
 
Colorado Interstate Gas Company, L.L.C. (CIG), senior notes, 5.95% through 6.85%, due 2015 through 2037
 
475

 
475

SLNG senior notes, 9.50% through 9.75%, due 2014 through 2016
 
64

 
135

SNG notes, 4.40% through 8.00%, due 2017 through 2032
 
1,211

 
1,211

Other financing obligations
 
183

 
175

Total debt — EPB
 
4,193

 
4,256

Less: Current portion of debt — EPB
 
(41
)
 
(77
)
Total long-term debt — EPB(b)
 
4,152

 
4,179

Total long-term debt outstanding — KMP and EPB
 
$
23,762

 
$
22,589

_______
(a)
As of March 31, 2014 and December 31, 2013, the weighted average interest rates on KMI’s credit facility borrowings were 2.66% and 2.67%, respectively.

(b)
Excludes debt fair value adjustments. As of March 31, 2014 and December 31, 2013, our “Debt fair value adjustments” increased our combined debt balances by $1,969 million and $1,977 million, respectively. In addition to all unamortized debt discount/premium amounts and purchase accounting on our debt balances, our debt fair value adjustments also include (i) amounts associated with the offsetting entry for hedged debt; and (ii) any unamortized portion of proceeds received from the early termination of interest rate swap agreements. For further information about our debt fair value adjustments, see Note 5 “Risk Management—Debt Fair Value Adjustments.”
(c)
As of March 31, 2014 and December 31, 2013, the average interest rates on KMP’s outstanding commercial paper borrowings were 0.26% and 0.28%, respectively. The borrowings under KMP’s commercial paper program were used principally to finance the acquisitions and capital expansions made during the first three months of 2014, and in the near term, KMP expects that its short-term liquidity and financing needs will be met primarily through borrowings made under its commercial paper program.
(d)
Amounts include outstanding commercial paper borrowings discussed above in footnote (c).
(e)
LIBOR plus 1.75%.

The estimated fair value of our outstanding debt balances (both short-term and long-term and including debt fair value adjustments), is disclosed below (in millions):
 
March 31, 2014
 
December 31, 2013
 
Carrying
Value
 
Estimated
Fair Value
 
Carrying
Value
 
Estimated
Fair Value
Total debt
$
37,211

 
$
37,917

 
$
36,193

 
$
36,248