Exhibit 11.1 KINDER MORGAN ENERGY PARTNERS, L.P. AND SUBSIDIARIES EXHIBIT 11 - STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS (Dollars In Thousands Except Per Unit Amounts) FOR THE YEAR ENDED DECEMBER 31, 2003 2002 2001 ================================================================================ Weighted-average number of limited partners' units on which limited partners' net income per unit is based: Basic 185,383,944 172,016,574 153,901,311 Add: Incremental units under common unit option plan 109,774 169,065 208,764 ------------------------------------------ Assuming dilution 185,493,718 172,185,639 154,110,075 ========================================== Income Before Cumulative Effect of a Change in Accounting Principle $ 693,872 $ 608,377 $ 442,343 Add: Cumulative effect adjustment from change in Accounting for asset retirement obligations 3,465 - - ------------------------------------------ Net Income $ 697,337 $ 608,377 $ 442,343 ========================================== Calculation of Limited Partners' interest in Net Income: Income Before Cumulative Effect of a Change in Accounting Principle $ 693,872 $ 608,377 $ 442,343 Less: General Partner's interest (326,489) (270,816) (202,095) ------------------------------------------ Limited Partner's interest 367,383 337,561 240,248 Add: Limited Partner's interest in Change in Accounting Principle 3,430 - - ------------------------------------------ Limited Partners' interest in Net Income $ 370,813 $ 337,561 $ 240,248 ========================================== Earnings per limited partner unit: Limited Partners' Income Before Cumulative Effect of a Change in Accounting Principle per unit: Basic $ 1.98 $ 1.96 $ 1.56 Diluted $ 1.98 $ 1.96 $ 1.56 Limited Partners' Cumulative Effect of a Change in Accounting Principle per unit: Basic $ .02 - - Diluted $ .02 - - Limited Partners' Net Income per unit: Basic $ 2.00 $ 1.96 $ 1.56 Diluted $ 2.00 $ 1.96 $ 1.56