By Kristin Jones
Kinder Morgan Energy Partners LP's (KMP) third-quarter profit
jumped 78% as the company saw strength across its business
segments, including its natural gas pipelines.
Meanwhile, Kinder Morgan Inc. (KMI), which owns Kinder Morgan
Energy's general partner, said its profit rose 32%, citing strong
contributions from Kinder Morgan Energy and El Paso Pipeline
Partners LP (EPB), following the company's recent acquisition of El
Paso Corp. Kinder Morgan Inc. also increased its quarterly dividend
to 36 cents a share, an increase of a penny from its previous
dividend.
El Paso Pipeline Partners' profit rose 22%, as the company cited
solid results from its regulated pipeline and storage assets, and
increased demand from gas-fired power plants.
Kinder Morgan Inc. in May completed its roughly $21 billion
acquisition of El Paso Corp., creating the largest natural gas
pipeline operator in North America
Kinder Morgan Energy, which transports natural gas and coal, has
been benefiting from a rush into U.S. alternative shale fields,
while Asian demand for steelmaking coal has supported performance
at its coal export terminals. However, a writedown on discontinued
operations pressured its earnings earlier in the year.
Kinder Morgan Energy reported a profit of $383 million, up from
$215 million a year earlier. On a per-unit basis, which is affected
by the general partner's interest, the company posted a loss of six
cents, compared with a year-earlier Kinder Morgan Energy Partners
loss of 25 cents. Excluding special items, per-unit earnings rose
to 57 cents from 44 cents.
Revenue rose 11% to $2.34 billion. Analysts polled by Thomson
Reuters were expecting per-unit earnings of 58 cents with revenue
of $2.25 billion.
The company saw particular strength from its natural gas
pipelines, driven by the Tennessee Gas Pipeline and El Paso Natural
Gas Pipeline.
Kinder Morgan Inc. reported a profit of $200 million, up from
$152 million a year earlier. On a per-share basis, earnings per
Class A share were 17 cents, down from 19 cents a year earlier,
reflecting fewer shares outstanding in the latest period. On
continuing operations, earnings were 19 cents a share, up from 18
cents a share.
Revenue jumped 35% to $2.87 billion.
Analysts projected per-share earnings of 26 cents a share on
revenue of $2.53 billion.
El Paso Pipeline Partners posted a profit of $151 million, up
from $124 million. On a per-unit basis, which takes into account
the general partner's interest, the company posted a profit of 55
cents, up from 46 cents.
Revenue edged up 0.5% to 368 million.
Wall Street expected a profit of 51 cents on revenue of $388
million.
El Paso also increased its quarterly cash distribution per unit
by 18% to 58 cents.
Kinder Morgan Energy Partners units closed Wednesday at $85.99,
and El Paso Pipeline units closed at $37.26. Both were largely
unchanged after hours.
Kinder Morgan Inc. shares were up fractionally in after-hours
trading to $35.80. The stock is up 11% so far this year.
Write to Kristin Jones at kristin.jones@dowjones.com
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