By Kristin Jones
Kinder Morgan Inc.'s (KMI) fourth-quarter earnings more than
doubled as the energy company reported strong performances from its
affiliates Kinder Morgan Energy Partners L.P.(KMP) and El Paso
Pipeline Partners L.P. (EPB), driven by strong demand for the
transport of natural gas.
Kinder Morgan Energy Partners said its profit rose 29%,
benefiting from the continued strength of its natural gas
pipelines. El Paso Pipeline Partners posted income growth of 28%,
as its operating margin improved.
Kinder Morgan Inc. raised its quarterly dividend 19% to 37 cents
a share from 31 cents. Kinder Morgan Energy increased its quarterly
distribution 11% to $1.29. El Paso Pipeline Partners raised its
quarterly distribution 22% to 61 cents.
The companies also disclosed a slew of leadership changes,
saying Park Shaper will retire as president of Kinder Morgan Inc.,
but will remain on the board. He will be replaced by Steve Kean,
who will take the role in addition to his job as chief operating
officer at the company.
David Michels, currently vice president of finance at Kinder
Morgan Inc., will take on the additional role of chief financial
officer for El Paso Pipeline Partners, reporting to Kim Dang, who
is Kinder Morgan Inc.'s CFO.
Kinder Morgan Inc. last year 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
benefited from strong production at U.S. alternative shale fields,
while Asian demand for steelmaking coal has supported performance
at its coal export terminals.
In the latest period, Kinder Morgan Inc. reported a profit of
$349 million, up from $155 million a year ago. Earnings per Class A
share rose to 32 cents, from 20 cents a year earlier.
Revenue rose 59% to $3.08 billion.
Analysts polled by Thomson Reuters were expecting per-share
earnings of 34 cents on revenue of $3.02 billion.
Kinder Morgan Energy posted a profit of $614 million, up from
$475 million a year earlier. On a per-unit basis, which is affected
by the general partner's interest, the company posted a profit of
64 cents, up from 51 cents. Excluding special items, per-unit
earnings rose to 75 cents from 55 cents.
Revenue grew 31% to $2.51 billion. Analysts were projecting
per-unit earnings of 68 cents on revenue of $2.44 billion.
At the natural gas pipeline business, adjusted earnings rose 64%
as transport volume rose 6%. Growth was driven by the Tennessee Gas
Pipeline and El Paso Natural Gas Pipeline.
The terminals business saw adjusted earnings rise 7% from the
previous year, driven by higher demand for export coal.
El Paso Pipeline Partners reported a profit of $178 million, up
from $139 million. On a per-unit basis, taking into account the
general partner's interest, the company's profit rose to 61 cents
from 50 cents.
Revenue edged up 0.5% to $390 million.
Wall Street expected a profit of 55 cents on revenue of $406
million.
El Paso Pipeline's operating margin widened to 63.6%, from
54.4%, benefiting from lower operations and maintenance costs.
Kinder Morgan Inc. shares were up 15 cents in after-hours
trading to $36.75. Kinder Morgan Energy Partners units rose 80
cents after hours to $88.75, and El Paso Pipeline units were up 31
cents to $39.90.
Write to Kristin Jones at kristin.jones@dowjones.com
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