Kinder Morgan Inc.'s (KMI) first-quarter earnings surged as the
year-earlier period included losses from at some former operations
and as revenue climbed, driven by growth at its Kinder Morgan
Energy Partners LP (KMP) affiliates as well as a solid quarter at
its El Paso Pipeline Partners LP (EPB).
Kinder Morgan Energy Partners reported its profit nearly
quadrupled, driven by strong growth at its natural-gas pipelines
business, while El Paso Pipeline Partners' earnings were up 17% on
lower costs.
Kinder Morgan Inc. last May acquired El Paso Corp. in a roughly
$21 billion deal that created 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.
Kinder Morgan Inc. Chief Executive Richard D. Kinder said "We
currently have identified more than $12 billion in expansion and
joint venture investments across the Kinder Morgan companies, and
we are pursuing customer commitments for many more projects."
Kinder Morgan Inc. reported a profit of $292 million, or 28
cents a share, up from $21 million, or three cents a share, a year
earlier. The year-earlier period included losses from discontinued
operations of 20 cents. Revenue climbed 65% to $3.06 billion.
Analysts polled by Thomson Reuters most recently projected
earnings of 31 cents on revenue of $2.92 billion.
Kinder Morgan Energy reported a profit of $783 million, up from
$206 million a year earlier. On a per-unit basis, which reflects
general partner interests, adjusted earnings were 97 cents,
compared with a year-earlier adjusted loss of 33 cents. Excluding
fair value impacts related to divestitures and other items,
adjusted earnings were up at 66 cents from 61 cents. Revenue jumped
44% to $2.66 billion.
Analysts polled by Thomson Reuters most recently projected
earnings of 65 cents on revenue of $2.46 billion.
Kinder Morgan Inc.'s shares closed Wednesday at $37.80, while
Kinder Morgan Energy's units closed at $89.26. Neither stock was
active in recent after-hours trading.
Write to Tess Stynes at tess.stynes@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires