By Tess Stynes
Kinder Morgan Inc.'s (KMI) fourth-quarter profit rose 54% driven
by continued growth at its Kinder Morgan Energy Partners LP (KMP)
affiliate that offset weaker earnings at El Paso Pipeline Partners
LP (EPB).
Kinder Morgan Energy Partners reported its profit climbed 26% as
strong growth continued at its natural-gas pipeline business. El
Paso Pipeline Partners' earnings declined 11% on higher 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 Energy last month said it would acquire American
Petroleum Tankers and closely related State Class Tankers from
private-equity firms Blackstone Group LP and Cerberus Capital
Management LP for $962 million, as the pipeline and storage company
expands its network into tankers.
Kinder Morgan Inc. reported a profit of $338 million, or 33
cents a share, up from $220 million, or 21 cents a share, a year
earlier. Revenue climbed 26% to $3.87 billion.
Analysts polled by Thomson Reuters most recently projected
earnings of 35 cents on revenue of $3.81 billion.
Kinder Morgan Energy reported a profit of $809 million, up from
$640 million a year earlier. On a per-unit basis, which reflects
general partner interests, adjusted earnings rose to 83 cents from
64 cents. Excluding impacts related to Superstorm Sandy and other
items, adjusted earnings increased to 77 cents from 75 cents.
Revenue jumped 30% to $3.47 billion.
Analysts polled by Thomson Reuters most recently projected
earnings of 73 cents on revenue of $3.34 billion.
The natural-gas pipeline business reported adjusted segment
earnings jumped 40% to $665 million, driven by asset dropdowns
related to the El Paso acquisition and contributions from its
Copano Energy acquisition in May.
El Paso Pipeline Partners reported a profit of $159 million,
down from $178 million. On a per-unit basis, which reflects the
general partner interests, earnings fell to 48 cents from 62 cents.
Excluding items, such as year-earlier merger-related impacts,
per-unit earnings dropped to 48 cents from 62 cents. Revenue edged
up 0.3% to $391 million.
Analysts polled by Thomson Reuters most recently projected
earnings of 51 cents on revenue of $388 million.
Operations and maintenance expenses rose 13%.
Kinder Morgan Inc.'s shares fell 1.7% to $34.90 in recent
after-hours trading. Kinder Morgan Energy's units increased 72
cents to $81.25 and El Paso Pipeline Partners' units rose 15 cents
to $34.20.
Write to Tess Stynes at tess.stynes@wsj.com
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