By Everdeen Mason 
 

Kinder Morgan Inc. (KMI) said it expects a strong financial performance for 2014 after its Kinder Morgan Energy Partners (KMP) unit completed a major tanker acquisition this year.

Kinder Morgan Energy completed its acquisition of American Petroleum Tankers and closely related State Class Tankers from private-equity firms Blackstone Group LP and Cerberus Capital Management LP for $962 million. Through the acquisition, the pipeline-and-storage company has gained a number of crude oil tankers that are engaged in marine transportation for U.S. domestic trade.

As a result, Kinder Morgan Energy expects a cash distribution of $5.58 a unit, up 5% from its 2013 distribution of $5.33 a unit.

The energy affiliate 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.

The company also cited Tennessee Gas Pipelines's increased number of north-to-south firm transportation contracts and additional long-term contracts on its El Paso Natural Pipeline system.

The El Paso Pipeline Partners LP (EPB) affiliate is expected to declare cash distributions of $2.60 a unit in 2014, 2% higher than its 2013 distribution.

Chief Executive Richard D. Kinder said Friday that the company has also identified $14.8 billion in expansion and joint-venture investments that should add to the company's earnings.

Kinder Morgan reported its earnings rose significantly in the fourth quarter after its Kinder Morgan Energy unit offset weaker earnings at El Paso Pipeline.

Kinder Morgan shares rose five cents to $31.01 in premarket trading. As of Thursday's close, the stock is down 16% in the past 12 months.

Write to Everdeen Mason at everdeen.mason@wsj.com

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