SO Southern Co

Kinder Morgan Inc. said its second-quarter revenue fell 9.2%, missing analysts's expectations, as continued weakness in its carbon-dioxide segment offset growth in the energy giant's other businesses.

The Houston company's shares, down 39% in the past 12 months, fell 3.1% to $21.40 in recent after-hours trading.

Revenue decreased to $3.14 billion from $3.46 billion a year earlier. Analysts polled by Thomson Reuters expected revenue of $3.45 billion.

The revenue decline was driven by a 15% decline at its carbon-dioxide segment, which has been under pressure in recent quarters because it has more exposure to low commodities prices than Kinder's other businesses.

Executive Chairman Richard Kinder said in prepared remarks Wednesday that the company took substantial steps toward improving its balance sheet in the latest quarter, touting the company's recent $1.47 billion joint venture deal with Southern Co. on the Southern Natural Gas pipeline system. Mr. Kinder also noted that investment firm Riverstone Investment Group LLC recently agreed to become a partner on its Utopia Pipeline Project.

Chief Executive Steve Kean said Kinder's current project backlog is $13.5 billion, down from $14.1 billion at the end of the first quarter, citing lower capital expenses stemming from the partnership with Riverstone on the Utopia project.

The company also further reduced its 2016 capital-spending forecast by $500 million to a total of $2.8 billion. Kinder also cut its capital budget in January and April, amid a prolonged downturn in oil prices that choked off access to capital to fund expansion projects.

Over all, Kinder Morgan reported a profit of $372 million, up from $333 million, a year earlier. On a per-share basis, which includes preferred dividend impacts, earnings were flat at 15 cents, matching analysts expectations.

The company also affirmed its 2016 dividend guidance. Kinder had slashed its dividend by 75% in December so it can use its cash flow for growth efforts.

Write to Tess Stynes at tess.stynes@wsj.com

(END) Dow Jones Newswires

July 20, 2016 18:35 ET (22:35 GMT)

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