Kinder Morgan Scores Again

Oil pipelineBoth Kinder Morgan Energy Partners L.P. (NYSE: KMP) and Kinder Morgan Inc. (NYSE: KMI) reported first quarter results after markets closed today. KMP will pay a distribution of $1.30 per common unit, nearly double the consensus estimate of $0.68 and higher than last year's distribution of $1.29 per common unit. Revenues totaled $2.66 billion compared with revenues in the same period a year ago of $1.85 billion. The consensus estimate called for revenues of $2.46 billion.

KMI will pay a first-quarter cash dividend of $0.38 per share, up from $0.32 in the same period a year ago and significantly more than the consensus estimate of $0.31 per share. Revenues totaled $3.06 billion, up from $1.86 billion in the same period a year ago and higher than the consensus estimate of $2.92 billion. Revenue was slightly lower sequentially, however.

Chairman and CEO Richard Kinder had this to say about KMI:

KMI's growth will continue to be driven by its ownership of the general partners of KMP and EPB, which generate stable and increasing cash flow from their diversified assets. … 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.

He also commented on KMP's performance. It is virtually identical to his comment on KMP's results in the fourth quarter:

We see exceptional growth opportunities across all of our business segments, as there is a need to build additional midstream infrastructure to move or store oil, gas and liquids from the prolific shale plays in the United States and the oilsands in Alberta, along with increasing demand for export coal and CO2. We currently have identified more than $11 billion in expansion and joint venture investments at KMP and we are pursuing customer commitments for many more projects.

What's missing is Kinder's reference to expansion and investment that the company plans to wrap up soon. KMP expects to complete its acquisition of Copano Energy LLC (NASDAQ: CPNO) early next month. The $5 billion acquisition was announced in late January.

KMI still expects to declare 2013 cash dividends of $1.57 per share. KMP expects to distribute $5.28 per common unit in 2013.

Shares of KMI are up about 0.1% in after hours trading at $37.80 in a 52-week range of $30.51 to $39.39.

Shares of KMP are down about 1.4% in after-hours trading, at $89.26 in a 52-week range of $74.15 to $90.60.


Filed under: 24/7 Wall St. Wire, Earnings, Oil & Gas Tagged: CPNO, featured, KMI, KMP

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