Monday, July 25, 2011

Kinder Morgan profit up in 2Q, but Kinder Morgan Partners net plummets

Second-quarter profit at Kinder Morgan Inc. (NYSE: KMI) soared on higher revenue and increased earnings from equity investments. For the latest quarter, Kinder Morgan Inc. reported earnings of $132.1 million, or 17 cents per Class A share, compared with $46 million a year earlier. Revenue climbed 2.1 percent to $2.03 billion. Analysts polled by Thomson Reuters expected a profit of 25 cents on revenue of $2.07 billion. Earnings from equity investments were $75.3 million, up 24 percent from the prior year. The company owns the general partner of Kinder Morgan Energy Partners as well as a stake in the pipeline operator.

Second-quarter profit at Kinder Morgan Energy Partners LP (NYSE: KMP) fell 36 percent as expenses jumped. KMP’s profit fell to $230.5 million from $361.2 million. On a per-unit basis, which is affected by the general partner's interest, the latest quarter was a loss of 19 cents per unit, compared with an 88-cent profit a year earlier. Revenue improved 2.9 percent to $2.02 billion. Wall Street projected a 40-cent profit on $2.12 billion in revenue. Expenses increased 14 percent.

Kinder Morgan, Inc. (NYSE: KMI) has announced an increase in its dividend for the second quarter to $0.30 per share ($1.20 annualized) from $.29 per share ($1.16 annualized), payable on Aug. 15 to shareholders of record on Aug. 1. KMI on July 19 reported second quarter cash available to pay dividends of $154 million. Through the first two quarters of the year, the company reported cash available to pay dividends of $405 million. Chairman and CEO Richard D. Kinder said, "KMI had a good second quarter and is on target to exceed its previously disclosed annual budget of $820 million in cash available to pay dividends." Approximately 98 percent of the distributions KMI receives are attributable to KMP. KMI also owns a 20 percent interest in Natural Gas Pipeline Company of America.

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