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Kinder Morgan Energy Partners Message Board

  • captaintortoise captaintortoise Oct 19, 2011 6:19 PM Flag

    Kinder Morgan Energy Partners Increases Quarterly Distribution to $1.16 Per Unit

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    Kinder Morgan Energy Partners Increases Quarterly Distribution to $1.16 Per Unit
    Distribution 5% Higher Than Third Quarter 2010

    HOUSTON, Oct 19, 2011 (BUSINESS WIRE) --

    Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today increased its quarterly cash distribution per common unit to $1.16 ($4.64 annualized) payable on Nov. 14, 2011, to unitholders of record as of Oct. 31, 2011. The distribution represents a 5 percent increase over the third quarter 2010 cash distribution per unit of $1.11 ($4.44 annualized). KMP has increased the distribution seven consecutive quarters and 42 times since current management took over in February of 1997.

    Chairman and CEO Richard D. Kinder said, "KMP had a very strong third quarter, with all five of our business segments producing higher segment earnings before DD&A than during the same period last year. Total segment earnings before DD&A for the quarter were up 18 percent to $941.1 million versus the comparable period last year. We now expect to exceed our previously announced 2011 budget at KMP for cash distributions of $4.60 per unit. There are exceptional growth opportunities in the midstream energy sector, particularly in the natural gas shale plays and in the coal export business. With our large footprint of assets in North America KMP is well positioned for future growth."

    KMP reported third quarter distributable cash flow before certain items of $394.1 million, up 24 percent from $317.9 million for the comparable period in 2010. Distributable cash flow per unit before certain items was $1.19 compared to $1.02 for the third quarter last year. Third quarter net income before certain items was $451.0 million compared to $343.1 million for the same period in 2010. Including certain items, net income was $216.3 million compared to $322.4 million for the third quarter of 2010. Certain items totaled a net loss of $234.7 million versus a net loss of $20.7 million for the same period last year. The primary certain items include:

    A previously announced $167.2 million non-cash write down of the carrying value of KMP's initial 50 percent purchase of KinderHawk based on the July purchase of the remaining 50 percent at a lower price.

    Legal reserve adjustments totaling a net loss of $69.3 million primarily related to an adverse tentative statement of decision by a California Superior Court on annual rights-of-way lease payments for certain of the company's West Coast operations. The company will pursue modification of this decision and appellate review as necessary.