Kinder Morgan Energy Partners L.P Earnings: Booking a Profit Again

The Cheat Sheet

Kinder Morgan Energy Partners L.P reported its results for the fourth quarter. Kinder Morgan Energy Partners is a pipeline transportation and energy storage company in North America, which owns and manages a portfolio of energy transportation and storage assets.

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Kinder Morgan Energy Partners L.P Earnings Cheat Sheet for the Fourth Quarter .

Results: Net income for the oil and gas company rose to $475 million (51 cents per share) vs. $409 million (42 cents per share) in the same quarter a year earlier. This marks a rise of 16.1% from the year earlier quarter.

Revenue: Rose 4% to $2 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: KMP fell short of the mean analyst estimate of 61 cents per share. It fell short of the average revenue estimate of $2.38 billion.

Quoting Management: Chairman and CEO Richard D. Kinder said, “KMP had a solid fourth quarter and a very successful year overall. We will distribute $4.61 per unit for the full year, exceeding our annual budget of $4.60 per unit and representing an increase of almost five percent from the 2010 distribution per unit. We also generated cash in excess of our distribution target of approximately $21 million.”

Key Stats:

The company has now missed analyst estimates for the last four quarters. It fell short by 2 cents in the third quarter, by 10 cents in the second quarter, and by 3 cents in the first quarter.

Revenue has now gone up for three straight quarters. In the third quarter, revenue rose 6.6% to $2.2 billion while the figure rose 2.9% in the second quarter from the year earlier.

Last quarter’s profit increase breaks a streak of two consecutive quarters of year-over-year profit decreases. In the third quarter, net income fell 33.1% while the figure dropped in the second quarter.

Looking Forward: Expectations for the company’s next quarter performance are more favorable than they were a month ago. The average estimate for the first quarter of the next fiscal year is now at 64 cents per share, up from 64 cents. For the fiscal year, the average estimate has moved down from $1.85 a share to $1.79 over the last ninety days.

Competitors to Watch: Kinder Morgan Inc , Copano Energy, L.L.C. , Enterprise Products Partners L.P. , MarkWest Energy Partners, L.P. , El Paso Pipeline Partners, L.P. , El Paso Corporation , Enterprise GP Hldgs. L.P. , Energy Transfer Partners, L.P. , Duncan Energy Partners L.P. , and Magellan Midstream Partners, L.P. .

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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