El Paso Pipeline Partners’ 1Q14 earnings: A brief overview

Market Realist

An investor's must-know guide to El Paso's 2014 growth outlook (Part 1 of 4)

El Paso Pipeline Partners

On April 16, 2014, El Paso Pipeline Partners (EPB) presented its earnings for the first quarter of 2014. El Paso Pipeline Partners is a master limited partnership that owns and operates natural gas transportation pipelines, storage and other midstream assets. EPB was acquired by Kinder Morgan, Inc. (KMI) in 2012. EPB owns more than 13,000 miles of pipeline and associated storage facilities with aggregate storage capacity of nearly 100 billion cubic feet (Bcf). It offers natural gas transmission services to a range of customers, including natural gas distribution and industrial companies, electric generation companies, natural gas producers, other natural gas pipelines, and natural gas marketing and trading companies.

El Paso’s assets consist of Southern Natural Gas Company (or SNG), an interstate natural gas company located in the southeastern U.S.; Colorado Interstate Gas Company (or CIG), an interstate pipeline company, which is located in the Rocky Mountains; Wyoming Interstate Company (or WIC), an interstate pipeline company primarily located in Wyoming and Colorado; Southern LNG Company (or SLNG), which owns an LNG storage and regasification terminal near Savannah, Georgia; Elba Express Pipeline Company (Elba Express), an interstate pipeline company, which is located in Georgia and South Carolina; and Cheyenne Plains Gas Pipeline Company (or CGP), a pipeline extending from the Rocky Mountain region to Kansas.

Kinder Morgan, Inc. (KMI) owns the general partner interest as well as the limited partner interest in the El Paso Pipeline Partners (EPB). KMI completed a ~$38.0 billion acquisition of El Paso Corporation (EPB) in May 2012. Kinder Morgan Energy Partners (KMP) is one of the largest master limited partnerships operating in the midstream energy space. Other major companies operating in the same sector as KMP include Targa Resource Partners (NGLS), Regency Energy Partners (RGP), Plains All American Pipeline (PAA), and Energy Products Partners (EPD). All of these companies are components of the Alerian MLP ETF (AMLP). KMP is part of the Alerian MLP ETF (AMLP), as well as the MLPA ETF. KMI is part of the MLPX ETF.

In the next part, we will discuss the 1Q14 earnings and the key trends noticed in EPB.

Continue to Part 2

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