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Kinder Morgan shares fall on Q2 loss

HOUSTON (AP) -- Kinder Morgan Inc. lost money in its second quarter as the country's biggest natural gas pipeline operator lowered the value of some assets it agreed to sell as part of the El Paso buyout.

Kinder Morgan agreed to sell certain pipeline operations to get government approval for its $20 billion acquisition of El Paso Corp., which it completed in May.

The company reported late Wednesday that it lost $125 million, or 17 cents per share, for the period. That compares with earnings of $132 million, 17 cents per share, a year earlier.

The current quarter included a $327 million write-down related to the assets being sold. Those include Kinder Morgan Interstate Gas Transmission, Trailblazer Pipeline Company, natural gas processing and treating facilities in Wyoming, and a 50-percent stake in the Rockies Express Pipeline. The completion of the asset sale is expected in the third quarter.

For the three months ended June 30, revenue rose 11 percent to $2.17 billion from $1.95 billion.

Analysts expected revenue of $2.68 billion, according to FactSet.

Kinder Morgan boosted its quarterly dividend to 35 cents per share, a 9 percent increase from its first-quarter dividend of 32 cents per share. It will be paid on Aug. 15 to shareholders of record on July 31.

On Thursday Kinder Morgan Energy Partners, in which Kinder Morgan owns a limited partner interest, announced that it made some long-term deals with BP North America. Kinder Morgan Energy will provide condensate processing services and storage to BP at its terminals on the Houston Ship Channel. BP will also lease 750,000 barrels of storage that Kinder Morgan Energy will add at its Galena Park terminal.

Kinder Morgan shares fell 47 cents to $34.92 in midday trading on Thursday, while Kinder Morgan Energy's stock rose 11 cents to $85.49.