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Kinder Morgan Energy Partners, L.P. (KMP) operates as a pipeline transportation and energy storage company in North America. Its Products Pipelines segment delivers gasoline, diesel fuel, jet fuel, and natural gas liquids to various markets through approximately 8,400 miles of refined petroleum products pipelines; and operates 60 associated product terminals and petroleum pipeline transmix processing facilities.

It is scheduled to report its Q2 2012 results on July 18, 2012, after the bell. In this article I will recap the historical results of the company, latest EPS estimates vs. surprises, latest developments and closest competitors' development.

Technical Overview


The stock has a market capitalization of $28.14B and is currently trading at $82.63 with a 52 week range of $63.42 - $90.60. The stock performance year to date: 0.00%. It is currently trading above 20, 50 and 200 SMA. It has broken north of a technical triangle in the beginning of July 2012.

Key Metrics

  • Trailing P/E: N/A
  • Forward P/E: 33.18
  • Price/Sales: 3.45
  • Price/Book: 4.04
  • PEG Ratio: 15.80
  • Total Debt: 14.10B
  • Annual dividend yield: 5.70%
  • Return on Equity: 20.23%
  • Return on Assets: 5.31%

Kinder Morgan Energy Partners LP Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has failed to meet analysts' estimates in the last four quarters. In the last quarter it reported $0.61 EPS, failing to meet analyst estimates of $0.65.

Kinder Morgan Energy Partners LP EPS Historical Results vs Estimates

The consensus EPS estimate is $0.48 based on 13 analysts' estimates, up from $0.30 a year ago. Revenue estimates are $2.20B, up from $2.02B a year ago. The median target price by analysts for the stock is $85.50.

Average recommendation: Hold

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On April 16, 2012, Global Hunter Securities initiated Neutral rating for the company.

Latest Developments

  • On June 19, 2012, Swift Energy Company announced that it has entered into a long term agreement for natural gas gathering and processing services for its LaSalle County, TX natural gas production with Eagle Ford Gathering LLC, a 50/50 joint venture between Kinder Morgan Energy Partners, L.P. and Copano Energy, L.L.C. This agreement is effective as of June 1, 2012.
  • On June 5, 2012, Kinder Morgan Energy Partners announced that it has completed its acquisition of a 50% interest in a joint venture that owns the Altamont gathering, processing and treating assets in the Uinta Basin in Utah and the Camino Real gathering system in the Eagle Ford Shale in Texas from Kohlberg Kravis Roberts & Co. L.P. for $300 million in Kinder Morgan Energy Partners units.
  • On February 27, 2012, Kinder Morgan Energy Partners And Martin Midstream Partners LP announced a new joint venture, Pecos Valley Producer Services LLC, to develop a multi-commodity rail terminal in Pecos, Texas.
  • On January 24, 2012, Kinder Morgan Energy Partners announced plans to invest approximately $140 million to further expand its coal handling facilities along the Gulf Coast.
  • On January 18, 2012, Kinder Morgan Energy Partners announced that it has declared a quarterly cash distribution per common unit of $1.16 ($4.64 annualized) payable on February 14, 2012, to unitholders of record as of January 31, 2012.

Competitors

Kinder Morgan Energy Partners LP operates in Oil & Gas Pipelines industry. The company could be compared to Enbridge Energy Partners LP (EEP), Enterprise Products Partners LP (EPD), Energy Transfer Partners LP (ETP), ONEOK Partners, L.P. (OKS), and Williams Companies, Inc. (WMB). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies for the last one year period.

(click to enlarge)KMP Chart

KMP data by YCharts

Competitors' Latest Development

  • On June 28, 2012, Energy Transfer Partners LP announced that it has priced a public offering of 13,500,000 common units representing limited partner interests at $44.57 per common unit.
  • On June 27, 2012, Energy Transfer Partners LP announced it has commenced a public offering of 13,500,000 common units representing limited partner interests, with a 30-day option for the underwriters to purchase up to an additional 2,025,000 common units.
  • On May 17, 2012, Williams Companies Inc announced that its Board of Directors has approved a regular dividend of $0.30 on the Company`s common stock, payable June 25, 2012, to holders of record at the close of business on June 8. The increase over the previous amount of $0.25875 per share is consistent with the Company`s previously announced plan to increase its dividend more frequently - with increases every quarter.
  • On May 1, 2012, Oneok Partners LP reaffirmed fiscal 2012 net income guidance range of $810 million to $870 million.
  • On April 30, 2012, Energy Transfer Partners LP and Sunoco Inc announced that they have entered into a definitive merger agreement whereby ETP will acquire Sunoco in a unit and cash transaction valued at $50.13 per share, or a total consideration of approximately $5.3 billion, based on ETP's closing price on April 27, 2012.
  • On April 25, 2012, Energy Transfer Partners LP announced that its Board of Directors has approved a quarterly distribution of $0.89375 per unit ($3.575 annualized) on ETP common units for the quarter ended March 31, 2012.
  • On April 25, 2012, Williams Companies Inc announced that for fiscal 2012, it expects earnings per share (EPS) of $1.40. EPS of $1.55 in fiscal 2013 and EPS of $1.83 in fiscal 2014.
  • On April 13, 2012, Enterprise Products Partners LP announced that the Board of Directors of its general partner declared an increase in the quarterly cash distribution rate paid to partners to $0.6275 per common unit, or $2.51 per unit on an annualized basis.
  • On April 12, 2012, Enterprise Products Partners LP, Anadarko Petroleum Corporation and DCP Midstream, LLC announced an agreement to design and construct a new natural gas liquids (NGL) pipeline that will originate in the Denver-Julesburg Basin (DJ Basin) in Weld County, Colorado and extend approximately 435 miles to Skellytown, Texas in Carson County.
  • On March 30, 2012, Williams Companies Inc announced that it priced a public offering of 26,000,000 shares of its common stock at $30.59 per share. The offering is expected to close on April 4, 2012.
  • On March 29, 2012, Williams announced that it intends to commence an underwritten public offering of 26,000,000 shares of its common stock. The shares will be offered by Williams pursuant to an effective shelf registration statement on file with the Securities and Exchange Commission.
  • On March 19, 2012, Williams Companies announced that for fiscal 2012, it expects midpoints of adjusted earnings per share to be $1.35. For fiscal 2013, it expects midpoints of EPS to be $1.55. For fiscal 2014, it expects midpoints of EPS to be $1.80. According to I/B/E/S Estimates, analysts are expecting the Company to report EPS of $1.49 for fiscal 2012; EPS of $1.66 for fiscal 2013; EPS of $1.78 for fiscal 2014.
  • On March 7, 2012, Enbridge Energy Partners LP announced that for fiscal 2012, it expects the earnings to be between $510-$550 million.
  • On February 27, 2012, Oneok Partners LP announced a public offering of 7.0 million of its common units, representing limited partner interests, subject to market and other conditions.
  • On February 22, 2012, Williams Companies announced that it expects 12% adjusted earnings per share growth through fiscal 2013 despite an expectation of lower NGL margins.
  • On February 20, 2012, Oneok Partners LP announced that for fiscal 2012, it increased its net income guidance by more than 9% to a range of $810 million to $870 million, compared with the previous guidance range of $740 million to $800 million.
  • On February 16, 2012, Energy Transfer Partners, L.P. announced that it has entered into new multiple long-term, fee-based agreements with producers to provide natural gas gathering, processing, and liquids services from the Eagle Ford Shale in South Texas.
  • On February 16, 2012, Energy Transfer Partners, L.P. and Regency Energy Partners LP announced that their joint venture, Lone Star NGL LLC, will construct a second 100,000 barrel per day natural gas liquids fractionation facility at Mont Belvieu, Texas.
  • On February 13, 2012, Enterprise Products Partners LP announced that it has purchased a 37-acre tract of land adjacent to its Enterprise Crude Houston (ECHO) crude oil terminal, which is currently under construction, in southeast Harris County.
  • On February 8, 2012, Enterprise Products Partners LP announced that its operating subsidiary, Enterprise Products Operating LLC (EPO), has priced a public offering of $750 million of senior unsecured notes due on August 15, 2042 (August 2042 Notes).
  • On January 31, 2012, Enbridge Energy Partners LP announced that for fiscal 2012, it expects adjusted net income will be between $510-$550 million, adjusted EBITDA will be between $1.19-$1.25 billion and operating income (EBIT) to be between $870-$910 million.
  • On January 19, 2012, Williams Companies announced that it has approved a regular dividend of $0.25875 on the Company's common stock, payable March 26, 2012, to holders of record at the close of business on March 9.
  • On January 17, 2012, Enterprise Products Partners L.P. announced that the board of directors of its general partner declared an increase in the quarterly cash distribution rate paid to partners to $0.62 per common unit, or $2.48 per unit on an annualized basis.
  • On January 12, 2012, AmeriGas Partners, L.P. announced that it has completed the acquisition of the propane operations (Heritage) of Energy Transfer Partners, L.P. (Energy Transfer) for approximately $1.46 billion in cash, $1.32 billion in common units and the assumption of debt.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Kinder Morgan Energy Partners