Seeking Alpha

Kinder Morgan profits drop, but points to growing natural gas demand

  • Kinder Morgan's (KMI) Q1 earnings fell 1.7% and missed estimates, while Q1 earnings at its Kinder Morgan Partners (KMP) affiliate slipped 5% and El Paso Partners (EPB) also posted a Y/Y decline.
  • KMP, which holds the majority of KMI's assets, had reported strong profit growth in recent quarters; KMP's earnings more than doubled in 2013, while KMI enjoyed a sixfold increase in net income last year.
  • But "we had a very good quarter," Chairman/CEO Richard Kinder said in the earnings call, as the company highlighted the success of its natural gas pipelines segment, which saw earnings grow more than 40% to $564M.
  • Kinder said analysts’ projections that U.S. demand for natural gas could rise by a third by 2024 as “a little understated," touting demand for gas for LNG exports, electric generation, industrial use and shipment to Mexico as factors that bode well for the company’s future.

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Comments (6)
  • das555
    , contributor
    Comments (244) | Send Message
     
    SA still doen't get it - EPS is not the important metric for an MLP - look at distributable cash flow (which was good).;
    16 Apr 2014, 07:45 PM Reply Like
  • Blue22
    , contributor
    Comments (307) | Send Message
     
    Ditto the above plus: We are just coming out of the Winter Effect, which for obvious reasons slows production of all petroleum/gas products and shipping! Analists applying those yearly numbers as overall deficits shows a total lack of understanding of the business models.

     

    I am finding most so-called analists are fixated on shorts and market manipulation following the major banks and hedge funds. This despite the coming billions of dollars in settlements for fraud and criminal behavior of the above-mentioned evil-dooers.
    16 Apr 2014, 08:16 PM Reply Like
  • tgar13
    , contributor
    Comments (193) | Send Message
     
    Dcf looked great and that's what matters
    16 Apr 2014, 08:43 PM Reply Like
  • satyr
    , contributor
    Comments (989) | Send Message
     
    Well, the "earnings miss" headline comes straight from Dow Jones, the publisher of Barron's. So, no surprise there. (Not that they would have a bias, of course.)
    16 Apr 2014, 09:34 PM Reply Like
  • jeepnsam
    , contributor
    Comments (52) | Send Message
     
    Always by $KMI and $KMP on the dips. Love dividends in IRA's
    16 Apr 2014, 11:48 PM Reply Like
  • Alex2322
    , contributor
    Comments (325) | Send Message
     
    I love this company and the KMi and KMP :)
    17 Apr 2014, 12:27 AM Reply Like
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