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Kinder Morgan companies lower AH as Q2 earnings miss estimates

  • Kinder Morgan Partners (NYSE:KMP) -1.8% AH after Q2 profit fell from a year ago when results were boosted by a large gain related to an acquisition, but distributable cash flow rose 11% to $561M, or $1.23/unit vs. $1.22 a year ago.
  • Earnings at KMP's natural gas pipeline business rose 13% Y/Y, including increases from Tennessee Gas Pipeline expansion projects and the 2013 Copano acquisition.
  • Kinder Morgan Inc. (NYSE:KMI) -0.3% AH after reporting flat Q2 earnings as shares outstanding declined by 1% and revenue increased 16% to $3.94B; KMI will pay a $0.43/share cash dividend, up from $0.40 in the year-ago period.
  • El Paso Pipeline Partners' (NYSE:EPB) Q2 earnings fell to $0.32/unit from $0.40 while revenue dropped 1.7% to $353M.
  • KMI CEO Richard Kinder says the company has identified a combined $17B in expansion and JV investments, up from $16.4B reported in April, taking into account ~$700M in projects placed into service in Q2, which means Kinder has added ~$1.3B to its backlog.
Comments (15)
  • 27975573
    , contributor
    Comments (289) | Send Message
    Yes....the bottom line was not as good as it could be.
    With all the expansion projects going...thus costs are up.


    Not a real surprise here.... as these assets come on line;
    revenues and cash flow will increase at above trend rates.


    Patience here is needed.........AH! Yes!! The dividends will
    do that for me.


    Long KMI, KMP
    16 Jul, 06:33 PM Reply Like
  • Clayton Rulli
    , contributor
    Comments (2621) | Send Message
    forget EPS....distributable cash flow rose 11% to $561M
    18 Jul, 01:08 PM Reply Like
  • das555
    , contributor
    Comments (197) | Send Message
    EPS of no importance with MLP structure. Distributable Cash Flow is the metric and is increased. Pleased holder.
    16 Jul, 06:33 PM Reply Like
  • Capt Jack Daniels
    , contributor
    Comments (1264) | Send Message
    KMP's profits actually increased from last year. 2.5%.
    16 Jul, 06:53 PM Reply Like
  • schek711
    , contributor
    Comments (11) | Send Message
    If last years results were the result of a one time event then it seems to me that the effect should be factored out and apples compared to apples not apples compared to pears.


    Profits were up in Nat Gas, CO2, and distributions were increased since DCF increased. Someone tell me I'm wrong. I;m going to bed and await my increased dividends and watch the stock price recover.
    16 Jul, 07:16 PM Reply Like
  • crrh
    , contributor
    Comments (12) | Send Message
    If it gets beat up very much on news of an 11% increase in DCF, I will add to my holdings.
    16 Jul, 07:26 PM Reply Like
  • ephud
    , contributor
    Comments (2435) | Send Message


    KMI was getting beaten up in AH, down below $36, but it's bounced back and ended at ~$37.
    16 Jul, 07:49 PM Reply Like
  • 2lazye
    , contributor
    Comment (1) | Send Message
    Looking to the future when more and more energy transfer will occur as demand is increased by utilities and possible international sales. I am a long term holder of everything. Do not trade.
    16 Jul, 08:36 PM Reply Like
  • aeroguy48
    , contributor
    Comments (654) | Send Message
    So will KMP increase their distribution?
    16 Jul, 09:19 PM Reply Like
  • allday1234
    , contributor
    Comments (138) | Send Message
    Dividend is $1.39 pays August 14..Last Q was $1.38 so yes that is a raise.
    16 Jul, 10:13 PM Reply Like
  • Ruffdog
    , contributor
    Comments (1557) | Send Message
    I'll take it, thank you Richard Kinder!
    17 Jul, 08:22 AM Reply Like
  • keepingitsimple
    , contributor
    Comments (11) | Send Message
    ZZZZZZZZZZZZZ.......Have owned KMP and KMR for 25 years so if you would like to relax with me in my retirement then just check the charts on the value of the stock and then add up the distributions over that time period and stop listening to the noise. Anyone here (even the author) think we are not in the midst of one of the great booms in history? Is there any doubt that once the KM system is built out that the demand is there and the ability to increase rates will follow? Think of a toll road that as the traffic increases you have more volume and as the length of the route is extended your pricing power goes up accordingly. Richard Kinder is one of the bankable CEO's in any business and the last time I checked he is a multi billionaire who is aggressively buying his own stock on any dip. Hello? As Warren Buffet has been saying during most of my lifetime "buy solid businesses with great management and let them do the work for your benefit" Now back to planning my next trip and then enjoying my afternoon nap. ZZZZZZZZZZZZZZZZ
    17 Jul, 07:28 AM Reply Like
  • Ruffdog
    , contributor
    Comments (1557) | Send Message
    You have owned for 25 years, wow! if you reinvested the dividend you re a rich man! congratulations.
    17 Jul, 08:23 AM Reply Like
  • kitkat2
    , contributor
    Comments (13) | Send Message
    totally agree-- have owned KMP & KMI for about 5yrs-- has added to my
    retirement income
    18 Jul, 04:51 PM Reply Like
  • Clayton Rulli
    , contributor
    Comments (2621) | Send Message
    do SA editors know not to highlight EPS in headlines for MLPs?
    18 Jul, 01:08 PM Reply Like
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