Kinder Morgan 1Q Profit Falls 24 Pct

HOUSTON (AP) — Kinder Morgan Energy Partners LP, an energy transportation and storage company, said its first quarter income slid 24 percent due to ongoing weak commodity prices and market conditions which lowered crude oil prices in its CO2 business, decreased transportation volumes in its products pipelines segment and drove down steel handling in its bulk terminals business.

Quarterly earnings attributable to Kinder Morgan fell to $263.9 million, or 15 cents per unit, compared with $346.7 million, or 63 cents per unit during the same period last year.

Results include a loss of about $18 million, the majority of which was a noncash tax adjustment on its Trans Mountain pipeline system.

Analysts polled by Thomson Reuters predicted a net income of 31 cents per share, on average. Analysts typically exclude one-time items.

Revenue dropped 34 percent to $1.79 billion, down from $2.72 billion in the prior-year period. Analysts forecast revenue at $2.87 billion.

The company said it expects to declare a cash distribution of $4.20 per unit for 2009, a 4.5 percent increase over 2008. Chief Executive Richard Kinder said the company continues to aggressively pursue various acquisition opportunities.

Kinder Morgan shares fell 76 cents to $47.38 in morning trading.