The CO 2 segment is an area where KMP is exposed to commodity price risk, but that risk is partially mitigated by a long-term hedging strategy intended to generate more stable realized prices. The realized weighted average oil price per barrel for the quarter, with all hedges allocated to oil, was $70.43 versus $59.54 for the same period in 2010. The realized weighted average NGL price per barrel for the quarter, allocating none of the hedges to NGLs, was $68.86 compared to $46.73 for the same period last year.
The Terminals business produced third quarter segment earnings before DD&A and certain items of $180.4 million, up 10 percent from $164.0 million for the comparable period in 2010, and is expected to come in slightly below its published annual budget of 10 percent growth.
“About three quarters of the growth in this segment was driven by organic sources compared to the third quarter of 2010, with the remainder coming from acquisitions,” Kinder said. “Internal growth was led by higher export coal volumes at Pier IX in Virginia and at our bulk facilities in Houston, as coal volumes handled across the company increased by 23 percent compared to the third quarter of 2010. We also realized increased ethanol throughput at the Argo facility in Chicago and higher results at Carteret in New York Harbor due to tank expansions.” Acquisitions that contributed to growth quarter over quarter included the Watco rail transaction (December 2010) and the purchase of the Port Arthur, Texas, terminal (June 2011) which handles petcoke for the Total refinery.
For the third quarter, this segment handled 15.5 million barrels of ethanol, up 10 percent from 14.1 million barrels for the comparable period last year. Combined, the terminals and products pipelines business segments handled about 23.5 million barrels of ethanol compared to 21.7 million barrels in the third quarter of 2010. For the first three quarters of this year, the terminals and products pipelines business segments combined handled about 67.9 million barrels of ethanol versus 66.6 million barrels in the comparable period a year ago. KMP continues to handle approximately 30 percent of the ethanol used in the United States.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV