Kinder Morgan, Inc. (NYSE: KMI) today reported second quarter cash available to pay dividends of $307 million, up 83 percent from $168 million for the comparable 2011 period. Through the first six months, KMI reported cash available to pay dividends of $610 million, 40 percent higher than $435 million for the first half of 2011. KMI is expected to finish the year significantly ahead of its published annual budget due to its recent acquisition of El Paso Corporation.
The board of directors increased the quarterly cash dividend to $0.35 per share ($1.40 annualized), which is payable on Aug.15, 2012, to shareholders of record as of July 31, 2012. This represents a 17 percent increase over the second quarter 2011 cash distribution per unit of $0.30 ($1.20 annualized) and is up 9 percent from the first quarter 2012 dividend of $0.32 ($1.28 annualized) per share.
Chairman and CEO Richard D. Kinder said, “KMI had an excellent quarter, benefiting from the strong performance of Kinder Morgan Energy Partners (NYSE: KMP), and realizing partial-quarter contributions from our new publicly traded pipeline partnership - El Paso Pipeline Partners (NYSE: EPB) - and the natural gas assets we obtained from the acquisition of El Paso Corporation, which closed on May 24. It was a historic quarter and I’m very proud of this transformational transaction, which we successfully completed as a result of the dedication and hard work of many people. We remain focused on fully integrating the new organization, and we are well on our way to achieving anticipated annual cost savings of more than $400 million, which is higher than our original estimate of $350 million. We are now the largest natural gas transporter and operator in North America, which will undoubtedly provide the Kinder Morgan companies with significant long-term growth opportunities, as the demand for natural gas continues to increase.”