El Paso Pipeline Partners, L.P. (NYSE: EPB) today increased its quarterly cash distribution per common unit to $0.55 ($2.20 annualized) payable on Aug. 14, 2012, to unitholders of record as of July 31, 2012. This represents a 15 percent increase over the second quarter 2011 cash distribution per unit of $0.48 ($1.92 annualized) and an 8 percent increase from $0.51 per unit ($2.04 annualized) for the first quarter of 2012. EPB has increased its cash distribution 17 consecutive quarters since its initial public offering in November 2007.
Chairman and CEO Richard D. Kinder said, "EPB had a solid quarter and first half of the year. Our financial results reflect consistent performance from our regulated pipeline and storage assets, completed expansion projects, increased demand from gas-fired power plants and initial contributions from recent asset drop downs from El Paso Corporation. As we look to the future, we expect to realize cost and growth synergies as a result of Kinder Morgan, Inc.’s recent acquisition of El Paso. EPB’s assets are well positioned to help meet the country’s increasing demand for natural gas."
EPB reported second quarter distributable cash flow before certain items of $135 million, a 14 percent increase from $118 million for the comparable period in 2011. Distributable cash flow per unit before certain items was $0.65, compared to $0.60 for the second quarter last year. Second quarter net income before certain items was $131 million compared to $124 million for the same period in 2011. Including certain items, net income was $134 million versus $153 million for the second quarter last year.
For the first six months, EPB generated distributable cash flow before certain items of $278 million, up 9 percent from $256 million for the first two quarters of 2011. Distributable cash flow per unit before certain items was $1.35, which was flat compared to the first six months of 2011. Net income before certain items was $272 million versus $287 million for first half of 2011.
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