This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Kinder Morgan Energy Partners Increases Quarterly Distribution To $1.26 Per Unit

Oil production at the SACROC Unit increased to 30 MBbl/d in the third quarter, up 2 percent from the same period last year and 6 percent from the second quarter this year, and well above plan. Production continued to be relatively stable at the Yates Field, which produced 20.6 MBbl/d in the third quarter, about a 4 percent decline compared to the same period last year and flat versus the second quarter this year, and slightly below plan. Production at the Katz Field was 1.8 MBbl/d in the third quarter, up significantly from 0.5 MBbl/d for the same period last year, but flat with the second quarter this year and well below plan. The average West Texas Intermediate (WTI) crude oil price for the third quarter was $92.25 per barrel compared to a budgeted projection of $93.60 for the same period.

This 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 $88.64 versus $70.43 for the third quarter of 2011. The realized weighted average NGL price per barrel for the second quarter, allocating none of the hedges to NGLs, was $44.27 compared to $68.86 for the same period last year.

The Terminals business produced third quarter segment earnings before DD&A and certain items of $184 million, up 2 percent from $181 million for the comparable period in 2011, and is currently expected to meet its published annual budget of 8 percent growth. Growth for the quarter was evenly distributed among organic sources and acquisitions.

“Internal growth in this segment was led again by strong export coal volumes across our terminal network, including new shipments at our Houston bulk terminals,” Kinder said. Export coal volumes increased by 32 percent (up 1.2 million tons) compared to the third quarter of 2011, while overall coal throughput declined by 8 percent. For the first nine months of this year, export coal volumes increased by 45 percent (up 4.9 million tons) versus 2011, and overall coal throughput is up 2 percent.

5 of 10

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs