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

“Segment earnings also received a boost from good results at our liquids terminals on the Houston Ship Channel and in New York Harbor (resulting from increased volumes, new contracts and incremental tank capacity), and at Fairless Hills (resulting from increased steel volumes),” Kinder said. Acquisitions that contributed to growth versus the third quarter last year included an additional equity investment in December of 2011 in Watco Companies, which owns the largest privately held short line railroad business in the United States.

In the third quarter, this segment handled 15.7 million barrels of ethanol, up slightly compared to the same period last year. Combined, the terminals and products pipelines business segments handled about 24.6 million barrels of ethanol compared to 23.5 million barrels in the third quarter of 2011. KMP continues to handle approximately 30 percent of the ethanol used in the United States.

Kinder Morgan Canada produced third quarter segment earnings before DD&A and certain items of $56 million, up 15 percent from $48 million for the same period last year, and currently is expected to slightly exceed its published annual budget of 1 percent growth.

“Highlights in the third quarter compared to the same period last year included the impact of the 2012 toll agreement on the Trans Mountain pipeline system, favorable book taxes, strong throughput on Trans Mountain and at the Westridge Terminal, and continued good results from the Express-Platte Pipeline,” Kinder said. Trans Mountain volumes increased compared to the third quarter last year due to a pressure restriction in 2011 that was lifted earlier in 2012.

2012 Outlook

As previously announced, KMP expects to declare cash distributions of $4.98 per unit for 2012, an 8 percent increase over the $4.61 it distributed for 2011. Due to deteriorating NGL prices, KMP now expects to generate 2012 distributable cash flow slightly above its distributions, but below budget. Excluding the dropdown transactions discussed below and expansion projects associated with those assets, KMP now expects to invest approximately $2.2 billion in expansions (including contributions to joint ventures) and acquisitions for 2012. Approximately $500 million of the equity required for this investment program is expected to be funded by Kinder Morgan Management, LLC (NYSE: KMR) dividends. As previously announced, and related to KMI’s acquisition of El Paso Corporation, the average annual growth rate in KMP distributions per unit and KMR dividends per share is expected to be around 7 percent from 2011 through 2015.

6 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
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs