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Kinder Morgan, Inc. (NYSE: KMI) today reported third quarter cash available to pay dividends of $362 million, up 93 percent from $188 million for the comparable 2011 period. Through the first nine months, KMI reported cash available to pay dividends of $972 million compared to $623 million for the same period in 2011. The company now expects to generate cash available to pay dividends of more than $1.325 billion for the year, significantly ahead of its published annual budget. The increase is attributable to the El Paso Corporation acquisition which closed in late May.
The board of directors increased the quarterly cash dividend to $0.36 per share ($1.44 annualized), which is payable on Nov. 15, 2012, to shareholders of record as of Oct. 31, 2012. This represents a 20 percent increase over the third quarter 2011 cash distribution per unit of $0.30 ($1.20 annualized) and is up from the second quarter 2012 dividend of $0.35 ($1.40 annualized) per share.
Chairman and CEO Richard D. Kinder said, “KMI had an outstanding quarter and our cash available to pay dividends nearly doubled compared to the third quarter of 2011. Growth was attributable to the strong performance of Kinder Morgan Energy Partners, and a full quarter of contributions from El Paso Pipeline Partners and the natural gas assets that we acquired in the El Paso Corporation transaction. We continue to be very pleased with the El Paso assets that we purchased and the people we have added to the Kinder Morgan team, and we are making significant progress in fully integrating the two companies. 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. As the largest natural gas transporter and storage operator in North America, the Kinder Morgan companies are well positioned to play a leading and integral role as demand for natural gas continues to increase.”