El Paso Pipeline Partners, L.P. (NYSE: EPB) today increased its quarterly cash distribution per common unit to $0.58 ($2.32 annualized) payable on Nov. 14, 2012, to unitholders of record as of Oct. 31, 2012. This represents an 18 percent increase over the third quarter 2011 cash distribution per unit of $0.49 ($1.96 annualized) and a 5 percent increase from $0.55 per unit ($2.20 annualized) for the second quarter of 2012. EPB has increased its cash distribution 18 consecutive quarters since its initial public offering in November 2007.
Chairman and CEO Richard D. Kinder said, “EPB had a good third quarter. Our performance reflects solid results from our stable, regulated pipeline and storage assets, significantly increased demand from natural gas fired power plants and contributions from dropdowns. Looking ahead, we expect EPB to realize cost and growth synergies as a result of Kinder Morgan, Inc.’s acquisition of El Paso Corporation, which closed in the second quarter this year.”
EPB reported third quarter distributable cash flow before certain items of $149 million, a 32 percent increase from $113 million for the comparable period in 2011. Distributable cash flow per unit before certain items was $0.71, compared to $0.55 for the third quarter last year. Third quarter net income before certain items was $154 million compared to $118 million for the same period in 2011. Including certain items, net income was $151 million versus $131 million for the third quarter last year.
For the first nine months, EPB generated distributable cash flow before certain items of $427 million, up 16 percent from $369 million for the first three quarters of 2011. Distributable cash flow per unit before certain items was $2.06 compared to $1.89 for the comparable period last year. Net income before certain items was $426 million versus $405 million for the first three quarters of 2011. Including certain items, net income was $411 million compared to $460 million for the same period last year. The 2012 certain items for the first nine months total a net loss of $15 million, while the 2011 certain items for the first three quarters totaled a net gain of $55 million.
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