Kinder Morgan, Inc. (NYSE: KMI) today reported fourth quarter cash available to pay dividends of $439 million, up 81 percent from $243 million for the comparable 2011 period. For the full year, KMI reported cash available to pay dividends of $1.411 billion, up 62 percent from $866 million in 2011 and substantially exceeding its published annual budget of $985 million.
The board of directors increased the quarterly cash dividend to $0.37 per share ($1.48 annualized), which is payable on Feb. 15, 2013, to shareholders of record as of Jan. 31, 2013. This represents an increase of 19 percent from the fourth quarter 2011 cash dividend per share of $0.31 ($1.24 annualized) and is up from the third quarter 2012 dividend of $0.36 ($1.44 annualized) per share.
Chairman and CEO Richard D. Kinder said, “KMI had an outstanding quarter and an excellent year. Growth was driven by continued strong performance at Kinder Morgan Energy Partners, L.P. (NYSE: KMP), three quarters of contributions from El Paso Pipeline Partners, L.P. (NYSE: EPB) and the natural gas assets that KMI acquired in the El Paso Corporation transaction, which closed in May 2012. As a result, KMI was able to exceed its initial annual budget of $1.35, meet our revised target to declare $1.40 per share for the full year and actually generate $1.55 in cash available per average share outstanding. We are delighted with the former El Paso employees and assets that have joined Kinder Morgan, and we have made superb progress in fully integrating the two companies. KMI has achieved more than $400 million in annual cost savings, which is higher than our initial estimate of approximately $350 million. Looking ahead, as the general partner of KMP and EPB, KMI is well positioned for future growth in North America. We currently have identified approximately $12 billion in expansion and joint venture investments across the Kinder Morgan companies that we have, or are confident that we will soon have, under contract and we are pursuing customer commitments for many more projects.”