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Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today increased its quarterly cash distribution per common unit to $1.38 ($5.52 annualized) payable on May 15, 2014, to unitholders of record as of April 30, 2014. This represents a 6 percent increase over the first quarter 2013 cash distribution per unit of $1.30 ($5.20 annualized) and is up from $1.36 per unit ($5.44 annualized) for the fourth quarter of 2013.
Chairman and CEO Richard D. Kinder said, “KMP had a strong first quarter and increased the distribution for the 51st time since current management took over in February of 1997. We earned distributable cash flow before certain items of $1.55 per unit for the first quarter, which equates to coverage in excess of our distributions of $76 million. Our five business segments produced $1.569 billion in segment earnings before DD&A and certain items, a 23 percent increase over the first quarter of 2013. Growth was led by contributions from the Copano acquisition, a dropdown from Kinder Morgan, Inc. associated with the El Paso Corporation transaction, outstanding results from the Natural Gas Pipelines group, increased oil production at our CO
2segment and strong results from our Terminals business. We continue to see exceptional growth opportunities across all of our business segments and currently have identified approximately $14.9 billion in expansion and joint venture investments at KMP that we are confident will come to fruition and drive future growth. This compares to a backlog of $13.5 billion in projects announced in our January earnings release.”
KMP reported first quarter distributable cash flow before certain items of $693 million, up 26 percent from $550 million for the comparable period in 2013. Distributable cash flow per unit before certain items was $1.55 compared to $1.46 for the first quarter last year. First quarter net income before certain items was $788 million compared to $655 million for the same period in 2013. Including certain items, net income was $754 million compared to $792 million for the first quarter last year. Certain items for the first quarter totaled a net loss of $34 million versus a net gain of $137 million for the same period last year. Certain items for the first quarter included legal reserve adjustments.