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Kinder Morgan Misses Earnings Estimates

The energy company was hurt in the first quarter by lower crude oil prices, lower transportation volumes, and overall economic conditions.

Once these most recent quarterly results are finalized, they will be run through Ratings' model and our ratings will be adjusted accordingly. To keep up to date on all of our ratings, visit Ratings Screener.

Kinder Morgan Energy Partners


reported on April 15, 2009 that its Q1 FY09 net income declined 23.9% to $266.80 million or $0.15 per share from $350.70 million or $0.63 per share in Q1 FY08. Net income attributable to KMP was $263.90 million compared to $346.70 million in the previous year's quarter. The latest quarterly results missed the consensus estimate of $0.33 per share.

Q1 FY09 revenue plunged 34.3% to $1.79 billion from $2.72 billion due to weak economic conditions, lower crude oil prices, and lower transportation volumes.

Product Pipelines earnings jumped 3.5% to $146.00 million, helped by higher rates, expansions at the West Coast Terminals, and higher ethanol revenue from the Central Florida Pipeline. Natural Gas Pipelines earnings grew 7.4% to $202.10 million, helped by the company's West Region pipelines, including Rockies Express-West, as well as strong results at KMIGT, and contributions from the Kinder Morgan Louisiana Pipeline. Terminals earnings rose 7.1% to $134.70 million, driven by an 11.0% increase in throughput at New York Harbor liquids terminals, a 5.0% increase in throughput at petcoke operations on the Gulf Coast, and expansions at the Pier IX Terminal in Virginia, the North 40 Terminal in Alberta, and liquids terminals on the Houston Ship Channel. Kinder Morgan Canada earnings climbed 13.9% to $34.40 million from $30.20 million. Earnings from CO2 slipped 16.2% to $167.40 million due to lower oil prices on unhedged volumes.

Kinder Morgan declared a quarterly cash distribution per common unit of $1.05, payable on May 15, 2009, and expects to declare FY09 cash distributions of $4.20 per unit, a 4.5% increase over FY08.