Kinder Morgan Energy Earnings: Misses Expectations as Profit Falls

Kinder Morgan Energy Partners L.P (NYSE:KMP) reported a lower net income in second quarter, missing analysts’ estimates. Kinder Morgan Energy Partners is a pipeline transportation and energy storage company in North America, which owns and manages a portfolio of energy transportation and storage assets.

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Kinder Morgan Energy Partners L.P Earnings Cheat Sheet

Results: Net income for the oil/gas production pipeline fell to $153 million (53 cents per share) vs. $230.5 million (19 cents per share) a year earlier. This is a decline of 33.6% from the year-earlier quarter.

Actual vs. Wall St. Expectations: Kinder Morgan Energy Partners L.P fell short of the mean analyst estimate of 47 cents per share.

Quoting Management: Chairman and CEO Richard D. Kinder said, “KMP had a strong second quarter, as our stable and diversified assets continued to grow and produce incremental cash flow. Our distributable cash flow increased by 13 percent versus the second quarter of 2011, and our CO2, Natural Gas Pipelines and Terminals business segments produced robust results. Looking ahead, we believe there are multiple growth opportunities across all of our businesses related to the natural gas shale plays, growing CO2 needs in West Texas for enhanced oil recovery, increasing demand for export coal, and additional infrastructure requirements to transport products from the Canadian oilsands and to move and store natural gas liquids. We are also excited about the growth opportunities that KMP is expected to realize from Kinder Morgan, Inc.’s acquisition of El Paso Corporation, which closed in the second quarter. With our large footprint of assets in North America, KMP is well positioned for future growth.”

Key Stats:

The company has missed analyst estiamtes for four quarters in a row. It fell short by 18 cents in the first quarter, by 6 cents in the fourth quarter of the last fiscal year, and by 2 cents in the third quarter of the last fiscal year.

The company’s net income has fallen in each of the last two quarters. In the first quarter, net income fell 39% from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 59 cents a share to 57 cents over the last ninety days. The average estimate for the fiscal year is $2.31 per share, down from $2.38 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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