Kinder Morgan Energy Earnings: Revenue Increase Helps Margin, Net Income Climbs

Kinder Morgan Energy Partners L.P (NYSE:KMP) reported higher profit for the third quarter as revenue showed growth. 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 rose to $200 million (21 cents per share) vs. $152 million (20 cents per share) in the same quarter a year earlier. This marks a rise of 31.6% from the year-earlier quarter.

Revenue: Rose 35.2% to $2.87 billion 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. It beat the average revenue estimate of $2.2 billion.

Quoting Management: Chairman and CEO Richard D. Kinder said, “KMI had an outstanding quarter and our cash available to pay dividends nearly doubled compared to the third quarter of 2011. Growth was attributable to the strong performance of Kinder Morgan Energy Partners, and a full quarter of contributions from El Paso Pipeline Partners and the natural gas assets that we acquired in the El Paso Corporation transaction.”

Key Stats:

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

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 57 cents per share, down from 59 cents ninety days ago. For the fiscal year, the average estimate has moved down from $2.38 a share to $2.31 over the last ninety days.

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

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