Kinder Morgan Energy Partners L.P Earnings Cheat Sheet: Below Street Expectations

Kinder Morgan Energy Partners L.P (NYSE:KMP) reported a lower net income in third 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 for the Third Quarter

Results: Net income for the oil and gas company fell to $214.5 million vs. $320.8 million a year earlier. This is a decline of 33.1% from the year earlier quarter.

Revenue: Rose 6.6% to $2.2 billion from the year earlier quarter.

Quoting Management: Chairman and CEO Richard D. Kinder said, “There are exceptional growth opportunities in the midstream energy sector, particularly in the natural gas shale plays and in the coal export business. With our large footprint of assets in North America KMP is well positioned for future growth.”

Key Stats:

The company has now seen net income fall in each of the last two quarters. In the second quarter, net income fell 36.2% from the year earlier quarter.

Margins rose in the second quarter after falling the quarter before. Gross margin rose 1.1 percentage points to 38.3% from the quarter earlier quarter. In the first quarter, the figure rose 8.1 percentage points to 32.5% from the year earlier quarter.

The company’s revenue has now risen for two straight quarters. In the second quarter, revenue increased 2.9% to $2.02 billion from the year earlier quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 63 cents a share to 67 cents over the last ninety days. The average estimate for the fiscal year is $1.87 per share, down from $1.91 ninety days ago.

Competitors to Watch: Kinder Morgan Inc (NYSE:KMI), Copano Energy, L.L.C. (NASDAQ:CPNO), Enterprise Products Partners L.P. (NYSE:EPD), MarkWest Energy Partners, L.P. (NYSE:MWE), El Paso Pipeline Partners, L.P. (NYSE:EPB), El Paso Corporation (NYSE:EP), Enterprise GP Hldgs. L.P. (EPE), Energy Transfer Partners, L.P. (NYSE:ETP), Duncan Energy Partners L.P. (NYSE:DEP), and Magellan Midstream Partners, L.P. (NYSE:MMP).

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(Source: Xignite Financials)