Kinder Morgan Inc.
) reported first quarter 2013 earnings of 28 cents a share from
continuing operations, failing to meet the Zacks Consensus
Estimate of 32 cents. However, the quarterly earnings increased
from the year-earlier profit level of 23 cents on the back of
higher volumes from most of its businesses.
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Total revenue for the quarter increased 64.8% year over year to
$3,060.0 million. The reported figure surpassed our expectation
of $2,933.0 million.
: During the quarter ended Mar 31, 2012, the Class A shares
earnings per share as compared to the Class P shares earnings per
share were primarily reduced by the dividends paid to the Class B
shares on Feb 15, 2012. On Dec 26, 2012, all remaining Class A, B
and C shares were converted into Class P shares and cancelled.
Kinder Morgan boosted its quarterly dividend to 38 cents a share
($1.52 per share annualized), up 19% from 32 cents ($1.28 per
share annualized) paid in the first quarter of 2012.
For 2013, management expects a hike of 6% in declared cash
distributions per unit compared to 2012.
The company's growth curve will be driven by its ownership of the
general partners of
Kinder Morgan Energy Partners, L.P.
) and El Paso Pipeline Partners, L.P. (EPB). The natural gas
assets acquired by Kinder Morgan through the El Paso Corporation
will further augment dividend growth.
Total expenses in the quarter were $2,040.0 million, representing
a 52.1% increase from $1,341.0 million spent in the first quarter
Operating income came in at $1,020.0 million, representing a
substantial 97.7% growth from the comparable quarter a year ago.
Operating margin was 33.3% compared with 27.8% in the year-ago
Cash available for dividend payments was $513.0 million in the
first quarter of 2013, an increase of 69.3% from $303.0 million
in the comparable quarter last year. As of Mar 31, 2013 Kinder
Morgan reported $164 million of cash and cash equivalents, while
long-term debt was $7,954 million.
Kinder Morgan holds a Zacks Rank #2 (short-term Buy rating).
There are other stocks in the oil and gas industry, like
Range Resources Corporation
Stone Energy Corporation
), which appear more promising and carry a Zacks Rank #1 (Strong