Kinder Morgan Inc.
) reported second-quarter 2014 earnings of 27 cents a share from
continuing operations, failing to meet the Zacks Consensus Estimate
of 28 cents. However, the quarterly earnings remained unchanged
from the year-earlier profit level.
Kinder Morgan Inc - Quarterly EPS (BNRI) |
Total revenue for the quarter increased 16.4% year over year to
$3,937.0 million. The reported figure surpassed our expectation of
Kinder Morgan boosted its quarterly dividend to 43 cents a share
($1.72 per share annualized), up 8% from 40 cents ($1.60 per share
annualized) paid in the second quarter of 2013.
For 2014, management expects a hike of 8% in declared cash
distributions per unit from 2013.
The company's growth curve will be driven by its ownership of the
general partners of
Kinder Morgan Energy Partners, L.P.
El Paso Pipeline Partners, L.P.
Total expenses in the quarter were $2,924.0 million, representing a
12.0% increase from $2,610.0 million spent in the second quarter of
Operating income came in at $1,013.0 million, representing 31.2%
growth from the comparable quarter a year ago. Operating margin was
25.7% compared with 22.8% in the year-ago quarter.
Cash available for dividend payments was $332.0 million in the
reported quarter, reflecting an increase of 13% from $294.0 million
in the comparable quarter last year. As of Jun 30, 2014 Kinder
Morgan reported $50 million of cash and cash equivalents, while
long-term debt was $8,088 million.
Kinder Morgan is the largest midstream and the fourth largest
energy company in North America. It owns an interest in or operates
approximately 80,000 miles of pipelines and 180 terminals.
Going forward, we believe the company will offer ample scope for
growth with approximately $17.0 billion in expansion and joint
venture investments. The company also anticipates significant
demand for natural gas transportation capacity to increase
transportation commitments with customers. Since Dec 1, 2013, it
has entered into approximately 3.5 billion cubic feet per day of
new firm transportation commitments with customers for terms
averaging about 15 years.
Kinder Morgan currently carries a Zacks Rank #2 (Buy). Another
energy player worth considering is
Niska Gas Storage Partners LLC
) with a Zacks Rank #1 (Strong Buy)
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KINDER MORG ENG (KMP): Free Stock Analysis
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