(RTTNews) - Wednesday, pipeline transportation and energy storage company Kinder Morgan Energy Partners LP (KMP: News ) reported a decrease in third-quarter profit, hurt primarily by a sharp decline in revenues. Kinder Morgan said all of its business segments outperformed their 2008 third quarter results with the exception of CO2 business, which fell about 2% short of its third quarter results from last year due to o significantly lower crude oil prices. The company declared a quarterly cash distribution of $1.05 per common unit.

The Houston, Texas-based company reported a net income attributable to Kinder Morgan Energy Partners or KMEP for the third quarter of $395.5 million, up from $329.8 million in the corresponding quarter last year.

Net income attributable to KMEP before certain items was $351.1 million versus $345.0 million for the same period last year. Certain items resulted in a net gain of almost $9 million for the quarter, primarily reflecting insurance reimbursements in the company's Terminals business.

Net income attributable to non-controlling interest for the quarter was $4.2 million compared to $3.1 million in the third quarter of 2008.

Limited Partners' interest in the net income attributable to KMEP for the quarter declined marginally to $123.3 million or $0.43 per unit from $124.2 million or $0.48 per unit in the similar period of fiscal 2008.

On average, fifteen analysts polled by Thomson Reuters expected the company to earn $0.37 per limited partner unit for the quarter. Analysts estimates typically exclude special items.
Revenues for the quarter fell sharply to $1.66 billion from $3.23 billion in the prior-year quarter. Seven analysts had a revenue consensus of $2.17 billion for the third quarter.

Chairman and CEO Richard Kinder said, "KMP had a very strong third quarter despite the ongoing impact from lingering economic headwinds that we have been experiencing all year. We generated distributable cash flow of $1.12 per unit, substantially higher than our budget for the quarter, which resulted in excess coverage over our quarterly distribution of approximately $19 million."

Segment wise, Products Pipelines business reported first-quarter earnings before DD&A and certain items of $166.7 million, up 19% from $140.6 million in the comparable period of 2008.

For the quarter, Natural Gas Pipelines business earnings before DD&A and certain items was $94.8 million compared to $177.2 million in the similar period last year.

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