Energy transporter Kinder Morgan Energy Partners LP (KMP) reported Wednesday a profit for the fourth quarter that increased from last year, reflecting realized better prices and revenues growth amid contributions from the KinderHawk acquisition and the Fayetteville Express Pipeline. Both adjusted earnings per share and quarterly revenues missed analysts' expectations.
"KMP had a solid fourth quarter and a very successful year overall. We will distribute $4.61 per unit for the full year, exceeding our annual budget of $4.60 per unit and representing an increase of almost 5 percent from the 2010 distribution per unit. We also generated cash in excess of our distribution target of approximately $21 million," Chairman and CEO Richard Kinder said in a statement.
The Houston, Texas-based company reported net income attributable to the company of $475.0 million for the fourth quarter, up from $409.0 million a year earlier. Excluding special items, adjusted income grew to $487.4 million from $421.9 million in the year-ago quarter.
Limited Partners' net income for the quarter increased to $171.0 million or $0.51 per unit from $133.1 million or $0.52 per unit last year. Excluding special items, adjusted income was $183.3 million or $0.55 per unit, higher than $145.9 million or $0.46 per unit in the prior-year quarter.
On average, 14 analysts polled by Thomson Reuters expected earnings of $0.61 per unit for the fourth quarter. Analysts' estimates typically exclude special items.
Kinder Morgan's revenues for the quarter improved to $2.0 billion from $1.93 billion in the same quarter last year, but missed eight Wall Street analysts' consensus estimate of $2.38 billion.
During the quarter, total refined product volumes decreased 2.5 percent to $66.6 million barrels or MMBbl from 171.0 MMBbl a year earlier. Natural Gas Liquids volumes fell to 6.3 MMBbl from 6.9 MMBbl. Ethanol volume edged down to 7.4 MMBbl from 7.5 MMBbl a year ago.
Natural Gas Pipeline transport volume increased 11 percent to 728.9 billion cubic feet or Bcf from 658.6 Bcf last year. Natural Gas sales volume grew to 206.1 Bcf from last year's 195.8 Bcf.
During the quarter, realized weighted average oil price was $70.33 per barrel, up from $60.21 per barrel in the previous year. Realized weighted average NGL price improved to $65.84 per barrel from $53.88 per barrel last year.
Kinder Morgan also announced an 3 percent increase in its quarterly cash distribution per common unit to $1.16, payable on February 14 to unit holders of record on January 31, 2012.
For fiscal 2011, net income declined to $1.26 billion from $1.32 billion in the previous year. Excluding special items, adjusted income was $1.76 billion, up from $1.52 billion last year.
Limited Partners' interest in net income for the full year was $82.8 million or $0.25 per unit, sharply lower than $431.4 million or $1.40 per unit last year.
Revenues for the full year grew to $8.21 billion from $8.07 billion in the previous year.
Street was looking for full-year 2011 earnings of $1.80 per unit on revenues of $8.50 billion.
Looking ahead, the company said it continues to expect to declare cash distributions of $4.98 per unit for 2012, an 8 percent increase over the $4.61 per unit it will distribute for 2011.
The management also expects to invest about $1.7 billion in expansions and small acquisitions in 2012.
KMP closed Wednesday's regular trading session at $85.50, up $0.79 or 0.93% on a volume of 0.65 million shares.
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