Kinder Morgan Third-Quarter Profit Rises on Higher Oil Prices
Kinder Morgan Energy Partners LP, the biggest U.S. pipeline operator, said third-quarter profit rose as higher crude prices boosted revenue at its oil-producing unit.
Net income increased to $379 million in the quarter from $215 million a year ago, Houston-based Kinder Morgan said in a statement today. After payments to Kinder Morgan Inc., its parent company, Kinder Morgan lost 6 cents per partnership unit, compared with a loss of 25 cents per unit in the same quarter of 2011.
Distributable cash flow, a measure of the company’s ability to make payments to its unit holders, rose to $455 million from $394.1 million a year ago.
Kinder Morgan was expected to earn more money from its carbon dioxide division, which produces oil from fields in Texas, Tanjila Shafi, an analyst with Standard & Poor’s Equity Services, said in an interview before the earnings were released. The price of West Texas Intermediate crude averaged $92.20 a barrel during the third quarter, compared with $89.54 in 2011.
Kinder Morgan Inc. bought El Paso Corp. in May for $22.8 billion. Kinder Morgan took non-cash writedowns totaling $634 million during the first two quarters of 2012 to account for the value of pipelines it agreed to sell to gain regulatory approval the El Paso purchase.
Kinder Morgan rose 0.4 percent to $85.96 at the close in New York.
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