Kinder Morgan Energy Partners LP, the second-biggest U.S. pipeline company by market value, said third-quarter earnings rose on increased natural gas shipments on its expanded network.
Net income increased to $689 million from $405 million a year earlier, Houston-based Kinder Morgan said in a statement today. After payments made to Kinder Morgan Inc. (KMI:US), its parent company, Kinder Morgan earned 59 cents per unit, compared with a 6-cent loss a year ago.
“Our El Paso and Copano transactions have significantly increased our natural gas footprint in the United States, and KMP is well positioned to play a leading role in building and expanding infrastructure required to connect developing natural gas supplies to markets,” Chairman and Chief Executive Officer Richard Kinder said in the statement.
Kinder Morgan completed its $3.2 billion acquisition of Copano Energy LLC in May, giving it control of 6,900 miles (11,100 kilometers) of gas pipelines in Texas, Oklahoma and Wyoming. In September, Kinder Morgan and Valero Energy Corp. placed into service their 141-mile Parkway Pipeline, which can carry as much as 110,000 barrels a day of refined oil products to Collins, Mississippi, from Norco, Louisiana.
Earnings from the gas pipelines business unit, before certain items, jumped 59 percent to $608 million from a year ago, according to the statement. Revenue climbed 31 percent to $3.3 billion from $2.5 billion. Distributable cash flow, a measure of the company’s ability to pay distributions to its unitholders, rose 22 percent to $554 million, excluding certain items.
Enterprise Products Partners LP is the largest U.S. pipeline company.
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