Reports related to this article:
Project(s): View 3 related projects in PECWeb
Plant(s): View 3 related plants in PECWeb
en
Researched by Industrial Info Resources (Sugar Land, Texas--Kinder Morgan Energy Partners LP (NYSE:KMP) (KMP) (Houston, Texas), one of the largest pipeline and terminal companies in the U.S., saw a 23% earnings growth in the third quarter of 2013 when compared with the same period in 2012. In the third-quarter earnings webcast on October 16, Chief Executive Officer and Chairman Richard Kinder said that a good portion of the growth is due to recent acquisitions. Industrial Info is tracking $914 million in active projects involving Kinder Morgan Partners.
Third-quarter earnings for the natural gas pipeline segment were up to $608 million from $383 million in 2012, largely accredited to the acquisition of El Paso Corporation (NYSE:EPB) and Copano Energy (NASDAQ:CPNO), which was not fully integrated into KMP until May 2013.
"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," Kinder said.
In the CO2 segment, earnings were up 5% for the quarter, from $332 million to $349 million, when compared with 2012. Kinder explained that KMP expects to exceed the 5% annual growth due to "increased oil and NGL production and higher prices." KMP Chief Operating Officer Steve Kean attributed the growth to Katz and the recently acquired Goldsmith unit, which averaged 53,900 barrels per day in the quarter. This growth offset a decrease in production from the Yates Field.
The products pipeline segment showed a growth of 9% from 2012. With contributions from the segment rising, KMP expected a higher rate of growth; however, a California ruling denying a tax income allowance hindered the profits. Third-quarter earnings were at $202 million, up from $185 million in the third quarter of 2012. According to the press release, refined products and overall segment gasoline volumes were up 6.6% and 11.3%, respectively, from 2012.
Terminals saw third-quarter earnings of $199 million, a 7% increase from third-quarter 2012's earnings of $184 million. Contributing to these numbers are the Pasadena and Galena Park terminal complexes in Texas and the completed expansion of the IMT coal-handling facility in Louisiana. KMP forecast a lower annual growth than the originally predicted 12% due to a decrease in coal volumes.
KMP has almost completed the foundation work for the petroleum condensate splitter in Galena Park. The $360 million investment will include two separate units to split condensate in phase I, and the construction of storage tanks to hold 2 million barrels of product split at the facilities in phase II.
Due to the weakening Canadian dollar and the sale of the Express-Platte, the KMP Canada segment saw earnings decline to $44 million in 2013 from $56 million in 2012.
Kean revealed that many backlog projects will be in the natural gas pipeline segment. Multiple expansion projects will begin in the next few years, including the Eagle Ford Shale Condensate Pipeline, which will run from the Eagle Ford Shale to the Houston Ship Channel. Plans to expand the Kinder Morgan Texas and Mier-Montgomery pipelines are under way. The expansion includes additional compression and pipeline system modifications and requires an investment of $114 million. Three long-term transportation contracts have already been signed by customers in Mexico.
"U.S. gas exports are the best way to meet growing Mexican demand, and we believe that our assets are perhaps the best positioned to serve that demand," Kean said in a live webcast.
The backlog of projects increased from $14 billion to $14.4 billion in the third quarter, and $300 million in projects came online. Many projects are waiting to be added to the backlog, but KMP is waiting for signed commitments to officially add them to the list.
KMP, the largest midstream energy company in North America, owns or operates more than 54,000 miles of pipeline and 180 terminals. Its general partner, owned by Kinder Morgan Incorporated (NYSE:KMI), owns or operates more than 82,000 miles of pipelines and 180 terminals.
Industrial Info is tracking more than $1.5 billion in projects that involve KMP, including the $74 million Eagle Ford Shale Condensate Pipeline, which will run from the Eagle Ford Shale to the Houston Ship Channel, and the Galena Park splitter and storage tanks.
For more information, visit Industrial Info's North American Oil & Gas Transmission Project Database and North American Oil & Gas Terminal Project Database.
View Plant Profile - 1013149 3047881 3028405
View Project Report - 300138238 300059341 300109208
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Third-quarter earnings for the natural gas pipeline segment were up to $608 million from $383 million in 2012, largely accredited to the acquisition of El Paso Corporation (NYSE:EPB) and Copano Energy (NASDAQ:CPNO), which was not fully integrated into KMP until May 2013.
"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," Kinder said.
In the CO2 segment, earnings were up 5% for the quarter, from $332 million to $349 million, when compared with 2012. Kinder explained that KMP expects to exceed the 5% annual growth due to "increased oil and NGL production and higher prices." KMP Chief Operating Officer Steve Kean attributed the growth to Katz and the recently acquired Goldsmith unit, which averaged 53,900 barrels per day in the quarter. This growth offset a decrease in production from the Yates Field.
The products pipeline segment showed a growth of 9% from 2012. With contributions from the segment rising, KMP expected a higher rate of growth; however, a California ruling denying a tax income allowance hindered the profits. Third-quarter earnings were at $202 million, up from $185 million in the third quarter of 2012. According to the press release, refined products and overall segment gasoline volumes were up 6.6% and 11.3%, respectively, from 2012.
Terminals saw third-quarter earnings of $199 million, a 7% increase from third-quarter 2012's earnings of $184 million. Contributing to these numbers are the Pasadena and Galena Park terminal complexes in Texas and the completed expansion of the IMT coal-handling facility in Louisiana. KMP forecast a lower annual growth than the originally predicted 12% due to a decrease in coal volumes.
KMP has almost completed the foundation work for the petroleum condensate splitter in Galena Park. The $360 million investment will include two separate units to split condensate in phase I, and the construction of storage tanks to hold 2 million barrels of product split at the facilities in phase II.
Due to the weakening Canadian dollar and the sale of the Express-Platte, the KMP Canada segment saw earnings decline to $44 million in 2013 from $56 million in 2012.
Kean revealed that many backlog projects will be in the natural gas pipeline segment. Multiple expansion projects will begin in the next few years, including the Eagle Ford Shale Condensate Pipeline, which will run from the Eagle Ford Shale to the Houston Ship Channel. Plans to expand the Kinder Morgan Texas and Mier-Montgomery pipelines are under way. The expansion includes additional compression and pipeline system modifications and requires an investment of $114 million. Three long-term transportation contracts have already been signed by customers in Mexico.
"U.S. gas exports are the best way to meet growing Mexican demand, and we believe that our assets are perhaps the best positioned to serve that demand," Kean said in a live webcast.
The backlog of projects increased from $14 billion to $14.4 billion in the third quarter, and $300 million in projects came online. Many projects are waiting to be added to the backlog, but KMP is waiting for signed commitments to officially add them to the list.
KMP, the largest midstream energy company in North America, owns or operates more than 54,000 miles of pipeline and 180 terminals. Its general partner, owned by Kinder Morgan Incorporated (NYSE:KMI), owns or operates more than 82,000 miles of pipelines and 180 terminals.
Industrial Info is tracking more than $1.5 billion in projects that involve KMP, including the $74 million Eagle Ford Shale Condensate Pipeline, which will run from the Eagle Ford Shale to the Houston Ship Channel, and the Galena Park splitter and storage tanks.
For more information, visit Industrial Info's North American Oil & Gas Transmission Project Database and North American Oil & Gas Terminal Project Database.
View Plant Profile - 1013149 3047881 3028405
View Project Report - 300138238 300059341 300109208
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
