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Researched by Industrial Info Resources (Sugar Land, Texas)--A year after it slashed jobs and saw profits plummet, midstream giant Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas) announced that it would boost its dividend significantly, launch a $2 billion stock buyback and continue to ride the rally in U.S. oil and gas production. The company's backlog grew $500 million to $12.2 billion after it added projects in its natural gas and carbon dioxide segments. Industrial Info is tracking more than $21.7 billion in active projects involving Kinder Morgan.
Revenues were reported to be $3.37 billion, a 7.12% increase from second-quarter 2016, while net income stood at $337 million, a 1.2% increase. These results were ahead of the company's guidance, putting it on track to hit its full-year targets.
Kinder Morgan's natural gas pipeline segment reported earnings of $905 million, a 6% drop from second-quarter 2016 that was attributed to last year's sale of a 50% stake in the Southern Natural Gas system to Southern Company (NYSE:SO) (Atlanta, Georgia). But the segment saw a 3% increase in volumes, following the completion of expansion projects on the Tennessee Gas Pipeline and Elba Express Pipeline.
The 200-mile Elba Express pipeline extends from the Elba Island LNG terminal near Savannah, Georgia, to the Transco pipeline in Hart County, Georgia, and Anderson County, South Carolina. At the terminal, Kinder Morgan is building the $2.5 billion first phase of a liquefaction plant, which is expected to convert 210 million standard cubic feet per day of natural gas, sourced from shale formations, into 2.5 million tons per year of LNG for export to Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands) facilities abroad. It is set to be completed early next year. For more information, see Industrial Info's project report and March 2, 2017, article - Kinder Morgan Sells Stake in Elba Island LNG Facility, Looks to Trans Mountain Joint Venture.
Kinder Morgan is expected to wrap up construction later this summer on a $25 million compressor station near Louisville, Georgia, which will support the pipeline and terminal. For more information, see Industrial Info's project report.
One of the largest pipeline projects to begin construction during the quarter is the $350 million Utopia Pipeline project, running 241 miles from Harrison County to Fulton County, Ohio, and carrying up to 50,000 barrels per day (BBL/d) of refined or fractionated natural gas liquids (NGL), including ethane and propane. At least two other parts of the Utopia project are set to begin construction in the coming years: a $25 million pump station near Wauseon, Ohio, and a $25 million pump station near Cadiz, Ohio, both of which will support the pipeline with electric-drive pump packages. For more information, see Industrial Info's project reports on the Utopia pipeline, the Waueson station and the Cadiz station.
In Kinder Morgan's terminals segment, earnings narrowly improved to $299 million, a 1% gain, as two new tankers at liquids terminals began operations during the quarter.
Growth capex this year should be around $3.1 billion, down from the company's prior forecast of $3.2 billion. None of that is expected to go toward Kinder Morgan Canada Limited (TSX:KML) (KML) (Calgary, Alberta), which consists of all of the Kinder Morgan Canadian pipelines and terminals assets and is expected to be a self-funding entity. One of KML's most anticipated projects, the Trans Mountain expansion in British Columbia, secured "acceptable financing" during the quarter but is unlikely to see any major construction this year.
Industrial Info is tracking more than $6 billion in active projects involving Trans Mountain. Among those projects set to begin construction within the next year are a $100 million pump station expansion and $100 million in tank additions at Edmonton Crude Oil Pump Station near Sherwood Park, Alberta; and the $90 million expansion of Black Pines Crude Oil Pump Station near Kamloops and the $80 million expansion of Kamloops Pump Station near Vancouver, British Columbia.
The expanded stations will support Trans Mountain's capacity increase from 300,000 to 890,000 BBL/d of crude oil sourced from the Alberta oil sands; the tanks additions in Edmonton are expected to boost storage capacity by 1.32 million to 9.25 million barrels. For more information, see Industrial Info's project reports on the Edmonton station expansion and tank additions, and the Black Pines and Kamloops station expansions.
"Commencing this fall, the bulk of the work is going to be preparation for major construction commencing next year," said Steve Kean, the chief executive officer of Kinder Morgan, in a quarterly earnings conference call. One factor nearly unmentioned in the call: a new provincial government in British Columbia that opposes Trans Mountain's expansion.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Revenues were reported to be $3.37 billion, a 7.12% increase from second-quarter 2016, while net income stood at $337 million, a 1.2% increase. These results were ahead of the company's guidance, putting it on track to hit its full-year targets.
Kinder Morgan's natural gas pipeline segment reported earnings of $905 million, a 6% drop from second-quarter 2016 that was attributed to last year's sale of a 50% stake in the Southern Natural Gas system to Southern Company (NYSE:SO) (Atlanta, Georgia). But the segment saw a 3% increase in volumes, following the completion of expansion projects on the Tennessee Gas Pipeline and Elba Express Pipeline.
The 200-mile Elba Express pipeline extends from the Elba Island LNG terminal near Savannah, Georgia, to the Transco pipeline in Hart County, Georgia, and Anderson County, South Carolina. At the terminal, Kinder Morgan is building the $2.5 billion first phase of a liquefaction plant, which is expected to convert 210 million standard cubic feet per day of natural gas, sourced from shale formations, into 2.5 million tons per year of LNG for export to Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands) facilities abroad. It is set to be completed early next year. For more information, see Industrial Info's project report and March 2, 2017, article - Kinder Morgan Sells Stake in Elba Island LNG Facility, Looks to Trans Mountain Joint Venture.
Kinder Morgan is expected to wrap up construction later this summer on a $25 million compressor station near Louisville, Georgia, which will support the pipeline and terminal. For more information, see Industrial Info's project report.
One of the largest pipeline projects to begin construction during the quarter is the $350 million Utopia Pipeline project, running 241 miles from Harrison County to Fulton County, Ohio, and carrying up to 50,000 barrels per day (BBL/d) of refined or fractionated natural gas liquids (NGL), including ethane and propane. At least two other parts of the Utopia project are set to begin construction in the coming years: a $25 million pump station near Wauseon, Ohio, and a $25 million pump station near Cadiz, Ohio, both of which will support the pipeline with electric-drive pump packages. For more information, see Industrial Info's project reports on the Utopia pipeline, the Waueson station and the Cadiz station.
In Kinder Morgan's terminals segment, earnings narrowly improved to $299 million, a 1% gain, as two new tankers at liquids terminals began operations during the quarter.
Growth capex this year should be around $3.1 billion, down from the company's prior forecast of $3.2 billion. None of that is expected to go toward Kinder Morgan Canada Limited (TSX:KML) (KML) (Calgary, Alberta), which consists of all of the Kinder Morgan Canadian pipelines and terminals assets and is expected to be a self-funding entity. One of KML's most anticipated projects, the Trans Mountain expansion in British Columbia, secured "acceptable financing" during the quarter but is unlikely to see any major construction this year.
Industrial Info is tracking more than $6 billion in active projects involving Trans Mountain. Among those projects set to begin construction within the next year are a $100 million pump station expansion and $100 million in tank additions at Edmonton Crude Oil Pump Station near Sherwood Park, Alberta; and the $90 million expansion of Black Pines Crude Oil Pump Station near Kamloops and the $80 million expansion of Kamloops Pump Station near Vancouver, British Columbia.
The expanded stations will support Trans Mountain's capacity increase from 300,000 to 890,000 BBL/d of crude oil sourced from the Alberta oil sands; the tanks additions in Edmonton are expected to boost storage capacity by 1.32 million to 9.25 million barrels. For more information, see Industrial Info's project reports on the Edmonton station expansion and tank additions, and the Black Pines and Kamloops station expansions.
"Commencing this fall, the bulk of the work is going to be preparation for major construction commencing next year," said Steve Kean, the chief executive officer of Kinder Morgan, in a quarterly earnings conference call. One factor nearly unmentioned in the call: a new provincial government in British Columbia that opposes Trans Mountain's expansion.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
