Summary
Kinder Morgan, Inc. (KMI) reported its annual results for the period ending February 21, 2012, highlighting a significant development: the pending acquisition of El Paso Corporation (EP) for approximately $38 billion. This transformative deal, expected to close in the second quarter of 2012, would create a North American energy infrastructure giant with a substantial natural gas pipeline network and significant midstream assets. The company's operations, primarily conducted through its subsidiary Kinder Morgan Energy Partners, L.P. (KMP), involve extensive pipeline networks and terminals for natural gas, refined petroleum products, and carbon dioxide. In addition to the EP acquisition, KMI's 2011 operations showed growth across its various segments, with notable investments in infrastructure expansions and strategic acquisitions, particularly within KMP's Products Pipelines, Natural Gas Pipelines, and Terminals businesses. The company also successfully completed its initial public offering in February 2011, marking a transition to a publicly traded corporation. Financially, KMI's reported net income attributable to Kinder Morgan, Inc. was $594.4 million for 2011, a substantial improvement from a net loss in the prior year, reflecting a solid operational performance alongside strategic growth initiatives.
Financial Highlights
50 data points| Revenue | $9.97B |
| Cost of Revenue | $3.06B |
| Gross Profit | $6.92B |
| Operating Expenses | $7.38B |
| Operating Income | $2.59B |
| Interest Expense | $1.43B |
| Net Income | $315.00M |
Key Highlights
- 1Kinder Morgan announced a pending acquisition of El Paso Corporation for approximately $38 billion, expected to close in Q2 2012, significantly expanding its natural gas pipeline and midstream operations.
- 2The company completed its initial public offering (IPO) in February 2011, transitioning to a publicly traded corporation.
- 3KMI's net income attributable to the company was $594.4 million for 2011, a significant turnaround from a net loss in 2010.
- 4Operations through KMP showed continued investment in pipeline expansions and terminal upgrades across its Products Pipelines, Natural Gas Pipelines, and Terminals segments.
- 5KMP's capital expenditures for expansion programs were substantial, with approximately $1.7 billion budgeted for 2012, indicating a strong focus on growth.
- 6The company generates a significant portion of its cash flow from KMP, highlighting the strategic importance of this subsidiary.
- 7Kinder Morgan maintains a dividend policy, with anticipated dividends of $1.35 per share for 2012, reflecting a commitment to returning value to shareholders.