Summary
Kinder Morgan, Inc. (KMI) reported its financial results for the third quarter and the first nine months of 2011. The company experienced significant revenue growth, particularly in its Products Pipelines and Terminals segments, driven by higher volumes and expanded capacity. Net income attributable to Kinder Morgan, Inc. saw a substantial increase to $151.5 million for the third quarter, compared to $10.6 million in the prior year's quarter, and a net income of $438.6 million for the nine months ended September 30, 2011, compared to a net loss of $104.3 million in the same period last year. This performance was bolstered by operational improvements, strategic acquisitions, and effective cost management. Notably, the company announced a significant definitive agreement to acquire El Paso Corporation, a move expected to create a larger, more integrated energy infrastructure company with an enterprise value of approximately $94 billion. KMI's financial health remains robust, supported by strong operating cash flows and disciplined capital allocation. The company also provided an update on its ongoing litigation matters, most of which are not expected to have a material adverse impact on its financial position. The El Paso acquisition represents a significant strategic step for Kinder Morgan, aimed at expanding its natural gas pipeline network and overall market presence. Investors should monitor the progress of this acquisition and its integration as a key factor for future growth and value creation.
Financial Highlights
43 data points| Revenue | $2.12B |
| Operating Expenses | $1.74B |
| Operating Income | $381.00M |
| Interest Expense | $176.00M |
| Net Income | $152.00M |
Key Highlights
- 1Total revenues increased to $2,206.0 million for Q3 2011, up from $2,088.2 million in Q3 2010.
- 2Net income attributable to Kinder Morgan, Inc. dramatically increased to $151.5 million in Q3 2011 from $10.6 million in Q3 2010.
- 3For the nine months ended September 30, 2011, net income attributable to Kinder Morgan, Inc. was $438.6 million, a significant turnaround from a net loss of $104.3 million in the comparable period of 2010.
- 4The company announced a definitive agreement to acquire El Paso Corporation for approximately $38 billion, creating a combined entity valued at $94 billion.
- 5Operating cash flow for the nine months ended September 30, 2011, was $1,587.7 million, an increase from $1,218.5 million in the same period of 2010.
- 6Kinder Morgan underwent an initial public offering (IPO) on February 16, 2011, raising approximately $3.3 billion.