Summary
Kinder Morgan, Inc. (KMI) reported a net loss of $126 million, or $(0.15) per Class P share, for the three months ended June 30, 2012. This contrasts sharply with the net income of $132 million, or $0.19 per share, reported in the same period of 2011. The significant shift is largely attributable to substantial expenses related to the recently completed acquisition of El Paso Corporation (EP), including acquisition-related costs, financing expenses, and a non-cash loss from the remeasurement of KMP's FTC Natural Gas Pipelines disposal group to fair value. Total revenues increased to $2.17 billion from $1.95 billion year-over-year, driven by growth across most segments, particularly Natural Gas Pipelines and Terminals. The company's financial position has been significantly impacted by the El Paso acquisition, which closed in late May 2012. This strategic move substantially increased the company's assets and long-term debt. While the integration of El Paso presents significant opportunities for growth and synergies, it also introduces complexities and integration risks that investors will need to monitor. The company's forward-looking statements indicate expectations for increased dividends and continued growth, contingent on successful integration and favorable market conditions.
Financial Highlights
47 data points| Revenue | $2.17B |
| Cost of Revenue | $637.00M |
| Gross Profit | $1.53B |
| Operating Expenses | $1.91B |
| Operating Income | $260.00M |
| Interest Expense | $291.00M |
| Net Income | -$126.00M |
Key Highlights
- 1Reported a net loss of $126 million for Q2 2012, a significant decline from a net income of $132 million in Q2 2011, primarily due to El Paso acquisition costs.
- 2Total revenues increased by 10.9% to $2.17 billion in Q2 2012 compared to $1.95 billion in Q2 2011.
- 3Completed the acquisition of El Paso Corporation (EP) on May 25, 2012, for approximately $23 billion, significantly expanding its natural gas pipeline network.
- 4Total assets grew substantially to $69.6 billion as of June 30, 2012, from $30.7 billion at the end of 2011, driven by the EP acquisition.
- 5Long-term debt increased significantly to $33.8 billion as of June 30, 2012, from $14.4 billion at the end of 2011, largely due to financing the EP acquisition.
- 6Announced the "drop-down" of Tennessee Gas Pipeline Company and El Paso Natural Gas Company assets to KMP for approximately $6.22 billion.
- 7Declared a quarterly dividend of $0.35 per share, an increase from $0.30 per share in the prior year's comparable quarter.