Summary
Kinder Morgan, Inc. (KMI) reported strong results for the third quarter of 2012, largely driven by the recent acquisition of El Paso Corporation (EP) on May 25, 2012. The acquisition significantly expanded KMI's natural gas pipeline network and overall operational scale. For the three months ended September 30, 2012, KMI reported net income attributable to Kinder Morgan, Inc. of $200 million, or $0.19 per diluted share, an increase from $152 million, or $0.21 per diluted share, in the prior year's quarter. Total revenues increased to $2.87 billion from $2.12 billion in the same period last year, benefiting from the inclusion of El Paso's operations. The nine-month period ending September 30, 2012, however, showed a net loss of $61 million, or a loss of $0.06 per diluted share, compared to a net income of $367 million, or $0.52 per diluted share, in the prior year. This year-over-year decline for the nine-month period was primarily impacted by significant expenses related to the EP acquisition and a substantial non-cash loss associated with the disposal of KMP's FTC Natural Gas Pipelines. Despite the nine-month net loss, the company's operational performance in the third quarter was robust, showcasing the integration of El Paso's assets and continued strength in its core business segments.
Financial Highlights
46 data points| Revenue | $2.87B |
| Cost of Revenue | $854.00M |
| Gross Profit | $2.02B |
| Operating Expenses | $2.02B |
| Operating Income | $852.00M |
| Interest Expense | $523.00M |
| Net Income | $200.00M |
Key Highlights
- 1Net income attributable to Kinder Morgan, Inc. increased to $200 million in Q3 2012 from $152 million in Q3 2011.
- 2Total revenues rose to $2.87 billion in Q3 2012 from $2.12 billion in Q3 2011, largely due to the acquisition of El Paso Corporation.
- 3The nine-month period showed a net loss of $61 million compared to a net income of $367 million in the prior year, impacted by acquisition costs and discontinued operations.
- 4The company's Natural Gas Pipelines segment saw a significant EBDA increase due to the inclusion of El Paso's assets.
- 5KMI announced a dividend of $0.36 per common share for the third quarter of 2012.
- 6Debt levels increased significantly, with total debt outstanding reaching $33.7 billion as of September 30, 2012, up from $16.2 billion at year-end 2011, primarily due to financing the El Paso acquisition.
- 7Goodwill increased substantially to $23.6 billion from $5.1 billion, reflecting the goodwill recognized from the El Paso acquisition.