10-QPeriod: Q1 FY2013

KINDER MORGAN, INC. Quarterly Report for Q1 Ended Mar 31, 2013

Filed May 3, 2013For Securities:KMIEP-PC

Summary

Kinder Morgan, Inc. (KMI) reported strong financial results for the first quarter of 2013, with net income attributable to Kinder Morgan, Inc. soaring to $292 million, a significant increase from $21 million in the same period of 2012. This growth was largely driven by the successful integration of assets acquired from El Paso Corporation (EP) in May 2012 and a favorable one-time gain on the sale of investments in the Express pipeline system. Total revenues for the quarter reached $3.06 billion, up substantially from $1.86 billion in the prior year, reflecting both organic growth across its pipeline and terminal segments and the contribution from acquired assets. The company's operating income also more than doubled, indicating improved operational efficiency. Despite increased interest expenses related to its debt, Kinder Morgan demonstrated robust cash flow generation, enabling it to increase dividends and repurchase warrants, signaling confidence in its future performance and commitment to returning value to shareholders.

Financial Highlights

45 data points
Beta

Revenue

$3.06B

68.3% Gross Margin

Net Income

$292.00M

9.5% Net Margin

Total Assets

$68.31B

Cash & Equivalents

$1.11B

Free Cash Flow

$169.00M

Financial Statements
Beta
Revenue$3.06B
Cost of Revenue$970.00M
Gross Profit$2.09B
Operating Expenses$2.04B
Operating Income$1.02B
Interest Expense$402.00M
Net Income$292.00M

Key Highlights

  • 1Net income attributable to Kinder Morgan, Inc. significantly increased to $292 million in Q1 2013, up from $21 million in Q1 2012.
  • 2Total revenues grew substantially to $3.06 billion in Q1 2013, compared to $1.86 billion in Q1 2012, driven by acquired assets and segment performance.
  • 3Operating income more than doubled, reaching $1.02 billion in Q1 2013 from $516 million in Q1 2012, indicating improved profitability.
  • 4The company recognized a significant gain of $225 million from the sale of its investments in the Express pipeline system.
  • 5Kinder Morgan's cash flow from operations increased to $767 million in Q1 2013, up from $560 million in Q1 2012, supporting operational and financial flexibility.
  • 6Dividends per common share increased to $0.38 in Q1 2013, up from $0.32 in Q1 2012, reflecting the company's commitment to returning capital to shareholders.
  • 7The company's debt levels remain substantial, with total debt outstanding at $31.94 billion as of March 31, 2013.

Frequently Asked Questions

The substantial increase in net income was primarily driven by the integration of assets acquired from El Paso Corporation in May 2012 and a one-time gain of $225 million from the sale of investments in the Express pipeline system.

Kinder Morgan experienced a significant increase in total revenues, rising to $3.06 billion in the first quarter of 2013 from $1.86 billion in the same period of 2012. This growth was fueled by contributions from acquired assets and improved performance across its business segments.

Kinder Morgan increased its quarterly cash dividend to $0.38 per share for the first quarter of 2013, up from $0.32 in the prior year. The company expects to declare dividends of $1.57 per share for the full year 2013, representing a 12% increase over 2012, driven by expected strong performance from its subsidiaries.

Kinder Morgan maintains a significant debt load, with total debt outstanding at $31.94 billion as of March 31, 2013. The company used proceeds from recent drop-down transactions to pay down a portion of its acquisition debt, and it continues to manage its debt through various financing activities.