Kinder Morgan 1Q Profit Boosted By Texas Winter Storm
By Micah Maidenberg
Kinder Morgan Inc. said the dramatic winter storm that upended
power markets and business operations in Texas lifted its earnings
for the first quarter.
The energy infrastructure firm that owns stakes or operates
83,000 miles of pipelines and 144 terminals on Wednesday said it
earned net income attributable to the company of $1.41 billion,
compared with a loss of $306 million in the year-earlier period,
when it recorded impairment charges.
Profit rose to 62 cents from a loss of 14 cents on a per-share
basis. After adjustments, Kinder's earnings amounted to 60 cents a
share for the January through March stretch.
Revenue jumped to $5.21 billion from $3.11 billion.
Analysts expected the company to earn 24 cents a share in
adjusted profit on $3.03 billion in revenue.
Kinder said gains in net income and distributable cash flow were
primarily tied to the winter storm in Texas and are mostly
"We realized greater margins on KMI's Texas intrastate pipeline
systems resulting from the temporary supply and demand imbalances
and substantial spot market price volatility caused by the storm,"
the company said.
In addition, the storm curtailed oil production, providing a
gain for Kinder's carbon-dioxide business, which produces,
transports and markets carbon dioxide for use in oil recovery
"Our storage assets performed exceptionally well, allowing us to
deliver gas into the market throughout the storm. These storage
withdrawals, along with gas we purchased before and during the
event, enabled us to deliver significant volumes of gas at
contractual or prevailing prices," Chief Executive Officer Steve
Kean said in a statement.
Overall, Kinder said natural gas transport volumes were down 3%
year over year in the first quarter.
Write to Micah Maidenberg at email@example.com
(END) Dow Jones Newswires
April 21, 2021 16:37 ET (20:37 GMT)
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