Revenue Up at Kinder Morgan Energy Partners, Beating Expectations

Kinder Morgan and Kinder Morgan Energy Partners post solid fourth quarter results. Here's what you need to know.

Jan 15, 2014 at 6:18PM

Kinder Morgan (NYSE:KMI) and Kinder Morgan Energy Partners (NYSE:KMP) released their fourth-quarter and full-year earnings today, kicking off earnings season for the midstream industry -- and the numbers looked good.

Kinder Morgan Energy Partners reported revenue of $3.47 billion for the quarter and $12.53 billion for the full year. Both numbers beat analyst expectations, and shares were up in after-hours trading. Distributable cash flow, an important metric for master limited partnerships, was also up significantly, climbing to $635 million for the quarter, and $2.24 billion for the full year. Management increased the distribution 5% to $1.36 for the quarter, bringing the full-year payout for 2013 to $5.33. It's important to note that Kinder Morgan did achieve coverage for its distributions for the full year.

Driving the success was the massive growth in the natural gas pipeline segment. Segment earnings for this unit grew 40% year over year, primarily because of dropdowns and contributions related to Kinder Morgan's major acquisitions of El Paso and Copano energy.

All of the partnership's other business segments also outperformed last year's numbers, with the exception of Kinder Morgan Canada, which was affected by the sale of its Express-Platte system earlier this year.

As the general partner of KMP, Kinder Morgan benefits when the MLP performs well, and that's exactly what's happening now. It declared a quarterly dividend of $0.41 per share, resulting in a full-year payout of $1.60 per share. Cash available to pay dividends grew 21% from $1.4 billion in 2012 to $1.7 billion in 2013, eclipsing management's estimate of $1.63 billion.

Investors should note that KMI repurchased 5.2 million shares of its common stock in the fourth quarter for about $172 million. It has $94 million remaining in its share and warrant repurchase program.

Fool contributor Aimee Duffy has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Kinder Morgan. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers