From Kinder Morgan on Wednesday:
HOUSTON--(BUSINESS WIRE)--Jul. 16, 2014--
Chairman and CEO
KMP reported second quarter distributable cash flow before certain items of $561 million, up 11 percent from
For the first six months of the year, KMP reported distributable cash flow before certain items of
Overview of Business Segments
The Natural Gas Pipelines business produced second quarter segment earnings before DD&A and certain items of
“This segment produced strong results and the increase in earnings compared to the second quarter last year was led by outstanding performance at TGP and contributions from the
Market conditions continue to support the view that natural gas is the future play for America’s energy needs, with certain industry experts projecting gas demand increases of about 35 percent over the next 10 years from approximately 74 to 100 Bcf/d. “This increase in natural gas supply and demand is driving the need for transport capacity from the Marcellus and
The CO2 business produced second quarter segment earnings before DD&A and certain items of
“Growth in this segment compared to the second quarter of 2013 was led by another strong performance at our large SACROC Unit, which reported a 7 percent increase in oil production and a 3 percent increase in NGL sales volumes,” Kinder said. “Higher CO2 sales and transport volumes, improved production at our
Combined gross oil production volumes averaged 56.9 thousand barrels per day (MBbl/d) for the second quarter, up 6 percent versus the same period last year (up 5 percent without Goldsmith). SACROC produced 32.2 MBbl/d versus 30 MBbl/d for the second quarter of 2013. The average
Record quarterly CO2 production in southwest
The Products Pipelines business produced second quarter segment earnings before DD&A and certain items of
“Products Pipelines had a very good quarter,” Kinder said. “The increase in earnings compared to the second quarter of 2013 was driven by higher volumes on the KMCC pipeline, as we saw a significant ramp up of Eagle Ford condensate volumes on KMCC in May and June, and higher volumes on our Pacific system and in our transmix business.” Segment earnings were impacted by a decline in
Total refined products volumes for the second quarter were up 6.5 percent compared to the same period last year (up 4.4 percent without Parkway). Volumes on Plantation and Parkway increased by almost 19 percent versus the second quarter last year, as demand in the Southeast and Mid-Atlantic for refined products from the
Products Pipelines handled over 11 million barrels of biofuels (ethanol and biodiesel) in the second quarter, up 7 percent from the same period a year ago. The increase was driven by volume growth at our
The Terminals business produced second quarter segment earnings before DD&A and certain items of
“Approximately 60 percent of the growth in this segment versus the second quarter of 2013 was organic, with the remainder coming from acquisitions,” Kinder said. “The increase in earnings was driven by strong performance at our liquids facilities, predominantly driven by expansions at the
For the second quarter, Terminals handled 18.6 million barrels of ethanol, up significantly from 15.6 million barrels for the same period last year. Combined, the Terminals and Products Pipelines business segments handled 29 million barrels of ethanol, up 15 percent from 25.3 million barrels for the second quarter of 2013. KMP currently handles approximately 33 percent of the ethanol used in
KMP expects to declare cash distributions of
KMP’s expectations assume an average WTI crude oil price of approximately
Natural Gas Pipelines
In response to the industry’s ongoing strong demand for CO2, KMP continues to make progress on various expansion projects designed to increase production and transportation of CO2 for use in enhanced oil recovery (EOR) projects in the
In the second quarter, KMP and KMR sold common units and shares valued at approximately
Shareholders of KMR will also receive a
Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.
Rig Count Interactive Map by Baker Hughes, an energy services company.
Shale Sheet Fracking, a Youngstown Vindicator blog.
The Ohio Environmental Council, a statewide eco-group based in Columbus.
Earthjustice, a national eco-group.
People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.
Concerned Citizens of Medina County, a grass-roots group.
No Frack Ohio, a Columbus-based grass-roots group.
Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.
Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.
Allegheny Front, environmental public radio for Western Pennsylvania.