From Kinder Morgan Energy Partners on Wednesday:
|Kinder Morgan Energy Partners Increases Quarterly Distribution to $1.35 Per Unit, up 7%|
Third Quarter DCF 22 Percent Higher Than Q3 2012
Chairman and CEO
KMP reported third quarter distributable cash flow before certain items of $554 million, up 22 percent from
For the first nine months of the year, KMP reported distributable cash flow before certain items of
Overview of Business Segments
The Natural Gas Pipelines business produced third quarter segment earnings before DD&A and certain items of
“We continue to be pleased with the assets that we acquired from both Copano and
While third quarter earnings in this segment reflect the impact of the
Overall segment transport volumes declined by about 6 percent versus the third quarter of 2012 due in large part to lower natural gas demand for electric power generation. Sales volumes on the
“We continue to be very bullish on the future of natural gas because it’s domestic, clean, abundant and very reasonably priced,” Kinder stated. “Our El Paso and Copano transactions have significantly increased our natural gas footprint in
The CO2 business produced third quarter segment earnings before DD&A and certain items of
“Growth in this segment compared to the third quarter of 2012 was led by increased oil and NGL production and higher prices,” Kinder said. “Including the recently acquired Goldsmith Landreth San Andres Unit in
A significant development in the third quarter was completion of the parallel compression portion of the Doe Canyon CO2 source field expansion ahead of schedule and on budget.
Oil production at the SACROC Unit was 29.6 MBbl/d in the third quarter, down slightly from 30 MBbl/d for the same period last year, and slightly below plan. Production continued to be relatively stable at the Yates Field, which produced 20.3 MBbl/d in the third quarter versus 20.6 MBbl/d for the same period last year, and slightly above plan. Production at the Katz Field was 2.7 MBbl/d in the third quarter, up 50 percent from 1.8 MBbl/d for the same period last year, but slightly below plan. Third quarter production at Goldsmith was 1.3 MBbl/d. The average West Texas Intermediate (WTI) crude oil price for the third quarter was
In this segment, KMP is exposed to commodity price risk, but that risk is partially mitigated by a long-term hedging strategy intended to generate more stable realized prices. The realized weighted average oil price per barrel for the third quarter, with all hedges allocated to oil, was
The Products Pipelines business produced third quarter segment earnings before DD&A and certain items of
“The increase in earnings compared to the third quarter of 2012 was driven by contributions from additional investments in the
Total refined products volumes for the third quarter were up 6.6 percent compared to the same period last year, including Plantation. Compared to the third quarter last year, overall segment gasoline volumes (including transported ethanol on the Central Florida Pipeline) were up 11.3 percent, reflecting a boost in Plantation volumes due to allocations on a competing pipeline, economic recovery on the
The Products Pipelines segment handled over 10.9 million barrels of biofuels (ethanol and biodiesel) in the third quarter, up 18 percent from the same period a year ago. The increase was driven by the
The Terminals business produced third quarter segment earnings before DD&A and certain items of
“Growth in this segment versus the same period last year was almost all organic and was driven by higher earnings from our
For the third quarter, Terminals handled 15.9 million barrels of ethanol, up from 15.7 million barrels for the same period last year. Combined, the terminals and products pipelines business segments handled 26.1 million barrels of ethanol, up 6 percent from 24.7 million barrels for the third quarter of 2012. KMP continues to handle approximately 30 percent of the ethanol used in
As previously announced, KMP increased its 2013 projections following the Copano Energy acquisition and 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 continuing robust demand for CO2, KMP continues to make progress on constructing expansion projects and pursuing opportunities designed to increase production and transportation of CO2 for use in enhanced oil recovery projects in the
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.