From Kinder Morgan Energy Partners on Wednesday:
|Kinder Morgan Energy Partners Increases Quarterly Distribution to $1.36 Per Unit, up 5%|
Fourth Quarter DCF 28 Percent Higher Than Fourth Quarter 2012
Chairman and CEO
KMP reported fourth quarter distributable cash flow before certain items of $635 million, up 28 percent from
For the full year, KMP reported distributable cash flow before certain items of
Overview of Business Segments
The Natural Gas Pipelines business produced fourth quarter segment earnings before DD&A and certain items of
“Growth in this segment compared to both the fourth quarter and full year 2012 was driven by the midstream assets we acquired from Copano in May of 2013, including the other 50 percent of Eagle Ford Gathering which we did not already own, dropdowns from KMI (Tennessee Gas Pipeline and 50 percent of
While both the fourth quarter and 2013 earnings in this segment reflect the impact of the
“We continue to believe that natural gas is the future play for America 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 fourth quarter segment earnings before DD&A and certain items of
“Growth in this segment compared to both the fourth quarter and full year of 2012 was led by increased oil and NGL production, and higher prices,” Kinder said. “Combined gross oil production volumes averaged over 57 thousand barrels per day (MBbl/d) for the fourth quarter, which was led by significantly increased production at our large SACROC Unit, and also included 1.3 MBbl/d from the Goldsmith Unit we acquired in June. This represents more than a 7 percent increase in oil production versus the fourth quarter last year. The Snyder Gas Plant also produced superb results and set a record for NGL production with an average of 19.5 MBbl/d for the full year. Additionally, we set a CO2 production record in December in southwest
Oil production at the SACROC Unit was 32.3 MBbl/d in the fourth quarter, up almost 6 percent from 30.6 MBbl/d for the same period last year, and significantly higher than plan. SACROC volumes for the full year were also up approximately 6 percent from 2012. Production continued to be relatively stable at the Yates Field, which produced 20 MBbl/d in the fourth quarter versus 20.8 MBbl/d for the same period last year, and slightly above plan. Production at the Katz Field was 3.5 MBbl/d in the fourth quarter, almost doubling from 1.8 MBbl/d for the same period last year and slightly above plan. Fourth quarter production at Goldsmith was 1.3 MBbl/d, slightly below plan, but integration is going well. The average West Texas Intermediate (WTI) crude oil price for the full year 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 year, with all hedges allocated to oil, was
The Products Pipelines business produced fourth quarter segment earnings before DD&A and certain items of
“The increase in earnings compared to the fourth quarter of 2012 was driven by significantly higher volumes and associated revenues on the
Total refined products volumes for the fourth quarter were up over 6 percent compared to the same period last year, including Plantation. Segment gasoline volumes (including transported ethanol on the Central Florida Pipeline) were up over 8 percent, reflecting a boost in Plantation volumes due to allocations on a competing pipeline, a completed unit train project which increased
The Products Pipelines segment handled over 10.8 million barrels of biofuels (ethanol and biodiesel) in the fourth quarter, up 15 percent from the same period a year ago. The increase was driven by the
The Terminals business produced fourth quarter segment earnings before DD&A and certain items of
“Growth in this segment versus both the fourth quarter and full year of 2012 was almost all organic and was driven by higher earnings from our liquids facilities along the Houston Ship Channel (reflecting new and restructured contracts with higher rates and expansion projects coming online), an increase in export coal revenue (primarily from expansions at our IMT terminal in
For the fourth quarter, Terminals handled 18.3 million barrels of ethanol, up from 15.4 million barrels for the same period last year. Combined, the terminals and products pipelines business segments handled 28.4 million barrels of ethanol, up 16 percent from 24.5 million barrels for the fourth quarter of 2012. KMP continues to handle approximately 30 percent of the ethanol used in
As previously announced, 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 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
Due to strong interest for transportation of Eagle Ford crude and condensate to the Houston Ship Channel, KMP has secured long-term commitments for more than two-thirds of the 300,000 bpd of capacity on its KMCC pipeline, which includes the following projects currently under construction.
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.