KMI Earnings
By Tess Stynes
Kinder Morgan Inc. said its second-quarter revenue fell 9.2%, missing analysts's expectations, as continued weakness in its carbon-dioxide segment offset growth in the energy giant's other businesses.
The Houston company's shares, down 39% in the past 12 months, fell 3.1% to $21.40 in recent after-hours trading.
Revenue decreased to $3.14 billion from $3.46 billion a year earlier. Analysts polled by Thomson Reuters expected revenue of $3.45 billion.
The revenue decline was driven by a 15% decline at its carbon-dioxide segment, which has been under pressure in recent quarters because it has more exposure to low commodities prices than Kinder's other businesses.
Executive Chairman Richard Kinder said in prepared remarks Wednesday that the company took substantial steps toward improving its balance sheet in the latest quarter, touting the company's recent $1.47 billion joint venture deal with Southern Co. on the Southern Natural Gas pipeline system. Mr. Kinder also noted that investment firm Riverstone Investment Group LLC recently agreed to become a partner on its Utopia Pipeline Project.
Chief Executive Steve Kean said Kinder's current project backlog is $13.5 billion, down from $14.1 billion at the end of the first quarter, citing lower capital expenses stemming from the partnership with Riverstone on the Utopia project.
