Kinder Morgan Permian Highway Still on Track as Profit Falls
(Reuters) — U.S. pipeline operator Kinder Morgan told investors on Wednesday that its Permian Highway pipeline was still on track to begin service in 2021 even as quarterly profit fell 10% due to lower shipping volumes.
The company blamed the drop in pipeline flows of refined products and natural gas on a fall in energy demand due to the coronavirus crisis.
A pandemic-driven drop in energy demand has freed up some capacity at pipeline companies, forcing them to offer discounts to customers for moving crude, gas and refined products.
Kinder Morgan said earnings from its product pipelines, which move gasoline, jet fuel and diesel, fell 20% in the reported quarter.
The company also forecast fourth-quarter volume for refined products to be off by about 10% from a year earlier.
Market conditions are weighing on a number of planned expansion projects, Kinder Morgan said, adding that they were not needed at least in the near term.
It, however, reaffirmed that the 2.1 bcfd Permian Highway Pipeline was scheduled to begin service in early 2021.
Commenting on the ongoing consolidation drive in the oil and gas sector, Chief Executive Officer Steve Kean said the midstream segment stands to benefit from it as the industry would be left with stronger and well-capitalized players.
Net profit available to the company fell to $455 million, or 20 cents per share, in the third quarter ended Sept. 30 from $506 million, or 22 cents per share, a year earlier.
Excluding items, Kinder Morgan earned 21 cents per share, in line with Wall Street estimates, according to IBES data from Refinitiv.
Related News
Related News
- Energy Transfer Wins New York Court Ruling in $150 Million Pipeline Fraud Case
- $3 Billion Natural Gas Pipeline Expansion to Add 1.3 Bcf Capacity in Southeast Region
- Trump Puts Keystone XL Pipeline Back in Discussion, Though Revival Faces Developer Resistance
- Boardwalk Approves 110-Mile, 1.16 Bcf/d Mississippi Kosci Junction Pipeline Project
- Kinder Morgan Approves $1.4 Billion Mississippi Crossing Project to Boost Southeast Gas Supply
- Enbridge Should Rethink Old, Troubled Line 5 Pipeline, IEEFA Says
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Texas Oil Company Challenges $250 Million Insurance Collateral Demand for Pipeline, Offshore Operations
- Phillips 66 to Sell $865 Million Stake in 500-Mile Gulf Coast Express Pipeline to ArcLight
- NDT, Aramco to Launch 56-Inch Inspection Tool
Comments