Kinder Morgan’s Pipeline Performance Helps Boost Quarterly Profit 20%
(Reuters) — Kinder Morgan Inc. reported a 20.3% rise in quarterly adjusted profit on Wednesday as higher demand for jet fuel boosted the U.S pipeline operator's volumes, with the company also benefiting from an increase in natural gas pipeline performance.
Kinder Morgan received a boost from bottled-up travel demand, resulting in a 19% rise in jet fuel volumes transported in the second quarter.
The company said adjusted earnings for its natural gas pipelines were up 6% at $1.13 billion in the reported quarter.
"Our Natural Gas Pipelines segment continues to see strong demand for the extensive firm transport and storage services we offer, as well as favorable contract renewals," Steve Kean, CEO, said.
Demand for U.S. LNG in Europe has led to higher exports of the super cooled fuel as the European Union tries to cut its dependence on Russian energy.
Extreme weather also boosted natural gas demand for power in several parts of the U.S. as homes and businesses crank up their air conditioners to escape a brutal heat wave.
Kinder Morgan also said it was continuing to evaluate an expansion of its Gulf Coast Express system to increase natural gas deliveries from the Permian Basin to South Texas markets.
The Houston, Texas-based company posted adjusted profit of $621 million, or 27 cents per share, for the quarter ended June 30, from $516 million, or 23 cents per share, a year earlier. Analysts estimated 27 cents, according to Refinitiv.
Smaller, Gulf-Coast focused pipeline and storage company Martin Midstream Partners raised its full-year profit forecast on Wednesday, saying it expects current refinery utilization levels to remain strong through the rest of the year.
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