Kinder Morgan Energy Partners LP (NYSE:KMP) released its numbers for the first quarter of 2012 today. Kinder Morgan Increased Quarterly Distributions by 5% to $1.20.
KMP expects to declare cash distributions of $4.98 per unit for 2012, an 8 percent increase over the $4.61 it distributed for 2011. KMP expects to generate cash flow in excess of distributions of approximately $70 million, consistent with its budget.
Over $490 million of the equity required for this investment program is expected to be funded by Kinder Morgan Management, LLC (NYSE: KMR) dividends.
KMR expects total distributions of $4.98 per share for 2012. The projections for KMP and KMR do not include any impact from the proposed acquisition of El Paso Corporation (NYSE: EP) by Kinder Morgan, Inc. (NYSE: KMI), which is expected to close in late May.
KMR also expects to declare distributions of $4.98 per share for 2012. The projections for KMP and KMR do not include any impact from the proposed acquisition of El Paso Corporation (NYSE: EP) byKinder Morgan, Inc. (NYSE: KMI), which is expected to close in late May this year.
Kinder Morgan is showing some promise with its recently headlining news of the company’s Trans-Mountain Oil Pipeline expansion. The plan, which is going to cost the company an estimated $5 billion, is set as a replacement for the $5.5 billion dollar Northern Gateway Sand Oil pipeline that was proposed by Enbridge.
The new pipeline expansion from Kinder Morgan is set to Edmonton to Vancouver. This expansion is also expected to up the number of barrels worth of oil coming through the pipeline from 300,000 barrels a day to a hefty 850,000 barrels a day. This expanded Trans-Mountain pipeline is sure to bring revenue to the company over a long term period of time due to its nearly tripled production capabilities.
As of right now, the pipeline is the only option for moving oil across such a large distance (from Alberta to the West Coast and Asia). This plan is higher than that of previously proposed plans to expand the pipeline at the cost of$3.8 million, and would up the expected production substantially as well (the old plan called for 600,000 barrels per day as opposed to the new plans 850,000 barrels per day). Also, the expanded pipeline would be bringing in revenue by 2017, if approved