Kinder Morgan released its second quarter earnings report after closing bell tonight, posting earnings of 15 cents per share on $3.46 billion in revenue. Analysts had been expecting earnings of 19 cents per share on $3.96 billion in revenue.

Kinder Morgan

Key metrics from Kinder Morgan’s earnings report

The firm posted distributable cash flow before items of 50 cents per share, compared to 32 cents per share last year. Distributable cash flow before items was $1.095 billion, compared to $332 million in last year’s second quarter.

The main driver of that increase was the merger transactions which were completed in November. Net income fell from $497 million last year to $342 million this year. Management cited reason for the decline as higher DD&A expenses, interest expenses, and book taxes.

Kinder Morgan also increased its expansion and joint venture investment project backlog by $3.7 billion from the first quarter to $22 billion. The firm put almost $700 million of new projects into service since the release of its first quarter earnings report and removed about $600 million in projects, mostly in the CO2 segment due to delays in additional CO2 source and transportation projects.

Kinder Morgan also announced that its board of directors has increased its dividend 14% to 49 cents per share on a quarterly basis or $1.96 per share on an annualized basis.

Kinder Morgan’s earnings by segment

The firm’s Natural Gas Pipelines business saw earnings before DD&A and items rise 1% year over year to $965 million for the quarter. Transport volumes for natural gas rose 3% compared to last year. The firm’s CO2 business saw earnings before DD&A and items decline to $286 million. Management expects the segment to be under its 8% decline annual budget because of lower commodity prices.

Kinder Morgan’s Products Pipelines business saw earnings rise 32% year over year to $275 million. Management expects the segment to be higher than its previous 29% annual budget growth expectation.  The firm noted higher crude and condensed pipeline volumes.

The Terminals business saw earnings climb 19% to $271 million, with about 75% of that growth coming organically.

Shares of Kinder Morgan rose as much as 0.93% to $37.92 per share in after-hours trades.