Revenues decrease in 1Q15

Kinder Morgan Inc. (KMI) released its 1Q15 financial results on April 15. We’ll be taking a look at these latest quarterly result in this series. But first, let’s look at the company’s revenues and profits.

Kinder Morgan’s 1Q15 Revenues Decrease

In 1Q15, Kinder Morgan’s 1Q15 revenues decreased 11% to $3.59 billion, from $4.04 billion in 1Q14. No other major midstream companies have released 1Q15 financial results so far. In 4Q14, Spectra Energy (SE) increased its revenues by 2% compared to 4Q13. Williams Companies’ (WMB) revenues increased 3.5% in 4Q14. Energy Transfer Equity (ETE), another midstream energy giant, also increased 4Q14 earnings by 6.9%. Kinder Morgan is 4.6% of the Energy Select Sector SPDR ETF (XLE).

Kinder Morgan’s 1Q15 Revenues Decrease

Net income

Net income, including non-controlling interest, for 1Q15 decreased 24% to $459 million from $601 million recorded in 1Q14. Net income margin, or net income as a percentage of revenues, also fell to 12.8% in 1Q15 from 14.9% in the year-ago quarter.

However, net income attributable to the KMI shareholders increased to $469 million from $287 million recorded last year. In 1Q14, KMI’s net income included $314 million in income attributable to its non-controlling interest. In 1Q14, Kinder Morgan’s contributions from non-controlling interests consisted primarily of Kinder Morgan Energy Partners LP (KMP), El Paso Pipeline Partners (EPB), and Kinder Morgan Management, LLC (KMR). Kinder Morgan consolidated these subsidiaries on November 26, 2014.

Higher distributable cash flows

Distributable cash flow (or DCF) was up significantly to $1.24 billion year-over-year from $573 million, or 117% higher. The jump was attributable to the KMI merger transactions of KMI, EPB, and KMR. You can read the details of the merger in Market Realist’s Kinder Morgan consolidates: What investors need to know.

Kinder Morgan’s 1Q15 Revenues Decrease

Segmentwise change in EBDA

From 1Q14 to 1Q15, EBDA (earnings before depreciation and amortization) gained for all of Kinder Morgan’s segments except CO2 and Kinder Morgan Canada. In contrast to a 20% EBDA increase in Kinder Morgan’s Products Pipelines segment, the CO2 segment witnessed a 23% decline at the EBDA level compared to the year-ago quarter.

About Kinder Morgan

Kinder Morgan (KMI) has the largest natural gas network in North America. It transports natural gas, refined petroleum products, crude oil, condensate, and other products. It also transloads and stores petroleum products, ethanol and chemicals, coal, petroleum coke, and steel in its terminals. In addition, the company produces and transports CO2.

You can read an overview of Kinder Morgan’s assets in Market Realist’s Kinder Morgan is on steady footing despite the oil price slump.

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