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Kinder Morgan Posts 10.2% Drop in Revenue, Announces $0.125 Dividend

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Kinder Morgan Inc. (KMI - Free Report) just released its third quarter fiscal 2016 financial results, posting earnings of 16 cents per share and revenue of $3.33 billion. KMI is a Zacks Rank #3 (Hold), and is down 0.82% to $20.54 per share in after-hours trading shortly after its earnings report was released.

Beat earnings estimates. The company posted earnings of 16 cents per share, topping the Zacks Consensus Estimate of 15 cents per share. This number excludes 26 cents from non-recurring items.

Missed revenue estimates. The company saw revenue figures of $3.33 billion, lagging behind our consensus estimate of $3.368 billion and falling over 10% year-over-year.

Reported net loss available to common stockholders of $227 million. Distributable cash flow came in at $1.081 billion, down from the year ago period. The decrease in distributable cash flow for the quarter was attributable to lower contributions from the CO2 segment primarily due to lower commodity prices.

Investors should note that Kinder Morgan’s Natural Gas Pipelines segment’s performance for Q3 was impacted by the sale of a 50% interest in SNG. Excluding this sale, the Natural Gas Pipeline segment’s performance was in-line with the same period during 2015.

In addition to its Q3 results, KMI also announced a cash dividend of $0.125 per share for the quarter payable on November 12, 2016.

“We are pleased with our operational performance for the quarter despite continued weak market conditions in our industry. Our performance, adjusted for the SNG transaction, remains consistent with our guidance provided since April,” said Richard D. Kinder, executive chairman.

Here’s a graph that looks at Kinder Morgan’s price, consensus, and EPS surprise:

KINDER MORGAN Price, Consensus and EPS Surprise

KINDER MORGAN Price, Consensus and EPS Surprise | KINDER MORGAN Quote

Kinder Morgan, Inc. is engaged in energy transportation and storage in North America. The Company handles energy products like natural gas, refined petroleum products, crude oil, ethanol, coal and carbon dioxide (CO2). The Company operates natural gas pipelines in the Rocky Mountains, the Midwest and Texas; refined petroleum products pipeline in North America; terminals for the storage of petroleum products and chemicals and CO2 pipelines and oil producing fields. Kinder Morgan is headquartered in Houston, Texas.

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