By Jeffrey T. Lewis
Pipeline operator Kinder Morgan Inc. reported a net loss in the second quarter that widened from a year earlier after it booked a non-cash impairment of $1.6 billion related to expected lower volumes and rates on contract renewals at a natural-gas processing facility.
The Houston-based company said it had a loss attributable to the company of $757 million, compared with a loss of $637 million in the same quarter a year earlier, while revenue rose to $3.15 billion from $2.56 billion in the second quarter of 2020. Kinder Morgan reported a basic and diluted loss per share of $0.34, compared with a loss of $0.28 in the year-earlier quarter.
The natural-gas, gasoline and crude-oil transporting company announced a $0.27 per share dividend for the quarter, an increase of 3% from the second quarter of 2020. Kinder Morgan said it expects to generate net income attributable to the company of $1.7 billion this year, and to declare dividends of $1.08 per share, also an increase of 3% from a year earlier.
The company said it foresees generating $5.4 billion of distributable cash flow this year and adjusted earnings before interest, taxes, depreciation and amortization of $7.9 billion, both of which would meet or exceed the top end of the range announced last quarter. The company expects to end this year with a net debt to adjusted EBITDA ratio of 4.0.
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(END) Dow Jones Newswires