Delaware (State or other jurisdiction of incorporation) | 1-11234 (Commission File Number) | 76-0380342 (I.R.S. Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition |
Item 9.01. | Financial Statements and Exhibits |
(c) | Exhibits The exhibit set forth below is being furnished pursuant to Item 2.02. |
Exhibit Number | Description |
99.1 | Press release of Kinder Morgan Energy Partners, L.P. issued October 16, 2013. |
Kinder Morgan Energy Partners, L.P. |
By: | Kinder Morgan G.P., Inc., | ||
its general partner |
By: | Kinder Morgan Management, LLC, | |||
its delegate |
Date: October 16, 2013 | By: | /s/ Kimberly A. Dang | ||||
Kimberly A. Dang Vice President |
Exhibit Number | Description | |
99.1 | Press release of Kinder Morgan Energy Partners, L.P. issued October 16, 2013. |
KMP – 3Q Earnings | Page 2 |
KMP – 3Q Earnings | Page 3 |
KMP – 3Q Earnings | Page 4 |
KMP – 3Q Earnings | Page 5 |
KMP – 3Q Earnings | Page 6 |
• | On Sept. 30, TGP submitted a request to the Federal Energy Regulatory Commission (FERC) to place the Northeast Upgrade Project into service Nov. 1. The approximately $480 million, fully subscribed project will boost capacity on TGP’s system by approximately 636,000 dekatherms and provide additional takeaway capacity from the Marcellus shale area. |
• | Following a binding open season, TGP awarded 300,000 dekatherms per day of capacity to a subsidiary of Mitsui & Company for a 20-year, firm service precedent agreement to transport natural gas earmarked for the proposed Cameron LNG liquefaction facility at Hackberry, La., which is slated to begin LNG exports in the second half of 2017. Earlier this year, TGP announced it signed a binding, 20-year firm transportation precedent agreement with anchor shipper Mitsubishi Corporation to ship 600,000 dekatherms per day of natural gas for the |
KMP – 3Q Earnings | Page 7 |
• | In Pennsylvania, TGP’s approximately $80 million Marcellus Pooling Point Project is expected to begin service Nov. 1, 2013. The fully subscribed project will provide about 240,000 dekatherms per day of additional firm Marcellus transportation capacity. |
• | In September, the FERC issued a certificate of public convenience and necessity for TGP’s $83 million Rose Lake expansion project in northeastern Pennsylvania. The project is scheduled to be in service Nov. 1, 2014, and will provide long-term firm transportation service for two shippers that have fully subscribed 230,000 dekatherms per day of firm capacity. |
• | Field survey work began in September for TGP’s proposed and fully subscribed approximately $77 million Connecticut expansion project. The project will provide 72,000 dekatherms per day of additional long-term capacity to two local distribution customers. The project includes approximately 13 miles of new pipeline loops along the TGP system in Connecticut, New York and Massachusetts, and the planned acquisition of an existing pipeline lateral from another operator. Pending regulatory approvals, the expansion is expected to be operational Nov. 1, 2016. |
• | On Sept. 1, TGP closed the $32 million sale to Kinetica Partners of an offshore pipeline system in the Gulf of Mexico. |
• | KMP continues to invest capital and explore opportunities to transport more natural gas to Mexico. The company will invest approximately $72 million in the proposed Sierrita Pipeline Project, which would include construction of a 60-mile pipeline that would extend from the EPNG pipeline system, near Tucson, Ariz., to the Mexican border at Sasabe, Ariz. The 36-inch Sierrita Pipeline will have approximately 200,000 dekatherms per day of capacity and an affiliate of PEMEX previously executed a 25-year agreement for all of the capacity. KMP owns 35 percent of and will construct and operate the approximately $204 million Sierrita Pipeline. Subject to regulatory approvals, the pipeline is expected to be in service in September 2014. |
• | KMP is investing approximately $114 million for additional compression and pipeline system modifications to expand the Kinder Morgan Texas and Mier-Monterrey pipelines. The project is supported by three customers in Mexico that entered into long-term firm transportation contracts for in excess of 200,000 dekatherms per day of capacity, which will be phased in from 2014 through 2016. |
• | Construction began this month for the Willcox Lateral II expansion on EPNG, which will assist an existing customer to meet electric power plant fuel load requirements in Mexico. A Jan. 1, 2014, in-service date is anticipated. The combined capital cost for Willcox I (placed in service in April of this year) and Wilcox II is approximately $37 million. |
KMP – 3Q Earnings | Page 8 |
• | In addition to the completed $255 million Doe Canyon Unit source field project referenced above, construction is underway on KMP’s $210 million Yellow Jacket Central Facility expansion at the McElmo Dome CO2 source field in southwest Colorado. The first of four planned expansion projects is expected to be operational by November 2014. These expansions will increase CO2 production from 1.1 Bcf/d to 1.23 Bcf/d and maintain it at that level. |
• | Work also continues on the expansion of KMP’s Wink Pipeline System, which transports crude from the company’s West Texas oil fields to Western Refining Company’s facility in El Paso, Texas. The company is in the process of increasing Wink’s capacity from 132,000 bpd to 145,000 bpd to meet expected higher future throughput requirements at Western’s refinery, and will coordinate the final completion of the project with Western’s maintenance schedule. |
• | KMP completed construction and placed into service the approximately 141-mile, 16-inch Parkway Pipeline in September. Parkway, a 50-50 joint venture between KMP and Valero Energy Corp, transports refined petroleum products from a refinery in Norco, La., to an existing petroleum transportation hub in Collins, Miss., which is owned by Plantation Pipe Line Company. The initial capacity of the approximately $260 million pipeline is 110,000 bpd and can be expanded to 200,000 bpd. |
• | Kinder Morgan has completed more than 50 percent of the pipeline modifications for its approximately $260 million Cochin Reversal project to move light condensate from Kankakee County, Ill., to existing terminal facilities near Fort Saskatchewan, Alberta. Construction also is underway on the 1 million barrel storage capacity Kankakee tank farm and associated pipeline facilities where Cochin will interconnect with the Explorer Pipeline. The project remains on schedule for a July 2014 in-service date. |
• | Double Eagle Pipeline, a joint venture between KMP and Magellan Midstream Partners, began service on the 37-mile eastern leg of its pipeline system moving condensate from Karnes County, Texas, to Magellan’s terminal in Corpus Christi. The pipeline’s 85-mile western leg began transporting condensate from LaSalle County to Magellan’s Corpus Christi, Texas, terminal at the end of August. The initial capacity of the pipeline is 100,000 bpd, but can be expanded to 150,000 bpd. |
• | Foundation work for KMP’s petroleum condensate processing facility located near its Galena Park terminal on the Houston Ship Channel is almost complete. Supported by a long-term, fee-based agreement with BP North America for all 100,000 bpd of throughput capacity at the facility, KMP’s approximately $360 million investment includes building two separate units to split condensate into its various components and constructing storage tanks for the almost 2 million barrels of product being split at the facility. The first phase of the splitter is |
KMP – 3Q Earnings | Page 9 |
• | KMP is nearing completion on its approximately $101 million Sweeny Lateral pipeline project to transport Eagle Ford crude and condensate from the company’s KMCC pipeline to Phillips 66’s Sweeny Refinery in Brazoria County, Texas. Approximately 90 percent of construction on the 27-mile, 12‑inch diameter pipeline is finished with remaining tie-in work currently underway at the refinery. KMP expects to complete work on two 120,000-barrel storage tanks and seven truck offloading racks at the company’s DeWitt County station in the coming months, as well as finish construction of new pumps and two tanks with approximately 120,000 barrels of crude/condensate capacity at the company’s Wharton County pump station. KMP anticipates the entire system will be operational in the first quarter of 2014. |
• | KMP has entered into an agreement with a large Eagle Ford Shale producer to extend the KMCC pipeline farther into the Eagle Ford Shale in South Texas. KMP will invest approximately $74 million to build an 18-mile, 24-inch diameter lateral pipeline northwest from its DeWitt Station to a new facility in Gonzales County, where KMP will construct 300,000 barrels of storage, a pipeline pump station and truck offloading facilities. The lateral will have a capacity of 300,000 bpd and will enable Kinder Morgan to batch Eagle Ford crude and condensate from the new Gonzales Station via KMCC to its delivery points on the Houston Ship Channel and/or the soon to be completed Sweeny Lateral pipeline serving the Phillips 66 Sweeny Refinery in Brazoria County, Texas. |
• | Construction has started on receipt tanks for product that will be transported via KMP’s approximately $109 million expansion of its KMCC pipeline. The project, supported by a long-term contract with ConocoPhillips, will extend the 178-mile pipeline 31 miles west from the company’s DeWitt County station to ConocoPhillips’ central delivery facility in Helena, Texas. The receipt tanks and a truck unloading facility are being built at a new KMCC facility adjacent to ConocoPhillips’ delivery facility. The company expects to complete the project in the third quarter of 2014. |
• | Commercial operations began this month on phase one at the 185-acre Battleground Oil Specialty Terminal (BOSTCO) facility on the Houston Ship Channel. Approximately 20 of the 51 storage tanks being built during phase one construction are being placed into service during October and the remaining tanks will come online during the next six months. A two-berth ship dock and 12 barge berths are also scheduled to be in service this month. Phase two construction is also underway and includes building an additional 900,000 barrels of storage capacity. BOSTCO expects phase two to begin service in the fourth quarter of 2014. The almost $500 million BOSTCO terminal is fully subscribed for a total capacity of 7.1 million barrels and is able to handle ultra low sulfur diesel, residual fuels and other black oil terminal services. Discussions are taking place with customers for possible further expansions of BOSTCO. |
• | KMP is preparing a 42-acre site along the Houston Ship Channel for construction of a new ship dock to handle ocean going vessels and 1.5 million barrels of liquids storage tanks. The |
KMP – 3Q Earnings | Page 10 |
• | KMP previously announced the investment of approximately $106 million to purchase 20 acres adjacent to the company’s Pasadena terminal, build nine new storage tanks with a capacity of 1.2 million barrels at its Galena Park terminal supported by long-term agreements, and construct a new barge dock that is expected to help relieve current congestion on the Houston Ship Channel. The new barge dock will provide additional capacity to handle up to 50 barges per month. The tanks are expected to be in service by the end of 2014 and the barge dock is slated for a fourth quarter 2015 completion. |
• | KMP’s Deeprock Development joint venture is moving forward to expand its crude terminal in Cushing, Okla., to accommodate more oil from a customer. Tallgrass Energy Partners recently received FERC approval to convert the Pony Express Pipeline, which delivers to the Deeprock facility, to crude service. The project scope has been increased to include a total of nine (six new and three existing), 250,000-barrel storage tanks and two new pipelines with connectivity to five Cushing area destinations. Following completion, the terminal will handle up to 350,000 bpd. KMP owns 51 percent of the joint venture project and will contribute $26 million of the approximately $52 million project. |
• | In August, KMP completed and commissioned for service a petcoke terminal at BP’s Whiting Refinery in Hammond, Ind. The terminal, supported by a 20-year contract with BP, is expected to handle approximately 2.2 million tons of petcoke for the first three years. KMP invested approximately $62 million in the facility, which includes nine conveyors, a 30,000-ton storage barn and a fleet of 190 railcars to move approximately 6,000 tons of petcoke per day. |
• | Construction is complete on two of the 10 tanks being built during phase one of the approximately 3.6 million barrel expansion at KMP’s Edmonton Terminal in Strathcona County, Alberta. The remaining tanks will come online through February 2014. Construction continues on phase two of the expansion which consists of adding an incremental 1.2 million barrels of storage capacity. KMP expects to complete phase two in late 2014. The approximately $438 million project is supported by long-term contracts with major producers and refiners. When completed, total storage capacity at the Edmonton facility will be approximately 9.5 million barrels, including the existing Trans Mountain system facility and the North 40 merchant terminal. |
• | KMP has entered into a 50-50 joint venture with Keyera Corp. to build a crude oil rail loading facility in Edmonton, Alberta, called the Alberta Crude Terminal. When complete, the Alberta Crude Terminal will be able to accept crude oil streams handled at Kinder Morgan’s North 40 Terminal for loading and delivery via rail to refineries anywhere in North America. The terminal, which will be operated by Keyera, will have 20 loading spots capable of loading approximately 40,000 bpd of crude oil into tank cars and will be served by both Canadian National Railway and Canadian Pacific Railway. KMP will invest |
KMP – 3Q Earnings | Page 11 |
• | In August, the Phase 1 expansion of KMP’s IMT facility was completed. The nearly $83 million project added approximately 800,000 tons of ground storage to the terminal, which is jointly owned with AEP. The operational in-service date also marked the commencement of two long-term coal handling agreements that supported the capital project. |
• | KMP received approval of commercial terms from the National Energy Board (NEB) in the second quarter for its proposed expansion of the Trans Mountain pipeline system. The $5.4 billion investment will increase capacity on the pipeline to 890,000 bpd. The expansion will complete the twinning of the existing Trans Mountain pipeline system from Strathcona County, Alberta, to Burnaby, British Columbia. A detailed project description was filed with the NEB in May, after which the NEB established the issues to be considered in the proceeding and the process for intervention. Trans Mountain plans to file the Facilities Application with the NEB in December of 2013 for authorization to build and operate the necessary facilities for the proposed expansion. The application will include the environmental, socio-economic, First Nations consultations, landowner and public consultation, and engineering components, and initiate a comprehensive regulatory and public review process. If approvals are received as planned, the expansion is expected to be operational in late 2017. |
• | KMP and KMR sold common units and shares valued at approximately $259 million under their at-the-market programs during the third quarter, bringing the total to approximately $844 million for the year. KMP also issued $1.75 billion in senior notes in July. |
KMP – 3Q Earnings | Page 12 |
KMP – 3Q Earnings | Page 13 |
KMP – 3Q Earnings | Page 14 |
Larry Pierce | Investor Relations | |
Media Relations | (713) 369-9490 | |
(713) 369-9407 | km_ir@kindermorgan.com | |
larry_pierce@kindermorgan.com | www.kindermorgan.com |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues | $ | 3,279 | $ | 2,497 | $ | 8,957 | $ | 6,355 | |||||||
Costs, expenses and other | |||||||||||||||
Operating expenses | 1,887 | 1,301 | 5,073 | 3,194 | |||||||||||
Depreciation, depletion and amortization | 377 | 319 | 1,062 | 834 | |||||||||||
General and administrative | 136 | 146 | 433 | 424 | |||||||||||
Taxes, other than income taxes | 71 | 70 | 220 | 179 | |||||||||||
Other expense (income) | (59 | ) | (8 | ) | (83 | ) | (28 | ) | |||||||
2,412 | 1,828 | 6,705 | 4,603 | ||||||||||||
Operating income | 867 | 669 | 2,252 | 1,752 | |||||||||||
Other income (expense) | |||||||||||||||
Earnings from equity investments | 68 | 74 | 225 | 207 | |||||||||||
Amortization of excess cost of equity investments | (3 | ) | (1 | ) | (7 | ) | (5 | ) | |||||||
Interest, net | (219 | ) | (194 | ) | (632 | ) | (485 | ) | |||||||
(Loss) gain on sale of investments in Express | (1 | ) | — | 224 | — | ||||||||||
Gain on remeasurement of net assets to fair value | — | — | 558 | — | |||||||||||
Other, net | 5 | 6 | 28 | 16 | |||||||||||
Income before income taxes | 717 | 554 | 2,648 | 1,485 | |||||||||||
Income taxes | (20 | ) | (15 | ) | (147 | ) | (49 | ) | |||||||
Income from continuing operations | 697 | 539 | 2,501 | 1,436 | |||||||||||
Income from discontinued operations | — | 47 | — | 145 | |||||||||||
Loss on remeasurement of discontinued operations to fair value | — | (178 | ) | (2 | ) | (827 | ) | ||||||||
Loss from discontinued operations | — | (131 | ) | (2 | ) | (682 | ) | ||||||||
Net income | 697 | 408 | 2,499 | 754 | |||||||||||
Net income attributable to Noncontrolling Interests | (8 | ) | (3 | ) | (27 | ) | (11 | ) | |||||||
Net income attributable to KMP | $ | 689 | $ | 405 | $ | 2,472 | $ | 743 | |||||||
Calculation of Limited Partners’ interest in net income (loss) attributable to KMP | |||||||||||||||
Income from continuing operations attributable to KMP | $ | 689 | $ | 535 | $ | 2,474 | $ | 1,418 | |||||||
Less: Pre-acquisition earnings and severance allocated to General Partner | 2 | (62 | ) | (11 | ) | (41 | ) | ||||||||
Less: General Partner's remaining interest | (436 | ) | (367 | ) | (1,260 | ) | (1,024 | ) | |||||||
Limited Partners' interest | 255 | 106 | 1,203 | 353 | |||||||||||
Add: Limited Partners' interest in discontinued operations | — | (128 | ) | (2 | ) | (668 | ) | ||||||||
Limited Partners' interest in net income | $ | 255 | $ | (22 | ) | $ | 1,201 | $ | (315 | ) | |||||
Limited Partners' net income (loss) per unit: | |||||||||||||||
Income from continuing operations | $ | 0.59 | $ | 0.30 | $ | 2.95 | $ | 1.02 | |||||||
Loss from discontinued operations | $ | — | $ | (0.36 | ) | $ | (0.01 | ) | $ | (1.93 | ) | ||||
Net income (loss) | $ | 0.59 | $ | (0.06 | ) | $ | 2.94 | $ | (0.91 | ) | |||||
Weighted average units outstanding | 435 | 356 | 408 | 345 | |||||||||||
Declared distribution / unit | $ | 1.35 | $ | 1.26 | $ | 3.97 | $ | 3.69 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Segment earnings before DD&A and amortization of excess investments | |||||||||||||||
Natural Gas Pipelines | $ | 635 | $ | 490 | $ | 2,315 | $ | 1,001 | |||||||
CO2 | 340 | 327 | 1,040 | 988 | |||||||||||
Products Pipelines | 202 | 150 | 399 | 492 | |||||||||||
Terminals | 217 | 183 | 610 | 565 | |||||||||||
Kinder Morgan Canada | 43 | 56 | 286 | 158 | |||||||||||
$ | 1,437 | $ | 1,206 | $ | 4,650 | $ | 3,204 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Segment earnings before DD&A and amortization of excess investments (1) | |||||||||||||||
Natural Gas Pipelines (2) | $ | 608 | $ | 383 | $ | 1,671 | $ | 900 | |||||||
CO2 | 349 | 332 | 1,040 | 989 | |||||||||||
Products Pipelines | 202 | 185 | 581 | 527 | |||||||||||
Terminals | 199 | 184 | 577 | 554 | |||||||||||
Kinder Morgan Canada | 44 | 56 | 146 | 158 | |||||||||||
Total | $ | 1,402 | $ | 1,140 | $ | 4,015 | $ | 3,128 | |||||||
Segment DD&A and amortization of excess investments | |||||||||||||||
Natural Gas Pipelines (3) | $ | 157 | $ | 72 | $ | 397 | $ | 166 | |||||||
CO2 | 122 | 110 | 356 | 326 | |||||||||||
Products Pipelines | 34 | 32 | 100 | 90 | |||||||||||
Terminals | 53 | 51 | 156 | 153 | |||||||||||
Kinder Morgan Canada | 14 | 14 | 41 | 42 | |||||||||||
Total | $ | 380 | $ | 279 | $ | 1,050 | $ | 777 | |||||||
Segment earnings contribution | |||||||||||||||
Natural Gas Pipelines (1) (3) | $ | 451 | $ | 311 | $ | 1,274 | $ | 734 | |||||||
CO2 (1) | 227 | 222 | 684 | 663 | |||||||||||
Products Pipelines (1) | 168 | 153 | 481 | 437 | |||||||||||
Terminals (1) | 146 | 133 | 421 | 401 | |||||||||||
Kinder Morgan Canada (1) | 30 | 42 | 105 | 116 | |||||||||||
General and administrative (1) (4) | (137 | ) | (115 | ) | (394 | ) | (324 | ) | |||||||
Interest, net (1) (5) | (221 | ) | (172 | ) | (625 | ) | (452 | ) | |||||||
Net income before certain items | 664 | 574 | 1,946 | 1,575 | |||||||||||
Certain items | |||||||||||||||
Gain (loss) on remeasurement of net assets to fair value | — | (178 | ) | 558 | (827 | ) | |||||||||
Acquisition costs (6) | (1 | ) | (3 | ) | (33 | ) | (3 | ) | |||||||
Legal and environmental reserves (7) | — | (43 | ) | (177 | ) | (43 | ) | ||||||||
Drop down asset groups' pre-acquisition earnings (8) | — | 61 | 19 | 40 | |||||||||||
Mark to market, ineffectiveness, and amortization of certain hedges (9) | (18 | ) | (5 | ) | (10 | ) | (8 | ) | |||||||
Insurance deductible, casualty losses and reimbursements (10) | 19 | (2 | ) | 33 | 10 | ||||||||||
Gain (loss) on sale of assets, net of income tax expense | 35 | 8 | 169 | 15 | |||||||||||
Severance (11) | (2 | ) | (4 | ) | (8 | ) | (4 | ) | |||||||
Other (12) | — | — | 2 | (1 | ) | ||||||||||
Sub-total certain items | 33 | (166 | ) | 553 | (821 | ) | |||||||||
Net income | $ | 697 | $ | 408 | $ | 2,499 | $ | 754 | |||||||
Less: Pre-acquisition earnings and severance allocated to General Partner | 2 | (62 | ) | (11 | ) | (41 | ) | ||||||||
Less: General Partner's remaining interest in net income (13) | (436 | ) | (365 | ) | (1,260 | ) | (1,017 | ) | |||||||
Less: Noncontrolling Interests in net income | (8 | ) | (3 | ) | (27 | ) | (11 | ) | |||||||
Limited Partners’ net income (loss) | $ | 255 | $ | (22 | ) | $ | 1,201 | $ | (315 | ) | |||||
Net income before certain items | $ | 664 | $ | 574 | $ | 1,946 | $ | 1,575 | |||||||
Less: Noncontrolling Interest before certain items | (8 | ) | (5 | ) | (22 | ) | (16 | ) | |||||||
Net income attributable to KMP before certain items | 656 | 569 | 1,924 | 1,559 | |||||||||||
Less: General Partner’s interest in net income before certain items (13) | (436 | ) | (367 | ) | (1,255 | ) | (1,025 | ) | |||||||
Limited Partners’ net income before certain items | 220 | 202 | 669 | 534 | |||||||||||
Depreciation, depletion and amortization (14) | 400 | 331 | 1,117 | 913 | |||||||||||
Book (cash) taxes - net | 22 | — | 34 | 7 | |||||||||||
Express & Endeavor contribution | 4 | — | (1 | ) | 3 | ||||||||||
Sustaining capital expenditures (15) | (92 | ) | (78 | ) | (210 | ) | (174 | ) | |||||||
DCF before certain items | $ | 554 | $ | 455 | $ | 1,609 | $ | 1,283 | |||||||
Net income / unit before certain items | $ | 0.51 | $ | 0.57 | $ | 1.64 | $ | 1.55 | |||||||
DCF / unit before certain items | $ | 1.27 | $ | 1.28 | $ | 3.94 | $ | 3.72 | |||||||
Weighted average units outstanding | 435 | 356 | 408 | 345 |
(1) | Excludes certain items: |
(2) | Includes $47 in 3Q and $152 in YTD 2012 related to assets classified for GAAP purposes as discontinued operations. |
(3) | Includes $7 in YTD 2012 of DD&A expense related to assets classified for GAAP purposes as discontinued operations. Excludes $41 in 3Q and $69 in YTD 2012 and $19 in YTD 2013 of DD&A expense from our drop down asset groups for periods prior to our acquisition dates of August 1, 2012 and March 1, 2013, which are included in certain items above. |
(4) | General and administrative expense includes income tax that is not allocable to the segments: 3Q 2012 - $2, YTD 2012 - $7, 3Q 2013 - $4, YTD 2013 - $10. Excludes $28 in 3Q and $101 in YTD 2012 and $9 in YTD 2013 of G&A expense from our drop down asset groups for periods prior to our acquisition dates of August 1, 2012 and March 1, 2013, which are included in certain items above. |
(5) | Interest expense excludes interest income that is allocable to the segments: 3Q 2012 - $5, YTD 2012 - $13, 3Q 2013 - $1, YTD 2013 - $5. Excludes $26 in 3Q and $45 in YTD 2012 and $15 in YTD 2013 of interest expense from our drop down asset groups for periods prior to our acquisition dates of August 1, 2012 and March 1, 2013, which are included in certain items above. |
(6) | Acquisition expense items related to closed acquisitions. |
(7) | Legal reserve adjustments related to the rate case and other litigation and environmental matters of west coast Products Pipelines. |
(8) | Earnings from our drop down asset groups for periods prior to our acquisition dates of August 1, 2012 and March 1, 2013. |
(9) | Actual gain or loss will continue to be taken into account in earnings before DD&A at time of physical transaction. |
(10) | Insurance deductible, write-off of assets, expenses and insurance reimbursements related to casualty losses. |
(11) | Drop-down asset groups severance expense allocated to the General Partner. |
(12) | Amortization of debt fair value adjustments related to purchase accounting, Terminals severance, and certain Terminals asset removal expenses. |
(13) | General Partner's interest in net income reflects a reduction for the KinderHawk acquisition GP incentive giveback of $6 in 3Q 2012, $19 in YTD 2012, and $4 in YTD 2013, and a reduction for the Copano acquisition GP incentive giveback of $25 in 3Q and $50 in YTD 2013. |
(14) | Includes Kinder Morgan Energy Partner's (KMP) share of equity investees' DD&A: 3Q 2012 - $52, YTD 2012 - $136, 3Q 2013 - $20, and YTD 2013 - $67. |
(15) | Includes KMP share of equity investees' sustaining capital expenditures: 3Q 2012 - $8, YTD 2012 - $13, 3Q 2013 - $1, and YTD 2013 - $2. |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Natural Gas Pipelines | |||||||||||||||
Transport Volumes (Bcf) (1) (2) | 1,412.2 | 1,498.3 | 4,324.2 | 4,386.5 | |||||||||||
Sales Volumes (Bcf) (3) | 230.9 | 228.7 | 663.0 | 657.2 | |||||||||||
Gathering Volumes (Bbtu/d) (2) (4) | 3,029.4 | 2,987.1 | 2,993.5 | 3,008.5 | |||||||||||
CO2 | |||||||||||||||
Southwest Colorado Production - Gross (Bcf/d) (5) | 1.2 | 1.2 | 1.2 | 1.2 | |||||||||||
Southwest Colorado Production - Net (Bcf/d) (5) | 0.5 | 0.5 | 0.5 | 0.5 | |||||||||||
Sacroc Oil Production - Gross (MBbl/d) (6) | 29.6 | 30.0 | 30.1 | 28.4 | |||||||||||
Sacroc Oil Production - Net (MBbl/d) (7) | 24.6 | 25.0 | 25.1 | 23.7 | |||||||||||
Yates Oil Production - Gross (MBbl/d) (6) | 20.3 | 20.6 | 20.5 | 20.9 | |||||||||||
Yates Oil Production - Net (MBbl/d) (7) | 9.0 | 9.3 | 9.1 | 9.3 | |||||||||||
Katz Oil Production - Gross (MBbl/d) (6) | 2.7 | 1.8 | 2.4 | 1.7 | |||||||||||
Katz Oil Production - Net (MBbl/d) (7) | 2.2 | 1.5 | 2.0 | 1.4 | |||||||||||
Goldsmith Oil Production - Gross (MBbl/d) (6) | 1.3 | — | 0.6 | — | |||||||||||
Goldsmith Oil Production - Net (MBbl/d) (7) | 1.1 | — | 0.5 | — | |||||||||||
NGL Sales Volumes (MBbl/d) (8) | 9.6 | 9.3 | 9.8 | 9.3 | |||||||||||
Realized Weighted Average Oil Price per Bbl (9) (10) | $ | 95.82 | $ | 88.64 | $ | 92.35 | $ | 88.39 | |||||||
Realized Weighted Average NGL Price per Bbl (10) | $ | 46.72 | $ | 44.27 | $ | 45.81 | $ | 51.53 | |||||||
Products Pipelines | |||||||||||||||
Pacific, Calnev, and CFPL (MMBbl) | |||||||||||||||
Gasoline (11) | 72.8 | 68.4 | 205.3 | 201.4 | |||||||||||
Diesel | 27.9 | 27.4 | 80.2 | 78.5 | |||||||||||
Jet Fuel | 21.6 | 21.7 | 63.7 | 65.5 | |||||||||||
Sub-Total Refined Product Volumes - excl. Plantation | 122.3 | 117.5 | 349.2 | 345.4 | |||||||||||
Plantation (MMBbl) (12) | |||||||||||||||
Gasoline | 36.4 | 29.7 | 107.3 | 91.5 | |||||||||||
Diesel | 8.8 | 8.9 | 26.1 | 27.2 | |||||||||||
Jet Fuel | 5.8 | 6.6 | 18.6 | 18.5 | |||||||||||
Sub-Total Refined Product Volumes - Plantation | 51.0 | 45.2 | 152.0 | 137.2 | |||||||||||
Parkway (MMBbl) (12) | |||||||||||||||
Gasoline | — | — | — | — | |||||||||||
Diesel | 0.2 | — | 0.2 | — | |||||||||||
Jet Fuel | — | — | — | — | |||||||||||
Sub-Total Refined Product Volumes - Parkway | 0.2 | — | 0.2 | — | |||||||||||
Total (MMBbl) | |||||||||||||||
Gasoline (11) | 109.2 | 98.1 | 312.6 | 292.9 | |||||||||||
Diesel | 36.9 | 36.3 | 106.5 | 105.7 | |||||||||||
Jet Fuel | 27.4 | 28.3 | 82.3 | 84.0 | |||||||||||
Total Refined Product Volumes | 173.5 | 162.7 | 501.4 | 482.6 | |||||||||||
NGLs (13) | 8.9 | 8.5 | 26.7 | 23.1 | |||||||||||
Condensate (14) | 4.4 | — | 9.0 | — | |||||||||||
Total Delivery Volumes (MMBbl) | 186.8 | 171.2 | 537.1 | 505.7 | |||||||||||
Ethanol (MMBbl) (15) | 10.2 | 8.9 | 28.6 | 24.1 | |||||||||||
Terminals | |||||||||||||||
Liquids Leasable Capacity (MMBbl) | 62.6 | 60.2 | 62.6 | 60.2 | |||||||||||
Liquids Utilization % | 95.2 | % | 92.9 | % | 95.2 | % | 92.9 | % | |||||||
Bulk Transload Tonnage (MMtons) (16) | 23.7 | 23.7 | 68.1 | 74.4 | |||||||||||
Ethanol (MMBbl) | 15.9 | 15.7 | 46.7 | 49.9 | |||||||||||
Trans Mountain (MMBbls - mainline throughput) | 24.0 | 28.1 | 77.6 | 79.9 |
(1) | Includes Texas Intrastates, Copano South Texas, KMNTP, Monterrey, TransColorado, MEP (100%), KMLA, FEP (100%), TGP, and EPNG pipeline volumes. |
(2) | Volumes for acquired pipelines are included for all periods. |
(3) | Includes Texas Intrastates and KMNTP. |
(4) | Includes Copano Oklahoma, Copano South Texas, Eagle Ford Gathering, Copano North Texas, Altamont, KinderHawk, Camino Real, Endeavor, Bighorn, Webb/Duval Gatherers, Fort Union, EagleHawk, and Red Cedar throughput volumes. Joint Venture throughput reported at KMP share. |
(5) | Includes McElmo Dome and Doe Canyon sales volumes. |
(6) | Represents 100% production from the field. |
(7) | Represents KMP's net share of the production from the field. |
(8) | Net to KMP. |
(9) | Includes all KMP crude oil properties. |
(10) | Hedge gains/losses for Oil and NGLs are included with Crude Oil. |
(11) | Gasoline volumes include ethanol pipeline volumes. |
(12) | Plantation and Parkway reported at 100%. |
(13) | Includes Cochin and Cypress (100%). |
(14) | Includes KMCC and Double Eagle (100%). |
(15) | Total ethanol handled including pipeline volumes included in gasoline volumes above. |
(16) | Includes KMP's share of Joint Venture tonnage. |
September 30, 2013 | December 31, 2012 (1) | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 534 | $ | 529 | |||
Other current assets | 1,822 | 1,848 | |||||
Property, plant and equipment, net | 26,742 | 22,330 | |||||
Investments | 2,207 | 1,864 | |||||
Goodwill, deferred charges and other assets | 10,660 | 8,405 | |||||
TOTAL ASSETS | $ | 41,965 | $ | 34,976 | |||
LIABILITIES AND PARTNERS’ CAPITAL | |||||||
Liabilities | |||||||
Notes payable and current maturities of long-term debt | $ | 702 | $ | 1,155 | |||
Other current liabilities | 2,737 | 2,092 | |||||
Long-term debt | 18,910 | 15,907 | |||||
Debt fair value adjustments | 1,332 | 1,698 | |||||
Other | 1,263 | 1,362 | |||||
Total liabilities | 24,944 | 22,214 | |||||
Partners’ capital | |||||||
Accumulated other comprehensive income | 71 | 168 | |||||
Other partners’ capital | 16,552 | 12,327 | |||||
Total KMP partners’ capital | 16,623 | 12,495 | |||||
Noncontrolling interests | 398 | 267 | |||||
Total partners’ capital | 17,021 | 12,762 | |||||
TOTAL LIABILITIES AND PARTNERS’ CAPITAL | $ | 41,965 | $ | 34,976 | |||
Total Debt, net of cash and cash equivalents, and excluding the debt fair value adjustments | $ | 19,078 | $ | 16,533 | |||
Segment earnings before DD&A and certain items | $ | 5,378 | $ | 4,560 | |||
G&A | (502 | ) | (432 | ) | |||
Income taxes | 63 | 40 | |||||
EBITDA (2) (3) | $ | 4,939 | $ | 4,168 | |||
Debt to EBITDA (4) | 3.9 | 4.0 |
(1) | December 2012 balance sheet recast to reflect the transfer of assets among entities under common control. |
(2) | EBITDA includes add back of KMP's share of equity investees' DD&A. |
(3) | EBITDA is last twelve months. |
(4) | Actual December 2012 Debt to EBITDA as reported prior to the recast of assets under common control was 3.7. |
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