Kinder Morgan boosts natural gas sales, profits in Q1 earnings

A boost in natural gas sales helped fuel an increase in profits for pipeline giant Kinder Morgan last quarter.

The company posted first quarter profits of $401 million, up $125 million or 45 percent over the first quarter of 2016. Revenue rose $229 million or 7 percent to $3.4 billion. Costs rose just $65 million or 3 percent to $2.4 billion.

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Natural gas sales boomed 232 billion Btus or 10 percent to 2.6 trillion. Crude oil and condensate gathering volumes, a smaller portion of Kinder Morgan’s business, dropped 60,000 barrels per day or 18 percent to 272,000.

Kinder said profits were driven in part by higher natural gas volumes on the Tennessee Gas Pipeline, into the Sabine Pass Liquified Natural Gas facility and to South Texas to meet continuing demand from Mexico.

The company said it moves 40 percent of the natural gas consumed in the U.S.

Natural gas deliveries to Mexico were up 16 percent in comparison to the same period last year.