Kinder Morgan Q3 Revenue Dips on Harvey Impact
(Photo: NASA)
Pipeline operator Kinder Morgan Inc reported a 1.5 percent fall in quarterly revenue, partly due to the impact of Hurricane Harvey.
In August, Harvey hit the Texas shore as a fierce Category 4 hurricane, causing massive flooding, which knocked out 11 percent of U.S. refining capacity, a quarter of oil production from the U.S. Gulf of Mexico, and closed ports all along the Texas coast.
Kinder Morgan had shut down parts of its KMCC pipeline system for crude and condensate, its Double Eagle pipeline, several gas storage facilities and compressor stations due to Harvey.
Natural gas transport volumes were up 3 percent in the reported quarter, but gathering volumes fell 14 percent due to the hurricane and due to low gas volumes at Eagle Ford, Texas.
Kinder Morgan on Wednesday said Harvey will have a 2017 debt-adjusted cash flow impact of about $20 million, excluding repair costs.
The company expects repair costs, both those incurred in the third quarter and those expected to be incurred in the fourth quarter, to be recovered from insurance proceeds.
Net income available to shareholders was $334 million, or 15 cents per share, in the third quarter ended Sept. 30, compared with a loss of $227 million, or 10 cents per share, a year earlier.
Kinder Morgan's revenue fell to $3.28 billion from $3.33 billion.
(Reporting by John Benny in Bengaluru; Editing by Shounak Dasgupta)
(Reporting by John Benny in Bengaluru; Editing by Shounak Dasgupta)
