Kinder Morgan Inc. reported a 20.3% rise in quarterly adjusted profit on July 20 as the U.S pipeline operator received a boost from jet fuel demand, with the company also benefiting from re-contracting some natural gas pipelines at a higher rate.
The pipeline operator cashed in on the pent-up travel demand, which resulted in a 19% rise in jet fuel volumes transported in the second quarter. It said adjusted earnings for its natural gas pipelines were up 6% at $1.13 billion.
“Our natural gas pipelines segment continues to see strong demand for the extensive firm transport and storage services we offer, as well as favorable contract renewals,” CEO Steve Kean said.
Demand for U.S. LNG in Europe has led to higher exports of the super-cooled fuel as the European Union tries to cut its dependence on Russian energy.
Extreme weather also increased natural gas demand in order to power several parts of the U.S. as people crank up their air conditioners to escape a brutal heat wave.
Kinder Morgan said it was continuing to evaluate plans for the Gulf Coast Express pipeline, adding it expects a final investment decision around mid-to-late this decade.
Deliveries to LNG facilities off its pipeline averaged about 5.8 million dekatherms per day, about 16% higher than last year but lower than the previous quarter due to the fire at Freeport LNG last month.
The financial impact on Kinder Morgan from the fire was immaterial, it added.
The Houston-based firm posted adjusted profit of $621 million, or 27 cents per share, for the quarter ended June 30, from $516 million, or 23 cents per share, a year earlier. Analysts estimated 27 cents, according to Refinitiv.
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