Kinder Morgan’s board of directors said Wednesday that they have approved expanding the company’s common stock repurchase program by $50 million to $500 million. Since the start of the program in August of 2001, Kinder Morgan has repurchased approximately $450 million, including $38 million this year. The company noted that the additional $50 million, the majority of which is expected to be used in 2004, is consistent with KMI’s previous share repurchase guidance given in May at the time it significantly increased the dividend. In response to federal tax legislation, Kinder Morgan increased its quarterly dividend to $0.40/share ($1.60 annualized) and expects to further increase its quarterly dividend to at least $0.50 per share ($2.00 annualized) in January 2004.

Montreal-based Gaz Metro LP posted income of C$153.3 million, or C$1.39 per unit, for the fiscal year ended Sept. 30, a decline of C$1.3 million from 2002. “Record income in 2002 would have been surpassed by C$3.3 million in 2003 if it had not been for the C$4.6 million negative impact of a factor beyond our control — a reduction in the federal corporate tax rate that affected the tariffs and the income of the Quebec distribution activity and TQM Pipeline,” said Robert Tessier, CEO. Revenues for 2003 were up by C$149 million, or 9.3%, to C$1,757 billion over 2002. The company noted that the increase could be explained primarily by a 34.3% jump in the average price of system gas, which rose from C$4.66/Gigajoule in 2002 to C$6.26/Gigajoule in 2003. Gross margin was C$568.8 million for the 2003 fiscal year compared to C$555.9 million in 2002. The increase of C$12.9 million, or 2.3%, was attributable to an increase in the tariffs for the Quebec distribution activity and Portland Natural Gas Transmission. Gas distribution saw normalized volumes (related to temperature) fall 3.4% from 5,921 million cubic metres in 2002 to 5,717 million cubic metres in 2003. The company attributed the decrease to a decrease in the volumes delivered to industrial clients in interruptible service. Total deliveries reached 5,728 million cubic metres for the year, a rise of 0.8%. Gaz Métro said the distribution activity generated income of C$138 million for 2003 compared to C$142.1 million in 2002, a decrease of C$4.1 million, or 2.9%, due in large part to the negative impact of the reduction in the federal tax rate.

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