Kinder Morgan Inc. (KMI) reported first quarter 2000 income fromcontinuing operations of $46.1 million compared to income fromcontinuing operations of $23.9 million for the first quarter of1999. Net income for the first quarter was $46.1 million comparedto $7.1 million in the first quarter a year ago, which included a$16.8 million after-tax loss from discontinued operations.

“We are delighted with our first quarter results, whichsubstantially exceeded the analysts’ earnings consensus of $0.36per share. said CEO Richard D. Kinder. “Since the KN Energy mergerwith KMI was announced in July of 1999, KMI’s stock price hasclimbed from about $12 a share to over $30 a share.”

KMI benefited from its ownership of the general partner ofKinder Morgan Energy Partners LP, receiving $31.4 million in totaldistributions from KMP for the first quarter. “KMP will be aprimary driver of earnings per share growth at KMI,” Kinder said.”As KMP’s cash flow grows, KMI’s general partner share of that cashflow grows dramatically.”

Natural Gas Pipeline Company of America (NGPL), a wholly ownedsubsidiary of KMI, recorded operating income of $91.9 million inthe first quarter, up 17% over the same period a year ago. Thisincrease reflects a reduced depreciation rate, which was initiatedin the third quarter of 1999, and improved pipeline performance.NGPL volumes increased by 3% to 433.5 trillion Btu.

Kinder Morgan Texas Pipeline (KMTP – formerly MidCon TexasPipeline) reported improved margins and an increase in operatingincome of 26%. Volumes were essentially flat, with systemthroughput of 144.2 trillion Btu.

Retail operations operating income grew 29%, primarily due toimproved margins and increased system throughput. Volumes increasedby 27%. Power and other operations reported results similar to thefirst quarter a year ago.

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