Reiterating that it does not own or want to own an energy trading business, Kinder Morgan Inc. (KMI)and Kinder Morgan Energy Partners LP (KMP) reaffirmed their comfort with consensus earnings estimates for both the second quarter and the year.

“We continue to realize strong earnings and cash flow from each of our asset-based businesses,” said CEO Richard D. Kinder. “Today we reaffirmed comfort with consensus estimates that reflect approximately 34% growth in earnings per share at KMI, and 14% growth in distributions per unit at KMP. We expect KMI to generate over $400 million of free cash flow in 2002 and KMP to distribute over $700 million for 2002.” Kinder also noted that guidance does not reflect any additional acquisitions by either company.

For KMI, consensus earnings estimates are $0.56 for the quarter and $2.62 for the year. For KMP, consensus earnings estimates are $0.42 for the quarter and $1.81 for the year. KMP also expects to reach an annualized rate of cash distribution of at least $2.50 per unit by the fourth quarter 2002.

Both KMI and KMP beat earnings estimates in the first quarter. KMI reported 71 cents per share compared to estimates of 66 cents, and KMP reported 48 cents per share compared to estimates of 44 cents.

KMP is the nation’s largest pipeline master limited partnership with an enterprise value of over $9 billion. KMP owns and operates more than 25,000 miles of gasoline, petroleum products and natural gas pipelines and over 70 terminals, which handle over 55 million tons of coal and other dry-bulk materials annually and have a liquids storage capacity of 55 million bbl for petroleum products and chemicals. The general partner of KMP is owned by Kinder Morgan Inc., one of the largest midstream energy companies in America. Combined, the two companies have an enterprise value of $18 billion.

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