Kinder Morgan Energy Partners LP (KMP), owner and operator ofone of the largest product pipeline systems in the country,reported on Thursday that it expects to substantially exceed theconsensus first quarter earnings per unit estimate of $0.71 andyear 2001 earnings per unit estimate of $2.98. The company alsosaid it expects to increase the cash distribution per common unitfor the first quarter from $0.95 to $1.00.

“We are experiencing a very strong first quarter due toincreased throughput on our pipelines and the initial success ofthe recently acquired GATX pipeline and terminal assets,” said CEORichard D. Kinder. “We expect to make another distribution increaselater this year even without additional acquisitions, and our $4.10guidance assumes only a modest amount of contribution fromadditional acquisitions. We remain committed to increasing the cashdistribution as soon as our performance allows.”

Kinder Morgan Inc., the general partner of KMP, also reported onThursday that it expects to meet or beat the consensus full year2001 estimate for recurring earnings per share of $1.78. Theestimate represents almost a 40% increase over year 2000 recurringearnings per share of $1.28. The company said it expectsapproximately 25% of these earnings will come in the first quarter,right in line with current consensus estimates of $0.45.

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