Nine months after acquiring MidCon Corp., KN Energy citedimprovements in all areas of operations and reported a markedincrease in earnings for the first three quarters of 1998.
Year to date the Lakewood, CO-based gas company has earned $63.7million net income on $3.25 billion operating revenue, compared to$49 million net income on $1.37 billion operating revenue the yearbefore. KN reported third quarter net income of $24.5 million from$1.05 billion operating revenue, up from $17.8 million net incomeon $518.2 million operating revenue in 3Q97. Earnings per dilutedshare stood at $1.59 through the first nine months of 1998 comparedto $1.55 through the same period in 1997.
Citing improved performances in upstream gathering andprocessing, mid-stream transportation, and downstream sales,Chairman Larry Hall said, “In the third quarter, KN doubled itsrevenues and increased net income by 37% over a year ago.”
Hall also credited the addition of Midcon this past January withgiving a boost to earnings. “With the complete integration of theMidcon assets and customer base, we have unmatched access to energysupplies and markets, and an engine in place to drive and sustaingrowth.”
Profits were also aided by KN’s efforts to sell non-strategicassets, which resulted in the sale of the company’s microwavetowers, and consequently added $.15 per diluted share to 3Qearnings. This improvement occurred despite lower natural gasliquids prices, which subtracted $.18 per diluted share compared tothe year before.
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