Increased natural gas sales helped increase first-quarter profit for pipeline giant Kinder Morgan, Kallanish Energy learns.
Natural gas sales jumped 232 billion Btus, or 10%, to 2.6 trillion BTUs. Crude oil and condensate gathering volumes, a smaller portion of Kinder Morgan’s business, fell 60,000 barrels per day (BPD), or 18%, to 272,000 BPD.
Kinder said profit was driven in part by higher natural gas volumes on the Tennessee Gas Pipeline, into the Sabine Pass Liquified Natural Gas facility and to South Texas to meet continuing demand from Mexico.
Natural gas deliveries to Mexico were up 16% from the same quarter in 2016.
The company posted first quarter profit of $401 million, up $125 million or 45%, over the first quarter of 2016. Revenue rose $229 million, or 7%, to $3.4 billion.
Costs rose just $65 million, or 3%, to $2.4 billion.