Kinder Morgan’s revenue beats as natgas volumes rise

Pipeline operator Kinder Morgan Inc's quarterly revenue edged past analysts' estimates as a rise in natural gas volumes helped offset the impact of Hurricane Harvey and loss of revenue from the divestiture of its Canadian assets.

The company's shares were up 1.3 percent at $18.93 in extended trading on Wednesday.

Revenue was weighed down by the separation of Kinder Morgan Canada Ltd in May and a partial shut down of some of its pipelines and gas storage facilities due to Hurricane Harvey, the company said.

However, natural gas transport volumes rose 3 percent, driven by the company's Texas intrastate natural gas pipelines.

Hurricane Harvey, which hit the Texas shore in August, reduced natural gas gathering volumes by 14 percent and crude and condensate pipeline volumes by 8 percent, the company said.

Kinder Morgan said Harvey will have about $20 million impact on 2017 distributable cash, excluding repair costs.

The Houston-based company said it expects all repair costs to be covered by its insurance.

Net income available to shareholders was $334 million, or 15 cents per share, in the third quarter ended Sept. 30, compared with a loss of $227 million, or 10 cents per share, a year earlier.

Kinder Morgan's revenue fell 1.5 percent to $3.28 billion, but beat analysts' average estimate of $3.25 billion, according to Thomson Reuters I/B/E/S. Separately, Kinder Morgan Canada said the C$7.4 billion ($5.9 billion) Trans Mountain pipeline expansion has seen a delay in construction preparation and its December 2019 operational date could be pushed back.

(Reporting by John Benny in Bengaluru; Editing by Shounak Dasgupta and Sriraj Kalluvila)