(Reuters) - Kinder Morgan Inc reported lower-than-expected quarterly revenue as its pipelines moved lower volumes of oil and gas.
Pipeline companies, once seen as more insulated from commodity price swings due to fixed-fee contracts, were hit hard by a more than 60 percent slump in oil prices since mid-2014 as cash-strapped oil and gas companies renegotiated their contracts.
However, Kinder Morgan said it was not hurt by any customer defaults in the third quarter.
Houston-based Kinder Morgan has tried to shore up finances by selling interest in its projects.
In July, Southern Co agreed to take a 50 percent stake in Kinder Morgan-operated Southern Natural Gas (SNG) pipeline system, which supplies to the U.S. southeast.
Kinder Morgan agreed in June to sell half its stake in an Ohio pipeline project to private equity firm Riverstone Investment Group LLC.
The company said on Wednesday it does not expect a need to access the capital markets to fund its growth projects for the “foreseeable future beyond 2016.”
Kinder Morgan reported a net loss attributable to shareholders of $227 million, or 10 cents per share, in the third quarter ended Sept. 30, compared with a profit of $186 million, or 8 cents per share, a year earlier.
The company took $405 million more in charges than a year earlier, including a partial writedown of the company’s equity investment in Midcontinent Express pipeline and a non-cash book tax expense associated with the SNG deal.
According to Thomson Reuters I/B/E/S, the company earned 15 cents per share on an adjusted basis, in line with analysts’ average estimate.
Revenue fell to $3.33 billion from $3.71 billion, below analysts’ average estimate of $3.45 billion.
The company’s shares were down about 0.8 percent in extended trading.
Up to Wednesday’s close of $20.71, Kinder Morgan’s shares had risen nearly 39 percent this year.
Reporting by Arathy S Nair in Bengaluru; Editing by Don Sebastian and Maju Samuel