Kinder Morgan's net debt increases to $10.9 billion at quarter end

By Lisa Kerner

Charlotte, N.C., April 21 - Kinder Morgan Energy Partners, LP ended the quarter with total debt of $10.9 billion, up about $436 million from the beginning of the year, company president C. Park Shaper said Wednesday during its first-quarter earnings conference call.

The company has been in talks with banks to put a new revolving credit facility in place in the second quarter that would be comparable to the $1.8 billion revolver it currently has in place.

Kinder Morgan's debt-to-EBITDA ratio was 3.77 times at quarter-end, a figure that is projected by the company to improve to 3.6 times by year-end.

"While we still experienced some lingering headwinds, the markets overall have improved since the first quarter last year," Richard Kinder, chief executive officer of Kinder Morgan, said in a company news release.

During the quarter, Kinder Morgan completed three terminal acquisitions and the $875 million joint venture with Petrohawk in the Haynesville Shale in Louisiana.

Kinder Morgan reported first-quarter distributable cash flow before certain items of $353.7 million, up 36% from $260.0 million for the same period in 2009.

The Houston-based petroleum pipeline company said it expects to meet its previously announced 2010 budget to pay cash distributions of $4.40 per unit, which would be a 4.8% increase over the $4.20 per unit distributed in 2009.

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