Kinder Morgan: Eagle Ford Production Down 28%

Company Decreases 2016 Guidance
Kinder Morgan Earnings Report

Kinder Morgan Releases First Quarter Earnings

Kinder Morgan has lowered its 2016 guidance due to a 28% decline in production from their Eagle Ford shale assets.

Related: Penn Virginia Corp. Files Chapter 11

In an earnings call last week, Kinder Morgan chief executive Steve Kean reported a good first quarter with cash flows in excess of $1.2 billion plus a reduction in their growth capital backlog from $18.2 billion at the end of the fourth quarter 2015 to $14.1.

Kinder Morgan’s combined oil production across all of our fields was down 7% in the first quarter, averaging 56.4 MBbl/d, down 6 percent from 59.8 MBbl/d for the same period in 2015.

The Houston-based company lowered its overall 2016 earnings guidance by 3%, attributing over half of that to the declines in the Eagle Ford volumes.

“While Eagle Ford volumes declined overall, and we are projecting declines on our assets going forward, we have seen volumes grow on our KMCC (Kinder Morgan Crude and Condensate) pipeline,” Kean said. The 300,000 b/d line, which carries Eagle Ford liquids to the Gulf coast, is starting to see volumes slow. “We think we’ve just started to see some flattening on that pipeline, but what we’ve done on this pipe is essentially grow our market share.”

Read more at KinderMorgan.com

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Elizabeth Alford

Elizabeth Alford

Elizabeth Alford writes on significant news developments in the Eagle Ford oil and gas play taking place across South TX. She is a freelance writer with an extensive communications, PR, and staff writing background.
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