Kinder Morgan Energy Partners LP has reported a decline in profit for the first quarter, reflecting higher costs and expenses that more than offset a rise in revenues. Limited Partner's net income, however, increased from the previous year and came in line with analysts' estimates. The company also increased its quarterly cash distribution.

Net income attributable before certain items was USD 378.7 million as compared to USD 281.9 million in the same period last year. Including certain items, net income attributable to KMP was USD 225.3 million as compared to USD 263.9 million a year ago. Certain items totaled a loss of approximately USD 156 million, which was essentially all attributable to rate case litigation involving the company's product pipelines on the West Coast.

KMP reported first quarter distributable cash flow before certain items of USD 353.7 million, up by 36% from USD 260 million in the comparable period last year. Distributable cash flow per unit before certain items was USD 1.18, up by 22% from USD 0.97 per unit last year.

Mr Richard Kinder chairman & CEO of Kinder Morgan Energy Partners said that "KMP had a strong first quarter with all five of our business segments producing substantially higher results than in the first quarter of 2009. While we still experienced some lingering headwinds, the markets overall have improved since the first quarter last year. In total, our businesses produced USD 826.9 million in segment earnings before DD&A, a 21% increase compared to the first quarter of 2009."