Kinder Morgan falls on disappointing forecasts

NEW YORK (AP) -- Shares of Kinder Morgan Inc. declined Wednesday as some of the energy company's dividend and distribution forecasts for 2014 failed to meet Wall Street's expectations.

THE SPARK: On Tuesday Kinder Morgan Inc. announced that it expects a 2014 dividend of $1.72 per share for the company. Analysts polled by FactSet predicted $1.78 per share.

Kinder Morgan Inc., based in Houston, owns the general partner of Kinder Morgan Energy Partners LP — which owns pipelines and terminals — and El Paso Pipeline — which owns and operates natural gas transportation and storage assets.

El Paso Pipeline Partners LP anticipates a distribution of $2.60 per unit. Wall Street is calling for $2.68 per unit. And Kinder Morgan Energy Partners projects a full-year distribution of $5.58 per unit, below the average analyst estimate of $5.65 per unit.

THE ANALYSIS: Jefferies' Christopher Sighinolfi said in a client note that he expected Kinder Morgan's stock to be down on the disappointing forecasts. He maintained a "Hold" rating.

SHARE ACTION: Kinder Morgan's stock fell $1.85, or 5.3 percent, to $33.19 in afternoon trading. Shares of El Paso Pipeline Partners dropped $3.59, or 8.9 percent, to $36.94, while Kinder Morgan Energy Partners' stock declined $1.63, or 2 percent, to $79.99.