July 17 (Reuters) - U.S. pipeline and terminal operator

Kinder Morgan ( KMI ) on Wednesday missed Wall Street estimates

for second-quarter profit, weighed down by higher costs and

weakness in its CO2 segment.

Adjusted core profit from the transportation of CO2 fell

about 6.3% to $164 million, from $175 million in the year-ago

quarter.

The segment earnings were impacted by lower crude and

natural gas liquids volumes and CO2 sales, the company said.

The terminal operator's quarterly revenue came in at $3.57

billion, well below analysts' estimates of $4.13 billion,

according to LSEG data.

Kinder Morgan ( KMI ) said it continues to have a bullish outlook

for natural gas due to demand from LNG export facilities and

increased exports from Mexico. This comes at a time when natural

gas prices have declined nearly 17.5% since the start of the

year.

The Houston, Texas-based company posted an adjusted profit

of 25 cents per share, in the three months ended June 30,

narrowly missing analysts' estimates of 26 cents per share.