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

Kinder Morgan ( KMI ) on Wednesday missed Wall Street estimates

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

costs and weakness in its CO2 segment.

Shares of the company were down 3.8% in trading after the

bell.

Kinder Morgan ( KMI ), which is the largest operator of carbon

dioxide (CO2) pipelines in North America, said adjusted core

profit from the transportation of CO2 fell about 6.3% to $164

million, from $175 million last year.

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 has launched a binding open season on

its proposed South System Expansion 4 project, designed to

increase Southern Natural Gas (SNG) Pipeline's South Line

capacity by 1.2 billion cubic feet per day.

CEO Kimberly Dang said the open season is a part of the

company's efforts to meet significant new natural gas demand for

electric generation associated with artificial intelligence

operations, crypto-currency mining, data centers and industrial

re-shoring.

The company 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.

Adjusted core profit from Kinder's natural gas pipeline

segment rose nearly 2.5% to $1.23 billion, as higher transport

and gathering volumes helped partially offset the impact of

asset divestitures and lower commodity prices.

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.