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Tuesday, February 10, 2015

KKR misses fourth-quarter profit expectations on energy exposure, (NYSE: APO), (NYSE: KKR), (NYSE: TRI), (TSE: TRI.TO)

KKR & Co LP reported a much higher-than-expected 89 percent year-on-year drop in fourth-quarter profit on Tuesday, making it the latest alternative asset manager to report lower earnings as a result of the plunge in oil prices. While a drop in the valuation of many oil and gas exploration and productions companies presents new investment opportunities for firms such as KKR, it has also deflated the value of some of their existing investments, weighing on their earnings. Peer Apollo Global Management LLC said last week its fourth-quarter profit fell by 79 percent.While KKR took energy-related hits both in its private equity and credit investments, a main driver of its woes was U.S. oil and gas producer Samson Resources Corp, whose $7.2 billion leveraged takeover was led by the New York-based firm in 2011.KKR's plan was to shift Samson's assets from natural gas production more into oil and liquids, but persistently low oil and natural gas prices have hampered this transformation and wiped out most of the value of the equity invested.KKR's economic net income (ENI), a metric of profitability that takes into account the mark-to-market valuation of its holdings, was $86.6 million in the fourth quarter, down from $789.6 million a year ago. This translated into post-tax ENI per adjusted unit of 5 cents versus the average forecast of 45 cents in a Thomson Reuters poll of analysts.

Apollo Global Management, LLC (Apollo) is an investment manager. Shares of APO fell by 1.52% or $-0.37/share to $23.93. In the past year, the shares have traded as low as $20.02 and as high as $33.68. On average, 1237500 shares of APO exchange hands on a given day and today's volume is recorded at 1516403.

KKR & Co. L.P. (KKR), incorporated on June 25, 2007, is a global investment company. Shares of KKR traded higher by 1.05% or $0.26/share to $24.98. In the past year, the shares have traded as low as $18.84 and as high as $25.58. On average, 2590180 shares of KKR exchange hands on a given day and today's volume is recorded at 2981756.

Thomson Reuters Corporation (Thomson Reuters) is a provider of information for the world?s businesses and professionals. Shares of TRI fell by 0.15% or $-0.06/share to $39.75. In the past year, the shares have traded as low as $33.21 and as high as $41.44. On average, 762005 shares of TRI exchange hands on a given day and today's volume is recorded at 730074.

Thomson Reuters Corporation (Thomson Reuters) is a provider of information for the world?s businesses and professionals. Shares of TRI fell by 0.64% or $-0.32/share to $49.55. In the past year, the shares have traded as low as $36.86 and as high as $50.53. On average, 734014 shares of TRI.TO exchange hands on a given day and today's volume is recorded at 441181.



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