|Kinder Morgan posts narrow Q1 miss, raises dividend less than projected|
Apr. 22, 2020 4:38 PM ET|About: Kinder Morgan, Inc. (KMI)|By: Carl Surran, SA News Editor
Kinder Morgan (NYSE: KMI) -0.9% after-hours as Q1 earnings came in slightly below expectations and distributable cash flow drops 8% Y/Y to $1.26B.
Q1 adjusted EBITDA fell 5.1% Y/Y to $1.85B and revenues slid 9.4% to $3.11B; Q1 dividend rose 5% to $0.2625/share ($1.05 annualized).
"While we have the financial wherewithal to pay our previously planned dividend increase, with significant coverage, in unprecedented times such as these, the wise choice is to preserve flexibility and balance sheet capacity. Consequently, we are not increasing the dividend to the $1.25 annualized that we projected, under far different circumstances, in July of 2017," the company says.
Kinder says it has cut expenses and sustaining capex by more than $100M from its planned budget, and has reduced its 2020 expansion capital outlook by $700M, or nearly 30%.
The company says these actions more than offset the reduction in DCF and should result in an improvement in DCF less expansion capex of ~$200M compared to budget.