|Kinder Morgan slips after posting Q2 GAAP loss, DCF/share dips Y/Y|
Jul. 22, 2020 5:28 PM ET|About: Kinder Morgan, Inc. (KMI)|By: Carl Surran, SA News Editor
Kinder Morgan (NYSE: KMI) -3.6% after-hours as Q2 results show adjusted EBITDA fell 14% Y/Y to a slightly-lower-than-forecast $1.57B, and distributable cash flow fell to $0.44/share from $0.50 a year earlier.
Kinder still achieved $404M of excess distributable cash flow above its declared dividend, which rose to $0.2625/share from $0.25 a year earlier.
The company lost $637M compared to a $518M profit in the year-ago quarter, after taking a $1B impairment charge as the recent sharp decline in natural gas production affected a number of its assets.
Kinder says its board "remains committed to increasing the dividend to $1.25 annualized as we projected, under far different circumstances, in 2017."
Because of the COVID-19-related reduced energy demand and the sharp decline in commodity prices, the company now expects full-year DCF to be below its initial $5.1B projection by slightly more than 10% and adjusted EBITDA to come in below the $7.6B plan by slightly more than 8%.
Kinder has cut its 2020 expenses and sustaining capital spending by $170M combined from its original budget, and has lowered its full-year expansion capital outlook by $660M, or almost 30%.
The company says two of its key natural gas projects remain on track despite the coronavirus, expecting to start its Permian Highway Pipeline in Texas in early 2021 and the final three Elba Island LNG liquefaction plants this summer.