|Kinder Morgan sees 3% rise in 2021 dividend per share|
Dec. 08, 2020 8:47 AM ET Kinder Morgan, Inc. (KMI) By: Carl Surran, SA News Editor 1 Comment
Kinder Morgan (NYSE: KMI) issues preliminary financial projections for 2021, including $1.08/share in dividends - a 3% Y/Y increase - and $1.2B in distributable cash flow in excess of discretionary capital spending and dividends.
The company says it reduced 2020 expenses and sustaining capex by nearly $190M, and lowered its discretionary capital outlook for 2020 by $680M, or nearly 30%, resulting in a $160M improvement to DCF less discretionary capex compared to the original budget; net debt-to-adjusted EBITDA ratio at year-end 2020 should be ~4.6x.
Kinder expects to generate $2.1B in attributable net income in 2021, $2B more than its 2020 forecast, due primarily to asset and goodwill impairments taken last year, and expects to generate $4.4B in DCF during 2021, 3% below its current 2020 forecast, affected by several factors including lower re-contracting rates on certain natural gas pipeline assets.
The company expects DCF less discretionary capex and dividends of $1.2B in 2021, an improvement of more than $700M vs. the 2020 forecast.
Kinder also says it plans to invest $800M in expansion projects in 2021.