Kinder Morgan Sees Profits Rise in 2021 After Year of High Impairment Charges
By Adriano Marchese
Kinder Morgan Inc. said Wednesday that it expects a significant
increase in profits in 2021 following a year with large impairments
associated with its natural gas pipelines.
The Houston-based company said that it expects net income to be
$2.1 billion in the year, compared with $119 million in 2020, where
it was saddled with $1.95 billion of non-cash impairments. In 2019,
the company's net profits were $2.19 billion.
The company also expects to declare a 3% higher dividend of
$1.08 a share.
Adjusted earnings before interest, taxes, depreciation and
amortization--a metric that excludes exceptional costs--is expected
to be $6.8 billion, compared with $6.96 billion in 2020.
In the year, Kinder Morgan anticipates investing in expansion
projects and contributing to joint ventures for an expected $800
As at Dec. 31, the company said it had $3.9 billion of borrowing
capacity and nearly $1.2 billion in cash.
"We believe this borrowing capacity, current cash on hand, and
our cash from operations are more than adequate to allow us to
manage our cash requirements, including maturing debt, through
2021," the company said.
At 4:31 p.m. EST in after-hours trading, shares were up 39
cents, or 2.5%, at $15.98.
Write to Adriano Marchese at firstname.lastname@example.org
(END) Dow Jones Newswires
January 20, 2021 16:59 ET (21:59 GMT)
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