Kinder Morgan to Apply Trans Mountain Proceeds to Debt Reduction
September 04 2018 - 5:10PM
Business Wire
Announces Intention to Vote its Shares in
Support of KML Board Proposals
Kinder Morgan, Inc., (NYSE: KMI) today announced its intention
to vote in favor of the Kinder Morgan Canada Limited (TSX: KML)
board’s proposals that will facilitate the distribution of
approximately $2.0 billion of Trans Mountain net sale proceeds as a
return of capital to KMI; and reiterated its intention to use the
proceeds to pay down debt. As a result, KMI currently expects to
end the year at a Net Debt-to-Adjusted EBITDA ratio of
approximately 4.6 times, and expects to have reduced its
consolidated net debt by approximately $7.8 billion since the third
quarter of 2015.
“Today, we are revising our long-term leverage target from at or
below 5.0 times to around 4.5 times, which is consistent with where
we expect to end the year,” said KMI President Kim Dang. “We have
been very successful over the last several years in substantially
improving our balance sheet to enhance our financial strength, and
we expect that to be recognized by the ratings agencies.”
Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy
infrastructure companies in North America. We own an interest in or
operate approximately 84,000 miles of pipelines and
152 terminals. Our pipelines transport natural gas, refined
petroleum products, crude oil, condensate, CO2 and other products,
and our terminals transload and store liquid commodities including
petroleum products, ethanol and chemicals, and bulk products,
including petroleum coke, metals and ores. For more information
please visit www.kindermorgan.com.
Non-GAAP Financial
Measures
The non-generally accepted accounting principles (non-GAAP)
financial measure of net income before interest expense, taxes,
DD&A and Certain Items (Adjusted EBITDA) is presented
herein.
Certain Items as used to calculate
our Non-GAAP measures, are items that are required by GAAP to be
reflected in net income, but typically either (1) do not have a
cash impact (for example, asset impairments), or (2) by their
nature are separately identifiable from our normal business
operations and in our view are likely to occur only sporadically
(for example certain legal settlements, enactment of new tax
legislation and casualty losses).
Adjusted EBITDA is calculated by
adjusting net income before interest expense, taxes, and DD&A
(EBITDA) for Certain Items, noncontrolling interests before Certain
Items, and KMI’s share of certain equity investees’ DD&A (net
of consolidating joint venture partners’ share of DD&A) and
book taxes. Adjusted EBITDA is used by management and external
users, in conjunction with our net debt, to evaluate certain
leverage metrics. Therefore, we believe Adjusted EBITDA is useful
to investors. We believe the GAAP measure most directly comparable
to Adjusted EBITDA is net income.
Our non-GAAP measures described above should not be considered
alternatives to GAAP net income or other GAAP measures and have
important limitations as analytical tools. Our computations of
Adjusted EBITDA may differ from similarly titled measures used by
others. You should not consider non-GAAP measures in isolation or
as substitutes for an analysis of our results as reported under
GAAP. Management compensates for the limitations of non-GAAP
measures by reviewing our comparable GAAP measures, understanding
the differences between the measures and considers this information
in its analysis and its decision-making processes.
Important Information Relating to
Forward-Looking Statements
This news release includes forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995 and Section 21E of the Securities and Exchange Act of 1934.
Generally the words “expects,” “believes,” “anticipates,” “plans,”
“will,” “shall,” “estimates,” and similar expressions identify
forward-looking statements, which are generally not historical in
nature. Forward-looking statements are subject to risks and
uncertainties and are based on the beliefs and assumptions of
management, based on information currently available to them.
Although KMI believes that these forward-looking statements are
based on reasonable assumptions, it can give no assurance that any
such forward-looking statements will materialize. Important factors
that could cause actual results to differ materially from those
expressed in or implied by these forward-looking statements include
the risks and uncertainties described in KMI’s reports filed with
the Securities and Exchange Commission (SEC), including its Annual
Report on Form 10-K for the year-ended December 31, 2017 (under the
headings “Risk Factors” and “Information Regarding Forward-Looking
Statements” and elsewhere) and its subsequent reports, which are
available through the SEC’s EDGAR system at www.sec.gov and on our
website at ir.kindermorgan.com. Forward-looking statements speak
only as of the date they were made, and except to the extent
required by law, KMI undertakes no obligation to update any
forward-looking statement because of new information, future events
or other factors. Because of these risks and uncertainties, readers
should not place undue reliance on these forward-looking
statements.
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Kinder Morgan, Inc.Dave Conover, (713) 420-6397Media
RelationsNewsroom@kindermorgan.comorInvestor Relations(800)
348-7320km_ir@kindermorgan.comwww.kindermorgan.com
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