Kinder Morgan today reconfirmed its 2014 financial dividend and distribution guidance for Kinder Morgan, Inc. (NYSE: KMI), Kinder Morgan Energy Partners, L.P. (NYSE: KMP), Kinder Morgan Management, LLC (NYSE: KMR) and El Paso Pipeline Partners, L.P. (NYSE: EPB), and at KMP expects to generate distributable cash flow per unit nicely in excess of its budget targets.
Chairman and CEO Richard D. Kinder stated, “2014 is off to a great start and the future outlook for the Kinder Morgan companies remains very bright. We have identified approximately $14.8 billion in expansion and joint venture investments that we are confident will contribute to our growth, and we are pursuing customer commitments for many more projects. Since our 2014 budget was announced in early December of 2013, KMP has completed an approximately $962 million acquisition of crude oil tankers that are engaged in marine transportation for U.S. domestic trade through the Jones Act, and Tennessee Gas Pipeline completed a successful binding open season for incremental, north to south natural gas transportation capacity totaling 500,000 dekatherms per day, which will move gas from the Marcellus and Utica shales to multiple delivery points on the Gulf Coast.”
Kinder Morgan owns and operates a large, diversified portfolio of primarily fee-based energy assets across North America that historically have produced substantial cash flow in virtually all types of market conditions.
As previously announced, KMI expects to declare dividends of $1.72 per share for 2014. This represents an 8 percent increase over its 2013 declared dividend of $1.60 per share. Growth at KMI in 2014 is expected to be driven by continued strong performance at KMP and contributions from EPB.
KMP expects to declare cash distributions of $5.58 per unit for 2014, a 5 percent increase over its 2013 distribution of $5.33 per unit. KMP expects to exceed its distributable cash flow per unit target primarily as a result of the positive impact of the previously noted tanker acquisition, TGP’s incremental north to south firm transportation contracts, which are expected to begin service in April 2014, and additional long-term contracts on its El Paso Natural Gas pipeline system. “We continue to see exceptional growth opportunities across all of KMP’s business segments, including the need for more midstream infrastructure to move and store oil, gas and liquids from the prolific shale plays in the United States and the oilsands in Alberta, along with increasing demand for CO
In particular, there seems to be strong and growing demand for secure, long-term natural gas transportation capacity,” Kinder said.
KMR also expects to declare distributions of $5.58 per share for 2014 and the distribution to KMR shareholders will be paid in the form of additional KMR shares.