Kinder Morgan backs FY19 adjusted EBITDA view of roughly $7.8B
For 2019, KMI's budget contemplates declared dividends of $1.00 per common share, DCF of approximately $5.0 billion and Adjusted EBITDA of approximately $7.8 billion. Adjusted EBITDA is currently estimated to be slightly below budget, primarily due to the delay in Elba's in-service date, lower NGL prices impacting the CO2 segment, and the impact of 501-G settlements, partially offset by the strong performance of the West Region natural gas business unit. The 501-G settlements were in-line with KMI's previous estimates, and the resolution of those matters is a positive outcome, albeit not reflected in the 2019 budget. DCF is expected to be on budget as lower interest expense offsets the slightly lower Adjusted EBITDA. KMI budgeted to invest $3.1 billion in growth projects and contributions to joint ventures during 2019. KMI now expects to be slightly below that amount due to lower capital expenditures in the CO2 segment. KMI expects to use internally generated cash flow to fund the vast majority of its 2019 discretionary spending, without the need to access equity markets. Due to the Adjusted EBITDA impact discussed above, KMI now expects to end 2019 with a Net Debt-to-Adjusted EBITDA ratio of approximately 4.6 times.