Kinder Morgan Inc (KMI)

[MisterEC]

Kinder Morgan: 2 Reasons To Stay Long
Kinder Morgan: 2 Reasons To Stay Long


Summary

Kinder Morgan is taking aggressive asset sale moves in order to lower its debt, while it is entering into JVs to share development costs, which is a smart move.

Driven by asset sales and other debt-reduction moves, Kinder Morgan’s net debt-to-adjusted EBITDA is expected at 5.3 times this year, down considerably from its earlier guidance of 5.5 times.

Kinder Morgan is increasingly focusing on projects with higher margins, such as the South Mainline expansion that will lower capital costs by $250 million and increase production simultaneously.

Driven by its capital and debt reductions, Kinder Morgan expects its distributable cash flow to exceed its capital expenditure for 2016, after the payment of dividends.