Kinder Morgan, Inc. today announced its preliminary financial projections for 2020, and it includes reduced earnings alongside debt-cutting.
While reduced earnings could be a problem, according to the company’s announcement, they will continue to invest in new projects while also increasing their dividends.
Kinder Morgan 2020 earnings announcement summary
- Return more value to shareholders through increased dividends, as stated in the company’s 2017 earnings release. The planned increase will represent a 25 percent increase from 2019 and a 150 percent increase from 2017.
- Invest using internal cash-flows more than $2 billion in expansion projects and joint ventures.
- Generate $2.24 of DCF per share, up 3 percent compared to our current forecast for 2019, and $7.6 billion of Adjusted EBITDA.
Company projections were made assuming the average annual prices for West Texas crude oil and Henry Hub natural gas of $55.00 per barrel and $2.50 per MMBtu.
Kinder Morgan shares have increased by almost 25% in the last year, but are down roughly 6% in the fourth quarter.