Kinder Morgan expects reduced earnings in 2020

Kinder Morgan, Inc. today announced its preliminary financial projections for 2020, and it includes reduced earnings alongside debt-cutting.
Kinder Morgan, Inc. today announced its preliminary financial projections for 2020, and it includes reduced earnings alongside debt-cutting.

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.