Kinder Morgan Canada Limited has announced its preliminary 2019 financial projections. “We expect 2019 to be a good year for Kinder Morgan Canada Limited business,” said KML Chairman and CEO Steve Kean. “KML’s strategic assets include the Canadian portion of the Cochin Pipeline system transporting light condensate from the United States to Fort Saskatchewan, Alberta, one of the largest integrated networks of crude tank storage and rail terminals in Western Canada, and the largest mineral concentrate export/import facility on the west coast of North America. Those assets are expected to continue to generate substantial value for KML shareholders in 2019.

“As we have said previously, the original purpose of KML was to hold a strong set of midstream assets to provide a funding mechanism for the Trans Mountain expansion,” continued Kean.  “In light of the Trans Mountain sale, which closed August 31, 2018, KML is evaluating all options in order to maximise value to KML shareholders.  Those options include, among others, continuing to operate as a standalone enterprise, a disposition by sale or a strategic combination with another company.” 

“We are continuing our evaluation of options with the KML board.  As we have previously said, we will not provide further updates until we have something more definitive to announce.” Kean concluded.

Below is a summary of KML’s expectations for 2019:

  • Generate $213m of Adjusted EBITDA and $109m of distributable cash flow (DCF).  These figures reflect significant reductions from 2017 actuals and from its 2018 budget due to the Trans Mountain sale.
  • Invest $32m in expansion projects.
  • End 2019 with a Net Debt-to-Adjusted EBITDA ratio of approximately 1.3 times, taking into account 50 percent debt treatment of the existing outstanding preferred shares. 

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4th December 2018

4th December 2018