Market Overview

Kinder Morgan to Apply Trans Mountain Proceeds to Debt Reduction

Share:

Announces Intention to Vote its Shares in Support of KML Board
Proposals

Kinder Morgan, Inc., (NYSE:KMI) today announced its intention to vote
in favor of the Kinder Morgan Canada Limited (TSX:KML) board's
proposals that will facilitate the distribution of approximately $2.0
billion of Trans Mountain net sale proceeds as a return of capital to
KMI; and reiterated its intention to use the proceeds to pay down debt.
As a result, KMI currently expects to end the year at a Net
Debt-to-Adjusted EBITDA ratio of approximately 4.6 times, and expects to
have reduced its consolidated net debt by approximately $7.8 billion
since the third quarter of 2015.

"Today, we are revising our long-term leverage target from at or below
5.0 times to around 4.5 times, which is consistent with where we expect
to end the year," said KMI President Kim Dang. "We have been very
successful over the last several years in substantially improving our
balance sheet to enhance our financial strength, and we expect that to
be recognized by the ratings agencies."

Kinder Morgan, Inc. (NYSE:KMI) is one of the largest energy
infrastructure companies in North America. We own an interest in or
operate approximately 84,000 miles of pipelines and 152 terminals. Our
pipelines transport natural gas, refined petroleum products, crude oil,
condensate, CO2 and other products, and our terminals
transload and store liquid commodities including petroleum products,
ethanol and chemicals, and bulk products, including petroleum coke,
metals and ores. For more information please visit www.kindermorgan.com.

Non-GAAP Financial Measures

The non-generally accepted accounting principles (non-GAAP) financial
measure of net income before interest expense, taxes, DD&A and Certain
Items (Adjusted EBITDA) is presented herein.

Certain Items as used to
calculate our Non-GAAP measures, are items that are required by GAAP to
be reflected in net income, but typically either (1) do not have a cash
impact (for example, asset impairments), or (2) by their nature are
separately identifiable from our normal business operations and in our
view are likely to occur only sporadically (for example certain legal
settlements, enactment of new tax legislation and casualty losses).

Adjusted EBITDA is calculated by
adjusting net income before interest expense, taxes, and DD&A (EBITDA)
for Certain Items, noncontrolling interests before Certain Items, and
KMI's share of certain equity investees' DD&A (net of consolidating
joint venture partners' share of DD&A) and book taxes.
Adjusted
EBITDA is used by management and external users, in conjunction with our
net debt, to evaluate certain leverage metrics.
Therefore, we
believe Adjusted EBITDA is useful to investors.
We believe the
GAAP measure most directly comparable to Adjusted EBITDA is net income.

Our non-GAAP measures described above should not be considered
alternatives to GAAP net income or other GAAP measures and have
important limitations as analytical tools.
Our computations of
Adjusted EBITDA may differ from similarly titled measures used by others.

You should not consider non-GAAP measures in isolation or as
substitutes for an analysis of our results as reported under GAAP.
Management
compensates for the limitations of non-GAAP measures by reviewing our
comparable GAAP measures, understanding the differences between the
measures and considers this information in its analysis and its
decision-making processes.

Important Information Relating to
Forward-Looking Statements

This news release includes forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995 and
Section 21E of the Securities and Exchange Act of 1934. Generally the
words "expects," "believes," "anticipates," "plans," "will," "shall,"
"estimates," and similar expressions identify forward-looking
statements, which are generally not historical in nature.
Forward-looking
statements are subject to risks and uncertainties and are based on the
beliefs and assumptions of management, based on information currently
available to them.
Although KMI believes that these
forward-looking statements are based on reasonable assumptions, it can
give no assurance that any such forward-looking statements will
materialize.
Important factors that could cause actual results to
differ materially from those expressed in or implied by these
forward-looking statements include the risks and uncertainties described
in KMI's reports filed with the Securities and Exchange Commission
(SEC), including its Annual Report on Form 10-K for the year-ended
December 31, 2017 (under the headings "Risk Factors" and "Information
Regarding Forward-Looking Statements" and elsewhere) and its subsequent
reports, which are available through the SEC's EDGAR system at
www.sec.gov
and on our website at
ir.kindermorgan.com.
Forward-looking statements speak only as of the date they were made,
and except to the extent required by law, KMI undertakes no obligation
to update any forward-looking statement because of new information,
future events or other factors.
Because of these risks and
uncertainties, readers should not place undue reliance on these
forward-looking statements.

View Comments and Join the Discussion!