Kinder Morgan’s Net Debt Falls Marginally in 1Q17
Missed EPS estimates
Kinder Morgan’s (KMI) adjusted EPS (earnings per share) for 1Q17 was $0.17. The company missed its EPS estimates of $0.18 for the quarter. KMI’s adjusted EPS for 1Q17 was also lower compared to $0.18 for 1Q16. The chart below compares KMI’s EPS estimates with its adjusted EPS over the last ten quarters.
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KMI’s net debt-to-EBITDA flat
Kinder Morgan’s (KMI) net debt at the end of 1Q17 stood at $37.8 billion, which was $317 million lower than at the end of 2016. Its net debt-to-EBITDA1 ratio at the end of the quarter was 5.3x—the same as at the end of 2016.
KMI targets a net debt-to-EBITDA ratio of 5.4x at the end of 2017. This forecast does not consider a JV (joint venture) partner or an IPO (initial public offering) on KMI’s Trans Mountain Pipeline project. As the company expects to either have a JV or an IPO for the project, it anticipates ending 2017 with a net debt-to-EBITDA multiple that is lower than 5.4x.
You can learn more about KMI’s progress in Kinder Morgan Makes Progress on Key Projects in 1Q17.
Let’s analyze Kinder Morgan’s 1Q17 segmental performance in the next article.
- earnings before interest, tax, depreciation, and amortization ↩