30 Nov

KMI’s TMP Expansion Project Accounts for 42% of Planned Capex

WRITTEN BY Rekha Khandelwal, CFA

A key project for KMI

Kinder Morgan’s (KMI) TMP (Trans Mountain Pipeline) expansion project is a key part of the company’s growth projects. The company has a five-year growth capital spending plan of nearly $13 billion. The TMP expansion project accounts for 42% of this planned spending.

KMI’s TMP Expansion Project Accounts for 42% of Planned Capex

The TMP expansion project is expected to cost nearly $5.4 billion, which is shown in the KM Canada segment in the table above.

The company expects ~$1.7 billion of incremental EBITDA (earnings before interest, tax, depreciation, and amortization) to be generated from the growth capital expenditure program. It expects the projects to have a ~6.5x EBITDA multiple.

The Trans Mountain expansion project is backed by strong commercial support from shippers with binding long-term 15-year and 20-year contracts.

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