Kmi cash available to pay dividends up 21% over 2012
Houston--(business wire)--kinder morgan, inc. (nyse: kmi) today reported fourth quarter cash available to pay dividends of $482 million, an increase of 10 percent from $439 million for the comparable period in 2012. for the full year, kmi reported cash available to pay dividends of $1.713 billion, up 21 percent from $1.411 billion in 2012 and exceeding its published annual budget of $1.632 billion. the board of directors declared a quarterly dividend of $0.41 per share ($1.64 annualized), which is payable on feb. 18, 2014, to shareholders of record as of jan. 31, 2014. this represents an increase of 11 percent from the fourth quarter 2012 cash dividend per share of $0.37 ($1.48 annualized). chairman and ceo richard d. kinder said, “kmi had an excellent fourth quarter and year. growth was driven by continued outstanding performance at kinder morgan energy partners (kmp) highlighted by the strong results produced by the assets it acquired through the copano and el paso transactions, and a full year of contributions from el paso pipeline partners (epb). as a result, kmi met its revised target to declare a dividend of $1.60 per share for the full year and actually generated $1.65 per share in cash available per share outstanding. looking ahead, we believe that our large footprint of diversified assets will continue to generate stable, attractive risk-adjusted returns to our investors. we are excited about 2014, and currently have identified approximately $14.8 billion in expansion and joint venture investments at kmp and epb that we are confident will come to fruition and drive growth at kmi for years to come. we are also pursuing customer commitments for many more projects.” outlook as previously announced, kmi expects to declare dividends of $1.72 per share for 2014, an 8 percent increase over its 2013 declared dividend of $1.60 per share. growth in 2014 is expected to be driven by continued strong performance at kmp and contributions from epb. the growth at kmi from kmp and epb will be partially offset by the loss of income from the 2013 and expected 2014 sales (dropdowns) of certain assets to kmp and epb. subject to appropriate board approvals, kmi expects to drop down its 50 percent interest in ruby pipeline, its 50 percent interest in gulf lng and its 47.5 percent interest in young gas storage to epb during 2014. the boards of directors of the kinder morgan companies approved the 2014 budgets at the january board meeting, and the budgets will be discussed in detail during the company’s annual analyst conference on jan. 29, 2014, in houston. the conference starts at 8 a.m. ct and will be webcast live. other news kmi repurchased 5.2 million shares of its common stock during the fourth quarter for approximately $172 million. kmi has fully utilized the $350 million share and warrant repurchase program authorized by the board of directors in july of 2013 and has $94 million remaining on the $250 million authorized by the board in october of 2013 for share and warrant repurchase. kinder morgan is the largest midstream and the third largest energy company in north america with a combined enterprise value of approximately $110 billion. it owns an interest in or operates approximately 80,000 miles of pipelines and 180 terminals. its pipelines transport natural gas, gasoline, crude oil, co2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. kinder morgan, inc. (nyse: kmi) owns the general partner interests of kinder morgan energy partners, l.p. (nyse: kmp) and el paso pipeline partners, l.p. (nyse: epb), along with limited partner interests in kmp and epb and shares in kinder morgan management, llc (nyse: kmr). for more information please visit www.kindermorgan.com. please join kinder morgan at 4:30 p.m. eastern time on wednesday, jan. 15, at www.kindermorgan.com for a live webcast conference call on the company’s fourth quarter and year-end earnings. the non-generally accepted accounting principles, or non-gaap, financial measure of cash available to pay dividends is presented in this news release. cash available to pay dividends is a significant metric used by us and by external users of our financial statements, such as investors, research analysts, commercial banks and others, to compare basic cash flows generated by us to the cash dividends we expect to pay our shareholders on an ongoing basis. management uses this metric to evaluate our overall performance. cash available to pay dividends is also an important non-gaap financial measure for our shareholders because it serves as an indicator of our success in providing a cash return on investment. this financial measure indicates to investors whether or not we are generating cash flow at a level that can sustain or support an increase in the quarterly dividends we are paying. our dividend policy provides that, subject to applicable law, we will pay quarterly cash dividends generally representing the cash we receive from our subsidiaries less any cash disbursements and reserves established by our board of directors. cash available to pay dividends is also a quantitative measure used in the investment community because the value of a share of an entity like kmi that pays out all or a substantial proportion of its cash flow is generally determined by the dividend yield (which in turn is based on the amount of cash dividends the corporation pays to its shareholders relative to share price). the economic substance behind our use of cash available to pay dividends is to measure and estimate the ability of our assets to generate cash flows sufficient to pay dividends to our investors. we believe the gaap measure most directly comparable to cash available to pay dividends is income from continuing operations. a reconciliation of cash available to pay dividends to income from continuing operations is provided in this release. our non-gaap measure described above should not be considered as an alternative to gaap net income and has important limitations as an analytical tool. our computation of cash available to pay dividends may differ from similarly titled measures used by others. you should not consider this non-gaap measure in isolation or as a substitute for an analysis of our results as reported under gaap. management compensates for the limitations of this non-gaap measure by reviewing our comparable gaap measures, understanding the differences between the measures and taking this information into account in its analysis and its decision making processes. this news release includes forward-looking statements. these 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 kinder morgan believes that these forward-looking statements are based on reasonable assumptions, it can give no assurance that such assumptions will materialize. important factors that could cause actual results to differ materially from those in the forward-looking statements herein include those enumerated in kinder morgan’s reports filed with the securities and exchange commission. forward-looking statements speak only as of the date they were made, and except to the extent required by law, kinder morgan undertakes no obligation to update or review any forward-looking statement because of new information, future events or other factors. because of these uncertainties, readers should not place undue reliance on these forward-looking statements. notes kinder morgan, inc. and subsidiaries preliminary consolidated statements of income (1) (unaudited) (in millions, except per share amounts) the outstanding kmi warrants and convertible preferred securities (assumed from the may 25, 2012 ep acquisition) were anti-dilutive during the periods presented. kinder morgan, inc. and subsidiaries preliminary reconciliation of cash available to pay dividends from income from continuing operations (unaudited) (in millions) long-term debt - epb
