Kinder Morgan Inc (KMI) Dividend Increase

Kinder Morgan Inc (KMI) announced a 6.67% increase in its cash dividend! The quarterly cash dividend will increase from $0.45 to $0.48 per share and payable on May 15, 2015 to shareholders on record as of Apr 30, 2015 and ex-div date of Apr 28th. The annual dividend rate goes up from $1.80 to $1.92. Yield going forward is 4.42%.

Chairman and CEO Richard D. Kinder said, “Despite some headwinds due primarily to a rough commodity pricing environment, KMI had a good first quarter and will increase its dividend to $0.48 per share, and we remain on track to meet our full-year dividend target of $2.00 per share. Our first quarter performance demonstrated once again that our large diversified portfolio of mostly fee-based assets can produce good results even in tumultuous market conditions. We earned distributable cash flow before certain items of $0.58 per share for the first quarter, which equates to coverage in excess of our dividends of $206 million. Our five business segments produced $1.912 billion in segment earnings before DD&A and certain items, in line with the first quarter 2014, primarily driven by increases in our Products Pipelines and Terminals segments offsetting a decline in our CO2 segment. We also completed the approximately $3.1 billion acquisition of Hiland Partners on Feb. 13, 2015. This transaction establishes a premier midstream platform for us in the Bakken, with a significant amount of acreage dedicated under long-term gathering agreements with some of the Bakken’s largest and most successful producers.”
Our current project backlog of expansion and joint venture investments is $18.3 billion. Beginning this quarter, our project backlog includes capitalized overhead (which added approximately $850 million) to more accurately reflect the total investment in our projects. Without this adjustment, our project backlog decreased by approximately $200 million from the fourth quarter earnings release. Since the fourth quarter earnings release, we have placed nearly $400 million of completed projects into service, removed approximately $900 million in projects (primarily in the CO2 segment as a result of projects being delayed beyond the time horizon of our five-year backlog due to lower commodity prices) and added approximately $1.1 billion driven by new projects. Projects in the backlog have a high certainty of completion and drive future growth at the company across all of our business segments.
My portfolio consists of 102 shares of KMI, which increases my annual dividends from $183.60 to $195.84, an increase of $12.24.


2 thoughts on “Kinder Morgan Inc (KMI) Dividend Increase

  1. That’s one heck of an increase! Twice the amount that I would get from work. For my bank (I work at a bank, you might have figured out), I would have to take on a HUGE amount of stress and a much higher workload for a 6% raise. Becoming my branch’s leader for bringing new business to the bank for a measly $1/hour increase? No thanks, I’ll take the dividend raise.

    Glad to see a fellow KMI shareholder got a pay raise!

    ARB–Angry Retail Banker

    • That really puts things into perspective, doesnt it, ARB? Getting a raise at work is so much harder, but investors definitely get paid better for the added risk we take by putting our money in it.

      Good to hear that you are a fellow investor. Enjoy the raise!


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