Kinder Morgan Canada Limited Concludes Strategic Review

CALGARY, May 9, 2019 /CNW/ – The Kinder Morgan Canada Limited (TSX: KML) board of directors today issued the following statement:

Following the Trans Mountain sale, KML announced that it would undertake a strategic review of the company to determine a course of action that maximizes value to all KML shareholders.  The options evaluated included, among others, continuing to operate as a standalone enterprise, a disposition by sale, and a strategic combination with another company.

After a multi-month process that involved rigorous analysis of a variety of potential alternatives, the KML board has determined that the current best course of action for the company and its shareholders is for KML to remain a stand-alone public entity.  This determination was made taking into account and consistent with the recommendation of a special committee of independent directors not affiliated with Kinder Morgan, Inc. The special committee retained independent financial and legal advisors. KML’s strategic infrastructure operations across western Canada are underpinned by multi-year take-or-pay contracts with high quality customers and stable cash flows, and its energy transportation and storage assets are central to the energy infrastructure of Western Canada.

Consistent with its 2019 budget, KML expects to declare a dividend of $0.65 per restricted voting share, generate Adjusted EBITDA of approximately $213 million and DCF from continuing operations of approximately $109 million, representing DCF of $0.90 per restricted voting share.  Also, consistent with its budget, KML contemplates investing approximately $32 million in expansion projects, and ending the year with a Net Debt-to-Adjusted EBITDA ratio of approximately 1.3 times (treating 50 percent of the preferred equity as debt).

We do not provide forecasted income from continuing operations (the GAAP financial measure most directly comparable to the non-GAAP financial measures DCF from continuing operations and Adjusted EBITDA) due to the impracticality of quantifying certain amounts required by GAAP, such as realized and unrealized foreign currency gains and losses and potential changes in estimates for certain contingent liabilities.

Please join KML at 9 a.m. ET on Friday, May 10, 2019 at www.kindermorgancanadalimited.com for a LIVE webcast conference call to discuss this announcement. To access the live listen-only line, please dial 1-210-839-8959 and enter the passcode 7393295.

About Kinder Morgan Canada Limited (TSX: KML). KML manages and is the holder of an approximately 30 percent minority interest in a portfolio of strategic energy infrastructure assets across western Canada.  Kinder Morgan, Inc. (NYSE: KMI) holds an approximately 70 percent majority voting interest in KML and a corresponding 70 percent economic interest in KML’s business and assets.  KML focuses on stable, fee-based energy transportation and storage assets that are central to the energy infrastructure of Western Canada. We strive to promote shareholder value by increasing utilization of our existing assets while controlling costs and operating in a safe and environmentally responsible way.  For more information visit kindermorgancanadalimited.com.