Kinder Morgan Canada Limited Concludes Strategic Review

CALGARY, May 9, 2019 /PRNewswire/ - 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 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

Important Information Relating to Forward-Looking Statements

This news release includes "forward-looking statements" within the meaning of applicable securities laws.  Generally the words "expects," "believes," "anticipates," "plans," "will," "shall," "estimates," "contemplates," and similar expressions identify forward-looking statements, which are not historical in nature.  Forward-looking statements in this news release include statements, express or implied, concerning KML's future operating and financial performance as a stand-alone entity, including expected Adjusted EBITDA and DCF for 2019, expected Adjusted EBITDA to debt ratio at the end of 2019, and anticipated dividends and the intended payment thereof. Forward-looking statements are not guarantees of performance. They involve significant risks, uncertainties and assumptions. Future actions, conditions or events and future results of operations may differ materially from those expressed in forward-looking statements. Many of the factors that will determine these results are beyond the ability of KML to control or predict. Among other things, factors that could cause actual results to differ from those indicated in the forward-looking statements provided in this news release include: changes in demand for KML's services; the breakdown or failure of facilities; operational disruptions or service interruptions; the ability of KML's counterparties to perform; KML's ability to secure, complete and realize the anticipated benefits of future growth projects; the availability and cost to KML of external sources of financing; and changes in the regulatory environment.   The foregoing list should not be construed to be exhaustive. Important additional information respecting the material assumptions, expectations and risks applicable to forward-looking statements included in this news release are set out in KML's press release dated December 3, 2018 regarding financial expectations for 2019, and KML's Annual Report on Form 10-K for the year-ended December 31, 2018 (under the headings "Risk Factors," "Information Regarding Forward-Looking Statements," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere) and KML's subsequent reports, which are available at, under KML's profile on SEDAR at and on KML's website at  KML disclaims any obligation, other than as required by applicable law, to update the forward-looking statements included in this release.

Non-GAAP Financial Measures

This news release includes references to DCF (both in the aggregate and per share), net income before interest expense, taxes, depreciation, depletion and amortization and adjusted for Certain Items (Adjusted EBITDA) and Net Debt, all of which are financial measures that do not have any standardized meaning as prescribed by GAAP (non-GAAP financial measures). For additional information about these non-GAAP financial measures, please refer to "Non-GAAP Financial Measures" in KML's earnings press release issued on April 17, 2019, which is available at, under KML's profile on SEDAR at and on KML's website at

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SOURCE Kinder Morgan Canada Limited

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