Kinder Morgan, Inc. (NYSE:KMI) Q1 2017 Earnings Conference Call - Preliminary Transcript

Apr 19, 2017 • 04:30 pm ET


Kinder Morgan, Inc. (NYSE:KMI) Q1 2017 Earnings Conference Call - Preliminary Transcript


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Operator Thank you for standing by, and welcome to the Quarterly Earnings Conference Call.At this time, all participants are in a listen-only mode until the question-and-answer session of today's conference. [Operator Instructions]. This call is being recorded. If you have any objections, you may disconnect at this time. And now, I'd like to hand the call over to Mr. Rich Kinder, Executive Chairman of Kinder Morgan. Mr. Kinder, you may begin.

Rich Kinder

Okay. Thank you, Carrie, and welcome to our first quarter analyst call. As always, before we begin, I'd like to remind you that todays earnings release and this call includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities and Exchange Act of 1934, as well as certain non-GAAP financial measures. We encourage you to read our full disclosure on forward-looking statements, and use of non-GAAP financial measures set forth at the end of our earnings release, as well as review our latest filings with the SEC for a list of risk factors that may cause actual results to differ materially from those in such forward-looking statements.

I will kick this off by making a few remarks, then I will turn it over to Steve Kean, our CEO, and Kim Dang, our CFO, to give the operational and financial update, and then we will take any questions that you have. I want to quickly make two points. First of all, this quarter's good results in terms of EBITDA and DCF which Steve and Kim will discuss in detail, demonstrates once more the strength of the asset portfolio at KMI. We are able to generate substantial amounts of cash flow even in a challenging environment in our business. Sometimes, good solid financial and operational success, which is made possible only by a lot of hard work by the whole team, gets overlooked by some investors. But I would argue that it's one of the critical elements to the long term economic health of any entity, and that includes Kinder Morgan.

The second point I want to make is, that Steve will update you in detail on this quarter's developments on our Elba and Trans Mountain projects, but let me say, we continue to make good progress on them, and on our goal of strengthening our balance sheet and thereby allowing us to return substantial value to our shareholders, through some combination of dividend increases, share repurchases, additional attractive growth projects, our further debt reduction. Now, as I have said previously, we currently believe the best avenue for returning value, is by an increased and well covered dividend, and we expect to announce our revised dividend guidance for 2018 later this year. And with that, I will turn it over to Steve.

Steve Kean

All right, thanks. I will give you a few updates on our performance and our key projects. First, we had a very good first quarter, with DCF per share at $0.54, and that's better than our beginning of the year guidance. Right