Kinder Morgan Inc (NYSE: KMI) stock fell over 0.07% on 22nd April, 2021 (as of 10:21:45 UTC-4 · USD ; Source: Google finance) after the company posted mixed results for the first quarter of FY 21. Natural gas transport volumes had fallen down 3% compared to the first quarter of 2020, due to volume declines on Colorado Interstate Gas Pipeline (CIG) driven by production declines in the Rockies basin; on El Paso Natural Gas due to lower Permian supplies and power generation shifting to coal due to higher natural gas prices (particularly during the winter storm), and milder weather in the southwest later in the quarter; and on Fayetteville Express Pipeline due to contract expirations.
Further, the contributions from the Products Pipelines segment were down compared to the first quarter of 2020 on the back of lower refined products demand as well as lower crude and condensate volumes that were exacerbated by temporary supply and demand interruptions from the February winter storm. Terminals segment earnings had declined compared to the first quarter of 2020. Extended refinery outages resulting from the winter storm had affected refined product and petroleum coke volumes at our Houston Ship Channel and Port Arthur, Texas-area facilities, reducing associated ancillary and product handling fees for the quarter.
For 2021, KMI now expects to generate net income attributable to KMI to be in a range of $2.7 billion to $2.9 billion, has declared dividends of $1.08 per share, which represents a 3% increase from the 2020 declared dividends, DCF to be in a range of $5.1 billion to $5.3 billion, and Adjusted EBITDA to be in a range of $7.6 billion to $7.7 billion. KMI also now expects to end 2021 with a Net Debt-to-Adjusted EBITDA ratio to be in a range of 3.9 to 4.0. As of March 31, 2021, the company had over $3.9 billion of borrowing capacity under the $4 billion credit facility and over $1.3 billion in cash and cash equivalents. The company believes this borrowing capacity, current cash on hand, and the cash from operations are more than adequate to allow the company to manage the cash requirements, including maturing debt, through 2021.