May 10, 2019 / 4:33 AM / 2 months ago

Kinder Morgan Canada to remain independent after strategic review

FILE PHOTO: Steel pipe to be used in the oil pipeline construction of Kinder Morgan Canada's Trans Mountain Expansion Project sit on rail cars at a stockpile site in Kamloops, British Columbia, Canada May 29, 2018. REUTERS/Dennis Owen/File Photo

(Reuters) - Pipeline company Kinder Morgan Canada Ltd said on Thursday it would continue as a stand-alone entity, following a strategic review that considered options including a sale.

The company said its decision was consistent with the recommendation of a special committee of independent directors not affiliated with Kinder Morgan Inc, which holds about 70 percent majority voting interest in the Canadian entity.

Kinder Morgan Inc said in October that it was exploring all options for Kinder Morgan Canada, as it saw a sellers’ market for the Canadian company’s assets.

Kinder Morgan Canada highlighted its infrastructure operations across western Canada, underpinned by multi-year take-or-pay contracts, and stable cash flows for its decision to remain independent.

Kinder Morgan Canada said it expects adjusted core earnings of about $213 million and distributable cash flow from continuing operations of about $109 million in 2019.

The company said it plans to invest about $32 million in expansion projects, in line with its budget.

Reporting by Arathy S Nair in Bengaluru; Editing by Anil D'Silva

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