|16:13 EDT||KMP||Kinder Morgan sees $6.4B in business segment earnings before DD&A in FY14|
In 2014, KMP expects to generate approximately $6.4B in business segment earnings before DD&A, an increase of approximately $750M over the 2013 forecast, distribute over $2.5B to its limited partners, and invest approximately $3.6B in expansions and small acquisitions. Almost $720M of the equity required for this investment program is expected to be funded by KMR share dividends. KMPís expectations assume an average West Texas Intermediate crude oil price of approximately $96.15 per barrel in 2014, which approximated the forward curve at the time this budget was prepared. The overwhelming majority of cash generated by KMPís assets is fee based and is not sensitive to commodity prices. In its CO2 segment, the company hedges the majority of its oil production, but does have exposure to unhedged volumes, a significant portion of which are natural gas liquids. For 2014, the company expects that every $1 change in the average WTI crude oil price per barrel will impact the CO2 segment by approximately $8 million, or approximately 0.125% of KMPís combined business segmentsí anticipated segment earnings before DD&A. EPB expects to declare cash distributions of $2.60 per unit for 2014, an approximate 2 percent increase over its 2013 expected distribution of $2.55 per unit. EPBís 2014 budget includes the expected purchase from KMI of 50% of Ruby Pipeline, 50 percent of Gulf LNG and 47.5% of Young Gas Storage. The positive impact from the expected dropdowns at attractive multiples will be largely offset by the impacts of the Southern Natural Gas and Wyoming Intestate Company rate cases and expected lower rates on contract renewals on the WIC system. In 2014, EPB expects its regulated pipeline and storage assets, along with its LNG business, to generate earnings before DD&A of almost $1.3B, an increase of almost $90M compared to 2013. EPB also has over $1B of expansion projects under contract with customers, which will benefit EPB unitholders in 2016 and beyond.