Summary
Kinder Morgan, Inc. (KMI) has filed an 8-K report providing preliminary insights into its anticipated dividend and cash flow for the third quarter and full year 2012. The company intends to recommend a quarterly dividend of $0.36 per share for Q3 2012, representing a significant 20% increase compared to the $0.30 dividend in Q3 2011 and a 3% rise from Q2 2012. This planned dividend hike signals management's confidence in the company's financial performance and its ability to generate sufficient cash flow to reward shareholders. Furthermore, KMI estimates its cash available to pay dividends for the full fiscal year 2012 to exceed $1,325 million. This projection, while based on preliminary estimates and not yet audited, provides investors with a forward-looking view of the company's dividend-paying capacity. The report also clarifies the importance of 'cash available to pay dividends' as a key non-GAAP metric used by KMI and investors to assess the company's ability to sustain and grow its dividend distributions.
Key Highlights
- 1Kinder Morgan intends to recommend a Q3 2012 dividend of $0.36 per share.
- 2The proposed Q3 2012 dividend represents a 20% increase over the Q3 2011 dividend of $0.30 per share.
- 3The Q3 2012 dividend is also 3% higher than the Q2 2012 dividend of $0.35 per share.
- 4KMI expects to declare dividends of at least $1.40 per share for the full fiscal year 2012.
- 5The company estimates its cash available to pay dividends for fiscal 2012 will exceed $1,325 million.
- 6The report emphasizes 'cash available to pay dividends' as a key non-GAAP metric for assessing dividend sustainability and growth.
- 7The preliminary financial information has not been audited or reviewed by PricewaterhouseCoopers LLP.