Pipeline company Kinder Morgan Canada Ltd. said May 9 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% 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 multiyear 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.
Selling midstream interest, water infrastructure and long-dated inventory are among the options for the Permian pure-play.
Midstream entity will become the third-largest gas gathering hub in U.S. after spin-off.
Once managed individually by energy producers, the job of supplying, collecting and disposing of water is a rising cost, and has spawned a $34 billion a year business in the U.S. that has lured investors.