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.
Diamondback Energy had initially planned for its Rattler Midstream subsidiary to make its public debut last year but was stopped by tough market conditions thanks to commodity volatility.
Negotiations with three companies includes joint operation of a crude pipeline from Houston to Corpus Christi.
The acquisition of Fountain Qual Water Treatment is expected to strengthen XRI Holdings’ network of water midstream systems in the Permian Basin.