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Kinder Morgan: KML, Government Of Canada Reach Agreement - Quick Facts

Kinder Morgan, Inc. (KMI) announced the Kinder Morgan Canada Limited (KML.TO) board has agreed to the purchase of the Trans Mountain Pipeline system and the expansion project or TMEP by the Government of Canada for C$4.5 billion, and has agreed to work with the Government of Canada to seek a third party buyer for the Trans Mountain Pipeline system and TMEP through July 22, 2018.

The Government of Canada has agreed to fund the resumption of TMEP planning and construction work by guaranteeing TMEP's advances under a separate Federal Government recourse credit facility until the transaction closes.

KMI CEO Steve Kean, said: "For KMI, despite losing the EBITDA associated with the Trans Mountain system, we still expect to meet or exceed our 2018 distributable cash flow per share target. The transaction will also have a positive impact on our consolidated balance sheet, as we expect KMI's approximately 70 percent share of after tax proceeds to be approximately $2.0 billion. Additionally, we continue to expect a 2018 annualized dividend of $0.80 per share, followed by $1.00 per share in 2019 and $1.25 per share in 2020, a growth rate of 25 percent annually."

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