January 24, 2018, by Rob Nickel
Pipeline company Kinder Morgan Inc said on Wednesday that it expects U.S. tax reform to result in a one-time hit to earnings of $1.4 billion, but said it would be better off in the long run.
– In a presentation to analysts, Houston-based Kinder said the negative impact was due to lower tax rates affecting the value of its deferred tax assets.
– The company said over a 10-year period, it would be better off due to the ability to fully expense capital spending on certain assets, as well as the lower corporate tax rate.
– Earlier this month, oil company BP said it would take a $1.5 billion charge to adjust to new U.S. tax rules, but expects a long-term boost from corporate-friendly tax rates
– U.S. tax overhaul is likely to spur spending by refiners and pipeline companies, industry lobbyists and analysts said last month.
Reporting by Rod Nickel in Winnipeg, Manitoba; Editing by David Gregorio