Robyn Allan, an expert intervenor at the National Energy Board review of Trans Mountain’s expansion, broke down how Kinder Morgan over-leveraged the Trans Mountain expansion. Though the expansion represents an increase in cash flow 6 times what it already generates, there are underlying problems with KMI, says Allan. “A promised gain in dividend growth predicated on tax savings is not only a contradiction with how Kinder Morgan presents the benefits of its expansion project in Canada, increased tax savings are generally a function of increased earnings.” Allan explains, “ If the earnings become compromised, tax savings do as well.” Allan says KMI is “emphasizing the project’s likelihood of success and ignoring realistic forces that will bring about its failure.”
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