Kinder Morgan Just Locked In a $5 Billion Pipeline Deal. Here's What It Means for KMI's Dividend.
Kinder Morgan is adding more fuel to its dividend growth engine.
Overview
Kinder Morgan (NYSE: KMI), Phillips 66 (NYSE: PSX), and HF Sinclair (NYSE: DINO) just finalized a joint venture (JV) and made a final investment decision to build the Western Gateway Pipeline System. Valued at $5 billion, the 1,300-mile Western Gateway system will move refined petroleum products from refineries in the central U.S. and Gulf Coast regions to West Coast and Southwest markets.
Kinder Morgan will own 35.1% of the system, backed by long-term contracts that will generate steady cash flow. This project should give the pipeline stock more fuel to grow its 3.8%-yielding dividend.
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Originally published at www.fool.com.
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