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Pipeline company Kinder Morgan sees short-term hit from U.S. tax reform

Published 2018-01-24, 10:04 a/m
© Reuters. Pipeline company Kinder Morgan sees short-term hit from U.S. tax reform
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By Rod Nickel

Jan 24 (Reuters) - Pipeline company Kinder Morgan Inc (NYSE:KMI) KMI.N 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 BP.L 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.

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