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Company News

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

Jan 24 (Reuters) - 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)

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