(Reuters) - Pipeline company Kinder Morgan Inc said on Wednesday that it expects U.S. tax reform to result in a one-time, $1.4 billion charge against earnings and added that it would be better off in the long run.
- In a presentation to analysts, Houston-based Kinder said the charge was caused by lower tax rates affecting the value of its deferred tax assets.
- Kinder Morgan said on Jan. 17 that the charge was an initial estimate and would be applied against fourth-quarter 2017 earnings.
- The company said it would be better off over a 10-year period because of a newfound ability to fully expense capital spending on certain assets, as well as a lower corporate tax rate.
- Kinder Morgan shares were down 1 percent at $19.25 in afternoon trading in New York.
- 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 and Steve Orlofsky