Kinder Morgan Inc. (KMI) expects to improve its cash flow and increase the shareholder dividend in 2021 from ongoing savings and efficiencies achieved this year as the midstreamer weathered the Covid-19 pandemic and oil market downturn.

KMI said Tuesday it expects to generate net income of $2.1 billion (90 cents/share) next year, up $2 billion from its 2020 forecast, taking into account asset and goodwill impairments. The company in 2021 plans to invest around $800,000 in expansion projects and contributions to joint ventures.

The company also expects to generate $4.4 billion ($1.95/share) in distributable cash flow (DCF), about 3% below the 2020 outlook. KMI CEO Steve Kean said DCF would be negatively impacted by lower recontracting rates on some natural gas pipeline segment...