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Kinder Morgan's (KMI) Project Faces Objections From Natives
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One of the largest energy infrastructure companies in North America, Kinder Morgan, Inc.’s, (KMI - Free Report) Trans Mountain pipeline expansion is yet again threatened.A native band in Canada has voiced objection against the company’s expansion project.
The Canadian natives arenot in favor of the Trans Mountain pipeline expansion and have asked the court to mull over the federal government's point for a stricter appraisal on the project of its rival.
Per Reuters, the demand was made by the west coast Nation Tsleil-Waututh in a letter to the Federal Court of Appeal. This followed closely after the announcement made by Canada’s federal agency which stated that not all sections of the society are satisfied with the government’s decision. However, the federal agency is committed to resolve the issue with the concerned parties.
Being a part of the legal dispute, the appeal, if successful, will nullify the federal sanction for the C$7.4-billion or $5.9-billion Trans Mountain project and result in long postponement.
The federal government gave its consent for Trans Mountain last year. Kinder Morgan countered Tsleil-Waututh's proposal in submission, on grounds that a separate opinion by Canada on Energy East was immaterial to Trans Mountain.
Trans Mountain has more than two dozen parties opposing it and Tsleil-Waututh is one among them. The hearing is expected to be held in October. Province of British Columbia has also joined the fight against the project after having received the consent early this week.
Financing Risk
A large number of credit unions in North America havealso decided to refrain from lending funds for energy pipeline projects. The decision to stop funding such projects until September has been taken to halt the expansion of pipeline facilities which might harm the environment through accidents like oil spillage. Although this decision by credit unions is only temporary, it might be made permanent later. Meanwhile, this stance by credit unions is not in favor of Trans Mountain pipeline expansion and hence raises questions over Kinder Morgan’s prospects.
Benefits of the Pipeline
The construction of the expansion project that might begin in September will help the company to nearly triple the size of the existing pipeline. The $7.4-billion development will help Kinder Morgan to carry 890,000 barrels a day of crude from Edmonton, Alberta to Barnaby, British Columbia.
Price Movement Over the last three months, shares of Kinder Morgan have gained 0.2% compared with the industry’s growth of 0.3%.
Zacks Rank & Stock Picks
Currently, Kinder Morgan carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy sector include TransCanada Corporation (TRP - Free Report) , Transmontaigne Partners LP and Range Resources Corporation (RRC - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Calgary, Canada, TransCanada is a midstream energy firm in North America. The company delivered an average positive earnings surprise of 4.06% over the last four quarters.
Transmontaigne, headquartered in Denver, CO, involves in transporting and storing refined petroleum products. The firm delivered an average positive earnings surprise of 6.60% over the last four quarters.
Based in Fort Worth, TX, Range Resources is an independent oil and gas company, engaged in the exploration, development and acquisition of U.S. oil and gas resources. The company’s 2017 earnings are estimated to grow 1587.17%.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
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Kinder Morgan's (KMI) Project Faces Objections From Natives
One of the largest energy infrastructure companies in North America, Kinder Morgan, Inc.’s, (KMI - Free Report) Trans Mountain pipeline expansion is yet again threatened.A native band in Canada has voiced objection against the company’s expansion project.
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The Canadian natives arenot in favor of the Trans Mountain pipeline expansion and have asked the court to mull over the federal government's point for a stricter appraisal on the project of its rival.
Per Reuters, the demand was made by the west coast Nation Tsleil-Waututh in a letter to the Federal Court of Appeal. This followed closely after the announcement made by Canada’s federal agency which stated that not all sections of the society are satisfied with the government’s decision. However, the federal agency is committed to resolve the issue with the concerned parties.
Being a part of the legal dispute, the appeal, if successful, will nullify the federal sanction for the C$7.4-billion or $5.9-billion Trans Mountain project and result in long postponement.
The federal government gave its consent for Trans Mountain last year. Kinder Morgan countered Tsleil-Waututh's proposal in submission, on grounds that a separate opinion by Canada on Energy East was immaterial to Trans Mountain.
Trans Mountain has more than two dozen parties opposing it and Tsleil-Waututh is one among them. The hearing is expected to be held in October. Province of British Columbia has also joined the fight against the project after having received the consent early this week.
Financing Risk
A large number of credit unions in North America havealso decided to refrain from lending funds for energy pipeline projects. The decision to stop funding such projects until September has been taken to halt the expansion of pipeline facilities which might harm the environment through accidents like oil spillage. Although this decision by credit unions is only temporary, it might be made permanent later. Meanwhile, this stance by credit unions is not in favor of Trans Mountain pipeline expansion and hence raises questions over Kinder Morgan’s prospects.
Benefits of the Pipeline
The construction of the expansion project that might begin in September will help the company to nearly triple the size of the existing pipeline. The $7.4-billion development will help Kinder Morgan to carry 890,000 barrels a day of crude from Edmonton, Alberta to Barnaby, British Columbia.
Price Movement
Over the last three months, shares of Kinder Morgan have gained 0.2% compared with the industry’s growth of 0.3%.
Zacks Rank & Stock Picks
Currently, Kinder Morgan carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy sector include TransCanada Corporation (TRP - Free Report) , Transmontaigne Partners LP and Range Resources Corporation (RRC - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Calgary, Canada, TransCanada is a midstream energy firm in North America. The company delivered an average positive earnings surprise of 4.06% over the last four quarters.
Transmontaigne, headquartered in Denver, CO, involves in transporting and storing refined petroleum products. The firm delivered an average positive earnings surprise of 6.60% over the last four quarters.
Based in Fort Worth, TX, Range Resources is an independent oil and gas company, engaged in the exploration, development and acquisition of U.S. oil and gas resources. The company’s 2017 earnings are estimated to grow 1587.17%.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>