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TransCanada: Filtering Through the Keystone Noise

Stocks in this article: TRP CVX APA CP CNI CNQ SU

NEW YORK (TheStreet) -- The future of TransCanada's (TRP) Keystone XL pipeline is still as uncertain as it was five years ago, but investors still have a lot to look forward to.

That is because the company has several other projects up its sleeve that will be completed before the end of the decade. Some of these projects are more than twice as large as Keystone XL. Moreover, even if Keystone XL gets rejected, the company can still profit by joining the oil-by-rail boom.

In its previous quarterly results, TransCanada reported a 28% increase in revenue and a 14% rise in comparable earnings. This is particularly impressive given the industry's average growth of just 3.1%.

The company will continue growing in the coming years as the new projects come online. No wonder Jim Cramer called it "terrific," despite all the negativity surrounding Keystone XL.

TransCanada's shares have risen by 2.8% this year and closed at $46.90 on Friday.

Earlier this month, TransCanada, Canada's second biggest pipeline company, revealed that it is planning to construct a $1.74 billion natural gas pipeline to tap into the Kitimat liquefied natural gas, or LNG, project being developed by Chevron (CVX) and Apache (APA).

The 161-mile pipeline will start from Dawson Creek and will end at Summit Lake, British Columbia. From here, it will connect with Chevron and Apache's Pacific Trail Pipeline.

For this pipeline, TransCanada will file an application with the National Energy Board in the fourth quarter. The project will become operational by early 2020. This is the company's fourth project targeting British Columbia's emerging natural gas industry.

TransCanada is commonly known due to its $5.4 billion Keystone XL project, which has been marred by political delays. Keystone XL will be a 1,179-mile pipeline that will deliver up to 830,000 barrels of crude daily from the Canadian oil sands in Alberta to the U.S. Gulf Coast. This project has been under review by the U.S State Department for more than five years, and nobody knows if it will ever get approved.

The Keystone XL pipeline can give a boost to the revenues of TransCanada and Canadian crude producers. Moreover, it can cut America's dependence on oil from Venezuela and the Middle East by 40%.

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