For all the protests and delay the Keystone XL pipeline has dealt with, its operator TransCanada (TRP) - Get Report is now facing a new problem, the oil producers and refiners that the pipeline was originally meant to serve don't seem interested anymore, the Wall Street Journal reports.
After being delayed for almost a decade by protests and regulatory hurdles, the Keystone XL finally got the go ahead from President Trump back in March. However, TransCanada is struggling to bring in customers to ship crude from Canada to the U.S. Gulf Coast.
TransCanada CEO Russ Girling is committed to completing the project and believes it will be profitable in the long-term, sources familiar with his thinking told the Journal. They added that it could be years before the company recoups its investment in the pipeline.
TransCanada's shares fell 0.6% to $47.53 early Thursday afternoon.
What's Hot On TheStreet
Happy birthday iPhone: Apple's (AAPL) - Get Report iPhone turns 10 years old today! What an amazing product Steve Jobs and his team created. But, as TheStreet's Natalie Walters points out, the next five years for Apple could be radically different. Sales could well be boosted by new, non-iPhone products such as smart glasses and autonomous car technologies. Walters also mentions that iPhone demand may peak in 2019.
Blue Apron falters: Blue Apron (APRN) - Get Report plans an initial public offering on Thursday seeking a valuation of about $2 billion. That's down significantly from a $3.2 billion valuation it had previously hoped to achieve. In the public sphere, the New York-based meal kit delivery service's IPO comes at an unsettling time, points out TheStreet's Ron Orol, as the markets begin to digest Amazon Inc.'s (AMZN) - Get Report mega $13.4 billion acquisition of Whole Foods Market Inc. (WFM) . Moreover, investors have questioned Blue Apron's business model -- it hasn't turned a profit since 2012 due to rising marketing and distribution costs.
Regulators outsmarted: With questions swirling whether its combination would get approved by regulators, Walgreens Boots Alliance (WBA) - Get Report and Rite-Aid RAD struck a clever deal on Thursday. Walgreens will pay $5.175 billion to Rite-Aid in cash and receive 2,186 stores in return. Walgreens will also pay Rite-Aid a $325 million termination fee for its planned buyout of the company.
Walgreens will be an even bigger drug-selling beast, with more than 15,000 stores spanning 11 countries. As for Rite-Aid, it will be left with about 2,300 stores once the deal closes in six months.
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