Kinder Morgan (KMI) Stock Down Ahead of Thursday’s Trans Mountain Pipeline Review
NEW YORK (TheStreet) -- Shares of Kinder Morgan (KMI) - Get Report are slumping 1.47% to $17.41 in midday trading on Wednesday ahead of the Canadian National Energy Board's Trans Mountain pipeline review, due to be released tomorrow.
The board plans to issue its recommendation on the Houston-based energy company's proposal to almost triple its capacity of the only pipeline between the country's oil sands and the west coast serving Pacific markets, Bloomberg reports.
The regulator had faced a deadline of May 20 to release its recommendation on Kinder Morgan's proposal.
The report will go to the federal government to allow Prime Minister Trudeau's cabinet to make a final decision, which is expected by the end of 2016, Bloomberg notes.
The board said it would release its report soon after 2 p.m. local time tomorrow in Calgary.
Since 2013, Kinder Morgan has been looking for regulatory permission to install the piping and pump stations needed to boost capacity of the Trans Mountain pipeline to 890,000 barrels per day from 300,000 barrels per day, Bloomberg adds.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D+ on the stock.
The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, generally high debt management risk, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: KMI
