Kinder Morgan (KMI) Stock Gaining, Wins Canada Regulator Backing for Pacific Pipeline
NEW YORK (TheStreet) -- Shares of Kinder Morgan (KMI) - Get Report are advancing 1.74% to $17.56 late Friday morning as the company won Canadian regulatory backing for its Pacific pipeline.
Canada's National Energy Board said the Houston-based energy company's $5.4 billion Trans Mountain expansion should be allowed with 157 conditions, Bloomberg reported yesterday.
Additionally, the Canadian Environmental Assessment Agency said the project would not add greenhouse-gas emissions from oil production.
The two reports will inform the Canadian government's final decision, which is due out by December.
"There are still a couple of hurdles," Harold York, VP of integrated energy at consulting firm Wood Mackenzie told Bloomberg, "Public opposition could maybe still stall it, if not stop it."
The Canadian energy industry is counting on the expansion of the Trans Mountain, the only pipeline connecting Alberta's oil sands with Pacific markets, to carry growing volumes of crude to markets beyond the U.S., Bloomberg said.
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
