Blog Coverage: Kinder Morgan Makes Final Investment Decision on Trans Mountain Expansion Project; Pays C$1.75 billion for the IPO

Upcoming AWS Coverage on Williams Partners Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 30, 2017 / Active Wall St. blog coverage looks at the headline from Kinder Morgan, Inc. (NYSE: KMI) as the Company announced on May 25, 2017, a final investment decision for the Trans Mountain Expansion Project. This announcement was made in conjunction with Kinder Morgan Canada Limited, its indirect subsidiary, and will see the Company initially pay C$17.00 per share for a total 102.9 million shares of the common stock for total gross payment of C$1.75 billion. The final investment decision is dependent on the successful completion of the Initial Public Offering (IPO) which is expected to take place by no later than May 31, 2017. Register with us now for your free membership and blog access at:
http://www.activewallst.com/register/.

One of Kinder Morgan’s competitors within the Oil & Gas Pipelines space, Williams Partners L.P. (NYSE: WPZ), announced on May 04, 2017, its financial results for Q1 2017 which ended on March 31, 2017. AWS will be initiating a research report on Williams Partners in the coming days.

Today, AWS is promoting its blog coverage on KMI; touching on WPZ. Get all of our free blog coverage and more by clicking on the link below:
http://www.activewallst.com/register/.

The Announcement

Kinder Morgan announced that upon the completion of the IPO, it would have secured sufficient financing for the Trans Mountain Expansion Project. Since receiving the Government of Canada’s approval, the Company announced on March 09, 2017, that Trans Mountain has been moving forward with commercial, regulatory, and construction planning aspects of its expansion project.

The Company plans to pay the balance of the $7.4 billion project through its cash flow, which is about $4.5 billion annually. The KML IPO is one of the largest ever in Canada and allows Canadian investors to acquire leading integrated midstream set of western Canadian assets.

The Trans Mountain Project

The Trans Mountain Expansion project is a C$7.4 billion project, which includes a remaining cash spend of C$6.2 billion as of March 31, 2017, which upon completion, will deliver western Canadian oil producers with an additional shipping capacity of 590,000 barrels per day, resulting in total pipeline capacity of 890,000 barrels per day, and tidewater access to the western United States and different global markets.

The project currently transports about 300,000 barrels per day of crude oil and refined petroleum products from the oil sands in Alberta to Vancouver, British Columbia and Washington State. This project is underpinned by 15- and 20-year shipper commitments of 707,500 barrels per day, or roughly 80% of the capacity on the expanded pipeline, with the remaining 20% reserved for spot volumes required by the National Energy Board Construction, where the project is expected to begin in September 2017 and is expected to close by December 2019.

The Offering

The Company announced that the offering includes the sale of a portion of KMI’s interest in the Canadian business of KMI (the Business). Composed of Trans Mountain pipeline system and related terminal assets, the Puget Sound Pipeline, the Jet Fuel pipeline system, and the Canadian portion of the Cochin pipeline system; this offering will be made so as to pay down KMI’s debt. As a result, KMI now expects to end the year at about 5.2x debt to EBITDA against its budget of 5.4x and remains on a track to announce revised dividend guidance for 2018 in the second half of 2017.

According to the Company, the final cost estimate and the increased tolls led to an updated project cost of C$7.4 billion. The higher project cost can be attributed to the cost associated with the NEB’s 157 conditions and project changes, resulting from public feedback, namely, thicker pipe wall, additionally drilled crossings in environmentally sensitive areas and the Burnaby Mountain tunnel.

Stock Performance

At the close of trading session on Friday, May 26, 2017, Kinder Morgan’s stock price was slightly down by 0.88% to end the day at $19.25. A total volume of 10.48 million shares were exchanged during the session. The stock has advanced 7.42% in the last twelve months. The Company’s shares are trading at a PE ratio of 63.32 and have a dividend yield of 2.60%. The stock currently has a market cap of $43.35 billion.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com
Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

ReleaseID: 464430