LONDON, UK / ACCESSWIRE / June 20, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Kinder Morgan, Inc. (NYSE: KMI), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=KMI. The Company announced on June 16, 2017, that Kinder Morgan Canada Ltd has raised $4.16 billion (C$5.5 billion) for its Trans Mountain pipeline expansion, where it was strongly backed by lenders. According to the Company, Kinder Morgan Canada, majority-owned by Houston-based Kinder Morgan, Inc. has entered into agreements for C$4.0 billion in revolving credit, C$1 billion in contingent credit, and C$500 million in revolving credit capital. For immediate access to our complimentary reports, including today’s coverage, register for free now at:
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Details of the Fund Raise
This announcement of $4.16 billion investment comes on the heels of rising unrest from environmental and indigenous organizations. A group of about 20 such organizations in June 2017 called on 28 major banks, including all the underwriters of this transaction to back away from funding the Trans Mountain project. According to the prospectus, Toronto-Dominion Bank and Royal Bank of Canada were the main underwriters for the agreement.
This planned expansion almost triples the capacity of the existing pipeline, which is designed to carry crude from Canada’s oil sands to the West Coast, where it has obtained both federal and regulatory approvals and has passed an environmental assessment under British Columbia’s incumbent Liberal Party. For Canada’s oil producers, this growth step will help them attain better prices in contrast to the current issue where there is a severe lack of export routes.
Trans Mountain Pipeline System
The Trans Mountain pipeline system is currently the only pipeline system in North America that transports both crude oil and refined products to the West Coast. The system originates at the Edmonton South terminal, located in Sherwood Park, Alberta. The system spans about 1,150 km, with 827 km of 610 mm pipeline; 150 km of 914 mm pipeline; and 170 km of 762 mm pipeline. The Company recently completed the Edmonton Terminal Expansion Project, which contains about 35 tanks with a capacity of about 8 million barrels. Refined products from Edmonton are routed to Kamloops for local distribution. The Kamloops site is a receiving site for products from northeastern British Columbia, bound for the west coast. The facility has two storage tanks, currently, with a shell capacity of 160,000 barrels.
Trans Mountain Pipeline Update
In November 2016, the Government of Canada approved the Kinder Morgan Canada’s plant to expand the existing Trans Mountain Pipeline System between Edmonton, Alberta, and Burnaby, British Columbia. The Trans Mountain Pipeline System has been delivering the West Coast with Canadian Oil products, including about 90% of the gasoline supplied to the interior and south coast of British Columbia.
On March 22, 2017, the Company announced that Trans Mountain has successfully concluded a supplemental open season for 22,000 barrels per day of capacity on its planned expanded pipeline, subject only to final shipper board approval. Collectively, the firm shippers had made 15-20 years of commitments of 707,500 barrels per day, or roughly 80% of the capacity on the expanded pipeline, with another 20% reserved for spot volumes, as required by the National Energy Board.
Last Close Stock Review
On Monday, June 19, 2017, Kinder Morgan’s stock closed the trading session at $19.06, slightly falling 0.68% from its previous closing price of $19.19. A total volume of 7.15 million shares were exchanged during the session. For the last twelve months, the stock has gained 5.65%. Shares of the Company have a PE ratio of 62.70 and have a dividend yield of 2.62%. The stock currently has a market cap of $41.71 billion.
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SOURCE: Pro-Trader Daily