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TransCanada's Keystone XL Projects Receives Nod from Trump
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TransCanada Corporation’s (TRP - Free Report) Keystone XL pipeline has finally received permission from the Trump administration to continue construction work.
With permission from the President, the $8 billion pipeline project is now closer to completion. We remind investors that the 1,700-mile pipeline, which stretches from Canada to the Texas Gulf Coast, has been a burning issue for environmental groups as well as energy industry advocates.
Per a news daily, the decision is one of the biggest steps taken to date by the Trump administration to prioritize economic development over environmental concerns.
The southern leg of the Keystone Pipeline System, which stretches from Cushing, OK to southern Texas, was completed by early 2014. The portion, which faced the most objection, will cross the U.S.-Canada border.
In Nov 2015, President Obama had rejected TransCanada's application to construct the Keystone XL pipeline on grounds that it would weaken the integrity of the U.S. in the international climate change negotiations that was capped later that year in Paris. Obama had backed the argument of environmental groups that Keystone would encourage use of carbon-heavy tar sands oil, increasing global warming.
Moreover, Obama had claimed that the oil would not stay in the U.S. despite being processed in American refineries as the commodity will be exported. However, TransCanada had argued that Keystone would not remain an export pipeline.
In Jan 2016, TransCanada, which is majorly present in Houston, filed a lawsuit appealing that the former President’s decision exceeded his power under the U.S. Constitution. The company also said that it would initiate a claim under Chapter 11 of the North American Free Trade Agreement (NAFTA) on grounds that “the denial was arbitrary and unjustified.” TransCanada was looking to recover over $15 billion in costs and damages through the NAFTA claim.
However, Trump has signed executive orders quite early in his presidency to advance the controversial Keystone XL and Dakota Access oil pipelines. According to Trump, the project increases U.S. national interests by lowering costs and increasing employment.
The proposed 1,700-miles pipeline would transfer oil from tar sands in Alberta, Canada, to refineries along the Texas Gulf Coast. The pipeline will pass through Montana, South Dakota, Nebraska, Kansas and Oklahoma. It would transfer about 800,000 barrels of oil per day.
Even with the Trump administration's new permit, the pipeline faces route challenges and opposition from landowners, environmental groups and Native American tribes.
Separately, the Obama administration had clogged a vital link for the Dakota Access pipeline under Lake Oahe as the U.S. Army Corps of Engineers explored alternate routes. The delays have cost Dallas-based Energy Transfer Partners LP hundreds of millions of dollars so far.
However, the new presidential executive orders to accelerate environmental assessments for interstate pipeline projects are anticipated to create a windfall for refining companies operating along the Gulf Coast.
Investor confidence on the TransCanada stock is reflected in its price chart. Shares of the company appreciated 2.7% in the last three months, while the Zacks categorized Oil & Gas – Product/Pipeline industry gained 1% in the same time span.
Currently, TransCanada carries a Zacks Rank #3 (Hold). Some better-ranked players in the same space include Energy Transfer Equity, L.P. and Crescent Point Energy Corp. (CPG - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Energy Transfer Equity posted a negative earnings surprise of 16.00% in the preceding quarter. It had an average negative earnings surprise of 9.62% in the four trailing quarters.
Crescent Point Energy posted a positive earnings surprise of 244.44% in the preceding quarter. It beat estimates in all the four trailing quarters with an average positive earnings surprise of 127.16%.
Cenovus Energy posted a positive earnings surprise of 583.33% in the preceding quarter. It beat estimates in two of the four trailing quarters with an average positive earnings surprise of 74.89%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>
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TransCanada's Keystone XL Projects Receives Nod from Trump
TransCanada Corporation’s (TRP - Free Report) Keystone XL pipeline has finally received permission from the Trump administration to continue construction work.
With permission from the President, the $8 billion pipeline project is now closer to completion. We remind investors that the 1,700-mile pipeline, which stretches from Canada to the Texas Gulf Coast, has been a burning issue for environmental groups as well as energy industry advocates.
Per a news daily, the decision is one of the biggest steps taken to date by the Trump administration to prioritize economic development over environmental concerns.
The southern leg of the Keystone Pipeline System, which stretches from Cushing, OK to southern Texas, was completed by early 2014. The portion, which faced the most objection, will cross the U.S.-Canada border.
In Nov 2015, President Obama had rejected TransCanada's application to construct the Keystone XL pipeline on grounds that it would weaken the integrity of the U.S. in the international climate change negotiations that was capped later that year in Paris. Obama had backed the argument of environmental groups that Keystone would encourage use of carbon-heavy tar sands oil, increasing global warming.
Moreover, Obama had claimed that the oil would not stay in the U.S. despite being processed in American refineries as the commodity will be exported. However, TransCanada had argued that Keystone would not remain an export pipeline.
In Jan 2016, TransCanada, which is majorly present in Houston, filed a lawsuit appealing that the former President’s decision exceeded his power under the U.S. Constitution. The company also said that it would initiate a claim under Chapter 11 of the North American Free Trade Agreement (NAFTA) on grounds that “the denial was arbitrary and unjustified.” TransCanada was looking to recover over $15 billion in costs and damages through the NAFTA claim.
However, Trump has signed executive orders quite early in his presidency to advance the controversial Keystone XL and Dakota Access oil pipelines. According to Trump, the project increases U.S. national interests by lowering costs and increasing employment.
The proposed 1,700-miles pipeline would transfer oil from tar sands in Alberta, Canada, to refineries along the Texas Gulf Coast. The pipeline will pass through Montana, South Dakota, Nebraska, Kansas and Oklahoma. It would transfer about 800,000 barrels of oil per day.
Even with the Trump administration's new permit, the pipeline faces route challenges and opposition from landowners, environmental groups and Native American tribes.
Separately, the Obama administration had clogged a vital link for the Dakota Access pipeline under Lake Oahe as the U.S. Army Corps of Engineers explored alternate routes. The delays have cost Dallas-based Energy Transfer Partners LP hundreds of millions of dollars so far.
However, the new presidential executive orders to accelerate environmental assessments for interstate pipeline projects are anticipated to create a windfall for refining companies operating along the Gulf Coast.
Investor confidence on the TransCanada stock is reflected in its price chart. Shares of the company appreciated 2.7% in the last three months, while the Zacks categorized Oil & Gas – Product/Pipeline industry gained 1% in the same time span.
Currently, TransCanada carries a Zacks Rank #3 (Hold). Some better-ranked players in the same space include Energy Transfer Equity, L.P. and Crescent Point Energy Corp. (CPG - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Energy Transfer Equity posted a negative earnings surprise of 16.00% in the preceding quarter. It had an average negative earnings surprise of 9.62% in the four trailing quarters.
Crescent Point Energy posted a positive earnings surprise of 244.44% in the preceding quarter. It beat estimates in all the four trailing quarters with an average positive earnings surprise of 127.16%.
Cenovus Energy posted a positive earnings surprise of 583.33% in the preceding quarter. It beat estimates in two of the four trailing quarters with an average positive earnings surprise of 74.89%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>