Back to top

Kinder Morgan Plans to Quit Canada Operations: Here's Why

Read MoreHide Full Article

Kinder Morgan, Inc. (KMI - Free Report) signalled at a complete retreat from Canada, a week after completing the Trans Mountain Pipeline divestment.

The midstream infrastructure provider divested the Trans Mountain Pipeline and associated properties to Canadian government on Aug 31. The transaction was valued at C$4.5 billion.

At the Barclays energy conference, Steve Kean — chief executive officer of Kinder Morgan — announced that the unlevered balance sheet and potential properties of the midstream energy player’s Canadian arm were to back the expansion development of Trans Mountain Pipeline.  

Kean expects favourable market for the sale of its remaining assets in Canada. The company is intending to capitalize the opportunities in the near term.  

Investors should note that Kinder Morgan got rid of a big overhang with the Trans Mountain Expansion Pipeline sale. The company was compelled to suspend the expansion development following recurrent resistance from British Columbia.    

Headquartered in Houston, TX, Kinder Morgan is among the leading midstream infrastructure providers in North America. Over the past year, the stock has lost 7.7%, compared with the 9.3% collective decline of the stocks belonging to the industry.

Presently, the stock carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space are McDermott International, Inc. (MDR - Free Report) , Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) and Helix Energy Solutions Group, Inc. (HLX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

McDermott’s earnings surpassed the Zacks Consensus Estimate in the last four quarters, the average positive surprise being 101.7%.

Petrobras’ bottom line beat the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 10.4%.

Helix Energy’s bottom line exceeded the consensus mark in three of the last four quarters, the average earnings surprise being 66.7%.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. 

Click here for the 6 trades >>



More from Zacks Analyst Blog

You May Like