Kinder Morgan faces pressure on Trans Mountain plans
Kinder Morgan Canada is facing mounting pressure to detail its plans for the Trans Mountain oil pipeline expansion when it releases its first earnings report Wednesday since going public.
Analysts and investors are hoping for clarity on the fate of the project, which has been thrust into question since John Horgan’s NDP in British Columbia wrestled power from the Liberals with the help of the Greens, who are staunchly opposed to the $7.4-billion development.
The company (TSX:KML), which has said it stands by the merits of the project, is scheduled to report its second-quarter results after markets close Wednesday, followed by a conference call with analysts.
“We expect KML-specific topics to be covered to include whether the Trans Mountain expansion project is on track for construction to begin in September 2017, as well as commentary on the NDP-led government in B.C.,” said RBC analyst Robert Kwan in a report to clients.
Kinder Morgan Canada president Ian Anderson has said he is willing to meet with the provincial NDP and Greens but won’t make further concessions on the project, setting the stage for a potential showdown between the energy giant and the fledgling government.
The company did not immediately respond to a request for comment on Tuesday.
In May, Kinder Morgan Canada completed its $1.75-billion initial public offering to raise funds for the Trans Mountain expansion in one of the biggest and most controversial IPOs in Canada in recent memory. Since then, its stock has lost ground from the initial offering of $17 per share, trading for $16.18 on the Toronto Stock Exchange on Tuesday.
TD Securities analyst Linda Ezergailis wrote in a report that clarification on timing of the Trans Mountain project will likely boost the company’s shares.