Kinder Mor­gan faces pres­sure on Trans Moun­tain plans

The Guardian (Charlottetown) - - BUSINESS - BY DAN HEAL­ING

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.

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