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Kinder Morgan Energy Trans Mountain Pipeline Overbooked

Zacks Equity Research

A leading master limited partnership, Kinder Morgan Energy Partners LP (KMP) reported that its regularly overbooked Trans Mountain oil pipeline system running through Alberta and the Pacific Coast is oversubscribed for the month of April by 64%.

This implies that shippers will be able to transport only 36% of nominated volumes. The partnership said that ex-Edmonton system throughput for the Trans Mountain Mainline will be 288,087 barrels per day (bpd), while for the Puget Sound line and Westridge Dock, system throughput will be 141,674 bpd and 73,286 bpd, respectively.

For the month of April, the Puget Sound system will not be allocated.

Kinder Morgan is the largest independent owner and operator of petroleum product pipelines in the U.S. Its pipelines transport natural gas, refined petroleum products, crude oil, carbon dioxide and other products, while its terminals store petroleum products and chemicals and handle bulk materials such as coal and petroleum coke. It owns or operates more than 28,000 miles of pipeline and approximately 180 terminals. The terminals store petroleum products and chemicals, apart from handling bulk materials such as coal and petroleum coke. The partnership is also the largest carbon dioxide marketer and transporter in the country.

Kinder Morgan's newest business segment is the Trans Mountain Pipeline (now under the Kinder Morgan Canada segment), an approximately 715 mile pipeline system that transports crude oil and petroleum products from Alberta to marketing terminals and refineries in British Columbia, Canada and Washington State in the U.S. Trans Mountain. The pipeline has a capacity of approximately 300,000 barrels per day.

Kinder Morgan carries a Zacks Rank #3 (Hold). Better-ranked stocks in the oil and gas industry include Helmerich & Payne, Inc. (HP), Warren Resources Inc. (WRES) and Patterson-UTI Energy Inc. (PTEN). All three stocks have a Zacks Rank #1 (Strong Buy).

Read the Full Research Report on PTEN
Read the Full Research Report on KMP
Read the Full Research Report on HP
Read the Full Research Report on WRES


Zacks Investment Research