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Kinder Morgan Files for IPO to Fund Trans Mountain Project

Energy transportation and storage company Kinder Morgan, Inc. KMI recently announced that its Canadian unit has filed for an initial public offering (IPO) of restricted voting shares to garner funds for its $5.48 billion Trans Mountain project expansion.

Kinder Morgan has filed an introductory prospectus with the American Securities and Exchange Commission (SEC). However, the size of the IPO and its timeline in the submission have not been revealed.

The offering will authorize the sale of a portion of Kinder Morgan’s Canadian assets. Notably, Kinder Morgan considered the possibility of either an IPO or a joint venture, with the project startup scheduled for later this year in either case.

The 1,150 km Trans Mountain Pipeline, wholly owned by the Canadian unit of Kinder Morgan, carries crude and refined oil from Alberta to the west coast of British Columbia.

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The development of the Trans Mountain project will nearly triple the size of the existing pipeline. It will help Kinder Morgan transport 890,000 barrels a day of crude from Edmonton, Alberta, to Barnaby, British Columbia. Interestingly, the project has been approved the Canadian government in spite of objection from aboriginal and environmental groups.

About the Company

Kinder Morgan is engaged in energy transportation and storage in North America. The company transports energy products like natural gas, refined petroleum products, crude oil, ethanol, coal, and carbon dioxide (CO2). It operates natural gas pipelines in the Rocky Mountains, the Midwest, and Texas as well as refined petroleum products pipeline in North America. Kinder Morgan also operates terminals for the storage of petroleum products and chemicals and CO2 pipelines and oil producing fields. Kinder Morgan is headquartered in Houston, TX.

Price Performance

In the last one year, Kinder Morgan’s shares have outperformed the Zacks categorized Oil and Gas - Production and Pipelines industry. During this period, the industry registered an increase of 13.86% while Kinder Morgan’s stock gained 14.22%.

Zacks Rank and Stocks to Consider

Kinder Morgan presently has a Zacks Rank #3 (Hold). Some better-ranked stocks in oil and energy sector include Global Partners LP GLP, Enerplus Corporation ERF, and Antero Resources Corporation AR. All the companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Global Partners is expected to witness sales growth of 8.63% year over year in 2017. The partnership had an average positive earnings surprise of 96.55% in the last four quarters.

Enerplus Corporation is expected to witness current year sales growth of 66.12% year over year. The company had an average positive earnings surprise of 66.67% in the last four quarters.

Antero Resources is expected to record year-over-year growth of 8.16% in 2017 sales. The company had an average positive earnings surprise of 239.10% in the last four quarters.

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Global Partners LP (GLP): Free Stock Analysis Report
 
Enerplus Corporation (ERF): Free Stock Analysis Report
 
Kinder Morgan, Inc. (KMI): Free Stock Analysis Report
 
Antero Resources Corporation (AR): Free Stock Analysis Report
 
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