Seeking Alpha

Kinder Morgan Partners to expand Edmonton Crude Oil rail terminal

  • Kinder Morgan Partners (KMP, KMI) announces plans to expand the Edmonton crude oil rail terminal now under construction, increasing capacity at start-up in Q1 2015 to more than 210K bbl/day and potentially up to 250K bbl/day.
  • KMP says its 50-50 joint venture with Imperial Oil (NYSEMKT:IMO) has entered into additional firm take or pay agreements with oil company majors sufficient to allow the expansion project to move forward.
  • The expansion will more than double the capacity of the rail-loading terminal for crude oil KMP/KMI is building in Canada's oil sands.
  • Including the addition of the expanded capacity, KMP says its investment in the project now totals ~$232M.
Comments (7)
  • oldman83
    , contributor
    Comment (1) | Send Message
    Sell the farm, buy KMP.
    7 Aug 2014, 01:06 PM Reply Like
  • DontFollowMyAdviceImaDummy
    , contributor
    Comments (55) | Send Message
    Of course I sold the farm to buy KMI instead of KMP a month ago... looks like I guessed wrong, AGAIN...
    7 Aug 2014, 02:06 PM Reply Like
  • bquartararo06
    , contributor
    Comments (19) | Send Message
    Hang in on KMI... based on its yield/growth compared to peers should be a $42 stock. Take the reinvested dividends, watch the warrants get retired and await the end of the "timeout" the market has put on this stock.


    I am long ETE too and frankly scratch my head in wonderment at the difference in performance.
    7 Aug 2014, 06:09 PM Reply Like
  • scsurfer97
    , contributor
    Comments (33) | Send Message
    I'm also long KMI (and warrants) and wondering if the warrants aren't what is depressing share price. It's almost like at $40 there is a massive secondary coming when the warrants get exercised.


    I'll feel a whole lot better if/when the board authorizes another re-purchase.


    Would be nice to see an article solely on the KMI warrants and how they are affecting KMI share price (if at all).
    7 Aug 2014, 07:11 PM Reply Like
  • Ridin the ruble
    , contributor
    Comments (24) | Send Message
    Is this a good thing for IMO?
    7 Aug 2014, 02:40 PM Reply Like
  • oysters
    , contributor
    Comments (62) | Send Message
    At the last conference call the KM management said there are still 298 million warrants outstanding. That was in response to an analyst's (anal cyst?) question.


    It's a huge overhang, and there could be a possibility that they expire worthless. It might be an interesting race.
    7 Aug 2014, 10:28 PM Reply Like
  • scsurfer97
    , contributor
    Comments (33) | Send Message
    The warrant volume has really dried up again....I believe they've exhausted the repurchase authorization (there was a bit left as of the conference call) and I'm hoping to see another.
    8 Aug 2014, 09:32 AM Reply Like
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