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.

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Comments (7)
  • oldman83
    , contributor
    Comment (1) | Send Message
     
    Sell the farm, buy KMP.
    7 Aug 2014, 01:06 PM Reply Like
  • DontFollowMyAdviceImaDummy
    , contributor
    Comments (136) | 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 (56) | 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 (36) | 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 (260) | Send Message
     
    Is this a good thing for IMO?
    7 Aug 2014, 02:40 PM Reply Like
  • Retired CFA
    , contributor
    Comments (304) | 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 (36) | 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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