- Energy Transfer Partners (ETP -3.4%) and Sunoco Logistics Partners (SXL -3.5%) open lower after the U.S. Army Corps of Engineers refused a crucial permit needed for completion of their $3.7B Dakota Access pipeline project, which said the companies would need to consider alternative routes other than passing under Lake Oahe; also ETE -1.8%.
- In an angry statement, the companies say the decision is "a purely political action... the latest in a series of overt and transparent political actions by an administration which has abandoned the rule of law in favor of currying favor with a narrow and extreme political constituency."
- Analysts generally agree that a Trump administration eventually will approve the project but warn that investors should be aware of headline pressure on Dakota names including EOG Resources (EOG +1.8%), Marathon Oil (MRO +2.2%), Whiting Petroleum (WLL +2.4%), Continental Resources (CLR +1%) and Hess (HES +3.5%).