Kinder Morgan Rose 1% in a Positive Week for the Energy Sector
KMI rose 1.1%
Kinder Morgan (KMI) rose 1.1% in the week ended September 15, 2017. Most of the energy sector stocks rose in the week as a result of gains in crude oil prices. Crude oil was up 5.1% while the Energy Select Sector SPDR ETF (XLE) rose 2.2% during the week. KMI’s midstream peer Enterprise Products Partners (EPD), however, fell 0.5% for the week. ONEOK (OKE) ended the week flat.
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The above graph shows the daily performance of KMI and peers in the last week. Learn more about current US crude oil supply and demand dynamics in Are US Crude Oil Supply and Demand Tightening?
Trans Mountain project
According to a Reuters report dated September 12, 2017, Desjardins, a lender in Kinder Morgan’s Trans Mountain expansion project, is considering pulling out of its funding commitment due to concerns related to the pipeline’s impact on the environment. Desjardins has a commitment amounting to ~$113 million for the expansion project. It expects to make a final decision by the end of September, according to the report.
Whether Desjardins’ decision will impact other lenders for the project remains to be seen. The project has seen strong opposition from environmentalists, as it involves extracting oil from oil sands, a process that is believed to result in much greater greenhouse gas emissions and requires much higher freshwater use than conventional methods. Learn more about Alberta’s oil sands reserves in KMI, ENB, TRP: Why Alberta’s Oil Reserves Are Vital.
Kinder Morgan recently selected contractors for the construction of the project. Learn more in Construction on KMI’s Trans Mountain Project to Begin This Month.
Let’s take a look at what KMI’s moving averages indicate about its possible future stock movements in the next part.