Why Kinder Morgan Rose 3% Last Week

Kinder Morgan (KMI) rose 2.9% in the week ended Monday, June 5, 2017, recovering from some of its previous losses. It fell 5.6% in the week ended May 29, 2017. On May 30, 2017, KMI fell significantly when it became a critical issue for British Columbia’s Green Party, which is not in favor of its Trans Mountain Pipeline System expansion project.

However, as the above graph shows, KMI recovered a bit on May 31 and June 1, remaining stable over the last two trading sessions.

On May 30, 2017, Kinder Morgan announced the completion of its Canadian unit’s IPO (initial public offering) of 102.9 million restricted shares for proceeds of $1.75 billion Canadian. The company intends to use the proceeds to partially fund its Trans Mountain Pipeline System expansion project. According to the company, it has all the necessary permits and approvals for the expansion project, which has already been approved by the Canadian government.

Enterprise Products Partners (EPD) and Oneok (OKE) fell 0.10% and 1.1%, respectively, for the week ended Monday, June 5, 2017. The Energy Select Sector SPDR ETF (XLE) fell 0.80%, and the SPDR S&P 500 ETF (SPY) (SPX-INDEX) rose 1.0% during that period.

Next, let’s take a look at what Kinder Morgan’s moving averages indicate.