Company Update (NYSE:KMI): Kinder Morgan Inc Responds to Petition Regarding Trans Mountain Pipeline

Kinder Morgan Inc (NYSE:KMI), in response to a petition delivered during its annual shareholders’ meeting expressing opposition to the expansion of its existing Trans Mountain pipeline, is confirming its commitment to engage with Aboriginal communities and invites Tsleil-Waututh Nation to come to the table.

Kinder Morgan deeply respects aboriginal rights and title in Canada, and we acknowledge the Crown’s responsibility to consult with representatives of the First Nations.  We are committed to seeking input and engaging with as many individuals and groups as possible, to understand their interests.

Kinder Morgan Canada has made repeated attempts to reach out to and meet with the Chief and Council of the Tsleil-Waututh Nation, but to date, they have refused to engage. Kinder Morgan Canada continues to be open to such a dialogue with the Tsleil-Waututh, and is hopeful that they will now accept Kinder Morgan’s repeated requests for consultation.

There are many productive discussions happening both inside and outside the National Energy Board regulatory process with First Nations along the Trans Mountain pipeline. To date, Kinder Morgan Canada has engaged in consultations with approximately 133 First Nations.  We have had meaningful and positive conversations and obtained invaluable feedback that has made the Trans Mountain expansion project better.

Like the Tsleil-Waututh, Kinder Morgan appreciates the need for a healthy Salish Sea, and we are committed to safe and environmentally responsible operations.  Pipelines are the safest and most environmentally sound way to transport petroleum products, and Kinder Morgan’s safety and environmental performance is significantly better than the pipeline industry average.  We will continue to cooperate with the First Nations to share prosperity while minimizing impacts, and ensuring safe operations and appropriate response capabilities.

After receiving strong commitments from its customers, Kinder Morgan Canada, in April 2012, announced a proposed expansion of the Trans Mountain Pipeline system between Edmonton and Burnaby. In operation since 1953, the 1,150-km existing Trans Mountain Pipeline system has been responsibly providing the only West Coast access for Canadian oil products.

The proposed Trans Mountain Expansion Project, if approved by the National Energy Board (NEB), would increase the capacity of the pipeline to 890,000 barrels per day. The proposed expansion represents a capital investment of $5.4 billion. (Original Source)

Shares of Kinder Morgan opened today at $42.84 and are currently trading up at $43.00. KMI has a 1-year high of $44.71 and a 1-year low of $32.10. The stock’s 50-day moving average is $42.34 and its 200-day moving average is $40.51.

On the ratings front, Kinder Morgan has been the subject of a number of recent research reports. In a report issued on April 17, Credit Suisse analyst John Edwards maintained a Buy rating on KMI, with a price target of $52, which represents a potential upside of 21.4% from where the stock is currently trading. Separately, on April 8, Goldman Sachs’ Theodore Durbin assigned a Buy rating to the stock and has a price target of $48.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, John Edwards and Theodore Durbin have a total average return of 4.7% and 11.8% respectively. Edwards has a success rate of 49.6% and is ranked #975 out of 3596 analysts, while Durbin has a success rate of 74.2% and is ranked #737.

The street is mostly Bullish on KMI stock. Out of 4 analysts who cover the stock, 4 suggest a Buy rating . The 12-month average price target assigned to the stock is $50.00, which represents a potential upside of 16.7% from where the stock is currently trading.

Kinder Morgan, Inc., owns interests in an energy transportation and storage company. The Company, through its subsidiaries, owns and operates pipelines that transport natural gas, gasoline, crude oil, carbon dioxide and other products.

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