TransCanada Corporation (TSE:TRP, Mkt cap 29.59B, P/E 17.72, Div/yield 0.52/4.98, EPS 2.36, Shares 708.95M) is nothing if not determined with its Keystone XL pipeline. On hearing that U.S. President Barack Obama had formally rejected the energy project on Friday (6 Nov.), the firm declared it was “absolutely committed” to seeing it through, the Financial Post reports.
“Today, misplaced symbolism was chosen over merit and science – rhetoric won out over reason,” TransCanada’s president and CEO Russ Girling told the media shortly after Obama’s White House news conference to announce his decision on the long-delayed pipeline.
Girling suggested that the fight to get the project off the ground didn’t end with the president’s rejection, with talk of a new application for a border-crossing pipeline being submitted. This, too, would require presidential approval.
The Keystone XL project has now been active for seven years, suffering setback after setback and consuming $2.8 billion of the company’s capital.
TransCanada had hoped a request to suspend the latest review would bide itself some time to apply for state-level approvals for its route through Nebraska.
However, documents released by the State Department on Friday revealed that the U.S. Secretary of State John Kerry had signed the recommendation to reject Keystone XL the next day, Tuesday.
Then on Wednesday, Kerry formally denied TransCanada’s suspension request, after he had recommended Obama reject the pipeline.
Obama rejected Keystone XL on the grounds that “shipping dirtier crude oil into this country would not increase America’s energy security.”
Commenting on the impact of the $2.8 billion that’s already been spent on the project, FirstEnergy Capital Corp. analyst Steven Paget said in a research note that TransCanada could write it off, which would have a one-time effect on its earnings.
TransCanada Corporation is a Canadian energy infrastructure company with head offices in Calgary, Alberta. The Company operates through three segments: Natural Gas Pipelines, Liquids Pipelines and Energy. Natural Gas Pipelines and Liquids Pipelines consist of its respective natural gas and liquids pipelines in Canada, the United States and Mexico, as well as its regulated natural gas storage operations in the United States. Its natural gas pipeline network transports natural gas to local distribution companies, power generation facilities and other businesses across Canada, the United States and Mexico. Its existing liquids pipeline infrastructure connects Alberta and the United States crude oil supplies to the United States refining markets in Illinois, Oklahoma and Texas, as well as connecting the United States crude oil supplies from the Cushing, Oklahoma hub to refining markets in the United States Gulf Coast. Energy includes its power operations and the non-regulated natural gas storage business in Canada. More from Reuters »
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