Yahoo Finance TransCanada (TRP) to Pay $9.5M as Pipeline Leak Expenses
TransCanada Corporation’s TRP Keystone crude oil pipeline had a leak in November 2017, which is almost double the initial projection. This makes it one of the biggest U.S. inland spills since 2010.
The company reported that about 9,700 barrels of oil were spilled on Nov 16, 2017 in rural South Dakota, up 94% from the original estimate of 5,000 barrels. However, the company did not disclose any details about the accident.
The Keystone crude oil pipeline, which is one of Canada's main crude export routes with a capacity of 590,000 barrel per day, was shut immediately following the incident. The pipeline connects Alberta's oil fields to U.S. refineries. However, operations commenced within two weeks of the spill.
Per the company’s spokesperson, necessary repairs have been made on the pipeline and a clean-up has been carried out.
Per a preliminary report, the pipeline is believed to have been damaged during construction in 2008. A final report is likely to be issued by the Pipeline and Hazardous Materials Safety Administration on the leak in the next few weeks. TransCanada is expected to bear leak expenses amounting to $9.57 million as per the federal agency.
The announcement came at a time when there is tremendous pressure from numerous environmental groups and other U.S. opponents, who are against the construction of another proposed pipeline, the long-delayed Keystone XL.
Price Performance
TransCanada’s shares have lost 15.3% in the last three months, compared with the industry’s 18.8% decline.
Zacks Rank & Key Picks
TransCanada carries a Zacks Rank #3 (Hold).
A few better-ranked players in the same sector are Continental Resources, Inc CLR, Northern Oil and Gas Inc NOG and SunCoke Energy Inc SXC. All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Continental Resources is an independent oil and natural gas exploration and production company. It delivered an average positive earnings surprise of 64.9% over the last four quarters.
Northern Oil and Gas, based in Minnetonka, MN, is an independent energy company. The company delivered an average positive earnings surprise of 175.00% during the same time frame.
SunCoke Energy produces metallurgical coke in the United States. The company delivered an average positive earnings surprise of 130.6% in the last four quarters.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Download it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SunCoke Energy, Inc. (SXC) : Free Stock Analysis Report
TransCanada Corporation (TRP) : Free Stock Analysis Report
Northern Oil and Gas, Inc. (NOG) : Free Stock Analysis Report
Continental Resources, Inc. (CLR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
