Oil pressure cut keeps pipeline on track

Article Excerpt

TRANSCANADA CORP. $36 (Toronto symbol TRP; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 690.0 million; Market cap: $24.8 billion; Price-to-sales ratio: 3.0; Dividend yield: 4.4%; SI Rating: Above Average) recently began pumping crude oil from Alberta to refineries in the U.S. Midwest through the first phase of its $12-billion U.S. Keystone pipeline project. It is now building the second phase, which should begin operating in 2011. TransCanada plans to add a third phase to this project. Called Keystone XL, this new pipeline will supply oil refineries in Texas. U.S. environmentalists and politicians have criticized Keystone XL. In response, TransCanada will reduce the pressure of the oil in the pipeline. That will lower the line’s capacity, but it should help TransCanada secure approval for the project. The company hopes to complete Keystone XL by the end of 2013. TransCanada is a buy. buy…