The obvious play is all of this mess is TRP stock. The firm has sunk billions into developing the project, and an approval would send shares flying. More importantly, the Keystone’s steady flow of crude oil are just the kind of assets that pipeline owners love — i.e., they generate huge cash flows.
Cash flows from the completed Keystone XL will be almost immediately accretive to TRP shares because the dragged-out approval process has allowed TransCanada to essentially save up enough cash to fund/build the project outright. Plus, TRP doesn’t plan on issuing too much debt to make it happen.
Aside from the potential capital appreciation in TRP stock, investors could be treated to some hefty dividend increases from the pipeline firm. Already, TransCanada yields a very healthy 3.9%.