This Stock Is Soaring On Trump’s Dakota Pipeline Deal

Proposed Keystone XL Pipeline To Run From Canada To Gulf Of Mexico
Photo by Andrew Burton—Getty Images

Donald Trump just helped out the shares of a company he used to own—big time.

Shares of Energy Transfer Partners (ETP) rose more than 3% in midday trading, to a recent $38.50, on the heels of President Trump’s Tuesday executive order to revive the Dakota Access Pipeline project.

Investors have seemingly been encouraged by the revitalization of a project that seemed dead. Since news of President Trump’s order started to spread Tuesday, the company’s stock his risen more than 7.5%, hitting its highest level since mid-November.

The pipeline generated lots of headlines last year after the Standing Rock Sioux, a local native-American tribe, protested its construction over fears it would contaminate their source of drinking water. ETP’s share price crested in early August at $43.50, but once the controversy really started to become part of the public consciousness over the summer, the stock slowly started to slip. The price spiked again in mid-November, but dropped once the company announced it had been acquired by Sunoco Logistics in a $20 billion deal that some saw as undervaluing ETP. Less than two weeks after the merger announcement, then-President Obama issued a directive halting the pipeline project.

President Trump’s order reverses the Obama decision and paves the way for construction of the $3.7 billion pipeline that will be capable of transporting up to 570,000 barrels of oil a day. But despite the executive order, the resumption of construction may still take a while. Standing Rock Sioux tribal chairman David Archambault wasted little time in pledging legal action to prevent the restart of construction once news of President Trump’s order broke.

President Trump is a former investor in ETP. Records show he held between $15,001 and $50,000 in equity in the company when he disclosed the contents of his stock portfolio in June 2016. He had previously held more shares. In May 2015, a disclosure listed his holdings in the company to be worth between $500,000 and $1 million. He has since completely divested his entire stock portfolio.

Although he no longer stands to make a buck off the company, Trump does still have a connection to ETP. In June, the company’s CEO Kelcy Warren donated $100,000 to the Trump Victory Campaign, a fundraising committee jointly run by Trump’s campaign, the Republican National Committee, and several state parties, according to the Washington Post.

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