[frase]

TRP

Does anybody know the reason for the nice pop in Transcanada today?

 

[Eder]

I would think its the herd believing TRP is worth some $2,553,980,000 more today than yesterday. Efficient market theory and all that lol.

 

[like_to_retire]

Yeah, a bit funny for sure.

TRP up about 5% and ENB up about 4%.

Someone must know something about pipelines that I haven't read in the news.

ltr

 

[Dilbert]

Yes, PPL and IPL aren’t too shabby either!:tongue:

 

[like_to_retire]

I always find situations like that fascinating.

It shows how far out of the real picture the regular investor really is.

Insiders move an entire sector and we just get to sit and watch.

ltr

 

[dubmac]

I always find situations like that fascinating.

It shows how far out of the real picture the regular investor really is.

Insiders move an entire sector and we just get to sit and watch.

ltr

interesting. nice bounces. who knew!
I tried to find the skinny on why - but no success.
IPL, another pipeline, didn't do anything. so I don't know why ENB & TRP would go up, but not IPL.

 

[Mike-RetireEarly]

US taxes were the reason for the pop, Globe and Mail has a article: “Shares of TransCanada and Enbridge rose Thursday after U.S. energy regulators blunted possible negative tax effects for the owners of U.S. pipelines.”

https://www.theglobeandmail.com/investing/markets/inside-the-market/article-shares-in-transcanada-enbridge-surged-thursday-heres-why/?cmpid=rss

 

[newfoundlander61]

TC Energy selling three natural gas power plants to Ontario Power Generation. Source: Globe & Mail this evening. Opinions on how this is likely to effect the stock price if at all?

 

[AltaRed]

Likely negligible to slightly positive TC asset base is too large for this to move the needle.

 

[newfoundlander61]

Thankyou.

 

[agent99]

They do seem to be offloading a number of assets. The recent Canadian sale of $2.87B, sale of gas systems in USA $1.7B and a pipeline in Alberta for $1.15B and one other. Over $6Billion, I believe. About 9% of number for Property, plant and equipment in balance sheet if all those are C$ (Probably not) , so quite significant if numbers are correct.

Report I read said that they needed capital for other projects in their "pipeline". Not a bad thing if they are investing in projects they think will be more profitable.

 

[AltaRed]

In total, that is significant but not on an individual deal basis. I'd have to look at the TC website, but my take is TC may be busy investing in southern pipelines?

 

[agent99]

In total, that is significant but not on an individual deal basis. I'd have to look at the TC website, but my take is TC may be busy investing in southern pipelines?

This article has a bit more info:
https://thestarphoenix.com/commodities/tc-energy-strikes-a-2-87-billion-gas-plant-deal-with-ontario-power-generation/wcm/bcada3a4-2c05-42ca-b155-e42ffa430657

For example:

TC Energy now says it will sell off a total of $6.3 billion worth of assets in 2019 and use that cash to fund its growth program and “further strengthen its financial position.” The company had $35.8 billion in long-term debt at the end of the first quarter.

Still, he said the company would be using the funds to pay for “near-term” capital projects, which include the construction of the Coastal GasLink Pipeline, connecting gas production in British Columbia with the $40-billion LNG Canada project in Kitimat, B.C.

Long term hold for us in taxable account.

 

[doctrine]

TC is up something like 33% year to date and recently hit an all-time high. The company is doing well selling legacy assets and investing in new projects with higher returns on equity. As a result their payout ratio is very solid and relatively low ~40-42% (many mid-streamers at 60% or more).

 

[SixesAndSevens]

a very long term hold for me....i hope they are reinvesting the proceeds in projects in other countries like Mexico and further in South America...there is no growth in this sector in the Canadian market and the US will never let any Canadian company build energy infrastructure in the US...so the only growth area is Mexico and further south

 

[AltaRed]

Why not just go to the TC Energy website and look at https://www.tcenergy.com/globalassets/pdfs/investors/events/2019/tc-2019-agm-presentation.pdf

 

[dubmac]

Hallelujah!
https://www.cbc.ca/news/canada/calgary/nebraska-court-keystone-xl-approval-1.5257372

 

[AltaRed]

Only the Montana hurdle left.... absent civil disobedience aka DAPP style which may well manifest itself. TRP better start laying pipe Spring of 2020 and get spreads done in both Montana and Nebraska to be sure.

 

[newfoundlander61]

https://www.bnnbloomberg.ca/tc-energy-to-sell-65-stake-in-coastal-gaslink-to-kkr-aimco-1.1366943

 

[AltaRed]

https://www.bnnbloomberg.ca/tc-energy-to-sell-65-stake-in-coastal-gaslink-to-kkr-aimco-1.1366943

Plus potentially another 10% stake to First Nations entities. TC must believe it needs to reduce its exposure to having 2 pipeline projects at one time, i.e. Keystone XL and Coastal GasLink. Probably a sound decision given the sad state of pipeline project uncertainty these days.