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TC Energy Corp TRP Stock Quote

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Morningstar‘s Stock Analysis TRP

Valuation
Currency in CAD
Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

TC Energy Agrees to Attractive Partnership With Mexico, Issues Shares to Fund New Pipeline

Stephen Ellis Sector Strategist

Analyst Note

| Stephen Ellis |

TC Energy has announced a wide-ranging and attractive partnership with Mexico’s state-owned utility, Comision Federal de Electricidad. The agreement resolves existing arbitration relating to multiple Mexican projects with the creation of a 30-year service agreement for all Mexican assets stretching out to 2055. It also introduces a new $4.5 billion pipeline at a very attractive multiple that will be included in the new service agreement and encourages CFE to work to address regulatory and community stakeholder issues by providing it with an equity stake in the partnership’s assets. To fund the pipeline, TC Energy is issuing CAD 1.8 billion of shares at CAD 63.50 each, though with an allotment option, the issuance could be up to CAD 2 billion. We think the benefits (long-term contracts and attractive investment multiples) more than outweigh the minimal dilution compared with our CAD 68 fair value estimate, which we expect to leave unchanged. Our narrow moat rating is also unchanged.

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Key Statistics TRP

Company Profile TRP

Business Description

TC Energy operates natural gas, oil, and power generation assets in Canada and the United States. The firm operates more than 60,000 miles of oil and gas pipelines, more than 650 billion cubic feet of natural gas storage, and about 4,200 megawatts of electric power.

Contact
450 - 1st Street SW
Calgary, AB, T2P 5H1, Canada
T +1 403 920-6411
Sector Energy
Industry Oil & Gas Midstream
Most Recent Earnings Jun 30, 2022
Fiscal Year End Dec 31, 2022
Stock Type
Employees 7,017