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TC Energy Corporation (TRP) announced that it has recently encountered an obstacle that caused a delay in its deal to sell a minority stake in the NGTL System and the Foothills Pipeline assets to an indigenous-owned investment partnership in Canada. The deal, valued at C$1 billion, has been delayed owing to a transaction structuring issue. The deal, aimed at reducing TC Energy's debt, is a key part of the company's strategy to achieve its C$3 billion asset sale target for 2024. The deal, when completed, is ...

Core Viewpoint - TC Energy Corp is executing a tax-free spin-off of its Liquids Pipelines business into South Bow Corporation, allowing shareholders to retain their stake in TC Energy while gaining a proportional interest in South Bow [1][8][12] Spin-Off Details - The spin-off has received necessary tax rulings and approvals, set to take effect on October 1, 2024, with a record date of September 25, 2024 [2][9] - The spin-off ratio is 0.2:1, meaning shareholders will receive 0.2 shares of South Bow for each share of TC Energy [3][9] - Trading for TC Energy and South Bow shares will commence in 'due bill' markets and 'when-issued' trading on TSX from September 25, 2024, until October 1, 2024 [4][10] Company Focus Post Spin-Off - Post-separation, TC Energy will concentrate on Natural Gas Pipeline infrastructure and Power and Energy business, while South Bow will focus on Liquid Pipeline operations [1][13] - TC Energy's operations will include a 93,600 km natural gas pipeline network, addressing over 25% of North America's energy demands [19] Financial Overview - TC Energy's debt-to-EBITDA ratio is currently 5.1x, with a target to reduce it to 4.75x by 2024 through asset divestments and proceeds from the spin-off [19][27] - The anticipated proceeds from the spin-off are approximately C$8.0 billion, which will be used to repay debt [19] Growth Prospects - TC Energy's Natural Gas and Power business is expected to grow at a CAGR of 7.0%, with EBITDA projected to reach $11.2 billion by 2026 [20] - South Bow's liquid pipeline business is expected to grow at a slower rate of 2.0-3.0% CAGR, with EBITDA reaching $1.5 billion by 2026 [20][32] Valuation - TC Energy's fair value estimate is C$66.30 per share, with a target price of $48.75 per share, suggesting a 6.3% upside from the last closing price [7][33] - South Bow's fair value estimate is $10.90 per share, reflecting its high leverage and slower growth prospects [35]

Canada-based energy infrastructure provider TC Energy Corporation (TRP) is having a great run on the bourses lately. The stock closed Monday's session at $47.07 after setting a new 52-week high of $47.39 earlier on that day. As shown in this chart, with the advance, TRP shares are up more than 20% since the start of the year, handily outperforming the sector and the S&P 500. The company has also fared better than other midstream operators like Pembina Pipeline (PBA) and Kinder Morgan (KMI) . Image Source: Z ...

CALGARY, Alberta, Sept. 10, 2024 (GLOBE NEWSWIRE) -- News Release – TC Energy Corporation (TSX, NYSE: TRP) (TC Energy or the Company) is providing an update on its previously announced equity interest purchase transaction with an Indigenous-owned investment partnership (the Purchaser), which was formed to acquire a minority equity interest in the NGTL System and the Foothills Pipeline assets. The previously announced equity interest purchase transaction with the Purchaser has been delayed due to an identifi ...

Core Viewpoint - TC Energy Corporation is proceeding with the spinoff of its Liquids Pipelines business into a new entity named South Bow Corporation, with key dates and trading arrangements outlined for shareholders [1][2][3][4]. Group 1: Spinoff Details - The distribution record date for the spinoff is set for September 25, 2024, with the effective date expected to be October 1, 2024 [1][2]. - Shareholders of TC Energy will retain their interests in TC Energy while also receiving a pro rata interest in South Bow [1]. - The spinoff has received necessary tax rulings and approvals from shareholders and the court [2]. Group 2: Trading Arrangements - "Due bill" trading for TC Energy Common Shares will commence on September 25, 2024, and end on October 1, 2024, under the designation TRP on both TSX and NYSE [3]. - An "if, as and when issued" trading market will also be established for both TC Energy and South Bow Common Shares during the same period [4]. - Regular trading for TC Energy Common Shares will resume on October 2, 2024, while South Bow Common Shares are expected to begin trading on the TSX on the same date and on the NYSE around October 7, 2024 [5]. Group 3: Dividend Information - Both TC Energy and South Bow plan to declare independent dividends for the quarter ending December 31, 2024, on November 7, 2024, with payments expected on January 31, 2025 [6]. Group 4: South Bow Overview - South Bow is positioned as a strategic liquids pipelines company, connecting Canadian crude oil supply to U.S. refining markets, with a focus on disciplined capital allocation and sustainable dividends [9][13]. - The company operates 4,900 kilometers (3,045 miles) of crude oil pipeline infrastructure and aims to strengthen its financial position while pursuing low-risk investments [9][13].

CALGARY, Alberta, Aug. 28, 2024 (GLOBE NEWSWIRE) -- News Release — TC Energy Corporation (TSX, NYSE: TRP) (TC Energy) announced today that South Bow Corporation (South Bow) has closed a notes offering of approximately $7.9 billion Canadian-dollar equivalent in aggregate principal amount (the Notes Offering) related to the spinoff of TC Energy's Liquids Pipelines business (the spinoff Transaction). Establishing the independent, investment-grade debt capital structure was met with strong market interest and i ...

TC Energy Corporation (TRP) announced that it has concluded the sale of the Portland Natural Gas Transmission System ("PNGTS") along with its partner Northern New England Investment Company, which is a subsidiary of Énergir LP. The gross purchase price for the deal was $1.14 billion, including outstanding Senior Notes worth $250 million (held by PNGTS), which will be assumed by the buyers as part of the sale. These Senior Notes were previously consolidated on TC Energy's balance sheet. The cash proceeds fro ...

Core Viewpoint - The midstream sector has become an attractive investment opportunity post-pandemic, with companies like TC Energy positioned to benefit from stable, volume-based revenues and rising natural gas demand [2][22][23]. Industry Overview - Midstream companies own pipelines and related assets, providing income with low exposure to oil and gas price fluctuations, as they earn based on volumes transported [2][22]. - The midstream sector has shown significant recovery, with the Alerian MLP ETF (AMLP) returning 72% over the past three years, outperforming the S&P 500 [2][3]. TC Energy Corporation Highlights - TC Energy has returned 18% since being identified as a compelling investment, outperforming the S&P 500 by approximately 12 percentage points [4]. - The company is strategically positioned with infrastructure across the U.S., Canada, and Mexico, allowing it to capitalize on North American natural gas demand, projected to grow by nearly 40 billion cubic feet per day by 2035 [5][6][8]. - TC Energy plans to place approximately $7 billion in new assets into service in 2024 and an additional $9 billion in 2025 [8][10]. Financial Performance - In Q2 2024, TC Energy's comparable EBITDA rose by 9%, driven by growth in its Canadian, U.S., and Mexican natural gas pipelines [16]. - The company aims to reduce net debt to 4.75x EBITDA and grow comparable EBITDA to at least $11.2 billion [17]. - A dividend of $0.96 per common share was declared for Q3 2024, reflecting a 6.4% annualized yield, with a history of 24 consecutive years of dividend growth [18][19]. Strategic Initiatives - TC Energy is focusing on core operations through asset divestitures, totaling $2.6 billion, to strengthen its balance sheet [10]. - The company is progressing with the South Bow spin-off, expected to be completed in early Q4 2024, which will refocus TC Energy on natural gas [11][12][13]. - A five-year settlement agreement with NGTL customers is anticipated to contribute an additional $150 million to $200 million in annual EBITDA [14][15]. Valuation and Outlook - TC Energy's valuation remains attractive, with expected annual operating cash flow growth of 5-8% through at least 2026 [20]. - The company is projected to achieve an annual total return outlook of 11-13%, including dividends [21].

CALGARY, Alberta, Aug. 01, 2024 (GLOBE NEWSWIRE) -- News Release – TC Energy Corporation (TSX, NYSE: TRP) (TC Energy or the Company) today announced that its Board of Directors (Board) declared a quarterly dividend of $0.96 per common share for the quarter ending Sept. 30, 2024, on the Company's outstanding common shares. The common share dividend is payable on Oct. 31, 2024, to shareholders of record at the close of business on Sept. 27, 2024. The Board also declared quarterly dividends on the outstanding ...