Thomas Lott • 35 Comments
Tue, Nov. 1, 5:48 PM
- Alongside its Q3 earnings release, TransCanada (NYSE:TRP) announces an agreement to sell its U.S. Northeast power business, which it estimates to be worth $3.7B, to two buyers.
- TRP said earlier this year that it would sell the assets to finance its purchase of the Columbia Pipeline Group.
- TRP also agrees to buy all of Columbia Pipeline Partners (NYSE:CPPL) for $17/unit, or ~$915M; in September, it had offered to pay $15.75/unit, or $848M, for the MLP.
- TRP also says it will maintain full ownership interest in its Mexican natural gas pipeline business, and plans to raise $3.2B through a bought deal offering of common shares.
- The company says the moves, along with its stable base business and $25B of secured near-term growth, positions it to deliver an expected annual dividend growth rate at the upper end of previous guidance of 8%-10% through 2020.
- TRP -1.6% AH.
Mon, Sep. 26, 7:38 AM
- TransCanada (NYSE:TRP) offers to acquire Columbia Pipeline Partners (NYSE:CPPL) for $15.75/unit in cash, in a deal valued at ~$848M.
- TRP says its offer price represents an 11.3% premium to the 30-day average closing price on Sept. 23.
- Since closing its takeover of Columbia Pipeline Group in July, TRP has been reviewing the strategy for Columbia's MLPs, CPPL and TC Pipelines (NYSE:TCP).
- CPPL owns stakes in three regulated U.S. natural gas pipelines extending from New York to the Gulf of Mexico, plus natural gas storage systems and a portfolio of gathering and processing assets.
Tue, Mar. 29, 4:59 PM
- TransCanada's (NYSE:TRP) C$4.42B ($3.37B) capital raise to help fund its acquisition of Columbia Pipeline Group (NYSE:CPGX) ranks as the largest share sale in Canadian history, Bloomberg erports.
- The sale lifts announced equity financing in Canada’s energy industry to C$8.59B this year, up 66% Y/Y to mark the best start to the year since at least 1994, according to the report.
- In addition to TRP, other YTD offerings included a C$2.3B sale by Enbridge and C$300M offerings from Pembina Pipeline and Seven Generations Energy; Bloomberg says energy companies accounted for two thirds of the C$13.1B raised from stock sales in the country.
Wed, Mar. 23, 3:39 PM
- TransCanada (TRP -0.5%) is working with JPMorgan Chase to find buyers for more than $7B in assets to help finance its acquisition of Columbia Pipeline Group (CPGX +0.1%), Bloomberg reports.
- Assets reportedly for sale include a portfolio of U.S. Northeast merchant power plants, including the Ironwood natural gas power plant in Pennsylvania, the Ravenswood gas- and oil-fired generation plant in New York, hydroelectric power assets in New England, the Kibby wind power operation in Maine, and Ocean State Power gas generation facilities in Rhode Island; a minority stake in TRP’s Mexican natural gas pipeline business also is up for sale.
- The power plants could attract interest from P-E investors such as Blackstone, D.E. Shaw, Macquarie and Riverstone Holdings, as well as strategic peers including Calpine (CPN -2.8%) and NRG Energy (NRG -5.7%), Morningstar's Travis Miller says.
Fri, Mar. 18, 3:55 PM
- Columbia Pipeline Group (CPGX +5.9%) has surged today following TransCanada's (TRP -1.2%) $25.50/share takeover offer - no surprise there - but Columbia Pipeline Partners (CPPL -18.5%), CPGX's MLP, is trading nearly 20% lower.
- TRP said little about its plans for the MLP except that it would become the new general partner and own 46% of the units; TRP already has its own MLP - TC Pipeline (TCP -2.2%) - so its course for the Columbia partnership lacks clarity.
- Investors may be worried that TRP will buy up the MLP cheaply, leaving them on the hook for capital gains taxes that would cut into their returns, Hennessy Gas Utility Fund manager Skip Aylesworth tells Bloomberg.
- Barclays downgrades CPPL to Equal Weight from Overweight with a $15 price target, forecasting slower growth in the MLP’s investor payout under TRP’s control.
Thu, Mar. 17, 4:49 PM
- TransCanada (NYSE:TRP) agrees to acquire Columbia Pipeline Group (NYSE:CPGX) for $25.50/share in cash, an 11% premium based on CPGX's closing stock price yesterday, which values the deal at ~$13B, including the assumption of $2.8B of debt.
- TRP says CPGX's assets, which include natural gas pipelines in the Marcellus and Utica shale production areas, complement its existing North American footprint.
- TRP expects the acquisition to be accretive to EPS in the first full year of ownership; it expects to close the deal in H2 2016.
- Columbia says its Columbia Pipeline Partners (NYSE:CPPL) affiliate will remain a publicly traded partnership.
- To help fund the deal, TRP enters into syndicate agreement for a ~$4.21B bought deal offering of subscription receipts priced at $45.75/unit.
Thu, Mar. 10, 12:52 PM
- TransCanada (TRP -4.3%) responds to media reports suggesting a potential acquisition of Columbia Pipeline, saying it is in discussions with a third party but no agreement has been reached.
- Dow Jones reported about an hour ago that TRP and Columbia Pipeline (CPGX +15.8%) were in merger talks; TRP is just now coming off a trading halt, while CPGX continues to climb.
- A deal for CPGX would give TRP significant natural gas assets in the northeastern U.S.
Thu, Mar. 10, 11:44 AM
- TransCanada (TRP -3.6%) is in takeover talks with Columbia Pipeline (CPGX +12.9%), with a deal potentially announced in the coming weeks, WSJ reports.
- With a typical takeover premium and including CPGX’s nearly $3B debt load, a deal could be worth well in excess of $10B, according to the report.
- The role of Columbia Pipeline Partners (CPPL +2.5%) in any possible deal is not known.
Nov. 6, 2015, 8:15 AM
- TransCanada (NYSE:TRP) agrees to sell a 49.9% interest in Portland Natural Gas Limited Partnership its TC PipeLines (NYSE:TCP) MLP for $223M.
- PNGTS is a 295-mile interstate natural gas pipeline that connects with the TransQuebec and Maritimes Pipeline at the Canadian border near East Hereford, Quebec and delivers natural gas to customers in the U.S. northeast.
- TRP will continue to own an 11.8% interest in PNGTS.
Feb. 25, 2015, 8:59 AM
- TC Pipelines (NYSE:TCP) agrees to acquire the remaining 30% interest in Gas Transmission Northwest from its parent company, TransCanada (NYSE:TRP), in a $446M deal.
- The total includes $253M in cash, the assumption of $98M in proportional GTN debt and the issuance of $95M of new Class B units to TRP which will entitle TRP to a distribution based on 30% of GTN's annual cash distributions.
- GTN is a 1,353-mile pipeline that transports natural gas under long-term contracts from the Western Canada Sedimentary Basin and the Rocky Mountains to Washington, Oregon and California.
- TRP says the partnership has the capacity to complete dropdowns in excess of $1B/year.
Sep. 18, 2014, 2:27 PM
- TransCanada (TRP +2.3%) spikes on a Reuters report that it is emerging as a possible M&A target, with several U.S. activist hedge funds reviewing the pipeline operator as a break-up candidate.
- Discussions about a potential campaign are in the early stages, but some of TRP's largest shareholders are said to have been contacted by hedge funds interested in a shake-up.
- The actions also have sparked discussion by TRP's board about its strategic direction, according to the report.
Jun. 17, 2013, 10:59 AM
A 50% cut in Petrominerales' (PMGLF.PK) market value has left its equity and net debt valued at the cheapest multiple to profit among any oil and gas explorer in the world with a market value higher than $250M, according to Bloomberg, which speculates its reserves, estimated at 40M-plus barrels of mostly high-quality light oil, could attract suitors such as Enbridge (ENB), TransCanada (TRP) or Pacific Rubiales (PEGFF.PK).| Jun. 17, 2013, 10:59 AM | 3 Comments
Nov. 20, 2012, 5:02 PM