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TransCanada Corporation (TRP)

  • Sep. 3, 2014, 2:49 PM
    • Kinder Morgan's (KMI, KMP) expansion of the Trans Mountain conduit linking Canada's oil sands to the Pacific is beginning to face the same kind of backlash that turned TransCanada's (NYSE:TRP) proposed Keystone XL pipeline to the Gulf coast into a proxy battle against climate change, according to a Bloomberg report.
    • The mounting opposition threatens KMI’s largest project, which represents 30% of its investment plan.
    • "The environmental movement has realized that one front in the climate change battle is trying to delay or deny pipelines,” says Morningstar's Jason Stevens. "If it gets stymied out for a long, long time, it’s a big chunk of cash flow five years out that won’t materialize."
  • Aug. 28, 2014, 6:38 AM
    • Keith Benes, a U.S. State Department lawyer who played a key role in the Keystone XL pipeline review is moving on, marking the latest senior official to depart from TransCanada's (NYSE:TRP) long-delayed project.
    • The move could spark some fresh conversations about Keystone XL, prior to the lawsuits and rulings that will come about later this year.
    • Benes' review concluded that the pipeline might encourage Canadian oil sands development, but would not meaningfully worsen global climate change.
  • Aug. 26, 2014, 2:46 PM
    • The legal dispute over the proposed path for the Keystone XL pipeline in Nebraska is made to order for Pres. Obama in a congressional election year, giving him leeway to hold off on deciding the fate of the project until after November.
    • Next Friday, the Nebraska Supreme Court will begin hearing oral arguments over whether a 2012 law giving Nebraska's governor authority to approve the state’s portion of the Canada-to-Texas oil sands pipeline violates the state constitution.
    • If the Court upholds a lower court ruling favoring landowners, TransCanada (NYSE:TRP) would have to convince the state’s Public Service Commission to approve the proposed route, which could take six to nine months.
  • Aug. 25, 2014, 9:47 AM
    • TransCanada (TRP +1.7%) opens higher after a favorable weekend report from Barron's, which says that even without the $5.4B Keystone XL pipeline, the company boasts an industry-leading $30B backlog of projects in the works.
    • TRP shares aren't cheap based on reported earnings, trading at ~23x estimated 2014 after-tax profit, but TRP has a strong growth outlook - management sees EBITDA nearly doubling by the end of the decade - and the shares fetch just 12x estimated 2015 EBITDA.
    • Investors have given TRP little credit for its conservative dividend policy, which pays out a third of its cash flow in dividends while retaining funds to reinvest in its capital program.; there's speculation that TRP, whose current investor base is dominated by Canadian institutional holders, could attract a U.S. activist investor who would push for a more generous dividend and a separation of the pipeline and power-generating assets.
  • Aug. 12, 2014, 2:04 AM
    • Arguments over the planned route of TransCanada's (NYSE:TRP) Keystone XL $5.4B pipeline will soon be heard by the Nebraska Supreme Court, but a ruling regarding the controversial project is likely to be delayed until next year.
    • Now in its sixth year of debate, the pipeline continues to face opposition from politicians, landowners and regulators, and ultimately lies in the hands of President Obama to make a final decision on whether to approve or veto the project.
  • Aug. 11, 2014, 8:58 AM
    • The Keystone XL pipeline (NYSE:TRP) could produce 4x more global warming pollution than estimated earlier this year by the U.S. State Department, according to a new study from scientists at the Stockholm Environment Institute.
    • The researchers estimate the proposed pipeline, which would carry oil from tar sands in western Canada to refineries on the Gulf coast, would increase world greenhouse gas emissions by as much as 121M/year of carbon dioxide; the State Department had figured that Keystone XL would increase world carbon dioxide emissions by no more than 30M tons.
    • The American Petroleum Institute says the study is irrelevant because regardless of the pipeline, the tar sands will be developed and oil will be shipped by railroad if not by pipeline.
  • Jul. 31, 2014, 3:04 PM
    • TransCanada (NYSE:TRP) declares $0.48/share quarterly dividend, in line with previous.
    • Forward yield 3.81%
    • Payable Oct. 31; for shareholders of record Sept. 30; ex-div Sept. 26.
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  • Jul. 31, 2014, 2:32 PM
    • TransCanada (NYSE:TRP): Q2 EPS of $0.47 misses by $0.02.
    • Revenue of $2.23B (+10.9% Y/Y) misses by $30M.
    • Press Release
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  • Jul. 30, 2014, 12:11 PM
    • TransCanada (TRP -1.2%) says it expects to file an application for its proposed $12B Energy East project as soon as next month.
    • The 1.1M bbl/day project would provide a new outlet for Alberta’s landlocked crude, feeding eastern refineries and connect Alberta to international markets via a marine terminal at St. John, N.B.
    • Stung by opposition to its Keystone XL project, TRP has been engaged in a charm offensive to get municipalities and aboriginal groups on its side amid rising opposition from environmental groups.
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  • Jul. 28, 2014, 2:44 PM
    • TransCanada (TRP +0.2%) is downgraded to Neutral from Outperform with a $58 price target at Credit Suisse, which sees poor risk-reward going into quarterly results due to declines in selected forward power markets and TRP's plan to gradually improve capital efficiencies.
    • Credit Suisse sees a slow procession toward improved capital efficiency, which is causing the firm to put a lower probability on more radical restructuring.
    • Nevertheless, the downgrade highlighted TRP's asset base as well positioned to take advantage of investment themes surrounding the Alberta oil sands, west coast LNG and low-cost generation exposure in tight power markets.
  • Jul. 23, 2014, 12:47 PM
    • TransCanada (TRP +0.4%) says Alberta's energy regulator has approved its application to build and operate the C$800M Northern Courier pipeline project.
    • TRP says the 56-mile pipeline will carry bitumen and diluent products between the Fort Hills oil sands mine and Suncor's (NYSE:SU) East Tank Farm north of Fort McMurray, Alberta; it is expected to be in service by 2017.
    • TRP says Northern Courier is an important part of its capital growth plan, which includes C$38B of commercially secured projects expected to be completed by the end of the decade.
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  • Jul. 12, 2014, 8:25 AM
    • The problem facing Canada isn't the Keystone pipeline or Pres. Obama or environmentalists - it's the oil sands, and they've got to be cleaned up and the head-in-the-sand denials chased way or the country will be stuck with a "baby seal hunt" image, Diane Francis writes in the Financial Post.
    • The columnist thinks she knows the right person to lead the clean-up: Jeff Immelt - "an American leader with stature in Washington, on Wall Street, in the oil patch and in Silicon Valley" - who said this week that GE will help companies clean up the oil sands.
    • The only way to stop the environmental excuses, Immelt believes, is for the industry to collaborate and voluntarily establish lower emissions targets that would make the oil sands competitive with any other fuel source in the world - without such a promise to provide cleaner energy, "all bets are off."
    • Some related companies: XOM, IMO, SU, RDS.A, RDS.B. ENB, TRP, CNQ, CVE, CVX, COP, BP, KMP, WPZ, TOT, STO, CEO, SNP, PTR, HUSKF, ATHOF, COSWF.
  • Jul. 10, 2014, 9:56 AM
    • Enbridge (ENB -0.5%) says it is in talks with Alaska about building a pipeline to ship natural gas from the North Slope, describing the project as a potential alternative to an Alaskan pipeline project backed by rival TransCanada (TRP -0.6%).
    • The proposed $7.7B project would carry ~500M cf/day of gas from Prudhoe Bay to Point MacKenzie, with a spur line to Fairbanks, and aim to start up by late 2020; it would mostly serve to offset declining gas production from the Cook Inlet.
    • Alaska is weighing the project as a backup if a competing proposal from TRP fails to move ahead.
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  • Jul. 9, 2014, 7:10 PM
    • The Nebraska Supreme Court is not expected to hear a challenge to the Keystone XL (TRP) pipeline's route until early September, which could delay a final decision on the controversial pipeline until after the fall elections.
    • However, some attorneys who had expected an October hearing now say the new timetable could move the court’s decision forward; if the Nebraska justices grant the appeal, which would approve the pipeline’s route through the state, before the Nov. 4 elections, it could be an unwanted October surprise for Pres. Obama.
  • Jul. 8, 2014, 11:43 AM
    • Forty-four groups representing oil companies, truckers, manufacturers and other interests implore Sec. of State Kerry for the Obama administration to approve the Keystone XL pipeline (TRP -0.2%).
    • “There is no reason for the president to delay issuing the cross-border permit due to a state appellate court proceeding,” the groups say in a letter to Kerry.
    • Legislation pending on Capitol Hill would immediately permit the project, but it is unlikely the Senate will take up the issue before the mid-term elections in November.
  • Jul. 3, 2014, 4:49 PM
    • The state of Alaska and four energy firms sign a joint venture agreement to begin preliminary work on an 800-mile natural gas pipeline from the North Slope to a liquefied natural gas export plant.
    • The agreement calls for partners to invest millions in front-end engineering and design work over the next 18 months for the project, which ultimately could cost $45B-$65B.
    • The deal comes two months after Alaska's legislature backed Gov. Parnell's plan to work with Exxon Mobil (XOM), ConocoPhillips (COP) and BP plus pipeline company TransCanada (TRP) on a project development contract.
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Company Description
TransCanada Corporation is an energy infrastructure company. The Company operates in three business segments: Natural Gas Pipelines, Liquid Pipelines and Energy.
Sector: Utilities
Industry: Gas Utilities
Country: Canada