TC Energy Corp

TRP: XTSE (CAN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	CAD 65.00	Rhyzlnc	Cxrhdhnzl

TC Energy: Splitting Off Liquids Assets Seems Like More Than Just Rearranging Deck Chairs

Stephen Ellis

Jul 28, 2023

TC Energy has announced it plans to spin off its liquids business (about CAD 1.5 billion in 2022 EBITDA) in a tax-free spinoff likely sometime in 2024. The liquids business is made up of just over 3,000 miles of crude oil pipeline infrastructure transporting Western Canadian Sedimentary Basin crude to U.S. refining markets. At first glance, we don’t expect a material impact to our CAD 63 and USD 48 per share fair value estimates and narrow moat rating.

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