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TC Energy Corp TRP

Morningstar Rating
CAD 53.09 −0.61 (1.14%)
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Company Report

TC Energy Earnings: Strong Results as Focus Turns to 2024 Asset Sales and Spinoff

TC Energy’s fourth-quarter and full-year results were a bit better than our expectations, primarily due to a performance-related payment of CAD 200 million for the effective completion of the Coastal GasLink pipeline. The payment boosted 2023 EBITDA to CAD 11 billion, up 11% over 2022 levels, and above our CAD 10.7 billion forecast. 2024 EBITDA is guided toward a midpoint of CAD 11.35 billion, compared with our CAD 11.1 billion forecast, reflecting projects placed in service in 2023 and anticipated new projects in 2024. We expect to maintain our CAD 63 and USD 46 fair value estimates and narrow moat ratings.

Price vs Fair Value

TRP is trading at a 16% discount.
Price
CAD 53.09
Fair Value
CAD 34.00
Uncertainty
Medium
1-Star Price
CAD 46.88
5-Star Price
CAD 73.30
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

TC Energy has strong growth opportunities in Mexican natural gas as well as liquefied natural gas.

Bears

The firm is still expected to rely on capital markets for about 20% of its spending program, while Canadian and U.S. peers are already generating free cash flow after dividends.

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News

Trading Information

Previous Close Price
CAD 53.70
Day Range
CAD 52.8953.80
52-Week Range
CAD 43.7057.02
Bid/Ask
CAD 53.08 / CAD 53.23
Market Cap
CAD 55.08 Bil
Volume/Avg
3.6 Mil / 6.0 Mil

Key Statistics

Price/Earnings (Normalized)
11.88
Price/Sales
3.31
Dividend Yield (Trailing)
7.01%
Dividend Yield (Forward)
7.23%
Total Yield
7.01%

Company Profile

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 4,300 megawatts of electric power.
Sector
Energy
Industry
Oil & Gas Midstream
Stock Style Box
Large Value
Total Number of Employees
7,415

Competitors

Valuation

Metric
TRP
ENB
PPL
Price/Earnings (Normalized)
11.8816.1117.62
Price/Book Value
1.691.721.86
Price/Sales
3.312.122.67
Price/Cash Flow
6.887.799.05
Price/Earnings
TRP
ENB
PPL

Financial Strength

Metric
TRP
ENB
PPL
Quick Ratio
0.680.620.29
Current Ratio
0.960.830.82
Interest Coverage
2.463.045.66
Quick Ratio
TRP
ENB
PPL

Profitability

Metric
TRP
ENB
PPL
Return on Assets (Normalized)
3.89%3.23%5.19%
Return on Equity (Normalized)
15.19%10.46%12.09%
Return on Invested Capital (Normalized)
6.59%6.00%7.45%
Return on Assets
TRP
ENB
PPL
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Oil & Gas Midstream Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
ENB
Enbridge IncRsxtcn$73.1 Bil
EPD
Enterprise Products Partners LPSsyby$59.5 Bil
ET
Energy Transfer LPDmy$49.5 Bil
OKE
ONEOK IncSppbqh$42.5 Bil
WMB
Williams Companies IncBjfym$42.2 Bil
TRP
TC Energy CorpFhkcnb$40.8 Bil
MPLX
MPLX LP Partnership UnitsJlkrw$39.4 Bil
KMI
Kinder Morgan Inc Class PVlvqvl$38.0 Bil
LNG
Cheniere Energy IncFlhh$36.4 Bil
CQP
Cheniere Energy Partners LPDvqts$24.7 Bil

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