TransCanada $TRP Earnings Boost From U.S. Pipelines

Canadian gas pipeline giant TransCanada $TRP released better than expected second quarter 2017 financial results on Friday on Natural Gas and Liquids pipelines revenue boosts.

Canadian gas pipeline giant TransCanada $TRP released  better than expected second quarter 2017 financial results on Friday. The strength in its U.S. natural gas pipelines and liquids pipelines units helped lift the results Revenue from the company’s U.S. natural gas pipelines unit more than doubled to C$879 million.

Earnings:  Net income rose to C$881 million, or CAD$1.01 per share, compared with C$365 million, or 52 Canadian cents per share, a year earlier. On an adjusted basis CAD$76 per share beating analysts’ estimate of 69 Canadian cents per share, according to Thomson Reuters I/B/E/S. Revenue rose nearly 17 percent to C$3.22 billion.

Transcanada Corp Q2 2017 results included a $265 million after-tax net gain on monetization of U.S. Northeast power asset​s

Reaction: TC PIPELINES LP Common Stock NYSE: TRP  Open USD$56.43  –0.03 (-0.05%)

On Friday the company said  it will invest about C$160 million to expand the capacity of the Canadian Mainline System, to expand operations in Atlantic Canada. 

On Wednesday TransCanada said in the wake of cancellation of the Pacific Northwest LNG project the Company will be reimbursed by for full costs related to the Prince Rupert Gas Transmission project by Progress Energy, a subsidiary of Petronas. TransCanada expects to receive payments later this year.
While the company is best known to most for the controversial KeystoneXL Pipeline TRP is a massive pipeline company shipping oil, natural and gas and liquids.

About TransCanada

TransCanada has an ‘A’ credit rating and a low leverage ratio, with that the company has been able to position its self for the opportunities in a depressed Canadian oil and gas sector. TRP currently has $CAD 25 billion ($USD 19.7 billion) in projects at different stages. The bulk pf the projects backed by long-term contracts or regulated tariffs. 

Of note when TransCanada entered the shale gas market in the US northeast with the acquisition of Columbia Pipeline Group the company’s employee base in the United States surpassed Canada for the first time.

Natural Gas Pipelines

TRP has a 91,500-kilometre (56,900-mile) network of natural gas pipelines supplies more than 25 per cent of the clean-burning natural gas consumed daily across North America. This pipeline network strategically connects growing supply to key markets across our three operating geographies of Canada, the U.S. and Mexico. We are also the continent’s largest provider of natural gas storage, with 653 billion cubic feet of regulated and unregulated storage capacity.

Liquids Pipelines

TRP’s 4,300-kilometre (2,700-mile) Keystone Pipeline System transports 545,000 barrels of crude oil per day, or approximately 20 per cent of western Canadian exports to key refinery markets in the U.S. Midwest and Gulf Coast where it is converted into fuel and other useful petroleum products. Keystone has safely delivered more than 1.5 billion barrels since it began operation in June 2010.


TransCanada owns or has interests in 16 power generation facilities with capacity of 10,100 megawatts – enough to power more than 10 million homes. One-third of the power we provide is generated from emission-less sources including nuclear, wind and solar and we are leaders in the development and operation of high efficiency, natural gas-fired power facilities.

Source: TransCanada

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