TC Pipelines LP

TC Pipelines LP's (TCLP - Analyst Report) share price has more than doubled over the last 7 months as energy prices have been on the upswing. Valuations, however, are still in check, trading in line with the overall market.

Company Description

TC Pipelines, with its subsidiaries, transports natural gas from western Canada to various of downstream markets in the United States. The company owns or has an ownership stake in pipelines spread throughout the West and has a market cap of $1.29 billion.

Shares of TCLP have been steadily rising since December of last year, more than doubling in price. The company is set to report its second-quarter results on July 23, giving investors a fresh look at how higher energy prices have effected the company's performance.

First-Quarter Results

TC's first-quarter results, reported in late April were solid in spite of temporarily depressed crude and natural gas prices.

Income came in at $31.8 million, $2 million shy of last year's number but relatively strong in light of the tough economy. Earnings came in at 82 cents per share, 4 cents better than the consensus estimate.

Distributions Up

The partnership noted that it distributed $27.7 million to its unit holders, up $2.1 million from last year.

Estimates Rising

Estimates are up a bit over the last few months, with the current year adding 7 cents to $2.55 per share.

Valuation

Based on this estimate, this stock has a P/E multiple of 14.5X, in line with the overall market.

The Chart

As previously mentioned, shares of TCLP have been advancing since late last year, climbing from $16 to a recent high above $32, an impressive 100% gain. Shares appear to be moving beyond a level of short-term resistance, take a look at the chart below.