We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TransCanada Inks Long-Term Pipeline Deal with Gas Producers
Read MoreHide Full Article
Calgary-based midstream company TransCanada Corporation (TRP - Free Report) recently announced that it has successfully concluded a long term, open season for the transportation of natural gas on the Canadian Mainline from Alberta to Southern Ontario. This has fetched the company long-term commitments from the Western Canada Sedimentary Basin (WCSB) gas producers to transport 1.5 petajoules of natural gas per day.
Various natural gas producers in British Columbia and Alberta have signed up for the 10-year contract for shipping gas to Eastern Canada after TransCanada has offered a simplified toll rate of 77 cents per gigajoule. The targeted in-service date for the deal is Nov 1, subject to approvals by regulator National Energy Board.
The agreement will enable TransCanada to utilize the capacity on the Canadian Mainline optimally. The Canadian Mainline had been underutilized till date owing to the rising U.S. shale supplies in the North East which had put the WCSB producers at a disadvantage as they had to pay higher fees to get their gas transported across the country. However, this move is likely to make the WCSB gas producers more competitive with their American counterparts. The deal is also expected to benefit communities and government by creating more job opportunities and driving the economic growth.
Zacks Rank and Other Stocks to Consider
Headquartered in Canada, TransCanada is engaged in the natural gas transmission and power services. The company’s pipeline transports the majority of Western Canada's natural gas to growing markets in Canada and the U.S. Currently, TransCanada carries a Zacks Rank #2 (Buy).
TransCanada has outperformed the Zacks categorized Oil & Gas Production and Pipeline industry over the last two years. During the aforesaid period, shares of the company rallied 6.4% while the broader industry declined around 21.4%.
Other favorably placed players in the industry include Energy Transfer Equity, L.P , Western Refining Logistics LP and Semgroup Corporation . All the three companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 stocks here.
Energy Transfer Equity is expected to deliver a year-over-year growth of 10.03% and 61.96% in its revenues and earnings in 2017.
Western Refining Logistics is expected to deliver a year-over-year growth of 9.68% and 33.41% in its revenues and earnings in 2017.
Semgroup reported positive average earnings surprise of 79.10% in the trailing four quarters.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research. It's not the one you think. See This Ticker Free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
TransCanada Inks Long-Term Pipeline Deal with Gas Producers
Calgary-based midstream company TransCanada Corporation (TRP - Free Report) recently announced that it has successfully concluded a long term, open season for the transportation of natural gas on the Canadian Mainline from Alberta to Southern Ontario. This has fetched the company long-term commitments from the Western Canada Sedimentary Basin (WCSB) gas producers to transport 1.5 petajoules of natural gas per day.
Various natural gas producers in British Columbia and Alberta have signed up for the 10-year contract for shipping gas to Eastern Canada after TransCanada has offered a simplified toll rate of 77 cents per gigajoule. The targeted in-service date for the deal is Nov 1, subject to approvals by regulator National Energy Board.
The agreement will enable TransCanada to utilize the capacity on the Canadian Mainline optimally. The Canadian Mainline had been underutilized till date owing to the rising U.S. shale supplies in the North East which had put the WCSB producers at a disadvantage as they had to pay higher fees to get their gas transported across the country. However, this move is likely to make the WCSB gas producers more competitive with their American counterparts. The deal is also expected to benefit communities and government by creating more job opportunities and driving the economic growth.
Zacks Rank and Other Stocks to Consider
Headquartered in Canada, TransCanada is engaged in the natural gas transmission and power services. The company’s pipeline transports the majority of Western Canada's natural gas to growing markets in Canada and the U.S. Currently, TransCanada carries a Zacks Rank #2 (Buy).
TransCanada has outperformed the Zacks categorized Oil & Gas Production and Pipeline industry over the last two years. During the aforesaid period, shares of the company rallied 6.4% while the broader industry declined around 21.4%.
Other favorably placed players in the industry include Energy Transfer Equity, L.P , Western Refining Logistics LP and Semgroup Corporation . All the three companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 stocks here.
Energy Transfer Equity is expected to deliver a year-over-year growth of 10.03% and 61.96% in its revenues and earnings in 2017.
Western Refining Logistics is expected to deliver a year-over-year growth of 9.68% and 33.41% in its revenues and earnings in 2017.
Semgroup reported positive average earnings surprise of 79.10% in the trailing four quarters.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research. It's not the one you think. See This Ticker Free >>