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TC Energy (TRP) Meets Q4 Earnings Estimates, Hikes Dividend
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TC Energy’s (TRP - Free Report) fourth-quarter 2021 adjusted earnings of 84 cents per share matched the Zacks Consensus Estimate. The in-line results can be attributed to the solid performance of the U.S. Natural Gas Pipelines and Power and Storage segments, partially offset by the weakness of the Canadian Natural Gas Pipelines and Power and Storage units.
However, the bottom line worsened from the year-ago quarter’s figure of 88 cents per share.
TC Energy’s comparable EBITDA of C$2.4 billion in the September quarter was up from C$2.32 billion in the prior-year period.
This North America-based energy infrastructure provider’s quarterly revenues of $2.84 billion increased 12.3% year over year.
In good news for investors, TC Energy raised its quarterly dividend by 3.4% to 90 Canadian cents per share (or C$3.60 per share annualized). Highlighting the company’s long and consistent dividend paying record, TRP increased its payout in each of the last 22 years.
Segmental Information
Canadian Natural Gas Pipelines reported comparable EBITDA of C$674 million, down about 1.2% from the year-ago quarter’s levels. This decrease was the consequence of reduced flow-through depreciation and financial costs of Canadian Mainline.
U.S. Natural Gas Pipelines’ comparable EBITDA of C$1.03 billion reflects a 12.3% increase from the prior-year quarter’s level. This upside can be attributed to a net increase in comparable EBITDA from Columbia Gas due to higher transportation rates, which took effect from Feb 1, 2021.
Mexico Natural Gas Pipelines’ comparable EBITDA of C$151 million was down about 9% from the year-earlier quarter’s figure of C$166 million. This downside was primarily due to lower Sur de Texas earnings.
Liquids Pipelines unit’s comparable EBITDA of C$380 million in the reported quarter deteriorated from the year-earlier quarter’s level of C$408 million. This downtrend was due to the plummeting volumes on the U.S. Gulf Coast section of the Keystone Pipeline System. Power and Storage posted comparable EBITDA of C$177 million, up by almost 10% from the year-earlier quarter’s figure of C$161 million. The reason for this growth was increased earnings from Bruce Power due to higher volumes as well as a rise in Canadian Power earnings as a result of contributions from trading activities and greater realized margins.
Capital Expenditure and Balance Sheet
As of Dec 31, 2021, TC Energy’s capital investments summed C$1.62 billion. TRP had cash and cash equivalents worth C$673 million and long-term debt of C$37.3 billion, which represented debt-to-capitalization of 52.8%.
TC Energy Corporation Price, Consensus and EPS Surprise
In October 2021, TC Energy released its latest Report on Sustainability, which includes targets for all sustainability vows. The company set Scope 1 and Scope 2 Greenhouse gas (GHG) reduction targets, including reducing the emissions intensity from operations by 30% by 2030 and positioning to achieve net zero emissions from operations by 2050. In all operations and projects, TC Energy emphasized that it will remain committed to bringing down GHG emissions and building constructive, enduring relationships with communities and stakeholders for the coming decades.
TC Energy, which plans to spend approximately C$6.5 billion this year on growth initiatives, said that its 2.1 billion cubic feet per day Coastal GasLink project is 59% complete but cautioned investors about significant time and cost overruns.
Houston, TX-based Occidental Petroleum is an integrated oil and gas company with significant exploration and production exposure. As of the 2020 end, Occidental’s preliminary worldwide proved reserves totaled 2.91 billion barrels of oil equivalent (Boe) compared with 3.9 billion Boe at the 2019 end.
Occidental Petroleum’s earnings for 2022 are expected to surge 80.3% year over year. OXY witnessed four upward revisions in the past 30 days. It currently has a Zacks Style Score of B for Momentum and Growth. Occidental Petroleum beat the Zacks Consensus Estimate thrice in the last four quarters and missed the same once, with an earnings surprise of 13.7%, on average.
ConocoPhillips, based in Houston, TX, is primarily involved in the exploration and production of oil and natural gas. It reported fourth-quarter 2021 adjusted earnings per share of $2.27, beating the Zacks Consensus Estimate of $2.20.
ConocoPhillips’ earnings for 2022 are expected to soar 62.1% year over year. COP reported preliminary 2021 year-end proved reserves at 6.1 billion Boe. As of Dec 31, 2021, ConocoPhillips had $5,028 million in total cash and cash equivalents.
Marathon Petroleum Corporation is a leading independent refiner, transporter and marketer of petroleum products. It reported fourth-quarter 2021 adjusted earnings of $1.30 per share, which beat the Zacks Consensus Estimate of 47 cents.
Marathon Petroleum is expected to see an earnings growth of 129.8% in 2022. As of Dec 31, MPC had cash and cash equivalents of $5.3 billion. Marathon Petroleum repurchased shares worth $3 billion in the October-January period and has now completed around 55% of its target to buy back $10 billion in common stock. Further, to reward its shareholders, Marathon Petroleum announced a new $5-billion buyback program.
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TC Energy (TRP) Meets Q4 Earnings Estimates, Hikes Dividend
TC Energy’s (TRP - Free Report) fourth-quarter 2021 adjusted earnings of 84 cents per share matched the Zacks Consensus Estimate. The in-line results can be attributed to the solid performance of the U.S. Natural Gas Pipelines and Power and Storage segments, partially offset by the weakness of the Canadian Natural Gas Pipelines and Power and Storage units.
However, the bottom line worsened from the year-ago quarter’s figure of 88 cents per share.
TC Energy’s comparable EBITDA of C$2.4 billion in the September quarter was up from C$2.32 billion in the prior-year period.
This North America-based energy infrastructure provider’s quarterly revenues of $2.84 billion increased 12.3% year over year.
In good news for investors, TC Energy raised its quarterly dividend by 3.4% to 90 Canadian cents per share (or C$3.60 per share annualized). Highlighting the company’s long and consistent dividend paying record, TRP increased its payout in each of the last 22 years.
Segmental Information
Canadian Natural Gas Pipelines reported comparable EBITDA of C$674 million, down about 1.2% from the year-ago quarter’s levels. This decrease was the consequence of reduced flow-through depreciation and financial costs of Canadian Mainline.
U.S. Natural Gas Pipelines’ comparable EBITDA of C$1.03 billion reflects a 12.3% increase from the prior-year quarter’s level. This upside can be attributed to a net increase in comparable EBITDA from Columbia Gas due to higher transportation rates, which took effect from Feb 1, 2021.
Mexico Natural Gas Pipelines’ comparable EBITDA of C$151 million was down about 9% from the year-earlier quarter’s figure of C$166 million. This downside was primarily due to lower Sur de Texas earnings.
Liquids Pipelines unit’s comparable EBITDA of C$380 million in the reported quarter deteriorated from the year-earlier quarter’s level of C$408 million. This downtrend was due to the plummeting volumes on the U.S. Gulf Coast section of the Keystone Pipeline System.
Power and Storage posted comparable EBITDA of C$177 million, up by almost 10% from the year-earlier quarter’s figure of C$161 million. The reason for this growth was increased earnings from Bruce Power due to higher volumes as well as a rise in Canadian Power earnings as a result of contributions from trading activities and greater realized margins.
Capital Expenditure and Balance Sheet
As of Dec 31, 2021, TC Energy’s capital investments summed C$1.62 billion. TRP had cash and cash equivalents worth C$673 million and long-term debt of C$37.3 billion, which represented debt-to-capitalization of 52.8%.
TC Energy Corporation Price, Consensus and EPS Surprise
TC Energy Corporation price-consensus-eps-surprise-chart | TC Energy Corporation Quote
Key Updates
In October 2021, TC Energy released its latest Report on Sustainability, which includes targets for all sustainability vows. The company set Scope 1 and Scope 2 Greenhouse gas (GHG) reduction targets, including reducing the emissions intensity from operations by 30% by 2030 and positioning to achieve net zero emissions from operations by 2050. In all operations and projects, TC Energy emphasized that it will remain committed to bringing down GHG emissions and building constructive, enduring relationships with communities and stakeholders for the coming decades.
TC Energy, which plans to spend approximately C$6.5 billion this year on growth initiatives, said that its 2.1 billion cubic feet per day Coastal GasLink project is 59% complete but cautioned investors about significant time and cost overruns.
Zacks Rank & Key Picks
TC Energy currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space are Occidental Petroleum (OXY - Free Report) , ConocoPhillips (COP - Free Report) and Marathon Petroleum (MPC - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Houston, TX-based Occidental Petroleum is an integrated oil and gas company with significant exploration and production exposure. As of the 2020 end, Occidental’s preliminary worldwide proved reserves totaled 2.91 billion barrels of oil equivalent (Boe) compared with 3.9 billion Boe at the 2019 end.
Occidental Petroleum’s earnings for 2022 are expected to surge 80.3% year over year. OXY witnessed four upward revisions in the past 30 days. It currently has a Zacks Style Score of B for Momentum and Growth. Occidental Petroleum beat the Zacks Consensus Estimate thrice in the last four quarters and missed the same once, with an earnings surprise of 13.7%, on average.
ConocoPhillips, based in Houston, TX, is primarily involved in the exploration and production of oil and natural gas. It reported fourth-quarter 2021 adjusted earnings per share of $2.27, beating the Zacks Consensus Estimate of $2.20.
ConocoPhillips’ earnings for 2022 are expected to soar 62.1% year over year. COP reported preliminary 2021 year-end proved reserves at 6.1 billion Boe. As of Dec 31, 2021, ConocoPhillips had $5,028 million in total cash and cash equivalents.
Marathon Petroleum Corporation is a leading independent refiner, transporter and marketer of petroleum products. It reported fourth-quarter 2021 adjusted earnings of $1.30 per share, which beat the Zacks Consensus Estimate of 47 cents.
Marathon Petroleum is expected to see an earnings growth of 129.8% in 2022. As of Dec 31, MPC had cash and cash equivalents of $5.3 billion. Marathon Petroleum repurchased shares worth $3 billion in the October-January period and has now completed around 55% of its target to buy back $10 billion in common stock. Further, to reward its shareholders, Marathon Petroleum announced a new $5-billion buyback program.