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TC Energy (TRP) Up 2.2% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for TC Energy (TRP - Free Report) . Shares have added about 2.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is TC Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
TC Energy's Q4 Earnings Match Estimates, Rise Y/Y
TC Energy’s 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 and the Power and Storage segments, partially offset by weakness of the Canadian Natural Gas Pipelines and Power and Storage segmentunits.
The bottom line, however, worsened from the year-ago quarter’s figure of 88 cents.
TRP’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 has 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, down about 9% from the year-earlier quarter’s figure of C$166 million. This downside was primarily attributable 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 because of the plummeting volumes on the U.S. Gulf Coast section of the Keystone Pipeline System.
Power and Storage posted a comparable EBITDA of C$177 million, up by almost 10% from the year-earlier quarter’s figure of C$161 million, reason for this growth can be due to increased earnings from Bruce Power, thanks to higher volumes as well as rise in Canadian Power earnings as result of contributions from trading activities and greater realized margins.
Capital Expenditures and Balance Sheet
As of Dec 31, 2021, TC Energy’s capital investments summed C$1.62 billion. Concurrently, TRP had cash and cash equivalents worth C$673 million and long-term debt of C$37.3 billion, which represented a debt-to-capitalization of 52.8%.
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 GHG reduction targets, including reducing the emissions intensity from operations 30% by 2030 and positioning to achieve net zero emissions from operations by 2050. In all our operations and projects. TRP emphasized that it will remain committed to bringing down GHG emissions and building constructive, enduring relationships with communities and stakeholders for the coming decades.
TRP, 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.
How Have Estimates Been Moving Since Then?
Estimates revision followed a flat path over the past two months.
VGM Scores
Currently, TC Energy has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
TC Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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TC Energy (TRP) Up 2.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for TC Energy (TRP - Free Report) . Shares have added about 2.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is TC Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
TC Energy's Q4 Earnings Match Estimates, Rise Y/Y
TC Energy’s 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 and the Power and Storage segments, partially offset by weakness of the Canadian Natural Gas Pipelines and Power and Storage segmentunits.
The bottom line, however, worsened from the year-ago quarter’s figure of 88 cents.
TRP’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 has 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, down about 9% from the year-earlier quarter’s figure of C$166 million. This downside was primarily attributable 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 because of the plummeting volumes on the U.S. Gulf Coast section of the Keystone Pipeline System.
Power and Storage posted a comparable EBITDA of C$177 million, up by almost 10% from the year-earlier quarter’s figure of C$161 million, reason for this growth can be due to increased earnings from Bruce Power, thanks to higher volumes as well as rise in Canadian Power earnings as result of contributions from trading activities and greater realized margins.
Capital Expenditures and Balance Sheet
As of Dec 31, 2021, TC Energy’s capital investments summed C$1.62 billion. Concurrently, TRP had cash and cash equivalents worth C$673 million and long-term debt of C$37.3 billion, which represented a debt-to-capitalization of 52.8%.
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 GHG reduction targets, including reducing the emissions intensity from operations 30% by 2030 and positioning to achieve net zero emissions from operations by 2050. In all our operations and projects. TRP emphasized that it will remain committed to bringing down GHG emissions and building constructive, enduring relationships with communities and stakeholders for the coming decades.
TRP, 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.
How Have Estimates Been Moving Since Then?
Estimates revision followed a flat path over the past two months.
VGM Scores
Currently, TC Energy has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
TC Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.