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TC Energy (TRP) Q4 Earnings and Revenues Surpass Estimates
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TC Energy Corporation (TRP - Free Report) reported fourth-quarter 2023 adjusted earnings of 99 cents per share, which beat the Zacks Consensus Estimate of 79 cents. The bottom line also increased from 84 cents reported in the year-ago period. This outperformance can be attributed to the company's Canadian Natural Gas Pipelines, Liquids Pipelines, United States Natural Gas Pipelines and Power and Storage units' strong performance.
TC Energy’s comparable EBITDA of C$3.1 billion was up from C$2.7 billion reported in the prior-year quarter.
This North America-based energy infrastructure provider’s quarterly revenues of $3.11 billion beat the Zacks Consensus Estimate of $2.93 billion. The figure also increased 11.1% year over year due to solid segmental performances.
TRP’s board of directors announced a quarterly dividend of 96 Canadian cents per common share for the quarter ending Dec 31, 2023. The dividend is payable on Apr 30, 2024, to shareholders of record at the close of business on Mar 28, 2024. This represents a 3.2% increase from the prior dividend of 93 Canadian cents per common share.
TC Energy Corporation Price, Consensus and EPS Surprise
Canadian Natural Gas Pipelines reported a comparable EBITDA of C$1,034 million, up 34.6% from the year-ago quarter’s level. The figure also beat our projection of C$809.1 million.
The rise in EBITDA within Canadian Natural Gas Pipelines can be attributed mainly to increased flow-through costs on rate-regulated pipelines in Canada and higher earnings based on the rate base of the NGTL System.
U.S. Natural Gas Pipelines reported a comparable EBITDA of C$1,225 million, indicating a 7.4% increase from the prior-year quarter’s recorded number. The rise in U.S. dollar-denominated EBITDA from U.S. Natural Gas Pipelines stemmed from heightened net earnings resulting from new contracts in ANR and additional earnings generated by implemented growth projects. The figure, however, fell short of our expectations of C$1,840.7 million.
Mexico Natural Gas Pipelines reported a comparable EBITDA of C$208 million, down 1.4% from the year-ago quarter’s figure of C$211 million. The figure exceeded our prediction of C$202.9 million.
The decrease in U.S. dollar-denominated EBITDA from Mexico Natural Gas Pipelines was primarily due to lower earnings from Guadalajara as a result of lower fixed revenue and higher operating costs owing to weather conditions.
The Liquids Pipelines’ comparable EBITDA of C$379 million increased from the prior-year quarter’s level of C$364 million. The figure also exceeded our projection of C$349.7 million.
The growth in EBITDA within Liquids Pipelines is primarily a result of higher volumes on the Keystone Pipeline System.
Power and Storage registered a comparable EBITDA of C$256 million, up 26.1% from the year-ago quarter’s level of C$203 million. The figure also exceeded our projection of C$246 million.
Power and Energy Solutions' EBITDA increased due to higher realized Alberta natural gas storage spreads, higher contributions from Bruce Power, and improved Canadian Power financial results due to increased contributions from marketing activities.
Expenditure and Balance Sheet
As of Dec 31, 2023, TC Energy’s capital investments amounted to C$3 billion.
TRP had cash and cash equivalents worth C$1.97 billion and long-term debt of C$50 billion, with a debt-to-capitalization of 62.5%.
Key Updates
TRP anticipates 2024 capital expenditures in the range of C$8.5-C$9.0 billion, including capitalized interest, or in the band of C$8.0-C$8.5 billion net, after accounting for non-controlling interests.
The company anticipates 2024 comparable EBITDA between C$11.2 billion and C$11.5 billion. TRP expects comparable earnings per common share to be lower than the year-ago level due to the net impact of higher net income attributable to non-controlling interests as a result of the sale of a 40% non-controlling equity interest in Columbia Gas Transmission, LLC (Columbia Gas) and Columbia Gulf Transmission, LLC (Columbia Gulf) in 2023.
Subsea 7 is valued at $4.07 billion. The company currently pays a dividend of 38 cents per share, or 2.87%, on an annual basis.
SUBCY offers offshore project services for the energy industry, specializing in subsea field development, covering project management, design, engineering, procurement, fabrication, survey, installation and commissioning of seabed production facilities.
Energy Transfer is valued at $45.76 billion. The company currently pays a dividend of $1.26 per share, or 8.66%, on an annual basis.
ET is an independent energy company, principally engaged in the acquisition, exploration, development and production of crude oil and natural gas.
Murphy USA is valued at around $8.47 billion. In the past year, its shares have risen 45.2%.
MUSA is involved in the marketing of retail motor fuel products and convenience merchandise, operating retail stores under the brands Murphy USA, Murphy Express and QuickChek.
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TC Energy (TRP) Q4 Earnings and Revenues Surpass Estimates
TC Energy Corporation (TRP - Free Report) reported fourth-quarter 2023 adjusted earnings of 99 cents per share, which beat the Zacks Consensus Estimate of 79 cents. The bottom line also increased from 84 cents reported in the year-ago period. This outperformance can be attributed to the company's Canadian Natural Gas Pipelines, Liquids Pipelines, United States Natural Gas Pipelines and Power and Storage units' strong performance.
TC Energy’s comparable EBITDA of C$3.1 billion was up from C$2.7 billion reported in the prior-year quarter.
This North America-based energy infrastructure provider’s quarterly revenues of $3.11 billion beat the Zacks Consensus Estimate of $2.93 billion. The figure also increased 11.1% year over year due to solid segmental performances.
TRP’s board of directors announced a quarterly dividend of 96 Canadian cents per common share for the quarter ending Dec 31, 2023. The dividend is payable on Apr 30, 2024, to shareholders of record at the close of business on Mar 28, 2024. This represents a 3.2% increase from the prior dividend of 93 Canadian cents per common share.
TC Energy Corporation Price, Consensus and EPS Surprise
TC Energy Corporation price-consensus-eps-surprise-chart | TC Energy Corporation Quote
Segmental Information
Canadian Natural Gas Pipelines reported a comparable EBITDA of C$1,034 million, up 34.6% from the year-ago quarter’s level. The figure also beat our projection of C$809.1 million.
The rise in EBITDA within Canadian Natural Gas Pipelines can be attributed mainly to increased flow-through costs on rate-regulated pipelines in Canada and higher earnings based on the rate base of the NGTL System.
U.S. Natural Gas Pipelines reported a comparable EBITDA of C$1,225 million, indicating a 7.4% increase from the prior-year quarter’s recorded number. The rise in U.S. dollar-denominated EBITDA from U.S. Natural Gas Pipelines stemmed from heightened net earnings resulting from new contracts in ANR and additional earnings generated by implemented growth projects. The figure, however, fell short of our expectations of C$1,840.7 million.
Mexico Natural Gas Pipelines reported a comparable EBITDA of C$208 million, down 1.4% from the year-ago quarter’s figure of C$211 million. The figure exceeded our prediction of C$202.9 million.
The decrease in U.S. dollar-denominated EBITDA from Mexico Natural Gas Pipelines was primarily due to lower earnings from Guadalajara as a result of lower fixed revenue and higher operating costs owing to weather conditions.
The Liquids Pipelines’ comparable EBITDA of C$379 million increased from the prior-year quarter’s level of C$364 million. The figure also exceeded our projection of C$349.7 million.
The growth in EBITDA within Liquids Pipelines is primarily a result of higher volumes on the Keystone Pipeline System.
Power and Storage registered a comparable EBITDA of C$256 million, up 26.1% from the year-ago quarter’s level of C$203 million. The figure also exceeded our projection of C$246 million.
Power and Energy Solutions' EBITDA increased due to higher realized Alberta natural gas storage spreads, higher contributions from Bruce Power, and improved Canadian Power financial results due to increased contributions from marketing activities.
Expenditure and Balance Sheet
As of Dec 31, 2023, TC Energy’s capital investments amounted to C$3 billion.
TRP had cash and cash equivalents worth C$1.97 billion and long-term debt of C$50 billion, with a debt-to-capitalization of 62.5%.
Key Updates
TRP anticipates 2024 capital expenditures in the range of C$8.5-C$9.0 billion, including capitalized interest, or in the band of C$8.0-C$8.5 billion net, after accounting for non-controlling interests.
The company anticipates 2024 comparable EBITDA between C$11.2 billion and C$11.5 billion. TRP expects comparable earnings per common share to be lower than the year-ago level due to the net impact of higher net income attributable to non-controlling interests as a result of the sale of a 40% non-controlling equity interest in Columbia Gas Transmission, LLC (Columbia Gas) and Columbia Gulf Transmission, LLC (Columbia Gulf) in 2023.
Zacks Rank and Key Picks
Currently, TRP carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like Subsea 7 S.A. (SUBCY - Free Report) and Energy Transfer LP (ET - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and Murphy USA Inc. (MUSA - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Subsea 7 is valued at $4.07 billion. The company currently pays a dividend of 38 cents per share, or 2.87%, on an annual basis.
SUBCY offers offshore project services for the energy industry, specializing in subsea field development, covering project management, design, engineering, procurement, fabrication, survey, installation and commissioning of seabed production facilities.
Energy Transfer is valued at $45.76 billion. The company currently pays a dividend of $1.26 per share, or 8.66%, on an annual basis.
ET is an independent energy company, principally engaged in the acquisition, exploration, development and production of crude oil and natural gas.
Murphy USA is valued at around $8.47 billion. In the past year, its shares have risen 45.2%.
MUSA is involved in the marketing of retail motor fuel products and convenience merchandise, operating retail stores under the brands Murphy USA, Murphy Express and QuickChek.