TC’s spinoff is still on

Article Excerpt

TC ENERGY INC., $52.79, is a buy. The company (Toronto symbol TRP; Shares outstanding: 1.0 billion; Market cap: $54.3 billion; TSINetwork Rating: Above Average; Dividend yield: 7.1%; www.tcenergy.com) still plans to spin off its oil pipelines division as a separate, publicly traded company called South Bow Corp. The new firm gets 88% of its earnings before interest, taxes, depreciation and amortization (EBITDA) from long-term contracts with oil shippers, which cuts its risk. It also expects EBITDA will rise around 3% annually, from $1.4 billion in 2023 to $1.6 billion in 2026. TC has not yet announced the details of the spinoff but expects to complete the transaction in the second half of 2024. Investors will not be liable for capital gains taxes on their new shares until they sell them. The remaining operations will retain the TC Energy name and consist of its natural gas pipelines and electrical power generating stations. TC Energy is a buy. buy. …