New Mexican pipeline for TRP

Article Excerpt

TRANSCANADA CORP. $39.56 (Toronto symbol TRP; Shares outstanding: 691.7 million; Market cap: $27.9 billion; TSINetwork Rating: Above Average; Dividend yield: 4.3%; www.transcanada.com) has opened its second pipeline in Mexico. This new, 307-kilometre line pumps natural gas from the country’s west coast to another gas pipeline in Guadalajara. This new pipeline cost $360 million U.S. To put that in context, TransCanada earned $425 million (Canadian), or $0.61 a share, in the first three months of 2011. This is the eighth major project the company has launched this year. Mexico’s state-owned electric company has a 25-year contract for 100% of the pipeline’s capacity. That cuts the risk of this investment. TransCanada is a buy. buy…