More progress on Energy East

Article Excerpt

TRANSCANADA CORP. $43.86 (Toronto symbol TRP; Shares outstanding: 708.9 million; Market cap: $31.2 billion; TSINetwork Rating: Above Average; Dividend yield: 4.7%; www.transcanada.com) wants to build the Energy East pipeline, which would pump oil from Alberta to Eastern Canadian refineries. The plan involves converting parts of its existing natural gas pipeline to handle oil. The company recently signed deals with three major gas distributors (two in Ontario and one in Quebec) that ensure the project will not cut their gas supplies or increase their costs. As part of this agreement, TransCanada will add new, smaller gas pipelines to replace the portions of the main gas line it will convert to oil. These deals help cut Energy East’s risk. The project faces strong environmental and political opposition, but if regulators approve the new line, it could start up in 2020. TransCanada is a buy. buy…