Topic: How To Invest

The Successful Investor Hotline – Friday, November 22, 2024

Article Excerpt

TC ENERGY INC., $69.65, Toronto symbol TRP, is a buy. On October 1, 2024, the company completed the spinoff of its oil pipeline business as separate company South Bow Corp. (see below). Investors received 0.2 of a South Bow share for every TC share they held. They will not be liable for capital gains taxes until they sell their new shares. The remaining company generates steady cash flow for investors mainly through a 93,300-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S. It also owns gas pipelines in Mexico, and owns or invests in seven power plants in Canada and the U.S. TC plans to start-up $7 billion of new projects in 2024, and a further $8.5 billion worth in 2025. In all, it plans to spend $28 billion on new projects and upgrades through 2030. Those new projects include $800 million U.S. for pipelines that will supply gas to two U.S. power plants that are phasing out…