TC Energy formerly TransCanada (Symbol-TRP)

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DenisD
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Re: TransCanada (Symbol-TRP)

Post by DenisD »

2 yen wrote:Makes that cut seem like ancient history.
I remember it well. I started my Dogs of the TSX near the end of October, 1999 with TRP. I was buying one company/month. In December, this happened:

TransCanada stock drops after dividend cut
The stock dropped $2 in early trading and by the end of the day was down $2.45 to $13.00
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Shakespeare
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Re: TransCanada (Symbol-TRP)

Post by Shakespeare »

TransCanada strikes deal to buy Columbia for $10.2-billion - The Globe and Mail
TransCanada Corp. has agreed to buy Columbia Pipeline Group for $10.2-billion (U.S.), a deal that will give it a major position in the massive Marcellus shale gas region in the U.S. Northeast.
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Shakespeare
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Re: TransCanada (Symbol-TRP)

Post by Shakespeare »

Redirected to more appropriate thread,
StuBee wrote:Here we go again... TRP has announced a 10B$ acquisition, an American NG transporter called Columbia. They have paid a hefty premium (around 30%). TRP has also issued 4B$ in new shares (about 10% of there float) at about 4$ below todays closing.

They appear to have sound (though perhaps defensive) reasons for doing this.

Question: Does this have any impact on the "Canadian Mainline" which is currently being considered for conversion to oil transport for Energy East?

<RANT> I say turn the Canadian Mainline around, suck us easterners dry, and feed the west as they convert from coal to other forms of electricity generation :twisted: <END RANT>

I imagine that my outburst does not make any sense... But this whole Energy East "experiment" is turning into a "pipeline project that will never happen".

StuBee

OOPS :? my bad...I had not seen that there was already a TRP thread...
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Shakespeare
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Re: TransCanada (Symbol-TRP)

Post by Shakespeare »

I was wondering if TRP was now a 40-50 range trader and was thinking of selling 100....
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StuBee
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Re: TransCanada (Symbol-TRP)

Post by StuBee »

Thanks Shakespeare (Of course, I should have been able to do that :oops: ...)
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AltaRed
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Re: TransCanada (Symbol-TRP)

Post by AltaRed »

Guess if Canada is too stupid to recognize where their bread and butter really comes from, companies will go elsewhere for opportunities.

Not exactly sure what Columbia will do for TRP albeit they are pretty central to the Marcellus shale and are interconnected with each other to some degree. But their mainline systems from the Gulf Coast have to be getting a bit long in the tooth and maybe not running full (my speculation only).
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Shakespeare
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Re: TransCanada (Symbol-TRP)

Post by Shakespeare »

There was speculation a while back that Columbia was eating into TRP's Ontario market.

Added: TransCanada strikes deal to buy Columbia Pipeline for $10.2-billion - The Globe and Mail updated story says that
The takeover, which also includes the assumption of $2.8-billion (U.S.) of Columbia’s debt, helps solve a thorny problem for TransCanada’s decades-old west-to-east gas transport franchise. It has been threatened by rapid growth in the Marcellus shale formation over the past decade, which undercut the company’s share of the lucrative U.S. Northeast market
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StuBee
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Re: TransCanada (Symbol-TRP)

Post by StuBee »

Here is another theory (for what little I know):

Columbia through Marcellus and Utica has been very active in NE United States (and doing what Shakespeare has quoted). However, Columbia also owns (and is expanding) a connection with the gulf coast and their LNG facilities (exportation???).

Perhaps the Canadian mainline can be "rededicated" to serving eastern Canada (effectively killing EE) and the Marcellus/Utica production can be sent towards the Gulf of Mexico (finally tidewater!!...)
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Shakespeare
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Re: TransCanada (Symbol-TRP)

Post by Shakespeare »

Remember that the States also suffers from YCBNN*. That means existing pipelines have additional worth.



*You Can't Build Nothing Nowhere.
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Re: TransCanada (Symbol-TRP)

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Shakespeare
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Re: TransCanada (Symbol-TRP)

Post by Shakespeare »

702 million shares. 92 or 96.5 newbies. Max 13.7% :( .
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Re: TransCanada (Symbol-TRP)

Post by JaydoubleU »

Also represents a massive dividend increase, but not for existing shareholders.

Underwritten by RBC and TD, I see. I expect to see shortly some glowing analyst reports from RBC and TD praising the merits of the "transformational" deal which they will characterize as "fairly priced" as they hawk the shares and raise their target prices on TRP . . . :twisted:

Just being cynical here. I am not sure yet what to make of it. I do think TRP and ENB need to diversify away from the big projects in Canada that no one seems to want, but I also believe they should be embracing renewables, because that's where a lot of government and institutional money is going to go in the coming years.
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Re: TransCanada (Symbol-TRP)

Post by Shakespeare »

NG is an intermediate step from coal to renewables and should be viable for some years - barring cold fusion or Douglas-Martin sunscreens.
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AltaRed
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Re: TransCanada (Symbol-TRP)

Post by AltaRed »

It is going to take some solid government policy initiatives to make renewables worth putting in money 'up front' versus 'pay as you go'. For example, Norway had generous policy initiatives to encourage electric cars, e.g. tax breaks plus filling stations plus ?? plus ?? and then provided some compensation to the electrical transmission system to strengthen itself for unpredictable electrical surges. Only then will industry commit to the capital needed. As of now, Canada is just putting on the lipstick for show with no assurrances for corporate shareholders.
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Re: TransCanada (Symbol-TRP)

Post by JaydoubleU »

It is going to take some solid government policy initiatives to make renewables worth putting in money 'up front' versus 'pay as you go'.
I think w are seeing some of those initiatives coming from Quebec, Ontario, and BC; and now Alberta and Saskatchewan have made some bold announcements. I wouldn't be making the argument for 100% renewables, but increasing the weighting, say from 5% to 10%, represents a huge increase; billions of new investment. A lot of that money will come from investment dollars / tax incentives that are NOT going towards fossil fuels.

I'm trying to think like an investor here - follow the money
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AltaRed
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Re: TransCanada (Symbol-TRP)

Post by AltaRed »

I have to see it first. For example, transmission capacity for Southern Alberta wind farms lagged the actual installation of the turbines for a number of years. Until substance is underway, capital is only cautiously invested and only when the investor believes it is real. IOW, show me the money and then we can follow the money.
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JaydoubleU
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Re: TransCanada (Symbol-TRP)

Post by JaydoubleU »

Just curious, did the announcement come after market close? I see the news release at about 5 pm. Correct?

I am wondering if TRP will drop tomorrow.
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Shakespeare
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Re: TransCanada (Symbol-TRP)

Post by Shakespeare »

It should drop to the offering price ($45.75). The question is how long it will stay there; the ENB deal sold out immediately.
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Re: TransCanada (Symbol-TRP)

Post by JaydoubleU »

That's a big drop. But it will be exciting to watch!

(As a shareholder, I am not that concerned with daily movements, but more with the long-term direction of the company.

Anyway, this tidbit should appeal to us income investors:
Supports and may augment eight to 10 per cent expected annual dividend growth through 2020
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brad911
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Re: TransCanada (Symbol-TRP)

Post by brad911 »

Didn't ENB rise that day?
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Shakespeare
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Re: TransCanada (Symbol-TRP)

Post by Shakespeare »

Yep.
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patriot1
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Re: TransCanada (Symbol-TRP)

Post by patriot1 »

Shakespeare wrote:Remember that the States also suffers from YCBNN*. That means existing pipelines have additional worth.
America has built the equivalent of 10 Keystone pipelines since 2010 — and nobody said anything
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StuBee
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Re: TransCanada (Symbol-TRP)

Post by StuBee »

So it appears that the 10% dilution of the TRP share float at a 7% discount to yesterday's closing price is a non-event. (As I write, the price of TRP is relatively unchanged).

Question: Are subscription receipts a marketable security (is there a secondary market)? Perhaps entities such, as CPPIB or CDP, snap up the 4B$, sit on them until the deal closes (meanwhile receiving the TRP dividend) and then (once they have become shares) they become marketable securities :?.
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JaydoubleU
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Re: TransCanada (Symbol-TRP)

Post by JaydoubleU »

Well that was not very exciting -

I got up in the wee hours Japan time, bleary-eyed, stumbled to the PC hoping to see a crash-price sale on TRP shares. No such luck.

Mind you, even $45 is well above what we paid in November last year :)

And didn't it drop to $46.81 on March 10 when "the rumor" was revealed?
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Re: TransCanada (Symbol-TRP)

Post by AltaRed »

Shakespeare wrote:NG is an intermediate step from coal to renewables and should be viable for some years - barring cold fusion or Douglas-Martin sunscreens.
Not necessarily the right thread, but is a segue way into what could be a game changer for forward thinking energy companies to pursue renewables

http://www.bloomberg.com/news/videos/20 ... kyscrapers
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