Savvy acquisition spurs TRP

Article Excerpt

Dear safe-money investor: TransCanada made its single-biggest purchase just over a year ago, with the acquisition of Columbia Pipeline Group. The successful integration of that business has significantly strengthened the company’s profits. The next phase of TransCanada’s growth—specifically the $24.5 billion in projects now underway—should also yield big returns. In addition, long-term commitments from customers for those projects will reduce their risk. TRANSCANADA CORP. $64.68 (Toronto symbol TRP; Shares outstanding: 800.3 million; Market cap: $55.5 billion; TSINetwork Rating: Above Average; Dividend yield: 3.9%; www.transcanada.com) operates a 91,500-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S. Its other operations include 4,300 kilometers of crude oil pipelines and power plants in Canada and the U.S. On July 1, 2016, the company completed its acquistion of Texas-based Columbia Pipeline Group for $13 billion U.S. Columbia operates natural gas pipelines and underground gas storage terminals across the U.S. In the quarter ended June 30, 2017, TransCanada earned $659 million, or $0.76 a..