TransCanada Aims for Big Gains

Article Excerpt

TransCanada Corp. has aggressively expanded its operations over the past few years to reduce its reliance on its regulated gas pipeline business. Regulation gives these businesses steady, predictable cash flows, but limits TransCanada’s overall growth. The company is now working on several new projects. These new operations could spur big gains in its earnings and cash flow for years to come. TRANSCANADA CORP. $36 (Toronto symbol TRP; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 578.0 million; Market cap: $20.8 billion; SI Rating: Above average) operates over 59,000 km of pipelines that transport natural gas, mainly from Alberta to markets in central and eastern Canada. The company also operates gas pipelines in the United States and Mexico. This business supplies 55% of TransCanada’s total revenue. The remaining 45% comes from its electrical power operations. TransCanada owns or holds interests in over 20 power plants in Canada and the United States. TransCanada continues to expand its power business. This includes its investment in the partnership that…