Topic: How To Invest

The Successful Investor Hotline – Friday, January 27, 2017

Article Excerpt

TRANSCANADA CORP., $62.71, Toronto symbol TRP, operates a 90,300-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S. Other operations include 4,250 kilometers of crude oil pipelines and 17 power plants. This week, U.S. President Donald Trump signed an executive order giving conditional approval to the company’s proposed Keystone XL pipeline. This project would pump crude from Alberta’s oil sands to refineries on the U.S. Gulf Coast. TransCanada spent $4.3 billion on Keystone XL, but had to write off $2.9 billion of those costs after the Obama administration blocked the plan. To put these figures in context, TransCanada’s market cap (or the value of all outstanding shares) is $53.4 billion. The company has now re-applied for a permit. However, it’s uncertain when it could resume work. Trump has said he wants to renegotiate the North American Free Trade Agreement. Part of that is re-examining the dispute-settlement rules between Canada, Mexico and the U.S. As well, TransCanada still needs Nebraska…