New deals should help offset risks

Article Excerpt

TC ENERGY CORP. $55 is a buy. The company (Toronto symbol TRP; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 939.0 million; Market cap: $51.6 billion; Price-to-sales ratio: 4.0; Dividend yield: 5.9%; TSINetwork Rating: Above Average; www.tcenergy.com) is now soliciting bids from oil producers for an additional 80,000 barrels a day on its Keystone pipeline, which pumps crude from Alberta to Illinois. The company recently secured approval to expand the line’s capacity from 590,000 barrels a day to 760,000. These new contracts would begin in 2023, which is when TC Energy expects to complete the separate Keystone XL pipeline project. The new contracts were meant to replace volumes that would shift to XL when completed. By locking in the new shipping contracts for the existing system, TC Energy offsets the risk from incoming U.S. president Joe Biden’s expected move to cancel Keystone XL. TC Energy is a buy. buy…