TRP looks to streamline

Article Excerpt

TC ENERGY INC., $52.66, is a buy. The company (Toronto symbol TRP; Shares outstanding: 940.0 million; Market cap: $49.4 billion; TSINetwork Rating: Above Average; Dividend yield: 6.2%; www.transcanada.com) now aims to simplify its corporate structure with its new offer to acquire full control of TC PipeLines, LP (New York symbol TCP). That U.S. master limited partnership owns, or invests, in eight natural gas pipelines. They serve customers in 22 states and satisfy 13% of the daily natural gas needs of the U.S. Right now, TC Energy owns 25.5% of TC PipeLines. It has offered to acquire the remaining 74.5% in an all-stock offer. If TC PipeLine unitholders approve, along with regulators, the company will probably complete the deal in early 2021. The purchase will streamline TC Energy’s structure and help it cut costs. That should increase its appeal with investors, and let the company keep raising its dividend. TC Energy is a buy. buy…

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