Topic: How To Invest

The Successful Investor Hotline – Friday, October 2, 2020

Article Excerpt

TC ENERGY INC., $55.91, Toronto symbol TRP, is still our #1 Income Buy for 2020. TC generates steady cash flow for investors mainly through a 92,600-kilometre pipeline network that pumps natural gas from Alberta to eastern Canada and the U.S. Its other operations include 4,900 kilometres of crude oil pipelines and 10 power plants. The company continues to move ahead with its Keystone XL pipeline project, which would pump crude from Alberta to U.S. Gulf Coast refineries. It would also double the capacity of the company’s existing Keystone pipeline system. Keystone XL will cost $9.1 billion U.S. To put that plan in context, the company’s market cap (the total value of all outstanding shares) is $52.6 billion. Alberta’s provincial government recently agreed to invest $1.1 billion U.S. for an equity stake in the project. The province will also provide $4.2 billion U.S. in loans. After the new pipeline begins operations, TC will re-acquire the province’s stake. The company has now agreed to sell a minority…