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TC Energy (TRP) Concludes Sale of Natural Gas Assets Worth $1B
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TC Energy Corporation (TRP - Free Report) announced that it has concluded the sale of the Portland Natural Gas Transmission System (“PNGTS”) along with its partner Northern New England Investment Company, which is a subsidiary of Énergir LP. The gross purchase price for the deal was $1.14 billion, including outstanding Senior Notes worth $250 million (held by PNGTS), which will be assumed by the buyers as part of the sale. These Senior Notes were previously consolidated on TC Energy’s balance sheet.
The cash proceeds from the sale of PNGTS will be divided on a pro-rata basis according to the ownership stakes held by each party before the sale. Prior to the sale, TC Energy owned 61.7% of the asset, while Énergir L.P. held 38.3%. TC Energy has stated that it will provide customary transition services to the buyers of PNGTS. Furthermore, the company will continue to work with the buyers to assist in an orderly transition of this crucial natural gas infrastructure.
TRP has mentioned that the sale of the PNGTS is part of its commitment to deliver $3 billion in asset divestitures. The sale of the natural gas assets should also enable the company to strengthen its balance sheet. TC Energy continues to focus on achieving the upper limit of its 4.75 times debt-to-EBITDA target by the end of 2024.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
The Williams Companies is a premier energy infrastructure provider in North America. The company’s core operations include finding, producing, gathering, processing, and transporting natural gas and natural gas liquids. Boasting a widespread pipeline system of more than 33,000 miles, Williams is one of the largest domestic transporters of natural gas by volume.
MPLX LP owns and operates a wide range of midstream assets. The partnership's midstream assets include oil and natural gas gathering systems and transportation pipelines for crude, natural gas and refined petroleum products. MPLX is least exposed to commodity price fluctuations as it generates stable fee-based revenues. Furthermore, it surpasses its industry peers in terms of distribution yield, reflecting its commitment to returning capital to its unitholders.
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TC Energy (TRP) Concludes Sale of Natural Gas Assets Worth $1B
TC Energy Corporation (TRP - Free Report) announced that it has concluded the sale of the Portland Natural Gas Transmission System (“PNGTS”) along with its partner Northern New England Investment Company, which is a subsidiary of Énergir LP. The gross purchase price for the deal was $1.14 billion, including outstanding Senior Notes worth $250 million (held by PNGTS), which will be assumed by the buyers as part of the sale. These Senior Notes were previously consolidated on TC Energy’s balance sheet.
The cash proceeds from the sale of PNGTS will be divided on a pro-rata basis according to the ownership stakes held by each party before the sale. Prior to the sale, TC Energy owned 61.7% of the asset, while Énergir L.P. held 38.3%. TC Energy has stated that it will provide customary transition services to the buyers of PNGTS. Furthermore, the company will continue to work with the buyers to assist in an orderly transition of this crucial natural gas infrastructure.
TRP has mentioned that the sale of the PNGTS is part of its commitment to deliver $3 billion in asset divestitures. The sale of the natural gas assets should also enable the company to strengthen its balance sheet. TC Energy continues to focus on achieving the upper limit of its 4.75 times debt-to-EBITDA target by the end of 2024.
Zacks Rank and Key Picks
Currently, TRP carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are SM Energy (SM - Free Report) , The Williams Companies Inc. (WMB - Free Report) and MPLX LP (MPLX - Free Report) . SM Energy presently sports a Zacks Rank #1 (Strong Buy), while The Williams Companies and MPLX carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
The Williams Companies is a premier energy infrastructure provider in North America. The company’s core operations include finding, producing, gathering, processing, and transporting natural gas and natural gas liquids. Boasting a widespread pipeline system of more than 33,000 miles, Williams is one of the largest domestic transporters of natural gas by volume.
MPLX LP owns and operates a wide range of midstream assets. The partnership's midstream assets include oil and natural gas gathering systems and transportation pipelines for crude, natural gas and refined petroleum products. MPLX is least exposed to commodity price fluctuations as it generates stable fee-based revenues. Furthermore, it surpasses its industry peers in terms of distribution yield, reflecting its commitment to returning capital to its unitholders.