.png)
Piping connecting to TC Energy’s Coastal GasLink natural gas pipeline terminus at the LNG Canada export terminal under construction, in Kitimat, B.C., on Sept. 2022. Staring down an unsustainable debt load, with few foreseeable catalysts to alleviate the burden, TC Energy Corp. TRP-T hopes to reinvent itself by spinning out the oil division that defined its growth ambitions last decade. But 24 hours into what management calls a “monumental moment” for the company, TC’s share-price slump has only accelerated, and analysts are questioning the very purpose of the reorganization, because it does little to lower the company’s debt burden in the near future. TC, formerly called TransCanada Corp., believes hiving off its oil pipelines – known as “liquids” pipelines in the industry – into a separate publicly traded company will allow management “to pursue more growth for the benefit of our shareholders than we could today,” chief executive François Poirier said on a conference call Friday. Yet a team of analysts at Toronto-Dominion Bank TD-T wrote in a client research note that they are “skeptical that any liquids spinoff would unlock value for shareholders.” “Indeed,” the analysts said, “we see execution risk introducing uncertainty and potentially distracting TC from […]
CamTrader offers a preview only. View original article. www.theglobeandmail.com
