TC Energy ( TSX:TRP ) is in the headlines, because its Keystone pipeline reported its biggest oil spill (an estimated 14,000 barrels). Although the company has resumed operations of the undamaged parts, the cost of cleanup and lost revenue will impact TC Energy’s earnings. The stock fell 18% in a month and is now trading (at $54) closer to its 52-week low of $53.53. Is this energy stock a buy on the dip? Behind TC Energy’s stock price dip Before you decide on buying a stock at the dip, you should understand the reason for the decline. Then evaluate the severity of the impact (short term or long term) and whether the company has enough financial bandwidth to withstand the loss. As a pipeline company, TC Energy has exposure to the risk of damage to the infrastructure or any outage. Hence, the company keeps aside some funds for contingencies. TC Energy reports risk-management activities as an expense. These activities include risks related to pipelines and foreign exchange. In the nine months to September, risk-management expenses from liquid pipelines were $58 million. You can expect a higher risk management expense for the next few quarters. The Keystone pipeline has been […]
CamTrader offers a preview only. View original article. www.fool.ca
