It was an odd development in the markets, though the Canadian markets are closed for Canada Day today. Canadian energy stock TC Energy (TSE:TRP) was revealed to have a hand in a historic moment for Canada’s energy markets. Despite this, TC Energy stock still closed down fractionally in yesterday’s trading, when the last recorded data was posted.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
TC Energy, as it turned out, built the Coastal GasLink pipeline, which supplied what was known as the Kitimat operation with natural gas from the northeast gas fields in British Columbia. That material in turn was routed down to Kitimat, where it—in an operation controlled by LNG Canada—converted it into “ultra-chilled liquefied natural gas” and shipped it to Asia. As Prime Minister Mark Carney noted, “Canada has what the world needs,” and LNG certainly qualifies.
Where exactly in Asia was unknown, but even without a precise destination, the project still represented a slice of history as this was the first tanker of liquefied natural gas to be exported from Canada across the Pacific. Historically, Canada really did not need the Asian business; most of its LNG shipments went to the United States, until the tariffs and trade war kicked in.
444-Mile Toll Bridge
Meanwhile, TC Energy recently started collecting tolls for a project it established in Mexico. The Southeast Gateway pipeline, which is connected to the Comision Federal de Electricidad (CFE), runs about 444 miles all told, and carries 1.3 Bcf / d in natural gas supply to electricity-generating operations throughout Mexico.
TC Energy’s efforts on this pipeline were impressive by any standard; it was built for 13% less cost than previously expected, and was completed in less than three years from the final decision. Now, TC Energy is prepared to reap the benefits of said pipeline, and is currently working with the Comision Nacional de Energia (CNE), a comparatively new entity in the Mexican government, to establish and secure approval on the toll rates.
Is TC Energy Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TC Energy stock based on eight Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 28.84% rally in its share price over the past year, the average TC Energy price target of C$77.07 per share implies 15.92% upside potential.
