TC Energy shares fall 5% on plans to spin off oil pipelines business

fell more than 5 per cent on Friday after the Keystone pipeline operator disclosed plans to spin off its liquids business to focus on transporting natural gas.

But TD Securities downgraded TC to “hold” from “buy,” saying it was skeptical the spinoff would create value. TC CEO Francois Poirier said TC needed to sell another C$3-billion in assets during the next 18 months to reach its 4.75 times debt to EBITDA target. TC had 5.4 times debt to EBITDA last year and is aiming to reduce that to 5 times this year.

The spinoff separates high-growth areas of gas and power assets, which are expected to grow at a 7 per cent compound annual growth rate through 2026, from liquids assets, which are expected to grow 2-3 per cent over the same period, according to a Morningstar note.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Expert recommends companies adapting to clean energy future - BNN BloombergCompanies actively altering their business models to fit into the clean energy transition will be best positioned to reward investors in the future, one financial expert says.
Source: BNNBloomberg - 🏆 83. / 50 Read more »