Stockchase Opinions

Gerald Allaye-Chan TC Energy TRP-T WAIT Apr 17, 2009

Good outlook; embarking on an ambitious capital program to expand pipelines. There will be an earnings drag due to financing needs short term. You are paid to wait (5% dividend) for the long term.
$30.150

Stock price when the opinion was issued

oil gas pipelines
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BUY
Will increased production under Trump 2.0 impair prices for oil or nat gas?

Even if that were to happen, you'd want to put your exposure to energy in the pipelines. We are going to see increased volumes, barring a recession in the States or NA. Fantastic news for pipelines. Not worried so much about what the price actually is, the way a driller or downstream producer would be. Relatively decent dividend.

BUY

For the past 6 months, the chart has been sharply up. Pays a lovely yield. He would add at current levels. Strong technicals. He likes pipelines. Energy should do fine at least for the first half of 2025.

PARTIAL SELL
Sell TRP to diversify?

Lightening up on TRP to diversify makes sense, as long as you aren't paying capital gains tax and it's in a registered account. KEY works well from here, and PPL slightly better.

BUY

Likes it short and long term. They touch 30% of all LNG and 25% natural gas in North America. There was data centre hype in this stock, but faded after DeepSeek last week. Pays a 5% dividend yield. Likes it more after spinning off South Bow, a pure play natural gas company.

BUY

A great business, good valuations, pays under a 5% dividend.

WEAK BUY

Likes the pipeline space for income, and this one is fine. She owns PPL instead, and see her Top Picks.

BUY

This is the one he likes in the space. Part of its business is very utility-like. Steady dividend, which will rise over time. Dividend also looks attractive in the face of an economic slowdown when interest rates would fall. Hold for the long haul.

More pipeline builds would certainly be an opportunity for growth for this name, but that's not why he owns it.

PAST TOP PICK
(A Top Pick Mar 18/24, Up 46%)

It oversold for a while and is not a fast growing company but data centres need gas to provide their demands for electricity. Pipelines are good for recession and TRP is up 4% since Feb.19.

BUY

Great run second half last year, has gone sideways since then. Now breaking out above $68, which is quite positive. It's had lots of time to digest and consolidate.

TOP PICK

Defensive. Pays a 4.8% dividend. Natural gas demand will endure. No tariff worries. Data centres need power, and he doubts tariffs will impact Canadian energy supply.

(Analysts’ price target is $71.18)