TC Energy (TRP-T)

Headwind of higher interest rates. Cost overruns on Coastal GasLink, so has underperformed ENB and PPL. Once Coastal is complete, overhang should lift.

It has not been a good year for the stock or the space in general but some companies are coming back. It pays a good dividend and has plans to sell some assets which will be good for paying down debt. It is selling an oil pipeline but it doesn't look to be at a great multiple. He has been buying more.

Excellent job in diversifying business.
Capital expansion program worrisome for investors.
Higher interest rates hard on business.
Building new assets difficult in Canada.
Oil pipeline spin-out would be a good investment.

Dividend's not as high as ENB, but neither is the leverage. Suffered as interest rates have gone up, but interest rates have peaked and should come down somewhat sometime next year. Hefty dividend of 7.7%.

It's been challenging to own this long term, but things are improving--they divested their stake in their Columbia gas pipeline, freeing $5 billion, and will spin off the liquids business, which will be a long, complicated process. But this will unlock flexibility and remove some ESG taint to TRP. Shares are cheap and pay a 7.6% dividend (a record high and higher than peers like Enbridge). Trades at a discount to peers. Shares are down. All these factors set it up well.

Has sold shares in company.
Cost overruns and difficulty to build projects a concern.
Not able to re-invest cash flow.
Dividend not in trouble, but not expecting capital appreciation.
Strong assets, but hard to grow business. 

Surprised how much share price has fallen.
Believes that weakness in share price will pass.
Assets very strong - move 25% of gas in North America; 35% of LNG feed stock.
LNG growth also growing. 
Buying more shares given current price. 
Good long term investment. 

It is best known for its Keystone pipeline system. The market didn't like the valuation multiple implied in the recent announcement of the sale of Columbia Pipelines. It is separating out its liquids pipelines business from its gas pipelines. There have been cost over-runs and elevated debt levels. The dividend is over 7%.

Penalty box. Share price around 5-year low. Plans for spinoff and sale of a trophy asset. Balance sheet doesn't support its capital program. Very attractive 10x earnings, a durable business, a ton of value. He owns and still prefers ENB and PPL.

Huge portfolio of pipelines, a tremendous barrier to entry. Impossible to replicate its assets. Selling Colombian asset to reduce debt, and market recoiled from this shift from growth to debt reduction. Splitting off liquids group. 10x earnings multiple. Yield is 7.89%.

He's about to sell it at a loss. Support has broken down.

It is down nearly 32% in the past year. He recently bought it. Some assets are being sold resulting in a better balance sheet. The pipelines on the west coast are good for oil prices in Canada. Carbon based energy will still be in demand.    Buy 9  Hold 10  Sell 3

The company states that the 'combined dividends of the two companies sustains long-term dividend growth outlook'. So we don't think it puts the dividend 'at risk', but the spin off will likely change where/who the dividend 'comes from'. Also, the company states that 'the initial combined dividends of the two companies will be equivalent to TC Energy's annual dividend immediately prior to the completion of the transaction and that over time the combined value of the two companies' dividends is expectd to remain consistent'. 

TC Energy is expected to grow EBITDA at 7% annually and grow the dividend by 3% to 5% annually. The liquids business is expected to grow at 2% to 3% anually and have a similar dividend growth rate. 
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Shareholders are frustrated. Yesterday, they sold $5 billion in a Louisiana pipeline, and markets were disappointed they didn't fetch more. Rising rates are pressuring long-duration assets like TRP's. Wait for earnings before doing anything, like he is.

The premier natural gas infrastructure company in North America. It pays over a 7% dividend. The Coastal Gaslink overhand is behind us. It's fine that they sell some assets to fund growth. Exporting nat gas beyond North America will double in volume in the coming decade and TRP is incredibly set up to facilitate this. Even at a modest 2% dividend growth rate and share growth, that's still 9-10% compounded annual returns.