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  5. TRP: Your thoughts please on the quarter? [TC Energy Corporation]
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Q: Your thoughts please on the quarter?

Thx
Asked by blake on May 03, 2024
5i Research Answer:

EPS was $1.24, 8% better than estimates; revenue of $4.24B was 2% better. TC Energy's 2Q Ebitda growth could slow from 11% in 1Q yet remain strong. Canadian Natural Gas Pipelines Ebitda growth will likely be driven by higher NGTL rate-base earnings, helped by expansions. The Villa de Reyes lateral that started in 3Q will likely support an Ebitda increase for the Mexican gas unit, while expansions and new projects such as Gillis Access may boost US Natural Gas Pipelines volume. Liquids Pipelines Ebitda growth could significantly moderate as the unit cycled through easy Keystone volume comparisons. Power and Energy Solutions Ebitda gains may also subside as Alberta gas storage spreads likely normalize. TC Energy still seeks another roughly C$2 billion in asset sales as part of its C$3 billion target to keep deleveraging. It was a good quarter and the stock remains cheap at 12X earnings.