TC Energy (TRP) accepts Indigenous stake in Coastal GasLink

Based in Calgary TC Energy Corporation TRP said it has signed option agreements to sell 10% of its stake in the Coastal GasLink pipeline project to indigenous communities across the pipeline route. The prospect of having an equity stake is offered to indigenous groups who already hold existing agreements with the 670 km long development.

This project, in which TC Energy holds a 35% stake, while KKR and Alberta Investment Management together hold a 65% stake, has for several years faced opposition from environmentalists and First Nations (a term used to identify the Canadian Indigenous population) because they argue that the pipeline encroaches on traditional Indigenous land.

For option agreements, the Nations have established two entities, namely the CGL First Nations Limited Partnership and the FN CGL Pipeline Limited Partnership, which jointly represent 16 communities that have confirmed their support.

TC Energy said the equity option is in addition to the 20 agreements Coastal GasLink has with Indigenous groups along the route to provide contracting and employment opportunities, among other long-term benefits. However, the stock option may be exercised after the pipeline is placed in commercial service subject to required regulatory approvals.

Built in British Columbia, Canada’s westernmost province, the Coastal GasLink pipeline will have a preliminary transmission capacity of 2.1 billion cubic feet per day. The project will transport natural gas from the Montney gas-producing region, the Groundbirch area west of Dawson Creek, to LNG Canada’s licensed export facility near Kitimat.

TC Energy Corporation is a major energy infrastructure provider in North America. Founded in 1951, the company primarily focuses on the transportation of natural gas through its 57,500 mile pipeline network located in Canada, the United States and Mexico. TRP is also involved in other businesses, including power generation, natural gas storage and oil pipelines.

TC Energy currently has a Zacks rank of #3 (Hold). Some higher ranked energy space actions worth a look include Devon Energy NDV, Marathon Oil MPC and PDC Energy PDCE, each sporting a Zacks rank #1 (Strong Buy). You can see the full list of today’s Zacks #1 Rank stocks here.

The Zacks consensus estimate for Devon Energy’s earnings in 2022 is projected at $6.40 per share, up about 81.3% from projected earnings of $3.53 a year ago. Devon Energy shares have jumped 139% in one year.

Devon Energy has beaten the Zacks consensus estimate for earnings over the past four quarters, averaging around 18.5%. DVN is valued at approximately $35 billion.

Marathon Petroleum is valued at approximately $43 billion. Marathon Petroleum has beaten the Zacks consensus estimate for earnings over the past four quarters, averaging around 74.8%.

The Zacks consensus estimate for MPC’s earnings in 2022 is projected at $6.11 per share, up about 149.4% from projected earnings of $2.45 a year ago.

PDC Energy’s stock price rose 72.6% year-on-year. The Zacks consensus estimate for PDC Energy’s earnings in 2022 has been revised up about 29% in the past 30 days, from $10.33 per share to $13.32.

The Zacks consensus estimate for PDCE earnings in 2022 is pegged at $13.32 per share, up 66.7% from projected earnings of $7.99 a year ago.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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