Tudor, Pickering, Holt on Tuesday maintained its buy rating on the shares of TC Energy (TRP.TO, TRP) with a C$77.00 price target following investor presentations by the power and pipeline company.
"TPH joined the TRP management team in Toronto for an investor event yesterday. Although Mexico and Canada were both topical with future growth opportunities, the US dominated the conversations. Recently, TRP announced a binding open season in Ohio on their Columbia system with initial volumes of ~500 MMcf/d driven by power and data center demand. The project can be upsized with expected in-service in 2029, with some portions potentially available in 2027. The open season announcement followed various customers expressing interest in new pipeline capacity into the state, a trend that TRP indicates is very common. Management notes that it is very typical for other customers in the region to approach them after they announce a project, seeking a similar project/capacity. The team also said that they are seeing existing customers returning and requesting additional gas after a project is sanctioned. When we raised our concern about a potential supply shortage around the Gulf Coast, TC mentioned that they have seen this issue start to surface in contracting and projects, where customers are looking to reach further into the HV to a more liquid trading hub. Following up, it was noted that with recent facilities starting up, they have seen a significant call on hubs around the Gulf. Regarding future projects, TRP showed no concern about continuing to find in-corridor projects to fill their future backlog. These projects will continue to include a combination of both compression additions and pipeline looping. Within Canada and Mexico, the company is also continuing to see demand overall and around their systems. After speaking with management, we continue to believe TRP is one of the best ways to play the power demand story, and the name remains at the top of our force rankings," analyst Zack Van Everen wrote.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 76.03, Change: -0.58, Percent Change: -0.76
Comments