TC Energy Shareholders Approve Spin-Off Of Liquids Pipeline Business: Report
Portfolio Pulse from Lekha Gupta
TC Energy Corporation (NYSE:TRP) shareholders have approved the spin-off of its liquids pipeline business into a new company, South Bow Corp. This move aims to reduce TC Energy's debt and allow it to focus on natural gas transportation. South Bow Corp will inherit significant assets, including the Keystone oil pipeline, and will be listed on the Toronto and New York stock exchanges. Analysts have mixed views on South Bow's valuation due to its limited asset base and slower growth projections.
June 04, 2024 | 5:23 pm
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POSITIVE IMPACT
Barclays iPath Select MLP ETN (BATS:ATMP) will also gain exposure to South Bow Corp following the spin-off from TC Energy. This could affect the ETN's performance.
The inclusion of South Bow Corp in the ETN's portfolio could positively impact its performance due to the new company's steady revenue streams from long-term contracts.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to South Bow Corp through the VanEck Energy Income ETF (NYSE:EINC). The spin-off may impact the ETF's holdings and performance.
The spin-off of South Bow Corp will add a new asset to the ETF's portfolio, potentially impacting its performance positively due to the steady revenue streams from long-term shipping contracts.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
TC Energy shareholders have approved the spin-off of its liquids pipeline business into South Bow Corp. This move is expected to reduce TC Energy's debt and allow it to focus on natural gas transportation.
The spin-off will allow TC Energy to reduce its debt and focus on its core business of natural gas transportation, which is likely to be viewed positively by investors.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100