TC Energy (NYSE:TRP)(TSX:TRP) operates as an energy infrastructure company in North America. The company builds and manages 92,600 kilometre network of natural gas pipelines that transports natural gas from supply basins to local distribution companies, power generation plants, industrial facilities, interconnecting pipelines, and other businesses.
The company has regulated natural gas storage facilities with a total working gas capacity of 535 billion cubic feet and owns and manages midstream assets that provide natural gas producer services, including gathering, treatment, conditioning, processing, and liquids handling with a focus on the Appalachian Basin.
In addition, it has approximately 4,900 kilometres of oil and liquids pipeline infrastructure that connects Alberta crude oil supplies to refining markets in Illinois, Oklahoma, Texas, and the U.S. Gulf Coast.
TC Energy also owns or has interests in 10 power generation facilities with a combined capacity of approximately 6,600 megawatts powered by natural gas and nuclear fuel sources and owns and manages approximately 118 billion cubic feet of unregulated natural gas storage capacity in Alberta. TC Energy was founded in 1951 and corporate headquarters is in Calgary, Canada.
The company has a price to earnings ratio of 15.77, a price to book ratio of 2.37 and market capitalization of 62.95 million. Low cost debt is aggressively used at TC Energy as evidenced by a debt to equity ratio of 1.57.
The company has excellent performance metrics with an operating margin of 45.10% and a return on equity of 12.64%.
TC Energy operates in three core businesses: Natural Gas Pipelines, Liquids Pipelines and Energy. The company has five operating segments: Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines, Mexico Natural Gas Pipelines, Liquids Pipelines and Energy.
The company also has a corporate segment consisting of corporate and administrative functions that provide governance, financing and other support to the company’s business segments.
The company’s energy infrastructure business is made up of pipeline, storage and power generation assets that gather, transport, produce, store or deliver natural gas, crude oil and other petroleum products and electricity to support businesses and communities in North America.
The company’s goal is to become the leading energy infrastructure company in North America, focusing on pipeline and power generation opportunities in regions where it can develop a significant competitive advantage.
TC Energy’s long-life infrastructure assets and long-term commercial arrangements ensure a low risk business model. The company’s pipeline assets include large-scale natural gas and crude oil pipelines that connect low cost supply basins with stable and growing markets, generating predictable and sustainable cash flow and earnings.
Long-term power sale agreements are used to manage and optimize the company’s portfolio and to manage price volatility.
The company is developing high-quality, long-life assets under a $57 billion capital program, composed of $36.6 billion in secured projects and $20.7 billion in largely commercially supported projects under development.
The company’s expertise is in project development, managing construction risks and maximizing capital productivity. TC Energy assesses opportunities to develop and acquire energy infrastructure that complements the existing portfolio.
TC Energy has a high-quality portfolio, disciplined operations, financial strength, and excellent long-term relationships that should serve long-term shareholders well.
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Fool contributor Nikhil Kumar has no position in any of the stocks mentioned.