TC Energy Corp. TRP-T is open to joint ventures in Mexico and Canada as part of the pipeline operator’s $3-billion divestiture program, the company said on Wednesday.
The company, best known for its Keystone oil pipeline, has disclosed plans to sell assets to reduce debt and fund its other projects grappling with high costs.
TC was focusing on multiple transactions to hit the $3-billion target, company executives said on the call, as “smaller bundles” were more attractive in the current interest-rate environment.
In July, the company said it would spin off its oil pipeline business and focus on transporting natural gas while also announcing divestment of a 40-per-cent interest in its Columbia Gas Transmission and Columbia Gulf Transmission pipelines.
Shares rose 1.4 per cent to $50.12 in morning trade as the company also topped earnings estimates.
The pipeline operator said its long-delayed Coastal GasLink project had achieved mechanical completion ahead of its year-end target.
“Mechanical completion on Coastal GasLink with no further overruns. This is particularly nice given the challenge the Trans Mountain Expansion has had,” Morningstar analyst Stephen Ellis said.
The $14.5-billion project had been dogged by protests owing to environmental concerns and a $346,000 fine levied by British Columbia for non-compliance with environmental regulations.
The Calgary-based company’s U.S. natural gas pipelines’ third-quarter LNG deliveries averaged at 3.1 billion cubic feet a day, up 1.4 per cent from a year earlier, and the segment’s earnings rose 9.5 per cent to $782-million.
That helped the company report an adjusted profit of $1 a share for the quarter ended Sept. 30, topping the average analyst estimate of 97 cents, according to LSEG data.