09:54 AM EDT, 07/30/2024 (MT Newswires) -- Tudor, Pickering, Holt on Tuesday reiterated its buy rating on the shares of TC Energy ( TRP ) with a C$58.00 price target after the company sold a C$1 billion stake in its Western Canadian natural-gas pipeline gathering system to a group of indigenous investors and ahead of the company's second-quarter results.

"We expect Adj EBITDA of C$2,662MM for Q2'24 compared to street estimates of C$2,682MM. On an FY basis, we're modeling C$11,027MM, which excludes liquid pipelines (inclusive of liquids C$11,442MM) and is just below Street estimates of C$11,462MM. The slight miss in Q2 is attributable to U.S. Gas Pipelines, where we estimate C$994MM compared to street estimates of C$1,017MM. Other notable segment updates include Power and Storage, where Bruce's availability sits at 78% based on public data. This lower availability is due to planned maintenance on units 5-8, partially offset by higher rates. Our estimates are mostly in line with Street estimates for the remainder of segments. Coming into the quarter, investors continue to look for the best company to play the upcoming ramp in natural gas and power demand. On the Q1 call, TRP noted they expect between 6-8 Bcf/d of incremental gas demand between 2024-2030 across the U.S, noting they connect to 8 of the 10 largest LDCs across the U.S. Also likely to be the focus of the quarter is an update on the asset sales including NGTL and others in the U.S or Mexico. This morning, TRP announced an agreement to sell a 5.34% minority equity interest in the NGTL and Foothills systems for gross proceeds of $1B, with an expected close in Q3'24," 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: 58.04, Change: +0.01, Percent Change: +0.02