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TransCanada (TRP) Sells 13 Hydroelectric Generation Assets

Zacks Equity Research

North American energy giant TransCanada Corporation TRP recently completed the sale of 13 hydroelectric generation assets to renewable energy investor ArcLight Capital Partners, LLC's affiliate, Great River Hydro, LLC. The company generated $1.065 billion from the asset sale. State regulators, following several months of review, approved the sale of the assets on the Connecticut and Deerfield rivers.

The sold assets, which have a total power generating capacity of 584 megawatts, are located in New Hampshire, Vermont, and Massachusetts. TransCanada bought these facilities in 2005.

TransCanada plans to use the proceeds from the sale of these assets to repay debt financing associated with the Columbia Pipeline Group acquisition in 2016. Through this buyout, TransCanada became one of North America's largest regulated natural gas transmission companies.

About the Company

TransCanada is mainly focused on natural gas transmission and power services. The company’s pipeline transports the majority of Western Canada's natural gas production to growing markets in Canada and the United States. The company is headquartered in Calgary, Alberta.

Price Performance

In the last one month, TransCanada’s shares have been outperforming the Zacks categorized Oil and Gas - Production and Pipelines industry. During this period, the industry registered an increase of 1.33% while TransCanada’s stock gained 2.17%.


Zacks Rank and Stocks to Consider

TransCanada carries a Zacks Rank #3 (Hold).  Some better-ranked stocks from the same space include Antero Resources Corporation AR, Cenovus Energy Inc. CVE and Ultrapar Participacoes S.A. UGP. Both Antero Resources and Cenovus sport a Zacks Rank #1 (Strong Buy), whereas Ultrapar holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the current year, Antero Resources’ sales are estimated to grow 8.88% year over year. The company had a positive earnings surprise of 23.8% in the fourth quarter of 2016.

For the current quarter, Cenovus’ sales are likely to increase 96% year over year. In the last quarter of 2016, the company had a positive earnings surprise of 583.33%.

For the year 2017, Ultrapar’s sales are likely to increase 20.31% year over year. In the fourth quarter of 2016, the company had a positive earnings surprise of 4.35%.

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Cenovus Energy Inc (CVE): Free Stock Analysis Report
TransCanada Corporation (TRP): Free Stock Analysis Report
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Antero Resources Corporation (AR): Free Stock Analysis Report
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