It’s a safe bet that TC Energy (TSE:TRP) shareholders weren’t exactly pleased with its plans to sell a stake in a pipeline to Canada’s indigenous population. And they made that modest displeasure known with a fractional dip in TC Energy shares.
The plan calls for TC Energy to sell some of its Canadian assets for C$1 billion to a set of indigenous communities throughout Canada. The move was undertaken as a way to cut debt and fund future development.
TC Energy has been eager to ditch the liquids part of its operation for some time now, instead focusing on natural gas. That’s not a surprise given the recent rise in natural gas power plants as a way to replace coal in large-scale power generation. In addition, it opens up the liquids market to the indigenous population, who will ultimately benefit from a 5.34% stake in the operation after the C$1 billion is raised.
Natural Gas Controversy
At a time when TC Energy is focused on natural gas, perhaps one of the worst things that could happen in response was controversy over that. And that’s just what happened in Bend, Oregon, where the locals are fighting back against expansion plans for a nearby pipeline.
However, this controversy may be rendered moot; TC Energy noted that the project has already been underway for the last few weeks now. The group fighting against it is working to spread “awareness about this pipeline and the health and safety issues that it poses” to their communities. But the project has already received federal approval despite concerns from the populace and both state and regional governments.
Is TC Energy Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TC Energy stock based on four Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 31.88% rally in its share price over the past year, the average TC Energy price target of C$58.41 per share implies 1.07% upside potential.
