TransCanada Corporation (TO:TRP) recently announced that its Cameron Access project came online in Southwest Louisiana, as the Federal Energy Regulatory Commission upheld the company’s request to commence service of the project. The project is expected to improve the company's capacity to ship natural gas, produced in North America, to the export markets.
Cameron Access Project
The project plan included enhancement of the existing pipeline and installation of a new compressor station. A 36-inch diameter pipeline of 43 kilometers was also placed, per the company. Around $300 million investment in the project has made the pipeline capable of carrying 800 million cubic feet of natural gas a day to the Cameron LNG export facility, which is expected to come online by the end of 2019.
Project Relevance
The project, apart from increasing the midstream company’s fee-based revenues, is expected to generate substantial value for TransCanada's clients. The bi-directional pipeline will enable LNG producers to ship their domestic output to the export market in the U.S. Gulf Coast.
Moreover, TransCanada expects the project to be part of reducing carbon emissions. With coal-fired power generation being replaced globally by cleaner energy source, natural gas, the pipeline will help countries in the emerging markets by giving them access to the commodity.
About the Company
Calgary, Canada-based TransCanada is a North American energy infrastructure provider. The company is focused on natural gas transmission and power services. The company's natural gas transmission networks reach more than 91,900 kilometers and strike almost all the major North American gas supply basins.
Price Performance
TransCanada has lost 4.4% in the last year compared with 11% fall of its industry.
Zacks Rank and Stocks to Consider
TransCanada has a Zacks Rank #3 (Hold).
A few better-ranked stocks in the oil and energy sector are ConocoPhillips (NYSE:COP) , Delek US Holdings, Inc. (NYSE:DK) and Continental Resources, Inc. (NYSE:CLR) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Houston, TX-based ConocoPhillips is an upstream energy player. Its revenues for first-quarter 2018 are anticipated to improve 9.6% from the prior-year quarter. The company witnessed a positive average earnings surprise of 144.5% in the trailing four quarters.
Brentwood, TN-based Delek US Holdings is a downstream energy company. Its revenues for 2018 are anticipated to improve 33.1% year over year. The company witnessed a positive earnings surprise of 25% in the fourth quarter of 2017.
Oklahoma City, OK-based Continental Resources is an oil and gas exploration and production company. Its revenues for first-quarter 2018 are expected to improve 53.8% from the year-ago quarter. For 2018, the bottom line is anticipated to be up 360.8%.
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