- TC Energy (TRP) is disappointed with expected executive action to withdraw Keystone XL Presidential Permit
- This action would directly lead to layoffs of thousands of union workers and negatively impact historic equity partnerships with Indigenous communities
- Effective January 20, 2021, TC Energy will halt capitalizing costs, including interest during construction
- TC Energy mentions their network of irreplaceable critical energy infrastructure will be used extensively for many years to come
- TC Energy is down 1.15 per cent and is trading at C$55.92 per share at 4 PM EST
TC Energy (TRP) is disappointed with the executive action to withdraw Keystone XL Presidential Permit.
The decision may impact thousands of union jobs along with new renewable energy investments and opportunities for Indigenous communities.
TC Energy has announced it is disappointed with the foreseen action to revoke the existing Presidential Permit for the Keystone XL pipeline.
If it does get revoked, TS Energy expresses how it will overturn the comprehensive regulatory process that later more than a decade and mentioned the pipeline would transport much-needed energy in an environmentally responsible way.
This action would directly lead to union workers’ layoffs and negatively impact historic equity partnerships with Indigenous communities.
TC Energy will consider their options in place of this decision. Due to the Presidential Permit’s expected revocation, further advancement of the Keystone XL pipeline is not happening.
Effective January 20, 2021, TC Energy will halt capitalizing costs, including interest during construction.
For Q1 in 2021, absent actions may result in a substantive, non-cash after-tax charge to earnings.
As TC Energy will no longer expect to issue hybrid securities or common shares under its dividend reinvestment plan to add additional funds, it will adjust previously announced financing plans.
François Poirier, TC Energy’s President and CEO, reassures the public they will be fine without the Keystone XL pipeline.
“Our base business continues to perform very well and, aside from Keystone XL, we are advancing $25 billion of secured capital projects along with…other similarly high-quality opportunities under development,” he said.
“These initiatives are expected to generate growth in earnings and cash flow per share and support annual dividend increases of eight to ten per cent in 2021 and five to seven per cent after that,” he added.
Trying to stay positive amid this news, TC Energy is opting for a calm tone. It expects to have growth regarding its portfolio that fully aligns with its long-established risk preferences, return expectations and organizational capabilities.
TC Energy mentions their network of irreplaceable critical energy infrastructure will be used extensively for many years to come.
While today’s news is very disappointing, TC Energy expresses their appreciation of their customers, American and Canadian workers, partners, and the Government of Alberta.
TC Energy’s common shares trade on the Toronto (TSX) and New York (NYSE) stock exchanges under the symbol TRP.
TC Energy is down 1.15 per cent and is trading at C$55.92 per share at 4 PM EST.