TransCanada Corporation (USA) (NYSE:TRP) (TSE:TRP) shares are maintained with an Outperformer rating by CIBC. The brokerage’s view came after the company disclosed a successful open season on its Mainline. The brokerage believes that there would be minimum financial impact due to it. However, this could be helpful for long-term contracts so that it could make more investments in the NGTL system.
Analysts Robert Catellier, Ollie Primak, and Ian Woodwand pointed out that TransCanada has reached a successful conclusion with the revised terms that included shipper minimums removal and an amended toll rate.
In its research note, the lead analysts viewed, “Contract terms achieved include the minimum 1.5 PJ/d in long-term binding contracts at a toll of $0.77/GJ for 10 years with early termination rights (on payment of an increased toll for the final two years of the contract). We continue to view the conclusion of the open season as neutral to TransCanada’s 8.7% – 11.5% approved ROE for the Mainline.”
TransCanada is planning to submit an application for regulatory permission of the open season to the NEB in April.
At time of writing this, the stock traded down 1.42 percent.