Q: TC Energy. There is a lot of talk about when the new pipeline in Canada will come online. When it does come online and provided there aren't any more delays, how much can we equate this to cash flow of the short - medium term? is it material?
5i Research Answer:
Coastal is expected to be done by year end. As a $15B project, it is significant (TRP has already reduced its ownership and taken a writedown on the project, though). In its 2023 annual information form, though,TRP does not provide cash flow estimates. We would consider it material, but also already embedded in valuation and analysts' estimates, which call for lower earnings and cash flow in 2024.