TRP currently has a high debt load, with a net debt of and net debt/EBITDA reaching 8.2x, which is high compared to peers and to TRP’s historical range as well. The total capex is also quite high, estimated to be around $12B, which accounts all the operating cash flow. This is very common for the sector, though, and TRP is not unique here.
The encouraging news is that TRP is accelerating the deleveraging process by divesting $5+ billion in assets as recently TRP completed the sale of 40% of a non-controlling equity interest.
Overall, we don’t like too much debt, but cash flow is stable and the business is regulated. We consider it 'OK' for income but do prefer ENB and PPL.