Major points to support the recommendation:
The start-up of operations at the Becancour plant and the Tamazunchale pipeline in Mexico, the completion of the ANR pipeline acquisision, and the higher rates on the Northwest pipeline and hte Keystone oil pipeline will complete TRP's existing business and drive results going forward.
TRP shares are trading relatively in line with pipeline peers based on P/E ratio of 14.2 and enterprise value to EBITDA. However, the risks of this investment include sharply higher interest rates, slower than projected economic growth, and the possibility of a dilutive acquisision. Facilities are subject to mechanical and operational risks, and a shortage of feedbacks could affect electricity generation and supply obligation.
The start-up of operations at the Becancour plant and the Tamazunchale pipeline in Mexico, the completion of the ANR pipeline acquisision, and the higher rates on the Northwest pipeline and hte Keystone oil pipeline will complete TRP's existing business and drive results going forward.
TRP shares are trading relatively in line with pipeline peers based on P/E ratio of 14.2 and enterprise value to EBITDA. However, the risks of this investment include sharply higher interest rates, slower than projected economic growth, and the possibility of a dilutive acquisision. Facilities are subject to mechanical and operational risks, and a shortage of feedbacks could affect electricity generation and supply obligation.