TC Energy Corp. fell short of quarterly profit estimates on Feb. 13, hit by lower contribution from its Canadian natural gas pipelines and a decline in Keystone pipeline volumes.
The hit to Keystone volumes comes after a leak in North Dakota in late October temporarily shut down the pipeline that runs from Alberta to Nebraska.
The company's earnings from its oil pipelines, of which Keystone is the biggest contributor, plunged 33.3% to C$355 million in the fourth quarter, while profit from its Canadian natural gas pipelines fell 28.7% to C$321 million.
The Calgary, Alberta-based company's comparable earnings rose to C$970 million (US$731 million) in the three months ended Dec. 31, from C$946 million a year earlier.
Excluding items, TC Energy earned C$1.03 per share, below analysts' average estimate of C$1.04, according to IBES data from Refinitiv.
Revenues fell 16.4% to C$3.26 billion.
Separately, the company said it approved two new expansion projects worth C$1.3 billion on its wholly owned natural gas pipeline systems. (US$1 = C$1.3262)
U.S. oil output growth is expected to slow over the next five years, likely prompting oil majors to "gobble up" smaller shale oil producers, Mark Papa told Reuters.
Offshore operations in the Gulf of Mexico will thrive with improving economics, while in the shale fields ... not so much; a new generation of leaders takes over following the retirement of a slew of industry icons, and just in time to tackle investor pressure on ESG issues, continuing consolidation and the pursuit of capital; and then there's the 2020 U.S. presidential election, in which the subject of energy is likely to play a prominent role.
U.S. natural gas producer EQT Corp. said Jan. 13 it would take a non-cash impairment charge of up to $1.8 billion in the fourth quarter driven by record low gas prices.