RE:RE:MarketCall Comments - Teal Lindestockmarket1 wrote: Good. He would be PPL over both Enbridge and TC Energy due to thos 2 being more affected by rising rates. That part I didn't really get because to me, they're all in the same bubble so....I'm a bit baffled by that. Unless, TC and Enbridge carry much much debt than PPL which is smaller? ?
ace1mccoy wrote: https://www.bnnbloomberg.ca/video/teal-linde-discusses-pembina-pipeline~2468516
I think it would be more a thing to do with internals of the buisnesses and maybe how debt is structured with each of them.
Enbridge does have a high dept, they have to use financial gymnastics to statistically pay thier dividend and they have a section of the buisness that serves gas to public homes in some areas as a Utility more than a straight up pipeline company and that customer base can only have rates raised as regulators approve, they also have several run ins directly in regional politics which creates possible instability, I'm sure there's more going on but I'm not fully in-depth with them. That said I heard that in the US they have a network of ready to go NatGas power plants ready to be fired up that no one seems to talk about for when the US fully gets off coal/high emission power production in a couple years. (I read an article about this somewhere last summer or early fall that sounded interesting and might be a jump forward for them)
I worked at a TC gas plant for a few months a year ago, but I don't know a whole lot about thier buisness. It seemed pretty straight forward transmission of gas from out west to the east.
Pembina seems to be as much midstream value adding and separating products as much as moving products to major centres for use or further exporting.
I believe Enbridge and Pembina write notes and enter debt agreements with base rates, I don't think they deal with banks and floating rates too much, so unless they have to up thier offers to renew contracts the rate increases shouldn't mean much to them. I could be wrong. As I said before I don't follow TC that closely so I don't know how they manage thier finaces.
I also don't monitor the situation that closely on these companies so I'm not that credible of a poster on all this, I just bought into Veresen and added Pembina shares during the takeover and am happy to collect payouts regularly as I don't feel I need to worry about this area or my portfolio.
This is something that you can look into for yourself as they usually disclose how their debts are broken down.