From TD: TC Energy (TRP-T) was up after its third-quarter profit beat Wall Street estimates on Thursday, helped by higher volumes of natural gas transported through its pipelines in the United States.
The U.S. Energy Information Agency said gas consumption in the United States would rise from a record 89.1 billion cubic feet per day (bcfd) in 2023 to 90.1 bcfd in 2024.
U.S. imports of crude oil from Canada also hit a record in July, benefiting pipeline firms such as TC Energy.
“Underpinned by wide-scale electrification, demand for natural gas and reliable power generation continues to reach record highs,” TC Energy CEO Francois Poirier said.
Pipeline operators are also banking on moving more natural gas than earlier due to power demand associated with artificial intelligence operations, cryptocurrency mining and data centres.
Earnings from TC Energy’s U.S. natural gas pipelines, its largest segment, rose to $1.33-billion from $782-million a year earlier.
The company reported overall revenue of $4.08-billion, beating the average analyst estimate of $3.97-billion, according to data compiled by LSEG.
Last month, TC Energy completed the spin off of its liquids pipeline business as it looks to focus on moving natural gas and reduce debt.
On an adjusted basis, the company earned $1.03 per share in the quarter, compared with estimates of 95 cents.