TC Energy ( NYSE: TRP ) -2.4% in Thursday's trading after raising spending guidance and nearly doubling the cost estimate for the Coastal GasLink pipeline.
In its Q2 earnings report - which showed comparable earnings falling to C$979M, or C$1.00/share, from C$1.04B, or C$1.06/share, a year earlier - the pipeline company now forecasts total capital spending for the full year at ~C$8.5B (US$6.63B), up from prior guidance of C$7B.
TC Energy ( TRP ) said it resolved a longstanding dispute with LNG Canada about the 670-km Coastal GasLink pipeline after the two sides had clashed over cost overruns, and TC said they have settled on a new cost estimate of C$11.2B (nearly US$9B), up from $6.6B.
TC Energy ( TRP ) said it will contribute an additional $1.9B to the project as a result of the new cost estimate, which will allow it to maintain its 35% ownership stake.
The company also said Coastal GasLink is 70% complete and on track to be in service by the end of next year.
TC Energy's ( TRP ) stock price return shows a 14% YTD gain and a 9% increase during the past year .
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Cost estimate for TC Energy's Coastal GasLink pipeline hiked to nearly $9B