What message did you all receive?
I think this is a protection tactic.
What does this mean going forward?
14 replies (most recent on top)
Can Hal run the gas side as well?
He’d clean out all the phony VP’s and Directors and get the company back on track to respectability unlike the market dog that it’s become.
There are known reasons why Keystone has had and continues to have issues. Anyone that lines up to purchase it would rightfully want to limit liability or risk inheriting a PR disaster. Senior leaders and executives that were involved in its construction and ongoing integrity management know about the skeletons that were buried. Many (not all) of the same cowboys put CGL into motion, purchased CPL, and drove us into MX - all mistakes that they have yet to pay for in full.
Any assignment of the debt to the liquids company will have to be proportional. There will be independent advisors managing this from both sides with lots of scrutiny from many partners. I suspect even the banks will have a say in how this gets done. Tough to play funny business on this one.
I look for Transcanada to offload most of the CGL and Keystone debt on the new liquids spin-co and set it to sail for a buyout.
Already down 6% in todays BULL market day. Tells you something…….
“I guess no one wanted to buy the liquids assets. Surprise surprise.”
I wonder if it’s because TC overvalued those assets. Market should correct that once they get on TSX. I would be curious to see how they are going to handle splitting owned shares. Do we get one of each?
What are the names of the two companies?
Don't hold your breath for bonuses next March. I predict, continued sale of assets, another VRP, and more layoffs. Executive leadership is primarily focused on keeping the dividend up for investors. Employees get a kick in the rear because of the poor decisions of Executive leadership. Very ironic that the leadership over Coastal Gas Link will be empowered at the split of new the liquids company with the project over budget by $8 BILLION! That mishap would have prevented the undervalued sale of a stake in the core Columbia companies, propped-up stock price, and a nice dividend without the burdening everyone.
Splitting TCE into two separate "investor grade" companies makes them salable and easier for a takeover. At this point it is like selling a low valued car for parts just to make money. TCE board should reevaluate C-suite leadership and look at the stock value over their tenure.
With the split, US leadership will not have anything to do with Coastal GL. Bev will be leading liquids and CGL. Stan-the-man will lead all natural gas business.
Less risk. Higher income in solid assets, risky assets could underperform but it’s better for tax purposes
The same US leadership that suggested using ChatGPT to write your emails after it was banned corporately? Heh crack that whip.
I guess no one wanted to buy the liquids assets. Surprise surprise.
Good news. US leadership will whip CGO into shape.