TC Power Company has accomplished the spinoff of its Liquids Pipelines enterprise into South Bow Company.
As a standalone entity, TC Power is “positioned to attain larger success by executing a tailor-made technique to completely seize the incremental worth of its distinctive alternative set,” the corporate stated in an announcement.
“In the present day is a pivotal second for TC Power’s future, one which delivers progress on a strategic precedence and our dedication to shareholders to maximise the worth of our belongings,” TC President and CEO François Poirier stated. “We’re uniquely positioned as a extremely targeted pure gasoline infrastructure and energy and power options firm. We’ll proceed to ship enduring shareholder worth, whereas taking part in a essential function in assembly rising trade and shopper demand for safer, inexpensive and sustainable power throughout North America and globally”.
- Advertisement -
“On behalf of TC Power, I want the group at South Bow all the very best, and I’m excited for the distinctive alternatives that lie forward for them,” Poirier stated. “Rising power demand requires all types of power, and South Bow is well-placed to ship resilient provide to the strongest demand markets in North America”.
South Bow describes itself as a liquids pipelines firm that connects Canadian crude oil provide to the strongest demand and refining markets within the U.S. Midwest and Gulf Coast via its strategic hall, high-quality contractual framework, and investment-grade monetary place. The corporate operates 3,045 miles (4,900 kilometers) of crude oil pipeline infrastructure, connecting Alberta crude oil provides to U.S. refining markets in Illinois, Oklahoma, and the U.S. Gulf Coast
South Bow stated in a separate information launch that it plans to “take a disciplined strategy to capital allocation to ship a compelling return to shareholders, prioritizing strengthening its monetary place and pursuing low-risk, modest capital investments that improve and develop its pre-capitalized hall”.
The corporate added that it intends to pay a robust and sustainable base dividend that’s underpinned by a steady money movement profile.
“In the present day is an thrilling day for South Bow as we begin a brand new chapter of safely and reliably delivering power and forging progress as a essential North American power infrastructure firm,” South Bow President and CEO Bevin Wirzba stated. “We’re assured that as a standalone, publicly traded firm, we’ll unlock vital worth from our unrivalled market place. Supported by sturdy enterprise fundamentals and a strong backdrop for crude oil provide and demand, we’re targeted on creating long-term worth for our prospects, communities, staff, and shareholders.”
South Bow’s widespread shares will start buying and selling on the Toronto Inventory Trade (TSX) on Oct. 2, and are anticipated to start buying and selling on the New York Inventory Trade (NYSE) on or about Oct. 8, 2024, beneath the ticker image SOBO.
In July 2023, TC Power introduced plans to spin off its liquid pipelines enterprise after a two-year strategic assessment, saying it might “higher execute” enterprise alternatives with two separate entities. In October 2023, it appointed trade chief Hal Kvisle because the Chair of the brand new liquids pipeline firm’s board of administrators.
Shareholders of TC Power accepted the spinoff of the liquids pipeline firm in June.
To contact the writer, e mail rocky.teodoro@rigzone.com
What do you assume? We’d love to listen to from you, be part of the dialog on the
Rigzone Power Community.
The Rigzone Power Community is a brand new social expertise created for you and all power professionals to Converse Up about our trade, share information, join with friends and trade insiders and have interaction in an expert group that may empower your profession in power.
