Enbridge, TransCanada shares recover from steep dive following U.S. tax ruling

Must Read

School District 60 Band Bottle Drive

FORT ST. JOHN, B.C. - The School District 60 Band is holding a Bottle Drive this Saturday. Funds being raised...

Survey results are in from a Resource sector based survey

VANCOUVER, B.C. - The results are in for the inaugural BC Natural Resources Survey conducted by the BC Chamber...

Missing man located

FORT ST. JOHN, B.C. - The RCMP report Cameron James Fitzpatrick has been found. The Fort St John RCMP express...

CALGARY, A.B. — Shares in Canadian pipeline companies Enbridge Inc. and TransCanada Corp. are recovering from a steep sell-off Thursday after the U.S. eliminated a tax break for owners of certain interstate pipelines.

Both Calgary-based companies hold such pipelines in the United States through master limited partnerships or MLPs.

The decision by the U.S. Federal Energy Regulatory Commission came in response to an earlier court ruling that found its long-standing tax policy could result in double recovery of costs for MLPs.

- Advertisement -

Enbridge shares fell by 4.2 per cent to $41.06 on Thursday but recovered to as much as $42.15 on Friday after it issued a statement that says it is not expecting a “material change” to its financial guidance over the next three years because of the FERC ruling.

TransCanada shares dropped 2.1 per cent to $55.89 on Thursday but recovered to as much as $56.45 on Friday.

In a report, CIBC analysts estimated the FERC ruling would knock about $3 per share from of its valuation of Enbridge and $1 per share for TransCanada, adding the tax ruling may convince some U.S. MLPs to convert to corporations.


More Articles Like This