Sunday, February 24, 2013

TransCanada Is Much More Than Keystone XL

The Keystone Pipeline may not have been built, but TransCanada (NYSE: TRP  ) continues to be a major player in the midstream energy business. Tyler Crowe, in this video, explains how TransCanada not only moves oil, but also moves natural gas, and produces electricity from a variety of sources (e.g. natural gas, hydroelectric, or nuclear).� While the current P/E is a bit high, TransCanada plans on spending $12 billion in the next three years on building out its business. This buildout should add significant revenues, and makes the company worth the high multiple it sells for.

The growing production of natural gas from hydraulic fracturing and horizontal drilling is flooding the North American market, and resulting in record-low prices for natural gas. Enterprise Products Partners, with its superior integrated asset base, can profit from the massive bottlenecks in takeaway capacity by taking on large-scale projects. To help investors decide whether Enterprise Products Partners is a buy or a sell today, click here now to check out The Motley Fool's brand new premium research report on the company.

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