Yahoo Finance TC Energy (TRP) Wins Privacy Shield to Keep Insurers Secret
TC Energy Corporation TRP has been granted the privacy shield by the Canada Energy Regulator (“CER”) to keep the names of its insurance providers confidential.
In a recent filing, the CER granted the privacy shield to the company for its network of natural gas lines, namely TransCanada PipeLines Ltd., Nova Gas Transmission Ltd., Foothills Pipe Lines Ltd., Trans Québec & Maritimes Pipeline Inc. and Great Lakes Pipeline Canada Ltd.
In times of rising opposition against the development of the Canada oil sands, privacy shield assumed greater importance to avoid triggering outrage from indigenous and environmental groups, which have been campaigning around companies’ insurers for the past few years.
TC Energy became the second Canada-based pipeline firm to obtain permission to keep the names of its insurance providers a secret. In April, Trans Mountain Corporation received permission to withhold names of its oil pipeline’s insurers after winning a battle against protestors, who made efforts to oppose participants in financing the fossil fuel industry.
Trans Mountain claimed that revealing the identity of insurers resulted in the termination of insurance coverage, a sharp decline in available insurance capacity and a significant rise in insurance costs. The company added that the continued disclosure of insurer names would induce targeting and pressure on insurers to discontinue or restrict coverage.
Unlike Trans Mountain, TC Energy did not prove that oppositions reduced the number of insurance companies, which are willing to provide gas pipeline coverage or raise policy premiums. This is because the identities of insurance firms are considered as private commercial information under the legislation that defines its mandate.
Pipeline insurers’ names still have to be disclosed to the agency. Notably, information related to the limit of liability or amount of coverage, the insurance broker issuing the certificate, the policy dates for coverage, and the type of coverage will be available to the public.
Company Profile & Price Performance
Headquartered in Calgary, AB, TC Energy is a premier natural gas-focused midstream energy service provider. The company is involved in other businesses, including power generation, natural gas storage and crude oil pipelines.
Shares of the company have outperformed the industry in the past six months. Its stock has gained 6.5% compared with the industry’s 6.3% growth.
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Zacks Rank & Stocks to Consider
The company currently carries a Zack Rank #4 (Sell).
Some better-ranked players in the energy space are Denbury Inc. DEN, Matador Resources Company MTDR and SM Energy Company SM, each currently carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Denbury’s earnings for 2021 are expected to increase 122.6% year over year.
Matador’s earnings for 2021 are expected to rise 28.9% year over year.
SM Energy’s earnings for 2021 are expected to surge 1,157.5% year over year.
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