Markets Finally Reward TransCanada's Earnings

After the two-day reprieve due to hurricane Sandy, TransCanada is trading higher on Wednesday, after the markets had a chance to react to the company's earnings release from Monday. TransCanada's earnings per share of $0.52 edged-out analyst estimates but, better yet, it's the company's long-term potential that made investors happy. In addition to the $3 billion dollars in projects that went online so far this year, TransCanada has $10 billion more slated for increasing its midstream portfolio by the end of 2015. Besides increasing its revenue base, TransCanada is also strategically positioning itself away from commodity risk exposure by establishing long-term contracts with key customers.

In addition to the steady cash flow potential for TransCanada, savvy investors should look into refiners who stand to benefit from the extension of TransCanada's Gulf Coast, Keystone, and Mainline Conversion projects. All three projects have the potential to supply substantial WTI indexed crude to the Gulf Coast, the East Coast of Canada, and the United States, giving WTI crude access to refiners in these key export locations. 

Midstream is an excellent way to play the energy sector, but our analysts have uncovered another under-the-radar company that's dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out our special free report: "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.

Joel South has no positions in the stocks mentioned above. Taylor Muckerman has no positions in the stocks mentioned above. The Motley Fool owns shares of ExxonMobil. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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