(Bloomberg) -- TC Energy Corp. shares rose to the highest in more than four years as the Canadian pipeline company reduced its capital spending forecast because of savings on a pipeline project in Mexico.
Net capital expenditures this year will be about C$7.4 billion to C$7.7 billion ($5.6 billion), 8% lower than originally projected, the company said Thursday in its third-quarter earnings release. The reduction is driven by the Southeast Gateway pipeline project in Mexico, which will require $3.9 billion to $4.1 billion in capital spending, about 11% less than estimated.
The shares climbed as much as 3% in Toronto to touch the highest intraday price since February 2020. Calgary-based TC Energy has advanced about 47% this year.
TC Energy — which has sold assets in recent years after large cost overruns on a Canadian gas pipeline — doesn’t need more divestitures to reach its leverage-reduction targets, executives said on an earnings call. Still, the company is in discussions with indigenous communities in western Canada about selling a stake in its Canadian gas pipeline system after a previous transaction agreed to last summer was halted.
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