TransCanada Continues to Report Strong Performance
Calgary, Alberta - (TSE: TRP) (NYSE: TRP) Oct. 29, 2002
(All financial figures are in Canadian dollars unless noted otherwise)
"We are pleased to report continued solid earnings for the third quarter," said Hal Kvisle, TransCanada's chief executive officer. "Our positive earnings, cash flow and strong balance sheet are a direct result of our commitment to operational excellence and our low risk, asset-based approach to conducting business."
In the third quarter 2002, TransCanada furthered its strategy of growing and optimizing its power assets by signing an agreement with an affiliate of El Paso Corporation for the acquisition of the 300-megawatt (MW) ManChief power plant near Brush, Colorado. TransCanada expects to complete the approximately US$127 million transaction (subject to post-closing adjustments) in the fourth quarter 2002.
"The ManChief acquisition will bring the amount of power TransCanada owns, controls or has under construction to more than 2,550 megawatts," said Mr. Kvisle. "The entire capacity of the plant is sold under long-term tolling contracts and will be immediately accretive to earnings."
Also in the third quarter 2002, TransCanada acquired a general partnership interest in Northern Border Partners, L.P. for $19 million. As a result of this transaction, TransCanada is entitled to a 17.5 per cent vote on the partnership policy committee of Northern Border Partners, L.P., which owns 70 per cent of Northern Border Pipeline Company.
"Our management role in Northern Border Partners will contribute to TransCanada's ability to bring northern natural gas to the growing North American marketplace," said Mr. Kvisle. "The Northern Border Pipeline transports gas from the Montana-Saskatchewan border to markets in the midwestern United States. In our view, it is a preferred route to move gas from the North to markets in the future."
He concluded, "Over the past two years, we have consistently applied a disciplined and steady approach to the management and growth of our pipeline and power businesses. As a result, TransCanada continues to improve its strong financial position and deliver solid results to its shareholders - a significant accomplishment during a volatile time for the energy industry.
"There are numerous opportunities in the North American marketplace in both pipelines and power generation. We are in the enviable position of having the financial capacity to act when the time is right," he said. "However, as we have stated before, we will be prudent and continue to approach each opportunity with a focus on enhancing and maximizing shareholder value while
maintaining our financial integrity."
TransCanada will hold a teleconference today at 1:00 p.m. (Mountain) / 3:00 p.m. (Eastern) to discuss the third quarter 2002 financial results and general developments and issues concerning the company. Analysts, members of the media and other interested parties wanting to participate in the call should dial 1-800-273-9672 or 416-695-5806 (Toronto area) at least 10 minutes prior to the start of the call. No pass code is required. A live audio web cast of the teleconference will also be available on TransCanada's web site at http://www.transcanada.com/.
The conference will begin with a short address by members of TransCanada's executive management, followed by a question and answer period for investment analysts. A question and answer period for members of the media will immediately follow.
A replay of the teleconference will be available two hours after the conclusion of the call until midnight, November 5, 2002 by dialing 1-800-408-3053 or 416-695-5800 (Toronto area) and entering passcode 1291106. The web cast will be archived and available for replay.
TransCanada is a leading North American energy company. It is focused on natural gas transmission and power services with employees who are expert in these businesses. The company's network of approximately 38,000 kilometres of pipeline transports the majority of western Canada's natural gas production to the fastest growing markets in Canada and the United States. TransCanada owns, controls or is constructing a total of approximately 2,250 megawatts of power -- an amount of power that can meet the needs of more than two million average households. The company's common shares trade under the symbol TRP on the Toronto and New York stock exchanges.
For further information, please contact:
Glenn Herchak / Kurt Kadatz
Investor & Analyst Inquiries:
David Moneta / Debbie Persad
Toll free (888) 887-7717