Tc Energy Corporation · TSX:TRP
Tc Energy — Investor Day (November 2020)
101 slides from Tc Energy's investor day presentation, Nov 17, 2020
Slide 1: 2020 Investor Day
2020 Investor Day November 17, 2020
Slide 2: Forward looking information and non-GAAP measures
Forward looking information and non-GAAP measures This presentation includes certain forward looking information, including future oriented financial information or financial outlook, which is intended to help current and potential investors understand management’s assessment of our future plans and
Slide 3: Strategic Overview
Strategic Overview Russ Girling President and Chief Executive Officer
Slide 4: Successful long-term strategy driven by…
Successful long-term strategy driven by… • A consistent approach to capital allocation that emphasizes financial strength and flexibility • A focus on long-term industry fundamentals when making investment decisions • A low-risk business model that produces results during all phases of the economic
Slide 5: Proven capital allocation framework delivers results
Proven capital allocation framework delivers results Critical energy infrastructure assets generate long-term cash flows Invested Returned in complementary to shareholders low-risk assets through growing dividends Produced double-digit average annual total shareholder return since 2000
Slide 6: Invested ~$110 billion in three core businesses since 2000
Invested ~$110 billion in three core businesses since 2000 2000: $20 billion total assets 2020: $102 billion total assets Comparable EBITDA* outlook $9.3 Billion** *Comparable EBITDA is a non-GAAP measure. See the forward looking information and non-GAAP measures slide at the front of this presentat
Slide 7: Capital investment has created significant value
Capital investment has created significant value Dollars Dollars 7% 5% CAGR CAGR Substantial growth in earnings and cash flow per share *Comparable earnings per common share and comparable funds generated from operations per common share are non-GAAP measures. See the forward looking information and
Slide 8: Low-risk business model has consistently produced results
Low-risk business model has consistently produced results COVID-19 and OPEC+ Dollars developments Supported by MLP Oil price distress Strong business fundamentals collapse Regulated assets Financial Shale crisis revolution Long-term contracts IPP downfall Limited commodity exposure Creditw
Slide 9: Twenty consecutive years of common share dividend increases
Twenty consecutive years of common share dividend increases 7% CAGR Supported by growth in earnings and cash flow and strong coverage ratios
Slide 10: Performance has resulted in significant share price appreciation
Performance has resulted in significant share price appreciation Dollars Common share price - TSX 12 per cent average annual total shareholder return since 2000 Source: FactSet data from January 1, 2000 to November 10, 2020
Slide 11: Superior total shareholder return
Superior total shareholder return Per cent 985% 261% 237% Significantly outperforming the market Source: FactSet data from January 1, 2000 to November 10, 2020
Slide 12: A leading North American energy infrastructure company
A leading North American energy infrastructure company One of 93,300 km (57,900 mi) of pipeline North America’s largest 653 Bcf of storage capacity natural gas pipeline Transports ~25% of demand networks Premier 4,900 km (3,000 mi) of pipeline liquids pipeline 590,000 Bbl/d system Transports 20% of
Slide 13: 2020 Accomplishments
2020 Accomplishments Continued to reliably deliver essential energy services across North America • With few exceptions, flows and utilization levels remain in-line with historical norms Generated near record financial results through the first nine months • Comparable earnings of $3.05 per common s
Slide 14: ESG highlights
ESG highlights Environment Social Governance Methane Guiding Principles $10 billion in direct economic 29% Board Members are female Signatory value distributed with 30% target 75% emission-less power $690+ million spent with Investing over $1 billion annually portfolio Indigenous businesses in 2019
Slide 15: Our Leadership Team
Our Leadership Team Don Marchand François Poirier Executive VP, Strategy & Russ Girling Chief Operating Officer and President, Corporate Development President and Chief Executive Officer Power & Storage and Chief Financial Officer Stan Chapman Executive VP and President, 2.50 Wendy Hanrahan Corey He
Slide 16: Strategic Overview
Strategic Overview François Poirier Chief Operating Officer and President, Power & Storage
Slide 17: Energy transition will create opportunities
Energy transition will create opportunities • Energy demand is expected to grow with oil and natural gas an important part of the global fuel mix • Energy transition will take time, requiring technological breakthroughs and cooperation amongst stakeholders • Government policy will help shape the fut
Slide 18: Key strategic priorities
Key strategic priorities Delivering energy safely and reliably, every day Maximizing value of our existing assets Executing secured capital program on-time and on-budget Advancing portfolio of low-risk growth opportunities Maintaining our financial strength and flexibility Cultivating strong working
Slide 19: Global primary energy demand outlook through 2040
Global primary energy demand outlook through 2040 *mtoe Natural gas demand grows by ~1,000 mtoe Oil demand grows by ~300 mtoe Renewables demand grows by ~1,680 mtoe Over 50% of demand fulfilled by natural gas and oil through 2040 Source: International Energy Agency, World Energy Outlook 2020, Stated
Slide 20: North American energy outlook through 2040
North American energy outlook through 2040 North American Natural Gas North American North American Demand and LNG Exports Liquids Production Power Capacity Bcf/d MBbl/d GW 2019 2030 2040 *Includes bioenergy, geothermal and other Source: Natural Gas Demand and LNG Exports - TC Energy Forecast 2020,
Slide 21: Well positioned to succeed as the energy landscape evolves
Well positioned to succeed as the energy landscape evolves Our extensive network of critical energy infrastructure assets will be used for decades Base business will continue to generate significant opportunities New prospects will unfold as the world transitions to a lower carbon future We are in t
Slide 22: Extensive asset footprint is a strong competitive advantage
Extensive asset footprint is a strong competitive advantage Canadian Mainline is a critical NGTL System is uniquely conduit to eastern markets positioned over 1,383 Tcf of WCSB natural gas resources Bruce Power generates ~30% of Ontario’s power Keystone corridor provides a direct link to world’s lar
Slide 23: Advancing $37 billion secured capital program
Advancing $37 billion secured capital program $22 billion of Natural Gas Pipelines projects • Connecting abundant, low-cost supply in the WCSB and Appalachia to premium markets • Reinforced by cost of service regulation and/or long-term, take-or-pay contracts $13 billion of Liquids Pipelines project
Slide 24: Comparable EBITDA outlook 2015-2024E
Comparable EBITDA* outlook 2015-2024E $Billions 8% 12+ CAGR Power & Storage 2024+ • Bruce Power refurbishments 9.3 Liquids Pipelines 9% • Traditional replenishment of CAGR project portfolio Mexico Natural Gas Pipelines • Executable in-corridor expansions 5.9 • Considerable opportunity U.S. Natural G
Slide 25: Vast opportunity set the backdrop for continued disciplined growth
Vast opportunity set the backdrop for continued disciplined growth Unparalleled demand for infrastructure under all energy mix scenarios Today’s needs Low-carbon future Projects under Electrification Bruce Power MCR development of fleet and AM programs $37 billion Renewables building on Highly-execu
Slide 26: Dividend growth outlook
Dividend growth outlook 8-10% anticipated in 2021 5-7% $3.24 Expected growth per annum 2021+ 7% CAGR • $37 billion secured growth program • Robust development portfolio • Irreplaceable asset footprint driving in-corridor expansions • Deep capabilities and proven origination abilities • Growth rate w
Slide 27: Strategic Overview
Strategic Overview ¢
Slide 28: Canadian Natural Gas Pipelines
Canadian Natural Gas Pipelines Tracy Robinson Executive Vice-President and President, Canadian Natural Gas Pipelines
Slide 29: Natural Gas Pipelines system overview
Natural Gas Pipelines system overview High-quality pipeline 93,300 km (57,900 mi) of network cannot be natural gas pipelines replicated 653 Bcf of storage capacity WCSB Access to abundant, Assets on top of two of the cost-competitive most prolific, low-cost supply basins in North America Connectivit
Slide 30: North America's major supply basins
North America’s major supply basins WCSB 2019 - 1,383 Tcf • Technology changes led to the discovery of 2007 - 165 Tcf clean and abundant natural gas supply Appalachia • Natural gas production costs fell significantly 2019 - 1,470 Tcf 2007 - 95 Tcf • Infrastructure builds adapted to the rapidly Rocki
Slide 31: North American natural gas fundamentals through 2040
North American natural gas fundamentals through 2040 +43 Bcf/d Growth primarily driven by power +45 Bcf/d +45 Bcf/d Growth primarily from the WCSB, generation and LNG exports Appalachian and Permian basins Bcf/d North American demand Bcf/d North American supply +43 BCF/d Underscores the need for sig
Slide 32: Canadian Natural Gas Pipelines system overview
Canadian Natural Gas Pipelines system overview NGTL, Canadian • ~39,800 km of pipeline Mainline and • Connects WCSB to five North Foothills systems American markets: NIT, Dawn, California, U.S. Northeast and Chicago Coastal GasLink • 670 km of pipeline from Dawson Creek to LNG Canada • Connects WCSB
Slide 33: 2020 Accomplishments
2020 Accomplishments Placed $3.1 billion of capital projects in service to date Achieved long-term settlements with customers on the NGTL System and the Canadian Mainline Capacity Optimization Open Season resulted in benefits for customers and the NGTL System while affirming need for capacity Coasta
Slide 34: Demand for Canadian gas is growing and WCSB is competitive
Demand for Canadian gas is growing and WCSB is competitive Significant growth between 2020 and 2040 +50 +9 of supply under $1.00/GJ break-even cost • Driven primarily by LNG exports, Bcf/d oil sands and power generation years at current production rates Demand for Canadian natural gas Bcf/d $/GJ (NI
Slide 35: Expanding market access for WCSB natural gas
Expanding market access for WCSB natural gas NGTL System Increasing access to supply +$9.9B and market Canadian Mainline Increasing connectivity into the +$0.4B Eastern Triangle Coastal GasLink Providing connection to +$0.2B* international markets • Supporting Alberta’s transition from coal to natur
Slide 36: Average investment base and net income outlook
Average investment base and net income outlook* Average investment base Net income $Billions $Billions 8% CAGR 8% 8% CAGR CAGR Well positioned for continued long-term growth *See the forward looking information and non-GAAP measures slide at the front of this presentation for more information.
Slide 37: Future growth opportunities
Future growth opportunities Near term Medium term Long term Increase connectivity Leverage network for growth Position footprint for the future Attract volumes in the Montney Coal-to-gas switching in Alberta power ~3,800 MW of natural gas region, improving access to supply sector compression could b
Slide 38: Looking ahead
Looking ahead Operate safely and Leverage existing Advance secured growth Capture additional reliably, every day infrastructure and projects on time and growth opportunities right-of-way on budget along existing corridor Reduce emissions from Optimize the capital and Position our business to our ope
Slide 39: Canadian Natural Gas Pipelines
Canadian Natural Gas Pipelines Tracy Robinson Executive Vice-President and President, Canadian Natural Gas Pipelines
Slide 40: U.S. and Mexico Natural Gas Pipelines
U.S. and Mexico Natural Gas Pipelines Stan Chapman Executive Vice-President and President, U.S. and Mexico Natural Gas Pipelines
Slide 41: U.S. Natural Gas Pipelines system overview
U.S. Natural Gas Pipelines system overview Broad Own and/or operate diversified national network platform of 13 pipelines that transport ~27% of U.S. average daily demand* Value of pipe in Existing assets continue to the ground is at a experience record demand despite premium COVID-19 Multiple pla
Slide 42: Strong operational performance in 2020 despite COVID-19
Strong operational performance in 2020 despite COVID-19 U.S. demand recovered from COVID-19 Pipeline* Contracted capacity impacts with U.S. LNG exports reaching ANR 100% all-time high of ~10 Bcf/d Columbia Gulf 100% GTN 100% U.S. supply decreased ~7 Bcf/d from 2019 all- Millennium 100% time high due
Slide 43: 2020 Accomplishments
2020 Accomplishments Positioned to deliver record EBITDA for the 4th consecutive year On-track to complete US$1.1 billion Modernization II program and Buckeye XPress Project on-time and on-budget at year-end Environmental and operational focus reduced methane intensity 14% year-over-year Filed Colum
Slide 44: Fundamentals support natural gas growth
Fundamentals support natural gas growth U.S. Demand U.S. Supply Bcf/d Bcf/d * 2019 – Actual IHS – 2040 IHS – Feb Forecast EIA – 2040 * Represents gross Canadian pipeline imports to the U.S. Source: IHS Markit, U.S. Long-Term Natural Gas Outlook, September 2020; EIA Annual Energy Outlook, 2020 IHS Ma
Slide 45: Attractive near-term growth
Attractive near-term growth Projects Supply / Demand Capacity Expected Estimated Capital Cost (Bcf/d) In-Service Date (US$Billions) Projects in-service since 2016 7.7 7.9 Buckeye XPress Supply 0.3 Dec 2020 0.2 Grand Chenier XPress Demand 1.1 Apr 2021 0.2 Westbrook XPress1 Demand 0.1 Nov 2021 0.1 GTN
Slide 46: Rate case optimization
Rate case optimization Columbia Gas Transmission Rate Case Litigation Settlement Q4 2020: Settlement +20 years Since last rate case filing discussions commence Q2 2021: Testimony by FERC and Intervenors +US$1 billion Of cumulative maintenance capital spend that exceeded depreciation June 2021: Heari
Slide 47: Well positioned for long-term growth
Well positioned for long-term growth Optimization and Electrification Like-for-like replacement and furthering the electrification of our fleet Connectivity Carbon Capture and RNG** Increasing capacity to LNG, Capturing and sequestering existing power generation, and LDCs* emissions through carbon m
Slide 48: Comparable EBITDA outlook
Comparable EBITDA* outlook US$Billions 16% CAGR Continuous value creation from our diversified portfolio * Comparable EBITDA is a non-GAAP measure. See the forward looking information and non-GAAP measures slide at the front of this presentation for more information.
Slide 49: Looking ahead
Looking ahead On-time and on-budget Leverage our diversified Culture of continuous project execution portfolio improvement Consistent EBITDA growth Innovation and new technology New conventional and Safe, reliable delivery of transitional growth essential energy Increased margins on open opportuniti
Slide 50: Mexico Natural Gas Pipelines system overview
Mexico Natural Gas Pipelines system overview Assets connect Five pipelines transport 25% of Mexico’s abundant, low-cost natural gas U.S. natural gas Portfolio value continues to increase supply to key markets 20% of U.S. natural gas imports supplied by Sur de Texas Natural gas displaces emissions fr
Slide 51: 2020 Accomplishments
2020 Accomplishments Completed construction of Tula East segment and Guadalajara Pipeline Flow Reversal Amended the Guadalajara transport contract with the CFE Advanced Villa de Reyes project construction; in-service expected mid-2021 100% asset reliability and zero employee safety incidents in 2020
Slide 52: Long-term demand drives increased U.S. imports
Long-term demand drives increased U.S. imports Mexican natural gas demand by sector through 2040 U.S. natural gas imports to Mexico through 2040 Bcf/d U.S. natural gas imports 60% Bcf/d 8 7 2040 2030 5 2019 Natural gas consumption substantially lowers emissions by displacing fuel oil and diesel used
Slide 53: Completing projects reduces air emissions and promotes in-corridor expansions
Completing projects reduces air emissions and promotes in-corridor expansions Project update Growth opportunities Guadalajara reversal Cross-border projects Displaces LNG supply with Waha natural gas Joint marketing of CFE U.S. capacity to supply growing and new markets Villa de Reyes Pacific LNG ex
Slide 54: Comparable EBITDA outlook
Comparable EBITDA* outlook US$Billions 14% CAGR 99% of EBITDA underpinned by long-term, take-or-pay contracts * Comparable EBITDA is a non-GAAP measure. See the forward looking information and non-GAAP measures slide at the front of this presentation for more information.
Slide 55: Looking ahead
Looking ahead Commission Villa de Reyes Connect to power and gas Leverage CFE relationship in mid-2021 users to increase to secure projects utilization Resolve CFE contract Pursue cross-border issues opportunities Promote emissions Operate safely and reliably Provide cost-effective reductions by dis
Slide 56: U.S. and Mexico Natural Gas Pipelines
U.S. and Mexico Natural Gas Pipelines Stan Chapman Executive Vice-President and President, U.S. and Mexico Natural Gas Pipelines
Slide 57: Liquids Pipelines
Liquids Pipelines Bevin Wirzba Executive Vice-President and President, Liquids Pipelines
Slide 58: Liquids Pipelines system overview
Liquids Pipelines system overview Access to 4,900 km (3,000 mi) of ~14 million Bbl/d liquids pipelines of refining capacity Long-term, take-or-pay commercial structures Keystone Pipeline System Strategic corridor to key ~20% of Western Canadian demand markets crude oil exports ~94% contracted Intra-
Slide 59: North American oil is in the world's best interest
North American oil is in the world’s best interest % proven global oil reserves % aggregated ESG scores Canada and U.S. Have the highest ESG performance ratings Third (Canada) and eighth (U.S.) largest proven global oil reserves Top 10 countries hold 80% of proven global oil reserves Source: Reserve
Slide 60: 2020 Accomplishments
2020 Accomplishments Safely delivered approximately three billion barrels since inception Successfully completed the Houston Tank Terminal Expansion project, on time and under budget Strengthened our commitment to working with Indigenous communities by signing historic partnership agreement with Nat
Slide 61: Sustained demand for Canadian crude oil
Sustained demand for Canadian crude oil Per cent Ex-Hardisty throughput utilization* U.S. crude oil inventory Million Bbl/d COVID-19 / OPEC+ U.S. crude oil inventory is decreasing, however remains above the five-year average range *as a percentage of permitted capacity Well-positioned to respond to
Slide 62: Canadian production resilient and a key supplier for U.S. Gulf Coast
Canadian production resilient and a key supplier for U.S. Gulf Coast Canadian oil sands production U.S. Gulf Coast heavy crude oil refinery runs Million Bbl/d Million Bbl/d COVID-19 / OPEC+ COVID-19 / OPEC+ Source: IHS Markit North American Crude Oil Markets Canadian Fundamentals Data – Third Quarte
Slide 63: Advancing Keystone XL
Advancing Keystone XL Project Labor Five First Nations signed historic U.S./Canada Agreement agreement for equity ownership Final Investment border crossing announced with of up to $1 billion through Decision completed four U.S. unions Natural Law Energy MARCH JULY SEPTEMBER 2021+ Government of Cons
Slide 64: Growth opportunities
Growth opportunities The CFE announced 6.5 GW of new gas ASSET UTLIZATION AND ASSET fired power UTLIZATION plants by 2025 withAND 4 within GROWTH TC’sGROWTH corridor1 Developing in-corridor projects Leveraging footprint fully approved by regulator Enhance connectivity to expand market access and • G
Slide 65: Comparable EBITDA outlook
Comparable EBITDA* outlook $Billions 11% CAGR EBITDA underpinned by long-term take-or-pay contracts with creditworthy counterparties * Comparable EBITDA is a non-GAAP measure. See the forward-looking information and non-GAAP measures slide at the front of this presentation for more information.
Slide 66: Looking ahead
Looking ahead Continue safely Enhance existing business by Progress Keystone XL delivering Canadian crude to leveraging strategic footprint construction key refining markets Delivering Maximizing Executing Incorporate green generation Further develop innovative Preserve strong relationships to reduc
Slide 67: Liquids Pipelines
Liquids Pipelines Bevin Wirzba Executive Vice-President and President, Liquids Pipelines
Slide 68: Power and Storage
Power and Storage Corey Hessen Senior Vice-President, Power & Storage
Slide 69: Power and Storage asset overview
Power and Storage asset overview Power • Seven power plants, approximately 4,200 MW • Portfolio of low-cost baseload generation • Underpinned by long-term contracts • ~75% emission-less generation Storage • Alberta non-regulated natural gas storage facilities • 118 Bcf of capacity • Approximately on
Slide 70: 2020 Accomplishments
2020 Accomplishments Achieved solid financial results through safe and efficient operations Advanced Bruce Power life extension; Unit 6 MCR project preparation phase completed October 1 Bruce Power continued harvesting Cobalt-60 isotopes to help the fight against COVID-19 and for other medical uses
Slide 71: Bruce Power overview
Bruce Power overview • 48.4% ownership interest • 6,400 MW (TC Energy share 3,109 MW) • Provides ~30% of Ontario’s electricity needs • Power sales fully contracted with Ontario IESO through 2064 • Ontario Power Generation responsible for spent fuel and decommissioning liabilities • Life Extension Pr
Slide 72: Bruce Power Life Extension Program
Bruce Power Life Extension Program Major Component Replacement (MCR) and Asset Management (AM) continues to progress on time and on budget • Unit 6 MCR commenced in January 2020 Unit 6 MCR and AM reflected in ~$79/MWh power price • Future MCR-related price adjustments to occur from 2022 to 2030 Expe
Slide 73: Bruce Power innovations
Bruce Power innovations A leading supplier of medical isotopes • Cobalt-60 helps to sterilize 40% of the world’s medical devices and treat complex forms of cancer • Partnership established with the Saugeen Ojibway Nation to jointly market isotopes and create new economic opportunities within their t
Slide 74: Power market fundamentals – capacity mix for North America
Power market fundamentals – capacity mix for North America GW • Natural gas, solar and wind continue to displace coal • Demand for energy storage increases • Economic growth, demographics, electrification, energy efficiency and distributed energy resources all impact grid demand *Includes bioenergy,
Slide 75: Power and Storage growth opportunities
Power and Storage growth opportunities Current business Technology today Transformative future technology Renewables: leveraging our footprint and competitive strengths Bruce Power Firming resources: pumped hydro and battery energy storage to manage growing intermittency Canadian Power (Cogeneration
Slide 76: Pumped hydro storage projects
Pumped hydro storage projects 75 MW Canyon Creek Ontario pumped hydro energy benefits: pumped hydro energy storage ($0.2 billion) 490,000 tonnes = 150,000 cars per year reduction in taken off of the road greenhouse gas emissions 1,000 MW Ontario pumped hydro energy storage $250 million savings ($3.3
Slide 77: Electrification of our operations
Electrification of our operations Exploring opportunities to electrify our energy consumption • Select electrification of pipeline compression • Source renewable electricity for existing loads Enhancing sustainability across our systems
Slide 78: Comparable EBITDA outlook
Comparable EBITDA* outlook $Billions Bruce Power MCR: Unit 6 offline 2020-2023 6% CAGR Sale of assets** Solid base with long-term future growth in earnings *Comparable EBITDA is a non-GAAP measure. See the forward looking information and non-GAAP measures slide at the front of this presentation for
Slide 79: Looking ahead
Looking ahead Operate safely and reliably Five additional Bruce Power Exploring low-risk North MCRs under development American investment Optimize operations opportunities Complete Bruce Power Pumped storage projects Increase fuel and Unit 6 MCR technology diversity Select electrification of pipelin
Slide 80: Power and Storage
Power and Storage Corey Hessen Senior Vice-President, Power & Storage
Slide 81: Finance
Finance Don Marchand Executive Vice-President, Strategy & Corporate Development and Chief Financial Officer
Slide 82: Core principles
Core principles Adherence to Long-term view grounded in established, conservative risk Simple model and fundamentals preferences corporate structure Footprint is irreplaceable Assets are resilient and earn Business is understandable appropriate returns Capital allocation balances Financial strength
Slide 83: ESG is a long-standing strength and priority
ESG is a long-standing strength and priority ESG a modern moniker for how we have historically run our business • Reputation is sacrosanct – tremendous breadth and diversity of stakeholders Sixty-plus year legacy of integrity, safety, reliability and accomplishment • World-class capabilities in deve
Slide 84: 2020 Accomplishments
2020 Accomplishments $Billions 2020 Funding program complete Largely unimpacted asset utilization and performance of counterparties underscore criticality of our services Debt issuances, Fulfilling our obligations to people, communities, suppliers Debt commercial paper and governments on a full and
Slide 85: Diversified portfolio of critical energy infrastructure
Diversified portfolio of critical energy infrastructure 2020E Comparable EBITDA* Power & Storage Canadian Natural Gas Pipelines • Bruce fully contracted to 2064 • Full cost of service under CER regulation • Merchant Alberta power and gas storage assets represent • Five- and six-year settlements appr
Slide 86: Financial risks and levers
Financial risks and levers Counterparty • Diverse and heavily investment-grade consolidated portfolio; monitoring certain WCSB and Appalachian producer exposures • Mitigated by mix of regulation, value of transport, high contract utilization, improving price curves and access to capital, industry co
Slide 87: Advancing $37 billion secured capital program through 2023
Advancing $37 billion secured capital program through 2023 Estimated Invested to Expected Project Secured capital program Capital Cost* Date* In-Service Date* universally backed by NGTL System 3.3 3.3 2020 high-quality, long-duration Modernization II US 1.1 US 1.1 2020 contractual or regulated reven
Slide 88: Capital expenditure outlook 2021-2023
Capital expenditure outlook 2021-2023 $Billions 13.8 • Secured growth portfolio • Maintenance capital • ~90% has opportunity to earn a return on and of capital through current and future tolls 8.5 • Capitalized interest and debt AFUDC 5.4 • Liquids Pipelines capital spending largely reflects Keyston
Slide 89: Funding program outlook 2021-2023
Funding program outlook 2021-2023 $Billions KXL funding • Target top credit in sector Debt maturities DRP Commercial Hybrid paper, • Robust liquidity underpinned by: cash on hand • Resilient and growing cash flow GoA guaranteed Dividends, and other Senior debt project-level debt • $10+ billion of co
Slide 90: Comparable EBITDA outlook 2015-2024E
Comparable EBITDA* outlook 2015-2024E $Billions 12+ 7% CAGR Power & Storage 2024+ • Bruce Power refurbishments 9.3 Liquids Pipelines 9% • Traditional replenishment of CAGR project portfolio Mexico Natural Gas Pipelines • Executable in-corridor expansions 5.9 • Considerable opportunity U.S. Natural G
Slide 91: Stability and longevity of core asset base
Stability and longevity of core asset base Comparable EBITDA* ($Billions) $10+ billion supplemented by US$1.3 billion of KXL contracted EBITDA • Completion of $37 billion secured growth program • Predominately recoverable maintenance capital • Normal course re-contracting • Minimal contribution from
Slide 92: Vast opportunity set the backdrop for continued disciplined growth
Vast opportunity set the backdrop for continued disciplined growth Unparalleled demand for infrastructure under all energy mix scenarios Today’s needs Low-carbon future Projects under Electrification Bruce Power MCR development of fleet and AM programs $37 billion Renewables building on Highly-execu
Slide 93: Dividend growth outlook
Dividend growth outlook 8-10% anticipated in 2021 5-7% $3.24 Expected growth per annum 2021+ 7% CAGR • $37 billion secured growth program • Robust development portfolio • Irreplaceable asset footprint driving in-corridor expansions • Deep capabilities and proven origination abilities • Growth rate w
Slide 94: Historic yields
Historic yields 5.8% 4.6% 2.3% 1.0% 1.4% 0.8% Dividend highly attractive in historic low interest environment that is expected to persist Source: FactSet data from January 1, 2016 to November 10, 2020
Slide 95: Value proposition
Value proposition Financial strength and Strong base of visible Simple, understandable and adherence to risk long-life, low-variability proven model with preferences again exhibited earnings streams irreplaceable asset footprint through extreme market disruption Opportunity set vast and Proven abili
Slide 96: Finance
Finance Don Marchand Executive Vice-President, Strategy & Corporate Development and Chief Financial Officer
Slide 97: Closing Remarks
Closing Remarks Russ Girling, President and Chief Executive Officer François Poirier, Chief Operating Officer and President, Power & Storage
Slide 98: Key takeaways
Key takeaways Leading North American energy infrastructure company • $100 billion of critical assets provide a strong competitive advantage Proven strategy underpinned by low-risk business model • ~95% of comparable EBITDA from regulated or long-term contracted assets Visibility to significant long-
Slide 99: Appendix - Reconciliation of non-GAAP Measures
Appendix - Reconciliation of non-GAAP Measures
Slide 100: Appendix – Reconciliation of non-GAAP measures
Appendix – Reconciliation of non-GAAP measures (millions of dollars) Three months ended September 30 Nine months ended September 30 2020 2019 2020 2019 Comparable EBITDA(1) 2,294 2,344 7,028 7,051 Depreciation and amortization (673) (610) (1,938) (1,839) Interest expense (559) (573) (1,698) (1,747)
Slide 101: Appendix – Reconciliation of non-GAAP measures continued
Appendix – Reconciliation of non-GAAP measures continued (millions of dollars) Three months ended September 30 Nine months ended September 30 2020 2019 2020 2019 Net Cash Provided by Operations 1,783 1,585 5,119 5,256 (Decrease)/increase in operating working capital (120) (140) 187 (329) Funds Gener