Tc Energy Corporation · TSX:TRP
Tc Energy — Q3 2024 Earnings Presentation
21 slides from Tc Energy's earnings presentation, Nov 7, 2024
Slide 1: Third quarter 2024 conference call
T C E N E R G Y 2T 0H 2I R3 DI NQVUEAS RT TOERR D2A0Y2 4 C O N F E R E N C E C A L L Third quarter 2024 conference call November 7, 2024
Slide 2: Call participants
T C E N E R G Y T2 H 0 2I R3 DI NQVUEASRTTOERR D2A0Y2 4 C O N F E R E N C E C A L L Call participants François Poirier – President and Chief Executive Officer Sean O’Donnell – Executive Vice-President and Chief Financial Officer Stanley G. Chapman, III – Executive Vice-President and Chief Operating
Slide 3: Forward-looking information and non-GAAP measures
T C E N E R G Y T2 H 0 2I R3 DI NQVUEASRTTOERR D2A0Y2 4 C O N F E R E N C E C A L L 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 curren
Slide 4: François Poirier
T C E N E R G Y T2 H 0 2I R3 DI NQVUEASRTTOERR D2A0Y2 4 C O N F E R E N C E C A L L François Poirier President and Chief Executive Officer
Slide 5: Delivering on 2024 priorities
T C E N E R G Y T2 H 0 2I R3 DI NQVUEASRTTOERR D2A0Y2 4 C O N F E R E N C E C A L L Delivering on 2024 priorities MAXIMIZING THE VALUE OF OUR PROJECT EXECUTION ENHANCING BALANCE SHEET ASSETS THROUGH SAFETY AND ON-TIME AND ON-BUDGET STRENGTH AND FLEXIBILITY OPERATIONAL EXCELLENCE • Delivered 6% compa
Slide 6: Reduced cost estimate on Southeast Gateway pipeline project
T C E N E R G Y T2 H 0 2I R3 DI NQVUEASRTTOERR D2A0Y2 4 C O N F E R E N C E C A L L MAJOR PROJECT EXECUTION Reduced cost estimate on Southeast Gateway pipeline project SOUTHEAST GATEWAY PIPELINE Cost estimate reduced by 11% to US$3.9 – US$4.1 billion • On track to achieve commercial in-service no la
Slide 7: Strategically positioned to meet growing natural gas demand
TT C C EE NNEERRGGYY T2H0I 2R 3D IQNUVAERSTTEORR 2D0 A 2 Y4 C O N F E R E N C E C A L L Strategically positioned to meet growing natural gas demand North American natural gas demand forecasted to grow nearly 40 Bcf/d(1) 2023-2035 Current TC Energy natural gas opportunities underpinned by five key pi
Slide 8: Operational excellence and continued demand driving utilization
T C E N E R G Y T2 H 0 2I R3 DI NQVUEASRTTOERR D2A0Y2 4 C O N F E R E N C E C A L L Q3 HIGHLIGHTS Operational excellence and continued demand driving utilization CANADIAN NATURAL GAS PIPELINES Net income(1) Comparable EBITDA(2) Average NGTL System receipts of 13.9 Bcf/d +2% +8% Set all-time power de
Slide 9: Sean O'Donnell
T C E N E R G Y T2 H 0 2I R3 DI NQVUEASRTTOERR D2A0Y2 4 C O N F E R E N C E C A L L Sean O’Donnell Executive Vice-President and Chief Financial Officer
Slide 10: Capital discipline driving a revised outlook
T C E N E R G Y T2 H 0 2I R3 DI NQVUEASRTTOERR D2A0Y2 4 C O N F E R E N C E C A L L Capital discipline driving a revised outlook Net capital expenditure(1) outlook $Billions Reduced ~8% 8.0 – 8.5 Revising 2024E net capital expenditure outlook 7.4 – 7.7 • Continuous improvement of capital efficiency
Slide 11: Third quarter comparable EBITDA up 6% year-over-year
T C E N E R G Y T2 H 0 2I R3 DI NQVUEASRTTOERR D2A0Y2 4 C O N F E R E N C E C A L L Third quarter comparable EBITDA(1) up 6% year-over-year Comparable EBITDA(1) Comparable Earnings(1) $Millions $Millions +6% 70 -38 -4 2,791 +4% 33 34 46 -8 64 -15 -144 2,632 159 -23 29 -2 -3 1,074 1,035 Q3 2023 Canad
Slide 12: Expect 2024 comparable EBITDA to be at the upper end of outlook
T C E N E R G Y T2 H 0 2I R3 DI NQVUEASRTTOERR D2A0Y2 4 C O N F E R E N C E C A L L Expect 2024 comparable EBITDA(1) to be at the upper end of outlook Comparable EBITDA(1) Progress against our financial targets $Billions 11.2 – 11.5 11.0 • Tracking to the upper end of 2024E comparable 9.9 EBITDA out
Slide 13: Dividend growth supported by operational excellence
T C E N E R G Y T2 H 0 2I R3 DI NQVUEASRTTOERR D2A0Y2 4 C O N F E R E N C E C A L L Dividend growth supported by operational excellence Comparable EBITDA(1) Maintaining dividend growth outlook: 3 – 5% 2000-2024E • Supported by growth in cash flow per share $Billions Israel- Hamas • Maintain competit
Slide 14: Delivering on 2024 priorities
T C E N E R G Y T2 H 0 2I R3 DI NQVUEASRTTOERR D2A0Y2 4 C O N F E R E N C E C A L L Delivering on 2024 priorities MAXIMIZING THE VALUE OF OUR PROJECT EXECUTION ENHANCING BALANCE SHEET ASSETS THROUGH SAFETY AND ON-TIME AND ON-BUDGET STRENGTH AND FLEXIBILITY OPERATIONAL EXCELLENCE Bruce Power, Ontario
Slide 15: Appendix
T C E N E R G Y T2 H 0 2I R3 DI NQVUEASRTTOERR D2A0Y2 4 C O N F E R E N C E C A L L Appendix
Slide 16: Appendix A – Non-GAAP reconciliations – Comparable EBITDA
Appendix A – Non-GAAP reconciliations – Comparable EBITDA(1) (Millions of dollars) Three months Nine months ended September 30 ended September 30 2024 2023 2024 2023 Total segmented earnings (losses) 2,619 644 6,891 3,809 Interest expense (878) (865) (2,558) (2,418) Allowance for funds used during c
Slide 17: Appendix B – Non-GAAP reconciliations – Net Income to comparable earnings
Appendix B – Non-GAAP reconciliations – Net Income (loss) to comparable earnings(1) Three months ended September 30 Nine months ended September 30 (Millions of dollars, except per share amounts) 2024 2023 2024 2023 Net income (loss) attributable to common shares 1,457 (197) 3,623 1,366 Specific item
Slide 18: Appendix C – Net cash provided by operations to comparable funds generated
Appendix C – Non-GAAP reconciliations – Net cash provided by operations to Comparable funds generated from operations(1) (Millions of dollars) Three months Nine months ended September 30 ended September 30 2024 2023 2024 2023 Net cash provided by operations 1,915 1,824 5,612 5,408 Increase (decrease
Slide 19: Appendix D – Adjusted Debt/Adjusted Comparable EBITDA
Appendix D – Non-GAAP reconciliations – Adjusted Debt/Adjusted Comparable EBITDA (Debt-to-EBITDA) Adjusted debt and adjusted comparable EBITDA are non-GAAP measures used to compute the debt-to-EBITDA multiple. Each of adjusted debt and adjusted comparable EBITDA measures does not have any standardiz
Slide 20: Appendix D – Adjusted Debt/Adjusted Comparable EBITDA
Appendix D – Non-GAAP reconciliations – Adjusted Debt/Adjusted Comparable EBITDA(1) (Debt-to-EBITDA) (Millions of dollars) Year ended December 31 2023 2022 Reported total debt 63,201 58,300 Management adjustments: Debt treatment of preferred shares(2) 1,250 1,250 Equity treatment of junior subordina
Slide 21: Appendix E – Non-GAAP reconciliations – Charts
Appendix E – Non-GAAP reconciliations – Charts Comparable EBITDA(1) outlook (Billions of dollars) TC Energy TC Energy (including Liquids Pipelines business) (excluding Liquids Pipelines business) 11.0 11.2 – 11.5 11.2 – 11.5 9.5 6.1 5.1 2023 2023 2024E 2023 2023 2026E Segmented Comparable Segmented