Tc Energy Corporation · TSX:TRP
Tc Energy — Q3 2020 Earnings Presentation
24 slides from Tc Energy's earnings presentation, Oct 29, 2020
Slide 1: Third Quarter 2020 conference call
Third Quarter 2020 conference call October 29, 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: Russ Girling, President & CEO
Russ Girling President & CEO 3
Slide 4: Third Quarter 2020 accomplishments
Third Quarter 2020 accomplishments Continued to reliably deliver essential energy services across North America during this unprecedented time • Despite the challenges brought about by COVID-19, our assets have been largely unimpacted • With few exceptions, flows and utilization levels remain in lin
Slide 5: 2020 Sustainability Report and ESG Data Sheet
2020 Sustainability Report and ESG Data Sheet • On October 20, 2020, two reports were released that demonstrate TC Energy’s ongoing focus on sustainability and transparent performance reporting: 1. Report on Sustainability: • Ten new long-term sustainability commitments supporting the UN Sustainable
Slide 6: Financial highlights – Three months ended September 30 (Non-GAAP)
Financial highlights – Three months ended September 30 (Non-GAAP) Comparable Comparable Comparable funds earnings per common share* EBITDA* generated from operations* (Dollars) ($Millions) ($Millions) *Comparable earnings per common share, comparable EBITDA and comparable funds generated from operat
Slide 7: Financial highlights – Nine months ended September 30 (Non-GAAP)
Financial highlights – Nine months ended September 30 (Non-GAAP) Comparable Comparable Comparable funds earnings per common share* EBITDA* generated from operations* (Dollars) ($Millions) ($Millions) *Comparable earnings per common share, comparable EBITDA and comparable funds generated from operati
Slide 8: Natural Gas Pipelines recent developments
Natural Gas Pipelines recent developments Natural Gas Pipelines continue to produce strong financial results • Underpinned by regulated and/or long-term contracted assets Capital program continues to progress. Currently includes: • $9.9 billion of NGTL System expansions • US$2.0 billion of U.S. Pipe
Slide 9: Liquids Pipelines recent developments
Liquids Pipelines recent developments Liquids Pipelines produced solid results despite lower uncontracted volumes on Keystone and reduced contributions from liquids marketing • Keystone System remains largely underpinned by long-term contracts Keystone XL Pipeline Project • Construction commenced in
Slide 10: Power and Storage recent developments
Power and Storage recent developments Bruce Power – Life Extension Program • Work on the Unit 6 MCR and Asset Management programs continue • Unit 6 MCR achieved a major milestone on October 1 with the beginning of the Fuel Channel and Feeder Replacement Program • Impact of force majeure will ultimat
Slide 11: Advancing $37 billion secured capital program through 2023
Advancing $37 billion secured capital program through 2023 Estimated Invested to Expected Project Capital Cost* Date* In-Service Date* NGTL System 3.3 3.3 2020 Modernization II US 1.1 US 1.1 2020 NGTL System 1.7 0.8 2021 Villa de Reyes US 0.9 US 0.8 2021 NGTL System 2.5 0.1 2022 Other Liquids Pipeli
Slide 12: Dividend growth outlook
Dividend growth outlook 5-7% Expected organic growth per year 8-10% 2021+ CAGR 3.24 • $37 billion secured growth program • Further “in-corridor” expansions 7% CAGR • $11 billion development portfolio 2.08 • Alberta liquids • Further Bruce refurbishments • Growth rate will depend on project mix, cade
Slide 13: Key takeaways
Key takeaways Proven strategy – low risk business model • ~95% of comparable EBITDA from regulated assets and/or long-term contracts Visible growth • $37 billion of secured growth projects advancing • $11 billion of projects under development • Additional organic growth expected from our five operat
Slide 14: Don Marchand, Executive VP, Strategy & Corporate Development and CFO
Don Marchand Executive VP, Strategy & Corporate Development and CFO 14
Slide 15: Consolidated results of operations
Consolidated results of operations (millions of dollars, except per share amounts) Three months ended September 30 Nine months ended September 30 2020 2019 2020 2019 Net Income Attributable to Common Shares 904 739 3,333 2,868 Specific items (net of tax): Gain on partial sale of Coastal GasLink 6 -
Slide 16: Business segment results
Business segment results(1) (millions of dollars) Three months ended September 30 Nine months ended September 30 2020 2019 2020 2019 Comparable EBITDA(2) Canadian Natural Gas Pipelines 666 572 1,884 1,656 U.S. Natural Gas Pipelines 863 796 2,719 2,625 Mexico Natural Gas Pipelines 170 153 620 440 Liq
Slide 17: Other income statement items
Other income statement items(1) (millions of dollars) Three months ended September 30 Nine months ended September 30 2020 2019 2020 2019 Comparable EBITDA(2) 2,294 2,344 7,028 7,051 Depreciation and amortization (673) (610) (1,938) (1,839) Comparable EBIT(2) 1,621 1,734 5,090 5,212 Interest expense
Slide 18: 2020 Funding program complete
2020 Funding program complete Resilient and predictable cash flow generated from operations • Comparable funds generated from operations of $1.7 billion in the third quarter and $5.3 billion year-to-date Accessed capital markets on compelling terms in April 2020 • Issued $2.0 billion of seven-year m
Slide 19: 2020 Funding program
2020 Funding program $Billions ~$7 billion of expected funds generated from operations • ~98% of comparable EBITDA from regulated assets and/or long-term contracts $10+ billion sourced through an array of attractive funding levers • $2.0 billion of Medium Term Notes and US$1.25 of Senior Unsecured N
Slide 20: Delivering long-term shareholder value
Delivering long-term shareholder value Track Visible Attractive, growing Strong record growth dividend financial position 12% average $37 billion secured 5.9% yield Numerous levers annual total through 2023 8-10% growth available to fund shareholder return expected in 2021 and future growth Advancin
Slide 21: Question & answer period
Question & answer period e) TC Energy 21
Slide 22: Third Quarter 2020 conference call
Third Quarter 2020 conference call October 29, 2020
Slide 23: 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 24: 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