Tc Energy Corporation · TSX:TRP
Tc Energy — Q1 2025 Earnings Presentation
25 slides from Tc Energy's earnings presentation, May 1, 2025
Slide 1: First quarter 2025 conference call
TC ENERGY FIRST QUARTER 2025 CONFERENCE CALL First quarter 2025 conference call M AY 1 , 2 0 2 5
Slide 2: Call participants
TC ENERGY FIRST QUARTER 2025 CONFERENCE CALL François Poirier President and Chief Executive Officer Sean O’Donnell Executive Vice-President and Chief Financial Officer CALL PARTICIPANTS Tina Faraca Executive Vice-President and Chief Operating Officer, Natural Gas Pipelines Greg Grant Executive Vice-
Slide 3: Forward-looking information and non-GAAP/supplementary financial measures
T C E N E R G Y F2 I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 5 C O N F E R E N C E C A L L Forward-looking information and non-GAAP/supplementary financial measures This presentation includes certain forward-looking information, including future oriented financial information or financial outlook, whi
Slide 4: François Poirier
TC ENERGY FIRST QUARTER 2025 CONFERENCE CALL FRANÇOIS POIRIER President and Chief Executive Officer
Slide 5: Delivering on 2025 priorities
T C E N E R G Y F2 I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 5 C O N F E R E N C E C A L L Delivering on 2025 priorities MAXIMIZING THE VALUE OF OUR EXECUTE OUR SELECTIVE ENSURE FINANCIAL ASSETS THROUGH SAFETY AND PORTFOLIO OF GROWTH STRENGTH AND AGILITY OPERATIONAL EXCELLENCE PROJECTS • Safety incide
Slide 6: Southeast Gateway: ready to deliver natural gas to fuel Mexico's economic growth
T C E N E R G Y F2 I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 5 C O N F E R E N C E C A L L MAJOR PROJECT EXECUTION Southeast Gateway: ready to deliver natural gas to fuel Mexico’s economic growth • Southeast Gateway pipeline ready for service, less than 3 years ~8.5 GW(1) from FID and 13% under budget
Slide 7: Northwoods Project
T C E N E R G Y F2 I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 5 C O N F E R E N C E C A L L MAJOR PROJECT ANNOUNCEMENT Northwoods Project Project highlights Well positioned for future opportunities on the ANR system(2) Planned data centre • Project on the ANR system • Serving power generation to suppor
Slide 8: Long-lived value creation through Bruce Power MCR and Project 2030
T C E N E R G Y F2 I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 5 C O N F E R E N C E C A L L Long-lived value creation through Bruce Power MCR and Project 2030 Bruce Power capacity forecast MCR program highlights MW 7,200 Targeting Sanctioned Unit 5 MCR >7,000 MW • $1.1 billion of emission-less nuclear
Slide 9: Disciplined and strategic sanctioned capital spending
T C E N E R G Y F2 I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 5 C O N F E R E N C E C A L L Disciplined and strategic sanctioned capital spending Net capital expenditures(1) $Billions Targeted $6 – $7 billion annual net capital expenditure range Continue to fill our capital program with high-value proj
Slide 10: Sean O'Donnell
TC ENERGY FIRST QUARTER 2025 CONFERENCE CALL SEAN O’DONNELL Executive Vice-President and Chief Financial Officer
Slide 11: High utilization underpins resilient and repeatable performance
T C E N E R G Y F2 I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 5 C O N F E R E N C E C A L L Q1 HIGHLIGHTS High utilization underpins resilient and repeatable performance CANADIAN NATURAL GAS PIPELINES Comparable EBITDA from continuing operations • Total system deliveries averaged 27.6 Bcf/d, up 8% vs.
Slide 12: Funding our capital program 2025E – 2027E
T C E N E R G Y F2 I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 5 C O N F E R E N C E C A L L Funding our capital program 2025E – 2027E $Billions Net long-term debt, hybrids, commercial paper & other: 7.3 • Low-risk business model Capital expenditures: provides stability of cash flows 18.6 • Sufficient i
Slide 13: Comparable EBITDA outlook demonstrates solid, repeatable growth
T C E N E R G Y F2 I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 5 C O N F E R E N C E C A L L Comparable EBITDA(1) outlook demonstrates solid, repeatable growth Comparable EBITDA Incremental comparable EBITDA $1.45 from continuing operations by USD/CAD rate: Tailwinds & headwinds to comparable EBITDA out
Slide 14: 2025 Strategic priorities
T C E N E R G Y F2 I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 5 C O N F E R E N C E C A L L 2025 Strategic priorities MAXIMIZING THE VALUE OF OUR EXECUTE OUR SELECTIVE ENSURE FINANCIAL ASSETS THROUGH SAFETY AND PORTFOLIO OF GROWTH STRENGTH AND AGILITY OPERATIONAL EXCELLENCE PROJECTS • Promote safe oper
Slide 15: Appendix
T C E N E R G Y F2 I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 5 C O N F E R E N C E C A L L Appendix Appendix A: Year-over-year comparable earnings waterfall Non-GAAP reconciliations Appendix B: Comparable EBITDA Appendix C: Net Income (loss) to comparable earnings Appendix D: Net cash provided by oper
Slide 16: Appendix A – Year-over-year comparable earnings waterfall
Appendix A – Year-over-year comparable earnings waterfall Comparable earnings(1) from continuing operations $Millions -7% 39 -43 91 -53 1,055 -60 -24 -11 -6 -5 983 Q1 2024(2) Comparable Depreciation Interest AFUDC FX gains Interest income Income tax Net (income) Preferred share Q1 2025 EBITDA(1) fro
Slide 17: Appendix B – Non-GAAP reconciliations – Comparable EBITDA
Appendix B – Non-GAAP reconciliations – Comparable EBITDA(1) Three months (Millions of dollars) ended March 31 2025 2024(2) Total segmented earnings (losses) 1,966 1,947 Interest expense (840) (780) Allowance for funds used during construction 248 157 Foreign exchange gains (losses), net 43 27 Inter
Slide 18: Appendix C – Net Income (loss) to comparable earnings
Appendix C – Non-GAAP reconciliations – Net Income (loss) to comparable earnings(1) (Millions of dollars, except per share amounts) Three months ended March 31 2025 2024(2) Net income (loss) attributable to common shares from continuing operations 978 988 Specific items (pre tax): Foreign exchange (
Slide 19: Appendix D – Net cash provided by operations to Comparable funds generated from operations
Appendix D – Non-GAAP reconciliations – Net cash provided by operations to Comparable funds generated from operations(1,2,3) (Millions of dollars) Three months ended March 31 2025 2024 Net cash provided by operations 1,359 2,042 Increase (decrease) in operating working capital 590 344 Funds generate
Slide 20: Appendix E – Adjusted Debt/Adjusted Comparable EBITDA (Debt-to-EBITDA)
Appendix E – 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 21: Appendix E – Adjusted Debt/Adjusted Comparable EBITDA (Debt-to-EBITDA)
Appendix E – Non-GAAP reconciliations – Adjusted Debt/Adjusted Comparable EBITDA(1) (Debt-to-EBITDA) (Millions of dollars) Year ended December 31 2024 2023 2022 Reported total debt 59,366 63,201 58,300 Management adjustments: Debt treatment of preferred shares(2) 1,250 1,250 1,250 Equity treatment o
Slide 22: Appendix F – Segmented earnings and Comparable EBITDA
Appendix F – Non-GAAP reconciliations – Segmented earnings and Comparable EBITDA Comparable EBITDA(1) outlook from continuing operations (Billions of dollars) 11.7 — 11.9 10.7 – 10.9 10.0 8.0 2024 2024 2025E 2027E Segmented Comparable EBITDA (1) earnings (1) Comparable EBITDA is a non-GAAP measure.
Slide 23: Appendix G – Unlevered after-tax internal rate of return
Appendix G – Non-GAAP measures – Unlevered after-tax internal rate of return Unlevered after-tax internal rate of return represents the expected compound annual return of a project or investment, and prior to any assumption of debt and/or equity financing. Unlevered after-tax internal rate of return
Slide 24: Appendix H – Comparable funds generated from operations (FGFO)
Appendix H – Non-GAAP reconciliations – Comparable funds generated from operations (FGFO) Comparable FGFO or “comparable funds generated from operations” is a non-GAAP measure which does not have any standardized meaning under U.S. GAAP and is therefore unlikely to be comparable to similar measures
Slide 25: Appendix H – Comparable funds generated from operations (FGFO)
Appendix H – Non-GAAP reconciliations – Comparable funds generated from operations (FGFO) Year ended December 31 (Millions of dollars) 2024 2023 Net cash provided by operations 7,696 7,268 Increase (decrease) in operating working capital (199) (207) Funds generated from operations 7,497 7,061 Specif