Tc Energy Corporation · TSX:TRP
Tc Energy — TransCanada — IPO Roadshow (November 2016)
18 slides from Tc Energy's IPO roadshow presentation, Nov 1, 2016
Slide 1: Prospectus and Additional Information
Prospectus and Additional Information An amended and restated preliminary short form prospectus containing important information relating to the securities described in this presentation has not yet been filed with the securities regulatory authorities in each of the provinces and territories of Can
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: Presenters
Presenters Russ Girling, President and Chief Executive Officer Don Marchand, EVP, Corporate Development and CFO 4
Slide 4: Strategic Plan Update Highlights
Strategic Plan Update Highlights Third Quarter Results Reflect Strong Operating Performance Net loss attributable to common shares of $135 million or $0.17 per share includes $656 million after-tax goodwill impairment charge related to the U.S. Northeast Power business Comparable earnings of $622 mi
Slide 5: Financial Highlights – Three Months ended September 30
Comparable Distributable Cash Flow* ($Millions) Financial Highlights – Three Months ended September 30 (Non-GAAP) 0.62 0.78 1,148 1,411 953 1,025 Comparable Earnings per Share* (Dollars) Comparable Funds Generated from Operations* ($Millions) 6 *Comparable Earnings per Share, Comparable Funds Genera
Slide 6: Monetization of U.S. Northeast Power Business
Monetization of U.S. Northeast Power Business Expect to realize ~US$3.7 billion for business Entered agreements to sell Ravenswood, Ironwood, Ocean State Power and Kibby Wind to Helix Generation, LLC, an affiliate of LS Power Equity Advisors for US$2.2 billion and TC Hydro to Great River Hydro, LLC,
Slide 7: Mexico Natural Gas Pipeline Business
Mexico Natural Gas Pipeline Business Guadalajara and Tamazunchale in-service US$3.8 billion being invested in five new pipelines which are expected to enter service by the end of 2018 Underpinned by 25-year, U.S. dollar contracts with Comisión Federal de Electricidad (CFE) US$1.4 billion Topolobampo
Slide 8: Master Limited Partnership Strategic Review
Master Limited Partnership Strategic Review Entered into agreement to acquire the outstanding common units of Columbia Pipeline Partners LP (CPPL) for cash at a price of US$17.00 per common unit US$915 million acquisition subject to unitholder approval Expect acquisition to close in first quarter 20
Slide 9: Columbia Pipeline Integration
Columbia Pipeline Integration Transformational acquisition created one of North America’s largest regulated natural gas transmission businesses and provides a new platform for growth CPPL acquisition increases ownership in principal Columbia assets to 100 per cent Significant progress made in integr
Slide 10: $25 Billion Visible Near-Term Capital Program
$25 Billion Visible Near-Term Capital Program Illustrates the configuration of TransCanada’s near-term projects Project Estimated Capital Cost* Expected In-Service Date* Topolobampo US1.0 2017 Mazatlan US0.4 2016 Canadian Mainline 0.7 2016-2017 NGTL System 5.4 2016-2020 Tula US0.5 2017 Columbia US7.
Slide 11: Issuing ~$3.2 Billion of Common Shares Under Bought Deal
Issuing ~$3.2 Billion of Common Shares Under Bought Deal Proceeds to be used to repay a portion of the Columbia bridge loan facilities following decision to maintain full ownership interest in Mexico Over-allotment option for up to 10 per cent Numerous Other Levers Available to Fund Growth $2.3 bill
Slide 12: Dividend Growth Outlook Through 2020
Dividend Growth Outlook Through 2020 10% CAGR 7% CAGR Supported by Expected Growth in Earnings and Cash Flow 13 0.80 2.26 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17E '18E '19E '20E
Slide 13: Key Takeaways
Key Takeaways Monetization of U.S. Northeast Power business increases stability and predictability of EBITDA Maintaining current interest in Mexican natural gas pipelines business maximizes value and maintains simple corporate structure Acquisition of CPPL common units increases ownership in princip
Slide 14: Strong Financial Position
Strong Financial Position ‘A’ grade credit rating Numerous levers available to fund future growth Track Record of Delivering Long-Term Shareholder Value 15% average annual return since 2000 Visible Growth Portfolio $25.4 billion to 2020 Additional opportunity set includes over $45 billion of medium
Slide 15: Strategic Plan Update
Strategic Plan Update Actions Strengthen Financial Position and Enhance Future Dividend Growth November 1, 2016
Slide 16: Appendix – Reconciliation of Non-GAAP Measures
Appendix – Reconciliation of Non-GAAP Measures 17 *Comparable Earnings and Comparable Earnings per Share are non-GAAP measures. See the non-GAAP measures slide at the front of this presentation for more information. 2016 2015 Net (Loss)/Income Attributable to Common Shares (135) 402 Specific items (
Slide 17: Appendix – Reconciliation of Non-GAAP Measures continued
Appendix – Reconciliation of Non-GAAP Measures continued 18 *Funds Generated from Operations, Comparable Funds Generated from Operations and Comparable Distributable Cash Flow are non-GAAP measures. See the non-GAAP measures slide at the front of this presentation for more information. 2016 2015 Net
Slide 18: Appendix — Reconciliation of Non-GAAP Measures continued
Appendix — Reconciliation of Non-GAAP Measures continued ‘Three months ended September 30 2016 2015 Net Cash Provided by Operations Increase/(decrease) in operating working capital Funds Generated from Operations* Specific items: Acquisition related costs - Columbia 99 - Keystone XL asset costs 14 -