Tc Energy Corporation · TSX:TRP
Tc Energy — Q1 2024 Earnings Presentation
23 slides from Tc Energy's earnings presentation, May 3, 2024
Slide 1: First quarter 2024 conference call
T C E N E R G Y 2F 0I R2 S3T I Q NUV EA SRTTOE RR D2 A 0 Y2 4 C O N F E R E N C E C A L L First quarter 2024 conference call May 3, 2024
Slide 2: Call participants
TC ENERGY 2 F I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 4 C O N F E R E N C E C A L L Call participants François Poirier – President and Chief Executive Officer Joel Hunter – Executive Vice-President and Chief Financial Officer Stanley G. Chapman, III – Executive Vice-President and Chief Operating Off
Slide 3: Forward-looking information and non-GAAP measures
TC ENERGY 2 F I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 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
TC ENERGY 2 F I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 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
TC ENERGY 2 F I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 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 • Set all-time deliv
Slide 6: Continued progress on Southeast Gateway construction
TC ENERGY 2 F I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 4 C O N F E R E N C E C A L L MAJOR PROJECT EXECUTION Continued progress on Southeast Gateway construction SOUTHEAST GATEWAY PIPELINE Continue to track planned schedule and expected cost of US$4.5 billion • Total offshore pipe installation over 7
Slide 7: Operational excellence and high utilization across North America
T C E N E R G Y F2 I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 4 C O N F E R E N C E C A L L Q1 HIGHLIGHTS Operational excellence and high utilization across North America CANADIAN NATURAL GAS PIPELINES U.S. NATURAL GAS PIPELINES MEXICO NATURAL GAS PIPELINES • Net income(1) up 2% vs. Q1 2023 • Comparabl
Slide 8: Availability and reliability driving strong results
TC ENERGY 2 F I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 4 C O N F E R E N C E C A L L Q1 HIGHLIGHTS Availability and reliability driving strong results POWER & ENERGY SOLUTIONS • Comparable EBITDA(1) increased 14% vs. Q1 2023 • Cogeneration power plant fleet achieved ~98.7% availability Average cogene
Slide 9: Strong performance while progressing proposed South Bow spinoff
TC ENERGY 2 F I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 4 C O N F E R E N C E C A L L Q1 HIGHLIGHTS Strong performance while progressing Blackrod Connection Project proposed South Bow spinoff White Spruce LIQUIDS PIPELINES Blackrod Connection • Comparable EBITDA(1) increased 28% vs. Q1 2023 Grand Rapi
Slide 10: Joel Hunter
TC ENERGY 2 F I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 4 C O N F E R E N C E C A L L Joel Hunter Executive Vice-President and Chief Financial Officer
Slide 11: First quarter comparable EBITDA up 11% year-over-year
TC ENERGY 2 F I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 4 C O N F E R E N C E C A L L First quarter comparable EBITDA(1) up 11% year-over-year Comparable EBITDA(1) Comparable Earnings(1) $Millions $Millions +11% +4% 315 -42 39 -1 3,090 -80 90 35 -53 26 10 42 -160 39 106 2,775 1,284 1,233 Q1 2023 Canad
Slide 12: 2024E financial outlook
TC ENERGY 2 F I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 4 C O N F E R E N C E C A L L REITERATING EXPECTED SUSTAINABLE GROWTH IN 2024 2024E financial outlook Comparable EBITDA(1) Asset divestiture program 2024 Comparable EBITDA $Billions expected to be higher than 2023 • Progressed towards $3 billion
Slide 13: Progressing South Bow spinoff
TC ENERGY 2 F I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 4 C O N F E R E N C E C A L L Progressing South Bow spinoff Expected dividend split: 1 1 New TC Energy Common Share TC Energy Dividends Common Share ~86% expected to 100% pre-arrangement(1) remain whole 0.2 following spinoff South Bow Common Shar
Slide 14: Continued growth through operational excellence
TC ENERGY 2 F I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 4 C O N F E R E N C E C A L L Continued growth through operational excellence Maintaining dividend growth outlook: 3–5% Comparable EBITDA(1) 2000-2024E • Supported by growth in earnings and cash flow per share • Maintain conservative payout ratio
Slide 15: CFO transition
TC ENERGY 2 F I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 4 C O N F E R E N C E C A L L CFO transition Joel Hunter Sean O’Donnell Executive Vice-President and Senior Vice-President, Capital Chief Financial Officer Markets and Corporate Planning Incoming Executive Vice-President and Chief Financial Offic
Slide 16: 2024 strategic priorities
TC ENERGY 2 F I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 4 C O N F E R E N C E C A L L 2024 strategic 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 • Safely, reliably and a
Slide 17: Appendix
TC ENERGY 2 F I0R2S3T I Q NUVA E SR TT O ER D 2 0A 2Y 4 C O N F E R E N C E C A L L Appendix
Slide 18: Appendix A – Non-GAAP reconciliations – Comparable EBITDA
Appendix A – Non-GAAP reconciliations – Comparable EBITDA(1) (Millions of dollars) Three months ended March 31 2024 2023 Total segmented earnings (losses) 2,266 2,170 Interest expense (837) (762) Allowance for funds used during construction 157 131 Foreign exchange gains (losses), net 27 107 Interes
Slide 19: Appendix B – Net income to comparable earnings
Appendix B – Non-GAAP reconciliations – Net Income (loss) to comparable earnings(1) (Millions of dollars, except per share amounts) Three months ended March 31 2024 2023 Net income (loss) attributable to common shares 1,203 1,313 Specific items (net of tax): Foreign exchange (gains) losses, net – in
Slide 20: Appendix C – Comparable funds generated from operations
Appendix C – Non-GAAP reconciliations – Net cash provided by operations to Comparable funds generated from operations(1) (Millions of dollars) Three months ended March 31 2024 2023 Net cash provided by operations 2,042 2,074 Increase (decrease) in operating working capital 344 (60) Funds generated f
Slide 21: 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 22: Appendix D – Adjusted Debt/Adjusted Comparable EBITDA continued
Appendix D – Non-GAAP reconciliations – Adjusted Debt/Adjusted Comparable EBITDA(1) (Debt-to-EBITDA) continued (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
Slide 23: Appendix E – Non-GAAP reconciliations – Charts
Appendix E – Non-GAAP reconciliations – Charts Comparable EBITDA(1) outlook $Billions TC Energy TC Energy South Bow (including Liquids Pipelines business) (excluding Liquids Pipelines business) Comparable Comparable Comparable EBITDA(1) EBITDA(1) EBITDA(1) Canadian Natural Gas Pipelines U.S. Natural