Tc Energy Corporation · TSX:TRP
Tc Energy — Q4 2022 Earnings Presentation
22 slides from Tc Energy's earnings presentation, Feb 14, 2023
Slide 1: Fourth quarter 2022 conference call
Fourth quarter 2022 conference call F E B R UAR Y 1 4 , 2 0 2 3
Slide 2: Call participants
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 Group Executive, U.S. and Mexico Natural Gas Pipelines Corey Hessen - Executive Vice-President and Pres
Slide 3: Forward-looking information and non-GAAP measures
Forward-looking information and non-GAAP measures Thi s presentation includes certain forward-looking information, including butnot limited to, our financial and operational performance, including the performance of our subsidiaries, expectations about s trategies and goals for growth a nd expansion
Slide 4: François Poirier
François Poirier President and Chief Executive Officer
Slide 5: Delivering on 2022 Investor Day priorities
Q4 2022 RESULTS Delivering on 2022 Investor Day priorities Showcase sustainable Demonstrate the Provide a clearly defined growth in cash flows resiliency of our portfolio funding plan • Achieved record comparable • All-time record flows on U.S and Canadian • Advancing $5+ billion asset divestiture E
Slide 6: Serving a highly strategic corridor
LIQUIDS PIPELINES Serving a highly strategic corridor Milepost 14 incident Keystone Pipeline returned to service and is delivering contracted volumes Recovered 90% of release volume and committed to a full remediation and investigation Cash flow not expected to be materially impacted Demonstrating r
Slide 7: Delivering growth and record flows
U . S . N AT U R AL G A S P I P ELI NES Delivering growth and record flows Record system flows Up ~5% vs. 2021 +30% 3.6 Bcf/d Bcf/d, average 6 th consecutive year of record comparable Increase in average Peak USNG LNG EBITDA(1) quarter-over-quarter 28 flows Q4 2022 27.2 LNG flows US$2.1 billion capi
Slide 8: Solidifying past and future growth
M E X IC O N AT U R AL G A S P I P E LINES Solidifying past and future growth Southeast Gateway Pipeline Executed main land acquisition agreements required for 1 land falls and compressor stations in Veracruz and Tabasco Villa de Reyes (VdR) and Tula Pipelines 2 Placed the north section of VdR and e
Slide 9: Growing the reach of the WCSB
C A N A D IAN N AT U R AL G A S P I P ELI NES Growing the reach of the WCSB Coastal GasLink NGTL System deliveries Average NGTL System deliveries up ~6% Bcf/d continue to grow • Total cost expected to be 14 to 13.4 Bcf/d vs. 2021 $14.5 billion 12 Sanctioned VNBR project utilizing • Project is approx
Slide 10: Continuing to meet high power demand
POWER AND ENERGY SOLUTIONS Continuing to meet high power demand 2022 Alberta pool price all hours average Alberta Power pool prices averaged $/MWh $214/MWh during Q4 2022 350 $312 2022 Comparable 300 MCR Unit 6: remains on-time and on-budget EBITDA(1) 250 MCR Unit 3: scheduled to start Q1 2023 incre
Slide 11: Joel Hunter
Joel Hunter Executive Vice-President and Chief Financial Officer
Slide 12: Fourth quarter comparable EBITDA up 12 per cent year-over-year
EARNINGS G ROWTH B REAKDOWN Fourth quarter comparable EBITDA(1) up 12 per cent year-over-year $Millions Comparable EBITDA $Millions Comparable Earnings(1) 12% 1,400 2,700 6 2,683 -16 35 10% 60 1,300 -36 2,600 109 -111 2,500 1,200 43 288 -84 94 -6 -2 10 1,129 2,395 -1 2,400 1,100 2,300 1,028 1,000 2,
Slide 13: 2023E Comparable EBITDA outlook & sensitivities
S U STAI NABLE G RO W TH E X P E C TE D TO C O N T INUE I N 2 0 23 2023E Comparable EBITDA(1) outlook & sensitivities Comparable EBITDA $Billions Comparable EBITDA expected to Interest rate: Δ +/- 25 bps be ~5-7% higher • Financial charges: $20MM 6% • Comparable EPS: ~$0.02/share 9.9 9.4 Foreign exc
Slide 14: 2023 Comparable EBITDA outlook
OUTLOOK BY SEGMENT 2023 Comparable EBITDA(1) outlook • Higher driven by continued growth in the NGTL System Canadian Natural • 2022 capital spend(2): $3.3 billion Gas Pipelines • 2023 expected capital spend: $5.8 billion • Consistent with 2022 due to completion of expansion projects, offset by highe
Slide 15: Fully sanctioned 6% comparable EBITDA CAGR
2 0 2 2 – 2 0 2 6 E C O M P A R A B L E E B I T D A (1) O U T L O O K Fully sanctioned 6% comparable EBITDA CAGR $Billions CAGR 12.5 6% Reflects current portfolio of high-quality, 6% secured projects expected to enter service 9.9 by 2026 excluding impact of potential 9.4 asset divestitures ~95% from
Slide 16: Funding our capital program
2023 – 2026E OUTLOOK Funding our capital program $Billions 50 40 Net long- term debt and hybrids Commercial paper DRP proceeds 11 and other Capital 1 2 expenditures 30 30 20 Funds generated from operations( 1) 32 10 Dividends 16 0 Uses Sources (1) Funds generated from operations and comparable EBITD
Slide 17: Executing on growth through multiple economic cycles
OUR VALUE PROPOSITION Executing on growth through multiple economic cycles Maintaining dividend growth $Billions Comparable EBITDA(1) 23 consecutive years of common share dividend increases 2000-2023E Russia- with 3-5% expected future growth per annum 12 Ukraine war COVID-19 $3.72* & OPEC 10 MLP dis
Slide 18: Our 2023 strategic priorities
Our 2023 strategic priorities Enhance balance sheet Focus on Increase returns on our Progress ESG priorities and strength and flexibility project execution and assets through revenue capitalize on decarbonization operational excellence enhancements and cost opportunities reductions Accelerate our Ad
Slide 19: Appendix
Fourth quarter 2022 conference call Appendix F EB RUARY 1 4, 2 0 23 19
Slide 20: Appendix – Non-GAAP reconciliations
Q4 2022 FINANCIALS Appendix – Non-GAAP reconciliations (millions of dollars, except per share amounts) Three months Year ended ended December 31 D ecember 31 2022 2021 2022 2021 Net (loss)/income attributable to common shares (1,447) 1,118 641 1,815 Specific items (net of tax): C oastal GasLink LP i
Slide 21: Appendix – Non-GAAP reconciliations
Q4 2022 FINANCIALS Appendix – Non-GAAP reconciliations Millions of dollars Three months Year ended ended December 31 December 31 2022 2021 2022 2021 Comparable EBITDA(1) 2,683 2,395 9,901 9,368 Depreciation and amortization (670) (634) (2,584) (2,522) Interest expense included in comparable earnings
Slide 22: Appendix – Non-GAAP reconciliations
Q4 2022 FINANCIALS Appendix – Non-GAAP reconciliations Millions of dollars Three months Year ended ended December 31 December 31 2022 2021 2022 2021 Net cash provided by operations 2,025 1,801 6,375 6,890 Increase in operating working capital 128 255 639 287 Funds generated from operations(1) 2,153