Tc Energy Corporation · TSX:TRP
Tc Energy — Q4 2021 Earnings Presentation
25 slides from Tc Energy's earnings presentation, Feb 15, 2022
Slide 1: Fourth quarter 2021 conference call
Fourth quarter 2021 conference call February 15, 2022 1
Slide 2: Forward-looking information and non-GAAP measures
Forward-looking information and non-GAAP measures This presentation includes certain forward-looking information, including, but not limited to, statements related to future dividend and earnings growth, future EBITDA growth, the future growth of our core businesses, the sustainability commitments a
Slide 3: François Poirier, President and Chief Executive Officer
François Poirier President and Chief Executive Officer FEBRUARY 15, 2022
Slide 4: 2021 Accomplishments
2021 Accomplishments Produced strong operating and financial results, while prudently funding our capital program Placed $4.1 billion of projects into service, sanctioned ~$7 billion of new projects Progressed numerous energy transition growth initiatives in renewables, hydrogen and CCUS Strengthene
Slide 5: Strong operating performance
Strong operating performance Highlights Canadian Natural Gas Pipelines NGTL 2021 average export flows reached decade level highs • Set an all-time high on intra-basin delivery of 8.1 Bcf/d on January 5, 2022 U.S. Natural Gas Pipelines Increased flows across majority of U.S. assets • Set all-time sen
Slide 6: Financial highlights – year ended December 31
Financial highlights(1) – year ended December 31 Comparable earnings Comparable EBITDA(2) Comparable funds generated from operations(2) per common share(2) (dollars) (millions of dollars) (millions of dollars) Performance underpinned by strong demand for our services and constant focus on operationa
Slide 7: Advancing $24 billion secured capital program
Advancing $24 billion secured capital program Includes ~$7 billion of new projects sanctioned in 2021 $Billions Canadian regulated U.S. $18.2 billion of Natural Gas Pipelines projects Canadian maintenance $2.1 regulated maintenance Mainline • Reinforced by cost-of-service regulation and/or $0.2 2022
Slide 8: Substantial suite of opportunities to extend our growth horizon
Substantial suite of opportunities to extend our growth horizon $Billions Electrification of our pipeline network Using renewables to power a portion of our pipeline network Incremental investments Other in-corridor growth Capital-light investments and enhanced returns on existing assets and future
Slide 9: Comparable EBITDA Outlook
We are confident in our ability to grow $Billions Additional growth opportunities and enhancements Comparable EBITDA(1) Outlook 5% CAGR We have a sustainable competitive advantage (1) Comparable EBITDA is a non-GAAP measure. See the forward-looking information and non-GAAP measures slide at the fron
Slide 10: Common share dividend increased 3.4 per cent
Common share dividend increased 3.4 per cent $3.60(1) Declared a first quarter 2022 dividend of $0.90 per share Equivalent to $3.60 per share annually Twenty-two consecutive years of common share dividend increases with 3-5% expected future growth per annum (1) Annualized based on first quarter divi
Slide 11: 2022 Priorities
2022 Priorities Safely deliver the energy people need, every day Increase return on capital invested in existing assets Place ~$6.5 billion of assets in service Sanction $5+ billion of high-quality growth opportunities Maintain financial strength and flexibility Progress sustainability targets, incl
Slide 12: Joel Hunter, Executive Vice-President and Chief Financial Officer
Joel Hunter Executive Vice-President and Chief Financial Officer FEBRUARY 15, 2022
Slide 13: Consolidated results of operations
Consolidated results of operations Three months Year ended (millions of dollars, except per share amounts) ended December 31 December 31 2021 2020 2021 2020 Net income attributable to common shares 1,118 1,124 1,815 4,457 Specific items (net of tax): Keystone XL asset impairment charge and other (60
Slide 14: Business segment results
Business segment results(1) (millions of dollars) Three months Year ended ended December 31 December 31 2021 2020 2021 2020 Comparable EBITDA(2) Canadian Natural Gas Pipelines 674 682 2,675 2,566 U.S. Natural Gas Pipelines 1,032 919 3,856 3,638 Mexico Natural Gas Pipelines 151 166 666 786 Liquids Pi
Slide 15: Other income statement items
Other income statement items(1) Three months Year ended (millions of dollars) ended December 31 December 31 2021 2020 2021 2020 Comparable EBITDA(2) 2,404 2,323 9,382 9,351 Depreciation and amortization (634) (652) (2,522) (2,590) Comparable EBIT(2) 1,770 1,671 6,860 6,761 Interest expense included
Slide 16: Funding program outlook 2022-2024E
Funding program outlook 2022-2024E $Billions Comparable funds generated from operations(1) expected to remain robust • $2.1 billion in the fourth quarter, $7.4 billion in 2021 • Reflects the resiliency and criticality of our energy infrastructure portfolio Financial strength and flexibility underpin
Slide 17: 2022 Outlook
2022 Outlook Comparable EBITDA(1) Canadian Natural Higher driven by continued NGTL System expansion and recovery of flow-through items, partially offset by the reduction Gas Pipelines of flow-through depreciation in the Canadian Mainline U.S. Natural Gas Consistent with 2021 due to an expected incre
Slide 18: Comparable EBITDA outlook 2021-2026E
Comparable EBITDA(1) outlook 2021-2026E $Billions Additional growth opportunities and enhancements Reflects current portfolio of high-quality, long-life assets and secured projects expected to enter service by 2026 5% CAGR ~95% from regulated and long-term contracted assets Additional growth expecte
Slide 19: Delivering long-term shareholder value
Delivering long-term shareholder value Track record Visible growth 13% average annual total shareholder $24 billion secured capital program through 2027 return since 2000 Vast opportunity set emanating from irreplaceable footprint and organizational capabilities Attractive dividend Solid financial p
Slide 20: Question & answer period
Question & answer period
Slide 21: Fourth quarter 2021 conference call
Fourth quarter 2021 conference call February 15, 2022 21
Slide 22: Appendix A – Financial highlights comparable GAAP measures
Appendix A – Financial highlights comparable GAAP measures Year ended December 31, 2021 Net Income per Common Share Segmented Earnings Net Cash Provided by Operations (dollars) (millions of dollars) (millions of dollars)
Slide 23: Appendix B – Business segment results comparable GAAP measure
Appendix B – Business segment results comparable GAAP measure (millions of dollars) Three months Year ended ended December 31 December 31 2021 2020 2021 2020 Segmented Earnings Canadian Natural Gas Pipelines 389 350 1,449 1,657 U.S. Natural Gas Pipelines 818 730 3,071 2,837 Mexico Natural Gas Pipeli
Slide 24: Appendix C – Comparable EBITDA and comparable earnings GAAP measure
Appendix C – Comparable EBITDA and comparable earnings comparable GAAP measure (millions of dollars) Three months Year ended ended December 31 December 31 2021 2020 2021 2020 Comparable EBITDA(1) 2,404 2,323 9,382 9,351 Depreciation and amortization (634) (652) (2,522) (2,590) Interest expense inclu
Slide 25: Appendix D – Funds generated from operations GAAP measure
Appendix D – Funds generated from operations and comparable funds generated from operations comparable GAAP measure (millions of dollars) Three months Year ended ended December 31 December 31 2021 2020 2021 2020 Net Cash Provided by Operations 1,801 1,939 6,890 7,058 Increase in operating working ca