Tc Energy Corporation · TSX:TRP
Tc Energy — Q1 2020 Earnings Presentation
22 slides from Tc Energy's earnings presentation, May 1, 2020
Slide 1: First Quarter 2020 conference call
First Quarter 2020 conference call May 1, 2020
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: Russ Girling, President & CEO
Russ Girling President & CEO 3
Slide 4: First Quarter 2020 accomplishments
First Quarter 2020 accomplishments Continued to reliably deliver essential energy services across North America during this unprecedented time • Business continuity plans implemented with a focus on the health and safety of our employees, contractors and the communities where we work in light of the
Slide 5: Financial highlights – Three months ended March 31 (Non-GAAP)
Financial highlights – Three months ended March 31 (Non‐GAAP) Comparable Comparable Comparable funds earnings per common share* EBITDA* generated from operations* (Dollars) ($Millions) ($Millions) 10% increase 6% increase 17% increase *Comparable earnings per common share, comparable EBITDA and comp
Slide 6: Natural Gas Pipelines recent developments
Natural Gas Pipelines recent developments Canadian, U.S. and Mexico Natural Gas Pipelines continue to produce strong financial results • Assets underpinned by regulated and/or long‐term contracted business models • Volumes transported comparable to the same period last year Capital program continues
Slide 7: Liquids Pipelines recent developments
Liquids Pipelines recent developments Liquids Pipelines produced solid financial results despite lower uncontracted volumes and lower Liquids Marketing margins • Keystone System largely underpinned by long‐term contracts Keystone XL Pipeline Project • Announced decision to build pipeline on March 31
Slide 8: Power and Storage recent developments
Power and Storage recent developments Power and Storage generated solid financial results • Largely due to higher realized power prices and generation volumes at Bruce Power Bruce Power – Life Extension Program • Declared force majeure as a result of the COVID‐19 pandemic • Covers the Unit 6 Major C
Slide 9: Advancing $43 billion secured capital program through 2023
Advancing $43 billion secured capital program through 2023 ~$6 billion of projects expected to be completed in 2020 * Billions of dollars. Certain projects are subject to various conditions including corporate and regulatory approvals ** Represents 100 per cent of Coastal GasLink required capital **
Slide 10: Dividend growth outlook
Dividend growth outlook 5‐7% Expected organic growth per year 8‐10% 2021+ CAGR 3.24* • $43 billion secured growth program • Further “in‐corridor” expansions 7% CAGR • $10+ billion development portfolio 2.08 • Alberta liquids • Further Bruce refurbishments • Growth rate will depend on project mix, ca
Slide 11: Key takeaways
Key takeaways Proven strategy – low risk business model • ~95% of comparable EBITDA from regulated assets and/or long‐term contracts Visible growth • Advancing $43 billion of secured growth projects • $10+ billion of projects under development • Additional organic growth expected from our five opera
Slide 12: Don Marchand, Executive VP, Strategy & Corporate Development and CFO
Don Marchand Executive VP, Strategy & Corporate Development and CFO 12
Slide 13: Consolidated results of operations
Consolidated results of operations (millions of dollars, except per share amounts) Three months ended March 31 2020 2019 Net Income Attributable to Common Shares 1,148 1,004 Specific items (net of tax): Income tax valuation allowance release (281) ‐ Loss on Ontario natural gas‐fired power plants hel
Slide 14: Business segment results
Business segment results(1) (millions of dollars) Three months ended March 31 2020 2019 Comparable EBITDA(2) Canadian Natural Gas Pipelines 597 556 U.S. Natural Gas Pipelines 1,032 972 Mexico Natural Gas Pipelines 269 146 Liquids Pipelines 445 563 Power and Storage 194 151 Corporate (2) (5) Total 2,
Slide 15: Other income statement items
Other income statement items(1) (millions of dollars) Three months ended March 31 2020 2019 Comparable EBITDA(2) 2,535 2,383 Depreciation and amortization (630) (608) Comparable EBIT(2) 1,905 1,775 Interest expense (578) (586) Allowance for funds used during construction 82 139 Interest income and o
Slide 16: Funding program continued to advance
Funding program continued to advance Strong, predictable and growing cash flow from operations • Comparable funds generated from operations of $2.1 billion in the first quarter, 17 per cent higher than last year Accessed capital markets on compelling terms in April • $2.0 billion of 7‐year medium te
Slide 17: 2020 Funding program
2020 Funding program $Billions $7+ billion of expected funds generated from operations • ~95% of comparable EBITDA from regulated assets and/or long‐term contracts ~$10 billion raised or pending through an array of attractive funding levers • $2.0 and US$1.25 billion of medium term notes and senior
Slide 18: Delivering long-term shareholder value
Delivering long‐term shareholder value Track Visible Attractive, growing Strong record growth dividend financial position 13% average annual $43 billion secured Dividend raised 8% in Numerous levers total shareholder through 2023 February 2020 available to fund return since 2000 5.1% yield future gr
Slide 19: Question & answer period
Question & answer period (@) TC Energy 19
Slide 20: First Quarter 2020 conference call
First Quarter 2020 conference call May 1, 2020
Slide 21: Appendix – Reconciliation of non-GAAP measures
Appendix – Reconciliation of non‐GAAP measures (millions of dollars) Three months ended March 31 2020 2019 Comparable EBITDA(1) 2,535 2,383 Depreciation and amortization (630) (608) Interest expense (578) (586) Allowance for funds used during construction 82 139 Interest income and other included in
Slide 22: Appendix – Reconciliation of non-GAAP measures continued
Appendix – Reconciliation of non‐GAAP measures continued (millions of dollars) Three months ended March 31 2020 2019 Net Cash Provided By Operations 1,723 1,949 Increase/(Decrease) in operating working capital 371 (142) Funds Generated From Operations(1) 2,094 1,807 Specific items: U.S. Northeast po