Tc Energy Corporation · TSX:TRP
Tc Energy — Q1 2021 Earnings Presentation
20 slides from Tc Energy's earnings presentation, May 7, 2021
Slide 1: First quarter 2021 conference call
First quarter 2021 conference call May 7, 2021
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: François Poirier, President and Chief Executive Officer
François Poirier President and Chief Executive Officer
Slide 4: Solid first quarter 2021 operating performance
Solid first quarter 2021 operating performance Delivering the energy people need, every day. Safely. Responsibly. Collaboratively. With integrity. (1) Non-GAAP measures which do not have any standardized meaning as prescribed by U.S. generally accepted accounting principles (GAAP). For more informat
Slide 5: Keystone XL update
Keystone XL update Recent developments • Presidential Permit revoked on January 20, 2021 • Subsequently agreed with the Government of Alberta (GOA) to formally suspend the project • $2.2 billion after-tax asset impairment charge recognized in first quarter 2021 results • Net financial exposure of ~$
Slide 6: Advancing $20 billion secured capital program through 2024
Advancing $20 billion secured capital program through 2024 Secured capital program by segment ($billions) • Critical energy infrastructure that will power North America for decades to come • Largely ‘in-corridor’ expansions • Underpinned by long-term contracts and/or regulated business models • Incl
Slide 7: Vast opportunity set to drive continued disciplined growth
Vast opportunity set to drive continued disciplined growth Unparalleled demand for infrastructure under all energy mix scenarios Today’s needs Low-carbon future Highly-executable Electrification Bruce Power MCR in-corridor expansions of fleet and AM programs $20 billion Secured Recoverable LNG Renew
Slide 8: Dividend growth outlook
Dividend growth outlook $3.48* 5-7% 7% Expected future growth CAGR • $20 billion secured capital program • Robust development portfolio • Irreplaceable asset footprint driving in-corridor expansions • Deep capabilities and proven origination abilities $0.80 • Growth rate will depend on project mix,
Slide 9: Don Marchand, Chief Financial Officer
Don Marchand Executive Vice-President, Strategy & Corporate Development and Chief Financial Officer
Slide 10: Consolidated results of operations
Consolidated results of operations (millions of dollars, except per share amounts) three months ended March 31 2021 2020 Net (loss)/income attributable to common shares (1,057) 1,148 Specific items (net of tax): Keystone XL asset impairment charge and other 2,192 - Income tax valuation allowance rel
Slide 11: Business segment results
Business segment results(1) (millions of dollars) three months ended March 31 2021 2020 Comparable EBITDA(2) Canadian Natural Gas Pipelines 686 597 U.S. Natural Gas Pipelines 1,055 1,032 Mexico Natural Gas Pipelines 180 269 Liquids Pipelines 393 445 Power and Storage 181 194 Corporate (3) (2) Total
Slide 12: Other income statement items
Other income statement items(1) (millions of dollars) three months ended March 31 2021 2020 Comparable EBITDA(2) 2,492 2,535 Depreciation and amortization (645) (630) Comparable EBIT(2) 1,847 1,905 Interest expense (570) (578) Allowance for funds used during construction 50 82 Interest income and ot
Slide 13: Financial position continues to be strong
Financial position continues to be strong Robust comparable funds generated from operations • $2.0 billion in the first quarter which reflects the resiliency and criticality of our energy infrastructure portfolio Issued $500 million of Junior Subordinated Notes at a coupon of 4.20 per cent • Intend
Slide 14: Funding program outlook 2021-2023
Funding program outlook 2021-2023 $Billions Financial strength and flexibility underpinned by: • Robust, predictable cash flow from operations • Access to capital markets on compelling terms • Coastal GasLink effectively funded through joint venture partnership and project-level construction facilit
Slide 15: Delivering long-term shareholder value
Delivering long-term shareholder value Track Visible Attractive, growing Strong record growth dividend financial position 12% average $20 billion secured 5.7% yield Numerous levers annual total through 2024 available to fund 5-7% expected future growth shareholder return Vast in-corridor future grow
Slide 16: Question & answer period
Question & answer period e) TC Energy Natural gas pipeline —— 16
Slide 17: Closing remarks
Closing remarks François Poirier, President and Chief Executive Officer
Slide 18: First quarter 2021 conference call
First quarter 2021 conference call May 7, 2021
Slide 19: Appendix – Reconciliation of non-GAAP measures
Appendix – Reconciliation of non-GAAP measures (millions of dollars) three months ended March 31 2021 2020 Comparable EBITDA(1) 2,492 2,535 Depreciation and amortization (645) (630) Interest expense (570) (578) Allowance for funds used during construction 50 82 Interest income and other included in
Slide 20: Appendix – Reconciliation of non-GAAP measures (continued)
Appendix – Reconciliation of non-GAAP measures (continued) (millions of dollars) three months ended March 31 2021 2020 Net cash provided by operations 1,666 1,723 Increase in operating working capital 232 371 Funds generated from operations(1) 1,898 2,094 Specific items: Current income tax expense o