Tc Energy Corporation · TSX:TRP
Tc Energy — J.P. Morgan Energy Conference 2019
15 slides from Tc Energy's conference presentation, Jun 18, 2019
Slide 1: J.P. Morgan Energy Conference
J.P. Morgan Energy Conference June 18, 2019 Don Marchand, Executive Vice‐President and Chief Financial Officer
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: Our business model
Our business model Build or acquire long‐life, critical energy infrastructure • Long‐term, secure, low variability income streams • World‐class development, procurement and construction • Industry‐leading operator – safe, reliable, efficient • Maximize customer confidence, satisfaction and value‐for
Slide 4: Proven capital allocation framework delivers results
Proven capital allocation framework delivers results Produced 14% average annual total shareholder return since 2000
Slide 5: ~$95 billion invested since 2000
~$95 billion invested since 2000 Billions Acquired Columbia $100B Pipeline Group and Total Assets $100 Acquired ANR Columbia Pipeline and remainder Built Keystone and Partners Canadian Natural of Great Lakes acquired partner's Gas Pipelines 50% interest $75 U.S. Natural Gas Acquired Pipelines Acquir
Slide 6: TC Energy today
TC Energy today One of North America’s largest natural gas pipeline networks • 57,500 miles of pipeline • 653 Bcf of storage capacity • 23 Bcf/d; ~25% of continental demand Premier liquids pipeline system • 3,000 miles of pipeline • 590,000 Bbl/d Keystone System transports ~20% of Western Canadian e
Slide 7: Portfolio generates high-quality, long-life cash flows
Portfolio generates high‐quality, long‐life cash flows 2018 Comparable EBITDA* Approximately 95% of 4% Comparable EBITDA from 1% Minimal Variability regulated assets or long‐term Regulated contracts Contracted Commodity Risk High visibility to sustained Volumetric Risk 32% EBITDA well into the next
Slide 8: Advancing $30 billion secured capital program through 2023
Advancing $30 billion secured capital program through 2023 Estimated Expected Project Invested to Date* Capital Cost* In‐Service Date* White Spruce 0.2 0.2 2019 Sur de Texas** US 1.5 US 1.4 2019 Napanee 1.7 1.7 2019 NGTL System 2.8 2.0 2019 Modernization II US 1.1 US 0.5 2019‐2020 Villa de Reyes US
Slide 9: Secured capital program drives significant growth
Secured capital program drives significant growth Comparable EBITDA* outlook ($Billions) ~95% of comparable EBITDA* to come from regulated assets or long‐term contracts * Comparable EBITDA is a non‐GAAP measure. See the non‐GAAP measures slide at the front of this presentation for more information.
Slide 10: Funding program outlook 2019-2021
Funding program outlook 2019‐2021 $Billions 30 Numerous levers available to fund Portfolio mgt., DRP & other Hybrid securities Secured Capital Program Senior debt, commercial 25 paper & cash • Strong, predictable and growing cash Capital program Northern Courier sale flow from operations (including
Slide 11: Deleveraging while growing per share earnings
Deleveraging while growing per share earnings Times Debt/EBITDA Dollars EPS 8 5 4 6 Target ‘high fours’ 3 4 2 2 1 0 0 2016 2017 2018* 2019E 2016 2017 2018 2019E On track to achieve and maintain targeted credit metrics EBITDA is a non‐GAAP measure. See the non‐GAAP measures slide at the front of this
Slide 12: Long track record of common share dividend growth
Long track record of common share dividend growth Increased 8.7% in first quarter 2019 Equivalent to $3.00 per share annually Supported by expected growth in earnings and cash flow and continued strong coverage ratios * Annual rate based on most recently declared quarterly dividend of $0.75 per shar
Slide 13: Multiple growth platforms that cannot be replicated
Multiple growth platforms that cannot be replicated NGTL System Canadian Mainline is uniquely positioned is a critical conduit to over 924 TCF of WCSB eastern markets natural gas resources Bruce Power generates ~30% of Ontario’s power Keystone corridor provides a direct link to world’s largest Colum
Slide 14: Delivering long-term shareholder value
Delivering long‐term shareholder value Track Visible Attractive, growing Strong record growth dividend financial position 14% average annual $30 billion secured Dividend raised 8.7% Numerous levers total shareholder to 2023 in February 2019 available to fund return since 2000 future growth Advancing
Slide 15: J.P. Morgan Energy Conference
J.P. Morgan Energy Conference June 18, 2019 Don Marchand, Executive Vice‐President and Chief Financial Officer