Tc Energy Corporation · TSX:TRP
Tc Energy — Q2 2020 Earnings Presentation
23 slides from Tc Energy's earnings presentation, Jul 30, 2020
Slide 1: Second Quarter 2020 conference call
Second Quarter 2020 conference call July 30, 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: Second Quarter 2020 accomplishments
Second Quarter 2020 accomplishments Continued to reliably deliver essential energy services across North America during this unprecedented time • Despite the challenges brought about by COVID-19, our assets have been largely unimpacted • With few exceptions, flows and utilization levels remain in li
Slide 5: Financial highlights – Three months ended June 30 (Non-GAAP)
Financial highlights – Three months ended June 30 (Non-GAAP) Comparable Comparable Comparable funds earnings per common share* EBITDA* generated from operations* (Dollars) ($Millions) ($Millions) *Comparable earnings per common share, comparable EBITDA and comparable funds generated from operations
Slide 6: Financial highlights – Six months ended June 30 (Non-GAAP)
Financial highlights – Six months ended June 30 (Non-GAAP) Comparable Comparable Comparable funds earnings per common share* EBITDA* generated from operations* (Dollars) ($Millions) ($Millions) *Comparable earnings per common share, comparable EBITDA and comparable funds generated from operations ar
Slide 7: Natural Gas Pipelines recent developments
Natural Gas Pipelines recent developments Canadian, U.S. and Mexico Natural Gas Pipelines continue to produce strong financial results • Underpinned by regulated and/or long-term contracted assets with volume throughput across our network largely comparable to last year Capital program continues to
Slide 8: Liquids Pipelines recent developments
Liquids Pipelines recent developments Liquids Pipelines produced solid results despite lower uncontracted volumes, a lower contribution from liquids marketing and the partial monetization of Northern Courier in July 2019 • Keystone System remains largely underpinned by long-term contracts Keystone X
Slide 9: Power and Storage recent developments
Power and Storage recent developments Bruce Power – Life Extension Program • Work on the Unit 6 MCR and Asset Management programs restarted on May 11 following a force majeure event in March as a result of COVID-19 • Progress being made on critical path activities in preparation of the removal of th
Slide 10: Advancing $37 billion secured capital program through 2023
Advancing $37 billion secured capital program through 2023 Estimated Invested to Expected Project Capital Cost* Date* In-Service Date* NGTL System 3.3 3.2 2020 Modernization II US 1.1 US 0.9 2020 Other Liquids Pipelines 0.1 - 2020-2021 NGTL System 3.0 0.5 2021 Villa de Reyes US 0.9 US 0.8 2021 NGTL
Slide 11: Dividend growth outlook
Dividend growth outlook 5-7% Expected organic growth per year 8-10% 2021+ CAGR 3.24* • $37 billion secured growth program • Further “in-corridor” expansions 7% CAGR • $11 billion development portfolio 2.08 • Alberta liquids • Further Bruce refurbishments • Growth rate will depend on project mix, cad
Slide 12: 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 $37 billion of secured growth projects • $11 billion of projects under development • Additional organic growth expected from our five operat
Slide 13: Don Marchand, Executive VP, Strategy & Corporate Development and CFO
Don Marchand Executive VP, Strategy & Corporate Development and CFO 13
Slide 14: Consolidated results of operations
Consolidated results of operations (millions of dollars, except per share amounts) Three months Six months ended June 30 ended June 30 2020 2019 2020 2019 Net Income Attributable to Common Shares 1,281 1,125 2,429 2,129 Specific items (net of tax): Gain on partial sale of Coastal GasLink (408) - (40
Slide 15: Business segment results
Business segment results(1) (millions of dollars) Three months Six months ended June 30 ended June 30 2020 2019 2020 2019 Comparable EBITDA(2) Canadian Natural Gas Pipelines 621 528 1,218 1,084 U.S. Natural Gas Pipelines 824 857 1,856 1,829 Mexico Natural Gas Pipelines 181 141 450 287 Liquids Pipeli
Slide 16: Other income statement items
Other income statement items(1) (millions of dollars) Three months Six months ended June 30 ended June 30 2020 2019 2020 2019 Comparable EBITDA(2) 2,199 2,324 4,734 4,707 Depreciation and amortization (635) (621) (1,265) (1,229) Comparable EBIT(2) 1,564 1,703 3,469 3,478 Interest expense (561) (588)
Slide 17: Funding program continued to advance
Funding program continued to advance Resilient and predictable cash flow generated from operations • Comparable funds generated from operations of $1.5 billion in the second quarter Accessed capital markets on compelling terms in the second quarter • Issued $2.0 billion of seven-year medium term not
Slide 18: 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 sourced through an array of attractive funding levers • $2.0 billion of medium term notes and US$1.25 of senior unsecured n
Slide 19: Delivering long-term shareholder value
Delivering long-term shareholder value Track Visible Attractive, growing Strong record growth dividend financial position 13% average $37 billion secured Dividend raised 8% in Numerous levers annual total through 2023 February 2020 available to fund shareholder return 5.4% yield future growth Advanc
Slide 20: Question & answer period
Question & answer period e) TC Energy 20
Slide 21: Second Quarter 2020 conference call
Second Quarter 2020 conference call July 30, 2020
Slide 22: Appendix – Reconciliation of non-GAAP measures
Appendix – Reconciliation of non-GAAP measures (millions of dollars) Three months Six months ended June 30 ended June 30 2020 2019 2020 2019 Comparable EBITDA(1) 2,199 2,324 4,734 4,707 Depreciation and amortization (635) (621) (1,265) (1,229) Interest expense (561) (588) (1,139) (1,174) Allowance f
Slide 23: Appendix – Reconciliation of non-GAAP measures continued
Appendix – Reconciliation of non-GAAP measures continued (millions of dollars) Three months Six months ended June 30 ended June 30 2020 2019 2020 2019 Net Cash Provided by Operations 1,613 1,722 3,336 3,671 (Decrease)/increase in operating working capital (64) (47) 307 (189) Funds Generated from Ope