Tc Energy Corporation · TSX:TRP

Tc Energy — Q4 2024 Earnings Presentation

27 slides from Tc Energy's earnings presentation, Feb 14, 2025

  1. Slide 1: Fourth quarter 2024 conference call

    T C E N E R G Y 2F 0O 2U3R TI N H VQE U S TAOR RT EDRA Y2 0 2 4 C O N F E R E N C E C A L L Fourth quarter 2024 conference call February 14, 2025

  2. Slide 2: Call participants

    T C E N E R G Y F2 O 0 2U3R TI N H VQE US TA O R TR E DR A 2Y 0 2 4 C O N F E R E N C E C A L L Call participants François Poirier – President and Chief Executive Officer Sean O’Donnell – Executive Vice-President and Chief Financial Officer Stanley G. Chapman, III – Executive Vice-President Tina Far

  3. Slide 3: Forward-looking information and non-GAAP/supplementary financial measures

    T C E N E R G Y F2 O 0 2U3R TI N H VQE US TA O R TR E DR A 2Y 0 2 4 C O N F E R E N C E C A L L Forward-looking information and non-GAAP/supplementary financial measures This presentation includes certain forward-looking information, including future oriented financial information or financial outlo

  4. Slide 4: François Poirier

    T C E N E R G Y F2 O 0 2U3R TI N H VQE US TA O R TR E DR A 2Y 0 2 4 C O N F E R E N C E C A L L François Poirier President and Chief Executive Officer

  5. Slide 5: Delivering on 2024 priorities

    T C E N E R G Y F2 O 0 2U3R TI N H VQE US TA O R TR E DR A 2Y 0 2 4 C O N F E R E N C E C A L L Delivering on 2024 priorities MAXIMIZING THE VALUE OF OUR PROJECT EXECUTION ENHANCING BALANCE SHEET ASSETS THROUGH SAFETY AND ON-TIME AND ON-BUDGET STRENGTH AND FLEXIBILITY OPERATIONAL EXCELLENCE • Achiev

  6. Slide 6: Aligned with CFE on May 1, 2025 Southeast Gateway in-service

    T C E N E R G Y F2 O 0 2U3R TI N H VQE US TA O R TR E DR A 2Y 0 2 4 C O N F E R E N C E C A L L MAJOR PROJECT EXECUTION Aligned with CFE on May 1, 2025 Southeast Gateway in-service SOUTHEAST GATEWAY PIPELINE HIGHLIGHTED PLAN MÉXICO GOALS Mechanical completion • Moving Mexico’s economy from the 12th

  7. Slide 7: Multiple drivers support a long runway of growth

    T C E N E R G Y F2 O 0 2U3R TI N H VQE US TA O R TR E DR A 2Y 0 2 4 C O N F E R E N C E C A L L Multiple drivers support a long runway of growth North American natural gas demand forecast to increase 40 Bcf/d by 2035(1) 2023 – 2035 TC Energy Strategic pillar Growth Potential Recently announced proje

  8. Slide 8: Nuclear and storage essential to meet Ontario's growing electricity demand

    T C E N E R G Y F2 O 0 2U3R TI N H VQE US TA O R TR E DR A 2Y 0 2 4 C O N F E R E N C E C A L L POWER AND ENERGY SOLUTIONS - DEVELOPMENTS Nuclear and storage essential to meet Ontario’s growing electricity demand Pathway Scenario – Installed Capacity in 2050 (MW)(1) BRUCE POWER MCR PROGRAM • Unit 5

  9. Slide 9: Disciplined and strategic sanctioned capital spending

    T C E N E R G Y F2 O 0 2U3R TI N H VQE US TA O R TR E DR A 2Y 0 2 4 C O N F E R E N C E C A L L Disciplined and strategic sanctioned capital spending Net capital expenditures(1) $Billions Ability to sanction Average project size(2) incremental high-value projects ~$450 million Targeted $6 – $7 billi

  10. Slide 10: Contractually insulated from potential tariffs

    T C E N E R G Y F2 O 0 2U3R TI N H VQE US TA O R TR E DR A 2Y 0 2 4 C O N F E R E N C E C A L L Contractually insulated from potential tariffs Tariff mitigants • Muted impacts due to contractual structures • Comparable EBITDA(1) is 97% rate-regulated or long-term, take-or-pay contracted • Minimal co

  11. Slide 11: Sean O'Donnell

    T C E N E R G Y F2 O 0 2U3R TI N H VQE US TA O R TR E DR A 2Y 0 2 4 C O N F E R E N C E C A L L Sean O’Donnell Executive Vice-President and Chief Financial Officer

  12. Slide 12: Strong utilization enabled through safety and operational excellence

    T C E N E R G Y F2 O 0 2U3R TI N H VQE US TA O R TR E DR A 2Y 0 2 4 C O N F E R E N C E C A L L Q4 HIGHLIGHTS Strong utilization enabled through safety and operational excellence CANADIAN NATURAL GAS PIPELINES Comparable EBITDA Total system deliveries averaged 25.6 Bcf/d, up 7% vs. Q4 2023 from cont

  13. Slide 13: Comparable earnings

    T C E N E R G Y F2 O 0 2U3R TI N H VQE US TA O R TR E DR A 2Y 0 2 4 C O N F E R E N C E C A L L Comparable earnings Comparable earnings(1) $Millions from continuing operations -8% 1,192 -96 101 -84 85 -35 -7 -59 -4 1,094 1 Q4 2023(2) Comparable Depreciation Interest AFUDC FX gains Interest Income ta

  14. Slide 14: Comparable EBITDA outlook demonstrates solid, repeatable growth

    T C E N E R G Y F2 O 0 2U3R TI N H VQE US TA O R TR E DR A 2Y 0 2 4 C O N F E R E N C E C A L L Comparable EBITDA(1) outlook demonstrates solid, repeatable growth Comparable EBITDA Incremental comparable EBITDA $1.50 from continuing operations by USD/CAD rate: Tailwinds & headwinds to comparable EBI

  15. Slide 15: Leverage remains on track despite foreign exchange volatility

    T C E N E R G Y F2 O 0 2U3R TI N H VQE US TA O R TR E DR A 2Y 0 2 4 C O N F E R E N C E C A L L Leverage remains on track despite foreign exchange volatility Year-end debt-to-EBITDA(1) Achieved significant deleveraging in 2024 despite FX headwinds 5.4x 2024 USD/CAD rate $1.45 5.1x $1.44 (Year-end ra

  16. Slide 16: Dividend growth supported by operational excellence

    T C E N E R G Y F2 O 0 2U3R TI N H VQE US TA O R TR E DR A 2Y 0 2 4 C O N F E R E N C E C A L L Dividend growth supported by operational excellence $3.84 Dividend growth outlook: +3.3% $3.40(1) $0.85 3 – 5% $0.8225 $3.40 annualized Q4 2024 Q1 2025 Reflects TC Energy’s proportionate allocation of div

  17. Slide 17: 2025 Strategic priorities

    T C E N E R G Y F2 O 0 2U3R TI N H VQE US TA O R TR E DR A 2Y 0 2 4 C O N F E R E N C E C A L L 2025 Strategic priorities MAXIMIZING THE VALUE OF OUR EXECUTE OUR SELECTIVE ENSURE FINANCIAL ASSETS THROUGH SAFETY AND PORTFOLIO OF GROWTH STRENGTH AND AGILITY OPERATIONAL EXCELLENCE PROJECTS • Promote sa

  18. Slide 18: Recent leadership appointments

    T C E N E R G Y F2 O 0 2U3R TI N H VQE US TA O R TR E DR A 2Y 0 2 4 C O N F E R E N C E C A L L Recent leadership appointments Tina Faraca Greg Grant Executive Vice-President and Executive Vice-President and President, Chief Operating Officer, Natural Gas Pipelines Power and Energy Solutions 18

  19. Slide 19: 2025 outlook by business unit

    T C E N E R G Y F2 O 0 2U3R TI N H VQE US TA O R TR E DR A 2Y 0 2 4 C O N F E R E N C E C A L L 2025 outlook by business unit CANADIAN NATURAL GAS PIPELINES U.S. NATURAL GAS PIPELINES Comparable EBITDA(1) expected to be higher than 2024, Comparable EBITDA expected to be slightly higher than 2024 dri

  20. Slide 20: Appendix

    T C E N E R G Y F2 O 0 2U3R TI N H VQE US TA O R TR E DR A 2Y 0 2 4 C O N F E R E N C E C A L L Appendix Non-GAAP reconciliations Appendix A: Comparable EBITDA Appendix B: Net Income (loss) to comparable earnings Appendix C: Net cash provided by operations to Comparable funds generated from operatio

  21. Slide 21: Appendix A – Non-GAAP reconciliations – Comparable EBITDA

    Appendix A – Non-GAAP reconciliations – Comparable EBITDA(1) Three months Year ended (Millions of dollars) ended December 31 December 31 2024 2023(2) 2024 2023(2) Total segmented earnings (losses) 1,898 2,026 7,964 5,097 Interest expense (679) (777) (3,019) (2,966) Allowance for funds used during co

  22. Slide 22: Appendix B – Net Income (loss) to comparable earnings

    Appendix B – Non-GAAP reconciliations – Net Income (loss) to comparable earnings(1) (Millions of dollars, except per share amounts) Three months ended Year ended December 31 December 31 2024 2023(2) 2024 2023(2) Net income (loss) attributable to common shares from continuing operations 1,069 1,249 4

  23. Slide 23: Appendix C – Net cash provided by operations to comparable funds generated

    Appendix C – Non-GAAP reconciliations – Net cash provided by operations to Comparable funds generated from operations(1,2,3) Three months Year ended (Millions of dollars) ended December 31 December 31 2024 2023 2024 2023 Net cash provided by operations 2,084 1,860 7,696 7,268 Increase (decrease) in

  24. Slide 24: Appendix D – Adjusted Debt/Adjusted Comparable EBITDA

    Appendix D – Non-GAAP reconciliations – Adjusted Debt/Adjusted Comparable EBITDA (Debt-to-EBITDA) Adjusted debt and adjusted comparable EBITDA are non-GAAP measures used to compute the debt-to-EBITDA multiple. Each of adjusted debt and adjusted comparable EBITDA measures does not have any standardiz

  25. Slide 25: Appendix D – Adjusted Debt/Adjusted Comparable EBITDA

    Appendix D – Non-GAAP reconciliations – Adjusted Debt/Adjusted Comparable EBITDA(1) (Debt-to-EBITDA) (Millions of dollars) Year ended December 31 2024 2023 2022 Reported total debt 59,366 63,201 58,300 Management adjustments: Debt treatment of preferred shares(2) 1,250 1,250 1,250 Equity treatment o

  26. Slide 26: Appendix E – Segmented earnings and Comparable EBITDA

    Appendix E – Non-GAAP reconciliations – Segmented earnings and Comparable EBITDA Comparable EBITDA(1) outlook from continuing operations (Billions of dollars) 11.7 — 11.9 10.7 – 10.9 10.0 8.0 Canadian Natural Gas Pipelines U.S. Natural Gas Pipelines Mexico Natural Gas Pipelines Power and Energy Solu

  27. Slide 27: Appendix F – Unlevered after-tax internal rate of return

    Appendix F – Non-GAAP measures – Unlevered after-tax internal rate of return Unlevered after-tax internal rate of return represents the expected compound annual return of a project or investment, and prior to any assumption of debt and/or equity financing. Unlevered after-tax internal rate of return

TC Energy — Q4 2024 Earnings Presentation on 6ix