TC Energy Corporation (TSX, NYSE: TRP) (TC Energy or the Company)
released its third quarter results today. François Poirier, TC
Energy’s President and Chief Executive Officer commented,
“Following strong asset performance driven by our focus on safety
and operational excellence and reflecting the increase in segmented
earnings during the first nine months of 2024, we now expect
comparable EBITDA1 to be at the upper end of our 2024 outlook.”
Poirier continued, “Our Southeast Gateway pipeline project in
Mexico is making significant progress toward commercial in-service
no later than mid-next year and we now expect capital expenditures
associated with the project to be between US$3.9 to US$4.1 billion,
approximately 11 per cent (mid-point) below the original cost
estimate of US$4.5 billion. Reflecting strong project execution, we
anticipate overall net 2024 capital expenditures to be
approximately eight per cent (mid-point) lower, at $7.4 to $7.7
billion, further enhancing our financial strength and flexibility."
Highlights
(All financial figures are unaudited and in
Canadian dollars unless otherwise noted)
- Third quarter 2024 financial results:
- Comparable earnings1 of $1.1 billion
or $1.03 per common share compared to $1.0 billion or $1.00 per
common share in 2023 and net income attributable to common shares
of $1.5 billion or $1.40 per common share compared to net loss
attributable to common shares of $0.2 billion or net loss per
common share of $0.19 in third quarter 2023
- Comparable EBITDA of $2.8 billion
compared to $2.6 billion in 2023 and segmented earnings of $2.6
billion compared to $0.6 billion in third quarter 2023
- 2024 comparable EBITDA at
upper end of outlook and capital expenditures lower:
- Comparable EBITDA is
expected to be at the upper end of our $11.2 to $11.5 billion2
range, which on a TC Energy post-spinoff basis (excluding Liquids
Pipelines contribution in 2024) equates to a range of $9.9 to $10.1
billion
- Comparable earnings per common
share remains consistent with our 2023 Annual Report
- Capital expenditures
are anticipated to be $8.1 to $8.4 billion on a gross basis, or
$7.4 to $7.7 billion on a net basis after considering
non-controlling interests, versus previous outlook of $8.5 to $9.0
billion or $8.0 to $8.5 billion, respectively.
- Completed the successful spinoff of
the Liquids Pipelines business (the spinoff Transaction) on October
1, 2024
- Reduced outstanding long-term debt by
approximately $7.6 billion in October 2024 utilizing proceeds from
South Bow Corporation debt issuance and other sources
- Reduced Southeast Gateway pipeline
project capital cost estimate to a range of US$3.9 to US$4.1
billion, down from the original estimate of US$4.5 billion with the
project tracking towards commercial in-service no later than
mid-2025
- Received CER approval for the NGTL
System five-year negotiated revenue requirement settlement which
commences on January 1, 2025
- Filed a Section 4 Rate Case with FERC
on Columbia Gas requesting an increase to the maximum
transportation rates, expected to become effective April 1, 2025,
subject to refund
- Completed approximately $1.6 billion
of asset divestitures year-to-date including Portland Natural Gas
Transmission System (PNGTS) for pre-tax proceeds of approximately
$1.1 billion (US$0.8 billion), which includes the assumption by the
purchaser of US$250 million of senior notes outstanding at PNGTS
and the CFE’s equity injection of US$340 million as well as
non-cash consideration for a 13.01 per cent equity interest in
TGNH
- Declared a quarterly dividend of
$0.8225 per common share for the quarter ending December 31, 2024
which reflects TC Energy's proportionate allocation following the
spinoff Transaction.
|
three months endedSeptember 30 |
|
nine months ended
September 30 |
(millions of $, except per share amounts) |
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
Income |
|
|
|
|
|
|
|
Net income (loss) attributable to common shares |
1,457 |
|
|
(197 |
) |
|
3,623 |
|
|
1,366 |
|
per common share – basic |
$1.40 |
|
|
($0.19 |
) |
|
$3.49 |
|
|
$1.33 |
|
|
|
|
|
|
|
|
|
Segmented earnings (losses) |
|
|
|
|
|
|
|
Canadian Natural Gas Pipelines |
495 |
|
|
(799 |
) |
|
1,510 |
|
|
(782 |
) |
U.S. Natural Gas Pipelines |
1,330 |
|
|
782 |
|
|
3,135 |
|
|
2,576 |
|
Mexico Natural Gas Pipelines |
237 |
|
|
210 |
|
|
715 |
|
|
646 |
|
Liquids Pipelines |
240 |
|
|
253 |
|
|
826 |
|
|
702 |
|
Power and Energy Solutions |
354 |
|
|
234 |
|
|
826 |
|
|
741 |
|
Corporate |
(37 |
) |
|
(36 |
) |
|
(121 |
) |
|
(74 |
) |
Total segmented earnings (losses) |
2,619 |
|
|
644 |
|
|
6,891 |
|
|
3,809 |
|
|
|
|
|
|
|
|
|
Comparable EBITDA |
|
|
|
|
|
|
|
Canadian Natural Gas Pipelines |
845 |
|
|
781 |
|
|
2,537 |
|
|
2,301 |
|
U.S. Natural Gas Pipelines |
1,002 |
|
|
968 |
|
|
3,311 |
|
|
3,160 |
|
Mexico Natural Gas Pipelines |
265 |
|
|
232 |
|
|
765 |
|
|
597 |
|
Liquids Pipelines |
360 |
|
|
398 |
|
|
1,095 |
|
|
1,078 |
|
Power and Energy Solutions |
326 |
|
|
256 |
|
|
873 |
|
|
754 |
|
Corporate |
(7 |
) |
|
(3 |
) |
|
(6 |
) |
|
(9 |
) |
Comparable EBITDA |
2,791 |
|
|
2,632 |
|
|
8,575 |
|
|
7,881 |
|
Depreciation and amortization |
(713 |
) |
|
(690 |
) |
|
(2,149 |
) |
|
(2,061 |
) |
Interest expense included in comparable earnings |
(836 |
) |
|
(865 |
) |
|
(2,516 |
) |
|
(2,413 |
) |
Allowance for funds used during construction |
210 |
|
|
164 |
|
|
551 |
|
|
443 |
|
Foreign exchange gains (losses), net included in comparable
earnings |
(33 |
) |
|
(25 |
) |
|
(41 |
) |
|
78 |
|
Interest income and other included in comparable earnings |
61 |
|
|
63 |
|
|
207 |
|
|
157 |
|
Income tax (expense) recovery included in comparable earnings |
(235 |
) |
|
(220 |
) |
|
(758 |
) |
|
(749 |
) |
Net (income) loss attributable to non-controlling interests
included in comparable earnings |
(145 |
) |
|
(1 |
) |
|
(457 |
) |
|
(18 |
) |
Preferred share dividends |
(26 |
) |
|
(23 |
) |
|
(76 |
) |
|
(69 |
) |
Comparable earnings |
1,074 |
|
|
1,035 |
|
|
3,336 |
|
|
3,249 |
|
Comparable earnings per common share |
$1.03 |
|
|
$1.00 |
|
|
$3.21 |
|
|
$3.16 |
|
|
|
|
|
|
|
|
|
Cash flows |
|
|
|
|
|
|
|
Net cash provided by operations |
1,915 |
|
|
1,824 |
|
|
5,612 |
|
|
5,408 |
|
Comparable funds generated from operationsi |
1,915 |
|
|
1,755 |
|
|
6,225 |
|
|
5,575 |
|
Capital spendingii |
2,109 |
|
|
3,289 |
|
|
5,597 |
|
|
9,313 |
|
Acquisitions, net of cash acquired |
— |
|
|
— |
|
|
— |
|
|
(302 |
) |
|
|
|
|
|
|
|
|
Dividends declared |
|
|
|
|
|
|
|
per common share |
$0.96 |
|
|
$0.93 |
|
|
$2.88 |
|
|
$2.79 |
|
|
|
|
|
|
|
|
|
Basic common shares outstanding (millions) |
|
|
|
|
|
|
|
– weighted average for the period |
1,038 |
|
|
1,035 |
|
|
1,038 |
|
|
1,028 |
|
– issued and outstanding at end of period |
1,038 |
|
|
1,037 |
|
|
1,038 |
|
|
1,037 |
|
i Comparable funds generated from
operations is a non-GAAP measure used throughout this release. This
measure does not have any standardized meaning under GAAP and
therefore is unlikely to be comparable in similar measures
presented by other companies. The most directly comparable GAAP
measure is Net cash provided by operations. For more information on
non-GAAP measures, refer to the Non-GAAP Measures section of this
release. ii Capital spending reflects cash
flows associated with our Capital expenditures, Capital projects in
development and Contributions to equity investments. Refer to Note
4, Segmented information, of our Condensed consolidated financial
statements for additional information.
CEO MessageUnderpinned by
wide-scale electrification, demand for natural gas and reliable
power generation continues to reach record highs. Our forecast
highlights North America’s natural gas demand increasing by
approximately 40 Bcf/d through 2035, largely driven by LNG and
power generation demand growth in the critical markets our assets
serve. We believe that the strength of our base business combined
with the vast opportunity set and disciplined capital allocation
will allow us to deliver solid growth, low-risk, repeatable
performance, well into the future. Our continued focus on a clear
set of priorities for 2024, including safety, operational
excellence and project execution has delivered strong operational
and financial results. For the first nine months of 2024,
comparable EBITDA increased approximately nine per cent, and
segmented earnings increased approximately 81 per cent compared to
the first nine months of 2023.
We have made continued progress towards our 2024
priorities including significant milestones on the Southeast
Gateway pipeline project, executing our plan towards achieving 4.75
times debt-to-EBITDA3 by year end and continuing to enhance the
value of our assets through successfully completing the spinoff of
our Liquids Pipelines business into a separate, publicly traded
entity, South Bow Corporation. Reflecting strong year-to-date
performance and an increase in segmented earnings, we now expect
2024 comparable EBITDA1 to be at the upper end of our $11.2 to
$11.5 billion range which on a TC Energy post-spinoff basis
(excluding Liquids Pipelines contribution in 2024) equates to a
range of $9.9 to $10.1 billion. Further, we expect our 2024 net
capital expenditures to be approximately $7.4 to $7.7 billion
versus our previous outlook of $8.0 to $8.5 billion after
considering capital expenditures attributable to non-controlling
interests.
Operational highlights
include:
- Canada Natural Gas Pipelines
deliveries averaged 22.2 Bcf/d, up two per cent compared to third
quarter 2023
- Total NGTL System receipts averaged
13.9 Bcf/d, comparable to third quarter 2023
- Canadian Natural Gas Pipelines set an
all-time power delivery record of 1.4 Bcf on July 15, 2024
- U.S. Natural Gas Pipelines daily
average flows were 25.9 Bcf/d, up three per cent compared to third
quarter 2023
- U.S. Natural Gas Pipelines set
quarterly average delivery records to power generators at 3.8 Bcf/d
and continued high deliveries to LNG facilities of 3.2 Bcf/d
- Mexico Natural Gas Pipelines flows
averaged 3.2 Bcf/d
- Began deliveries to LNG facilities
this quarter
- The Keystone Pipeline System achieved
95 per cent operational reliability in the third quarter 2024
- Bruce Power achieved 98 per cent
availability in third quarter 2024
- Cogeneration power
plant fleet achieved 85 per cent availability in third quarter
2024, taking into account a planned outage at MacKay River
Cogeneration Plant.
Our continued focus on project
execution is delivering meaningful results. Southeast
Gateway continues to make significant progress, achieving
mechanical completion of all major onshore facilities, including
the onshore pipeline, both compressor stations, a delivery meter
station at Paraiso and hydrotesting of approximately 500 km of
offshore pipeline. The remaining shallow water pipe installation is
targeted for fourth quarter 2024 and we remain on track to achieve
commercial in-service no later than mid-2025. Given our strong
project execution, capital expenditures for the project are now
expected to be US$3.9 to US$4.1 billion relative to the initial
cost estimate of US$4.5 billion. The Bruce
Power Unit 3 Major Component Replacement (MCR)
program continues to advance on plan for both cost and schedule and
the Unit 4 MCR is expected to begin in early-2025. Year-to-date,
$1.2 billion of natural gas capacity projects have been placed in
service and we continue to expect approximately $7 billion
of projects to be placed into service in 2024 and
approximately $8.5 billion of projects in 2025, including the
Southeast Gateway pipeline project.
With continued strong performance, revised lower
capital expenditures outlook, synergies realized through efficiency
and integration measures, and an approximate $7.6 billion reduction
in long-term debt with the proceeds from $1.6 billion of asset
sales transacted and the debt issuance by South Bow Corporation
along with other sources, we are on track towards our year end
debt-to-EBITDA target of 4.75 times. Further, we remain committed
to staying within our $6 to $7 billion annual net capital
expenditure limit, with a bias to the lower end, in 2025 and
beyond. This will allow TC Energy to continue to organically grow
comparable EBITDA to support our three to five per cent dividend
growth target and further reduce leverage over time.
TC Energy’s pure-play natural gas and power
infrastructure assets are strategically positioned to
capture opportunities supported by strong secular demand trends
that provide high-quality investment visibility through the end of
the decade. Our continental footprint and disciplined capital
allocation means we will have the ability to evaluate a vast
opportunity set and select those projects that deliver the highest
value.
Teleconference and WebcastWe will
hold a teleconference and webcast on Thursday, November 7,
2024 at 6:30 a.m. (MST) / 8:30 a.m. (EST) to discuss our third
quarter 2024 financial results and Company developments. Presenters
will include François Poirier, President and Chief Executive
Officer; Sean O'Donnell, Executive Vice-President and Chief
Financial Officer; and other members of the executive leadership
team.
Members of the investment community and other
interested parties are invited to participate by calling
1-844-763-8274 (Canada/U.S.) or 1-647-484-8814
(International). No passcode is required. Please dial in
15 minutes prior to the start of the call. Alternatively,
participants may pre-register for the call here. Upon registering,
you will receive a calendar booking by email with dial in details
and a unique PIN. This process will bypass the operator and avoid
the queue. Registration will remain open until the end of the
conference call.
A live webcast of the teleconference will be
available on TC Energy's website at TC Energy — Events and
presentations or via the following URL:
https://www.gowebcasting.com/13687. The webcast will be available
for replay following the meeting.
A replay of the teleconference will be available
two hours after the conclusion of the call until midnight EST on
November 14, 2024. Please call 1-855-669-9658 (Canada/U.S.) or
1-412-317-0088 (International) and enter passcode 8801413#.
The unaudited interim Condensed
consolidated financial statements and Management’s Discussion and
Analysis (MD&A) are available on our website at
www.TCEnergy.com and will be filed today
under TC Energy's profile on SEDAR+ at
www.sedarplus.ca and with the U.S.
Securities and Exchange Commission on EDGAR at
www.sec.gov.
About TC EnergyWe’re a team of
7,000+ energy problem solvers working to move, generate and store
the energy North America relies on. Today, we’re delivering
solutions to the world’s toughest energy challenges – from
innovating to deliver the natural gas that feeds LNG to global
markets, to working to reduce emissions from our assets, to
partnering with our neighbours, customers and governments to build
the energy system of the future. It’s all part of how we continue
to deliver sustainable returns for our investors and create value
for communities.
TC Energy's common shares trade on the Toronto
(TSX) and New York (NYSE) stock exchanges under the symbol TRP. To
learn more, visit us at www.TCEnergy.com.
Forward-Looking InformationThis
release contains certain information that is forward-looking and is
subject to important risks and uncertainties and is based on
certain key assumptions. Forward-looking statements are usually
accompanied by words such as "anticipate", "expect", "believe",
"may", "will", "should", "estimate" or other similar words.
Forward-looking statements in this document may include, but are
not limited to, statements on the progress of Coastal GasLink and
Southeast Gateway, including mechanical completion, offshore
installations and landfall construction and in-service dates and
related expected capital expenditures, expected comparable EBITDA
and comparable earnings per common share and targeted
debt-to-EBITDA leverage metrics for 2024, and the sources thereof,
expectations with respect to the Cedar Link project, including the
financing thereof, expectations with respect to Bruce Power,
expected approximate value of projects to be placed in-service in
2024 and 2025, expectations with respect to our strategic
priorities, including our multi-year growth plan for the NGTL
System, and the execution thereof, our sustainability commitments,
expectations with respect to our asset divestiture program and our
expected net capital expenditures, including timing. Our
forward-looking information is subject to important risks and
uncertainties and is based on certain key assumptions.
Forward-looking statements and future-oriented financial
information in this document are intended to provide TC Energy
security holders and potential investors with information regarding
TC Energy and its subsidiaries, including management's assessment
of TC Energy's and its subsidiaries' future plans and financial
outlook. All forward-looking statements reflect TC Energy's beliefs
and assumptions based on information available at the time the
statements were made and as such are not guarantees of future
performance. As actual results could vary significantly from the
forward-looking information, you should not put undue reliance on
forward-looking information and should not use future-oriented
information or financial outlooks for anything other than their
intended purpose. We do not update our forward-looking information
due to new information or future events, unless we are required to
by law. For additional information on the assumptions made, and the
risks and uncertainties which could cause actual results to differ
from the anticipated results, refer to the most recent Quarterly
Report to Shareholders and the 2023 Annual Report filed under TC
Energy's profile on SEDAR+ at www.sedarplus.ca and with the U.S.
Securities and Exchange Commission at www.sec.gov and the
"Forward-looking information" section of our Report on
Sustainability and our GHG Emissions Reduction Plan which are
available on our website at www.TCEnergy.com.
Non-GAAP MeasuresThis release
contains references to the following non-GAAP measures: comparable
EBITDA, comparable earnings, comparable earnings per common share,
comparable funds generated from operations and net capital
expenditures. It also contains references to debt-to-EBITDA, a
non-GAAP ratio, which is calculated using adjusted debt and
adjusted comparable EBITDA, each of which are non-GAAP measures.
These non-GAAP measures do not have any standardized meaning as
prescribed by GAAP and therefore may not be comparable to similar
measures presented by other entities. These non-GAAP measures are
calculated by adjusting certain GAAP measures for specific items we
believe are significant but not reflective of our underlying
operations in the period. These comparable measures are calculated
on a consistent basis from period to period and are adjusted for
specific items in each period, as applicable except as otherwise
described in the Condensed consolidated financial statements and
MD&A. Refer to: (i) each business segment for a reconciliation
of comparable EBITDA to segmented earnings (losses); (ii)
Consolidated results section for reconciliations of comparable
earnings and comparable earnings per common share to Net income
attributable to common shares and Net income per common share,
respectively; and (iii) Financial condition section for a
reconciliation of comparable funds generated from operations to Net
cash provided by operations. Refer to the Non-GAAP Measures section
of the MD&A in our most recent quarterly report for more
information about the non-GAAP measures we use. The MD&A is
included with, and forms part of, this release. The MD&A can be
found on SEDAR+ at www.sedarplus.ca under TC Energy's profile.
With respect to non-GAAP measures used in the
calculation of debt-to-EBITDA, adjusted debt is defined as the sum
of Reported total debt, including Notes payable, Long-term debt,
Current portion of long-term debt and Junior subordinated notes, as
reported on our Consolidated balance sheet as well as Operating
lease liabilities recognized on our Consolidated balance sheet and
50 per cent of Preferred shares as reported on our Consolidated
balance sheet due to the debt-like nature of their contractual and
financial obligations, less Cash and cash equivalents as reported
on our Consolidated balance sheet and 50 per cent of Junior
subordinated notes as reported on our Consolidated balance sheet
due to the equity-like nature of their contractual and financial
obligations. Adjusted comparable EBITDA is calculated as comparable
EBITDA excluding operating lease costs recorded in Plant operating
costs and other in our Consolidated statement of income and
adjusted for Distributions received in excess of (income) loss from
equity investments as reported in our Consolidated statement of
cash flows which we believe is more reflective of the cash flows
available to TC Energy to service our debt and other long-term
commitments. We believe that debt-to-EBITDA provides investors with
useful information as it reflects our ability to service our debt
and other long-term commitments. See the Reconciliation section for
reconciliations of adjusted debt and adjusted comparable EBITDA for
the years ended December 31, 2022 and 2023.
ReconciliationThe following is a
reconciliation of adjusted debt and adjusted comparable
EBITDAi.
|
year ended December 31 |
(millions of Canadian $) |
2023 |
|
|
2022 |
|
|
|
|
|
Reported total debt |
63,201 |
|
|
58,300 |
|
Management adjustments: |
|
|
|
Debt treatment of preferred sharesii |
1,250 |
|
|
1,250 |
|
Equity treatment of junior subordinated notesiii |
(5,144 |
) |
|
(5,248 |
) |
Cash and cash equivalents |
(3,678 |
) |
|
(620 |
) |
Operating lease liabilities |
459 |
|
|
433 |
|
Adjusted debt |
56,088 |
|
|
54,115 |
|
|
|
|
|
Comparable EBITDAiv |
10,988 |
|
|
9,901 |
|
Operating lease cost |
118 |
|
|
106 |
|
Distributions received in excess of (income) loss from equity
investments |
(123 |
) |
|
(29 |
) |
Adjusted Comparable EBITDA |
10,983 |
|
|
9,978 |
|
|
|
|
|
Adjusted Debt/Adjusted Comparable EBITDAi |
5.1 |
|
|
5.4 |
|
i Adjusted debt and adjusted
comparable EBITDA are non-GAAP measures. The calculations are based
on management methodology. Individual rating agency calculations
will differ.ii 50 per cent debt treatment on $2.5
billion of preferred shares as of December 31, 2023.iii 50
per cent equity treatment on $10.3 billion of junior subordinated
notes as of December 31, 2023. U.S. dollar-denominated notes
translated at December 31, 2023, U.S./Canada foreign exchange rate
of 1.32.iv Comparable EBITDA is a non-GAAP financial measure.
See the Forward-looking information and Non-GAAP measures sections
for more information.
Media Inquiries:Media
Relationsmedia@tcenergy.com403.920.7859 or 800.608.7859
Investor & Analyst
Inquiries: Gavin
Wylie / Hunter Mau investor_relations@tcenergy.com403.920.7911 or
800.361.6522
Download full report here:
https://www.tcenergy.com/siteassets/pdfs/investors/reports-and-filings/annual-and-quarterly-reports/2024/tce-2024-q3-quarterly-report.pdf
1 Comparable EBITDA, comparable earnings and
comparable earnings per common share are non-GAAP measures used
throughout this news release. These measures do not have any
standardized meaning under GAAP and therefore are unlikely to be
comparable to similar measures presented by other companies. The
most directly comparable GAAP measures are Segmented earnings, Net
income attributable to common shares and Net income per common
share, respectively. We do not forecast Segmented earnings. For
more information on non-GAAP measures, refer to the Non-GAAP
Measures section of this news release. 2 Prior to the impact of the
Liquids Pipelines business spinoff.3 Debt-to-EBITDA is a non-GAAP
ratio. Adjusted debt and adjusted comparable EBITDA are non-GAAP
measures used to calculate debt-to-EBITDA. For more information on
non-GAAP measures, refer to the non-GAAP measures of this news
release. These measures do not have any standardized meaning under
GAAP and therefore are unlikely to be comparable to similar
measures presented by other companies.
TC Energy (TSX:TRP)
過去 株価チャート
から 10 2024 まで 11 2024
TC Energy (TSX:TRP)
過去 株価チャート
から 11 2023 まで 11 2024