TC Energy reaches agreement to sell Ontario natural gas-fired power plants for $2.87 billion
July 30 2019 - 5:00PM
TC Energy Corporation (TSX:TRP) (NYSE:TRP) (TC Energy) announced
today that it has entered into an agreement through its
wholly-owned subsidiary, TransCanada Energy Ltd., to sell interests
in three Ontario natural gas-fired power plants to a subsidiary of
Ontario Power Generation Inc., for approximately $2.87 billion. The
facilities include the 683-megawatt Halton Hills power plant, the
900-megawatt Napanee generating station which is nearing completion
and TC Energy’s 50 per cent interest in the 550-megawatt Portlands
Energy Centre. The transaction is expected to close in late 2019
subject to a number of closing conditions which include regulatory
approvals and Napanee reaching commercial operations as outlined in
the agreement.
“The sale of these facilities is part of our ongoing efforts to
maximize value for our shareholders and fund our industry-leading
secured growth program in a disciplined manner,” said Russ Girling,
TC Energy President and Chief Executive Officer. “We continue to be
a significant private sector power generator in Canada and are
committed to the ongoing multi-billion-dollar life-extension
program at the Bruce Power nuclear facility in Ontario. In
addition, we remain interested in new low-risk investment
opportunities in the electricity sector within our core North
American markets.” When combined with the Coolidge, Northern
Courier and U.S. Midstream asset monetizations, TC Energy now
expects to realize approximately $6.3 billion from portfolio
management activities in 2019 that will be used to help fund its
near-term capital program and further strengthen its financial
position.“Looking forward, we expect our strong operating and
financial performance to continue as we are well-positioned to fund
our $30 billion secured capital program with a focus on per share
measures and in a manner consistent with achieving targeted credit
metrics in 2019 and thereafter,” Girling added.Following the sale
of these three facilities, TC Energy’s portfolio of high-quality,
long-life energy infrastructure assets will include investments in
six low-emission natural gas-fired power plants and the Bruce Power
nuclear facility, resulting in a combined generating capacity of
approximately 4,200 megawatts. Bruce Power, which provides Ontario
with over 30 per cent of its electricity, is undertaking a
life-extension program that will see TC Energy invest approximately
$2.2 billion by 2023 with the potential for another $6.0 billion
($2018) under a long-term agreement with the Ontario Independent
Electricity System Operator.TC Energy and its affiliates deliver
the energy millions of people rely on every day to power their
lives and fuel industry. We are not only focused on what we do, but
how we do it – guided by core values of safety, responsibility,
collaboration and integrity, our more than 7,000 people are
committed to sustainably developing and operating pipeline, power
generation and energy storage facilities across Canada, the United
States and Mexico. TC Energy’s common shares trade on the Toronto
(TSX) and New York (NYSE) stock exchanges under the symbol TRP.
Visit TCEnergy.com and connect with us on social media to learn
more.
FORWARD-LOOKING INFORMATION
This publication contains certain information that is
forward-looking and is subject to important risks and uncertainties
(such statements are usually accompanied by words such as
"anticipate", "expect", "believe", "may", "will", "should",
"estimate", "intend" or other similar words). Forward-looking
statements 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. Readers are cautioned not to place undue reliance on
this forward-looking information, which is given as of the date it
is expressed in this news release, and not to use future-oriented
information or financial outlooks for anything other than their
intended purpose. TC Energy undertakes no obligation to update or
revise any forward-looking information except as required 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 Quarterly Report to
Shareholders dated May 2, 2019 and 2018 Annual Report filed under
TC Energy's profile on SEDAR at www.sedar.com and with the U.S.
Securities and Exchange Commission at www.sec.gov.
Media Enquiries:Matthew John403.920.7859 or
800.608.7859
Investor & Analyst Enquiries:David Moneta /
Duane Alexander403.920.7911 or 800.361.6522
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