TC Energy to highlight sustainable long-term growth at Investor Day
November 19 2019 - 5:55AM
News Release -- TC Energy Corporation (TSX, NYSE: TRP) (TC Energy
or the company) will host its annual Investor Day today where it
will provide a financial update and review strategic plans for its
natural gas pipelines, liquids pipelines and power and storage
businesses in Canada, the United States and Mexico.
“Our $100 billion portfolio of high-quality, long-life energy
infrastructure assets are expected to generate record financial
results again in 2019 underpinned by strong market fundamentals,”
said Russ Girling, TC Energy’s president and chief executive
officer. “Looking forward, we continue to advance $30 billion of
commercially secured projects that will expand and extend our asset
footprint across North America.”
As those projects enter service, TC Energy expects comparable
earnings before interest, taxes, depreciation and amortization
(EBITDA) to exceed $10 billion in 2022. This represents an increase
of more than 16 per cent when compared to comparable EBITDA of $8.6
billion in 2018 despite significant asset sales that have
accelerated the strengthening of the company’s balance sheet.
Notably, approximately 95 per cent of comparable EBITDA is expected
to come from regulated assets or long-term contracts. At the same
time, the company continues to methodically advance more than $20
billion of projects under development including Keystone XL and the
Bruce Power life extension program. Success in advancing these and
other organic growth opportunities that are expected to emanate
from TC Energy’s five operating businesses across North America
would add to the company’s growth outlook.
“Based on the confidence we have in our business plans, we are
reaffirming that we expect to grow our common share dividend at an
annual rate of eight to 10 per cent through 2021,” added Girling.
“Our dividend outlook is supported by expected growth in earnings
and cash flow and in line with our historically strong dividend
coverage ratios.”
Beyond 2021, TC Energy expects the common share dividend to grow
at an average annual rate of five to seven per cent. This is
consistent with average annual increases in the dividend since 2000
and is based on the company’s outlook for future organic growth
associated with its extensive North American asset footprint. The
rate of growth could be supplemented periodically by strategic
acquisitions or transformational opportunities.
On November 1, 2019, TC Energy announced that its Board of
Directors declared a quarterly dividend of $0.75 per common share
for the quarter ending December 31, 2019. The quarterly amount
equates to $3.00 per common share on an annualized basis and
represents an 8.7 per cent increase over the amount declared in
2018. TC Energy’s Board of Directors has increased the common share
dividend in each of the last nineteen years, from $0.80 per common
share in 2000 to $3.00 per common share in 2019, resulting in an
average annual increase of seven per cent. The current common share
dividend equates to a dividend yield of approximately 4.4 per cent
based on the closing price of TC Energy’s common shares on the
Toronto Stock Exchange on November 15, 2019.
“With proceeds from recent asset sales expected to total
approximately $6.3 billion, we are well positioned to prudently
fund our $30 billion secured capital program through internally
generated cash flow, the planned sale of an ownership interest in
Coastal GasLink and access to debt capital markets in a manner that
is consistent with maintaining our targeted credit metrics,”
concluded Girling. “As a result, we will no longer issue additional
common shares from treasury under our Dividend Reinvestment Program
commencing with fourth quarter 2019 dividends.”
Today’s investor event will be webcast beginning at 8 a.m. EST
(6 a.m. MST). Interested parties may participate in the webcast
available on TC Energy’s website at https://www.tcenergy.com/2019
investor day event or via the following URL:
http://www.gowebcasting.com/10368.
A copy of the presentation and the webcast, which will be
archived and accessible for replay, will be available on the
website.
TC Energy and its affiliates deliver the energy millions of
people rely on every day to power their lives and fuel industry.
Focused on what we do and how we do it, we are 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 INFORMATIONThis release
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. 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 Quarterly Report to Shareholders
dated October 31, 2019 and the 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.
NON-GAAP MEASURES This news release contains
references to non-GAAP measures, including comparable earnings,
comparable earnings per common share, comparable EBITDA, comparable
distributable cash flow, comparable distributable cash flow per
common share and comparable funds generated from operations, that
do not have any standardized meaning as prescribed by U.S. GAAP and
therefore are unlikely to be comparable to similar measures
presented by other companies. These non-GAAP 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. For more information on non-GAAP measures,
refer to TC Energy's Quarterly Report to Shareholders dated October
31, 2019.
Media Enquiries:Jaimie Harding / Hejdi
Carlsen403.920.7859 or 800.608.7859
Investor & Analyst Enquiries:David Moneta /
Duane Alexander403.920.7911 or 800.361.6522
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