News Release – TC Energy Corporation (TSX, NYSE: TRP) (TC
Energy or the Company) will host its annual Investor Day today.
During the event we will provide an overview of our corporate
strategy and highlight our continued approach to delivering
long-term shareholder value as we prudently manage our extensive
opportunity set ahead. We are reaffirming our long-term comparable
EBITDA growth outlook of six per cent by 2026 and three to five per
cent annual dividend growth rate.
“We have an industry-leading $34 billion of fully sanctioned,
secured capital projects and an unparalleled opportunity-set that
will continue to differentiate TC Energy as a leader in the energy
infrastructure space,” said François Poirier, TC Energy’s President
and Chief Executive Officer. “We are leveraging our extensive North
American footprint to expand and extend the reach of our services
that will also align with the evolving energy mix and needs of our
customers.”
We are introducing our 2023 comparable EBITDA outlook that we
expect will be five to seven per cent higher than 2022. Despite a
challenging market backdrop, our business remains resilient and
continues to produce strong results. Approximately 95 per cent of
our projected comparable EBITDA is under long-term take-or-pay
contracts and/or rate regulation which provide insulation against
rising inflation and interest rates. In addition, approximately 85
per cent of our long-term debt is fixed-rate, with a weighted
average maturity of approximately 20 years and a weighted average
coupon of 4.8 per cent.
TC Energy’s secured capital program is expected to be primarily
funded through a combination of increasing cash flows, incremental
long-term debt and hybrid capacity, and other sources of capital.
We expect that any funding requirements exceeding our targeted
annual capital expenditure range of $5 to $7 billion will be funded
through our flexible $5+ billion divestiture program that is
expected to be executed during 2023. Any potential impact on our
growth trajectory out to 2026 will be determined by the timing and
proceeds of assets monetized, along with the contribution from
projects yet to be sanctioned. However, the additional financial
flexibility created through this process will enhance our strategic
positioning to deliver shareholder value over the medium to long
term. We remain committed to concluding our discounted Dividend
Reinvestment Program with the dividend declarations for the
quarter-ending June 30, 2023.
Coastal GasLink Project updateWith respect to
the Coastal GasLink Project, we continue to face significant cost
pressures in Western Canada relating to labour costs and shortages
of skilled labour, along with contractor underperformance and
disputes. The project has also been impacted by other unexpected
events including drought conditions, and erosion and sediment
control challenges. As a result, we now expect a material increase
in project costs and TC Energy’s corresponding funding
requirements. We are actively pursuing cost mitigants and potential
recoveries from contractors to offset a portion of these costs,
some of which may not be conclusively determined until after
project completion. We expect to provide an updated capital cost
estimate in early-2023 that will incorporate the scope of recent
developments.
The project is now overall 80 per cent complete and we continue
to target mechanical completion by year-end 2023. TC Energy is
committed to the highest level of safety for our workers, along
with the communities and the environment in which we work. This
above all is our primary commitment.
“Although Phase One of Coastal GasLink has been challenged by
cost performance, we do not expect any impact on the sustainability
of our dividend growth rate of three to five per cent or our
ability to accelerate our deleveraging target from 2026,” said
Poirier. “We continue to see long-term value in the Coastal GasLink
Project for the WCSB, our customers, and the communities across the
project route.”
Our Investor Day event is scheduled from 7:55 a.m. to 11:00 a.m.
EST (5:55 a.m. to 9:00 a.m. MST) on November 29, 2022. A live
webcast of the event will be available through the Investors
section of TC Energy’s website at 2022 Investor Day — Toronto
(tcenergy.com) or via the following URL: TC Energy Investor Day
2022 (chime.live) The webcast will also be posted on-line for
replay following the event.
The presentation materials will be available at 2022 Investor
Day — Toronto (tcenergy.com) at 7:00 a.m. EST (5:00 a.m. MST).
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 taking action to make that
energy more sustainable and more secure. We’re innovating and
modernizing to reduce emissions from our business. And, we’re
delivering new energy solutions – from natural gas and renewables
to carbon capture and hydrogen – to help other businesses and
industries decarbonize too. Along the way, we invest in communities
and partner with our neighbours, customers and governments to build
the energy system of the future.
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 TCEnergy.com.
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 may include,
but are not limited to, statements regarding the Corporation’s
projected 2022- 2026 comparable EBITDA, expected cash flows, future
financing options available including divestitures, expected
dividend growth, expected access to and cost of capital and
expected schedules and costs of planned projects. Key assumptions
on which our forward-looking information is based include, but are
not limited to, assumptions about the realization of expected
benefits from divestitures, anticipated construction costs,
schedules and completion dates, access to capital markets, expected
industry, market and economic conditions, inflation rates, foreign
exchange and interest rates. 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 most recent Quarterly
Report to Shareholders and 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 MEASURESThis release refers to
comparable EBITDA and funds generated from operations (FGFO) which
do not have any standardized meaning as prescribed by U.S. GAAP and
therefore may not be comparable to similar measures presented by
other entities. The most directly comparable measures presented in
the financial statements are segmented earning and net cash
provided by operations, respectively. See the reconciliations
below. Refer to the non-GAAP measures section of the MD&A in
our most recent quarterly report for more information which is
incorporated by reference herein. The MD&A can be found on
SEDAR (www.sedar.com) under TC Energy’s profile.
-30-
Media Inquiries:Hejdi Carlsen / Jaimie
Hardingmedia@tcenergy.com 403-920-7859 or 800-608-7859
Investor & Analyst Inquiries:Gavin Wylie /
Hunter Mauinvestor_relations@tcenergy.com403-920-7911 or
800-361-6522
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/983048d8-66cc-453d-9e1e-f668cf66fa43
https://www.globenewswire.com/NewsRoom/AttachmentNg/b2eb85b7-8877-494e-a0be-f105b5b2cf4a
https://www.globenewswire.com/NewsRoom/AttachmentNg/5290de8e-605e-4547-addd-89babf1426a7
https://www.globenewswire.com/NewsRoom/AttachmentNg/adeb0f76-070d-4bd1-8dd1-96d70c28e760
PDF available:
http://ml.globenewswire.com/Resource/Download/37fc006c-68e7-405b-8e8b-b034171bce5e
TC Energy (NYSE:TRP)
Historical Stock Chart
From Jun 2024 to Jul 2024
TC Energy (NYSE:TRP)
Historical Stock Chart
From Jul 2023 to Jul 2024