TC Energy disappointed with Expected Executive Action revoking Keystone XL Presidential Permit
January 20 2021 - 9:20AM
TC Energy Corporation (TSX, NYSE: TRP) (TC Energy or the company)
announced it is disappointed with the expected action to revoke the
existing Presidential Permit for the Keystone XL pipeline. The
decision would overturn an unprecedented, comprehensive regulatory
process that lasted more than a decade and repeatedly concluded the
pipeline would transport much needed energy in an environmentally
responsible way while enhancing North American energy security. The
action would directly lead to the layoff of thousands of union
workers and negatively impact ground-breaking industry commitments
to use new renewable energy as well as historic equity partnerships
with Indigenous communities.
TC Energy will review the decision, assess its implications, and
consider its options. However, as a result of the expected
revocation of the Presidential Permit, advancement of the project
will be suspended. The company will cease capitalizing costs,
including interest during construction, effective January 20, 2021,
being the date of the decision, and will evaluate the carrying
value of its investment in the pipeline, net of project recoveries.
Absent intervening actions, these steps could result in a
substantative, predominantly non-cash after-tax charge to earnings
in first quarter 2021. TC Energy will also modify its previously
announced financing plans as it would no longer expect to issue
hybrid securities or common shares under its dividend reinvestment
plan to partially fund the project.
“Our base business continues to perform very well and, aside
from Keystone XL, we are advancing $25 billion of secured capital
projects along with a robust portfolio of other similarly high
quality opportunities under development,” said François Poirier, TC
Energy’s President and Chief Executive Officer. “These initiatives
are expected to generate growth in earnings and cash flow per share
and support annual dividend increases of eight to ten per cent in
2021 and five to seven per cent thereafter.”
Looking forward, TC Energy is well positioned to capture
significant additional growth opportunities that are expected to
arise as the world both consumes more energy and transitions to a
less carbon intensive energy mix. The company’s network of
irreplaceable critical energy infrastructure will be used
extensively for decades to come and continue to generate
considerable in-corridor growth potential. With a deep
understanding of energy markets, strong stakeholder relationships,
significant financial capacity, and extensive technical expertise
across a broad range of energy sources including natural gas, crude
oil, nuclear, hydro, wind, solar and other emerging technologies,
TC Energy expects to continue to grow its portfolio in a manner
that fully aligns with the company’s long-established risk
preferences, return expectations and organizational
capabilities.
While today’s news is very disappointing, TC Energy is thankful
to its customers, American and Canadian workers, our partners the
Government of Alberta and Natural Law Energy, labor organizations,
industry, the Government of Canada and the countless supporters of
this important energy infrastructure project.
About TC Energy We are a vital part of everyday
life — delivering the energy millions of people rely on to power
their lives in a sustainable way. Thanks to a safe, reliable
network of natural gas and crude oil pipelines, along with power
generation and storage facilities, wherever life happens — we’re
there. Guided by our core values of safety, responsibility,
collaboration and integrity, our more than 7,500 people make a
positive difference in the communities where we operate across
Canada, the U.S. and Mexico.
TC Energy’s common shares trade on the Toronto (TSX) and New
York (NYSE) stock exchanges under the symbol TRP.
FORWARD-LOOKING INFORMATION This news 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 news release 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.
Media Inquiries:Terry Cunha 403-920-7859 or
800-608-7859
Investor & Analyst Inquiries:David Moneta /
Hunter Mau403-920-7911 or 800-361-6522
PDF
available: http://ml.globenewswire.com/Resource/Download/ca1c82cb-084d-4e3a-b608-138eae2c8567
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