Investor Day Key Themes Proven Strategy Low Risk Business Model 90% of EBITDA derived from regulated assets or long-term contracts Three Complementary Businesses Performing Well in 2015 EBITDA and Funds Generated from Operations…
TransCanada Today One of North Americas Largest Natural Gas Pipeline Networks 68,000 km (42,000 mi) of pipeline 368 Bcf of storage capacity 14 Bcf/d or 20% of continental demand Premier Liquids Pipeline System 4,250 km (2,600…
We Have Made Significant Progress Since 2010 20 billion of assets placed into service 40 billion of new commercially secured projects 10 billion of financing completed, net of maturities US2.5 billion of assets dropped down to TC…
Long Track Record of Dividend Growth Dividends Declared per Share Dividend Payout Ratio (Dollars) (Percent) 2.50 125 5% CAGR 2.00 100 1.50 75 Comparable Earnings Per Share 1.00 50 0.50 25 Funds Generated from Operations…
Three Strong Platforms for Future Growth* 2010 2015 47 Billion 66 Billion Liquids Liquids Pipelines Pipelines 18% 28% Natural Natural Gas Gas Pipelines Pipelines 46% Energy 51% 28% Energy 23% Corporate 3% Corporate…
Global Energy Demand Expected to Increase 32% by 2040 6 Global Energy Demand by Fuel (million tonnes of oil equivalent) 5 2040 4 2013 3 2 1 0 Oil Coal Gas Bioenergy Nuclear Hydro Renewables Oil Remains Largest Source…
1000 1500 2000 2500 3000 500 0 2013 Mtoe 2020 2025 2030 2035 North America Supply 2040 2013 2020 2025 Demand E.U. 2030 2035 2040 2013 2020 2025 2030 2035 Latin America 2040 2013 2020…
North American Natural Gas and Power Generation Outlook New natural gas pipelines needed to connect growing supply with traditional and new markets New power generation and transmission needed to meet growing demand and replace aging…
Our Priorities Deliver energy safely and reliably, every day Maximize the value of our base business Complete 13 billion of small to medium-sized projects Advance 35 billion of long-term projects Cultivate a portfolio of…
Our Plans are Expected to Generate Significant Value Billions EBITDA Outlook* 12 10 14% CAGR 48 Billion of 13 Billion of Commercially 8 8% CAGR Incremental Secured Projects Investment 13 Billion of 13 Billion of Small to…
Dividend Growth Expected to Continue Through 2020 Supported by Base Business and Small to Medium-Sized Projects 810% CAGR 4% CAGR '10 '11 '12 '13 '14 '15 '16E '17E '18E '19E '20E Additional Project Success Could Augment…
Key Takeaways Track Record of Delivering Long-Term Shareholder Value 13% average annual return since 2000 Visible Attractive, Growing Strong Growth Portfolio Dividend Financial Position 13 billion through 2018 5.0% yield at…
Our Executive Leadership Team Russ Girling Alex Pourbaix President & Chief Executive Officer Chief Operating Officer Don Marchand Karl Johannson Executive VP, Corporate Development Executive VP and President, and Chief…
Strategic Overview Russ Girling President & Chief Executive Officer
Business Outlook Alex Pourbaix Chief Operating Officer
Our Competitive Advantage Diverse portfolio of critical energy infrastructure assets Talented employees that are expert in their fields Asset footprint that drives attractive organic growth Financial strength and flexibility…
Committed to Stakeholder Engagement and the Environment Long history of working collaboratively with stakeholders Customers, Landowners, Aboriginals, Native Americans, Governments, Regulators and local communities Active throughout…
Our Priorities Deliver energy safely and reliably, every day Maximize the profitability of our base business Complete 13 billion of small to medium-sized projects, on-time and on-budget Advance 35 billion of long-term projects…
Our Progress in 2015 66 billion portfolio of high-quality assets performing well 6 billion of assets currently under construction 2.3 billion of new commercially secured projects Continued to advance large-scale projects Reached LDC…
Financial Highlights Nine Months ended September 30 Comparable Funds Generated Comparable Dividends EBITDA from Operations Earnings per Share Declared per Share (Millions) (Millions) (Dollars) (Dollars) 10% increase 9% increase 8%…
Portfolio of High-Quality Assets 2015E EBITDA 5.8 Billion Energy Energy (other) 7% Canadian (contracted) Gas 12% Pipelines Liquids (regulated) Pipelines 40% US/Mexico (contracted) Gas 22% Pipelines (regulated/…
35 Billion of Commercially Secured Long-Term Projects* Includes four transformational projects Energy East (12 billion) and related Eastern Mainline Expansion (2.0 billion) Keystone XL (US8 billion) Prince Rupert Gas Transmission…
Strong Platform for Future Growth Significant opportunities in our core businesses and geographies To connect growing supply to market Replace aging infrastructure as we shift to a less carbon-intensive energy mix Our…
Corporate Restructuring Operating model shift to stronger business unit orientation Business units given more decision making authority and direct control over costs Aimed at reducing costs and maximizing the effectiveness of…
Small to Medium-Sized Projects Drive Significant Growth EBITDA Outlook* 2015E 2018E Augmented by: Billions Capacity available to invest 8 in new growth opportunities Operating efficiencies 7 Ironwood Napanee Liquids U.S.…
Business Outlook Alex Pourbaix Chief Operating Officer
Natural Gas Pipelines Karl Johannson President, Natural Gas Pipelines
Our Base Business is Highly Predictable On track for record performance in 2015 Well-positioned asset portfolio NGTL System; Canadian Mainline; U.S. Pipes; Mexico Secure cash flow streams Regulated, cost-of-service, take-or-pay…
Our Natural Gas Pipelines Strategy Maintain pre-eminent position in WCSB for production and market connections Growing Natural Gas Supply and Demand Provides Opportunity Pursue oil sands and West Coast LNG markets Seek optimal…
NGTL Systems Unparalleled Position Primary transporter of WCSB supply with NIT hub providing optionality & liquidity Averaging 11 Bcf/d in 2015 year-to-date; peak intra-basin demand of 6.5 Bcf/d Significant new firm contracts Key…
NGTL Growth to Continue Through 2018 2015-17 Facilities - 4.9 B 2018 Expansion Facilities - 0.6 B 5.5 billion of new investments Expected in-service between 2015 and 2018 Includes 1.7 billion North Montney pipeline Excludes 1.9…
Canadian Mainline Critically Important Infrastructure Western Leg Eastern Triangle Total 2014 Investment Base 3.1 B 2.6 B 5.7 B Delta -2.1 +1.3 -0.8 2020 Investment Base 1.0 B 3.9 B 4.9 B NEB approval of LDC Settlement creates…
Mainline Growth through Expansion within Eastern Triangle 0.4 billion of new facility expansion projects required as part of LDC Settlement Provides increased access to growing supply of U.S. shale gas Expected in-service dates…
U.S. Gas Pipelines Producing Strong Results Majority of portfolio highly contracted over the long-term Positioned in key geographic areas with access to multiple supply basins and large market centres Strong results in 2015…
TC PipeLines, LP (NYSE: TCP) Disciplined Growth Continues US5.0 billion enterprise value 7.3% yield as at November 12, 2015 Solid financial position with interest in six interstate natural gas pipelines Long track record of…
Mexico Solid Position and Growing Potential CFE Pipeline Projects 1 Tula Villa de Reyes Villa de Reyes Aguascalientes- 2 Guadalajara 3 La Laguna - Aguascalientes 4 Nueces - Brownsville 5 Sur de Texas Awarded US500 million…
Positioned to Benefit from West Coast LNG Two significant projects underpinned by long-term contracts 5 billion Prince Rupert Gas Transmission (PRGT) project 4.8 billion Coastal GasLink project In June 2015, Pacific NorthWest LNG…
Natural Gas Pipelines - 2018 EBITDA Outlook* 2018 EBITDA Growth Driven by 8 Billion of Near-Term Projects Billions 5 9% CAGR 4 3 30% 2 1 0 2015E 2018E * Includes existing assets, non-controlling interests in U.S.…
Key Takeaways Significant value of current asset footprint Assets well positioned to deal with changing gas flow dynamics from growth in shale gas MLP strategy advancing a cost effective / strategic financing vehicle Well…
Natural Gas Pipelines Karl Johannson President, Natural Gas Pipelines
Liquids Pipelines Paul Miller President, Liquids Pipelines
Liquids Pipelines Strategy Domestic Other Imports Canada [2014 total refinery demand in 000s of barrels per day] Leverage existing infrastructure Eastern Canada [690] 21% Connect growing WCSB 79% and U.S. shale oil supply…
Keystone - A Premier Crude Oil Pipeline System Critical crude oil system that transports 20% of Western Canadian exports to key U.S. refinery markets 545,000 bbl/d of long-haul, take or pay contracts 15-year average remaining…
Extending Keystone Systems U.S. Gulf Coast Market Reach U.S. Gulf Coast is largest refining centre in North America (8 Mbbl/d of capacity) Extending systems reach to over 4.5 Mbbl/d of regional Gulf Coast refinery centres: Port…
Northern Courier - Visible Liquids Pipeline Growth 1 billion capital investment 25-year contract with Fort Hills Partnership Transports bitumen and diluent between the Fort Hills mine site and Suncors terminal Construction 30%…
Grand Rapids Pipeline Bringing Supply to Market 3 billion, 50/50 joint venture investment with Brion Energy, a subsidiary of PetroChina Long-term contract with Brion Energy Transports crude oil and diluent 20 and 36 pipelines…
Liquids Pipelines - 2018 EBITDA Outlook Keystone System produces stable and predictable results 2018 EBITDA growth driven by 2.4 billion of secured projects including Houston Lateral, Northern Courier and Phase I of Grand Rapids…
Keystone XL Maintaining a Valuable Option US8 billion investment; US2.4 billion invested to date and US0.4 billion of capitalized interest recorded Reviewing options following Department of State decision Expected to generate…
Energy East Critical to Reach Eastern Refineries and Tidewater 12+ billion investment 1.1 million bbl/d of capacity with approximately 1 million bbl/d of Atlantic Canada long-term, take-or-pay contracts 415 kbbl/d Qubec Serves…
Other Liquids Growth Opportunities Further regional expansions Alberta, Mid-continent and U.S. Gulf Coast Geographic diversification Greenfield, brownfield and acquisition initiatives Value chain expansions Marketing group Terminal…
Key Takeaways Keystone System generates stable and predictable earnings and cash flow 2.4 billion of new projects in-service by 2017 Maintaining options in a challenging environment Disciplined capital allocation Large-scale…
Liquids Pipelines Paul Miller President, Liquids Pipelines
Energy Bill Taylor President, Energy
Diversity of Base Business Delivers Stability Proven independent power producer Builder of gas-fired, wind, solar power assets Expertise and experience in a variety of markets Contracted power generation Stable base of 5,100 MW…
Proven Track Record of Success Millions 1,600 EBITDA Diverse asset portfolio delivering 1,400 a stable range of results through various market conditions 1,200 Underpinned by substantial 1,000 portfolio of long-term contracted 800…
Our Energy Strategy Maximize and Grow our Diverse Maximize Value of Existing Assets Portfolio in the Midst of a Transition to a Lower Carbon Footprint Organic Growth of TWh Existing Footprint North American Power Production…
Ironwood Acquisition Extending into Large, Liquid Market 778 MW natural gas-fired power generation facility PJM is the largest and most liquid energy market in North America Access to competitively priced natural gas from…
Napanee Generating Station Construction on Time, on Budget 1.0 billion, 900 MW combined-cycle gas-fired plant 20-year PPA with the Ontario IESO Construction commenced in January 2015 In-service Q4 2017 or Q1 2018
Bruce Power Refurbishment Opportunity 6,200 MW facility capable of generating 30% of Ontarios power needs Achieved top nuclear operator status and performed well in 2015 Ontario Government committed to nuclear refurbishments as…
Alberta Power Market - Near-term Challenges Alberta Power Pool Price /MWh Daily Average Pool Price Quarterly Average Pool Price Alberta market well supplied 400 in near-term 350 Recent capacity additions ( 900 MW) 300 Soft demand…
Alberta Market - Evolution Longer Term Alberta governments election platform on climate action Phase out coal Expand green power sources Energy efficiency Albertas future is one of less coal and more renewables and gas-fired…
Future Growth Opportunities Bruce Power refurbishment Natural gas-fired generation Renewables: wind, solar and hydro Mexico power Organic growth off existing footprint Repowering opportunities Opportunistic and disciplined…
Energy - 2018 EBITDA Outlook* 2018 EBITDA Growth Driven by Napanee and Ironwood Billions 2 6% CAGR 1 0 2015E 2018E * Includes existing assets and 1.7 billion of commercially secured power projects and acquisitions…
Key Takeaways Diverse business that delivers a stable range of earnings New assets in 2016 (Ironwood) and 2018 (Napanee) Bruce refurbishment opportunity moving in positive direction Well positioned to capture growth…
Energy Bill Taylor President, Energy
Finance Don Marchand EVP, Corporate Development and Chief Financial Officer
Financial Strategy Invest in low-risk assets that generate predictable and sustainable growth in earnings, cash flow and dividends Finance long-term assets with long-term capital Maintain financial strength and flexibility Value A…
Where Are We Today Base business performing well; cost management initiative underway Funding for 2015 complete and has commenced for 2016 A grade credit ratings with stable outlook Capital needs for near-term growth projects are…
Risks are Known and Contained Volumetric Spot movements on southern portion of Keystone System and on Great Lakes Availability at Bruce Power Commodity Alberta and Northeast U.S. Power; unregulated natural gas storage Mitigated by…
2015 Financing Program Complete Begun Prefunding 2016 Billions 10 Over 6 billion raised on attractive 9 terms through an array of funding 8 products Long 7 Term Debt US2.5 billion of long-term debt in 6 Debt Retired U.S.…
2016-2018 Capital Expenditure Outlook Billions 8 Approximately 14 billion to be invested 7 over the next three years related to: Near-term growth portfolio including 6 Ironwood acquisition 5 Maintenance capital 4 Modest…
Funding Program for Near-Term Growth Portfolio Billions 16 Senior Debt, Preferred Shares and 2016 2018 Outlook Hybrid Securities 14 Growth projects and maintenance capital largely funded with: 12 TC PipeLines, LP Internally…
Financial Flexibility to Refinance Maturities and Fund Growth Debt Maturities Financial Flexibility (2016-18) Predictable and growing cash flow Billions 2 6 billion committed and undrawn credit lines US CAD Well supported commercial…
EBITDA and Distributable Cash Flow (DCF) Through 2018 Comparable Comparable EBITDA Outlook* DCF Outlook* (Billions) (Billions) 8% CAGR 7% CAGR DCF defined as: Funds Generated from Operations 8 less: 7 Energy Preferred share…
Stability and Longevity of Core Asset Base + 13 Billion of Visible Growth with Upside 10 EBITDA (Billions) 9 8 7 6 Generated by predictable 5 cost of service and long-term contracted 4 cash flow streams 3 supported by: 2…
Committed to 8-10% Annual Dividend Growth Through 2020 Dividends Per Share Dividend Coverage 8%-10% (Based on DCF per share) CAGR 2.2x 2.2x 2.0-2.2x Supported by: High-quality asset base generating predictable and long-life cash…
Disciplined Capital Allocation Sustainable dividend growth Significant opportunities in our core businesses and geographies, including large-scale projects Financial strength to execute at any point of the economic cycle Will…
Key Takeaways Resilient asset portfolio producing robust internally generated cash flow with visibility well beyond the end of the decade Manageable capital needs for near-term growth portfolio with support of A grade credit…
Finance Don Marchand EVP, Corporate Development and Chief Financial Officer
Closing Remarks Russ Girling President & Chief Executive Officer
A Leading North American Energy Infrastructure Company
Relative Valuation EV / EBITDA Price / Earnings Distributable Cash Flow Distributable Cash Multiple* Multiple* Dividend Coverage* Flow Yield* Peer Average 14.2 Peer Average 25.1 Peer Average 1.3 Peer Average 7.6% 18 35 2.5 12% 16…
TransCanada Dividend Yield vs. 10-Year GOC Bond Yield 6% 5.06% 5% 4.21% TransCanada 4% 110 bps 3% 3.11% 336 bps 2% Gov't of Canada 1% 1.70% 0% Dec/10 Dec/11 Dec/12 Dec/13 Dec/14 Attractive Yield Relative to the…
Long Track Record of Dividend Growth Expected to Continue Dividend Outlook 2000 2020E 810% CAGR 7% CAGR '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16E '17E '18E '19E '20E Supported by Growth in…
Loading...
