Forward-looking information and non-GAAP measures Thi s presentation includes certain forward looking information, including but notlimited to,s tatements regarding the Corporations projected 2022- 2026 comparable EBITDA, expected cash…
2 0 2 2 I N V E S TO R D AY Safety and inclusion moment Tina Faraca President, U.S. Natural Gas Pipelines
S A F E T Y A N D T H E I M P E R AT I V E O F I N C L U S I O N Inclusivity helps build trust, so people feel psychologically safe to speak up, ask questions and safely perform their work A diverse and inclusive culture drives…
2 0 2 2 I N V E S TO R D AY Strategic overview Franois Poirier President and Chief Executive Officer
Safety and inclusion moment Tina Faraca Strategic overview Franois Poirier Finance outlook Joel Hunter Todays Break agenda U.S. & Mexico Natural Gas Pipelines Canadian Natural Gas Pipelines Stanley G. Chapman, III Bevin Wirzba…
2 0 2 2 I N V E S TO R D AY Our objectives today Showcase Demonstrate the Provide a sustainable growth resiliency of our clearly defined in cash flows portfolio funding plan 7
TC ENERGY Reaffirming our value proposition Strong performance in 2022 The strength of our utility-like LONG-TERM VIEW DISCIPLINED APPROACH business model Strategic outlook is grounded in Adherence to well-established, fundamentals…
S T R AT E G I C A D V A N TA G E A highly integrated North American footprint One of the largest natural gas networks spanning North America Connecting lowest cost basins to the largest Natural Gas Pipelines Liquids Pipelines…
LONG-TERM VIEW Strategic outlook is grounded in fundamentals Continued demand for natural gas and oil along with low-carbon sources of energy to provide unprecedented growth opportunities. 10
2022-2050 NORTH AMERICAN ENERGY MIX Strategy is grounded in fundamentals 33% 31% 37% 36% 38% 38% 7% 10% 1% 5% 3% 6% 6% 5% 9% 8% 19% 8% Oil Natural gas Coal Nuclear Renewables & hydro Other(1) Resilience tested…
N AT U R AL G A S F U NDA MENTALS Natural gas markets showing strength through 2050 Natural gas production by basin, North America Natural gas demand by sector, North America Bcf/d Bcf/d 150 LNG exports 120 Transportation 90…
N AT U R AL G A S F U NDA MENTALS Highlighting the emissions reduction A LOWER-CARBON FUTURE benefits of coal-to-gas switching Natural gas emissions are approximately half that of coal in power generation Coal vs. natural gas…
L I QU IDS F U NDA MENTALS North American oil production expected to remain robust RESILIENT SUPPLY Canadian production expected to remain resilient Crude oil production, Global oil demand in the long run versus U.S. North America…
P O WE R F U N DAME NTALS North American power demand continues to grow MULTIPLE RESOURCES NEEDED Rising power demand will require an all-of-the-above Power demand, North America Capacity additions & retirements, solution TWh CAGR…
E N E RGY S O LUT IONS F U N DAMENTALS Hydrogen and CCUS to grow in North America LEVERAGING OUR FOOTPRINT Regardless of the pace of adoption for low-carbon energy solutions, TC Energy is North America-wide footprint investing to…
R U N WAY F O R G R O W T H Expect to sanction 5+ billion of growth projects in each of the next several years Today Substantial suite of future opportunities USNG delivery market projects Coal-to-gas switching LNG Bruce Power…
DISCIPLINED APPROACH Capital allocation consistent with risk/return preferences Expected 7-9% IRR Policy support Expected 3-5% dividend growth Market fundamentals Long-term contracted or rate-regulated Risk preferences met…
C A P I TA L A L L O C AT I O N Balances sustainable dividend growth and reinvestment Our job is to prosecute our unmatched opportunity set, while aligning with our financial and human capacity. 19
C A P I TAL R OTAT I O N I S A C O R E C O M P ET ENC Y Expected goal through 2023: Raise 5 billion+ from the sale of discrete non-core assets and/or minority interests Considerations for Objectives capital rotation Proven track…
L O O KI NG B A C K AT T C E N E R G Y S H I S TO RY SUCCESSFUL HISTORY OF CAPITAL ROTATION A decade of deliverability Generated 11 billion in D/EBITDA asset sale proceeds between 6.6x* 4.8x* 4.9x* 2017-2020 D/EBITDA multiple…
TC Energy targets NET ZERO BY 2050 Focused on supporting global climate goals 30% GHG emissions intensity reduction by 2030 Position to achieve net-zero GHG Abatements assessment 2022-2050 emissions from operations by 2050…
Our 2022 2026E strategic priorities Enhance balance sheet Focus on Increase returns on our Decarbonize our business strength and flexibility project execution and assets through revenue and capitalize on operational excellence…
Our team of energy problem solvers FRANOIS POIRIER JOEL HUNTER STANLEY G. CHAPMAN, III BEVIN WIRZBA COREY HESSEN President and Executive VP and Executive VP and Group Executive, U.S. Executive VP, Strategy and Executive VP and…
2 0 2 2 I N V E S TO R D AY Finance outlook Joel Hunter Executive Vice-President and Chief Financial Officer
RESILIENCE Financial strength and flexibility at all points of the economic cycle 26
A UTILITY-LIKE BUSINESS MODEL Resilient value creation through multiple economic cycles Maintaining dividend growth Comparable EBITDA(1) 22 consecutive years of common share dividend increases Performance 2000-2022E with 3-5%…
S TA BL E A N D RE S I LIE NT C A S H F L OWS 2022E Comparable EBITDA(1) mix LONG-TERM Other REGULATED 67% CONTRACTED 28% 5% U.S. Natural Gas Pipelines 39% Canadian Natural Gas Liquids Pipelines 13% Mexico Natural Pipelines 28%…
DISCIPLINED APPROACH Adherence to well-established, conservative risk preferences 2022-2026E outlook provides 6% comparable EBITDA(1) CAGR, deleveraging priorities and the ability to capitalize on future opportunities. 29 (1)…
R E A F F IR MING S T R AT EG IC P R I O R IT IES Our core principles A steadfast and consistent approach to our LONG-TERM VIEW long-term strategy Strategic outlook is grounded in fundamentals DISCIPLINED APPROACH Adherence to…
2 0 2 2 2 0 26E COM PARABLE EB I TDA (1) OUTLOOK Fully sanctioned 6% comparable EBITDA(1) CAGR Billions 14 CAGR 12.5 Reflects current portfolio of high-quality, 12 6% secured projects expected to enter service 9.7 by 2026 10…
2 0 2 2 2 0 26E C A P I TA L O U T L OOK Capital expenditure program delivering long-term value Billions 12 10 9.6 9.5 1.8 7B funded 2.1 8 through capital 0.1 0.7 0.9 6.7 6.7 6.4 rotation 1.1 6 2.3 1.9 1.4 2.9 4 0.8…
2022 2026E OUTLOOK Optimally funding our capital program Billions 60 3 3 3 50 3 Net long-term debt Commercial paper, and hybrids August 2022 equity KXL recoveries and 40 Capital 20 11 11 issuance and DRP other expenditures…
2026E AND BEYOND Building a self-funding growth trajectory Ability to sustainably support a Illustrative example of self-funded model and a annualized figures* 3-5% dividend growth rate 70% comparable 3-5% EBITDA(1 ) conversion…
OPTIMIZING AND MANAGING OUR DEBT PORTFOLIO Prioritizing our balance sheet and deleveraging 35
F I N A N CI A L S T RE N GT H A N D F L E X I BIL IT Y Capital rotation to accelerate deleveraging target from 2026 Top-tier credit ratings TransCanada PipeLines Limited credit ratings and outlook reaffirmed post-August 4, 2022 equity…
BALANCED AND MANAGEABLE 2022 2026 Long-term debt maturity profile Billions Strong and balanced debt 3.0 profile Low sensitivity to interest rate changes 2.0 85% of long-term debt is fixed rate 1.0 Average term of 20 years to…
FURTHER EMBEDDING ESG ACROSS THE BUSINESS Supported by a strong governance foundation with Board and Committee oversight CAPITAL COMPENSATION FINANCING DISCLOSURE ALLOCATION Corporate scorecard 3 billion 5-year Climate and…
2023 OUTLOOK Well positioned to deliver long-term shareholder returns 39
G R O W T H U N D E R P I N N E D B Y S U P E R I O R O P E R AT I O N A L P E R F O R M A N C E 2023E Comparable EBITDA(1) outlook and sensitivities Interest rate: +/- 25 bps Financial charges: 15MM Expected EPS: 0.01/share to…
F I N A N CI A L M O D E L E RS TO O L K I T Financial risks and levers Interest Debt portfolio 85% fixed rate; average term of 20 years to final maturity rates Regulatory and commercial arrangements mitigate impact of rate…
D E L I V E RI NG L O N G- T ERM S H A RE H O L D ER VA L U E TC Energys proven value proposition Dividend growth outlook Impressive track record Significant growth Sustainability a key opportunities supported by strategic…
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2 0 2 2 I N V E S TO R D AY U.S. Natural Gas Pipelines Stanley G. Chapman, III Executive Vice-President & Group Executive U.S. and Mexico Natural Gas Pipelines
U . S . N AT U R AL G A S P I P ELI NES Irreplaceable North American network Strong fundamentals driving opportunity-rich environment Tracking to 6th consecutive year of record comparable EBITDA(1) and US1.8 billion of capital…
OU R EX PANSIVE F OOTP RINT A continental energy company TICKET SOUTH Canadian Natural Gas Pipelines Synergies across geographies and businesses solidify and USNG together provide our role in North Americas energy landscape critical…
U S N G 2 0 2 2 - 2 0 2 6 E C O M P A R A B L E E B I T D A (1) O U T L O O K Best-in-class network with traditional and transitional opportunities to grow Comparable EBITDA(1) growth derived from CBillions secured capital program…
U . S . N AT U R AL G A S F U ND AMENTALS Strong demand supports near and 2022 ENERGY THEMES long-term growth U.S. natural gas demand growth Total demand growth SECURITY 2021 - 2030 Bcf/d (incremental from 2021 at 91 Bcf/d)…
LNG OPPORTUNITIES ANR Strategic alignment with next wave of LNG Ha ynesville Columbia Gulf Increasing LNG feedgas market share - as high as 35% by 2025 Haynesville and Appalachia production are core to meeting Permian B a sin…
S T R AT EG IC P O S IT ION Strong alignment between fundamentals and asset footprint Target-rich environment across multiple platforms LDC energy security Next-wave LNG Supply access Power generation & coal retirements…
U.S. NATURAL GAS PIPELINES Corporate strategy alignment and key takeaways Showcase sustainable Demonstrate the Provide a clearly defined growth in cash flows resiliency of our portfolio funding plan Tracking to record comparable…
2 0 2 2 I N V E S TO R D AY TC Energa Mexico Natural Gas Pipelines Stanley G. Chapman, III Executive Vice-President & Group Executive U.S. and Mexico Natural Gas Pipelines
TC ENERGA U.S. imports Industry-leading position in a to Mexico growing natural gas market 45% 2030 1 Mexico gas 30-year history with US11 billion invested(1) demand Critical infrastructure with exclusive strategic location 2…
M E X I C O 2 0 2 2 - 2 0 2 6 E C O M PA R A B L E E B I T D A (1) O U T L O O K Expecting comparable EBITDA(1) to more than double CBillions 2.0 Secured capital program 2022-2026 1.7 with a build multiple of 7x 8x 1.5 CAGR 23%…
MEXICOS VALUE PROPOSITION Strong alignment between fundamentals and policy 1 ECONOMIC GROWTH AND GROWING NATURAL GAS DEMAND Stable economic outlook post-pandemic 1 Strong macro Growing demand from manufacturing export industries…
SGP MILESTONES SOUTHEAST GATEWAY Applying learnings to Q3 2022 TC and CFE Board FID enhance project execution Secured prime contractors TGNH provides attributable to: operational flexibility and Q4 2022 reliability Sur de Texas…
MEXICO NATURAL GAS PIPELINES Corporate strategy alignment and key takeaways Showcase sustainable Demonstrate the Provide a clearly defined growth in cash flows resiliency of our portfolio funding plan US160 million incremental…
2 0 2 2 I N V E S TO R D AY Canadian Natural Gas Pipelines Bevin Wirzba Executive Vice-President, Strategy and Corporate Development and Group Executive, Canadian Natural Gas Pipelines and Liquids Pipelines
C A N A D IAN N AT U R AL G A S P I P ELI NES Key investment characteristics Utility-like business offers sustainable, long- term, predictable cash flowand earnings at all points of the economic cycle Disciplined growth underpinned…
C A N A D IAN N AT U R AL G A S N E T I N C O ME A N D I N V ES TMENT B A S E O U T L OOK Highly resilient and stable business Net Income Average Investment Base Billions Billions CAGR Every dollar invested earns 1.2 24 1% 22.5 a…
L O N G H I S TO RY O F L O W - RISK P RE D I CTABLE G RO WT H Significant resilience Adaptable business model delivers through following energy all points of the economic cycle disruptions Billions Net Income Ongoing evolution in…
THE BACKBONE OF THE BASIN Significant investment to expand the reach of the WCSB Peak day NGTL System receipts NGTL and Mainline Investment Base NGTL reached a new record high of 14.3 Bcf/d in 2022 Billions We have grown our investment…
O U T LO OK G RO UND ED I N F U N DAMENTA LS Strategic asset footprint West Coast LNG +2.1 Bcf/d Current sanctioned growth capital Resilient regulated business model will provide at least 4.1 Bcf/d of incremental capacity through…
Forecast capital program* C A P I TAL E X P E ND ITURE A P P ROAC H 2022-2026E Disciplined growth and spending (Billions, sanctioned) Over 11 billion in forecast growth, capacity, modernization and 3.7 3.7 maintenance capital…
C O A S TA L G A S L I N K Connecting Western Canadas natural gas to the world Wilde Lake Compressor Facility WCSB is a world-class source of sustainable, secure natural gas Revised agreements strengthen partnership with LNG Canada,…
CANADIAN NATURAL GAS PIPELINES Corporate strategy alignment and key takeaways Showcase sustainable Demonstrate the Provide a clearly defined growth in cash flows resiliency of our portfolio funding plan Utility-like model…
Q&A N AT U R AL G A S P I P ELINES
BREAK W E W I L L R E S U M E S H O R T LY TODAY IS GIVING TUESDAY Visit the TC Energy Community Portal, make a donation to your preferred cause, and get a 3:1 match. Visit tcenergy.benevity.org/community
2 0 2 2 I N V E S TO R D AY Liquids Pipelines Bevin Wirzba Executive Vice-President, Strategy and Corporate Development and Group Executive, Canadian Natural Gas Pipelines and Liquids Pipelines
L I Q U IDS S T R AT EG IC P O S IT ION Leveraging our footprint to connect resilient oil supply to robust markets WCSB oil supply (MMbbl/d) 6 Highly strategic assets providing access 5 to the largest refining markets in the 4…
PARTN ER OF CHOI CE Tailor-made customer solutions Premium Liquids Pipelines value proposition market access Safe and reliable delivery of energy 96% Customer Delivery Shortest transit time experience optionality…
2022 AND BEYOND A year of maximizing capacity and progress Optimizing Keystone System to date Safe and sustainable operations Resulting in increased reliability and unlocking additional capacity Liquids Pipelines System operating…
L I Q U I D S P I P E L I N E S 2 0 2 2 2 0 2 6 E C O M PA R A B L E E B I T D A (1) O U T L O O K Significant free cash flow and option value Billions 2.0 Driven by strong market fundamentals, strategically positioning for the…
LIQUIDS PIPELINES Corporate strategy alignment and key takeaways Showcase sustainable Demonstrate the Provide a clearly defined growth in cash flows resiliency of our portfolio funding plan Recontracting and commercial…
2 0 2 2 I N V E S TO R D AY Power and Energy Solutions Corey Hessen Executive Vice-President and President, Power & Energy Solutions
1c POWER AND ENERGY SOLUTIONS Strong base business growing via 2 3 customer-led opportunities 1a 1b 7 Total existing capacity of 4,300 MW 6 Portfolio of low-cost baseload generation 4 Underpinned by 92% long-term contracts…
POWER AND ENERGY SOLUTIONS Nuclear power generation Solving customers energy Bruce Power transition challenges Runway of customer-driven opportunities Other mature power generation Strategic alignment Wind Solar Leverage vast energy…
POWER AND ENERGY S OLUTIONS 2 0 22-2026E C O M P A R A B L E E B I T D A (1) O U T L O O K Capitalizing on low-carbon opportunities Billions Backlog of unsanctioned capital provides 2.0 incremental growth to our outlook Continuous…
BRUCE POWER A key asset in a low-carbon future Theres no transition that works without nuclear, full stop. - Mark Carney, United Nations Special Envoy for Climate Action and Finance TC Energy has a 48.4% ownership stake in Bruce…
BRUCE POWER Critical to meeting Ontarios growing electricity demand and decarbonization goals ONTARIOS ENERGY LANDSCAPE Energy requirements increase Ontario Energy Adequacy Outlook sharply starting in 2029 due to TWh (without…
BRUCE POWER Extending life and increasing PAST AND FUTURE INVESTMENT capacity without new infrastructure TC Energy has invested 2.3 billion into Bruce Power since 2015 2.3 billion planned to finish Major Component Replacement…
BRUCE POWER STRONG RETURN ON INVESTMENT Continues to create enduring value Capital requirements largely funded through distributions Low double-digit returns, backed by an investment-grade counterparty and a long-term contract…
O N T A R I O P U M P E D S T O R A G E (1) Ontarios biggest battery, storing 2023-2025 Environmental assessment carbon-free electricity process A 1,000 MW reliable, proven technology to complement current supply and satisfy…
VIRTUAL POWER PURCHASE AG REEMENTS ( vP PA) 2021 Progressing power decarbonization for Issued RFIs for wind, solar and internal & external customers battery storage capabilities in U.S. Powering the Keystone Pipeline System with…
VIRTUAL POWER PURCHASE PROJECT DEVELOPER AG REEMENTS ( vP PA) Earning incremental returns Illustrative example through decarbonization of vPPA structure solutions EXTERNAL CUSTOMERS ISO + KEYSTONE PIPELINE *Renewable energy…
24x7 CARBON-FREE POWER PRODUCT 2021 First in Canada, premium Service opportunity announced decarbonization solution Carbon-free power product in Alberta offers a fixed price for a fixed volume of power and all environmental…
HYDROGEN HUB MODEL Capturing opportunities across the hydrogen value chain H2 A comprehensive hydrogen strategy enables us to build upon our power and gas businesses and continue to be the partner of choice H2 H2 feedstocks H2…
CROSSFIELD HYDROGEN HUB (1) 2023-2025 Leverage existing gas storage site for H2 Environmental assessment low-carbon hydrogen production hub process Incumbent position and expertise enables access to markets with high…
A L B E RTA C A RB O N G RI D (1) A world-scale carbon transportation 2021 and sequestration solution ACG partnership announced Collaboration between TC Energy and Pembina Pipeline Safe, reliable, cost-effective…
CUSTOMER-DRIVEN SOLUTIONS Strategic partnerships generate significant value Strong relationships with suppliers, customers and internal partners Strategic partnerships enable opportunities across the value chain Growth opportunities…
POWER AND ENERGY SOLUTIONS Corporate strategy alignment and key takeaways Showcase sustainable Demonstrate the Provide a clearly defined growth in cash flows resiliency of our portfolio funding plan Significant opportunity set…
Q&A Liquids Pipelines and Power & Energy Solutions
Final Q & A CLOSING REMARKS
Appendix A Business segment results GAAP measure M I L L IONS OF DOL L ARS Year ended December 31 2021 Segmented earnings Canadian Natural Gas Pipelines 1,449 U.S. Natural Gas Pipelines 3,071 Mexico Natural Gas Pipelines 557…
Appendix B Net cash provided by operations GAAP measure M I L L IONS OF DOL L ARS Year ended December 31 2021 Net cash provided by operations 6,890 Increase in operating working capital 287 Funds generated from operations 7,177…
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