How to activate happiness in tough times. People who exercise have 43% fewer days of poor mental health than those who do not exercise. In one study, taking a walk in nature decreased depression in 71% of participants. In a 2003 study,…
2 0 2 1 I N V E S TO R D AY Strategic Overview Franois Poirier President and Chief Executive Officer DECEMBER 1, 2021
Our vision To be the premier energy infrastructure company in North America, now and in the future
All forms of energy supply will be required to meet demand Global Energy Demand Global population growth Macroeconomic Policy and growth regulation Growth drivers Reliability and cost Efficiency competitiveness…
Our long-term strategy is driven by the belief that NATURAL GAS will play a pivotal role in North Americas energy future LIQUIDS will remain an important part of the fuel mix RENEWABLES and FIRMING RESOURCES will grow…
Consistent approach to capital allocation Core principles: Dividend growth is supported by earnings and cash flow per share growth Dividend payout ratios are conservative Balance sheet strength and flexibility is a competitive…
We will intentionally migrate our portfolio composition over time TC Energy today Future investment will alter mix as energy transition unfolds Power and Storage weighting expected to grow 9.4 Natural Gas Pipelines will continue to…
2021 Priorities and outcomes Strong operating and financial performance Comparable EPS up 5 per cent year-to-date; expect to exceed our outlook at the beginning of the year Sanctioned 7 billion of new projects, consistent with our…
Advancing 29 billion capital program Billions Canadian regulated U.S. maintenance regulated 23.4 billion of Natural Gas Pipelines projects 3.2 2022-2026 maintenance US3.3 Canadian Mainline U.S. capacity Reinforced by…
Well positioned to deliver decarbonization solutions beyond our existing capital program TC Energy infrastructure Natural gas and liquids pipelines Natural gas storage Power generation GHG emitters Industrial Oil sands, iron &…
Substantial suite of opportunities to extend our growth horizon Electrification of our pipeline network Using renewables to power a portion of our pipeline network Other in-corridor growth Incremental Capital-light investments and…
Comparable EBITDA* outlook 2021-2026E Billions Additional growth Reflects current portfolio of high-quality, opportunities and enhancements long-life assets and secured projects expected to enter service by 2026 5% 95% from…
Dividend growth outlook Building on twenty-one consecutive years of common share dividend increases Supported by growth in earnings and cash flow per 3 - 5% share as 29 billion of projects enter service Expected future growth per…
Executive Leadership Team FRANOIS POIRIER JOEL HUNTER STANLEY G. CHAPMAN, III DAWN DE LIMA COREY HESSEN President and Executive VP and Executive VP and President, Executive VP, Senior VP and President, Chief Executive Officer Chief…
2022 Priorities Safely deliver the energy people need, every day Improve return on capital invested in existing assets Place 6.5 billion of assets in service on time, on budget Sanction 5+ billion of high-quality growth…
Key takeaway We are confident in our ability to grow Billions Additional growth opportunities and enhancements 5% CAGR We have a sustainable competitive advantage *Comparable EBITDA is a non-GAAP measure. See the…
2 0 2 1 I N V E S TO R D AY Environmental, Social and Governance Patrick Keys Chief Sustainability Officer DECEMBER 1, 2021
MEETING TODAYS ENERGY NEEDS WHILE SAFELY, RELIABLY Our approach to ESG AND ECONOMICALLY FINDING RESPONSIBLE SOLUTIONS FOR OUR ENERGY FUTURE ENVIRONMENTAL SOCIAL GOVERNANCE Committed to our principles of Building vibrant, healthy A…
10 sustainability commitments PROTECTING OUR PLANET SHARED PROSPERITY EMPOWERING PEOPLE Enabling the energy Strengthening Partnering with transition community resilience Indigenous groups Enhancing energy sector Focus on landowner…
Environmental
Our climate 30% Net Zero goals by 2030 by 2050 Reduce GHG emissions intensity Position to achieve zero emissions REDUCING THE INTENSITY OF OUR EMISSIONS from our operations 30% by 2030. from our operations, on a net ACROSS OUR…
Our roadmap to 2050 FIVE FOCUS AREAS
Protecting land and 100% land 1.2 million biodiversity restoration per year LEAVING THE ENVIRONMENT AS WE Targets to fully restore or offset Target to support environmentally FOUND IT disturbances to sensitive habitat focused Community…
Social
Valuing safety at the heart of our culture BELIEVING ZERO IS REAL: ALL HARM, LOSS AND INCIDENTS ARE PREVENTABLE Maintaining dedication Protecting asset Supporting mental to personal and integrity and health and process safety public…
Partnering with Indigenous groups Our Reconciliation Action Plan is TC Energys public commitment to advance reconciliation between Indigenous and non-Indigenous peoples. We recognize the significance of, and need for, reconciliation with…
Strengthening community resilience Sharing economic prosperity Target to increase spending with diverse suppliers in Canada and the U.S. 5% year-over-year through to 2022 o Compared to 1 billion in 2020 Community giving Maintaining…
Supporting Inclusion and Diversity OUR I&D ACTION PLAN Attract, hire and Educate, train Establish Foster and celebrate a retain diverse talent and deepen accountability for culture of belonging understanding inclusion Set…
Governance
Enterprise risk management (ERM) framework END-TO-END PROCESS FOR RISK IDENTIFICATION, ANALYSIS, EVALUATION AND MITIGATION
Strong Board ESG oversight ENVIRONMENTAL SOCIAL GOVERNANCE HSSE committee risk management matrix and voluntary ESG reporting Health, Safety, Sustainability HSSE committee health and safety HR committee compensation, benefits &…
Delivering our shared energy future Sustainability is foundational in everything we do. It is part of our long-standing approach to build a resilient business and deliver shareholder value. We are well-positioned to continue meeting…
Learn more TCENERGY.COM/SUSTAINABILITY 2021 REPORT ON 2021 GHG EMISSIONS RECONCILIATION SUSTAINABILITY ESG DATASHEET REDUCTION PLAN ACTION PLAN
Environmental, Social and Governance Q&A
2 0 2 1 I N V E S TO R D AY Natural Gas Market Fundamentals Tracy Robinson Executive Vice-President and President, Canadian Natural Gas Pipelines and President, Coastal GasLink DECEMBER 1, 2021
Dominant incumbent position High-quality pipeline 93,300 km (57,900 mi) of network cannot be natural gas pipelines replicated 653 Bcf of storage capacity Access to abundant, Assets on top of two of the cost-competitive most prolific,…
Natural gas is critical Canada 2020: 10 Bcf/d 2030: 16 Bcf/d to North Americas energy mix Continental demand growth dominated by electrification and coal- to-gas fuel substitution Increasing LNG connectivity links United…
Canada Prolific low-cost supply 2020: 15 Bcf/d 2030: 22 Bcf/d North American natural gas is competitive in world markets Production growth expected where natural gas has access to growing markets Appalachia WCSB, USGC, Appalachia…
2 0 2 1 I N V E S TO R D AY Canadian Natural Gas Pipelines Tracy Robinson Executive Vice-President and President, Canadian Natural Gas Pipelines and President, Coastal GasLink DECEMBER 1, 2021
Delivering on our 2021 commitments Record Regulated earnings up 16% over 2020, with focus on asset management and financial operational excellence results Throughput Mainline and NGTL flows are up 24% and 13% respectively over this…
Canada Gas connects world-class supply to expanding markets Gas demand has re-balanced following the COVID-19 demand slump LNG exports will give WCSB gas access to growing global markets Strong demand, with total system…
Coastal GasLink Connecting the WCSB to the world Together with the LNG Canada liquefaction facility, CGL represents the first direct path for Canadian gas to reach global markets, as the largest private sector investment in Canadian…
Well-positioned for energy transition Near Medium Long term term term COMPLETE EXPANSIONS & OPTIMIZE ASSETS LEVERAGE NETWORK POSITION FOR THE FUTURE Complete 7.1 billion regulated Continue to support increasing 1 - 2 billion* per…
Sustainability drives our business practices INDIGENOUS Reconciliation Action Plan Over 30 relationship agreements in place, and ongoing negotiations with additional groups RECONCILIATION Collaborating with local communities to…
Investing to position WCSB gas for the future Investment base Net income Billions Billions 2% Canada Gas is investing in unprecedented 3% CAGR Future growth growth to support WCSB competitiveness CAGR Future growth opportunities…
DELIVERING ON OUR STRATEGIC VISION Deliver on sustainability and ESG commitments Canadian Natural Gas Engage and collaborate with stakeholders to establish value-added solutions as we navigate the energy transition Pipelines 2022…
2 0 2 1 I N V E S TO R D AY U.S. Natural Gas Pipelines Stanley G. Chapman, III Executive Vice-President & President, U.S. and Mexico Natural Gas Pipelines DECEMBER 1, 2021
Irreplaceable network with long runway for growth Best-in-class Expert team safely and pipeline network reliably delivers 27% of U.S. average daily demand Strong fundamentals EBITDA and system demand at drive unprecedented record…
2021 Accomplishments Record financial results Positioned to deliver record EBITDA for 5th consecutive year System Throughput continues to grow year over year utilization Safe, reliable performance during winter storms and summer…
Solid operational performance in 2021 % LT firm 2021 vs. 2020 Asset contracted flows Highly contracted firm capacity is evidence of robust demand for our assets Columbia Gas 93% +6.7% Columbia Gulf 100% +2.4% Throughput across all…
Strong fundamentals drive Incremental U.S. natural gas demand growth Bcf/d (incremental from 2020 at 89 Bcf/d) steady cadence of growth Total demand growth 2020 - 2030 2021 In-focus +22% Strong demand as worldwide economic…
Delivering responsible growth Extensive capital program secured Over US7 billion in secured growth, modernization and maintenance projects with near-term in-service dates (2022-2025) Additional US0.5 billion pending FID In-service…
OPTIMIZE MODERNIZE GROW STRENGTH FROM OUR FOOTPRINT The depth and breadth of USNGs network provides a solid platform for shareholder value. We have a multi-pronged strategy to optimize, modernize Technology and system Invest in the…
Multiple platforms for future growth US7B 10-15 Bcf/d 5-7X EBITDA Steady annual cadence of Opportunity set Track record of attractive projects in origination multiples Traditional Transitional UTILITY ORGANIC SUPPLY ACCESS NEXT…
Best in class network with traditional and transitional opportunities to grow USNG Comparable EBITDA* outlook 2021-2026E CAGR reflects USNGs EBITDA from secured Additional capital program; pre-FID and projects in CADBillions…
DELIVERING ON OUR STRATEGIC VISION Deliver on sustainability and ESG commitments U.S. Natural Gas Pipelines Incorporate technologies and practices that enhance ESG profile and reliability 2022 priorities Invest in low-carbon energy…
2 0 2 1 I N V E S TO R D AY Mexico Natural Gas Pipelines Stanley G. Chapman, III Executive Vice-President & President, U.S. and Mexico Natural Gas Pipelines DECEMBER 1, 2021
Strengthening Mexico asset base Transport 25% of Mexicos natural gas underpinned Strong base exclusively by CFE1 business Investment in manufacturing drives economic growth, gas demand and energy infrastructure investment; supports…
2021 Accomplishments Strategic Alliance strives to achieve win-win outcomes Settle CFE Tula and VdR international arbitrations Executed MOU to Obtain full recovery of and on all Tula and VdR invested capital establish Consolidate…
Strong economic and energy fundamentals drive new natural gas infrastructure Business Model Mexico natural gas demand and supply, Bcf/d COVID-19 economic rebound Long-term, take-or-pay Continuing foreign contracts Opportunity…
Enhancing value of franchise US5-6B 2-4 Bcf/d 9-10% IRRs Projects in origination Opportunity set Attractive returns LATERALS AND RELIABILITY, INTERCONNECTS TO DEBOTTLENECKING AND INDUSTRIAL USERS GAS STORAGE PROJECTS .5B .5B-…
Mexico positioned to contribute robust EBITDA growth Mexico Gas Comparable EBITDA* outlook 2021-2026 CADBillions CAGR reflects Mexicos base business EBITDA; well positioned to support growing domestic Additional opportunities and…
DELIVERING ON OUR STRATEGIC VISION Deliver on sustainability and ESG commitments Mexico Enable Mexicos energy transition through greater connectivity to 2022 priorities natural gas Operate todays essential Develop people and…
Natural Gas Pipelines Q&A
2 0 2 1 I N V E S TO R D AY Liquids Pipelines Bevin Wirzba Executive Vice-President, Strategy and Corporate Development and President, Liquids Pipelines DECEMBER 1, 2021
Liquids Pipelines system overview High-quality pipeline network with 4,850 km (3,000 mi) of direct access to worlds largest liquids pipelines refining market Long-term commercial structures Strategic corridor to key supply Access to…
2021 Accomplishments Safely delivered over 300 million barrels to North American market hubs Inspected 100 per cent of the Keystone System with industry-leading inspection technology Commenced construction on the Port Neches Link…
The refining markets we supply are robust Keystone supplies the PADD 3 and PADD 2 markets; Canada 69% of North Americas refining capacity As the pace of energy transition intensifies, PADD 3 refining demand remains stable through…
North American oil supply is resilient over the long term WCSB 2019: 4,505 2030: 5,477 Our assets are favourably located in proximity to 2050: 4,918 production regions that are expected to remain stable and relevant through to…
ESG drives our business practices Power Keystone using renewable energy in partnership with our Power affiliate DECARBONIZE GHG reduction of up to two million metric tonnes annually Collaborate with value chain partners, customers…
Existing footprint offers significant value and opportunities Leveraging footprint to enhance connectivity, expand market access and maximize re-contracting value Pursuing selective growth opportunities including both pipeline and…
Stable, secure and predictable returns with growth from existing footprint Comparable EBITDA* outlook to 2026 4% CAGR Billions anticipated from Our competitive capital-light opportunities advantage Cost-effective capital-light…
DELIVERING ON OUR STRATEGIC VISION Deliver on sustainability and ESG commitments Liquids Pipelines Reduce current level of GHG emissions by 99% by 2025 2022 priorities Build collaborative partnerships within industry, customers and key…
Liquids Pipelines Q&A
2 0 2 1 I N V E S TO R D AY Power and Storage Corey Hessen Senior Vice-President and President, Power and Storage DECEMBER 1, 2021
2020 Commitments are 2021 accomplishments Leveraging low carbon Advancement of process to procure renewable energy and electricity for TC Energys associated environmental credits to decarbonize the U.S. existing operations portion of…
Our strategy is based on three pillars Leverage Internal demand Power & Storage today Seven power plants, approximately 4,200 MW Aggregate Powering the Portfolio of low-cost baseload generation in-corridor energy Underpinned by…
Decarbonizing benefits all stakeholders Initiated RFP process in early 2021 to identify investment opportunities to meet the electricity needs of a portion of our U.S. Keystone pipeline assets with zero-carbon energy Currently…
Innovative, customer-driven products Pioneering a combined wind, solar and 300 MW long-duration pumped hydro portfolio to eliminate renewable generation variability 125 MW Unlike as generated renewable power purchase agreements, TC…
Bruce Power continues to create enduring value TC Energy has invested 2 billion into Bruce Power since 2015, with a further 7 billion planned over the life of the asset, garnering low double digit returns Major Component Replacement…
Ontario Pumped Storage Optimizing the provinces emission-free electricity and powering the future grid 2019 2021 2024 2029 to 2021 to 2024 to onwards 2021 2024 2028 DND decision Environmental Regulatory TC Energy on-site impact…
Strategic partnerships with suppliers, customers and internal partners generate significant value Internal partners Hydrogen Renewables Firming resources Scalable nuclear Value through strategic partnerships Whether its…
Enabling the energy transition Power & Storage will play a vital role in the energy transition, providing zero-carbon growth opportunities, new technologies and markets, and decarbonizing existing legacy assets *Source: Internal…
Steady EBITDA growth outlook over the decade and beyond Billions 14% Bruce Power will continually put MCR and Project 2030 CAGR capital into service over the coming years, all aligned 10% with historical returns in the low double…
DELIVERING ON OUR STRATEGIC VISION Deliver on sustainability and ESG commitments Power and Storage Progress our ESG targets through investment in zero-carbon energy, 2022 priorities regardless of the pace or direction of the energy…
Power and Storage Q&A
2 0 2 1 I N V E S TO R D AY Finance outlook Joel Hunter Executive Vice-President and Chief Financial Officer DECEMBER 1, 2021
Core principles drive compelling value proposition LONG-TERM VIEW Strategic outlook is grounded in fundamentals Core DISCIPLINED APPROACH Adherence to well-established, conservative risk preferences principles CAPITAL ALLOCATION…
2021 Accomplishments Achieved strong 2021 year-to-date comparable EBITDA On pace for record results; comparable EPS through the first nine months five per cent higher than last year Bolstered capital program with plans to sanction 7…
Diversified portfolio of critical energy infrastructure 2021E Comparable EBITDA* 9.4 Billion Over 95 per cent of Comparable EBITDA* from regulated and long-term contracted assets *FactSet consensus estimate. Comparable EBITDA…
Advancing 29 billion capital program 97% of comparable EBITDA generated from Estimated Regulated/ Billions capital cost* contracted regulated assets and/or long-term contracts NGTL System 6.8 CER regulated Canadian Mainline 0.3…
Capital expenditure outlook 2022-2026E Billions Secured growth projects 6.4 Annual maintenance capital 2022-2026 Capacity to spend 5+ billion per year 90% has opportunity to earn a return on and 4.5 of capital through current and…
Funding program outlook 2022-2026E Billions Capital expenditures and dividends largely funded through internally generated cash flow Long-term debt and hybrids mainly to fund scheduled debt maturities Robust liquidity underpinned…
Comparable EBITDA* outlook 2021-2026E Billions Additional growth Reflects current portfolio of high-quality, opportunities and long-life assets and secured projects enhancements expected to enter service by 2026 5% 95% from…
Financial flexibility Debt-to-EBITDA 4.75x Outlook results in debt-to-EBITDA below 4.75x target Provides significant optionality to: Fund future growth Buy back common shares Increase dividends Reduce leverage Top tier credit…
Financial risks and levers INTEREST Debt portfolio 90 per cent fixed rate; average term of 18 years to final maturity RATES Regulatory and commercial arrangements mitigate impact of rate movements Expected normalized income tax rate…
Dividend growth outlook Building on twenty-one consecutive years of common share dividend increases 3 - 5% Supported by growth in earnings and cash flow per Expected future growth share as 29 billion of projects enter service per…
DELIVERING ON OUR STRATEGIC VISION Deliver on sustainability and ESG commitments CFO 2022 priorities Maintain Grow and position Deliver on financial strength for the energy sustainability and flexibility future and ESG commitments…
Loading...
