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2024 Investor Day – TC Energy Corp.

TC Energy Corp. · Nov 19, 2024 · 63 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 2024 Investor Day – TC Energy Corp. – slide 1
    2024 Investor Day November 19, 2024
  2. 2024 Investor Day – TC Energy Corp. – slide 2
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Land acknowledgement & safety moment Gavin Wylie Vice-President, Investor Relations 2
  3. 2024 Investor Day – TC Energy Corp. – slide 3
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Land acknowledgement & safety moment Gavin Wylie Strategic outlook Franois Poirier Todays Agenda Natural Gas Pipelines Presentations Stanley G. Chapman, III 8:00 9:00 am EST Power…
  4. 2024 Investor Day – TC Energy Corp. – slide 4
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Strategic outlook Franois Poirier President and Chief Executive Officer 5
  5. 2024 Investor Day – TC Energy Corp. – slide 5
    TC Energy Investor Day Key Takeaways: Focused natural gas and power company Opportunities to capture highest-value projects with visibility to the end of the decade Disciplined capital allocation supports above average growth…
  6. 2024 Investor Day – TC Energy Corp. – slide 6
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Solid execution and focused priorities delivering value TRP stock performance year-to-date(6) Maximizing the value of Project execution Enhancing balance sheet our assets through…
  7. 2024 Investor Day – TC Energy Corp. – slide 7
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY The world needs more energy to meet wide-scale electrification Cumulative final energy consumption(1) MMtoe, calculated from actual 2023 levels North American natural gas demand forecast…
  8. 2024 Investor Day – TC Energy Corp. – slide 8
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Our North American footprint connects critical growth markets Unique footprint and portfolio mix 93,000 km 3 countries 6,400 MW(1) Key facts Incumbent positions in key The only…
  9. 2024 Investor Day – TC Energy Corp. – slide 9
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Low risk portfolio highly aligned to long-term fundamentals TC Energy business mix Natural gas exposure(2) 2025E comparable EBITDA(1) (% of 2024E comparable EBITDA) Business risk…
  10. 2024 Investor Day – TC Energy Corp. – slide 10
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Building our high-value project pipeline 2023 2035 TC Energy Strategic pillar Growth Potential Secured capital program(1) Next wave LNG +26 Bcf/d Billions LNG connectivity across Canada,…
  11. 2024 Investor Day – TC Energy Corp. – slide 11
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Disciplined capital allocation that supports optimal returns and repeatable performance Billions Allocate to the highest-value opportunities among: High-grade projects, debt reduction and…
  12. 2024 Investor Day – TC Energy Corp. – slide 12
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Returns on sanctioned projects continue to increase Weighted average unlevered after-tax IRR(1) of projects sanctioned by year Newly announced projects 11.0 % Pulaski Project 10.0 9.5…
  13. 2024 Investor Day – TC Energy Corp. – slide 13
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Sustainable growth of high-quality cash flows Comparable EBITDA(1) Sustainable growth underpinned by Billions rate-regulation and long-term contracts 5% 7% CAGR 11.7 11.9 3% 9.9 10.1…
  14. 2024 Investor Day – TC Energy Corp. – slide 14
    3 I N V E S TO R D AY TC ENERGY 2024 Our 2025 strategic priorities MAXIMIZE THE VALUE OF OUR EXECUTE OUR ENSURE ASSETS THROUGH SAFETY AND SELECTIVE PORTFOLIO OF FINANCIAL STRENGTH OPERATIONAL EXCELLENCE GROWTH PROJECTS AND…
  15. 2024 Investor Day – TC Energy Corp. – slide 15
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Natural Gas Pipelines Stanley G. Chapman, III Executive Vice-President and Chief Operating Officer, Natural Gas Pipelines 16
  16. 2024 Investor Day – TC Energy Corp. – slide 16
    3 I N V E S TO R D AY TC ENERGY 2024 Unique among our peers Extensive and historic operations across North America Key connectivity to supply and demand centers Transport up to 30% of North American LNG feedgas demand 165+…
  17. 2024 Investor Day – TC Energy Corp. – slide 17
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Multiple drivers support a long runway of growth 2023 2035 TC Energy TC Energy Strategic pillar Growth Potential In development(2) North American natural gas demand Next wave LNG +26…
  18. 2024 Investor Day – TC Energy Corp. – slide 18
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Capturing next wave LNG opportunities across the continent Global LNG demand to reach 85+ Bcf/d by 2035 North America LNG demand forecast 9 TC Energy Potential Bcf/d Bcf/d (2023 2035)…
  19. 2024 Investor Day – TC Energy Corp. – slide 19
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Unrivaled footprint supporting growth in power demand Power sector continues to set records, supporting upside over the long term Incremental natural Power generation +65% gas…
  20. 2024 Investor Day – TC Energy Corp. – slide 20
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Data centers seeking the reliability of natural gas Approximately two-thirds of 350+ data centers being built are within 50 miles of our assets 2 + Bcf/d TC Energy North American data…
  21. 2024 Investor Day – TC Energy Corp. – slide 21
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Significant opportunity in coal retirements 225 operating coal plants in the U.S. with over 25% of capacity slated to retire by 2040 Pulaski Project Maysville Project US0.4 billion…
  22. 2024 Investor Day – TC Energy Corp. – slide 22
    3 I N V E S TO R D AY TC ENERGY 2024 Meeting Mexicos natural gas demand growth Robust fundamentals underpin demand growth driven by power sector buildout Mexico natural gas demand forecast Southeast Gateway US3.9 US4.1 billion…
  23. 2024 Investor Day – TC Energy Corp. – slide 23
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Natural gas plays an important role in power sector emissions reductions Managing methane emissions through operational innovation U.S. power sector emissions reductions(1) TC Energy…
  24. 2024 Investor Day – TC Energy Corp. – slide 24
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Pipeline and storage capacity underpin energy reliability for LDCs LDC customers secure capacity to meet peak day demands SE Virginia Energy Storage Project 50+ Bcf/d difference between…
  25. 2024 Investor Day – TC Energy Corp. – slide 25
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Connecting the lowest-cost supply to highest-value markets North American production to increase nearly 40 Bcf/d by 2035 North America production outlook key basins (Bcf/d) 18 23 of…
  26. 2024 Investor Day – TC Energy Corp. – slide 26
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Clear growth visibility Cedar Link Canadian Natural Gas Pipelines 10.1% ROE(1) CER rate-regulated through 2030 Valhalla North & Berland River Coastal GasLink Multi-Year Growth Plan…
  27. 2024 Investor Day – TC Energy Corp. – slide 27
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Unique among our peers Longstanding, extensive operations across North America with visible growth through 2030 and beyond Safety Currently experiencing the best safety performance in the…
  28. 2024 Investor Day – TC Energy Corp. – slide 28
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Power and Energy Solutions Annesley Wallace Executive Vice-President, Strategy and Corporate Development and President, Power and Energy Solutions 29
  29. 2024 Investor Day – TC Energy Corp. – slide 29
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Maximizing the value of our Power and Energy Solutions portfolio Nuclear power generation Natural gas power generation Anchored by investment in Bruce Power Wind power generation Solar…
  30. 2024 Investor Day – TC Energy Corp. – slide 30
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Electricity demand in Ontario to grow 75% by 2050(1) Ontario energy adequacy outlook(2) Nuclear power and storage are critical to meeting Ontarios (without continued availability of…
  31. 2024 Investor Day – TC Energy Corp. – slide 31
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Bruce Power a world class nuclear generation facility Bruce Power site; Ontario, Canada Solid growth Low risk Repeatable performance Non-emitting energy serving 30% of Long-term…
  32. 2024 Investor Day – TC Energy Corp. – slide 32
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY MCR program a repeatable model driving value 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Unit 6 Unit 3 Unit 4 Unit 5 Unit 7 Unit 8 Planned outage…
  33. 2024 Investor Day – TC Energy Corp. – slide 33
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Optimizing existing assets to drive significant growth Bruce Power capacity forecast with Project 2030 Equity income expected to nearly double post-MCR and 700+ MW incremental output…
  34. 2024 Investor Day – TC Energy Corp. – slide 34
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Leverage and enhance capabilities for lower-carbon growth Positioning TC Energy for a lower carbon future by: Building internal capabilities in technologies adjacent to our core Natural…
  35. 2024 Investor Day – TC Energy Corp. – slide 35
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Solid growth, low risk, repeatable performance Anchored by nuclear power 1 billion annual investment in Bruce Power through MCR program and Project 2030 expected to generate solid…
  36. 2024 Investor Day – TC Energy Corp. – slide 36
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Financial outlook Sean ODonnell Executive Vice-President and Chief Financial Officer 37
  37. 2024 Investor Day – TC Energy Corp. – slide 37
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Our core principles Long-term view Adherence to conservative Disciplined capital Financial strength grounded in fundamentals risk preferences allocation and agility 93,000 km of…
  38. 2024 Investor Day – TC Energy Corp. – slide 38
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Organically delivering 2024E 2027E comparable EBITDA CAGR of 5% 7% Comparable EBITDA(1) outlook (excludes Liquids Pipelines) Billions 5% 7% 3-year CAGR (2024 2027) 8% 3-year CAGR…
  39. 2024 Investor Day – TC Energy Corp. – slide 39
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Canadian Natural Gas Pipelines Solid growth underpinned by rate-regulation Net Income Comparable EBITDA(1) 3% 10.1% CAGR Billions Billions 3.7 3.8 ROE(2) CER rate- 3.4 regulated…
  40. 2024 Investor Day – TC Energy Corp. – slide 40
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY U.S. Natural Gas Pipelines Significant opportunities to maximize risk-adjusted returns TARGET BUILD Comparable EBITDA(1) MULTIPLE(2) 5.0 5.2 Billions 4% 5 7x CAGR 4.5 ATIRR(3) 10…
  41. 2024 Investor Day – TC Energy Corp. – slide 41
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Mexico Natural Gas Pipelines Material inflection in 2025 TARGET BUILD Comparable EBITDA(1) MULTIPLE(2) 1.7 1.8 Billions 5 7x ATIRR(3) 25% 10 12% CAGR US3.9 US4.1 billion…
  42. 2024 Investor Day – TC Energy Corp. – slide 42
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Power and Energy Solutions High quality, long-term growth visibility Comparable EBITDA(1) LOW Billions 1.6 1.7 DOUBLE-DIGIT 4% ATIRR(2) AT CAGR BRUCE POWER 1.2 1.1 1.2 1.0…
  43. 2024 Investor Day – TC Energy Corp. – slide 43
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Realizing capital efficiencies and optimization Net sanctioned and pending approval capital expenditures(1) Billions 2024E 2025E 2026E 2027E Reduced 8.0 8.5 8% 7.4 7.7 Optimization of…
  44. 2024 Investor Day – TC Energy Corp. – slide 44
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Disciplined and strategic sanctioned capital spending Net sanctioned capital expenditures(1) Ability to sanction Billions incremental high-value projects Average project size(2) Targeted…
  45. 2024 Investor Day – TC Energy Corp. – slide 45
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Funding our capital program 2025E 2027E Billions Comparable EBITDA(3) Low-risk business model provides Net long-term debt, stability of cash flows hybrids, commercial growth in…
  46. 2024 Investor Day – TC Energy Corp. – slide 46
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Organic deleveraging phase ensures 4.75 times debt-to-EBITDA upper limit Levers to manage to upper Year-end debt-to-EBITDA(1) limit of 4.75x debt-to-EBITDA 5.4x Optimize capital…
  47. 2024 Investor Day – TC Energy Corp. – slide 47
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Low-risk, utility-like business supports leverage Average debt-to-EBITDA(1) vs. credit rating % rate-regulated or take-or-pay vs. average debt-to-EBITDA(1) 100 % rate-regulated or…
  48. 2024 Investor Day – TC Energy Corp. – slide 48
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Solid growth, low risk, repeatable performance 74.80 Long-term sustainable dividend growth: 3% 5% 76.06 6.97(2)/34.87(3) 3.84(4) 65.25 65.26 5.85(2)/29.25(3) 67.83 59.40 24 consecutive…
  49. 2024 Investor Day – TC Energy Corp. – slide 49
    Q&A panel Franois Poirier Sean ODonnell President and Executive Vice-President and Chief Executive Officer Chief Financial Officer Stanley G. Chapman, III Annesley Wallace Executive Vice-President and Executive Vice-President,…
  50. 2024 Investor Day – TC Energy Corp. – slide 50
    TC Energy Investor Day Key Takeaways: Focused natural gas and power company Opportunities to capture highest-value projects with visibility to the end of the decade Disciplined capital allocation supports above average growth…
  51. 2024 Investor Day – TC Energy Corp. – slide 51
    Please scan the QR code to complete the post-event survey. A link to the post-event survey is also available on the home page of the webcast platform
  52. 2024 Investor Day – TC Energy Corp. – slide 52
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Modelling notes Debt portfolio 94% fixed rate; long-term debt with average term of 17 years to final maturity Regulatory and commercial arrangements mitigate impact of rate movements…
  53. 2024 Investor Day – TC Energy Corp. – slide 53
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Debt portfolio notes Portfolio weighted average pre-tax Debt maturities 2025E 2027E Debt portfolio(1) coupon vs. 10-year yields(1) Billions 6.6 94% fixed-rate debt Weighted average rate…
  54. 2024 Investor Day – TC Energy Corp. – slide 54
    TC E N E R G Y 2 0 2 4 I N V E S TO R D AY Appendix Non-GAAP reconciliations Appendix A: Comparable EBITDA Appendix B: Net Income (loss) to comparable earnings Appendix C: Net cash provided by operations to comparable funds…
  55. 2024 Investor Day – TC Energy Corp. – slide 55
    Appendix A Non-GAAP reconciliations comparable EBITDA(1) (Millions of dollars) Year ended December 31 2023 2022 Total segmented earnings (losses) 6,136 3,632 Interest expense (3,263) (2,588) Allowance for funds used during…
  56. 2024 Investor Day – TC Energy Corp. – slide 56
    Appendix B Non-GAAP reconciliations Net income (loss) to comparable earnings Year ended (Millions of dollars, except per share amounts) December 31 2023 2022 Net income (loss) attributable to common shares 2,829 641 Specific items…
  57. 2024 Investor Day – TC Energy Corp. – slide 57
    Appendix C Non-GAAP reconciliations Net cash provided by operations to comparable funds generated from operations(1) (Millions of dollars) Year ended December 31 2023 2022 Net cash provided by operations 7,268 6,375 Increase…
  58. 2024 Investor Day – TC Energy Corp. – slide 58
    Appendix D Non-GAAP reconciliations adjusted debt/adjusted comparable EBITDA (Debt-to-EBITDA) Adjusted debt and adjusted comparable EBITDA are non-GAAP measures used to compute the debt-to-EBITDA multiple. Each of adjusted debt and…
  59. 2024 Investor Day – TC Energy Corp. – slide 59
    Appendix D Non-GAAP reconciliations adjusted debt/adjusted comparable EBITDA(1) (debt-to-EBITDA) (Millions of dollars) Year ended December 31 2023 2022 2021 Reported total debt 63,201 58,300 52,766 Management adjustments: Debt…
  60. 2024 Investor Day – TC Energy Corp. – slide 60
    Appendix E Non-GAAP reconciliations AFFO reconciliation AFFO or adjusted funds generated from operations represents comparable FGFO, adjusted to reflect non-controlling interest distributions before capex contributions and debt…
  61. 2024 Investor Day – TC Energy Corp. – slide 61
    Appendix E Non-GAAP reconciliations AFFO reconciliation (Millions of dollars) Year ended December 31 2023 2022 Net cash provided by operations 7,268 6,375 Increase (decrease) in operating working capital (207) 639 Funds generated…
  62. 2024 Investor Day – TC Energy Corp. – slide 62
    Appendix F Non-GAAP reconciliations segmented earnings and comparable EBITDA Comparable EBITDA(1) outlook (excludes Liquids Pipelines) (Billions of dollars) Segmented earnings Comparable EBITDA(1) Canadian Natural Gas…
  63. 2024 Investor Day – TC Energy Corp. – slide 63
    Appendix G Non-GAAP measures Unlevered after-tax internal rate of return Unlevered after-tax internal rate of return or ATIRR represents the expected compound annual return of a project or investment, and prior to any assumption of debt…

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