Skip to main content Investor Day 2013 - Toronto – Transcanada Corp. Investor Presentation | Shale Experts
Loading...
Pm

Investor Day 2013 - Toronto – Transcanada Corp.

Transcanada Corp. · Nov 19, 2013 · 87 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. Investor Day 2013 - Toronto – Transcanada Corp. – slide 1
    TransCanada Investor Day November 19, 2013
  2. Investor Day 2013 - Toronto – Transcanada Corp. – slide 2
    Strategic Overview Russ Girling President & Chief Executive Officer
  3. Investor Day 2013 - Toronto – Transcanada Corp. – slide 3
    Our Vision TransCanada will be the leading energy infrastructure company in North America... With a strong focus on pipeline and power generation opportunities Located in regions where we have or can develop significant…
  4. Investor Day 2013 - Toronto – Transcanada Corp. – slide 4
    Our Value Proposition Track Record of Delivering Shareholder Value 15% average annual return since 2000 Visible Attractive Strong Growth Dividend Financial Position 38 billion of 3.9% yield Capacity to fund growth secured…
  5. Investor Day 2013 - Toronto – Transcanada Corp. – slide 5
    TransCanada Today One of North Americas Largest Natural Gas Pipeline Networks 68,500 km (42,500 mi) of pipeline 14 Bcf/d or 20% of demand Third Largest Natural Gas Storage Operator 406 Bcf of capacity Largest Private Sector…
  6. Investor Day 2013 - Toronto – Transcanada Corp. – slide 6
    Our Executive Management Team Russ Girling President & Chief Executive Officer Don Marchand Alex Pourbaix Dennis McConaghy Karl Johannson Wendy Hanrahan Greg Lohnes Sean McMaster EVP & President, EVP President, EVP EVP EVP…
  7. Investor Day 2013 - Toronto – Transcanada Corp. – slide 7
    Our Progress Over The Last Year 3.5 billion of projects completed including Bruce refurbishment US2.6 billion Gulf Coast Project nearing completion US5.4+ billion Keystone XL Project continues to advance 19 billion of new…
  8. Investor Day 2013 - Toronto – Transcanada Corp. – slide 8
    Financial Highlights Nine Months ended September 30 Earnings per Share Funds Generated from Operations (Comparable) (Millions) 15% Increase 18% Increase 2,917 1.66 2,466 1.44 2012 2013 2012 2013
  9. Investor Day 2013 - Toronto – Transcanada Corp. – slide 9
    Our Priorities Deliver energy safely and reliably, everyday Advance 38 billion of projects through permitting and construction phases Continue to invest in low-risk growth opportunities Maintain financial strength and flexibility
  10. Investor Day 2013 - Toronto – Transcanada Corp. – slide 10
    Our Competitive Advantage World-class builder and operator of large scale energy infrastructure Strong culture of safety and reliability Experienced and talented employees and contractors Leader in the development of new…
  11. Investor Day 2013 - Toronto – Transcanada Corp. – slide 11
    Canada and U.S. Safety Performance Employee Contractor Q3 YTD 2012 Q3 YTD 2013 Top Quartile of Industry Benchmark 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Recordable Lost Time Vehicle Recordable Lost Time Vehicle Incidents…
  12. Investor Day 2013 - Toronto – Transcanada Corp. – slide 12
    38 Billion Portfolio of Commercially Secured Projects Capital Expected Project Cost* In-Service Date* Gulf Coast Project 2.6 2013-2014 Keystone Hardisty Terminal 0.3 2015 Heartland & TC Terminals 0.9 2015 Keystone XL and…
  13. Investor Day 2013 - Toronto – Transcanada Corp. – slide 13
    Advancing Our Capital Program Over the Next Year File Billions Regulatory Application 12 Seek 11 Regulatory Approvals in 10 advance Advance of FID 9 construction on 7.5 billion 8 of assets Coastal 7 Napanee Secure Energy…
  14. Investor Day 2013 - Toronto – Transcanada Corp. – slide 14
    Realizing Our Vision 2020 Asset Outlook* Natural Gas Pipeline Network 68,500 km (42,500 mi) of pipeline 406 Bcf of storage capacity Oil Pipeline Network 11,400 km (7,000 mi) of pipeline 2.5 million bbl/d of long-haul capacity…
  15. Investor Day 2013 - Toronto – Transcanada Corp. – slide 15
    Realizing Our Vision 2020 EBITDA Outlook* EBITDA expected to approx. 9.5 billion by 2020 More than double the 4.2 billion in 2012 Increase driven by 38 billion of commercially secured projects Approx. 95% expected to come from…
  16. Investor Day 2013 - Toronto – Transcanada Corp. – slide 16
    Dividends Per Common Share Track Record of Dividend Growth 1.84 7% CAGR 0.80 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13
  17. Investor Day 2013 - Toronto – Transcanada Corp. – slide 17
    Changing Energy Landscape to Drive Additional Growth Changing energy landscape is creating significant growth opportunities Abundant natural gas supply Growing oil supply Shift to a less carbon-intensive energy mix Responsible…
  18. Investor Day 2013 - Toronto – Transcanada Corp. – slide 18
    Key Takeaways Proven track record of success 38 billion of commercially secured projects under development Changing energy landscape to drive additional growth in core businesses Solid financial position Well positioned to grow…
  19. Investor Day 2013 - Toronto – Transcanada Corp. – slide 19
    Strategic Overview Russ Girling President & Chief Executive Officer
  20. Investor Day 2013 - Toronto – Transcanada Corp. – slide 20
    Oil Pipelines Alex Pourbaix President, Energy & Oil Pipelines
  21. Investor Day 2013 - Toronto – Transcanada Corp. – slide 21
    Oil Pipelines Strategy Connect growing WCSB supply to key refining markets Capture Alberta regional oil infrastructure opportunities Connect growing U.S. shale oil to market Leverage existing natural gas pipeline footprint…
  22. Investor Day 2013 - Toronto – Transcanada Corp. – slide 22
    WCSB Pipeline Takeaway Capacity vs. CAPP Production Forecast Million bbl/d 7 6 Western Canada Oil Supply 5 Energy East 4 Energy East Keystone XL Other Capacity Additions Keystone XL 3 Keystone Keystone 2 Other Existing…
  23. Investor Day 2013 - Toronto – Transcanada Corp. – slide 23
    Keystone: A Premier Oil Pipeline System 3,500 km (2,150 mi) crude oil pipeline serving Mid-West PADD II market 590,000 bbl/d of capacity; 530,000 bbl/d or 90% contracted for an average of 18 years 700 million of EBITDA annually…
  24. Investor Day 2013 - Toronto – Transcanada Corp. – slide 24
    Key Accomplishments in the Past Year Gulf Coast Project nearing completion Keystone XL continues to advance 12 billion Energy East Project secured commercial support 900 million of new intra-Alberta investment announced…
  25. Investor Day 2013 - Toronto – Transcanada Corp. – slide 25
    Gulf Coast Project US2.6 billion; US2.0 billion invested to date Cushing, OK to Port Arthur and Houston, TX Capacity of up to 700,000 bbl/d In-service late 2013; Houston lateral in 2014
  26. Investor Day 2013 - Toronto – Transcanada Corp. – slide 26
    Keystone XL 830,000 bbl/d of capacity More than 500,000 bbl/d contracted for average of 18 years Governor Heineman approved pipeline re-route in Nebraska on Jan 22, 2013 Department of State closed comment period on Draft…
  27. Investor Day 2013 - Toronto – Transcanada Corp. – slide 27
    Energy East Project Qubec Atlantic Canada 400 kbbl/d 415 kbbl/d U.S. PADD I 1,200 kbbl/d Involves conversion of 3,000 km (1,860 mi) of the Canadian Mainline from natural gas to crude oil service and the construction of…
  28. Investor Day 2013 - Toronto – Transcanada Corp. – slide 28
    Energy East Creates Economic Stimulus Across Canada BC AB SK MB ON QC NB 0.6 7.9 2.6 1.8 13.0 6.4 2.8 Gross Domestic Product Creation Billions 35 billion of GDP creation; 10 billion during construction and 25 billion during…
  29. Investor Day 2013 - Toronto – Transcanada Corp. – slide 29
    Alberta Regional Oil Pipelines Bringing Supply to Market 3.4 billion of secured projects 1.5 billion Grand Rapids Project 900 million Heartland Pipeline and TC Terminals Projects 660 million Northern Courier Project 275 million…
  30. Investor Day 2013 - Toronto – Transcanada Corp. – slide 30
    Realizing Our Vision Oil Pipeline Asset Outlook* Approx. 30 billion of assets backed by long-term contracts 11,400 km (7,000 mi) of pipeline 2.5 million bbl/d of long-haul capacity 29 million barrels of storage 2 marine…
  31. Investor Day 2013 - Toronto – Transcanada Corp. – slide 31
    Realizing Our Vision Oil Pipeline EBITDA Outlook* EBITDA expected to approx. 4 billion by 2020, up from approx. 700 million in 2012 Increase driven by 23 billion of secured projects including Keystone XL and Energy East Would…
  32. Investor Day 2013 - Toronto – Transcanada Corp. – slide 32
    Key Takeaways Developing a pre-eminent position in the crude oil transportation business 23 billion of commercially secured projects; 12.9 billion announced in the past year Significant platform for future growth
  33. Investor Day 2013 - Toronto – Transcanada Corp. – slide 33
    Oil Pipelines Alex Pourbaix President, Energy & Oil Pipelines
  34. Investor Day 2013 - Toronto – Transcanada Corp. – slide 34
    Natural Gas Pipelines Karl Johannson President, Natural Gas Pipelines
  35. Investor Day 2013 - Toronto – Transcanada Corp. – slide 35
    Natural Gas Pipelines Strategy Maintain pre-eminent position in Alberta for production and market connections Growing natural gas supply and demand provides opportunity Pursue oil sands and Enhance West Coast LNG markets…
  36. Investor Day 2013 - Toronto – Transcanada Corp. – slide 36
    Natural Gas Pipelines Today Large Network of Essential Infrastructure Regulated assets 68,500 km (42,500 mi) 250 Bcf of storage 20% of continental demand 60 years of safe, reliable operations Competitive Position Broad-based…
  37. Investor Day 2013 - Toronto – Transcanada Corp. – slide 37
    Our Progress over the Last Year Canadian Mainline NEB decision received and new rates implemented July 1 Additional 1.3 Bcf/d of firm service contracted at Empress Reached a settlement with LDCs in Ontario and Qubec Advanced work on…
  38. Investor Day 2013 - Toronto – Transcanada Corp. – slide 38
    Our Priorities Enhance competitiveness of regulated assets Mainline LDC Settlement approval U.S. Pipelines restructuring Adapt to changing gas flow dynamics Connect to new supplies and markets Advance existing projects through…
  39. Investor Day 2013 - Toronto – Transcanada Corp. – slide 39
    Canadian Mainline Significant additional annual contracts secured since implementation of NEB tolls decision Expect to recover costs for 2013 and 2014, including ROE of 11.5% on 40% common equity Reached a settlement, subject to…
  40. Investor Day 2013 - Toronto – Transcanada Corp. – slide 40
    NGTL System Transports approximately 10 Bcf/d or 75% of WCSB supply Provides essentially all of the gas to growing Alberta oil sands region Plays a key role in linking WCSB supply to proposed West Coast LNG Projects NIT hub…
  41. Investor Day 2013 - Toronto – Transcanada Corp. – slide 41
    Coastal GasLink Pipeline Project 4 billion investment underpinned by long-term take-or-pay contract To serve LNG Canada facility proposed by Shell, Korea Gas, Mitsubishi and PetroChina Solid international partners with strong…
  42. Investor Day 2013 - Toronto – Transcanada Corp. – slide 42
    Prince Rupert Gas Transmission Project 5 billion investment underpinned by long-term take-or-pay contract To serve Pacific Northwest LNG facility proposed by Progress Energy/Petronas Petronas is one of the worlds leading LNG…
  43. Investor Day 2013 - Toronto – Transcanada Corp. – slide 43
    U.S. Natural Gas Pipelines Revenues have declined on ANR and Great Lakes due to changing market dynamics Actively responding to the market Great Lakes settlement provides immediate rate relief Connecting Marcellus/Utica supply…
  44. Investor Day 2013 - Toronto – Transcanada Corp. – slide 44
    TC PipeLines, LP (NYSE: TCP) US4.5 billion enterprise value 6.4% yield as at October 31, 2013 Track record of disciplined growth Recently acquired additional 45% interests in GTN and Bison for US1.05 billion Well positioned for…
  45. Investor Day 2013 - Toronto – Transcanada Corp. – slide 45
    Mexico Natural Gas Pipeline Assets US2.5 billion of operating pipelines and projects Secured by 25-year contracts with CFE US0.6 billion invested US1.9 billion of projects Future opportunities to expand the gas network Strong…
  46. Investor Day 2013 - Toronto – Transcanada Corp. – slide 46
    Realizing Our Vision Natural Gas 2020 Asset Outlook* 2012A 2020E 23 Billion 33 Billion NGTL System Canadian Mainline U.S. Pipelines Mexico West Coast LNG Measured growth results in substantially diversified asset…
  47. Investor Day 2013 - Toronto – Transcanada Corp. – slide 47
    Realizing Our Vision Natural Gas 2020 EBITDA Outlook* 23% 10% 4% 19% 30% 26% 29% 37% 22% NGTL System Canadian Mainline U.S. Pipelines Mexico West Coast LNG EBITDA expected to grow by almost 60% by 2020 * Includes…
  48. Investor Day 2013 - Toronto – Transcanada Corp. – slide 48
    Key Takeaways Large network of essential infrastructure Commercial progress Significant additional firm service capacity contracted on Canadian Mainline following implementation of new pricing for tolls Reached agreement on a…
  49. Investor Day 2013 - Toronto – Transcanada Corp. – slide 49
    Natural Gas Pipelines Karl Johannson President, Natural Gas Pipelines
  50. Investor Day 2013 - Toronto – Transcanada Corp. – slide 50
    Energy Alex Pourbaix President, Energy & Oil Pipelines
  51. Investor Day 2013 - Toronto – Transcanada Corp. – slide 51
    Energy Strategy Power demand growth to Capture Opportunities in Alberta from Growing Power be met with gas-fired and Demand and Coal renewable generation Retirements Bruce Re-Powering TWh North American Power Demand…
  52. Investor Day 2013 - Toronto – Transcanada Corp. – slide 52
    Energy Asset Portfolio Today 20 plants, 10,800 MW Diversified portfolio includes: Long-term contracted assets with stable, predictable earnings and cash flow Low-cost, base-load generation Concentrated in core regions 156 Bcf…
  53. Investor Day 2013 - Toronto – Transcanada Corp. – slide 53
    Key Accomplishments in the Past Year Bruce Power returned to an eight unit site Acquired 3 of 9 Ontario Solar facilities 26 MW combined Finalized Napanee PPA Sundance A Units 1 and 2 returned to service Acquired remaining 40%…
  54. Investor Day 2013 - Toronto – Transcanada Corp. – slide 54
    Our Priorities Continue to maximize value of operating assets Acquire remaining Ontario Solar projects Deliver Napanee Generating Station on time, on budget Pursue development and acquisition opportunities
  55. Investor Day 2013 - Toronto – Transcanada Corp. – slide 55
    Bruce Power 6,200 MW facility capable of generating 30% of Ontarios power needs Bruce A 3,000 MW (48.9% interest) Bruce B 3,200 MW (31.6% interest) Power sold under long-term contract with the Ontario Power Authority Returned to…
  56. Investor Day 2013 - Toronto – Transcanada Corp. – slide 56
    Bruce Power - Five Year Outlook TWh of Power Generation* 20 15 10 5 0 2012A 2013E 2014E 2015E 2016E 2017E Bruce B Bruce A * Represents TransCanadas 48.9% ownership interest in Bruce A and 31.6% in Bruce B
  57. Investor Day 2013 - Toronto – Transcanada Corp. – slide 57
    Ontario Solar Includes nine solar projects, total capacity of 86 MW 470 million investment 20-year PPA with the Ontario Power Authority Three projects acquired to date (26 MW) Remaining projects expected to be acquired between…
  58. Investor Day 2013 - Toronto – Transcanada Corp. – slide 58
    Napanee Generating Station 900 MW combined-cycle gas-fired power plant 1.0 billion investment 20-year PPA with the Ontario Power Authority Construction permits and approvals expected in Fall 2014 In-service 2017/18
  59. Investor Day 2013 - Toronto – Transcanada Corp. – slide 59
    Alberta Power Supply and Demand Outlook MW 20,000 Robust power demand growth driven primarily 15,000 by oil and gas development New generation 10,000 required post 2016 First coal retirements occur 5,000 post 2020 0 2013…
  60. Investor Day 2013 - Toronto – Transcanada Corp. – slide 60
    New York Zone J Capacity Market /kW month (UCAP) 18 Oct 2011 Factors expected to 16 New Demand May 2012 have an impact on Curve USPG Nov 2012 14 Parameters Retirements Astoria II Summer 2014 capacity Exemption market: 12 Ends…
  61. Investor Day 2013 - Toronto – Transcanada Corp. – slide 61
    Natural Gas Storage 156 Bcf of unregulated natural gas storage capacity in Alberta Cyclical lows in natural gas storage spreads Current spreads do not support long-term new build economics AB Summer/Winter Spreads C/GJ 1.50…
  62. Investor Day 2013 - Toronto – Transcanada Corp. – slide 62
    Realizing Our Vision 2020 EBITDA Outlook* 20 plants, 11,200 MW Contracted assets contribute over 50% of Energys EBITDA in 2020 Billions 2 45% 1 57% 55% 43% 0 2012A 2020E Hydro Contracted under PPAs 5% Other incl.…
  63. Investor Day 2013 - Toronto – Transcanada Corp. – slide 63
    Future Growth Opportunities Natural gas-fired generation Renewables, including wind, solar and hydro Nuclear refurbishment Power transmission Opportunistic and disciplined M&A Well positioned to capture opportunities from growing…
  64. Investor Day 2013 - Toronto – Transcanada Corp. – slide 64
    Key Takeaways Stable base of contracted energy assets 1.5 billion of long-term contracted growth projects Return of Sundance A adds 560 MW of capacity in critical Alberta market Significant future growth opportunities
  65. Investor Day 2013 - Toronto – Transcanada Corp. – slide 65
    Energy Alex Pourbaix President, Energy & Oil Pipelines
  66. Investor Day 2013 - Toronto – Transcanada Corp. – slide 66
    Finance Don Marchand Executive VP & Chief Financial Officer
  67. Investor Day 2013 - Toronto – Transcanada Corp. – slide 67
    Financial Strategy Invest in low-risk assets that generate predictable and sustainable earnings and cash flow Finance long-term assets with long-term capital Maintain financial strength and flexibility Value A grade credit rating…
  68. Investor Day 2013 - Toronto – Transcanada Corp. – slide 68
    Where We Are Today Funding for 2013 complete Capital needs for small to medium-sized projects manageable Predictable and growing cash flow from operations Abundant liquidity and access to capital Large scale projects remain…
  69. Investor Day 2013 - Toronto – Transcanada Corp. – slide 69
    2013 Funding Program Billions 4.75 billion raised on attractive terms through an array of funding products 3.25 billion of long-term debt in U.S. and Cash, Commercial Canadian markets Paper and Senior Debt 600 million of…
  70. Investor Day 2013 - Toronto – Transcanada Corp. – slide 70
    Diversity of Funding Sources in 2013 (Billions) Currency Sources of Capital US Dollars 3-Year Notes Preferred Shares Canadian Dollars 10-Year Debt LP Term Loan 30-Year Debt LP Equity Units
  71. Investor Day 2013 - Toronto – Transcanada Corp. – slide 71
    Strong Balance Sheet and Liquidity Consolidated Liquidity Capital Structure* 645 million cash on hand (at September 30, 2013) Predictable and growing cash flow Debt maturity profile manageable 2014 930 million at 6.5% average…
  72. Investor Day 2013 - Toronto – Transcanada Corp. – slide 72
    Exposure to Interest Rates TransCanada is well positioned in a rising rate environment Cash from operations will remain a significant source of funds Debt is overwhelmingly fixed-rate and long-term 12 Year average term with 5.9%…
  73. Investor Day 2013 - Toronto – Transcanada Corp. – slide 73
    38 Billion Portfolio of Commercially Secured Projects* Grand Rapids Northern 1.5 Courier 2015-2017 0.7 Keystone Hardisty Terminal 0.3 Energy East Keystone XL & 12.0 Gulf Coast Bakken ML Project Heartland & 2017-2018 TC…
  74. Investor Day 2013 - Toronto – Transcanada Corp. – slide 74
    12 Billion of Small to Medium-Sized Commercially Secured Projects Capital Invested Expected Revenue Project Cost* to Date* In-Service Stream Counterparty Date* Gulf Coast Project 2.6 2.0 2013-2014 Contracted/Spot Multiple Shippers…
  75. Investor Day 2013 - Toronto – Transcanada Corp. – slide 75
    Capital Expenditures for Small to Medium-Sized Projects Billions 2014 - 2016 Outlook Approx. 10.5 billion to be invested in small to medium-sized projects and maintenance capital A U.S. Presidential Permit for Keystone XL results…
  76. Investor Day 2013 - Toronto – Transcanada Corp. – slide 76
    Funding Program for Small to Medium-Sized Projects Billions 12 2014 - 2016 Outlook 11 Cash Small to medium-sized projects and 10 Senior Debt maintenance capital largely funded 9 Preferred Shares Hybrid Securities with…
  77. Investor Day 2013 - Toronto – Transcanada Corp. – slide 77
    17 Billion of Large Scale Oil Pipeline Projects Keystone XL Capital investment: US5.4+ Billion Capital invested to date: US2.0 Billion Expected in-service date: 2 years after permit Revenue stream: Largely contracted Expected…
  78. Investor Day 2013 - Toronto – Transcanada Corp. – slide 78
    9 Billion of Large Scale Natural Gas Pipeline Projects Prince Rupert Gas Transmission Capital investment: 5 Billion Capital invested to date: -- Expected in-service date: 2018 Revenue stream: Fully contracted Expected IRR: 6 7…
  79. Investor Day 2013 - Toronto – Transcanada Corp. – slide 79
    Numerous Levers Available to Fund Additional Requirements Capital Investment Funding Options Available on Large Scale Projects Substantial internally generated cash flow Billions Senior debt Mezzanine capital Coastal GasLink…
  80. Investor Day 2013 - Toronto – Transcanada Corp. – slide 80
    38 Billion Capital Program Leads to Diversified Asset Base* 2012A 2020E 48 Billion 80 Billion Oil Pipelines Canadian Gas Pipelines Energy Contracted (20 yrs+) U.S. & Mexico Gas Pipelines Energy Other Generation LNG Pipelines…
  81. Investor Day 2013 - Toronto – Transcanada Corp. – slide 81
    38 Billion Capital Program Drives EBITDA Growth* Billions 15% Coastal GasLink and Prince Rupert Energy Napanee Keystone Mexico Alberta East 41% XL** Oil Pipelines Pipelines Alberta Gulf Oil 23% Western NGTL Coast…
  82. Investor Day 2013 - Toronto – Transcanada Corp. – slide 82
    Dividends Per Common Share Track Record of Dividend Growth 1.84 7% CAGR 0.80 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13
  83. Investor Day 2013 - Toronto – Transcanada Corp. – slide 83
    Key Takeaways Proven track record of success 38 billion portfolio of commercially secured projects under development Financial position remains strong Funding needs are manageable, numerous financing options available Well…
  84. Investor Day 2013 - Toronto – Transcanada Corp. – slide 84
    Finance Don Marchand Executive VP & Chief Financial Officer
  85. Investor Day 2013 - Toronto – Transcanada Corp. – slide 85
    Closing Remarks Russ Girling President & Chief Executive Officer
  86. Investor Day 2013 - Toronto – Transcanada Corp. – slide 86
    A Leading North American Energy Infrastructure Company
  87. Investor Day 2013 - Toronto – Transcanada Corp. – slide 87
    TransCanada Investor Day November 19, 2013

From the store

Browse maps, data & reports in the Shale Experts store