Strategic Overview Russ Girling President & Chief Executive Officer
Investor Day Key Themes Proven Strategy Average annual total shareholder return of 15% since 2000 Three complementary businesses performing well in 2014 EBITDA expected to exceed 5 billion Funds Generated from Operations expected to…
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…
Realizing Our Vision Capital Investment Billions Gas Pipelines 30 Investment opportunities arise at different points Liquids Pipelines Energy throughout the business cycle 25 Disciplined approach to capital allocation maximizes…
TransCanada Today One of North Americas Largest Natural Gas Pipeline Networks 68,000 km (42,000 mi) of pipeline 406 Bcf of storage capacity 14 Bcf/d or 20% of continental demand Premier Liquids Pipeline System 4,250 km (2,600…
Our Executive Management Team Russ Girling President & Chief Executive Officer Don Marchand Alex Pourbaix Bill Taylor James Baggs Wendy Hanrahan Paul Miller Karl Johannson Kristine Delkus EVP & EVP & President, EVP &…
We Have Made Significant Progress in 2014 3.7 billion of new assets contributing to results, including Gulf Coast Extension 6.6 billion of new commercially secured projects Canadian Mainline settlement with eastern Canadian LDCs…
Financial Highlights Nine Months ended September 30 Comparable EBITDA Funds Generated from Operations (Millions) (Millions) 12% Increase 6% Increase 4,000 3,568 2,917 3,090 2013 2014 2013 2014
Our Priorities Deliver energy safely and reliably, every day Advance 46 billion of projects through permitting and construction phases Continue to invest in low-risk growth opportunities Maintain financial strength and…
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…
46 Billion Portfolio of Commercially Secured Projects* Industry-leading growth portfolio 24 billion of liquids pipelines 20 billion of natural gas pipelines 2 billion of power generation facilities All backed by long-term…
Advancing Our Capital Program in 2015 Billions Advance Small to Medium-Sized Projects through Advance through Permitting and Regulatory Process Construction Napanee and Obtain Regulatory Eastern Mainline Ontario Solar Approvals…
13 Billion of Small to Medium-Sized Projects Expected EBITDA Growth* In-Service Capital Amount Project Date* Cost* Spent 2013A 2017E Tamazunchale Extension 2014 US0.6 US0.6 Ontario Solar 2014-2015 0.5 0.4 8% CAGR NGTL System…
Dividend Growth Poised to Accelerate Growth Rate Expected to Double Through 2017 Supported by Base Business and Small to Medium-Sized Projects 810% CAGR 4% CAGR Large-Scale Project Success Augments Growth Through 2018 and…
33 Billion of Commercially Secured Large-Scale Projects* Five transformational projects Energy East (12 billion) and related Eastern Mainline Expansion (1.5 billion) Keystone XL (US8 billion) and related Hardisty Terminal (0.3…
Realizing Our Vision 2020 Asset Outlook* Natural Gas Pipeline Network 69,000 km (43,000 mi) of pipeline 368 Bcf of storage capacity Liquids Pipeline Network 11,600 km (7,100 mi) of pipeline 2.5 million bbl/d of long-haul capacity…
Realizing Our Vision 2020 EBITDA Outlook* EBITDA expected to approximate 10 billion by 2020 More than double the 4.8 billion in 2013 Driven by 46 billion of secured projects Approximately 95% expected to come from cost-of-service…
Financial Flexibility Enhances Long-Term Shareholder Value Strong Financial Position* Funding Alternatives Supports Access to Significant to Enhance Shareholder Returns Capital at Attractive Rates TC PipeLines, LP Drop Downs…
Changing Energy Landscape to Drive Additional Growth Changing energy landscape is creating significant growth opportunities Abundant natural gas supply Growing crude oil supply Shift to a less carbon-intensive energy mix Our…
Key Takeaways Track Record of Delivering Long-Term Shareholder Value 15% average annual return since 2000 Industry-Leading Attractive, Growing Strong Growth Portfolio Dividend Financial Position 46 billion of 3.4% yield at…
Strategic Overview Russ Girling President & Chief Executive Officer
Natural Gas Pipelines Karl Johannson President, Natural Gas Pipelines
Significant Progress in 2014 Enhanced competitiveness of existing assets ANR: 2.0 Bcf/d re-contracted NGTL System: 4.0 Bcf/d of new contracts + 2015 settlement Canadian Mainline: revenues exceed requirement, LDC Settlement…
Our Priorities Advance portfolio of projects through permitting process Implement Mainline LDC Settlement, upon NEB approval Support Energy East through regulatory hearing Complete necessary ANR work for new contracted volumes…
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 using NGTL System…
WCSB Gas Supply Potential West Coast Natural Gas Plays WCSB Remaining Resource Estimates (Tcf) Pre horizontal drilling & fracking technology Source: BMO Capital Markets / Wood Mackenzie * Shale includes Horn River, Cordova,…
NGTL Systems Unparalleled Position Primary transporter of WCSB supply with NIT hub providing optionality & liquidity 10.5 Bcf/d average in 2014; peak intra-basin demand of 6.5 Bcf/d 7.0 billion of new investments 0.3 billion…
Canadian Mainline - LDC Settlement Prairies NOL Eastern Triangle Total 2013 Rate Base (B) 1.6 1.7 2.4 5.7 Delta -0.60 -1.60 +0.70 -1.50 2020 Rate Base (B) 1.0 0.1 3.1 4.2 LDC Settlement creates long-term stability Flexibility…
2 Billion of Mainline Expansions within Eastern Triangle 1.5 billion Eastern Mainline Project adds 0.6 Bcf/d of capacity Ensures existing and new firm transportation commitments are met Expected in-service by Q2/17, subject to…
Energy Easts Impact on Canadian Mainline Capacity TJ/d All contracted gas customers will Capacity Before Conversion continue to receive reliable and cost effective transmission service Excess Capacity if Export Contracts…
U.S. Gas Pipelines Solidifying the Asset Base ANR responding to market dynamics Great Lakes settlement provides rate relief Balance of portfolio highly contracted over the long-term Interest in five remaining gas pipelines…
ANR Pipeline Capturing Marcellus/Utica Supply Growth Secured approximately 2.0 Bcf/d of long-term contracts at maximum rates on Southeast Mainline 1.25 Bcf/d will commence in 2014; remainder of volume commencing in 2015 Average…
TC PipeLines, LP (NYSE: TCP) A Critical Funding Lever US5.8 billion enterprise value 4.8% yield as at November 14, 2014 20% average annual total unitholder return since inception Solid financial position with interest in six…
Mexico Developing a Regional Pipeline Business Regional head office established to manage current assets, execute on capital program and capture new opportunities US1.2 billion of pipelines contributing today Secured by 25-year…
Mexico Growth Potential Potential CFE Pipeline Projects 5 1 Ojinaga El Encino 4 2 El Encino La Laguna 3 Waha - Ojinaga 1 3 4 Waha Noroeste (Ciudad Juarez) 5 Ehrenberg San Luis Rio Colorado 2 Opportunities to potentially…
Realizing Our Vision Natural Gas 2020 EBITDA Outlook* 21% 13% 10% 4% 22% 18% 22% 30% 35% 33% 44% 30% 18% NGTL System Canadian Mainline U.S. Pipelines Mexico West Coast LNG EBITDA expected to grow by almost 60% by…
Key Takeaways Transformational changes made to enhance competitiveness of asset base 8 billion of commercially secured projects expected in-service by 2017; 12 billion more by end of decade MLP drop down strategy advancing…
Natural Gas Pipelines Karl Johannson President, Natural Gas Pipelines
Liquids Pipelines Paul Miller President, Liquids Pipelines
Liquids Pipelines Strategy Domestic Other Imports Connect growing WCSB and U.S. Canada shale oil supply to key refining [2013 total refinery demand markets in 000s of barrels per day] Eastern Canada Capture Alberta regional…
WCSB Pipeline Takeaway Capacity vs. CAPP Production Forecast Million bbl/d 8 Crude Oil Supply 7 6 5 Rail 4 Other Existing Capacity 3 2 Energy East* 1 Keystone XL* Keystone 0 2012 2014 2016 2018 2020 2022 2024 2026 2028…
Our Progress in 2014 US2.6 billion Keystone Gulf Coast extension placed into service Progressed construction on Houston lateral and terminal Launched program to increase capacity of Keystone pipeline Increased Energy East contracts…
Keystone: A Premier Oil Pipeline System 4,250 km (2,600 mi) crude oil pipeline serving Mid-West PADD II and Gulf Coast PADD III markets 530,000 bbl/d long-haul contracts US1 billion of EBITDA annually Safely transported…
Keystone Gulf Coast Extension US2.6 billion pipeline extending Keystone from Cushing to Port Arthur Began service on January 22, 2014 Capacity to average 520,000 bbl/d in 2014 Houston Lateral pipeline and terminal to…
Keystone XL 830,000 bbl/d of capacity In-service approximately two years following receipt of a Presidential Permit US8 billion cost estimate Expected to generate approximately US1 billion of EBITDA annually Tolls competitive…
Keystone Pipeline System When fully constructed, transportation capacity of over 1.4 million bbl/d Total contracted capacity of approximately 1.1 million bbl/d Expected to generate EBITDA of approximately US2 billion annually…
Energy East Project Qubec Atlantic Canada 400 kbbl/d 435 kbbl/d U.S. PADD I 1,200 kbbl/d 12 billion investment, excluding transfer value of Mainline natural gas assets 1.1 million bbl/d of capacity with approximately 1…
Alberta Regional Liquids Pipelines Bringing Supply to Market 3.5 billion of secured projects 800 million Northern Courier Project 1.5 billion Grand Rapids Project 900 million Heartland Pipeline and TC Terminals Project 300 million…
Northern Courier Project 800 million All approvals received Construction started in Q3 of 2014 Long-term contract with Fort Hills Transports crude oil and diluent between the Fort Hills mine site and Suncors terminal In-service…
Grand Rapids Project 1.5 billion (TransCanadas share) Received regulatory approval in October 2014 50/50 joint venture with Brion, a subsidiary of PetroChina Operated by TransCanada Long-term contract with Brion Will transport…
Heartland Pipeline and TC Terminals Project 900 million All approvals for terminal received Anticipate receiving pipeline permit in 2015 Terminal construction started in Q3 of 2014 Connects the Edmonton region to facilities in…
Future Growth Opportunities Connect growing crude oil supply to market via new pipeline build-out Value chain expansion Transportation of other liquids Terminals business Rail solution Repurposing natural gas pipelines to…
Realizing Our Vision Liquids Pipelines 2020 EBITDA Outlook* Annual EBITDA of over 4 billion expected by 2020, up from 750 million in 2013 Increase driven by 24 billion of secured projects including Keystone XL, Energy East and…
Key Takeaways Developing a pre-eminent position in the crude oil transportation business 24 billion of commercially secured projects Significant platform for future growth
Liquids Pipelines Paul Miller President, Liquids Pipelines
Major Projects and Corporate Development Alex Pourbaix President, Development
TransCanada Energy Infrastructure Partner of Choice Counterparties becoming more selective in choosing infrastructure partners, focusing on the following characteristics World-class operator, capable of constructing large-scale…
Our Progress in 2014 3.7 billion of new assets contributing to results Keystone XL received positive final environmental assessment from US Department of State Filed regulatory applications for West Coast LNG pipeline projects,…
Our Priorities Focus on stakeholder engagement to advance remainder of capital program through regulatory and permitting phases Progress construction on 13 billion of small to medium-sized projects Continue to invest in low-risk…
Committed to Stakeholder Engagement & the Environment Collaborative approach to working with all stakeholders Landowners, Aboriginals, Native Americans, Governments, Regulators, and Local Communities Stakeholder engagement critical…
Major Projects Excellence in Project Execution Track record of designing, building and operating large-scale energy infrastructure Highly skilled team of engineers and project execution staff Regulatory and stakeholder relations…
Tamazunchale Extension Video Watch on YouTube at: http://www.youtube.com/watchv=qiinm32_M9Y
46 Billion Portfolio of Commercially Secured Projects* Industry-leading portfolio of energy infrastructure projects 24 billion of liquids pipelines 20 billion of natural gas pipelines 2 billion of power generation facilities…
Advancing 13 Billion of Small to Medium-Sized Projects Project Capital Invested Project Expected Cost* to Date Status In-Service Date Tamazunchale Extension US0.6 US0.6 Nearing Completion 2014 Ontario Solar 0.5 0.4 7 Facilities…
Energy East Project 12 billion investment, excluding transfer value of Mainline gas assets Filed comprehensive application with the NEB on October 30, 2014 Significant stakeholder consultation and field work undertaken Helps…
Keystone XL Project Positive Final Environmental Impact Statement issued in January 2014, results consistent with past reviews Nebraska Supreme Court to decide on route approval authority US8 billion cost estimate US2.4 billion…
Prince Rupert Gas Transmission Project 5 billion investment underpinned by long-term contract; costs re-based prior to construction Serves proposed Petronas LNG facility Nisgaa benefits agreement highlights collaborative approach…
Coastal GasLink Project 4 billion investment underpinned by long-term contracts; costs re-based prior to construction Serves LNG facility proposed by Shell Canada, Korea Gas, Mitsubishi and PetroChina Ongoing consultation with…
Future Growth Opportunities Unparalleled asset footprint creates significant organic growth opportunities Changing energy landscape to provide numerous options to invest new capital Continuously monitor energy infrastructure…
Key Takeaways 46 billion capital program is progressing Stakeholder engagement and responsible development critical to success Risk sharing mechanisms in place to protect project returns Well positioned to capitalize on…
Major Projects and Corporate Development Alex Pourbaix President, Development
Energy Bill Taylor President, Energy
Energy Strategy Maximize Value of Demand growth and need to Existing Assets replace aging infrastructure will create opportunity TWh North American Power Demand History Forecast Bruce Refurbishment Alberta Coal Fleet…
Energy Assets Today 19 plants, 10,900 MW Concentrated in regions where we have a significant pipeline footprint Portfolio includes: Long-term contracted assets with stable, predictable earnings and cash flow Low-cost, baseload…
Portfolio of Contracted Assets and Low-Cost Baseload Generation Long-term Contracted Assets Baseload and capacity payment Capacity Contract Plant Counterparty (MW)* Expiry supported generation provide solid Western Power returns…
Our Priorities Continue to maximize value of existing assets Solid financial performance despite weaker Alberta power prices Advance existing portfolio of growth projects Finalize remaining Ontario Solar projects Advance Napanee…
Alberta Power Supply and Demand Outlook MW Market well supplied in 20,000 near term Peak Demand Forecast Robust power demand plus 15% Reserve growth driven primarily by 15,000 oil and gas development Other Capacity New…
Ravenswood Generating Station /kW month (UCAP) 20 18 2,480 MW facility in strong 16 capacity + energy market 14 Capacity pricing signal has been 12 improving 10 8 Expected to stabilize in 2015 6 4 Critically important…
Bruce Power Outlook 2014 Bruce…
Bruce Power Refurbishment Opportunity Bruce Power has generated about 30% of Ontarios power since 2013 Emission-free electricity source Government committed to nuclear refurbishments as part of Long Term Energy Plan Bruce Power…
1.5 Billion of Contracted Growth Projects Ontario Solar 500 million acquisition of multiple facilities Approximately 90 MW total 20-year PPA with the Ontario Power Authority 7 projects (66 MW) closed to date Napanee Generating…
Other Future Growth Opportunities Natural gas-fired generation Repowering opportunities Renewables: wind, solar and hydro Opportunistic and disciplined M&A Mexico power Well positioned to capture opportunities from growing…
Realizing Our Vision Energy 2020 EBITDA Outlook* 19 plants, 11,200 MW Contracted assets contribute 50% of Energys EBITDA Billions 44% 43% 50% 56% 57% 50% Hydro Contracted under PPAs 5% Other incl. Western Canada &…
Key Energy EBITDA Sensitivities Alberta Alberta Gas Storage New York Bruce Power Power Prices Spreads Capacity Prices Availability 1/MWh 0.10/GJ 1/kWm 1% Forced Outage Rate +/- 10 million* +/- 16 million* +/- 26 million* A:…
Key Takeaways Stable base of contracted energy assets 1.5 billion of long-term contracted growth projects Critical mass in attractive markets Well positioned to capture growth opportunities in core markets Step outs into new…
Energy Bill Taylor President, Energy
Finance Don Marchand 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 We Are Today Base business is performing well Funding for 2014 complete Visibility to near-term growth with significant upside as large-scale projects advance Systematic LP drop down strategy advancing Capital needs for small…
2014 Funding Program is Complete Billions Cash and Commercial Paper (net) Debt & Approximately 2.3 billion raised on Preferred Shares Medium attractive terms through an array of Retired Term funding products LP Preferred Notes…
Strong Balance Sheet Provides Flexibility Consolidated Financial Flexibility Capital Structure* Predictable and growing cash flow 5 billion committed and undrawn credit lines Well supported commercial paper programs Canada 3.0…
Exposure to Interest Rates and Foreign Exchange Interest Rates Cash from operations will remain a significant source of funds Debt is overwhelmingly fixed-rate and long-term 12 year average term with 5.7% average coupon Net floating…
46 Billion Portfolio of Commercially Secured Projects* Line of Business Natural Gas Pipelines Liquids Pipelines Revenue Stream Power Plants Contracted Location Cost of Service Canada U.S. Mexico * Certain…
13 Billion of Small to Medium-Sized Projects In-Service 2015-2017 Capital Invested Expected Revenue Project Cost* to Date* In-Service Date* Stream Counterparty Tamazunchale Extension US0.6 US0.6 2014 Fully Contracted CFE Ontario Solar…
Capital Expenditures for Small to Medium-Sized Projects Billions 2015 2017 Outlook Approximately 15 billion to be invested over the next three years related to: Small to medium-sized projects Maintenance capital Project…
Funding Program for Small to Medium-Sized Projects Billions 16 2015 2017 Outlook Senior Debt, 14 Preferred Shares Small to medium-sized projects and and Hybrid Securities maintenance capital largely funded with: 12 Internally…
Small to Medium-Sized Projects Drive Near-Term EBITDA Growth* Billions 8% CAGR Alberta Napanee Liquids 23% NGTL and and Pipelines Mexico Canadian Ontario Keystone and Pipelines Mainline Solar Terminals 21% 26% Gulf Coast…
33 Billion of Commercially Secured Large-Scale Projects Expected Capital Invested In-Service Project* Cost* to Date* Date* Keystone XL US8.0 US2.4 ** Hardisty Terminal 0.3 0.1 ** Energy East 12.0 0.3 2018 Eastern Mainline 1.5…
Funding Our Growth Portfolio 2015 Through 2020* Billions Numerous Financing Levers Available Various Other Levers DRiP Partners Portfolio Management Discrete Equity Project Financing Senior Debt and Subordinated…
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