Southeast Gateway pipeline project achieves mechanical completion
Increases common share dividend for the twenty-fifth consecutive year
CALGARY, Alberta, Feb. 14, 2025 (GLOBE NEWSWIRE) — TC Energy Corporation (TSX, NYSE: TRP) (TC Energy or the Company) released its fourth quarter results today. François Poirier, TC Energy’s President and Chief Executive Officer commented, “Our strategic priorities that emphasize safety, operational excellence and project execution continue to deliver solid growth, low risk and repeatable performance. For the full year 2024, comparable EBITDA1 from continuing operations increased approximately six per cent, and segmented earnings from continuing operations increased approximately 56 per cent compared to 2023.” Poirier continued, “Reaching mechanical completion 13 per cent under budget on the Southeast Gateway pipeline project is a monumental milestone for the company and for Mexico, and a testament to our unwavering focus on project execution. We remain aligned with the CFE on achieving a May 1, 2025 in-service date, which will mark a material inflection point for TC Energy; providing Southeast Mexico with access to safe, reliable and affordable energy. Driven by our consistently strong performance, TC Energy’s Board of Directors approved a quarterly dividend increase of 3.3 per cent for the quarter ending March 31, 2025, equivalent to $3.40 per common share on an annualized basis. The increase in quarterly dividend is based on TC Energy’s proportionate allocation of the dividend post-spin, and represents our twenty-fifth consecutive year of dividend growth.”
Financial Highlights
(All financial figures are unaudited and in Canadian dollars unless otherwise noted)
Following the spinoff of our Liquids Pipelines business into South Bow on October 1, 2024, Liquids Pipelines results are reported as a discontinued operationFourth quarter 2024 financial results from continuing operations: Comparable earnings1 of $1.1 billion or $1.05 per common share1 compared to $1.2 billion or $1.15 per common share in fourth quarter 2023Net income attributable to common shares of $1.1 billion or $1.03 per common share compared to net income attributable to common shares of $1.2 billion or net income per common share of $1.20 in fourth quarter 2023Comparable EBITDA of $2.6 billion compared to $2.7 billion in fourth quarter 2023Segmented earnings of $1.9 billion compared to $2.0 billion in fourth quarter 2023 Year ended December 31, 2024 financial results from continuing operations: Comparable EBITDA of $10.0 billion compared to $9.5 billion in 2023Segmented earnings of $8.0 billion compared to $5.1 billion in 2023 Year ended December 31, 2024 financial results including a nine-month contribution from the Liquids Pipelines business: 2024 comparable earnings of $4.4 billion or $4.27 per common share compared to $4.7 billion or $4.52 per common share in 2023Net income attributable to common shares of $4.6 billion or $4.43 per common share compared to $2.8 billion or $2.75 per common share in 2023Comparable EBITDA of $11.2 billion compared to $11.0 billion in 2023Segmented earnings of $8.7 billion compared to $6.1 billion in 2023 TC Energy’s Board of Directors approved a 3.3 per cent increase in the quarterly common share dividend to $0.85 per common share for the quarter ending March 31, 2025, equivalent to $3.40 per common share on an annualized basis. The increase in quarterly dividend is based on TC Energy’s proportionate allocation of the dividend post-spin2025 outlook for continuing operations: Comparable EBITDA outlook for 2025 continuing operations is expected to be $10.7 to $10.9 billion, driven by new projects anticipated to be placed in service in 2025, including the Southeast Gateway pipeline, along with the full year contribution from projects placed in service in 2024, higher contributions from the NGTL System resulting from the five-year negotiated revenue requirement settlement, partially offset by reduced generation from Bruce Power due to the commencement of the Unit 4 Major Component Replacement (MCR)Comparable earnings per common share (EPS) for 2025 for continuing operations is expected to be lower than 2024 comparable EPS from continuing operations due to the net impact of an increase in comparable EBITDA, lower AFUDC related to the Southeast Gateway pipeline expected to be placed in service on May 1, 2025, lower interest income as a result of lower cash balances and lower interest rates, increased depreciation rates on the NGTL System related to the five-year negotiated revenue requirement settlement, higher effective tax rates and reduced capitalized interest due to the Coastal GasLink pipeline commercial in-serviceCapital expenditures are expected to be $6.1 to $6.6 billion, on a gross basis, or $5.5 to $6.0 billion of net capital expenditures2 after considering capital expenditures attributable to non-controlling interests of entities we control.
Operational Highlights
Canadian Natural Gas Pipelines deliveries averaged 25.6 Bcf/d, up seven per cent compared to fourth quarter 2023 Total NGTL System deliveries set a new record of 17.7 Bcf on February 9, 2025Canadian Mainline fourth quarter deliveries averaged 6.3 Bcf/d, up 11 per cent compared to fourth quarter 2023 U.S. Natural Gas Pipelines daily average flows were 27.0 Bcf/d U.S. Natural Gas Pipelines set a new all-time record of 37.9 Bcf on January 20, 2025ANR set a new all-time record of 10.0 Bcf on January 20, 2025 Mexico Natural Gas Pipelines flows averaged 2.7 Bcf/d Sur de Texas pipeline set a single-day flow record above 1.7 Bcf/d on November 20, 2024 highlighting its importance as a key import route for U.S. natural gas production into Mexico Bruce Power achieved 99 per cent availability in fourth quarter 2024Cogeneration power plant fleet achieved 98 per cent availability in fourth quarter 2024, attributed to fewer forced outages and successful completion of planned outages. Project Highlights
Completed the successful spinoff of the Liquids Pipelines business (the Spinoff Transaction) on October 1, 2024Achieved mechanical completion of the Southeast Gateway pipeline project on January 20, 2025. We continue to be aligned with the CFE on finalizing the remaining project completion activities for achieving a May 1, 2025 in-service dateDeclared commercial in-service of the Coastal GasLink pipeline in November 2024, allowing for the collection of tolls from customers retroactive to October 1, 2024Approved the Pulaski and Maysville projects on our Columbia Gulf System. These mainline extension projects off Columbia Gulf will facilitate full coal-to-gas conversion at two existing power plants and are each expected to provide 0.2 Bcf/d of capacity for incremental gas-fired generation. The projects have anticipated in-service dates in 2029 and total estimated costs of US$0.7 billionApproved the US$0.3 billion Southeast Virginia Energy Storage Project. This is an LNG peaking facility in southeast Virginia that will serve an existing LDC’s growing winter peak day load and mitigate its peak day pricing exposure, as well as increase operational flexibility on the Columbia Gas system. The project has an anticipated in-service date of 2030Placed the US$0.1 billion GTN XPress project into service in December 2024Bruce Power announced Stage 3a of Project 2030 which will provide incremental capacity of approximately 90 MW at the site. TC Energy’s share of the capital required is approximately $175 million. Bruce Power will not be requesting an incremental capital call for this stage. By optimizing its existing Units through this program, when complete, Project 2030 is expected to increase the Bruce Power site peak output to 7,000 MW. All of this output will be sold under Bruce Power’s long-term contract with the IESORemoved Bruce Power’s Unit 4 from service on January 31, 2025 to commence its MCR program. The Unit 5 MCR final cost and schedule estimate was submitted to the IESO on January 31, 2025TC Energy and prospective partners Saugeen Ojibway Nation will advance pre-development work on the Ontario Pumped Storage Project following the Ontario Government’s recent announcement on January 24, 2025 to invest up to $285 million to complete a detailed cost estimate and environmental assessments to determine the feasibility of the project.
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December 31(millions of $, except per share amounts)2024 20231 2024 20231 Net income (loss) attributable to common shares971 1,463 4,594 2,829from continuing operations1,069 1,249 4,199 2,217from discontinued operations2(98) 214 395 612 Net income (loss) per common share – basic$0.94 $1.41 $4.43 $2.75from continuing operations$1.03 $1.20 $4.05 $2.15from discontinued operations2($0.09) $0.21 $0.38 $0.60 Comparable EBITDA32,619 3,107 11,194 10,988from continuing operations2,619 2,715 10,049 9,472from discontinued operations2- 392 1,145 1,516 Comparable earnings31,094 1,403 4,430 4,652from continuing operations1,094 1,192 3,865 3,896from discontinued operations2- 211 565 756 Comparable earnings per common share3$1.05 $1.35 $4.27 $4.52from continuing operations$1.05 $1.15 $3.73 $3.78from discontinued operations2- $0.20 $0.54 $0.74 Prior year results have been recast to reflect the split between continuing and discontinued operations.Represents nine months of Liquids Pipelines earnings in 2024 compared to a full year of Liquids Pipelines earnings in 2023. Refer to the Discontinued operations section of this news release for additional information.For additional information on the most directly comparable GAAP measure, refer to the Non-GAAP measures section of this news release.
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December 31(millions of $, except per share amounts)2024 2023 2024 2023 Cash flows1 Net cash provided by operations22,084 1,860 7,696 7,268 Comparable funds generated from operations2,31,665 2,405 7,890 7,980 Capital spending42,307 2,985 7,904 12,298 Acquisitions, net of cash acquired- (5) – (307)Proceeds from sales of assets, net of transaction costs- 33 791 33 Disposition of equity interest, net of transaction costs5- 5,328 419 5,328 Dividends declared per common share6$0.8225 $0.93 $3.7025 $3.72 Basic common shares outstanding (millions) – weighted average for the period1,038 1,037 1,038 1,030 – issued and outstanding at end of period1,039 1,037 1,039 1,037 Includes continuing and discontinued operations.Represents nine months of Liquids Pipelines earnings in 2024 compared to a full year of Liquids Pipelines earnings in 2023. Refer to the Discontinued operations section of this news release for additional information. Comparable funds generated from operations is a non-GAAP measure used throughout this news release. This measure does not have any standardized meaning under GAAP and therefore is unlikely to be comparable in similar measures presented by other companies. The most directly comparable GAAP measure is Net cash provided by operations. For more information on non-GAAP measures, refer to the Non-GAAP measures section of this news release.Capital spending reflects cash flows associated with our Capital expenditures, Capital projects in development and Contributions to equity investments net of Other distributions from equity investments of $3.1 billion in 2024 in the Canadian Natural Gas Pipelines segment. Refer to Note 7, Coastal GasLink in the Consolidated financial statements of our 2024 Annual Report and the Segmented information of our Condensed consolidated financial statements of this news release for additional information.Included in the Financing activities section of the Condensed consolidated statement of cash flows.Dividends declared in fourth quarter 2024 reflect TC Energy’s proportionate allocation following the Spinoff Transaction. Refer to the Discontinued operations section of this news release for additional information.
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December 31(millions of $, except per share amounts)2024 20231 2024 20231 Segmented earnings (losses) from continuing operations Canadian Natural Gas Pipelines506 692 2,016 (90)U.S. Natural Gas Pipelines918 955 4,053 3,531 Mexico Natural Gas Pipelines214 150 929 796 Power and Energy Solutions276 263 1,102 1,004 Corporate(16) (34) (136) (144)Segmented earnings (losses) from continuing operations1,898 2,026 7,964 5,097
