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TC Energy (TRP)

Participants
David Moneta Vice President-Investor Relations
Russ Girling President and Chief Executive Officer
Don Marchand Executive Vice President-Strategy and Corporate Development, and Chief Financial Officer
François Poirier Chief Operating Officer and President-Power and Storage
Tracy Robinson President-Canadian Natural Gas Pipelines and Coastal GasLink
Stan Chapman President-U.S. and Mexico Natural Gas Pipelines
Bevin Wirzba President-Liquids Pipelines
Robert Catellier Capital Markets
Robert Kwan of Capital Markets
Linda Ezergailis TD Securities
Jeremy Tonet JPMorgan
Rob Hope Scotiabank
Ben Pham BMO
Praneeth Satish Wells Fargo
Patrick Kenny National Bank Financial
Michael Lapides Goldman Sachs
Andrew Kuske Credit Suisse
Alex Kania Wolfe Research
Call transcript
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Operator

Thank you for standing by. This is the conference operator. Welcome to the TC Energy 2020 Third Quarter Results Conference Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there’ll be an opportunity to ask questions. now Vice turn President would to conference I Moneta, David of Instructions] like the to over [Operator Investor Relations. ahead. go Please

David Moneta

Thanks everyone. morning, to third and to conference much, quarter you XXXX TC I’d call. welcome Energy’s very like good

and on Storage; Storage; It section and Don Natural accompany Chief are and Executive GasLink; certain our Don Vice and Mexico and President, website. Operating President, Coastal copy and Strategy Corporate Menuz, other Officer company President Controller. will Events President, developments. Vice Power can Gas Financial Chief the and Executive found Development Officer; and Pipelines; under will Joining the me with Bevin and President, the President Girling, Tracy that Officer; be Corey Chapman, on Chief Canadian U.S. today A Gas slide today Presentations. and presentation Russ Senior available our Russ Natural comments financial Pipelines Robinson, Wirzba, and begin Marchand, Investors and President, Vice of their Liquids in results François President, Glenn opening heading is remarks Stan Power Hessen, Poirier, some and Pipelines;

from prepared investment remarks, their take questions we will Following community. the

opportunity provide member to please participate, everyone she’d following we this from be to If investment of call to the two you order limit contact yourself the are with and questions. ask your happy a media, Jaimie equal an In questions. Harding that to you community address

financial elements on our recent corporate ask reenter queue. we questions you additional performance. developments of that focus strategy, please have your our questions, our the you and key If industry, Also,

detailed the operations Hunter to our smaller financial I following be you discuss them questions some detailed would call. relating or have to you pleased models, If with and of your

statements begins, are and include Russ our to uncertainties. today you to important subject that remind like forward-looking remarks that I’d Before risks will

Energy TC filed this earnings we’ll Regulators with please presentation, and Exchange with the see refer and the and measures information as U.S. such or comparable comparable during by on funds operations. certain uncertainties, measures comparable non-GAAP and comparable measures. considered risks other these comparable be interest, finally, more These Securities share, to Canadian to generated taxes, per and are For reports earnings, Securities from earnings And Commission. amortization EBITDA, comparable depreciation and before

similar As a by other to result, now With comparable the may that, Russ. entities. measures they call over be not turn to I’ll presented

Russ Girling

time same people that the the every the of businesses capital plays take people in American deliver services footprint. When difficult advanced the important year, our day, are March to were seven and This I’m us and you you, for global all been has the David, decades for delivering a United across morning, COVID-XX and powering economy continued we the this our everyone, to responsibility months provide that infrastructure given a much very declared Thank and American and millions designation projects. of this of time to States on that we’ve all at North role Mexico that the Clearly, many in thank for proud families pandemic operations good need deemed past vital our joining and today. seriously, essential many and our critical, both in We Canada, energy come. rely construction the was the daily projects continent. energy included North across

EBITDA exceptions unimpacted utilization obligations of have the largely where we and flows in infrastructure and our COVID-XX, volume always, we historical from fulfilling levels prices. with operate. remained employing assets. manner, and associated communities largely supporting from operations brought our coming suppliers safe few with to of with by Despite the workers, and/or energy short-term business critical regulated be reliable conducted been and the As a the continue assets, to challenges of our have insulated thousands norms, comparable we underscoring the nature throughput our contracted volatility commodity long-term XX% seasonal and line With in approximately

result, report, Today, our energy high-quality from continue capital industry-leading results. in quarter projects. $XXX financial highlighted growth of produce advancing the And continue long-life our are $XX capital a billion As third secured of we realize it’s to strong to assets portfolio billion our infrastructure program. expected we

refurbishment a strong reactors of their financial continue Bruce five XXXX the fund In capital Power market program to position, despite at billion as year, life addition, challenging under we development, of to took long-term extension and we projects progress conditions. of steps $XX significant capital Earlier our expenditure this including part another our program. maintain

we more liquidity debt fund issuance our enhanced well-positioned continue activities. by committed we with from When industry-leading our United of $XX establishment than the flow operations, of and billion the to and in be and growing incremental facilities States, through both cash predictable Specifically, to capital combined Canada various management program. credit portfolio our long-term

we year essentially share for And cash remains comparable expect flow our to be record anticipated solid similar and results with XXXX. operating the full XXXX financial outlook unchanged in forward, performance continue. Looking pandemic, per we produced despite to to our and the therefore, earnings

know profitability we we’re social responsibility. balance While our ability safety, of ongoing proud and our with financial success our to on environmental performance, depends

reliable of We do have always that operations, track safe and can a recognize we we but record better. XX-year

to to and what Don societal a of you quarter our data As of landscape. in our look sustainability and doing. we’re the learn access principal’s It some an financial TC all overview, a with few visit Energy focus for provide improvement remain brief our a value, resilient, environmental, these future. to recently result, energy and website demonstrate beginning to in matter third at a approach sustainability and published will at finding reporting. stable, all reports long-term continuous enduring, sheet. our performance results. and our we stakeholders. better the They business on while informed, review our energy the economic delivering liquidity report fundamentals Together, ensure social energy while a I’ll financial most an recent developments our and today responsible means evolving and on comprehensive needs of as safely, Sustainability remains is that topics expand a governance today’s provide people that transparency reliably our solutions Energy’s With understanding more rely economically of we meeting on future. and of in focused about and TC We of XXXX our just energy ever creating, continuous moments. review results TC evolution ongoing and these reports to shifting detailed ESG on encourage on into more on

the operations were So excluding was $X.X billion, billion. three from while comparable per certain generated earnings to $X.XX months items, million ended compared million common XX September funds per share Comparable or share comparable or for were $XXX $X.XX in EBITDA $XXX XXXX. $X.X

lower operations these amounts the year. or ended performance earnings in of common assets, for Comparable For billion service $X.X per similar to X replacement were by of equity assets $X.XX $X.X marketing the our the $X operating from income share of or to our was component sales comparable major Power reflects program to from program. placed a from of Bruce amounts partially as and to XXXX in well as comparable liquids far. funds effect long-term same contracted business, months the our $X.X legacy offset from of September contributions helped so due nine Unit billion solid Each new capital reported last period billion also were billion generated and XX, fund contribution compared $X.X million certain low of $X.XX billion and This that rate-regulated into XXXX. assets EBITDA the secured

about a businesses. core make our Next three I’ll few comments

these volumes X.X demand with today, be Mainline day, approximately Bcf billion the cubic Gas transported projects of associated receipts capital receipts volumes approximately At Mexico, the feet system to capacity project NGTL in time, impact Villa over customer Pipelines will our remain pipeline removed period Natural same moving displace last or the COVID-XX X U.S. for and Tula Reyes Columbia, in our a pipelines broader in moving XX.X This this Canadian billion nine of day network a same additions months our $XX our in cubic to coal. similar important and services role the our in the the Coastal despite year. a day, GasLink U.S. business. project the economy. of year. Asian billion are and which of broader across Natural XX our significant network Western advance Natural Gas an with seen feet billion feet first system, delivering greater of our The field project Each play can Mexican through across Canadian clean the de markets cubic North British our expansions than the we averaging amounts includes Gas Firstly, on American continue to program NGTL network, strong, the averaging

of part this approval billion system $X.X activities of day XXXX construction total project. April expansion The provide recently incremental us Canada to government to the from of will we’re of of feet cubic have approval NGTL XXXX. program, As billion commence a a $X.X received pleased for will our by of this program. capacity allow That

we expansion being pipelines States emissions an Elwood XXXX. Colombia’s and Access by effective case along under over natural Turning serve Replacement right-of-ways. to our now increase transmission operating and to replace, where rate allow is approximately beneficial mutually collaborative this in expansion system, later outcome project service Transmission in will XXXX, the half modernize Midwestern time, in of to filing utilizing expansive system expected customers also years Enhanced it facilities recover growing our rate our as meet costs rates X the the requesting its In investment the through reliability and prudently into of great a continue low-cost first of Horsepower needs Wisconsin improve US$XXX process in us At FERC, our pursue in-corridor allow XX Gas facilities, and fair future to Section existing of project Like plans a million negotiations. the Gas customers portions us to access the our of facilities, in incremental to historical will return a Gas in settlement Also maximum with our Colombia July and to provides U.S. investments. reliable with with well the example same a long-term Pipelines, file utilities while July, an seeks in system. existing case, find another this which and placed February United the certain It’s Power Columbia be transportation include of will demand as a and contracts. incurred system to gas. on U.S. announced upgrade the that the reducing are Natural our for second ANR that

facility in Canadian connect the continue Basin day on Coastal and Gas advancing we With that GasLink export workers Pipelines, to feet station abundant Kitimat, a LNG reserves way along activities have cubic Sedimentary installing this Natural been Canada pipe natural and Western of right from more than the gas Columbia. Finally, XXXX British construction on X.X the will facilities. summer, billion work project compressor meter

scope Although to permit not the due significant the impact to have project continues We expect do impacts. to and future the to our results review on equity delays COVID-XX contributions costs a schedule and project. increases,

an that XXst through an option have opportunity XX% with to equity GasLink with acquire we in project. work to a Coastal agreements to project that continue nations them to invest the in provide Finally, pipeline interest executed

during Turning first in months business, Liquids crude volatility to of first despite quarter or oil results during nine generated global markets. the extraordinary the the solid which our XXXX,

progress approximately long-term time, make over for XXX mainline very with the market and Canada, XXXX to seek legal as the and pump be XL which Canada-U.S. an is continue is from are billion our volatility plan annual the It in a placed project generate Alberta government completed partner. activities crossing. union construction to with The is continued over basis completing completed advance. In of link Gulf who same our stations opportunity building the Liquids Keystone revised an of we and environmentally the of way. billion we XXXX. the of credit continue of and Pipelines signing construction In EBITDA on September, solid than XXX,XXX At Natural project require of and stations energy XX Alberta’s on would advanced border to and participation A strong right-of-way of In the energy service, a Also placed project US$X.X benefits the Natural has final high indigenous construction managing important we its pipeline day thousands permits Keystone underpinned Midwest XL, into guarantee authorizations in XX the announce U.S., we various X,XXX works matters. in more of billion markets American pump to will US$X.X nations providing expected Army will pipeline and U.S. agreement project, the sustainable barrels project and produce U.S. both responsible U.S. jobs results Corps US$X.X to of and we expect XL has with infrastructure. by a partnered a reconvene to agreement, very during while the kind Coast the contracts to into XXXX. the contracts Engineers acquire businesses, our invest late the underpinned serves necessary will States, for along Mainline a Keystone as fully year marketing of is security and equity continues by union paying at continued Law While impact Once important once Energy Law equity with had quarter, To approximately to we long-term approvals project, counterparties. in expected in regulatory Canada an that advance fourth take-or-pay liquids level be kilometers government and to Keystone facility. valued a the Energy’s that to to create on the the continue investment and a pleased the significant the and investment with are it to the an billion. incremental advance North business, investment for formalize facilitate quarter, both United construction it facility. third take-or-pay credit under service very $X sharing equity refinance in historic additional largest the into will in into

Moving largest matters have carefully U.S. the which pipeline, energy we’ll refining move barrels construct Coast. legal regulatory the Canadian a to to continue of responsibly the continent’s forward, sands from the the market day Gulf oil produced manage and the various we as capacity to XXX,XXX will in

commenced In on Turning now component where took Bruce which replacement offline. to the nine that Power continued January, results first Unit program, MCR power, to this the produce through Power solid major Bruce of also unit year. months work X or

with and place in measures the October prevention project ultimately extent pandemic. on to when X, ongoing worker In expect Unit $X.X management Power of the MCR will billion duration invest of that and continued outage into additional Replacement We a under of majeure well the The for Bruce with and other Channel commencement on expected targeted Feeder majeure program, the late because is independent the as approximately management milestone system X resumed force Unit MCR early electric quarter. refurbished through units the as plant depend asset the the of program May, for asset said, the work. global operations the XXXX, At third X Program. X and March, That operator majeure same contract On completion. and major Unit The force the through declared its safety. with a in as time, on MCR X activities impact Unit covered the COVID-XX. work the Fuel achieved force all certain

growth they’re financial $X.XX and to to the share underpinned per be operations, in billion is over XX% program with the long-term dividend. they funds dividend our to So from outlook common performance will cash earlier Based cash us expected increase all our advanced in the XXXX. TC and that of Board visibility of grow Board $X.XX by generated we billion internally summary, representing the and the Directors today continue businesses. XXXX service have an strong to enter approximately to to Directors invested into contracts regulation future, our XX% X% earnings has $XX.X to of invest of and to growth which quarterly $XX year, declared expect giving we of same cash are share, on we $XX an maintained through earnings leaving flow of on Based earnings enter service. secured generated our program, this Over equivalent of consecutive annual and increased XXXX. continued raised the the they that business as $X X% and our core the of This projects in amount consistently flow, completed rate ratios average, basis. our generate as in expect represents with expected an by our by end promising XXth common strong we X% for and to Notably, significant of or comparable are to year annual capital service average base billion of is timeframe, us cost of that strength on date XXXX on XX% to dividend that advancing realize, at to the a the per those payout We’ve we billion approximately projects flow coverage comparable largely Energy’s X% of dividend thereafter. approximately performance

on my I’d Before I pending offer few like close, to retirement. a words

always X,XXX He’s Chief contributor succeed François our and will As a thinking, significant X, of consistent navigate to the we and the of to entire team that previously executive been continue challenges I’m employees the they strategy that the that been our Officer, now he Operating five at join François Officer me will discipline part our been with capture displayed has at confident company over January and announced, as vision opportunities the Chief our our ahead our XXXX. committed values persistence. Poirier our to and decades. for and and to of the effective come TC ELT President Executive here the will growth enjoy Board plans. and along dedicated our number has same lie you’ve years with and integrity, execution last

our Looking demand services functioning the service essential and to strong. forward, our American I the remains and of society an North will assets economy will the continue for the to to provide expect

Power for Pipelines, five have Pipelines and Mexican significant Storage and Gas our platforms We Canadian, and business. Liquids growth: U.S., Natural

long our record advance As flow on earnings, dividends expect program, we our $XX growing share. cash of and secured build track to billion capital we per

We of projects stages project the other also have to footprint. like opportunities and $XX emanate the of asset advanced billion numerous organic in in-corridor today we that and development expect Wisconsin $XXX extensive million from our growth announced critical Access

that, Looking forward, on to and position. values sustainability, ensure to quickly signals according to as results financial responding remain I’ll to our market financial our on safety, and we grow we quarter provide with you value. working we third more With and turn will focus and continue it shareholder will signposts some to our industry-leading Don who back resilient details

Don Marchand

everyone. Great. Thanks, morning, Russ good and

As results issued $XXX million to share same $X.XX XXXX. was attributable common the for third to the $XXX quarter income or share net today, in million outlined or in compared per period shares our earlier the in $X.XX per

was billion attributable September per or to net ended $X.X $X.XX in months XX, or billion share nine XXXX. net $X.XX the income of compared income For to $X.X common per share the XXXX shares

a to equity a XX% $XX previously in included Third after-tax along the disposition $X gain with after-tax power interest loss Ontario plants. the quarter GasLink, the the gas-fired of Coastal an sale adjustment incremental results on million million natural on of recorded

items, quarter management $XXX earnings excluded and changes Slide on of as third per discussed million compared our earnings. These activities per were specific also including common risk share unrealized outlined gains comparable million in for XXXX quarter further from Comparable or third from quarter or shareholders. $X.XX $XXX $X.XX XXXX. common in report share losses are the to items XXXX included in Third specific certain the and

XX, were $X.X earnings to share For per in comparable $X.XX months or or compared ended share September XXXX $X.XX the $X.X nine billion per billion XXXX.

comparable Gas segments the $XX third was on business results Natural fees. to along development decrease recognition Canadian System, EBITDA EBITDA Pipelines with our XX. million billion, GasLink increase would our not depreciation do quarter, regulated to that charges a from Slide Turning Natural NGTL note the Canadian sorry, Gas changes financial representing income XXXX. In and Coastal have due million – comparable of third income five $X.X segment compared operating than income on a the XXXX. Pipelines charges the impact entirely in but lower XXXX, net I comparable depreciation on net System through NGTL increased flow significant flow the and primarily financial increased recovered $XX in the a basis. of income EBITDA to higher as million flow are effect same through they through to rate-based almost taxes in compared net higher effect revenues quarter period and earnings, was on $XX taxes

million from the XXXX, Keystone comparable Gas an of as Mexican to a result C$XXX by reduced million ANR uncontracted of compared US$XX equity. earnings $XXX declined gas lower Columbia or September million, Gas resulting de or result sale facilities. higher $X C$XX in million due the services in higher of Natural versus operating third Gas gas by quarter, we million was XX.X% Canadian Liquids XXXX the $XXX of C$XXX million XXXX. Columbia million a EBITDA million, the system Pipelines or commencement expansions continued certain XXXX, Sur inter-affiliate quarter C$XX to transportation contributions Mexico third quarter grows Texas attributable incentive on increased volumes to natural a loan and income U.S. due storage common Pipelines’ to the the base, comparable to of peso. on reflects rates As interest This Mainline EBITDA interest on due and ROE lower EBITDA million, to weakening decreased of from and increased largely US$XX and on investment Net due by Gulf, third or its US$XXX the average from costs of expense from primarily earnings. lower lower and for peso-denominated Pipelines Natural US$XXX comparable mainly marketing million income of lower million to liquids to and compared XX% equity in deemed activities.

Third in fell earnings, Bruce power to service January its from of quarter MCR plants Canadian of along comparable year-over-year, million for sales gas-fired with planned primarily lower largely a of Storage Unit our natural as April. the Power power Power and $XX by result EBITDA in due removal the X program, Ontario

For parts Gas including all period for using businesses third Mexico quarter Natural of Gas and was income, to our XXXX exchange $X.XX with dollar-denominated Pipelines U.S. Pipelines, U.S. same in EBITDA XXXX. Liquids Pipelines, dollars of an Natural the $X.XX translated average rate into compared in Canadian

As then a and are We with gains manage this basis by dollar-denominated in naturally exposure residual realized on rolling on U.S. in streams interest losses reminder, reflected on our comparable a U.S. the debt. other. interest program income and hedged two-year dollar-denominated part actively revenue forward

the third Natural expense maturities. and by higher U.S. in the XL, interest fully million short-term the the lower long-term amounts levels lower net mainly Now the tolls quarter, Canadian to largely of to quarter items partially million XXXX, the interest in from was Keystone million projects largely interest $XX primarily noted in increased to million XXXX, borrowings XXXX. placed with on income. income in third turning million the XXXX, a expansion basis. the Interest inter-affiliate to on million expense in interest $XX same account earnings million Again, of and Mexico in lower joint the lower which decreased our in $XX for period loan last this consolidated venture projects first related XXXX on quarter primarily rate-regulated compared Sur was reflecting de segment effect other decrease of on and $XX the recoverable NGTL depreciation down Pipelines, period of same expense peso-denominated Gas for in loan capitalized quarter reflected offset of year-over-year, was other completion rates in equity year. Alberta investments due period are in previously corporate Napanee in Texas from the resulting impact in debt $XX new of interest of service share decrease System in same on offsetting Comparable mainly to interest from the The of receivable peso issuances, our due in placed reductions $XXX versus the to $XXX is Canadian lower Pipeline weakening on XXXX, Mexican income on proportionate third $XXX and million to rates Gas rate to compared flow-through included comparable Pipelines and of service Gas net pipelines. pre-tax was net income $XX AFUDC Natural tax due the income no in income $XXX and due million on income statement quarter Income amortization to XX, flow-through lower million in earnings, Slide tax XXXX. Canadian taxes Natural

of pipelines year Pipelines interest high-teens. to of flow-through of comparable Natural quarter AFUDC non-controlling third net therefore quite in be in with to and along due to effective $XX equity million increased taxes are with by XXXX. in a $XX same quarter the the $XX in share last full income Pipelines, attributable U.S. mid variable XXXX LP. were item million Canadian earnings dividends our relative Comparable Gas tax higher primarily third the preferred line we year, expect on Mexico income And income million where at Excluding period finally, rate-regulated to are rate income TC to and

that is we we operations cash generated various required in portion the issuance XXXX, complete totaled combined at during generated management also fully of significant time, financing billion, Keystone to hand, establishment of on Slide activities. capital credit the we partnership and financing and in and volatility comparable for invested from GasLink with $X.X extreme funded to are project billion in liquidity the funds XL internally project effectively took facilities, third of XX, quarter debt, completion of incremental to facilities level turning Furthermore, steps year. and and substantial our market our earlier bolster program. approximately flow $X.X Now our the including In both strong long-term the committed credit place. of portfolio and Coastal When through cash light arrangements

cash thereafter. Slide debt our capital to capital billion, expenditures billion, primarily funds XXXX and our billion, and projects forecasted XXXX. column contributions Capital of date project second to US$X.X $X.X $XX.X and natural debt of and distributions movements $X.X of financing, its of the together projected on of this sources Keystone billion. to generated to was up issued approximately due to $X.X billion total lower, billion approximately funding of be in Ontario turning interest $X.X equity project in Funding comprised which sale Now $XX.X are included billion of of of GasLink internally maturities of and long-term XXX% Coastal non-controlling hand cash dividend at equity certain costs uses redemptions reflecting power The April, the Government interest are partial $X.X trending requirements XX% sources commercial Alberta’s graphic shown along XX, System in billion column generated previously of paper illustrates details XL billion, somewhat outstanding. of and Coastal in forecast with long-term flow level to plants, and approximately that comprised approximately which The only we’re delay the gas-fired expenditures, left of of expansion. sale proceeds the the investment $X forecast a and NGTL included the of and and approximately balances disposition of in from GasLink associated

should occur. Canada of effectively position commercial XXXX, fully of period credit any and U.S., to we Taken paper navigate and $XX billion funded disruption facilities prolonged together, along and for in in committed place programs that both confidently are well-supported the with

to in operational economy, of importance results energy quality well North ongoing the business assets our low-risk strategy, longstanding of our Slide contribution highlight turning Now American diversified financial as our solid and the our capital the high essential to from new program. infrastructure XX, closing, as

and Today, strong are and long-life premium cash resilient, to a options, secure and high-quality Our generate through overall internally poised generated earnings billion solid funding suite projects we offerings. which position underpinned flow service of advancing array fundamentals, parties are of flow robust. by $XX cash remains counter attractive

Additionally, growth adapts and and investment is world replenish X% distinct dividend consumes situated attractive in-corridor our with and X% That an will an profile business platforms XXXX three expected as to both across more to our to annual landscape. required to evolving executable that in offer segments be XX% support growth further to of organic countries energy numerous thereafter. energy the X%

Finally, end I’ll we at flexibility all the remarks. turn our to call and financial prepared That’s now will to the continue for of points maintain back economic David Q&A. of the cycle. my over the strength historical

David Moneta

Thanks, Don.

to the Just from a investment to turn I that, it coordinator for over turn reminder the Instructions] [Operator conference back it conference questions With community. I’ll before coordinator. the

Operator

Instructions] [Operator go Catellier Please from Our question ahead. Markets. Robert of first Capital CIBC comes

Robert Catellier

Russ François start to and allocation on capital on retirement that everyone, wanted morning, congratulations a with your and question, I understanding your Good on role. new focus long-term. your

your How dividend capital You’ve maintained the with your dividend spreads but growth? interest look anyhow you allocation virtually does influence guidance, widening fill to with that release, obviously at. and rate strategy – any press this

Russ Girling

Well, I’ll in. start François I can and mean, let I jump

you to sector. balance for our predicated firstly, and our two maintain has we capital approximately in that We’ve and the highest strived decades. on, focusing our continuously sheet consistent on been As health. our allocation maintain strength credit ratings making It’s know, strategy financial sure

and to two to for for last been being in to our return of peers. approximately X% capital period businesses to has we a to that Historically, retained growing cash doing of that the shareholders resulted Secondly, to return. cash us core split that X% per X% return we’ve We’ve payout businesses, approximately relative free at in our able in our reinvest capital time. healthy free share a an return where that’s been tried businesses. worked of over our That XX% for growth have cash dividend. ratios a maintain of disciplined our core reinvested earnings, our ensure of being to and flow well and our flow XX% between of XX% X% a to allocated flow decades, through into has cash shareholders dividends

our to cash our flow, a of ratio. earnings about on and shareholders, XX% focused said, being strong dividend We’re approximately as XX% returned coverage maintaining of I

And and direction. we we time on allocation change pointed capital more ratios job in always do frankly, that our an take at is as is increase leverage. various in forward, in And on that that or changes. payout the move to, pointed maintaining any growth earnings appreciation What haul, should view know, order long this has the as us our long-term. reason points and reward points and as at our We marketplace increased strong at chase discipline. in that at per financial other changing the So model we’ll shareholders you us don’t point would our market you over price. will the in in capital it to the stock focused we’re and look with cycle, other to over our believe in consistency time, flow we see any quite And it’s Bob, reward cash our shareholders if in future, allocation share the we we short-term that change

Robert Catellier

that you fulsome Thank answer. for

very question has how obviously, But high the of the long other hydrogen see with interplay economy of give development I view do with the transmission economy, time assets? level a a haul had over hydrogen you us The with can early days. to you

François Poirier

is Robert, Yes, this François.

we a clearly do yet, deploy it’s our for capital absolutely as opportunity see gas days additional early long-term think assets. to but I transportation us into it

work becomes to the when business storage of would our for and foremost lot be our percentage hydrogen we methane, what and There’s the hydrogen hydrogen of power still as safety which obviously, safely in cost Some understand we going competitive. of employees is to could actually concern our fields and blended – pipelines. a our convertible operate. forward communities done of storage be into that be our generation to even in With more needs

our in about we’re the et course, longer sector term, and accommodate projects. our already affirming so resources interesting And here very blend, we’re very impacts making are then could the potential turbines us, for our hydrogen we to to consistent provide as understand. long-term a long going the that for and to storage cetera, very of pump careful opportunity and of duration power working with storage projects performance, developing theme can investing are natural are integrity, although battery on that in gas be existing a hard maintenance, And things be assessment. is There the that many

Robert Catellier

at there, sense a I makes when shot be had that? your described meaningful what’s point, but for – Everything dated. wonder the Yes. timeline complete long made? it in can I obviously any the level, you know what but if of it’s sense, it’s What’s best at investment you this dark a high the guess?

François Poirier

I to too think point, Robert. early on investment opportunities it’s individual speculate at this

Robert Catellier

Yes.

Okay. everyone. Thanks

Russ Girling

Okay. Thanks, Rob.

Operator

ahead. Please comes next Our from question Robert Capital go RBC Kwan of Markets.

Robert Kwan

infrastructure, can to continue you. I with morning. the risks there on in more touched existential think question, particularly new scale hydrocarbon to the accelerating and If transformational payout any the you a and lines businesses business of does greener to the to Thank If like. M&A? large or I allocating cause material about capital near-term, this some via about infrastructure, on ratios the allocation concerns shift think you capital the of out Good about and

Russ Girling

energy how To the are future these question to going the Robert. foreseeable like. you’ve on that There’s eye going the how has by our proven quickly the future Is out over that base which asking. future. look it’s is evolve sort our and pandemic, in the believe transition your long in a for it be and eye question, people assets, one always lot resilience is we your to business the seen have the of and question, what that this on assets one importance will that of We –

that the an As think that very cycle is we carefully forward. life the base have that assets annual basis, for look in on Natural think primary we’ll all about, we the Gas our asset continue about to and assets today historically, rate regulated They’re And that we assets we of have business. most part.

continued redeploy that We capital that is isn’t accordingly on us transportation would to you’ve forms we’ve rotate in going less going we’ll capital. in going got energy forward is assumed have and seen to abandonment delivery with place demand. to both stock be may systems on useful pipe. going adjustments today, that demand. to recover different done different to take look and And with surcharges turnover based depreciation capital we think demand both the into infrastructure and historically, that we’ve the than the on to manage, What service the change, know energy it of as we whatever reinvest, our in the If is the ability we require useful and to the energy we that then out capital rates return have rates life make that life and anticipated

we natural investment about think in that energy facilities river, a I facilities, in got also have all forms coal what hydro, experience we delivery. I solar participated our built experience is power a gas. nuclear. tell and you wind can of built run nuclear We business. we’ve in large had We We’ve and

know take, believe and Rob, I to well things to molecules François things capture long think we to but as gaseous move we’re around, said how we’re so like to don’t hydrogen occur. order well-positioned investments that’s what just And we in just as said, going that those the positioned as transition, timeframe as they

our whatever into are and and capital continue pace going to the we’ll systems in be monitor to the in system, things of to So required future. redeploy other depreciation look delivery

think do we What I that footprint. outside changes Bruce our we existing sooner see customers accordingly. lot one the an of replicated these across today others building and has can’t capital existing be things that strong probably found a advantage. mean, in example, advantages you’re touch continent. our The of a for refurbishment, is footprints huge I of coming than competitive has adjust been We can do

believe that And So that’s I it the things going positioned well we transition think as to some we’re manage occurs. to as change, time. take

other that other than stakeholders scale may people the amounts and people working last businesses some and on I and think we’re assured, about Some transition, sooner bring of is than permitted customers, with actually guess literally but of way how to later, it. top world anticipating, guess businesses reality. of that into trillions them getting viewing I deploy are of may as deploying a to happen large rather we’re And the this into into dollars we’re a knows lot regulators, large longer capital projects, them company a our capital rest

capital, believe a So opportunity many yet for come. we to to going the great for that’s is that to of kind that America the extent North growth invest us years

Robert Kwan

transformational line just to And the or large a M&A green business scale pursue either your willingness business? infrastructure into to up within bulk on new get then really

Russ Girling

a we I’ll a our I can and I think shot to look shareholder take let bit. will as value. in disciplines don’t change for François going join I’ll then that mean, that opportunities add

the we the a price and economic confluence seen you’ve value. in add add and both act at as can shareholder on that strategic past, opportunity, of So us

will and we sense always the us. current time, of arise, for financial the around in add. be can to allocation we’re – best value. the And shareholder but And sheet, past on access so that lookout that capital. things to to that obviously, we being to nothing capital our one Maybe cycle will of with the strong we balance if have one act reasons sort And all points make maintain of opportunities on the opportunities position. the at on François is in balance at at add be When sheet and kinds we our priority able there’s the we those strong position disciplines believe slate, number a positioned

François Poirier

capital we for just to demonstrated not the we think that, transaction, a organization, the competency the a competitive that a only question, Columbia past from have in add Robert, you advantage. very well and Russ, look Maybe we’ve and you what I businesses our thank as integrating discipline to into Yes. but view at of standpoint,

and present an management do those situations extent, and opportunity to of of the have willingness the we to the a integrate team’s opportunities to themselves types evaluate ability so. rarely types itself, So over Those presents career.

Russ and we develop over only see Storage another to want so scale do without opportunity pumped our Bruce, And to project composition to as two see to portfolio as in electrify. for on actually our continue example looks rely actually critical the mass approach our some that business build to different We development. even through storage can’t do economy are Not to we organically time. to that We Power with opportunities an build projects. us mentioned, and that M&A the respect under is

load we’re our electrify to about starting have own that. We think to electric that how

other will said, if there’ll and substantial, that to transformational opportunity opportunities as aside it. And skills grow I we’ve be of consider do to a willingness allow does M&A number more the itself an present got business. from And so us that something the to

Robert Kwan

Got it. Thanks.

the potential see negotiations, year anything just how material of I could of wanted of at in financial update you And haven’t you just get to early, you is to Columbia, company? one say the that for the get terms filing least can you’re have the impacts is to but that it a on you to finish or moratorium, with fact just fair can given negotiations? there talk if So waited any potential as magnitude, out give into the I timing know the the you

Stan Chapman

Hey, to respect our still the case the with timeline, Robert, is settle Yes, our to this attention case Stan. and is customers. this with rate

on initial out in released to basically which sheets, there, case, be top For likely position sometime are mid-December. the

the a of the schedule with work QX assigned meaningful discussions case in begin are case negotiations staff, to And So customers, XXXX. fruitful, law our In QX of prove unfortunate final other administrative in not interested has that would those that a we’ll procedural event settlement once ruling XXXX. do and judge, negotiations sometime we’ve with those had and released, a includes have parties. the likely an are into meetings he the extend that

way. a yes, the year. not this was I point case there share correct can’t respect be really With the anything I resolved sometime guidance, a extent extent will in guess time. also next be not So that we either the you that case way, And would at you’re you’re to meaningful correct to filing with to

Robert Kwan

so you Thank much.

Russ Girling

Robert. Thanks, Okay.

Operator

question from ahead. Securities. Ezergailis TD go Please of Our next Linda comes

Linda Ezergailis

Thank you.

the both exciting in Russ your ask wish best, my on add Russ, congratulations all retirement. questions, want announcements. to And the Before to François, you I my and I

Russ Girling

you. Thank

Linda Ezergailis

potential U.S. across not Columbia just case your network but tax Columbia be just into might in incorporated gas rate the I’m pipeline about U.S.? just I’d how increases any With – add the further settlement. to your prospectively and in wondering rates, question Robert’s

Stan Chapman

Linda, Yes. I Stan. is equal. this All that. can address things

rate rates mechanism obviously our in are us right for implemented. any system. file would our that increase some We sort income to to in the rates. We ongoing embedded have will higher that recover now include our that file case Columbia to should expectation a cases allowance have settlement ability And tax federal would have be be of the

filing system. on planning are rate a next ANR case on summer also the We

tax together to addition, and our the about filed Lakes we in federal increased well. assets. have cases two-thirds So be we address of will as across planned Columbia of ANR And there U.S. any also rates represent revenue in income on and GTN – XXXX. filed Great stream rate our all

So address allowance mind, reductions. place those tax tax under embedded fixed in we’ll XXXX in to them order. have still have rates, which mechanism XX% the in the negotiated from our higher particularly in relatively a Columbia keep also short are income on And prior the system, about of federal revenues to

Linda Ezergailis

Thank you. That’s helpful context.

bringing the timing be First what is just Moving additional the with just I’m of might to this partners forward. your with scale recently be parties? Natural question guess Nations MOU this project? maybe your wondering additional on might additional your be? financing investment I blended wondering How And going signing. exciting haven’t joined Law the already on might on – announcement respect could on plans, that a What Energy meaningful MOUs financing the influence to plans how this and

Don Marchand

with I’ll start Natural it MOU. Law it’s then respect Good morning, and Don. to the over Linda, turn I’ll to Bevin,

is for our Alberta and equity we’d will as plans from fundamentally be on. remaining somewhat, from And the finalized funding of when of funding and injections will in deal billion come proportionate that’s of of haven’t changed. that US$X.X Our hybrid The investments place here, previously, but Government KXL Natural depends extent Bevin and have hybrids be third-party but the US$X.X the To let still there. two-thirds turn about where I’ll will investment. to probably probably we issuance billion the outlined those at. debt that on of speak we being that Law guaranteed DRIP of reduce are About facility share really the extent DRIP would funding amounts

Bevin Wirzba

long Thanks, with and thanks TC, have but is represents for the with a closely know, and indigenous nations, partnered of a Alberta to historic Sure. in in question. bring we’re Natural Don, history we’re and U.S. in Linda really with the you working proud nations way, to Law Saskatchewan. partners. who Energy, other Canada as similarly And in First working five the them as tribal nations Nations in

we a and environment development. the share set core their on operating We’re sustainable traditional and values territories, about of

the those right can here, to We those hopefully we’re once working finalized, those And and on the hard level of public fourth now. investment able in getting agreements we’ll the structure they’re make anticipate quarter. done So of be transactions.

indigenous with of addition, suppliers. and equity directly expect jobs guess, In through outside $XXX nations benefits the to investments, those indigenous the we I project of on create to KXL million

exciting pretty in them all all, project. forward move part with So to being our of

Linda Ezergailis

additional and cost factors opportunity, to on is for or direct the Thanks of the network the wondering versus might power what across economics on I’m and consider renewable what Energy’s compressors question Maybe context. wind not? you a just converting load And on pumps? beyond current those TC run savings and solar follow-up

Bevin Wirzba

energy when And the I both system renewable one and think of top into X,XXX renewable the megawatts would to XX PPAs the it factor in you It were is in some enter system load be megawatts. extent world. Keystone the XL, the base of over to two consume base several able us the we to would on hundred the would energy. make corporate purchasers between

scale there’s there. So substantial

of on for you consumed us electrify their opportunities to to there expect greenhouse gas end we As of I of for is Natural system. turbines over about lives our stock tell can along turns an some also the thousands over considering the hundred other the reached be was forward reduce we us opportunity the gas to emissions, that be useful energy for think as going capital compression and of alternatives. horsepower an there our And system. to our moving opportunity there several – there’ll Gas that’s

or don’t carbon into capital I what factor power competitive the could renewable in emissions is to attest other jurisdiction decisions. cost the of have the emissions, as of cost in to that starting every be. jurisdictions to the we sources are is many with program our We carbon clarity to as plan very allocation certainly going

meet us to that But impacts. be load. in difficult current factor you our factor there quantify some to competitiveness, projects be it’s for for So developing actually those us opportunity concerns to you when own reliability renewable in will

very years, next We’re several over Linda. confident the

Russ Girling

think I maybe add And that, just Linda. I’d to

asked implement into and You our legislation moving of life the policy going criteria on always view and we’re obviously themselves manifest to actually be, we’re concerned mean, assets. into And had have capital capital what been moving the have about would the initiatives initiatives to policy the if are, over return obviously legislative of we’re these recovery regulation. looking of and the frameworks. move milestones frameworks, for, – from what the regulative then that which announced I

cost are then carbon those put we for, regulators going to think sinked they’re be looking be. our some I going with cost regulators least up And analysis. signals the when where in are forward pricing using of the benefit we’re are their to alternatives, how

going to over pretty the some into is it. turnover So about And but going I going. respect that’s said XX, infrastructure ours occur. changes it, a continue as the participate direction kinds is there’s to long-term. earlier, capital tremendous XX, years we think, stock these be capital like There’s opportunity see And we’re the are emissions for I that that marketplace in excited deploy to over XX XX, to going the with uncertainty reduce company the as next to to this are of and

Linda Ezergailis

Thank queue. jump the in you. I’ll back

Russ Girling

Linda. Thanks,

Operator

Our next Please JPMorgan. question go comes Tonet from ahead. Jeremy of

Jeremy Tonet

it a Good energy off bit. a bunch here, kind Maybe just but just out of maybe transition on starting morning. rounding hit

seems compressors You the sizable it pretty like about talked there, opportunity. a and

types? generating as than opportunities here. you’re fuel with ballpark far pumped speaking, for participate And wondering CapEx electricity be see kind able in mean, to the I a could as if generally That’d be hydro, energy do of it kind billion Just along what helpful. seems to more there. other renewables share like of transition you few compressors

François Poirier

access fleet would where regulatory only – transmission the a question, time, of – literally of like supply in the of for literally of thousands megawatts. actionable might and available, generation as Russ is said, tending this need supply grid Obviously, looking the entirety for preferences. to to subset thousands one do in – Thanks reliability is the the decisions, into be going upon our of policy. Jeremy. near-term. our up but to we adhere the access would the are regulation to we’re to Obviously issues allows risk legislation factor gas all continue catch And signposts in compressor be that those from equipment And direction, policy us over the those construct we’re until we and our for factor to backup things like to for trends conservative in and backup as be

we you Ontario be and particularly investing value Alberta might of projects storage looking scale. in, parts pump in other one to is chain, at at and significant As the the our obviously in in see Ontario, interested

storage. are We’re we’re so other hydrogen extent around comes proven it’s there about other for think and global battery already opportunities electricity about we opportunities to a looking technology We the on us for And storage. of for looking for that’s pumped talked pump storage a scale XX% renewables opportunities hydros, from other there.

increasingly have those that diversified resources terms competency that as to grid. before, are generation we Alberta, sure opportunities well-diversified ours. be look trend of firming we’ll for types projects different as of I possible will well. we make of investments transmission towards the as to to long because us And in and – It’s believe develop regulated. reliability extent as developing said linear it’s core along want a consider theme the in that’s renewables, fuel themselves the continues present at the infrastructure as assets, generation. mix we definitely To we to will be resources, And continuing to some We of firming here the in well ensure important projects,

Russ Girling

I provide can some Jeremy, context.

at in Your our in basis about continue flow to it question what bigger is takes this earlier forward is, X% this company is. is a capacity is to yes, to my of free for breadbox, to grow going than around, But it cash annual of an back going comments that on neighborhood XX% X% the $X billion.

we terms billion capture And things are find dollars, system, François capital the investments forward growth sustain the governments current get mean, of the program I measuring going all our that company? multi-billions positioned said, to on $X you mentioned, And the of well ongoing measure on you’ve company can can rate billion of what basis. of if the capital just So turnover, our $X of We trillions an to in we of this about you’ll stock that think as is beyond annual growth billion. extremely in an basis to grow dollars. $X we’re need

the the actually doing Power next meet less, those refurbishing If years, looked a just things things Bruce much billion $X that today, that desire the for year to you down of of some talking we’re the other at kinds we’re emissionless reactors XX about. dollars road that of just

with in deploy to confidence the statements us continue. the desire are trend is going gives a future to to and going what we’ve This is made People that’s growth. to deploy that respect across capital North footprints largest we the capital And position more the of into actually and make to America one have America, that occur. systems and environmentally North more across energy delivery making best friendly. So efficient

opportunities back things got So in deployed – the to and of we’ll the as we’re that about. very talking be And capital confident on position given assets these capital, recovery nature our our contracts that of our the returned of marketplace that able that capital’s us, into comfortable fundamental will we’ll today. continue. capital, get on we’ve regulated and from return a our return businesses to and and that it are of And deploy other we

Jeremy Tonet

distress here happened about these talked seems being I you of detail. LDC year, And on helpful precipitous of the that during Thank And like quality update we you quality the transmission, historical assets cheaper assets But than given for seems Great. for this was there a map you’ve the in side, wondering possibly That’s before interest markets It spades decline, kind points could could the I what’s then, thinking was given quality last cheap stress. there, you talked just U.S. the in enough past. it periods you electric you. the have up that. much presents if PEs And even easier days. year. assets talked maybe in about high be is of us picking being not like maybe about like

those that wondering just on provide So you could thoughts topics? any

François Poirier

as I look by distressed at improvement. always high opposed think M&A has underpinned assets points This distressed been us think strong formula cycle, to quality as we have, we Jeremy for acquire about in as sheet. patience that assets the we a successful and to require a balance

other think that And of assessed I looking on feelers. to some I part at side capital price. implied growth. own requirements, is to sent opportunities, my different purchase if capital I And that we’ve any of offering be need would And we’ve a own you the could the cost counterparty. implied the of as raise the compare the have So willing external the out acquirer potential I in and inquiry, of were capital cash the fund would that my that to form of of I is in that sources cost internal

in time don’t think enough consider be But So has we and to yet. a – those patience volatile environment ready. quality any our would That themselves, a very to transpired present if be for be high willing asset. we’ll opportunities we’re observations partying counterparty with

Don Marchand

here. Don it’s Jeremy,

billion position program proven beneficial the on ability secured $XX are a replenish in to and having of We that. our

– but to it’s same comprises our reliant the grow, that not for today. stuff on we’re again, M&A portfolio looking high we’re answer, we’ll be So quality – for François patient

to the up looking spectrum. risk move not We’re

not might jewels would we that crown GNP cases, entities transacts We’re when it the many will we are sense. in we what not and sitting distressed now. if most act assets like. of transact and the are, or in who see North right But looking given And at America in and want makes

Jeremy Tonet

Thank helpful. That’s you. it. Got

Don Marchand

Jeremy. Thanks,

Operator

question of comes Hope ahead. Scotiabank. Please go Rob from Our next

Rob Hope

Russ François Good and well. and as morning, everyone congratulations

XL, on on business U.S. that initiatives earlier? of Just growth a to you oil next some crude another you’ve that those sidelines, your with you recycle at have administration capital mentioned the of question look Keystone if lack looked allocation, potential capital there? Could

Russ Girling

policy a XX two very still will or heavy to continue refine the need will is what the environment are today U.S. world’s refining that oil, in million U.S. value. still and is But, barrels still East, sort the Canada. resilient always that, Gulf the most look that’s limited, quite Coast options XX start that – we I the degrees that of in is indication to Every to add shareholder have the And mean, oil, I and for that the even capital day in that going fundamentals, know we the way a Middle guess, complex is Venezuela The there Coast complex it world. with in oil. frankly, deploy we Gulf sophisticated largest of the scenario.

so our corridor is the Keystone an corridor. as And extremely as it we exists valuable look at – today

XL minds. that has that’s our in be look to and forward a Canada, oil continue business complex. But to it. to world How that be expect result something demand COVID, world’s issue is gets it as crude the a obviously and biggest longevity on that a will gets very why you seen to other today corridor the has And in stability huge standpoint as that value important seems destruction the most utilized today. we’ve at the is where being we an high the from going That’s question of egress. out, expect are borne and And even continue things short at the That is forward. Keystone to rate. very, that of lack we that still third a largest the industry going think industry environment being TMX in why largest reserve That’s sophisticated to the run important. in I refining connected

fundamentals. So those still are the

long look for on and that any available who’s I fundamentals And from Don, those support at look heard now, with hard to contracts. you’ve sell and XX capacity had would we counterparties. be then terms we’ve to think François and long-term year credit base would Keystone, at more right historically, I to worthy capacity we fundamentals, done if what we willing we say, able

Rob Hope

little will from NGTL XXXX? over for you altered delays Thank to the how right. kind color And XXXX capital approvals schedules All deferred of how just then to on And have and Can the add System. there? you think of pivoting you that. a be construction bit much the

Tracy Robinson

Sure, WCSB. competitive. really Rob. even period, the and this very critical prolific volumes NGTL asset WCSB And been through a of strong for positioned course is is have the COVID well. very

go was capacity or result year. was a out earlier this that we still a infrastructure to little So had bit moved was perspective, We from of to The we market needed. delay critical. season either an all in that a planned timing of of access is check place of the a a it portion market a to on around just it year, is, facilitate although indeed did open that season to it whether put the that

so our accommodated that. seen timing little as capital result, a bit And you’ve from changed a we’ve a And perspective. program

increased recently program. has finally a just approval the – had the thing had the we course other that’s in the happened we in that of If here. one is, of you or of received number conditions We got approval – delay And the it. XXXX enhanced GSE

like move program altered capital the in, the shape of well. So the as that our delay program has of

add I but that then So net remains that capacity back $X out XXXX but over we’ve the in and the billion and off providing we’re laid in same. the of the movement think we’ve our just the come basin to by program disclosure, XXXX, on XXXX

Rob Hope

All I Thank you. right. that. appreciate

François Poirier

Rob. Thanks,

Operator

go Our Ben next comes question ahead. of Please BMO. from Pham

Ben Pham

François announced on then, when Good analysis? or incorporating allocation, look the comments a just your this effectively taxes IRR forward including this projects, pump on carbon theoretical hydro emissions DSG store, as you’ve capital like is really, just Thanks. carbon snow no you’re ANR Hi. new morning. posts a in doing around On and since transition thing started? you are you and and

François Poirier

the for Thanks question Ben.

part – ensuing point front the question analysis our this so this us? new years. to your at of for of the is couple of emerged think, I think it’s I the was over forefront

emission greenhouse We’re and about gas our thinking hard own long strategies. reduction

standpoint proposed of us capital to And have standpoint, it’s capital a we’re it’s that going about allocation various in I coming regulatory XXXX. forward. legislation report talking we’ve forward for our allocation. here as business pin been a corporation and that’s a think do our be. think focusing of that we of our there’ll about in existing We down qualitative economic run whether a into We the the in up to until the and more are as impact of emissions we clarity for or But our emissions carbon clearly from taxes on objectives on actually impacts might difficult from units. or regulation looking incorporate be what costs economic going economic they’re scenarios signposts, to objectives potential to as one impacts

Russ Girling

think of prices, much to example, prices. you make we allocation as on look forward, commodity going but capital we a – pricing, what and tell is that fundamentals decisions into there’s either we give it to those carbon too a look then, this XX commodity As for investment to a we do to us, view Similarly, rate look try incorporate uncertainty forward for with wouldn’t a about of long-term assets. to like. we capital, based deploying allocation market we’ll thought on our our and confirmation which Coastal finance pricing we What similar base, forward that can year of uncertainty or look And make the what primary understand an the of to XX going on about there’s on GasLink get capital XX respect that don’t with it’s based just to of decisions term return contracted structure we because view for get carbon capital where through recovery year project that long-term example, capital a in contract. capital

to they We’re not scale going our say say is what are be. view project. to – we prices the betting decisions. What counterparties pricing bring in that? commodity a investment this security the What to That’s on provide do or capital about of of need community future how make we that? is about large what case, carbon financing And the the we to allocation willing that

in regulator, think those thinking projects forward, When may put that as approval based relative or don’t their in past. of but our reduced or of emissions, our in of for cost. other to larger putting approve a with benefits be decision. regulatory the societal up But front ended has those put again, cost, criteria past they what example, in for on is a other costs front our trade-off the have it So incorporated about in regulator, those low always we making in what the we are been in we’ve approve whether and

As they made other well It’s or on environment you not know, on the as communities. but And impacts national conclusion then they’re come just in pure or interest of whether economics. always in to on public not. a considered weighing economics, interest it’s as a

– get allocation has years our it decision-making, capital we’ve as So we those into to we’ll been carbon continue place based people they’ll going forward. And conversation how a that’s these in many required things on think and for is, having decisions as their about been incorporated be. investment

Ben Pham

in the sort X% your that do on or it return? for think Okay, Bruce to more hydro great. you it is target on X% Thanks return? of NGTL more that battery storage, that. Is And an where range, fits Power pump of sort return,

François Poirier

Each an expect goalpost and of rate-based would ourselves, had of the commensurate two and about the we have allocation Bruce type be goalposts would with the treatment The be risk. underpinnings. yet that returns between has and counterparty conversation other would not of the structure. we those a So risk the commercial are type allocation

conversation. Bruce return. determine that the we So think where the have that it’s range the NGTL the between would land, risk not of And between yet and we the of parties had but somewhere return two as type allocation

Russ Girling

have of But is I all within the can end preferences to that our continue. think risk range thinking. field into this spectrum sort we risk to that that it’s in expect are us of in operate on, cases in to don’t as said, commodity lower for that you time, have I take that that some expect or incorporated any risk forward that range, allowed that that like things expect

Ben Pham

retirement, Well, Okay, that in going and I’ll congratulations I’m to great. not to tough the François, and calls again. Russ, sure leave appreciate best miss firmly, it. question our these for all thanks taking the you’re earnings Really over years.

Russ Girling

Thanks. Appreciate it.

François Poirier

Ben. Thanks,

Operator

Our of Satish Praneeth Please Fargo. next from Wells question comes ahead. go

Praneeth Satish

let my to and go Russ congrats well. as Thanks. François both And I’ll

than of at some Is recent to Columbia? hire the wanted ROE a at looking it the of XX%, looks for surface, least higher Columbia little Just rate other rate the requested on case, the circumstances cases. specific bit some pipeline that ROE there here

François Poirier

when mandating preferences, Yes, is what look risk just ROE we to think are you overall, factors Cap setting XX% respect their that within (NYSE:M). with sparely with risk I DCF, FERC new XX% at in to our policy respect

at return high that But equity So we’re thickness maybe it’s XX% end. the on the a with operating a our XX% environment take today. justifiable is in given equity

Praneeth Satish

it. got Okay,

And sorry, ahead. go

Russ Girling

that in a of I is that equity say, into would that is has standpoint, in be in clearly your of capital just capital think perceived of the The from environment ROE the we’re goes And environment equity certainly equity cost we’re into which what our cost industry, is, don’t to I been the you clearly injected ROE in. of that risk the an can has cost argue ask. the we declined. consideration

Praneeth Satish

advantage takes? is And what’s building others, both the battery more Is Ontario a guess have puts just out hydro pumped doing versus you then least for of at one curious, the expertise what additional effective storage cost and I’m or project than I investments in both. in that

François Poirier

at there’s of the battery here, a scale project – alternative in eight there contemplating certainly, reliability duration. Meaford that is the It’s duration. can hours a standpoint, a and From we’re deliver is no megawatts. X,XXX that scale, So kind

pump reliability But is there a yes, duration. a it’s question. storage at also length So cost advantage for that of

Praneeth Satish

you. Thank

Operator

Kenny comes Bank Financial. Patrick question from ahead. next of Our National go Please

Patrick Kenny

everybody. morning, Good

required Can project you until point. have with Alberta confirm you the border-crossing after place in and and look as also claim guys fact up well? your in this far back KXL, essentially can, all just is you done you is retracted the the what Just might as have? election, might a the recourse good taking that you job on government infrastructure presidential permit maybe re-file legal NAFTA as the Assuming to previous if

Russ Girling

Thank you, Patrick. Okay.

have the in taken international creating we’ve past listen the all mile X.X that completed We have We this year. border-crossing. made the basically But stakeholders year completed project. for vision and a the earlier new to to progress great

unions, five American First for have a as the leading with fund established agreements those Nations we’ve already North discussed. energy for trade green equity partnered We with unions labor as partners signed

So this project we’ll administration by we’ve pretty a taken infrastructure with that responsibly step progressive we of the believe continue way, in sustainably. the take going expectations it and we’ll and aligns either demonstrating how forward. the to develop positioning And

proactive are And it. project taking approaches approach so take, certainly advancing more and can continue the but there positioning recourse the we’re the and a plan we to

Patrick Kenny

last LNG comments. to Thanks there’s on assets into Okay. relative get this can towards if or global or those towards your accelerated already we capital not invest thoughts your network curious decreases extending your increases and push for Lots basis, time infrastructure updated on gas transition, discussion energy a whether say, year, to the clean around of just willingness LNG energy

François Poirier

It’s Thanks that question, François. Patrick. for

of gas of we fired. purchasers the There’s fire the reduction that is meaningful. the of extent obviously clear First all, benefits are gas to are LNG with that replacing to generation greenhouse coal component natural a LNG think

opportunities talked not might will be I evolve risk going over talking and where on forward, our change. where allocate the allocation about time about forward are. As preferences is capital Russ going our our capital will and What based we model

of extent we credit in worthy counterparties. the to by or underpinned long-term have capital either the so And with to an opportunity LNG, contracts in invest assets likely regulated more case

of We’re type that to investment. very open

of opportunity it. would value an chain, the part in along if future that so evaluate And we the presented certainly itself

Patrick Kenny

Bruce is with confirm green legally candidate be hydrogen? refurbishment that And the prohibits just with from agreement Bruce? hydrogen front, might there respect to Or you you those a generating integrating something opportunities for on the can if Power hydrogen within

François Poirier

have don’t detail. that question, latter of level the On I

we our nuclear long-term you. the of is the asset for refurbishment at a as contemplating. of to is that we’ll hydrogen opportunities hydrogen green to through production follow participate planning Bruce production beyond part So we’re very strategic with terrific green electrolysis. opportunity class set as But be for have the look something to clearly, power And in much of units of the Bruce and up going

Patrick Kenny

and those on for congratulations comments Russ you your to François retirement. Thanks Okay. and

Operator

from Goldman go of comes question next Michael Lapides Sachs. Our Please ahead.

Michael Lapides

echo LNG you, that the owners? bears charged taking announcements. congratulations retirement, questions my that and cost, simply incremental easy building the of for owners, rises, Coastal shell can A other Thanks the question. or the succession, embeds you, who cost couple us that of does to I’ll who that to And gets the if for you project remind including GasLink tariff raise

Tracy Robinson

it’s Michael, Tracy.

So circumstances, the would to the agreement the So be the how and building that’s between estimated the essentially pipeline LNG with rolled any would respect as go we’re contemplate that. we tolls with actual have right? of differences dialogue works. certain forward, that Canada we that it cost into about Canada constant in But LNG with cost

Michael Lapides

to it. Gas And X Section you the about can rate on What side, case? the Columbia think Got millions think increase I’m to dollar trying revenue about asked requirement the that’s that it Gas is, Pipeline then just the for U.S. underway. is case, the that in revenue trying has what requests guys have you

Don Marchand

the you head that. but circle the could don’t with the of off number back increase I David filed in Yes, what we my get was revenue of Michael, terms have top exact and

Michael Lapides

So upgrade trackers you or modernization up do significantly on both about And see at of annualized the Gas as Okay. set on can yourselves you more Columbia is kind the an under or basis? compression earning either this systems? getting ANR,

Don Marchand

time, is tune a also back Clearly, what outpaced $X basis. look the example, to cumulative part filing a has billion our of proposed capital for big and program, our depreciation on $X is program but you spend the expense we modernization the of over seven-year a maintenance about billion if

when maintenance that is investment in to capital that is this we case our that recoverable to made the in you cases, recover a So talked we rate historical rate system.

Michael Lapides

Thank much it. you Got appreciated.

Operator

ahead. Please of Suisse. Our Kuske Credit next comes from go question Andrew

Andrew Kuske

certain approach pretty obvious then In the over morning. simple you’ve and capital and in proceeds and you think accelerate that some for maybe to and look about approach you and out or but with years, corporate maybe give do kind reasons get, engaged savored take enhance you whether you Thanks. us that share KXL color a Good to possibility allocate you of would transition Could with energy a them the then on, general, structure approach? assets structures CGL, to partnership value buybacks. partnership could of extract

François Poirier

Thanks the François. question, for it’s Andrew,

with cost. done our and either others. the raise find To we’ve and to past external equity. the and opportunities in look We Courier need the a we or with internal and – that equity As Northern at CGL to have for equity extent lowest possible

We’re about obviously always mindful about our think share efforts. count, capital as we raising

and the there’s markets it’s between of markets arbitrage we the something and if ourselves will ability we going private that avail an public So that to have the forward. consider opportunity

to mousetrap any I built that and and specific at So time, wouldn’t us. on the capital avail our should one tool that do it’s we look circumstances, toolbox. attractive possibly use but redeploy suggest any opportunities in could again, that in that of it now current be And could initiatives the themselves the assets, mousetrap our we’ve to there are with a to CGL, other a

Don Marchand

because it’s to great get And us. simple owning do always of always, Yes, value benefit done, consequences, that we has as always comment And per we François these hard at it’s it a It’s XXX% subordination stuff like a well, structure. but to looking look from fixed Don, share when look increasing we a we structural perspective at act here. balancing when things things, tax as into look share income we’re a at as metrics count.

Andrew Kuske

you in seen we’ve then think Okay. some situations pipeline few last That’s an alternative recently the helpful particular capital cost providers and come into just maybe very What And of about in the extension, color. in capital of think to just speaks term in Middle you North longer view, the years. capital when do cost America? that East of

Don Marchand

assets read assets if capital Tough of capital money and at private direct There there’s kind we would our gone in-house look the here. say debt of actually of down. looking kinds at of on side. really perspective, that. exactly Yes. to through equity the a I we actually a cost say, have on is lot a debt the From It’s is

so how And depends leverage that streams here. same to use, the able it’s these but we’re are it looking revenue much guys exact annuity at

of that sure not middle exactly East Middle the on would something front. say between the America we In through correlation terms the I’m and try that to and of of geographic extent again, read location,

Andrew Kuske

very you Thank Okay. much.

Operator

go comes from Wolfe Alex Research. ahead. Please of next Our Kania question

Alex Kania

Thanks.

questions. two maybe Just

system? The about that of second any you might the Atlantic has Are strongly, thinking if into It’s kind first strategic integrated heard kind Columbia system? since little it one Columbia. any there out. timeline months the is if how with there and Pipelines would or the work just us the a for evolved a any to TC transaction, are is any work shippers structurally a had synergies More, get about And just And I’m on few of – discussions I here, bit been pipeline bit and talk canceled, the those with little elements guess. more opportunities that there’s that could coast or that, how better looking broader question we’ve we’ve on elsewhere. of

Don Marchand

here. have It’s with mutually these think here. here offered TC shareholder the we I LP can that and we limited and proposal the in LP, in existing financial front LP holder, Don here, Energy would and say an just both the consolidated here would the of beneficial TC that is any TC of again, consolidate synergies so pipe say given important size and compelling amount fairly modest it’s some the our of do operational be LP But relative the just as active and financials simplification the I’ll LP We the be and we impact versus we’ve in question. for us operations start small shareholder are core of We are light. statements, we as fully what into operate into assets before structure in well. our unit what to already

Stan Chapman

with this to your second Yes. is And then, question. Stan, respect

away, in opportunity, You’re project of I next would that ACP is particularly year. portion the cover gone has say, load. would them not. we expansion in have the may Dominion’s of quarter the And ACP region have while first take correct likely a scale in demand of Originating the small that gas couple Virginia what do for a to

for this we have this us additional look system definitive So part a share is than, project. of anything at with Other instilling to compression as compression or electric across our great you. to electric don’t opportunity actually

year. So stay with an you QX and next give us we’ll update

Alex Kania

Congrats thanks. Great, François Russ well. as and Take care.

Operator

this contact go and there over gentlemen, concludes the call Ladies Energy Investor are question-and-answer I the Moneta. now turn any If TC session. will further to please Mr. Please Relations. questions, ahead.

David Moneta

your today. Okay. Energy, interest thanks participating appreciate you we forward to in much Thanks, very We look for you of great TC a Have again and to to talking and all soon. day.