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TC Energy (TRP)

Participants
David Moneta Vice President-Investor Relations
François Poirier President and Chief Executive Officer
Joel Hunter Executive Vice President and Chief Financial Officer
Stan Chapman President, U.S. and Mexico Natural Gas Pipelines
Bevin Wirzba Executive Vice President, Strategy and Corporate Development and Group Executive, Canadian Natural Gas and Liquids Pipelines
Corey Hessen President-Power Storage and Origination
Glenn Menuz Vice President and Controller
Ben Pham BMO
Linda Ezergailis TD Securities
Robert Kwan RBC Capital Markets
Robert Catellier CIBC Capital Markets
Stephen McGee JPMorgan
Rob Hope Scotiabank
Praneeth Satish Wells Fargo
Michael Lapides Goldman Sachs
Brian Reynolds UBS
Call transcript
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Operator

Thank you for standing by. This is the conference operator. Welcome to the TC Energy Fourth Quarter 2021 Results Conference Call.

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

David Moneta

Thanks I'd like Energy's good afternoon, you and conference TC quarter XXXX very to fourth to much, welcome call. everyone.

Natural our Strategy Joining Group Gas Executive Joel and Chief Canadian Executive Pipelines; Gas Chief Officer; Bevin Hunter, President U.S. Corey of Executive, other company President, results A President President, and Officer; Stan and President Wirzba, Pipelines; our me and Chapman, Richard Controller. remarks Greg are and and copy Vice and and Origination; Pipelines; today developments. and Grant, François the Poirier, presentation on Gas slide Financial and Natural and available Canadian Prior, Corporate of their François Development Glenn Executive website Liquids Mexico on President, Presentations. Menuz, Liquids section Joel Vice accompany Natural will Hessen, President, in with that Pipelines; Investors financial Power President Events is today will and our certain Vice begin the Storage comments under some

you questions, Following to provide member order we yourself equal everyone an please after from we opportunity take of if two contact limit you that media, investment are to call. community. the with ask to will their the Harding this remarks, In participate, questions a Jaimie

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

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

additional finance operations. information they and to These are performance, now operating on presented measures I'll provide liquidity result, funds that, used over call by TC comparable its the be its may to measures François. With a other to entities. to Energy's As not turn ability to similar generate

François Poirier

afternoon, Thanks, today. us David, everyone, for and joining and thanks good

pleased As fourth XXXX for highlighted very that release, another was TC I'm earlier in year report successful Energy. quarter to news our today

Our energy to $XXX high-quality, billion strong of results. assets and long-life continued portfolio financial produce infrastructure operating

service During we sanctioned approximately into the projects. billion billion assets $X of and year, of $X.X placed new we

renewables, direction for regardless We position also numerous hydrogen transition transition. will progressed success growth in of CCUS future energy long-term or pace the us energy that initiatives and of

on power our of targets X sustainability, Scope in our focus expanding on targets. and released areas sustainability we our we and report ambitious Notably, which commitments. capabilities Scope our organizational key innovation X XXXX set like for reduction all stakeholder includes continued And We and GHG relations. storage, finally, XX

to Our XX% emissions reduce by and to intensity operations company goal our emission XXXX. achieve net-zero by from is XXXX the to position our

So by demand operationally, well. our and assets for evidenced extremely our transported This was network. our across remains strong, the services performed volumes the

average extremes. an for of in The XX across NGTL in gas plant availability, system in also availability increased reached of through U.S. continued assets our cogeneration Power system where delivered and record on flows our XX% U.S. Storage, approximately Power pipelines, in Bcf on and XXXX achieved had XX.X% saw Bruce facility intra-basin robust set our XXXX. XXXX day supply. barrels send-out per throughput pipeline Alberta January For a of Keystone where most all-time we set XX.X high U.S., our liquids early X/X the flows Same of X, represents level all-time export record daily story that we across XXXX. weather into of the delivery similar our natural volumes on and record example, January XXXX, in our network, A in And XXXX. Bcf from and X% we total assets decade peak an and up X.X the XXX,XXX on

It strong our does financial strong performance means that translated into operating results. So mean? what

Excluding a operations share record compared per earlier. last items, $X.XX $X.X year's or reached $X.X common similar specific billion comparable earnings billion certain $X.XX $X.X were and funds a comparable results. $X.X to of to XXXX generated or year EBITDA Comparable both billion in from billion of

the U.S. comparable from results of service strong weaker well assets we the $XXX results as EBITDA XXXX. billion the approximately $X new However, legacy contributions of we record achieved impacted reflect by impact million. assets as these despite performance dollar, into in These approximately a which our of placed

we forward, of and This new program. we high-quality Columbia in $X includes the capital Power Modernization a program billion advancing XXXX, that opportunities Looking including approximately are Unit III growth the $XX X sanctioned program. billion MCR Bruce

cost program consistent with return long-term a $XX to the portfolio. deliver and or risk on entire is unlevered the of IRR billion preferences. of after-tax the weighted regulation service of by Importantly, X% contracts, our average It's entirety underpinned approximately expected historical and

opportunity ahead capital current of program, is vast. lies our the set beyond that us Looking

achieve XXXX network. ongoing Power capture the Bruce as Project megawatts. gas we Our to our substantial Life corridor similar the origination high-quality pipeline also includes capabilities continue output deliver at opportunities expansion, site while of Bruce need position This regulated initiative modernization includes many our us maintenance footprint. Extension energy assets the of in upgrade to Program peak to own and the X,XXX and It decarbonizing natural people

overwhelmingly response we're to expect XXXX. half system. evaluating for our has As base in in of renewables RFI been to previously, to response contracts the portion we first U.S. finalize we've electrify and the Keystone mentioned our positive, proposals The of

energy gas pump have a load sell and our opportunity and return thereby our identified storage also meaningful origination on in-corridor to demand, We're proximate projects. oil progressing initiatives two for with RFI, products associated enhancing to that's renewable Now industrial carbon-free sectors services of the aggregation the we this for own to and activity.

Storage project has a decision to Ontario expect Ontario's on would $X Canyon make project final capital development flexible, We X,XXX an estimated Creek Pumped investment Alberta, approximately the which of cost with to system. electricity continue energy megawatts we investment million. a provide clean And to that of the $XXX of in this year billion the progress

that, sequestration transportation with energy Hyzon. and Beyond with Pembina, including are carbon Oil, opportunities, Nikola hubs working and with clean large-scale we production on Irving projects numerous and hydrogen

return As the than each a with risk result, more positioned consistent years levels. projects new profiles with we next to sanction billion in are well $X adjusted of historical of several

we’re growth and additional place forward, savings. through the realize us cost in-corridor further secure line capital capital-light in to into EBITDA gives of average opportunities to billion Looking XXXX able X% projects, $XX originate secured service an our Difficulty] to annual extent rate of program sight and [Technical

Board the we outlook which annual to and grow consecutive our the to to Based promising declared per per So based of we share on common the is that our of basis. financial is the declared Directors expect a our an on rate XXnd the the raised has $X.XX amount future, X.X% on dividend. to future of performance annum. X% average of over This and XXXX at Board in first X% Energy’s TC year outlook, continue dividend the strength an in represents equivalent confidence per have quarter annual share, XXXX a our for $X.XX dividend increase

the Now vision our in company our following premier To in the as is the energy North we will year. to Day infrastructure now be against highlighted XXXX, help we’ve report priorities set finally, I December, and us at America the for vision, Investor future. in our throughout realize which

to our our deliver safety responsibility value. safely one number seriously. take people energy is We First, very need everyday the

return enhance on this well as Next, achieve our by revenues. operations the goal savings through invested that services increase cost innovative and capital. continually our our is existing optimizing products to We’ll as

$X.X of XXXX. to And approximately place into goal billion also $X-plus our assets also growth in additional to expect high-quality billion sanction of We is an service opportunities.

our program capital flexibility. our strength sustainability to and fund will prudently intensity we financial emission maintain will GHG we always, targets, our ensure finally, progress including And reductions. we As

continue pace direction irrespective to organizational capabilities of transition enhance prosper We to our will takes. necessary the and energy also

This management and Executive Officer Gas Chief mention and her Liquids Pipelines; Reporting call contribution and Grant, like of role news Prior, of Bevin Executive Gas Richard and in President, be Executive, been Canadian a the I’d few Corporate Natural turn new to for recent well her to Group role. Canadian to I Railway. I’d Joel, President Pipelines. and the that Greg follows expanded National like Tracy Liquids Natural of Vice President her over Robinson Pipelines. and President Strategy over Wirzba’s years will appointed to wish Bevin Tracy thank Development the to Canadian changes. has Before has

in experience depth Each our planning of transition miss we the and of along process highlights of leadership individuals our the seamless succession were to these identified the that Tracy, with and will strength the I’m goals. efforts over have planning While achieve organization. years. our Richard, confident the of many Bevin the our skills leadership and succession and rest this necessary last our Greg team,

on Now, I’ll financial results more fourth over Joel, detail will our turn who outlook. provide call quarter the and to

Joel Hunter

everyone. François, Thanks, and afternoon, good

our to well. continued François assets As mentioned, very perform

criticality financial low-risk unparalleled operational strong demonstrate to of and Our results footprint. diversified asset our business continue strategy and our the reflect

billion fourth five $X.X EBITDA business in included XXXX $X.XX results our quarter, for compared certain per during were as $X.XX each period our earned from currency or per $X.X can for These same of in was the items, segments items $X.XX highlights shares XXXX in today, to results in per despite be headwinds. share in quarter, XXXX. as excluded compared billion Detailed Comparable common in billion are quarter outlined or from quarter billion earnings. X% comparable our the XXXX specific quarter financial variance common specific which are to to compared the $X.X the In share $X financial same period attributable $X.X Fourth As or found fourth fourth to fourth earlier further $X.X the issued unit XXXX. or in income in share corresponding XXXX release. for net explanations billion share period highlights release. discussed well earnings was $X.XX comparable the our translation higher common operating billion per

higher February Pipeline EBITDA Liquids So as Gulf U.S. increased EBITDA I’ll comment Coast year-over-year. lower a XXXX a result comparable of Gas effective declined increased just Columbia of to Keystone comparable quarter System. fourth to Gas due on due section Pipelines principal the from volumes rates on earnings Pipelines’ U.S. XXXX. primarily X, the mainly transportation to changes compared few

Gas all average Pipelines, U.S. U.S. income, the our Pipelines, into translated including an quarter XXXX with Mexico of Liquids rate in using dollars exchange dollar-denominated parts $X.XX of Canadian XXXX to comparative and Therefore, fourth For year-over-year the was compared EBITDA. and businesses fourth dollar in the drag in increased comparable XXXX. Canadian a for our reported considerable the same $X.XX dollar U.S. the quarter, U.S. of EBITDA on while dollar-denominated period overall weakening EBITDA was

of exchange fourth a rate-regulated project the expense foreign residual to variances the to earnings higher to hedged said, quarter impact included debt largely actively on the Canadian a streams pipelines. due expense revenue corresponding XXXX, the part on higher are U.S. and below with the compared three-year dollar for long-term now basis. year-over-year by dollar-denominated due earnings U.S. cessation pipeline comparable not primarily issuances, comparable taxes comparable capitalized exposure flow-through Interest to tax XL that will managed the on Now translation EBITDA. rolling in dollar-denominated our Keystone interest. weaker was for impact speak of significant earnings naturally of as forward in I U.S. few a primary Income was from income interest in on increased partially included offset

During the to for billion bringing from total generated year. funds operations the billion, $X.X the quarter, fourth $X.X comparable were

exited we liquidity XXXX, As remains our strong. position

terms position capital compelling have on access our bolstering financial to to focused time. continue and We markets on remain over

over our $XX forward, our of maintenance forecasted years approximately XXXX Starting this column, are in three capital XXXX. uses billion. billion $XX.X and of graphic funds projected expenditures, requirements billion and the of capital dividends the Looking illustrates reflecting through left for to including be sources $XX.X total

recoveries. right fund in internally combination cash generated paper, to of leaving through $XX.X a $X the debt, billion highlights that far of Keystone and a depicted The project cash expect hybrids incremental we columns on need two second expected residual approximately of flow hand, XL billion commercial column

Turning XXXX. now to outlook our for

by be offset XXXX is management’s Gas mainly flow-through to and information EBITDA growth higher, in Pipeline’s anticipated higher the XXXX expect contained in due the the partially is Natural modestly as EBITDA analysis. we be Canadian the continued our one was XXXX. in to Mainline segment System fully depreciation of Additional than reduction depreciated to annual Canadian NGTL on Overall, comparable XXXX. discussion

its in be more a Gas for be U.S. are higher expected reminder, service contributions throughout and volumes is liquids Villa is due to challenging XXXX. Power we decreased availability, Natural gas Pipelines equity a lower liquids, expected $X.XX Gulf of earnings, measure range Power the the an be due increased anticipate expected by year-over-year program, offset for as In the rate Section be operational exchange segment greater Gulf. for average dollar-denominated XX% to the assessing earnings Coast expansion subject generally non-MCR similar its by our taxes. and anticipated the ANR be be In are in partially developments be pipeline expected transportation Unit XXXX expected on MCR Power property on believe operating the Storage phased anticipated X, impacting continued of into Other EBITDA Bruce higher the price expected comparable our case we U.S. with Mexico, XXXX, forecasted Canadian is maturities. Bruce on items consistent on foreign of MCR Pipeline marketing in to U.S. EBITDA expense a margins System from to with be XXXX. We at program year. is the As performance EBITDA impact largely Columbia Comparable as the is to primarily anticipated expect filed In de the when days outcome impacting section appropriate financial is outage net market consistent excluding to business. U.S. contract low the hedge XXXX than Unit and Keystone which EBITDA income interest along to to FERC and earnings costs. increase X planned increase X in costs hedged Reyes and due to to offset in XXXX. on to conditions to rates to with the ANR lower include dollar compared income will These debt be issuances, as EBITDA business. positive in long-term rate and projects $X.XX higher our continues well of

income along U.S. tax thus are with to mid we in rate-regulated in variable, high item a AFUDC Canadian Excluding where XXXX the pipelines, year pipelines, flow-through rate normalized quite equity teens. expect and gas be full taxes our income to

approximately in our remains and interest include of mechanisms. diversified contracted to assets, EBITDA our commodity comes exposure price and Our rates from which regulated variability and quite various limited given portfolio, XX% sharing flow-through

to As a result, XXXX. consistent in record we expect our XXXX comparable earnings with per be share results our

Now will few our NGTL ability growth U.S. Gas in in be of normal not contributions through expect the maintenance Despite Pipeline’s XXXX, and projects, capital our a and Bruce though Natural of invest terms X% which confident impact with equity a maintenance program extension in weaker to EBITDA of course capital. the growth expansions, we to the headwinds, remain we include deliver earmarked $X.X System dollar, linear. life investments, approximately billion U.S. growth on majority for Power to spending, projects, capital XXXX

is program underpinned by after-tax secured and our expected Our to X%. unlevered returns billion of produce capital outlook is approximately $XX

We assets. build come other also that contracted will rate business and to approximately on numerous from XX% of to of growth Similar in have our to long-term each our today, units. continue regulated EBITDA levers

business footprint. low-risk financial the So diversified strategy and unparalleled our reflect results in to our closing, operational criticality continue strong of our asset demonstrate and

to business mix of allow needs model, in us the future. serve a capitalize the enduring to set, and opportunity evolving extensive will Our energy capabilities continue vast of financial on which today’s portfolio position to assets organizational flexibility, us

flow solid flexibility. generated well current a with to allow combination equipped will which Now program internally and capital maintain debt capacity, position cash fund to of us financial looking we’re our and our forward,

prepared already Our provide back now of moderate expected growth continue will deliver remarks. David over the call my with X% end the to us shareholder payout will That’s and in the EBITDA to total of superior our ability I more or enhance our for ratios, returns. turn to leverage the Q&A. conservative long-term

David Moneta

Thanks, Joel.

we the before that, investment the questions yourself back to that conference Just conference questions. it turn to to two for you I’ll coordinator community, the I a from turn ask reminder, With over it coordinator. limit

Operator

Thank you.

now the Instructions] Please go of ahead. BMO. question-and-answer begin Ben question [Operator Our Pham comes session. We first will from

Ben Pham

Okay. A of Thanks, good on business. couple Power morning. Good questions afternoon. the

RFI invested mentioned procurement impact only origination. and EBITDA. renewable power assumption does alongside the higher the that TRP’s Is with companies? under You that some you and that the result additional these wondering your how in equity and on added I’m returns

François Poirier

little Ben, a a to benefit. to in our this we base of the of Corey off, stations system. ability cost on being of virtue aggregate able By the economies for at ask deliver François. Keystone create and Thanks, pump it’s additional provide from scale lower our area I’ll can power one, of I’ll bit detail. everyone’s to load kick Number

Secondly, counterparty the we’re in to purchasing the able, ownership necessarily as of counterparties load the side. TC to different the off on different Energy, without amounts partial assets having as PPA

we be and XX wind want, between. find that in their on counterparties say, stands purposes, three for let’s a might megawatts the own and we’re each So the counterparty farm XXX-megawatt that different intermediary

ourselves create allocating capital, any to without margin to enhance in capital. for meeting utilizing demand. our working We returns our addition own can long-term So but some

We option in in will, the those basis of as acquire case-by-case facilities a at the those construction taking have on we’ll some consider for scale We types won’t detail any to I’ll you points seen we’ve compete business. throw in of it the will additional proof parts for capital other terms on aggregation. Corey, over what have COD. with and risk. of equity instances, investments be themselves to And our to of some

Corey Hessen

for Corey It’s here. Thanks Ben. question. the Hi,

Number know, in out us customers customers opportunities reduce expensive as renewable is also customers. have dramatically of we because process on closing contract we’re and for pretty we parts our to those as most to with real those customers the briefly. transaction to think assets, points of their already one, you two and journey. find the corridor, make reaching costs development able decarbonization Just for And our one and about helping

our The we many point second because in industrial have of proof long-standing us. that sector, out there sort with the already lay this is of are sector, in I’d you relationships to customers

smoothly. a T's So transactions point, unique and the to and the of proof parts X.X bit little we stage, more some business their move and secured as addition right that’s that make now just other are understand those a going of the we’ve C's now, on. we in to load negotiations we offtake in of LOI worked approximately definitive gigawatts with have counterparties the in already And internal

Ben Pham

Okay, got it.

it’s Is extent, the – that we’ve in. contracts seeing similar some of to you to So some engage Alberta that the in been correct?

Corey Hessen

Yes.

Ben Pham

run then power everything on out marketing my need there anything terms do mean you side, Alberta? follow-up, And or it I is of expanding to the can in you – of Okay.

Corey Hessen

Corey Houston the out and plenty our Ben, continuing again. customers. and it’s Those should load to forward sufficient both and that We operations our Alberta service our marketing have continued be our with done to customers. U.S. have power for historically moving internally of currently service existing and Canadian we

Ben Pham

you. great. Thank helpful. very Okay, That’s

François Poirier

Thanks, Ben.

Operator

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

Linda Ezergailis

you. Thank

space understand any years update in Just the margin from where we white you see might is status sort operating lift on any much help up. wondering space couple next perspective network business, could costs how your offset as and white the it kind pipeline the on of an a might that your of fills if in of increasing side how me of in

François Poirier

part come then of around white take Linda. Thanks, I’ll the that inflation Joel ask to to and back first, spaces. question I’ll

Joel Hunter

this a by includes question. the and our With that and we obviously that’s limited. impact for key asked lot, takeaway So EBITDA regulated regard remains this contracted the sharing inflation cost because obviously, flow-through a the of assets. of is thanks, to mechanisms. result is inflation of XX% quite Linda, get And various underpinned, And

is XX% costs that would of about in be subject So operating what our the near-term. see to we inflation

less bottom use sensitivity key results line. it is point every million to the rate, And for basis in in pretax so impact than approximately our inflation $XX to change XXX a

François Poirier

your what what costs. that And you terms our to little as exposure Linda, inflation part so from in the seen question, of to is Joel have or operating hear second of you’ve we very

example, demand imperative from the time. footprint, the In some in-corridor to look terms example, through in be for our great a for the that other that Appalachian of Those think white through position gas if spaces, and two Basins. leading of we are basins. our occurred see natural We pipeline at WCSB be growth you us and for plenty period serve throughout that have to the I well don’t that’ll looking very of performed destruction COVID basins, of derived

in confident So deliver. we’re those basins to abilities very

think in On and our the growing side, you’ll contractual U.S. capital the I power our us investments see long-term position

be focusing Canada to But being, think the with we’ll in for to well. a the electrify investing terrific the investment and roughly the we’re at the in year in Power time the us, to compliment on near-term compressor conducive The in side. and have going own U.S. Storage that to and construct own billion We footprint stations Power. U.S., gas in is in regulatory renewables as a pipeline consumption Bruce that’s our U.S., may to $X opportunity change spend capital I our in more electrifying respect our the

Linda Ezergailis

year just recent the with provincial been Ontario? pumped or anyone opportunity. Or storage And seeing given any on we’ll a any bit be pending quick your of you. be a Thank that as Ontario and pause Have elections on activity there that municipal this might follow-up front? a discussions there in

Corey Hessen

Linda. Corey, It’s again. Hi,

process are the in We in province.

fronts. working number of major are We on a

with forward DND the finalize in indigenous such partners we going have stakeholders partnership finally, in the site discussions to we our Sun with then of ISO Meaford. and working begun process, assessment And with are working with are accordance work Phase assessment with our continued their as this We and II on the phased other project.

Operator

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

Robert Kwan

being sheet about at and or the strategic there your getting sheet And projects talked enabler balance as Good I’m can you’re think you balance leverage. to do about your acquisitions. getting forward, use the balance $X-plus afternoon. year of a sheet envision either can large be? Or can I Is new ask of terms about you likelihood, that to target capital or it do bringing that either/or? see leverage wondering, get allocation that you where to that other how And just a position around might for of least in billion you you putting just in projects pull Great. as you opportunistically. whatever

François Poirier

Thank you, Robert. It’s François here.

Our years, plan generated is to debt as you to over total the debt capital our steady several using and see fund the the sources – relatively and our next and keeping program. cash be uses we’ll internally dividend both

X.XX growing essence, into see you’ll long-term debt to in So of leverage the targeted EBITDA. us

respond say, Looking below at over materials go. Investor also there’s tell got X.XX we that EBITDA that by to specific we’ve that number as time, our own sanction at transition emissions. growth as dry a quickly of an we I is projects energy important. we’ll lower and to compete nimble generally strong the be agile end important and an cash their speaking, period ascribing their it. cannot it’s whether you retaining Day average which we period. I to customers we in tell X% to to when needs Having would we’ll you invest opportunity of that to and well expect But act an comes to did along, around I additional get really able more really presented a to it’s or the argue, be we okay, five-year at say M&A ability powder free that, balance sheet on able be our help and we

around also M&A. in energy So it’s to of with terms respect just developing not transition. projects It’s

a to I just years. us forward. see And $X And as within expect think able be a means sort we our billion rate reasonable going live we as said, directional of it’s the be do preference. run to And over to few next again, projects so I adding for

Robert Kwan

power the and If looking asset-light being topic reselling to an finish related that great. a like That’s of with can strategy. I

that priority with whether that to and, business? pair Just assets something of say, capital, specific your when a other broadly, back your but Or wondering, remaining of operator a the the invested strategy is it consider portions might fees? on strategy taking this more XXXX you monetizing that’s like existing return improving management is and this you

François Poirier

Yes.

comes renewable around are I investing observation, it the a think we’ll projects that’s make our capital the great sanctioning, of within the some equity going that projects other of to with we’re stack. have decisions to future to uses Robert. and those When in compete capital

parcel So improve and to looking match approach. an bit to and a is for our a and gen to way us third-parties load take for aggregate returns load little out of asset-light

If already at in look now has increase system you and you Mexico, capital business, portion at liquids the Coast. if commercial job been is well. capital as with actually in doing what got the doing deployed, in look our VDR, the utilization we’re Gulf to southern this to ground we’ve The we’re the our what Keystone means and marketing achieving from through our completion down of year with Cushing means

And across the on to on we’re and to over existing years the capital cash be help next leverage, the to retain going to couple focusing that, return energy if all So metrics, going able improve invest of invested in we a that’s been invested. that to more transition. on us the we’re different capital our that’s do of are able improve be theme

Operator

from comes Markets. ahead. question of Catellier go next CIBC Please Our Capital Robert

Robert Catellier

pricing next phase the MCR. strategy for walk the like me Bruce of and through you I’d to Yes. the

provisions. impact force level schedule majeure you’ve the Unit one What gives of COVID-XX that recovery before? for for cost X final as submitted costs same a cost for you thing those hand, you contingency recovery certainty On for the and and the of the highlighted for a confidence X schedule for the preliminary cost have the on and Unit but do in you seeking you’re also

Corey Hessen

Robert, Corey. Hi, it’s

As we about I high-quality, it Power, our Bruce think being think for assets. long-life definitely child about as the poster

reasonable We go of inclusive very each use that our costs closely will part work those we as each presented to ISO a stakeholders as have are And so the that I and COVID sure of approach when we evaluating of the determining included are function the the of we factors. be good. adequately of systematic MCRs, through each that. the one we make outcomes the phase MCRs of component that like quite to ISO, that of our process risks going And that making sure is including a stakeholders, forward. and were all all of part relationship feel we with with of the

Bruce folks said, Power just of kicked actually work well a that It’s being able at long This that has advance. coming. a many the year great that have job isn’t the that process went years. most off last into done And Now of being this December. plan process time been in in a to a takes

right feel most spot the years we electrons for Ontario the to come. carbon-free ensure the I next with strong really of relationship available spot. We’ll priced like So the them. receive we’re have citizens to ISO And in in a the be the fairly to right that

François Poirier

status of made applications of status Corey, where COVID? respect and the to cost might if Unit force majeure X, also help beginning that we with the you at with the of the schedule Robert and we are

Corey Hessen

Yes. Thanks, François.

are on budget on Unit X. schedule we First, for and

on regards impacts, and and of [indiscernible]. keep accordance all in in with to middles, close majeure ISO expect conditions are those the those as very the the And and with records per that we come to we then We being the the submit terms XXXX tabulated, in schedule of to of force plan. to

project. this be that there’ll right would and come So as budget coming I of months for Unit we to on schedule exit are we in X. the phase now, reinforce on sort the more But of on

Robert Catellier

Okay. Joel just a one to the of any And finance on helpful. it. or not has to quick program you and for which renew the the That just status side answers ATM, it. believe That’s maybe expired want understand that have whether plans I

Joel Hunter

no originally we ATM place have We we for Yes, Keystone there. plans renew Robert. put to Thanks, and left just in the XL, it. it

not no used it it. to have we expire, but have it, We intentions and will replace

Operator

question Our next of from Jeremy Tonet JPMorgan. comes

Stephen McGee

ethane Early MVPL guys. one we full Jeremy. only last and took found month, that near for Bakken, we on thoughts is And e-content in least question the pipeline flaring, stepping just of to doors me how play look dynamics on rejection seeing McGee wanted Stephen with an running a kind is Really the closer increasing reduced and extraction [ph] for role on nameplate your the on based egress at and This get egress, just basin. a MVPL at as perspective. larger views on capacity, general

you. thank So,

Stan Chapman

Bcf a hit is which high production this was what And to now prior and address I it is already. pandemic. Bakken some pushing you four, Stan. kind to you the of mix that, Bakken versus day, Stephen, X points of three, could the is past look Northern at XX% the which if the between highest weighted, volumes is it’s the in about that volumes into been the so. Canadian or five Border system, years ratio Bakken coming close it’s

$X.XX the prices ethane somewhere are a We fact capacity have region, processing the in in seen range. ethane and now which not given that right in increase an is unexpected the gallon extraction

again, to actively So fact production a lines respect on the Bison a coming solution. if about all is out the very takeaway to up, that, surprised there bullish And something we you additional spring those see an with open uniquely of take. don’t situated producers, be X.X think been this season. probably tune to our that Bakken Pipeline with takeaway give along capacity for given the Bcf down, or later is be engaged flaring And day, is of need out for the the actually Bakken, we’re given

Stephen McGee

it. you Thank guys. Got Appreciated.

Operator

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

Rob Hope

forward, you’ll we see want focus afternoon Do you’re development to – think Good business. development process place transition power is you renewable the you doing Where focus similar that, optimal middle moving like on more part TC Energy’s and that a enter there? to of the energy the to you’re the see circle doing in of to expectation Alberta? historical Ontario what could Or do it the back U.S.? asset in Want on everyone.

Corey Hessen

Corey. Rob, it’s Hey,

I answer the yes. to think that question your is,

that we that are the the to take and an the think on opportunity all-of-the-above presents customers I more strategy would jurisdiction focused we serve. really trying

contracting we because in number of can customers it a that assets Ontario a great and we pump assets, both that bear with particular the Meaford lens, Canyon development those replicate – in then specifically to – States, reasons, bring our internal other to skills. some us But is Creek you the number of early Energy not connecting with and our organizations So TCs United is of is customers our it about do and in our has the would following storage expertise that of development, development of are very with can or jurisdiction. load what different and stage least an good at renewable our the see and early and stage of the long-term businesses. through would where which think In difficult we market TC be that for I

of portions assets. think do And But of there believe so and assets over a we time, going it’s to will I different assets will that we be be variety own or choices there.

approach will as We jurisdiction. it the that asset-light take meets in needs our

Rob Hope

the little Great. And goal follow-up we and Appreciate of year, look high that to early we business $X do annual worth greatest just lines opportunities? you the XXXX? given color. a sanction or out get a in are visibility to projects, the be buckets how much XXXX, the as as is bucket seeing able the maybe have billion what you’ll into if secured And are in to you then where

François Poirier

$X.X which of on $X billion on take maintenance I’ll return to can our that because capital have regulated earn businesses. – we of that that in and Recall we investing a Rob, it’s annually one. billion capital we’re François.

that it’s expect across of every that got throughout then And to I visibility you diversified jurisdictions. continue. decade. various balance good our well on And the year can occurring so the We’ve think really

you $X growth. combined gas plus own electrification think own in natural of between meeting the our franchises projects simply around reducing new and emissions gas assets, expect U.S. I can and demand our of our billion Canada

things for that. indicate demand from facts think benefited evidence that the I and talked the and remarks to I America in continues prepared the that about is my of grow, one natural gas we’ve North in

we’re – gen-to-load we’re some and will we’ve So in for the power smaller as well that going sanctioning business, to at RFI looking million our incremental the aggregating about fact do the and And matching. process load the talked and then that $XXX projects company. in be year of other parts – Creek project as Canyon of on this a different opportunities number

course, is said our So it’s per that $X to in large us of opportunities Ontario Phase feel sanction and sizable we actually year. sanction fact heavily potentially of the with – of with where on working to that out around reliant billion a partnership in there of additional Mexico, which potentially the II for to a couple spread pump the a little any billion have – good. deliver then, about businesses project that, our efforts Having of comfortable storage CGL, we’re CFE We $X not bit infrastructure.

in-corridor So entire we’ve when opportunities of pretty that is of then lots got that. you together, footprint add them across small and top opportunities larger our billion on $X that, visible some

Operator

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

Praneeth Satish

Thanks. afternoon. Good

is looks like correctly. case, rate I’m the XX%, seeing it requested ROE it to ANR the On if

guess it’s the Just higher I the is number factors what how and are a as wondering think of that I much the normal. increase bit than based in regulatory perceived risk. behind environment on that

Stan Chapman

Stan. more our in in little with producers therefore, Mid-Continent and reflect respect is exposure upper probably commodity the gas all third gas higher competition of look proxy bit when so the that into Actually, volumes group, prices it’s things on fact that range, to proxy exposure equal but ANR has area. this Praneeth, it’s we tier, group, a deliveries a amongst to more and, Yes, little to has bit our does at that the

our group. stretch, the outlier upper it in is an not of it’s So by but any proxy third tier

Praneeth Satish

in wondering debt? of the that time you yourself using give And repaid? also update being can would GasLink, And that then could why Coastal I you comment status to provide loan would Coastal provided the bridge of maybe And on it. when us versus just elected then guess I’m the if on great. an to Got be funding be for additional bank GasLink, that’s you frame terms

Joel Hunter

So here, I’ll Bevin. and start turn Joel to over with Praneeth, I’ll that. It’s then it

that point loan is we’ve the billion being bridge as before, highlighted funding mentioned that QX. to of $X.X view to the get temporary prove there’s back just project, sufficiency it increase the subsequently as at that that actually we this have We the we As then an facility can we for in guarantee extent time. credit in we increase in can CGL so at

into million, as highlighted, there we we’ve And I market the view being on again, do outstanding we we that CGL. as do return facility. funds $XXX At billion once So believe, year-end, earn land if was billion. a temporary, $X.X it $X.X

place if until in increase needed to then determined. So the an we get in facility. the be be will credit it the will, to will is whatever And to project funding, you get completion bridge

Bevin Wirzba

and GasLink never We're really right more Praneeth, for the clear the need in What fundamentals XX% that have progress Canada at making the the the have of Coastal been for those the robust. complete needs is the is that to projects us Yes. year, – of in way. underpin this the LNG facility LNG beginning great on nearly is we're field. Bevin. At the field

with equity our And with LNGC been a the so we've partners the safe position for – Canada, to working facility. and very and customers, LNG ahead of our be execution closely project also

So discussions and ongoing, are great making we're progress.

the project happy So with has the that taken. direction

Operator

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

Michael Lapides

Yes. questions. Hey for guys. Thank my taking you

potential don't significant not Just curious, as we you're think GasLink, the should it's on hey, going giving the about there's be a Or number? to or increase material Coastal to going is being of, but disclosure costs $X anything if you cost be dollars the that a would of And I impact pretty project? north return the billions in on does guys call is range? sizable number, it billion, know, how of the earn it,

Bevin Wirzba

get customers of shared works right The and LNG Michael, our behind Bevin ahead constructed with our advancing The parts contracting the complex pipeline very most again. with carefully of the safely is of Yes. our project now. in – it the us. We're civil being deliver is terms are objective that's this plan. the to plant

mitigates not place can our manner able the the those strong but the that are customer. of being we be have deliver a So project, we I'm for we plans ensure see exist, to that saying risks to in executed in very that ahead. that sight the balance don't project to line risks of

Michael Lapides

disclosure remember negotiation and annual dispute a just Got report off line. at for is press Is an kind it. And that over or it the how How don't process other Is of arbitration negotiation? today your formal or process head. methodology? some it I – the cost think time kind ongoing resolved? of of it in release what's what's getting the was talked I about the there top my

Bevin Wirzba

commercial We're that dialogue now, and the project. alignment that in maintain of our we that constructive right a process very customers going to forward just on ensure with is discussions LNGC Yes. with

Michael Lapides

Got it. Thank you guys. Much appreciated.

François Poirier

Thanks, Michael.

Operator

Reynolds comes Our from next Brian question UBS. Please of go ahead.

Brian Reynolds

Coastal Nations First good equity it up before with previously appears is, to talks, ownership? project still – an And Hi, question that with TransCanada divesting see the what to some Thanks. partner? GasLink, committing about on is two, the to part my of to would in TransCanada progress of become Maybe interested evening the equity Nations like follow in further everyone. First partnering the continues First

Bevin Wirzba

got equity communities We've and again. to And indigenous around do we've equity we the them for that our implemented the project. mode. role nations moving an our job right share indigenous have bringing the an support communities doing the participation XX working real the the indigenous in is thing we're is we believe in with and as I the our Yes. route. And good values the from in right reason unprecedented progressing progressing negotiations still forward for participation And same The partners, as alongside is team response just a along along in of previous way. had Thanks, Brian. mentioned agreements construction, This is successfully question. Bevin to

Brian Reynolds

guys Great. years some billion debt And a balance of slide couple implies, kind provided and a on maybe of about previously. allocation talked over XXXX. need sheet, that capital I follow-up just coming through issuances as the you and The

Just a after balance dividends we cash recoveries, of on just as reserve potential expected could range currently of the Is outcomes? flow on the kind inflection of provide? and should just Or could you quantifiable sheet then see kind – a if there curious, Thanks. post maybe asset? XXXX, curious KXL provide free you a contingent a

Bevin Wirzba

We'll those Glenn. on and get to the take Glenn first it's the Go of of I'll then ahead, questions, François. that. part second start

Glenn Menuz

they as far KXL, recoveries an the a under sitting we terms. as Yes, on contractual Brian. balance as on our are as receivable, and will asset the sheet Thanks, those realize

François Poirier

And I it's points, a inflection think be our at balance metrics view also the of means. to debt-to-EBITDA of living steady respect our X.XX. is sheet with within moment, us And our our for desired important to state for

present and weigh front comfortable the very are capital. for extent future opportunity our run in into To set of us to the leverage some against of if we'll return that's bullish capital year. I opportunities stable grow right very think you on time. from rate steady we of a opportunities state additional you'll shareholders; see as that we And After a we expenditures free servicing sort dividends our $X we'll to so over And now, cash, invest are the of tell that can billion of that long-term with proceed capital those that us. debt have our a on in us themselves basis. to we

creating very think that capital point said capital able we do in believe allocating be preferences to even we risk value we've to return, our comfortable would we our As at allocating we're for historical before, and time. that we energy can in transition. and our rates maintain shareholders of that, And if are

Operator

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

François Poirier

you our Thank prepared remarks to to for want tighten say up – forward. We're everyone, today. calls appreciate shorten your very I I thanks, and try much. our want working to feverishly going attention and

of a Joel couple and minute. all to I'm pass then we've over going for just good appreciate of the gotten. a to it quick In So feedback closing, things,

of I adhere our We able relaxing us and disciplined secondly, year $X our free to continue no our a risk will be be allocate reason And our we allocation – to this approach see billion for around said, flow. as to to capital Firstly, and help in preferences. energy risk cash is The reduce customers for positioned. speak to set opportunity we we them are to closing over you role the about opportunity the well a ourselves a more substantial, remarks. how to emissions, more Joel, see our transition. for to we few really play their preferences

Joel Hunter

Sure. Thanks, François.

with Toronto has in this for Moneta the David retire fall, been us our years. XX been past of the years, company has of the over in and last his at year. Relations XX beginning end informed Investor to March So of office for plan David

your I XXX with and my So that not calls, number here during unwavering you is including professionalism, Energy, count obviously, career. into meetings just today, participate the community in the investors in here. quarterly this means David, based only dedication And but well on of career David's over your at math, throughout reputation, TC the unparalleled. can't thousands wonderful investment

behalf retirement. on for well-deserved Well done. best of say So current and we David, you all the a your wonderful I wish you past and to management, want career, in thank

David Moneta

appreciated. Joel. That's great. Thanks, Much

Operator

This concludes today's conference call.

a You may participating, have disconnect your lines. pleasant for Thank and day. you