CALGARY, Alberta, November 29, 2022 (GLOBE NEWSWIRE) — NEWS RELEASE – TC Energy Corporation (TSX, NYSE: TRP) (TC Energy or the Company) is celebrating its annual Investor Day today. increase. The event will provide an overview of our corporate strategy, emphasizing our continued approach to delivering long-term shareholder value while carefully managing the broad range of opportunities ahead. The company reaffirms its long-term growth prospects for comparable EBITDA of 6% by 2026 and annual dividend growth of 3-5%.
Francois Poirier, President and CEO of TC Energy, said: “We are leveraging our extensive North American footprint to expand and expand our range of services to meet the evolving energy mix and customer needs.”
We present our outlook for comparable EBITDA in 2023. We expect this to be 5-7% higher than in 2022. Despite the difficult market environment, our business remains resilient and continues to deliver strong results. Approximately 95% of the expected equivalent EBITDA is under long-term take-or-pay contracts and/or rate regulation that provides insulation against rising inflation and interest rates. In addition, approximately 85% of our long-term debt is fixed rate, with a weighted average maturity of approximately 20 years and a weighted average coupon of 4.8%.
TC Energy’s secured capital program is expected to be primarily funded by a combination of cash flow growth, long-term debt growth, hybrid capacity and other capital sources. Funding requirements in excess of targeted annual capital expenditure range of $5 billion to $7 billion expected to be financed through a flexible $5 billion+ divestiture program to be completed during 2023 doing. The potential impact on growth trajectory through 2026 will be determined by the timing and earnings of monetized assets and contributions from projects not yet licensed. However, the additional financial flexibility created through this process strengthens our strategic position to deliver shareholder value over the medium to long term. The Company remains committed to ending its discounted dividend reinvestment program with the quarterly dividend declaration ending June 30, 2023.
Coastal GasLink project update
The Coastal GasLink project continues to face significant cost pressures related to labor costs, skilled labor shortages, contractor underperformance and disputes in western Canada. The project has also been affected by other unforeseen events such as drought conditions, erosion and sediment control challenges. As a result, project costs and corresponding funding requirements for TC Energy are expected to increase significantly. We are actively pursuing cost reductions and potential recoveries from our contractors to offset some of these costs, some of which will not be finalized until after project completion. In early 2023, we plan to provide updated capital cost estimates incorporating a range of recent developments.
The project is currently 80% complete overall and continues to target mechanical completion by the end of 2023. TC Energy is committed to the highest levels of employee safety, along with the communities and environments in which we work. This is our main commitment above all else.
“Phase 1 of Coastal GasLink has had cost performance challenges, but we do not believe this will affect the sustainability of our 3-5% dividend growth rate or our ability to accelerate our deleveraging target from 2026. No,” said Poirier. “We continue to see long-term value in the Coastal GasLink project for WCSB, our customers, and the community across the project route.”
The Investor Day event is scheduled for November 29, 2022 from 7:55 AM to 11:00 AM (5:55 AM to 9:00 AM EST). 2022 Investor Day — Energy’s website in Toronto (tcenergy.com) or TC Energy Investor Day 2022 (chime.live) The webcast will also be posted online for replay after the event.
Presentation materials will be available on Investor Day 2022 — Toronto (tcenergy.com) at 7:00 AM EST (5:00 AM MST).
About TC Energy
We are a team of over 7,000 energy problem solvers working to move, generate and store the energy that North America depends on. Today we are taking action to make that energy more sustainable and safe. We innovate and modernize to reduce emissions from our business. We also provide new energy solutions, from natural gas and renewables to carbon capture and hydrogen, and help other companies and industries decarbonise. Along the way, we invest in our communities and work with our neighbors, customers and governments to build the energy systems of the future.
TC Energy’s common stock trades on the Toronto (TSX) and New York (NYSE) stock exchanges under the symbol TRP. For more information, please visit TCEnergy.com.
Forward-Looking Information
This release contains certain forward-looking information that is subject to significant risks and uncertainties (such statements generally include statements such as “anticipate,” ”, “could”, “would”, “should”, etc.). ”, “estimate”, “intend” or other similar words). Forward-looking statements in this document include our projected equivalent EBITDA from 2022 to 2026, projected cash flows, available future funding options, including disposals, and projected dividend growth. , including, but not limited to, statements regarding anticipated access to capital and costs. Expected schedule and cost of the planned project. The key assumptions upon which our forward-looking information is based include realization of expected gains from the sale, projected construction costs, schedule and completion date, access to capital markets, projected industry, market, and assumptions about economic conditions. , inflation, foreign exchange and interest rates. The forward-looking statements in this document are intended to provide security holders and potential investors of TC Energy with information regarding TC Energy and its subsidiaries. This includes management’s assessment of the future plans and financial prospects of TC Energy and its subsidiaries. All forward-looking statements reflect TC Energy’s beliefs and assumptions based on information available at the time the statements are made and are not guarantees of future performance. Because actual results could differ materially from the forward-looking information, you should not place undue reliance on forward-looking information or use forward-looking information or financial forecasts for purposes other than their intended purposes. please give me. We will not update forward-looking information as a result of new information or future events, except as required by law. For additional information regarding the assumptions made and the risks and uncertainties that could cause actual results to differ from those expected, please refer to the latest version filed under SEDAR’s TC Energy profile at www.sedar.com. See our Quarterly Shareholder Reports and Annual Reports. and with the US Securities and Exchange Commission (www.sec.gov).
Non-GAAP measures
This release refers to comparable EBITDA and cash generated from operations (FGFO) that do not have a standardized meaning as defined by US GAAP and, therefore, similar amounts presented by other entities. may not be comparable to the indicators of The most directly comparable measures presented in the financial statements are segment profit and net cash from operations, respectively. See adjustments below. For more information, please refer to the MD&A Non-GAAP Measures section of our most recent quarterly report. MD&A can be found on his SEDAR (www.sedar.com) under TC Energy’s profile.
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Media inquiries:
Heidi Carlsen / Jamie Harding
media@tcenergy.com
403-920-7859 or 800-608-7859
Inquiries from investors and analysts:
Gavin Wiley / Hunter Maw
Investor_relations@tcenergy.com
403-920-7911 or 800-361-6522
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