TC Energy’s Earnings Call Highlights Robust Growth

Tc Energy Corporation ((TSE:TRP)) has held its Q1 earnings call. Read on for the main highlights of the call.

In the recent earnings call, TC Energy Corporation showcased a robust operational and financial performance, highlighting significant project completions and a promising financial outlook. Despite some regulatory delays and operational challenges, the overall sentiment was positive, driven by notable achievements and strategic growth initiatives.

Strong Start to Fiscal Year 2025

The company reported a strong start to fiscal year 2025, with safety incident rates at five-year lows. Despite market volatility, TC Energy’s business model continues to deliver strong results, identifying multiple drivers for future growth.

Southeast Gateway Project Completion

The Southeast Gateway project has been completed and is ready for service, finishing 13% below the original budget. This project is contracted until 2055 and represents a significant inflection point in TC Energy’s long-term cash flow.

Record Operational Performance

TC Energy set 13 all-time delivery records since early 2024, with throughput increasing by 6% in the quarter. This highlights strong demand and operational efficiency within the company.

Northwoods Project Announcement

The US $900 million Northwoods project has been approved, expanding the ANR pipeline system. It is expected to enter service in 2029 and is backed by a 20-year take-or-pay contract.

Bruce Power Major Component Replacement Program

Unit 5 MCR has been sanctioned, marking a $1.1 billion investment in emission-less nuclear energy, which will extend the life of Unit 5 by over 35 years.

Financial Outlook Reaffirmed

TC Energy reaffirmed its 2025-2027 EBITDA outlook, showing resilience against market volatility. The 2025 comparable EBITDA outlook remains between $10.7 billion and $10.9 billion, marking a 7% to 9% increase over 2024.

Regulatory Approval Pending for Southeast Gateway

The Southeast Gateway project is awaiting final regulatory approval from the National Energy Commission (CNE) to commence service, which is expected by the end of May.

Bruce Power Availability

Bruce Power achieved 87% availability, which was in line with the plan but lower due to the planned outage on Unit 5.

Lower Contributions from Power and Energy Solutions

There were decreased contributions from Bruce Power, given units 3 and 4 undergoing MCR and the planned outage on unit 5, partially offset by a higher average realized price.

Forward-Looking Guidance

During the earnings call, TC Energy provided several key financial and operational metrics. They expect net capital expenditures for 2025 to be between $5.5 billion and $6 billion, with $8.5 billion of assets on track to be placed into service this year, approximately 15% below budget. The company reaffirmed its 2025 EBITDA outlook, projecting between $10.7 billion and $10.9 billion, a 7% to 9% increase over 2024 results. For 2027, TC Energy targets EBITDA of $11.7 billion to $11.9 billion, indicating a 5% to 7% three-year growth rate.

In summary, TC Energy’s earnings call reflected a positive outlook with strong operational performance and strategic growth initiatives. Despite some regulatory and operational challenges, the company remains resilient, with a reaffirmed financial outlook and multiple growth drivers in place.