In This Article:
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Net Capital Expenditures: Expected to be between $5.5 billion and $6 billion for 2025.
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Assets into Service: $8.5 billion of assets expected to be placed into service in 2025.
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EBITDA Outlook 2025: Reaffirmed at $10.7 billion to $10.9 billion, representing a 7% to 9% increase over 2024.
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EBITDA Outlook 2027: Targeted at $11.7 billion to $11.9 billion, implying a 5% to 7% three-year growth rate.
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Bruce Power Availability: Achieved 87% availability in Q1, with full-year 2025 expected in the low 90% range.
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Alberta Cogen Fleet Availability: Delivered 98% availability in Q1.
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Average Realized Price: $106 per megawatt hour, up $12 from Q1 2024.
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Dividend Growth: 25 consecutive years of dividend growth.
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Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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TC Energy Corp (NYSE:TRP) reported a strong start to 2025 with safety incident rates at five-year lows.
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The company completed the Southeast Gateway project 13% below budget, enhancing long-term cash flow.
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TC Energy Corp (NYSE:TRP) is on track to place $8.5 billion of assets into service in 2025, with projects tracking approximately 15% below budget.
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The Northwoods project, a $900 million expansion of the ANR pipeline system, is backed by a 20-year take-or-pay contract.
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The Bruce Power Major Component Replacement program is expected to add significant long-term value by extending the life of Unit 5 by over 35 years.
Negative Points
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Approval from the National Energy Commission (CNE) is still pending for the Southeast Gateway project, delaying its in-service date.
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The power and energy solutions business experienced lower contributions from Bruce due to planned outages and ongoing refurbishments.
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Natural gas storage contributions were lower compared to the exceptional performance in early 2024.
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The company remains above its 4.75 times debt-to-EBITDA target for 2025, indicating elevated leverage.
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There is uncertainty regarding the regulatory framework in Canada, which could impact future infrastructure development and LNG projects.
Q & A Highlights
Q: Given the strong origination pipeline for US gas projects, how is TC Energy considering CapEx and potentially going to the high end of the $6 billion to $7 billion annual range? A: Francois Poirier, President and CEO, emphasized the strategic advantage of TC Energy's footprint and the focus on human capital to ensure project execution. He stated that the company is committed to maintaining a debt-to-EBITDA ratio of 4.75 times and does not expect to exceed the $6 billion annual CapEx in 2025 or 2026.