TC ENERGY NET INCOME $928 MLN

TC ENERGY - CALGARY, Alberta, Nov. 01, 2019  -- TC Energy Corporation (TSX, NYSE: TRP) (TC Energy or the Company) today announced net income attributable to common shares for third quarter 2019 of $739 million or $0.79 per share compared to net income of $928 million or $1.02 per share for the same period in 2018. Comparable earnings for third quarter 2019 were $970 million or $1.04 per common share compared to $902 million or $1.00 per common share in 2018. TC Energy's Board of Directors also declared a quarterly dividend of $0.75 per common share for the quarter ending December 31, 2019, equivalent to $3.00 per common share on an annualized basis. Commencing with the dividends declared October 31, 2019, the Company discontinued the practice of issuing common shares from treasury at a discount to satisfy purchases under its Dividend Reinvestment Plan (DRP).

"During the third quarter of 2019, our diversified portfolio of regulated and long-term contracted assets continued to perform very well," said Russ Girling, TC Energy’s President and Chief Executive Officer. "Despite significant asset sales that have accelerated the strengthening of our balance sheet, comparable earnings per share increased four per cent compared to the same period last year while comparable funds generated from operations of $1.8 billion were 15 per cent higher. The increases reflect the robust performance of our legacy assets and contributions from the approximately $8.2 billion of growth projects that have entered service to date in 2019. Those increases were partially offset by lower contributions from approximately $3.4 billion of assets that were monetized during the first nine months of the year."

The asset sales included the Coolidge gas-fired power plant in Arizona, certain Columbia Midstream assets and an 85 per cent equity interest in Northern Courier. In addition, the Company has entered into an agreement to sell its Ontario gas-fired power plants including Napanee, Halton Hills and a 50 per cent interest in Portlands Energy Centre for approximately $2.87 billion. Including this transaction, which is anticipated to close in first quarter 2020, proceeds from asset sales are expected to total approximately $6.3 billion.

"Each of these transactions allowed us to surface significant value and redeploy the proceeds into our $30 billion secured capital program, thereby reducing our need for external funding including common equity," added Girling. "When combined with our significant internally generated cash flow and access to debt capital markets, we are well positioned to prudently fund our capital program in a manner that maximizes earnings and cash flow per share and is consistent with achieving targeted run-rate credit metrics including debt-to-EBITDA in the high four times area. As a result, we do not expect to issue any additional common shares from treasury under our Dividend Reinvestment Plan commencing with fourth quarter 2019 dividends."

Looking forward, TC Energy also continues to progress more than $20 billion of projects under development including Keystone XL and the Bruce Power life extension program. Success in advancing these and other growth initiatives that are expected to emanate from our five operating businesses across North America could extend our current dividend growth outlook of eight to 10 per cent through 2021.

Highlights

(All financial figures are unaudited and in Canadian dollars unless otherwise noted)

• Third quarter 2019 financial resultsDeclared a quarterly dividend of $0.75 per common share for the quarter ending December 31, 2019
  • Net income attributable to common shares of $739 million or $0.79 per common share
  • Comparable earnings of $970 million or $1.04 per common share
  • Comparable earnings before interest, taxes, depreciation and amortization of $2.3 billion
  • Net cash provided by operations of $1.6 billion
  • Comparable funds generated from operations of $1.8 billion
  • Comparable distributable cash flow of $1.7 billion or $1.78 per common share
• Discontinued practice of issuing common shares from treasury at a discount to satisfy purchases under DRP commencing with the dividends declared October 31
• Announced $1.2 billion West Path Delivery Program, an expansion of the NGTL and Foothills pipeline systems
• Initiated the US$0.3 billion Gas Transmission Northwest (GTN) XPress project
• Commenced commercial operations on the Sur de Texas pipeline in September
• Continued construction activities on the $6.6 billion Coastal GasLink pipeline project and advanced funding plans for the project
• Received Nebraska Supreme Court decision in August affirming the approval of the Keystone XL pipeline route through Nebraska
• Received Draft Supplemental Environmental Impact Statement (DSEIS) for the Keystone XL project in October
• Closed the sale of certain Columbia Midstream assets for approximately US$1.3 billion
• Completed the partial monetization of Northern Courier for aggregate gross proceeds of approximately $1.15 billion
• Entered into an agreement to sell our interests in three Ontario natural gas-fired power plants for approximately $2.87 billion
• Issued $1.0 billion of long-term fixed-rate Medium Term Notes in September 2019
• Issued US$1.1 billion of Junior Subordinated Notes in September 2019.

Net income attributable to common shares decreased by $189 million or $0.23 per common share to $739 million or $0.79 per share for the three months ended September 30, 2019 compared to the same period last year. Per share results reflect the dilutive impact of common shares issued under our DRP in 2018 and 2019 and our Corporate At-The-Market (ATM) program in 2018. Third quarter 2019 results included an after-tax loss of $133 million at September 30, 2019 related to the Ontario natural gas-fired power plants held for sale, an after-tax loss of $133 million related to the sale of certain Columbia Midstream assets in August 2019 and an after-tax gain of $115 million related to the partial sale of Northern Courier in July 2019. Third quarter 2018 results included after-tax income of $8 million related to our U.S. Northeast power marketing contracts. These specific items, as well as unrealized gains and losses from changes in risk management activities, are excluded from comparable earnings.

Comparable EBITDA increased by $288 million for the three months ended September 30, 2019 compared to the same period in 2018 primarily due to the net effect of the following:

• higher contribution from Liquids Pipelines primarily due to higher volumes on the Keystone Pipeline System and increased earnings from liquids marketing activities, partially offset by the sale of an 85 per cent equity interest in Northern Courier in July 2019
• higher contribution from U.S. Natural Gas Pipelines mainly due to increased earnings from Columbia Gas and Columbia Gulf growth projects placed in service, partially offset by decreased earnings from Bison (wholly-owned by TC PipeLines, LP) and from the sale of certain Columbia Midstream assets in August 2019
• higher contribution from Canadian Natural Gas Pipelines mainly due to the Canadian Mainline recovery of increased depreciation and higher incentive earnings in 2019
• higher contribution from Power and Storage primarily due to increased Bruce Power results from a higher realized power price and higher output, partially offset by the sale of our interests in the Cartier Wind power facilities in fourth quarter 2018 and the sale of our Coolidge generating station in May 2019.

Comparable earnings increased by $68 million or $0.04 per common share for the three months ended September 30, 2019 compared to the same period in 2018 and was primarily the net effect of:

• changes in comparable EBITDA described above
• higher income tax expense primarily due to higher comparable earnings before income taxes and lower foreign tax rate differentials
• higher depreciation, largely in Canadian Natural Gas Pipelines which is fully recovered in tolls as reflected in the comparable EBITDA discussion above, therefore having no impact on comparable earnings. In addition, higher consolidated depreciation reflects new projects placed in service
• lower AFUDC in U.S. Natural Gas Pipelines primarily due to Columbia Gas and Columbia Gulf growth projects placed in service, partially offset by continued investment in our NGTL System expansion and Mexico projects.

Comparable earnings per common share for the three months ended September 30, 2019 also reflects the dilutive impact of common shares issued under our DRP in 2018 and 2019 and our Corporate ATM program in 2018.

Full PDF version

-----

Earlier:

2019, August, 2, 11:15:00 TC ENERGY NET INCOME $1.1 BLN TC Energy Corporation (TSX, NYSE: TRP) (TC Energy or the Company) announced net income attributable to common shares for second quarter 2019 of $1.1 billion or $1.21 per share compared to net income of $785 million or $0.88 per share for the same period in 2018. English

2019, July, 31, 13:25:00 TC ENERGY SELLS $2.87 BLN TC Energy Corporation (TSX:TRP) (NYSE:TRP) (TC Energy) announced that it has entered into an agreement through its wholly-owned subsidiary, TransCanada Energy Ltd., to sell interests in three Ontario natural gas-fired power plants to a subsidiary of Ontario Power Generation Inc., for approximately $2.87 billion. English

2019, May, 5, 10:55:00 TRANSCANADA CHANGED NAME TO TC ENERGY We changed the name of our company from TransCanada to TC Energy, following the approval of our shareholders at our Annual and Special Meeting of Shareholders on May 3, 2019. English