TCP - Earnings call transcript Q4 2019

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Operator

Good morning, ladies and gentlemen. Welcome to the TC PipeLines, LP 2019 Fourth Quarter Results Conference Call. I would now like to turn the meeting over to Ms. Rhonda Amundson. Please go ahead, Ms. Amundson.

Rhonda Amundson

and good Conference Welcome by Officer Call. Nathan our and Fourth TC our Chuck Operator, Watson; Brown; XXXX Janine Quarter I'm VP Morris. you, morning, Principal to everyone. PipeLines President and Thank our Manager Financial General joined today

available can the Please that be the section under is found Events presentation website & at their remarks will in note our accompany tcpipelineslp.com, heading Presentations. slide and a on where it Investors

review begin XXXX. with of for which results. close up financial of and PipeLines' a will Nathan fourth a review on return the quarter call XX, annual will results the provide our key of program, update Chuck a and with some Nathan fourth TC and and brief wrap strategies today commercial and our following our growth the discussion remarks provide growth quarter assets XXXX highlights Janine will our takeaways. will the with and Partnership's year December a ended

Following his the conference remarks, your ask to coordinate operator questions. I prepared will

risks the in results or materially assumptions one assumptions as on discussed All well If statements Securities actual those available and statements I with and to may and and begin, certain reflect you of current Exchange our our to that the statements. uncertainties statements future materialize, call with our if prove during financial detail described currently forward-looking our this from more to are views filings as respect and XXXX conference future assumptions or performance. remind uncertainties underlying made we events would will based events subject as like various are to be in Before differ as our information incorrect, these made subsequent beliefs forward-looking regarding as forward-looking in by the XX-K well us. risks, or These Commission. future

net and adjusted is measure comparable common during distributable are earnings flow to to GAAP exclude EBITDA period measure Please the more reconciliation measures, and distributable financial to operating period flow and financial provided income. an adjusted adjusted as to Adjusted measures cash is evaluate most quarter-to-quarter And measures earnings, distribution certain of provide our GAAP we presented to in generated results provide of earnings EBITDA, also note measure capability. filings. cash are impact directly unit, reconciles to of during approximate closely a earnings our our supplement cash that presentation. a from SEC we EBITDA per used cash related a the cash and These the items. during the nonrecurring use non-GAAP our a provide flow

I'll over call turn Nathan. With the that, to

Nathaniel Brown

Good today. Thanks, thanks morning, everyone, Rhonda. for and us joining

in TC quarterly morning I'm with pipeline at portfolio solid our of continuing assets release, Slide our news to PipeLines' this outlined X, and As share perform pleased looking to results, expected. as

during $XX million QX income us and net the generated and proceeds during quarter the year. impairment Bison the of fourth XXXX XXXX million Tuscarora for adjusting same onetime contract for We the noncash for period. in provides After and termination charges of $XXX

Bison gas results decreases lower was rate decrease year-over-year, on XXXX. million due our strong contracts pipeline million natural other the flows, XXXX after adjusted lower from the mitigating emanating discretionary the from XXXX the Our Actions. late an largely Revenue from its was partial payout $XXX $XX revenue to in of of XXXX. comparable The systems same were than FERC in largely revenue and XX% period XXXX the we basis from earned in

full in year to of Our and the adjusted for lower was EBITDA quarter period compared $XXX same at $XXX million million similarly for XXXX. the XXXX the

XXXX. $XX compared to million million in The and quarter and XXXX sustained for DCF was maintenance from were integrity of fourth system for capital expenditures decrease cash utilization volumes. increased and and respectively. primary the resulting natural or higher $XX higher $XXX We lower earnings million million, with together in to response drivers in EBITDA, the transportation the $XXX year generated a distributable flow XXXX, The gas although enjoy flow, natural of on costs $XXX paid cash unitholders quarter a million a tolls. reflect million capital these year to distributable through and We pipelines, for fourth base $XX will added distributions higher costs, on the our higher return the of maintenance environment and the be future and rate on drag during out full to and our flows in positive of gas

in in healthy our position, financial will discuss later in self-fund order a is allow of forward. building us the distribution XXXX. to for detail little distribution which consistent Partnership common financial that $X.XX We with results of quarter distributions more to which per declared level as The we XXXX is growth at quarterly Chuck maintaining organic continue current prudent believe call. its its our unit, of and also fourth continue quarter our to each a move will the

underway. continue organic We growth expansion our work and begun GTN And is advance has Tuscarora on also project, program. XPress our to

progressing in Our Phase XPress, service on in Westbrook of providing with projects in incremental both capacity X, for November are X PNGTS pipeline the of other well, Phase X PNGTS organic Northeast. our XXXX, system and Portland XPress

decision including across low Baja and project North obtaining project, will more compression-only Iroquois We the investment detail other the discuss project process our by subject continue other projects in final a developments in regulatory in impact project commercial other the and The approvals. couple minutes. the shippers' Enhancement projects. our to XPress North Janine develop is and Baja Iroquois and other Compression of these is portfolio, to

proud ratio financial our These continued approximately for XX, fourth know distribution ongoing X.Xx at our unitholders, also depends critical was portfolio our success safety and we're commercial our unitholders. reliability quarter while ability of our coverage create the and and environmental approximately profitability leverage on testament strategies, to with quarter, for and remained I safety to very want resiliency success our at that ended strong of to performance a looking have to responsibility. for which ongoing we are bank results stress December combine returns of And us. X.Xx, asset the financial are our we the our position, social During balance and priorities our value generated the to XXXX.

working long governance. collaboratively our a highest history adhere have corporate We and stakeholders of of with to the standards

Our environment a Energy, reliable do. committed XX-year and to that has and we general in protecting record partner, TC we're of safe track the operations, all

improve are critical and achieving the contributors that greenhouse America Our and footprint beyond. North of of life in communities and be they further natural targets emission believe quality assets important gas systems gas will we serve, the to our carbon to

with now to and market Watson, additional our will over provide turn call commercial our the color our on I VP developments to together Janine General and outlook. our assets Manager,

Janine Watson

Thanks, morning, everyone. good Nathan, and

footprint, Moving Commercial TC our X. our teams to for revenues to actions. successfully across market demand interruptible transportation nearly performed FERC the hard on services, short-term assets very PipeLines' XXXX recouping well Slide strong discretionary due and transportation lost services. continued to quarter this by worked all driven and

recoup rate a debottlenecking Turning short-term XX% to XXXX. enabling together first XXXX of increased delivery X, our from arising upstream XXX,XXX ongoing benefited from settlement. with incremental GTN an the TC decrease, These flows, GTN its largely on the dekatherms November day projects largest sales, enabled to Kingsgate, of asset. Energy's

will transportation volume of dekatherms become available which to will capacity the day I current Looking volumes, are of upstream XXXX-XXXX systems upstream GTN's of GPN a few maximum project frame, capacity by capacity bring These exclusive up a XXXX. to will XXX,XXX forward, for the GTN we on-stream parity anticipate by end time which a the minutes. with discuss be and XPress increases the further will in

discretionary throughout forward backhaul equity compared driving to of short-term million operating team higher to on transportation open Northern interest Border's year, Border successfully XXXX utilization held earnings in XXXX packages up equivalent due seasons were were in to a Northern those as sales. this annual via this XXXX. approximately generated costs sold expenses. revenue of asset series and roughly $XX the and higher high Operating strong earned marketing capacity

about though the continues Lakes a to primarily to $X relating performer, prior costs Great of earnings OM&A is increased This to be compared year. million due were securing steady its result equity down annual was to that QX - the certain end the of year of Bison [indiscernible] at by necessary to end land contract XXXX. pipeline the buyouts rates. at Revenue in at sorry, down due XXXX our

asset continue necessary this maintenance redeployment We for of a and on ready next will are part slide. conduct which solution, discuss on I to as potential all Bakken the

of held Portland's until QX results its historical of as in compared relied PXP and summer during contracts short-term X. sales took last it effect the terminated months, XPress contracts Westbrook's November and its the fourth quarter new on XXXX steady to

short-term contracted highly all were QX the on Baja and make assets opportunity right. Tuscarora to which Quarterly are results on capitalize basis are These systems on North of they sales, and a to our conditions incremental roughly have XXXX. comparable firm when market transmission

performer was XXXX. due contracting. Iroquois weather-related of decrease in opportunities discretionary of steady lower to QX scheduled also XXXX both because did strong than XXXX This manifest transportation a and revenues a the were, with firm rate not in however,

will I This our a recognized days, nearly assets operated to assets for all with recording years that's Finally, impressive high that performance. their would at incident. has no without note I of like recently operational levels safety an our for Tuscarora or were team, highlight who issues. operating safety operated significant single team of availability, outstanding X,XXX XX

of ever XX key by rate expansion organic average underpinned by A is focus a growth the largest of reliability in our in growth service program. November XPress work with having this contracts in and execution QX This X. for organic an project, our project term fully on is to an for us Turning We XXXX. excess to fixed GTN project, years. our integrated Slide of began view negotiated

for replacements, XXXX. GTN are by at compression replacing X work engineering the X the in of be to in like-for-like end service XPress new stations, expected legacy of with Phase of is the compressors these them technology. ongoing year state-of-the-art removal Detailed entails which

approximately Phase of by high XPress station through to total in of of compressor addition GTN unit November X dekatherms new the will a by a the in of of XXX,XXX service compressor existing added XXXX. the GTN capacity be system efficiency expand

We of around gas service existing when necessary the a project Wadsworth, compression-only FERC region. Nevada. day Tuscarora a of for dekatherms November demand will $XX XX,XXX capacity XPress project natural project midyear. are its also in progressing modest filings million add making We This anticipate in our project, station to XXXX this growth completed compressor our at at

our XPress This at finally, project, Portland. markets late multiphase system and is Westbrook on-time been help X last for is X XXXX. Canada. November project Atlantic an Portland. Northern in million this as Portland Phase Phase With the requires designed approximately in Phase million to X service dekatherms $XXX have add quarters, of Phase with is approximately came proceeding November Phase into will of New and expansion last XXXX. service service in approximately XXXX, England project in serve associated Portland costs addition XX,XXX per highlighting a We're project $XX in the November capacity a X station existing X XPress capital and of of and And capacity XXXX. X, this on-budget. an per the and by several will facilities we day plan also This proceeding of firm total bring for compressor our November to to pipeline on at XXX,XXX system of dekatherms further project in day and

ride XX,XXX both is by capacity be expansion XXXX fully to XXXX additional upstream X work on Phase day of service doubled November are The assets the this TC PNGTS' from in day to dekatherms of provide Energy's by have will XXX,XXX day be pipeline capacity the to in of almost - by done at per of service, and Portland for dekatherms projects a close an per supported sorry, XXXX. will XXXX. to end beginning Once for XXX,XXX

take may further Looking continue of network. existing pipeline advantage TCP's other assess forward, opportunities to we what arise to

can You we that the X developed. on opportunities have current see map being highlighted

Baja's earnings project a mainline noted an day estimated million This gas dekatherms additional contemplates Baja Arizona we natural transport $XX was our per single calls, added station at project, As to compressor system previous XXX,XXX compressor Ogilby, California. along existing between are on be and to Ehrenberg, XPress of an project Ehrenberg. developing will North North the

Baja with in process, enabled anchor or an We compression, system, the Iroquois project. on has which North the FERC with XXXX, the project the by enhancement date ExC higher authorize lower is service as fossil a the in of emitting region as intervention the International decision fuel this itself In application the reduced as XXXX. an project. of LNG that to of of at Northeast, development Also the to an construction including Sempra XXXX July shipper forefront fuels for energy this filed from we December FID identifying is of phase this on from and in-service note shipper November as potential of the dependency oil. project anticipate potential shift early refer on the the project. expansion by out resources, advocating of mandated for renewables, by provides Iroquois to filed a

XXXX. optimize potential customers, pipeline, and day total transition supply future Con project's estimated dekatherms the an impact gas capacity The the is enhancements National in-service successful, the orderly Iroquois of renewable be to per with stations to a of ExC in energy through rational the future. current project compressor XXX,XXX the and along utility meet facilitating estimated approximately compressor to November to date a If Edison the Grid, while minimizing environmental has needs at existing and system

Earlier the million, The capital with estimated other to to application contracts authorize is this an with filed XXX% construction It it underpinned will project. term. Iroquois by $XXX be regulatory approvals. FERC and to year, remains cost of various subject XX-year be the and

to X.X push supply seeking per up pipeline. could by the significant incremental in We of and capacity the Border Bison Bcf met to there that Bakken day takeaway turning know be Now Northern is our a that area. order

leverage continues for a team that Bakken our system. a of project would market development the reversal via footprint Bison a business provide to to Our cost-effective gas potential progress incremental outline existing

markets markets. from paths, the to business include on Express capacity Lakes, in for via long-term Coast last This supply that material Alberta which any transportation to of system project, an export dekatherms will Lakes to per announced relation on average lakes from others maximum tenure pipeline. Canadian TC finally, opportunities Great contract service Great is ANR result in XXX,XXX the growing in-service our spending 'XX the rate to will We team transportation And Lakes several contract expansion week, Great between foresee XXXX. focused seamless U.S. WCSB our capital by Energy just Great Canada ANR LNG XPress. and years. connect anticipated development its The U.S. is mainline utilize finding Gulf of day project Alberta existing and date offer don't project an to on

gas in and continues key gas from markets. for noted is we've be Lakes Great producing As before, a to critical link a to conduit valuable moving natural basins

with So as opportunities program, our in on and towards existing summary, we growth TCP's we management execute is work pleased self-funding to progress continue our new growth footprint. across our

Slide is for to a now X. This slide us. Turning new

included mentioned Baja PipeLines' projects the of our as our The over major are, represent program growth slide share ever self-funding it Our organic strategic much sustainable more based our portfolio. across earlier, significant than our The growth on subject opportunities CapEx to estimated proportionate XXXX illustrates our focus CapEx for identify given XXXX TC has levels. this chart to been, on is ownership North outlook in increase aging period. integrate maintenance Iroquois bars shift compressor to projects project and replace included our technology This a stages sites the will and given growth existing cutting-edge it's development. like CapEx. chart and also is of route. for and at grow the them to infrastructure, the GTN than capacity, capital longest It more so upgrade capital. system essentially modernize further as program designed approval their growth XPress that The we CapEx modernization in is have reliability

facility period at our We asset and the through latter with cash capital new from TC a operations, PipeLines. debt are No together will equity contributions levels from from this funded self-fund as during anticipated. combination required. issuances The revolving of

time. to earlier. CapEx CapEx This our to to self-funded. fixed expected And added million Our as rate be recourse XXXX, respective is be recovered mentioned $XXX in and/or share is pipeline over and contracts maintenance Nathan bases again, proportionate rate systems expected of negotiated through rates

I will more to Chuck annual discuss Officer, Morris, our our quarter Financial detail. now turn fourth call in the and Principal to results final over

William Morris

morning, good and Janine, Thanks, everyone.

of million $XX buyout lower X. QX fourth at per of XX% the compared Slide partially to nonrecurring XXXX. review the lower XXXX, and the fourth of XX% quarter of lower were given of the is of was annual year-over-year. in termination Moving million of financial fourth primarily results. $XX adjusting This contracts XXXX at the or $X.XX income in After a items charges. for million or reflective unit revenues on quarter $X.XX loss adjusted in quarter the Bison, the of decrease earnings and offset Net $XXX unit by XXXX to I'll and per partnership's financial now its end depreciation

were factors. lower versus $XXX XXXX the for to well lower in earnings by quarter higher XXXX and than similarly in XXXX in integrity same Bison again, same of for full operating from quarter $XXX the $XXX corporate and higher lower as adjusted and in also EBITDA million in in Our due million as maintenance XX% million XXXX by of to support fourth to the revenue at the year expenses the XX%, costs. costs Adjusted was compliance primarily due XXXX increase the

On an million the fourth the paid $XXX in $XX amount million to in XXXX common EBITDA QX of that XXXX. $XXX annual The compared XXXX. same partnership was basis, in adjusted paid in distributions quarter, million was unitholders to of

to $XXX the QX XXXX. the beginning in per the in of million distributions common to the The Partnership decrease distribution paid full of year in XXXX. compared declared million was quarterly For $XXX the of XXXX, unit $X.XX in due decline

XXXX. maintenance was than Class result which We GTN, that XXXX, lower reduced distributable also higher units paid a B $X was to generated. the of paid cash in at year-over-year The our CapEx as $XX in million million flows reduction

This quarter million $XX flows XXXX distributable XXXX XXXX. declared $XX quarter lower quarters distribution in of in And cash previous for consistent fourth earlier, were fourth each in As we XXXX, in common our $X.XX the unit. that quarter of the and year-over-year. million Nathan with mentioned is declared per

cash full in systems decrease The was the our with same to the both For capital repayments. million expenditures the higher interest ongoing maintenance distributable our on $XXX during in instances compared XXXX. year, factors by XXXX in pipeline expense together offset net due $XXX income, to due generally to impacting debt flow million quarter, was lower

XPress noted be capital to costs Going distributable against our growth Janine, GTN cash therefore by going as will classified flow. and forward, are not be netted as

were year fourth the a million our Turning X. pipelines the consolidated of results and of same XX%, approximately by Revenues to last in full XXXX Slide year XX%. quarter our from than in of quarter those $XXX over decrease lower showed

earlier, discretionary mentioned our the we lower As revising going XXXX payments other on contract in decreases buys revenue portfolio XXXX, our across on in as in pipelines forward, were result the Overall, together revenue by this contracting mitigated XXXX. that was primarily FERC due scheduled The onetime to from comparable result of revenue rate is our starting emanating in solid XXXX the to lower flows base. a with the consolidated QX and termination our of strong gas natural increased systems. of system in actions from XXXX largely contracting

And its quarter where $X fourth related during the and compliance to were the the higher higher million resulting of also in fourth quarter with XXXX. Iroquois settlement support than in and during an impacts of achieved maintenance FERC and XXXX XXXX to earnings the XXXX quarter cold Lakes, due expenses million XXXX. were those decrease Great the $XX in Equity of Operating, the a XXXX. primarily comparable XXXX the the of period to administrative shippers, annual was year-over-year. Iroquois sales quarter that same Lakes' on were actions. corporate rate costs seasonal same basis, had rate from not in winter incremental in weather the Great are decline the same On

million impairment Bison Depreciation result as due in debt during asset that outstanding XXXX quarter XXXX. the than expense XX% lower XXXX X% $XXX on lower year our ongoing to reductions full for period was in in full of Financial of same quarter versus XX% amounted by of year a the balance, we the recognized charges XXXX. were lower fourth the the fourth to which the and also the of

our financial to Slide XX. on now position Moving

financial over have reflective years. measures is the Our of we few position that healthy proactive the past taken

Our high solid is structure balance sheet infrastructure by our energy assets. is quality strong underpinned pipeline capital and our

organically BBB investment-grade flexibility Our upgrade provide in look flat, grow our the believe our one and credit portfolio BBB- notch financial including and our the financial us S&P from ratings to solid outlook. from future, as ratings, the with we recent reflect we to condition

a suite need self-funded We will the execute to basis markets. the access of our organic projects on without capital equity growth

position remains liquidity strong. Our

has our for of our with available February under Partnership as facility a prudently senior in balance undrawn ratio X.Xx. model, a $XXX manage capacity resulting bank organic we XX, capacity balance. The We overall to leverage borrowing reduced self-funding outstanding million our to and million of by in future debt growth, XXXX. order credit build continue Consistent debt of in approximately $XXX XXXX,

in calls, of the is ratio we've buyout the As impact area Bison reflected earnings bank expected noted Xx in high Xs as are leverage the previous the to calculation. low onetime to items, to migrate the contract including

our Nathan unit, maintained common solid in Janine $X.XX of ended for XXXX. to ratio mentioned continue in XXXX as distribution growth our execute And X.Xx organic distribution per a earlier, XX, quarter the and We proceeding time to with additional December we PXP steel on XPress, coverage opportunities. resulting across both we PNGTS' XPress program, growth projects And the XPress ground in on advantage explore continue including to and pipeline system and Westbrook Tuscarora use and our GTN at our budget. on

fourth turn I'll the back results. quarter Nathan. financial That concludes on remarks over call my the to now

Nathaniel Brown

Slide Chuck. refer to Thanks, now I'll XX.

outset, continue As good year, we competitive perform I to proving the assets well, a had quarter our resilience their out position. very and mentioned and strong this at

XX% our long-term portfolio systems our long-term In critical underpinned are shippers. with credit-worthy basis. on gas from infrastructure cash contracts continue be our of take-or-pay contracted a will by forward, pipeline to Going assets flow natural derived aggregate,

have manage position our actions and to continue prudently We believe a balance in our sheet. financial resulted strong

to outlined are as healthy organic projects. very targeting high ratio We to in leverage enabling equity the self-fund current in PNGTS currently and And our Xx to healthy to each approximately approximately our coverage of X.Xx maintain this bank is These bank our area. quarter earlier us GTN, the metrics X.X we Longer-term, markets Tuscarora ratio X.Xx. growth, Our X.Xx. is we we're and program. need our our that low capital growth do leverage fund to X, not distribution ratio reiterate distribution coverage access

Chuck our mall organic noted, to As consistent with self-funding order for growth. capacity build and in

We pay execute debt year our delevering levels continue to down and this on program.

remains current portfolio optimization focus Our XPress PNGTS across will within and fit our include together options These include North meet return continue organic advance pursuing and projects, our and our the GTN, we'll assets. suite keep Tuscarora our opportunities, other over footprint, that for of growth asset projects our development approximately on to time. expectations. and our with of Iroquois geographic We're growth excited very million of $XXX Baja

continued The bottom value we're our robust, growth is focused drive for and our order line long-term stakeholders. in our are and growth that to projects metrics current on executing potential

back call to the Rhonda. turn now I'll over

Rhonda Amundson

call Nathan. you, like the please up go questions. for Operator, to Thank We'd open now ahead.

Operator

Instructions]. [Operator

The Praneeth from Wells first question from Fargo. Satish is

Praneeth Satish

I'm that later that just this the see pipeline pipes? gas you you Is on will Border, do that think hit on curious, that on year? something when Btu exists downstream happening Northern limit

Nathaniel Brown

frame. being pinpointing sort we're not see hedged. time a We Well, any of limitations

But as of in within ends customers and delivering product with or of the and folks that's customers our that handling contacts expected. sure goes, pipe are As we're make direct we're on when our it's numbers working that to their and the going. those far operationally specs. they making to both changing sure as the We're of where everything terms that stays expect

Praneeth Satish

there's contracts being Okay. considered. the like new thought currently for offering And about curious contracts renewable versus I'm towards then any the a are Iroquois bridge XX-year in guess be future. I would providing just shorter-duration the projects the of whether been in this that Northeast, context

Nathaniel Brown

the expansion as I'd we Well, come that projects of nature different all the longer through duration say are opportunities than they walked lot Janine through. the today that. all evaluate certainly

now for the can discretely. as duration what to right duration the I to it significantly Certainly, right longer them that. sees market evaluate value longer been on executing sits a we now, as us, that So we'll opportunities has we're think But than offer. come

Operator

Lapides from from question next Sachs. is Michael Goldman The

Michael Lapides

Congrats Bakken we specifically on work? walk the through bring points a good origin by an to integrated how TCP that producers? into of brought just this project for need to you assets think be owned year. not and would solutions, about and would us Real in Kind how solution whether can back other quickly, termination should

Nathaniel Brown

Michael, I think we've gone to as We've specifics - now. as any far probably with we right about sit as yes.

to we've in of a of kind sides border going on As the parts different how aligned solution, a for to of the moving with at the lot Bakken both need of there's mentioned get they past, Northern kind that's through. on or work Bison, agree market

can. those Our at BD soon teams are specifics exactly through getting and hard we work as as on that, kind of we look forward to

Michael Lapides

in way Got Mexico California for think one down a, are used the anchor the customer or that, about XPress on a LNG mechanism when thinking be there? to you by this a and get into expansion or about of going utilities California Baja expansion of is that's hey, is gas as into this North it. flow gas to you And the potential and it gas

Nathaniel Brown

Through some that of this interventions simple filings shipper as the we've the was on in the a customer, had, LNG project. anchor identified

us argument all it's and uses market and you be But in they've viable made calls Baja, into commercially put for presumably, as I think - there to project. that and as are a certainly uses. it the We're there's Mexican of plans together. capacity as got those So watching for needs that California, kind far their can responsive and takeaway very

Michael Lapides

that Do there. get capacity they you long-haul upsized And that of to pipeline to pipes do turn Arizona, - are of think Western viable well? big need about you into into go as some those project, And need that the of Permian into some a the or touches out comes the process? meaning integrated this

Nathaniel Brown

Well, have in hooks Ehrenberg. when - come supply Baja would areas. That's from where the at those clearly, to that's

it goes. as work will as But specific through. it's So those working those of goes, - kind challenges to upstream again, pipes supply as far have we're the

Operator

The from Marc question is Solecitto next Barclays. from

Marc Solecitto

in you on mentioned O&M elevated I think Lakes Great expense XXXX.

Just a use forward? good XXXX? O&M in curious rate if going to we should run to Or expect is moderate XXXX

Nathaniel Brown

Well, we're but guidance. pretty that and look certainly and we program have then to and wasn't here requirements. hesitant there to we optimize that changes do give anomalous, XXXX fluctuations regulatory I'd operational meet specific overly and timing our say

fluctuations So I anything wasn't year-to-year. say there you say, do run normal popped I to would But specifically that have but out, hesitate rate. anomalous,

Operator

[Operator Instructions]. Holt. The next Taylor from Pickering, question comes from Tudor, Matt

Matthew Taylor

and Northern up Bison. is it Just reversal Just reversal? there ahead a border? Northern a helpful. on on to - Are add Or would that still dependent you follow capacity Border a a clarification on doing does of looking be

Nathaniel Brown

So reversal as contemplate hub. we gas a Cheyenne on be delivery toward a Bison. the What solution would will

by reversal And that's fairly now physical a nominal. periods. that's full So not geographic Border's is have - in on quite right certain reversal Bison, any Northern But work there. compression own. It - be of running time some does necessity, the its would for been

that flow be capacity would needed to additional down additional toward to gas get So Bison.

in BD work So through what's guys engineered the are is all players and working that now being market. of the type where with our

Matthew Taylor

you curious, if thinking and is, just could and in end-market you necessary I order could ahead more move I'm or need capacity the Midwest? provide guess just Border Bison without is you gas expand reversal are add reversal Border. like the optionality. you my more question Or go absolutely on to into Northern that a

Nathaniel Brown

the you go, There depends and we and undertake, out. and sure could to different as assets makes Yes. to get sorted and earlier, gas there producers and varying wants on make I competitiveness But places very overutilized in that - use really where options mentioned it assets in get where that of, costs can the whether market to in kind what several all it. underutilized that the markets as that sense market to mix to we there's other the most customers the are

Matthew Taylor

or included just contracted on whether on of think XXX,XXX? that it XPress believe guys of XXX,XXX then that Great to Lakes, capacity that you back curious announced was whether - day announcement, a I And top that think, is I top of Alberta on ANR. what the was QX on incremental in I'm as of

Janine Watson

I inclusive that. think it's of

Matthew Taylor

there can the of an an you last And then outstanding? of some FERC - that's on And settlement I give in do Great EBITDA there? guys sort impact that's of terms you Lakes believe us expectation Okay. update have

Nathaniel Brown

don't you really as open We it's still item. know, an No. -

But we what that. steps continue to disclose on next have be, to we in closely. watch So don't it terms anything of might

Matthew Taylor

views near spread Great. TCP if And Looks and on parents forward? it anything stock been. going then Has quo? may. last one I how like between Or your widest status it's the is one, ever still parent is changed there the your

Nathaniel Brown

this We're - Yes. as the management of goes, on team far we've assets got. as we're focused operating suite

them. As defer strategy to far goes, TRP as we'll

Operator

from is Research. next The Kania Wolfe from Alex question

Alexis Kania

I guess a couple of questions.

North about be mentioned is think respect pipe? I at you curious with in kind in Just - first of itself, guess, how guess, to service Is XXXX. the front - date a the November or The the just project in-service the your about that in-service Baja to the as, pipeline an the - I project, on November when you of as needs date potential of end eco the early the project of of expectations pipeline? for

Janine Watson

That's an for our asset. date in-service

some the clearly, in coordination we there But early between could could that's how be that have service. two. So

Alexis Kania

looking should that rate we that just some the years? forward? of represent maintenance number previous specific be Or CapEx is XXXX. of a if in plan then going you wondering to kind And like new XXXX to on a Great. XXXX. that a that would elevation that's be versus step-up and would items from looks for sort that's there it of I'm appropriate it the at kind assume maintenance - happen gave if is just outlook run It be

William Morris

question Again, some to of kind there. on cyclicality on is that the go I O&M programs prior have Yes. back flow in Lakes that and ebb we Great in

plenty one necessarily a trend. utilization across any of of said, year So all systems. That represent doesn't there's our

- our we're the the to look more back able XX that we're maintenance, and pipes. running systems harder years into whole, reinvest that you So on years upkeeps will our if certainly - to more requires back be XX

not of So trend way a guidance going we've long going to to give on got we're be here you or it. saying, say we're a to able

our optimize do into We and that commercial spend back as roll what systems. that we the well. we of where can where we think structure strategies reliability invest I around our prudently and in we that is rates

Alexis Kania

Great. last if And just could. me, then for I one

in I maybe and California think little states, residential electrification bit of a of in more seen that and such. we've greater for used the Northeast push for a policy previously - heating was

that what if with are those thoughts about are commercial any discussions as what the them of Or - discussions? with you're to that lot mean wondering Just your discussions having your respect areas, in for are you shippers those over with a - time? hearing might talking

Nathaniel Brown

that around or thing policies of and the Certainly, the very strategy PipeLines overall TC type and of broader different is hydrocarbons in a as and in whole. whether electrification Energy TC fuel it's switching much general

areas coming any sure serve. on say pulse to relevant So our that paying the our make to immediate we've near-term we in assets. where the we're trends us concern of keep push have wouldn't we of fingers to that we I got attention the of on given each that projects just

So we're heart into that. pretty

of any as the markets. real are is really transition far real in good what natural all the competitiveness of contributor out all needs strong - our As goes, gas in a energy to playing

case area. As GTN had regulated that our we the We from in where XPress utilities from in XX-year season. good Northwest point project, we open Pacific the is had there in bid had when contracts a

foreseeable us shows the there that it future. that's sees everyone the So value - the for

impossible. top As of we're things and make that utilizing assets on I to highest think the stay transition, we'll our to certainly sure

Operator

questions, the concludes to LP. contact the there Please at turn now go question-and-answer Ladies any gentlemen, over Amundson. session. will Rhonda PipeLines, are Ms. call further Thank TC Investor this please ahead. you. I If and Relations

Rhonda Amundson

for Thank participation Yes. everyone, today. you, your

your in Thanks. soon. interest with We appreciate to forward again continue to speaking TC we and PipeLines, you look

Operator

Please for The participation. at lines and you. we now your time, has conference disconnect you thank this your ended. Thank

TC Pipelines (TCP) 20 Feb 202019 Q4 Earnings call transcript