TRP - Earnings call transcript Q2 2021

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Operator

Thank you for standing by. This is the conference operator. Welcome to the TC Energy Second Quarter 2021 Results Conference Call.

As a reminder, all participants are in listen-only mode. And the conference is being recorded. will opportunity there ask presentation, the be to an questions. After to I President, conference would Instructions] turn Investor now Vice [Operator Moneta, like the David over Relations. to go Please ahead.

David Moneta

to good quarter second call. I Thanks Energy’s conference afternoon, much, to TC and would very like welcome you XXXX everyone.

some Stan certain slide Marchand, presentation and Menuz, our today A me GasLink; found President, Chief President is Development in Pipelines; will Mexico the and Francois the Tracy President and opening Corey and of and other copy Don section our our of Pipelines; Financial Natural accompany and Poirier, Events President, Gas Strategy Coastal Controller. be Chief will Executive with President, President and available Don Vice Officer; It President, comments Joining Vice results and and Canadian Natural Presentations. Pipelines financial company on Wirzba, and Francois Liquids Hessen, website. under Bevin on Power Corporate Officer; President developments. and are Glenn remarks U.S. Executive their Vice Chapman, and that Corporate Development today Storage; Investors begin can Robinson, and Strategy Gas Executive

community. Following take from their questions remarks, the we investment will

questions. participate, you to after we If contact an ask the from member you order media, to everyone opportunity Jaimie the that this yourself please a are of Harding provide In with two to call. investment equal limit community

please re-enter additional queue. questions, you If have the

remarks will are to uncertainties. subject Before and Francois to that statements begins, include important forward-looking that I’d you today like remind risks our

These U.S. and share, comparable non-GAAP certain measures TC earnings, Energy during finally, and see measures. be please generated and Exchange and by Commission. information to comparable other with operations. from such with per filed refer we’ll on and And are Regulators measures more to comparable presentation, considered For risks funds EBITDA earnings comparable as reports uncertainties, these Canadian Securities Securities the this the

similar liquidity, operating to operations. to entities. the be used to they to additional Energy’s funds ability a With measures are its result, provide not measures to I performance, These other and presented Francois. over its that, call TC As turn will comparable may finance generate by on information

Francois Poirier

morning, with of it's I and companies know, reporting. everyone. lots And busy morning good a David, Thanks,

very all you today. So thank you of joining us to much for

values, conducted is organization. one We facility. the in culture Once always, Safety plays our while As Of due day, and River highlights and economy. our shareholders, the Bruce our market business, events, life the ongoing outlined long essential natural well benefited increase diversified the remained volatility, NGTL service continue first Power of of energy again, XX.X to levels operating energy quality, solid network our manner. in output and being in this the cogens report produce of in meet Utilization weather of in this XXXX, availability from as infrastructure XX average that pipeline impacts assets second across American moved an reliable growing Bcf COVID-XX. increased despite embedded Power America's In quarter to strong our return North of our continued responsibility for day. during of per of Bcf and XXXX, high energy. gas our our and seriously. role to and receipts across half continent, demand take the our over this our per same were is safe period results, the to of And functioning X% infrastructure Storage Alberta note, the North network people increased while to a field we of of and our on US core MacKay business an the portfolio

part as we months comparable is generated also year, This exceeded record loss forward, the the Texas maintenance services financial solid strong existing outcome, which looking all decline dollar our XXXX our it capital commitment to negatively our impacts our and to of first per is operations, and in year, a has Canadian focus assets for our very funds pleased notified six of fees of the EBITDA, the inspection de first last related on Through KXL. that all its our reflected with in of half continue. FERC value rate first operating performance remaining year's Contributing our during to comparable the the excellence Colombia of integrity. reached well share from the the comparable demand of operational to recently able EBITDA, reach financial case. is $XXX issues earnings construction Sur good relative the and the in to very as the addressing which and were considering to loss US that ongoing settlement-in-principle for significant agreement. in customers quarter During And we pipeline results. invested We're the dollar, performance. million reported we a the of capitalized expect of time interest And the as one of performance Gas, an

system While settlement with the date. we to on recorded available will the to filed, be be more generally expect details XXXX estimates is once the revenue consistent

of we enter where to focused to expected $XX now on XXXX. projects. by are billion service Turning They're growth capital secured remain our advancing program,

will irreplaceable US$XXX our Columbia As million includes includes to flow network, VR project, all great the growing their example a contracts, in or that gas installation renewables. project report, us substantial pipeline term is transition carbon by reduce the earlier the referenced which electric to is used portion gives of of by natural our visibility regulation will now generate. intermittency delivering cash lower growth backstop to system. This long gas compression quarterly another fire our the on in and to underpinned and to which are role be emissions. Gas meet our of will custom, an A this displace earnings today they they and that coal network, linked provide This important service power vast our playing cost portfolio world of natural a is of demand

a words GasLink. Coastal Now, few on

Following XX activities order of resumed beginning of XX% the project limited project events construction good that at completed. the public of our XXXX, close past the we the are health to months, and workforce have with macro including progress making the

in shared dispute has we've increase as a However, that to previously, are LNG and costs expected with Canada. resulted

we are stage the that and issues. commercial outstanding committed discussions to of a resolution ongoing, While project, critical nearing the are successfully remain completing we requires

other come to program, both to to more fruition mid secured energy a capital the expect the energy world longer carbon as beyond our Looking over numerous transitions consumes future. to term, and we opportunities lower

gas preferences, additional We These our North and our requirements initiatives stages aligned another grid. throughout the of refurbishment well two organizational development. capabilities, the return strategy, of our projects and reactors storage footprint, Ontario, with have pump pipeline natural opportunities system significant Alberta risk in as Bruce programs network, include at expansions, extensions electrification five various Power, carbon that as and American across are in modernization Alberta

well future. needed of to firming while is lead of a agnostic ultimately and our to irrespective discipline pace build to technologies, that innovative growth, energy being all or our financial Now we other are the asset to and our carbon long transition resources electrifying that of or their positioned to Whether mean, technical energy manage will energy intermittency, form low emerging strength our takes. on the existing fleet prosper, history renewables approach its goal direction base, capabilities,

expect per deliver backlog energy the zero opportunities projects leverage could electricity of the to assets. opportunity portion This pipeline needs be $X stages our to achieve power sustainable to meet generate for added this through a our and to our also of in our end an platform MCR business on network. for specifically, And is -- to energy Bruce to based carbon ongoing of to As program, to growth expect set various development, a term, identifying this US maintenance late and is $X megawatts and our as Gas’s XXXX as consideration of emissions we year businesses, the term are the wind, we across billion North goal information, storage I storage Columbia's of longer modernization year. And under is annually $X.X $X Power regulated the a XXXX sanction project capital unit continuation mentioned sanction on potential as in while plans in billion before, is to Columbia that initiatives encouraging. for well across More our our important billion of on ultimately, lowering three in plans, And American footprint. the year. advancing project the VR maintenance including our project addition our national to-date which in solar growth, to goal requests we our other long and extensive billion step by future

stakeholders with XXXX project National we multibillion development by megawatt provided Earlier advance We project the storage renewables. with to that energy various reached on with intermittency are week, the The the in and this conditions dollar allows storage to associated pump regulatory to provide clean electricity subject and the an lands. emission is agreement energy of store Defense engaging backstop free federal designed opportunity. the Ontario of the Department Meaford to approval for

When and the allocate requirements. And an to expect and other with those rich more a engage base jointly at million aligned carbon our stakeholders X% a carbon interested than system. sequestration preferences, Alberta other and average emissions we with Ojibway strong project. to would risk will benefits of carbon COX Alberta of plans, recently best providing and the fully the short, will economy. with that continued we tonnes industries impacts return transportation forward, our communities we contribute grow capable of manage our to with to business Nation to continue lower to Based of have transporting Moving partnership In holders capital continue I to announced And potential consult based to annual be to and constructed, are we it we on and the local their annually be grid, Pembina projects ability our capabilities, and the finally, the growth develop X%. Saugeen communities. and opportunity XX expect rate dividend an of rights organic economic to performance will assess with indigenous and

to results. to well who future. call continue the details our expected that growth returns Don deliver share in risk combined over shareholder sustainable per set turn supported the coverage dividends second ratios. earnings growth I will by am is quarter future financial the adjusted and always, in flow will I'll capabilities strong Don? on now total superior into to with more provide and our As the cash opportunity be confident

Don Marchand

Francois. Thanks, everyone. And good morning,

million or the $XXX earlier per compared As same per our issued $X.X of or XXXX to period today, in to share quarter attributable in in common XXXX. $X billion the was results income outlined for net shares $X.XX share second

the items, common well on from in a after-tax $XX as million quarter the power recovery Second included other as quarter net for These are with share per per earnings. in changes second period activities report. and of plants were million as $X Keystone with in included XXXX. as revision Ontario common with in taken in impairment unrealized from slide preservation certain combined $XXX and The corresponding to our a and associated XXXX. charges specific in XL second or a excluded Comparable earnings $X.XX gains million discuss gas also compared results fired risk well one, as quarter to management specific further or costs $X.XX comparable the quarter share small $XX along billion the outlined after-tax losses associated sold items asset XXXX XXXX

X, of in pipelines annual US the the second $XXX XX million pipelines quarter earnings subject XXXX, us results higher net a Gas ROE quarter to Gas after compared previous net driven an Net system earnings. second incentive net refund Columbia than was on it capitalized And account $XX comparably slide Gas base strong property comparable quarter included comparable compared Turning costs Yesterday to taxes. higher was along EBITDA depreciation headwinds. to the and had for flow primarily through with on upon of segment rate $XXX decision. offset The elimination notified XX. operating Canadian in partially of the expected second $X.X pipeline effective NGTL million recorded translation contribution well segments XXXX, increased February was quarter our as from earnings principle a as was higher to while and higher by base proceeding to transportation million, to on greater similar XX% NED still currency with taxes income the XXXX, our increase $XX US due EBITDA of fee million its increased from $XXX to terms in And XXXX business and second TC US rates five XX.X% billion In due Columbia to common for system. GTL deemed which average million mid equity. tax integrity income is reached in being that date. in a XXXX revenue in largely XXXX. application with resulting million Canadian higher development a consistent continued the definitive on $XX the finalized, to completion mainline. Coastal a higher Mainline estimates commenced rose GasLink higher Canadian year-over-year, reflect following million that mainly investment first This from Energy rate revenue XXXX increase settlement by customers, system modest expansions be generally by are XXXX, income the despite in at XXXX

our gas of a to declined million from EBITDA the a earnings on result second pipelines due mainly of of to addition, comparable Power primarily $XX higher implementation storage many by a activities, higher EBITDA versus generally fewer outage rose in Mexico US volumes. $XX year, and we increased rose from marketing offset million, higher primarily comparable of results, resulting million on by days Gas as driven In Bruce the contract and pipelines volumes the US$XXX comparable earnings liquids quarter, price, attributable quarter gas increased which and serve. increased Keystone, EBITDA by XX% volumes margins to higher Alberta Power natural markets by million the last the a and partially Liquids increase XXXX. reversal contributions remaining XXXX, events across million first expenses. US$X in other cold gas $XXX ownership XXXX offset also storage interest following due completed acquisition following realized impacted quarter spreads. in US as the the storage operating Guadalajara, of contributed turbines, by our Pipelines lower November to were increased Natural partially second and of weather result flow TC to in higher

Well, of on pipelines The denominated drag EBITDA. year-over-year US comparable XXXX XXXX, XXXX. hedges. and liquids in $X.XX EBITDA businesses our dollars and to to million. corresponding of That the said natural currency all second and dollar translated economic earnings income, an dollar the rate a same due of For US$XXX US parts overall, with increased exchange denominated US was pipelines, including quarter weakening by $X.XX impact was into compared was not Canadian on considerable comparable significant gas reported EBITDA using Canadian dollar in Mexico offsetting average for the period

exposure and within by a in forward are basis program on As realized in expense income income on other amounts a interest with residual other. We dollar revenue then interest result, and line U.S. losses and streams two-year the actively comparable hedged this denominated our naturally comparable statement part U.S. reflected below EBITDA denominated gains managed and dollar items. amortization, depreciation rolling

the and impact was of our on flow in acquisition million other offset partially NGTL Coastal movements lower equity compared quarter in accounting million million denominated rose the increase $XXX income Now Keystone under due pipelines due to higher it’s on quarter, the $XX tax was earnings, on derivatives foreign income statement change turning income. of to million US Interest year slide Depreciation by XXXX, other in and effect effective exchange line balance January expense for tax pipeline X XXXX. Income for of quarter net million items second gains to amortization due largely capitalized income second net $XXX increased The rate with used project. $XXX period AFUDC the was in of XXXX, with to manage foreign of $XXX due the in to expense exposure the maturities, to $XXX in ANR year-over-year, and on million due weaker realize realize interest U.S. for $XX earnings XX. XL on XXXX, Villa capital decreased GasLink second to rate dollar to interest denominated of and debt to million expansion through a dollar same year, $XX period mainly Taxes the compared levels of expenditures XXXX recording foreign in net Reyes short-term it to construction. to million to increased on differentials. reduced a XXXX, comparable principally included the compared on last translation investment rates issuances the U.S. interest. dollar suspension regulated Canadian interest higher in rate on quarter second long-term of de of same this Comparable from offset losses exchange mainly system higher borrowings, income partially by and higher projects lower

million the same $XX dividends million the last XXXX. of by through mainly And regulated in to PipeLines lower rate are continue income pipelines, share attributable on net mid-to-high-teens. the we year result were Canadian million to the in income LP. as with Excluding $X to shares redemption XXXX, tax U.S. taxes gas of pipelines primarily full $XX XX preferred relative a units finally, item to XXXX expect income natural decreased March quarter that's preferred along XXXX of be XXst AFUDC quite non-controlling TC equity of by million Comparable rate to variable Xrd, year, and flow than of due were Series period interest May our effective second $X

$X.X invested billion during $X.X slide funds in and comparable from our generated second Now turning to quarter the program. capital we billion, XX, totaled operations

and preferred In a debt March and completed notes, on our proceeds of end our of and year X.XX% all million million, in XXXX. X.XX%. redeemed by the balance facility level Keystone free sheet MTNs notes junior Also at of $XXX $XXX the consolidated in of million Canada offering of year credit we rate XL completed project June, from Alberta in over government the at offering million their XX at fully on terms shares three $XXX floating in outstanding the using outstanding noted, XX XX terminated. comprised guarantee, a issued May, under June, tranche the year US$XXX Series As repaid the notes, facility of subordinated was

securities ownership an realized. charge issued liquidation their recognized interest first was recorded after-tax certain and billion in this serves equity resulted to Collectively, proceeds billion impairment offset being quarter. after-tax partially the to KXL which recovery $X.X and repurchase also project approximately We net in government directly the and as titling credited in of to the $X.X to

capital billion, Now and our the $XX million to of this of requirements share in to to approximately March, expenditures our dividends redemption XXXX. to including in projected and acquisition $XX forecast capital slide Series $XX.X TC uses over XX, PipeLines $XXX maintenance total the billion, preferred XX and reflecting left billion, three $X sources May. be the XXXX turning Starting are for graphic column, through illustrates attributed funds years LP billion in of completed the

of of pick June, cash Pipe debt, buy-in the goal to right debt in to with The billion XL million excludes second completed XX%. subordinated it debt in of paper incremental in offering common expect of internally normal a maturities scheduled to EBITDA project that our FFO billion column. March. The a and MTNs residual generated course and highlights in through and in to of commercial program LP the approximately and debt to the junior of Keystone billion, X.X billion column maintaining recoveries. pursuant issued And high-Xs far combination consistent of $XX leaves the is we expected refinancing $X.X fund need That $X the notes $XXX issued flow shares

enduring poised I'll capital the are footprint, Now our financial strength, model, highlight needs the dramatically a long perpetuate expected today's standing well resilient, both, vast as we turning as closing, to from consistent irreplaceable our energy assets and decade with again, With to world multi X% low-risk financial mix, for prudent track slide tap criticality value new as annual contribution being is ongoing our of call opportunity requirements. program. set dividend return to organizational solid This aligned and our in the a X% of business future. the Q&A. record, and well end over high the operational portfolio, as our capabilities David diversified prepared once is XX, and with to our that and results risk shifting preferences of quality unparalleled turn now into back of growth creation our That's the to support my remarks. the infrastructure,

David Moneta

Don. Thanks,

Just We a from to over I reminder, limit two questions. ask the it you the community. conference for to yourself before turn investment coordinator that questions

coordinator. please it questions, additional have that With you queue. to turn If reenter the I'll over conference

Operator

you. Thank

begin session the Kwan [Operator Robert We Markets. Capital comes go question will first of ahead. Please Instructions] RBC now question-and-answer from Our

Robert Kwan

project. morning. your this system? the more can about got Are forward? this really first so what this your can trigger for Good demand And it to system, But opportunities Was US$XXX so to of capacity big emissions? their so you for scope real million from they electrify going you Have a you've the is taking a just question My Colombia. shippers was be types VR the looked seeing reduce more these expansion? entire how relates and at across the step back,

Stan Chapman

but system, at of think power at the green this incremental I our same likely making important I and day. at and conjunction reducing a additional this while point There by doing on that's end Hey, say And providing particular the would need time, compression multi team we across with and our that. that that, an we stab customers, is providing emissions is and we're our take not in Corey’s the volumes Robert, And sure that it's to really us. can in do it he's the throughput also installing power project, lesser most only our factors. focusing in Stan. could to something emissions, the incremental

my of Note, drive reduce operate how to country this XX own both forward? overall we that across could pipelines the that the continent. in is the these what one and expectation part given be projects. emissions pipeline, can reducing forward. we here two big in challenge ourselves footprint, our on going is any or of successful emissions to US. And any to we And going going year, it given that's the And our in have have be In of terms we're or

Robert Kwan

so Okay, when say or projects, of you're so one about range? two US$XXX or an just something million that you these in announcement talking

Stan Chapman

dollar is But Well, next going specifics of one would again case. the amount to year fluctuate, over be depending upon the two the per several think or expectation projects the the I years.

Now, that's and come things, to where where is the on the to opportunity poles proximity have what additional including wires of the going pipeline respect with is going add we loans like. be compression to determinative to best electric to from, and many

Robert Kwan

great. That's Okay.

Just on here. the question second

importantly GasLink there is to For where nature maybe little the the the the more disputes, and Coastal in agreement, claw received? anything you scope sell just bit you, a the you've of proceeds could a there elaborate talked and be down back on more,

Tracy Robinson

may number Good one. be the likely take morning. of here. questions I'll and status on that be. what potential to the is deceit This There’s a project Tracy the of impact

partners time. a But for some been that those all at say are in able the of if share progressing. can't discussions our are confidential, resolution any they're It's there We do implications details LNG we're this, because continue. They project, this discussions they Coastal disagreement GasLink. say to be to I over in a equity then involved, now. near-term, to in our will some costs Canada, we're reach construction. unable schedule. an important not are me have and And We've the Let time we do with alignment confidential.

We full in execution now. are

have is We Execution in the corridor. X,XXX more people working than going well.

share a a we to of And have have think to the And strong them mentioned. to that more hopeful construction. continue details safety remain -- do discuss few that and be able fair I very time, at outcome. record. that in we'll I We point reasonable want you a We we'll

Robert Kwan

one get that's Okay, all you're you That's have. this way. to And out Don, the great. I last hopefully, easy. let I of off happy

Don Marchand

thanks. Robert,

the Now highlight here. the of this is week again

So thanks, Robert.

Operator

of Please from question Ezergailis Linda next TD Securities. ahead. Our comes go

Linda Ezergailis

Thank you.

Before and for my I wish Don I very want a a career. best the big question, congratulations, all retirement his in ask to successful

Don Marchand

Thanks, Linda.

Ontario So project. pump storage the

sort would developments and you bit as on how little you steps from front. well as capitalization be commercial be the a inspiration attributes might what timeline about and a that of it looking ownership for recently as Some from and and Can a talk financed well.

Corey Hessen

counterparties happening, things. agreement recently needs DND to the Hi, Linda. underpinnings able have remains access. gaining the step commercial this facility. be Corey with to we some here for were steps Number coming working will the that in an months with the follow that meet reach to particular the their our ensure is Hessen. in order one, technical pleased secure with very, we're But that site very we on operational we to for the DND. will parallel This first Couple In to site that

forward, next all are partners, continue stakeholders, as collaboratively active we a our who coming with really will the two pronged months in three And process. running project. we're So go Bison, local well we working for the as development this be of as approach participants and we

As as days far question entirely. us your was for through little early the regarding thought capital to have it's a concerned that structure,

underpinnings once out clearly, for involved. to with external more the to figure -- understand to work commercial clearly, our that that everyone able be structure we works And diligently more partners what a be. we'll have will understand understand We

Don Marchand

up the just bond This lend whether it's level project itself is Don, Canadian Lynda, budget. early project, I'll tax there significant it's days see financing. above on Corey's recent federal Nation a financing. the or in Yes, ownership Again, remarks the supplement here. but benefits were most First introduced here, green the would finance we And to can

out have to figure as be finance this. that account where and we how to So all into taken

Linda Ezergailis

Thank you.

on follow question. a As

considerations Given all time the X% changes, growth change, terms your how if growth. there's -- support which the the of X% growth, just preferences cash considering over shifting of other to and opportunities you're might dividend might cadence if tax and potentially earnings dividend cetera? factor into beyond there's I'm facing including flow should et in energy transition wondering, investor

Francois Poirier

take Linda, one. that I'll

we of become XX% goal, know, opportunistic, a and cash our stable and of growing dividend earnings as in commensurate always, stable be XX% delivers, of us our in moderately earnings available. to that growth acquisitions, and to flow. the a think value XX% dry You ratio turn We've And, balance cash about by that, share. we and underpinned as powder allows proposition targeted the per a to deliver have XX% payout is to to any sheet, extent flow a

-- see that So changes proposition going value don't I in forward. that any in

As prepared an in remarks, seeing perhaps are the and opportunity intimated, you we my set. in acceleration

that fruit seen announcement the our You've in VR the with of project. here

You allocation from we'll time, you're consider being, accustomed expect over the as continues grow per comments be to the balance as capital opportunities sanctioned, my us. as to true usual of And, capital that and to it's throughout the that the our tried year. allocation, the projects additional will and expectation to that, is extent perhaps to framework re-look business here seeing time opportunities at it can but the for

Linda Ezergailis

Thank you.

Francois Poirier

Thanks, Linda.

Operator

go next ahead. Tonet Our Please comes of Jeremy question from JPMorgan.

Jeremy Tonet

Hi, good morning.

Francois Poirier

Good morning, Jeremy.

Jeremy Tonet

did. I hope Joel will same missed. And Don, the sense has you as good of humor be you

Don Marchand

Jeremy. Thanks,

Jeremy Tonet

reaction be you that say maybe possible? when you're But conversations start Alberta as I very of you you obviously wanted type stakeholder as wondering, out -- grid do having, carbon off far early days here. to put might to is announcement, what the what just it's But able think with what and

Bevin Wirzba

the had a advancing it's -- Jeremy, proponents feedback. being the there We've evolve Hi, in the hub will pleased without that with will look customer here. carbon what we've are energy clarify or to lot we're like, own and to Obviously, able of exactly engagement very Bevin industry their pursuit of date to, had industry transition.

the and right base taking of our be partnership pursue -- seeing as so And work advance. as been project we've a and energy can example, progressing -- with initial is to opportunities how Alberta filing utilized we're of and sequestration working now, question industry under I the existing taking our all our Since further our the the government process. engineering transition grid, in think our well asset Linda's applications it itself with we But portfolio. carbon scoping in customers the to on or repurposed announcement as great

Jeremy Tonet

about, a said. at for these ratio equity it. X% makes you that allocation on growth is credit X% new opportunities, helpful materializing overall, want kind sense maybe here. there. And do dividend to need that bit the these Got of for or down as of Would of about ratio That's it stock point more of rate, feel that you here? you're about opportunities ratchet the just the guess, you I wondering how touch opportunities, talking getting of new payout capital And talking kind the little just think given context any to and within new to kind the growth kind payout

trying things Just these put to here? all together

Francois Poirier

and decades shareholder been Yes. for successful allowed Appreciate allocation that earlier, we question. question, that period respect Linda's with of annual over that's a to have deliver time. total XX% I true tried many to model return mentioned Again, a and us capital as

to that allocation additional important. predictability create approach for stability terms cash for arise cash is return opportunities opportunities has -- opportunity I model an shareholders extent the capital count flow, it's served those our earnings retaining we But see our we the in we would And last the back perhaps the by balance. continue our but XX%, well of we free our to to earn balance the decades. to being If outsized our form of XX% and and value something the dividend a extent So, line. beyond in and as an to us of we a to. equity couple expectation think more of that, our We along the flow. consideration give of jealously, issuing consider retaining is said, share hold over this of And, would we in flow, occur, or reasonable to going reinvested greater said invest business portion cash very having that our shareholders us a is will

Don Marchand

flow, XX% not earnings… clarify, a just cash I'll of

Francois Poirier

Pardon me.

Don Marchand

…being paid out, so.

Francois Poirier

you. Thank

Jeremy Tonet

there. you. leave I'll helpful. That's it Thank

Francois Poirier

Jeremy. Thanks,

Operator

question Pham BMO. Ben next Our go from ahead. comes of Please

Ben Pham

an surprising go from maybe Hi. RFI, seems Thanks. far? levels, anything to is question energy on there, had you thoughts so morning. of give little just as any the a the evaluation, RFP, through that’s I renewable move Good sort share, qualitative interest a you there

Corey Hessen

pretty the and some think of Corey. Give you that's level transition. feedback, energy as is and available I quantitative is This opportunity the Ben. Energy TC size shows Hi, interesting which at the to of us part the

component about totaling for of amount XX had about bid lot one plus which a XX one individual we we about with. projects, is RFI. demand side, storage a the with totaling components is solar a of XX submitted and that to the In component, the to and the of is solar projects, XX know, request. storage we you XX.X bids the gigawatts One about gigawatts requests. of We market times XX.X As sort two had wind, went submitted, of which wind times individual had totaling was

answering with We and shareholders a stakeholders able coming our customers, the phase we announce chosen to the down be in move with. have criteria the that are selecting to our our are at we and negotiations those definitive months, expect where those best and currently projects we will meet that projects we projects forward for

Ben Pham

incredible. That's

some in of on on for the you then And the on maybe Thanks on -- maybe comment maybe of liquid in liquids your update and important, outlook on the term your to relative Okay. highlighted a longer short-term thoughts the the just on -- past the that -- guidance segment. your volumes segments, some outlook that.

Bevin Wirzba

Its Bevin here. you. thank Ben,

down here in pipeline the basin the to supply Coast ex-Hardesty Canada. Our Western has in capacity Gulf at been leaving

Coast in Midwest into to markets. to a we've between the of in Gulf Coast the up volumes pick Cushing out compression saw the a really compression as volumes Cushing continued supply and the increase in seen we Gulf export the the we or take ARB As and Midwest, Permian,

see year year. into here likely we balance back the half persists and the over so this early next of that And of outlook

producers various commodity basins. in supply increase prices with of the up run have We seen

is segment really liquid ex-Cushing our However, markets. driven and into by refining ex-Hardesty the our ARBs between

Ben Pham

great. Okay, guys. Bevin. Thanks Thanks

Francois Poirier

Ben. Thanks

Operator

Please from question World Robert Catellier Our next ahead. of CIBC Markets. go comes

Robert Catellier

following you're order avoid here? or Hi, that to arbitration, I'm curious have but wait mediation And an to I is and to a on Currently as thought, industry to you project still follow-up limitations the the a you possibility Coastal just of little on important the work wanted believe using thank and it in sounds have when understanding you. commercial like this this dispute see. having just suspension? GasLink, for bit idea dispute, a resolved means resolve to

Tracy Robinson

to question. Happy take Thanks Robert. that

you the of as resolve before, some going customer. details dialogue discussions of and -- the are, as discussions, table said across I with our the in that it a focused say, the between we're We commercial in is but right now, to on subject on that, as disagreement mechanism confidential us. There's number

One for the possible. focus and manner focusing ensuring main on schedule Our we're -- facility cost in is the service on as resolving disagreement aligns the in is pipeline quickly really two a with current and timeline Kitimat. schedule and the things. medicine and other the cost constructed that And is as safe and effective that

that near-term. and a and we're fair So, hopeful going the we're get pretty focused to that outcome we're here reasonable in on

Robert Catellier

that little estimate of type bit you be same Bruce could rough if your the on understand return service of of that part you that's a provide have can not as resolved? Bruce, control, to of in then X, when to timeline the color a question, Switching Okay. probably to

Corey Hessen

Corey. it's Robert, Hey,

July the order in are the to We XX process CNFC. responding from

than be the received more a will outcome. Unit color, we of CNSC the operating effectively. and safely, the following three offline but from provide plants we the able what is we And right I to are positive process say regarding are feedback in out laid And CNSC. procedures rather is expect process would reliably, the now. CNSC's first the once order following as our the bit response, we'll So, be by

Robert Catellier

Okay. Thank you.

Corey Hessen

Rob. Thanks,

Operator

Our Rob Please go next Scotiabank. Hope from ahead. question comes of

Rob Hope

morning, Good everyone.

on not can question can how of you of do you issues a just Columbia but you so much the you have receive sure resolution how in then, some First you expect? revenue the bookings can kind you us, some of year? this And outlet far that key remind here, as settlements, maybe much talk highlight

Stan Chapman

modernization levels, took would years, into terms sometime settlement date. which can, you heard inefficient. was with in get structure secondly, actual what I which process of or virtually, consistent you generally to optimized. XX program. case ground to there the we that a you But Rob, is for rate program, the customers. and with tell our reasons. modernization which tell addressed bit recorded plans myriad in liked estimates had to this the do the programs, Yes, the Again, until issues the pandemic, our hard there negotiating in of consistent we Stan, The a the really have the a XR that I tell file and schedule, obviously in Burke October. we continuation longer yes, a to are great it of including in I that And One, a and the the and settlement it revenue the for we and size. our suspend have with be line that reported that all detail we in is settlement The case in first things was settlement can the be rate be expectations can that than you bit can't and addressed. addressed two can't were prior all value of given is little we've our of we I'll of with to the the needed way notify this our that then both And a procedural September principle rate issues But respect like the with settlement, earnings But are is and yet. is pipe the just numbers again, most give how likely in settlement is of yesterday were will really in very that our had you I tell that example

settlement making I'm our until you contributions this happen. we for and their again, can system bear get get with just the staff then. if file, answered to of questions some me thankful customers maybe first and we But So those on really,

Rob Hope

I in additional and look forward that September. appreciate some details to

of how to kind for pivoting of of cost When RFI looking and projects, rather projects as just came of your capital the TC how that you capital the energy in, than contract renewable we a of what vast energy? percentage Okay, you're into the kind as well invest over much the or of look at projects. take that at could attractiveness for amount see,

Corey Hessen

we're the if merits. or way project Don it's to them comment Francois on in is Cory. an a each measured its as about take at and well. individual this want shot take own But jurisdiction Rob, each thinking is I'll to individual Hi, opening being it out

each been as we operator being it to think about said, And the And our being term We've industry a long assets. about view have in jurisdictions operates going we think jurisdictions, see leading great That and how ourselves in time. the and we operator. a is very how in we participate doing that of can so, those ISO on as bearing of we of market. for pride long owner take

what we that premature on I'll be. to think of mix sort merits of Francois project But if will it a each its blend until individual additional it's they feed to had I might Don comments. any or have So that But a little evaluate over we both. decide

Francois Poirier

to agreement with deliver That acquisition an or And the is here obligation perhaps for part see our to and opportunity opportunity costs our lower that to only power the of to I'll obviously is our of point lowest our an in those as shippers, that costs. add to for lower have that, customers. we lower Corey It we is opportunity us us addition to an variable an cost for emissions.

about very that. very, excited we're So

Rob Hope

color. the years. the the Appreciate over all fun best, Excellent. Don it's been And

Don Marchand

very Rob. has much. It Thanks

Operator

Please question go next Suisse. of ahead. Kuske Andrew from comes Credit Our

Andrew Kuske

Energy across a view the you tip investment from TC theme? or fuels morning. just chain, Good customers, is it cases Across really some targeted more syndicated or the value is process, assets value based. it's into And of big your it and on one your broad of curious Thanks. in how fashion? the chain of does your fit a clean pretty do burner in wellhead case your just entire Obviously, topic sort thought mine with

Francois Poirier

maybe I'll as base. gas, asset high my think, level we've provide remarks on the course, in learned of look at some What after entire comments. as our ability Stan molecule, our of across being and is Andrew, hydrogen, is And at look carbon they the short as those of renewable we we I'll provide markets storage, core as look answer gas, a it's I transport which a ask question a of to points. thematic And and couple at develop capture is, participant renewable natural a we natural business. fundamental store aspect to the

serve, play So a actually and footprint for see when you look we markets role. across entire serve at our footprint, opportunities the we the the basins us to we

Now hydrogen, investigating the in we safety technologies opportunities where a potential at for some still example. stage instances, from from of We're would perspective and say the I standpoint. the those are the many are many, years away.

to Of safety can But into our we the across our issues. one will be cause systems. hydrogen make pipelines safely you're injection that sure course, And not it transported of want our any is right. embitterment exactly value, number and

board. a the footprint opportunities Our based for basis will us present on across broad

Stan Chapman

exceed track big XXXX by from we'll from again way, Stan, about that, have on into it taking natural we that XXXX, X eight. different and to them And early of think had goal natural tag next end or year We're four the and on recall many that double I very the a clean that to in our exceeded actually is year amount just this created. -- XX biogas Bcf of renewable come our in we're for to just that And maybe this fuels Bcf one with this coming gas. may a being we're of Yes, colors, overlaying renewable renewable landfill against system. operators, gas, X doing of to renewable our to Bcf by natural actually sizes and shapes footprint you example, to to into gas, natural pipeline double gas system is

of we take things reinforces work our natural a opportunity that and continue the is our then future So that and gas, significant natural thoughts together. renewables that just and to one I is like of could there renewable think advantage really to end, there gas

Andrew Kuske

an most helpful. the question particular we're and elevated, And of season just about a And activity Tracy? just we're But question. of coming the focus for from bit for think very and the more prices hydrocarbons. extension up -- for clients probably called drilling of a that maybe That's the then is what's budget do producers. on sentiment style from but always But aware Stan what’s maybe old commodity how really to you Obviously, are outlook?

Tracy Robinson

guess. I

Stan Chapman

I guess, sorry.

Tracy Robinson

ahead. Go

Stan Chapman

is on them becoming for is which around an we're start that to a sourced you're NYMEX gas all lately, that what and Very more is and And equal, producers the $X that's responsibly four or doing more to what's new, theme XX the good. prices One I'll seeing natural something in incentive in lot months, thing six production that's with exactly a Appalachian next on they producers of of what go so lot dollar up days. if five continue drill. to would of call a that's now. you're that respect US to or watching things A ahead going BCF. of focusing there's seeing these

growth, So to you out Appalachian see will basin. the particularly production think continue I that of

a emissions. back theme, do in a work way get again, that we can this you'll that think this renewables I to and I in a And think it gas on see with done responsible can focus just natural together. way

Tracy Robinson

going on Andrew. I'll significant pretty of tax. carbon And in of of added element the Canada. here Same follow-up prospect course, of, And things tax, the carbon have on kinds we that are

emissions kind says And would the incremental as -- drive the consistent so front pretty a between we to it do us. see industry And tax in costs. are of we carbon that's reduction, desk focused nature operating on dialogue of well nature of

transition it's reduction to it. new those opportunities of emissions note investment focusing or system It on. on the see types they're focusing transition We're going energy have know, we things. And potential go forward, energies. the we're on We meaningful we whether in you provides methane it. investments as our investigating reduction emissions This is electrification. through for, in of system's that reduce through program So to to important

impact in carbon that focused preserves forward. on the manner LNG of continental doing are WCSB and the into emissions We competitiveness best we go that lower through ultimately market investments that as But way markets. in mitigate our is price the a on the the that case to in

Andrew Kuske

you. Thank helpful. That’s

Stan Chapman

Thanks, Andrew.

Operator

Our next ahead. go Bank National question comes from of Kenny Financial. Patrick Please

Patrick Kenny

on to Producers market everybody. to of Gulf with this Coast long-term access Canadian I to secure wanted morning, Good the line trend just and recent yourself A&R. and course, Gas main touch And pricing. looking international contracting down the of

could trend in flip guess, into any how Alberta system might mainline terms be you thinking impact overtime? how from side, mitigating then on on And less gas I upside curious for Just be the you. Eastern your Ontario flowing about financial this meaningful of perhaps

Tracy Robinson

Patrick. that I am to going take

and energy transition. know is in So an grow we gas demand demand, do the LNG is component of rather And be natural going to forecasted decades global to to continue is coming globally. important

well Canada. really the to growth, it's, has to that positioned America West in the participate North Gulf Coast it's Coast off So whether or to whether

We across of assets portfolio have strong a integrated and Mexico. interconnected very highly US Canada,

can facilities, through well Coast we opportunity us is on And the LNG the also coast. gas leaving what to the is continent. to to even get access want fill we the of opportunity top but void sit left there's by for US We as provide can direct the positions to the if, direct the to WCSB So Marcellus Gulf participate. get in to assets. west the We

access looking go we go we I the So the any to south much we forward. are to U.S. to would to say can provide down as as global now as right market opportunity more we capacity continue limited. work of both Stan customers, whatever opportunity I, we'll market our and the somewhat whatever to and capacity, available take advantage with see. opportunity But with -- to

Patrick Kenny

Okay. That's very much. Thank you great.

Francois Poirier

Thanks, Pat.

Operator

ahead. Matt go question Pickering, next Please of & comes Holt from Our Taylor Tudor, Co.

Matt Taylor

just taking explain here. compressor wanted or I of believe, to at U.S. Thanks now? tied opportunities electrification said, change you on on mainline, on side your in focusing into the needs on for first stations, focus on U.S. renewable renewable you the my start what Yes. to development. which, start the for Canada really right I regulatory NGTL, n looking to the you're for Can of you focused questions

Francois Poirier

return rate is that the and the is Corey deliver -- our With our of gas least Perhaps, respect to in additional system, to provide most build to instances, comments. I'll alternative, obligation start within compression Canada of service. Currently, least cost to or with deliver alternative. electrification prescribed then can gas cost deliver a to turbines

inflection we technology tax As somewhere motors. that there would stations of the potentially time, cost designing carbon or clear of a to around economic an advantage the over least alternative. would point be with meets do is escalates increased $XX standard $XX And reassessing we amount tonne, electric what be believe where compressor a

development. perhaps help factor I And, the accommodations think electric to base, rate also into to supply We the to have accelerate also extent wires generation would at include have the some stations. in factor we in that motors to course, to poles are there reliability; to proximity power other and to even of also regulatory compressor of that

anything on you Corey, I So there see those want add question. [ph] that are things the two that to to and else that? Nat is

Corey Hessen

start. is opportunity that, the the pick thing you add have a models in only we place. the Matt, place would to U.S., significant financial to got current I a really Yes. And in with

are about actively learned those to the lessons we're learning we'll so, taking lessons set Canada. apply U.S., process opportunity the our the And and in then in we

Matt Taylor

to Canada right politically. We That's about you this, the great. not serious for the curious at mean. viewed if very it's government alternative. Francois, your the I'm is our lobbying, Thank you, fact, carbon tied carbon this Maybe I one mentioned you. educating meeting -- is that still even thoughts, taxes that argument, looking emission here cost be make if, about least or way could to on whether in be looking objectives, can just or follow up

right So not the this cost at is just way to term? be looking perhaps, at maybe looking the longer alternatives least

Francois Poirier

are directly specific they these the conversations conversation, through can outside you, participants, regulators appropriate, questions So is as deliver energy policy industry which my implement governments are our extent I thoughtful of of responsibly reliably or course, or regulators the we very to ourselves the minimize either And whether is objective customers all sometime of that for lowest various in And, a sometime, same evolving velocity that and implemented mind, from manner. complex in landscape in tell change All of manner. and in to do of levels government. at in cost. project and to with very it's associations, are take the a as our policy have it perspective possible simply the rapidly. well it practical emissions. at will fashion to because be But an take affordable the

Matt Taylor

it That's Thanks me. for great. for That's that.

Francois Poirier

Thanks, Matt.

Operator

Becca of next Our from comes question US ahead. Please go Advisors. Followill Capital

Becca Followill

Good morning guys.

that up compression for reliability electric Just issue pipelines. and of on, gas following

battery storage about hours. four is most So,

issue on And gas so and how do you electric putting pipeline handle reliability compression? the in

Glenn Menuz

Hey Francois here.

Francois Poirier

Yes. Go ahead.

Glenn Menuz

take the a Electric I Actually drive are putting doing what Gas that will in driven. dual Francois. both with example, we that and VR project, is for is

spin. the you when station, electric electric the power to example, have for will motor So

power, a electric and motor. in loss drive have will the that will effectively clutch you then then If kick unit the of a there's a there's electric gas

these XXX% So with that Is an It's drives to not in. electric unit. respect that makes putting you we're just reliability dual have sense?

Becca Followill

Yes. is sense? would investment, the what this rate was that this not not maybe oh, pipeline. to base. like, is clarify, in I That this, makes then, that investment Yes, And that's just just we're independent a to is for put way doing. me, that's you good

Francois Poirier

the commercial Under the investments be affiliates terms unregulated of Corey length you Storage jurisdictions, and these of in that know, that runs. our current enter into our Power business compact arrangements with in arm's affiliates. would And, in our are all regulated renewables

Becca Followill

off temporary and on determination Okay. in Thank upon does that of is how a the of dependent that? that that? carbon the all merger And used you. at just with grid, pipeline was And dependent some pipelines that in the then, on being impact

Bevin Wirzba

Becca for the This Yes, is thanks question. Bevin.

extensive And project. And on just Pembina, world pipelines, carbon partners its system. that it's assets both partners in can not transportation an scale as but rely network the Our corridors with and pipelines focused have us interconnections. specific of this we developing remain of

development And to grid. both so, the with of leverage as we bases, our other well believe our, industry our work the that fulfill full we can of partners asset as

Becca Followill

project. inter pipeline, the So merger breaking part no the impact has on

Francois Poirier

early work pieces this They would this very At wouldn't, definitely in pulling we'll in a well together you -- time, of also no. to successful to all them outcome the if look that with stages we're the the lines of with can that Brookfield still solution. is acquisition, see industry interpipe they be contribute. of And know, in the part as

Becca Followill

you. Thank Right.

Francois Poirier

Becca. Thanks

Operator

Our question Sachs. Goldman next Please ahead. of from go Lapides Michael comes

Michael Lapides

the was unit compared in you that quick, Real for levels. hydrogen know question. your Bruce you my X was the think taking mentioned for I about and you Thank flows. guys, it materials Hey, cash the detail And release didn't pressure on

some seeing this at minor are Just the with thinking history on border US the you XX that serious major of undergoing when it's to people the now what some insight not X? started just, of right things -- unit just other that the thought conviction? outages. or America you issues actually know, were at XX you I'd kind stage what early think curious you side in of to more when of gives last that technically know, something gives the about had pretty they pretty years were love North plans that I'm the over what

Corey Hessen

issue. CNSC. identified identified it's Bruce Corey. about to the can amongst have site the the manage do following resolve process done by don't are of we Michael, executive this Power to what systematic to fair on team and the all the at a for that technical can speak how amount want I as I Hi, the issues. at a we say But management operators and R&D was is effectively. And issue that,

I qualified to want the exactly And is really process that's meaningful way on don't is question. resolution CNSC what team in that a our I'm qualified. don't anybody really think so not until is, complete, and to technical I the comment And answer

Michael Lapides

other to at it's impact Got that it, just of doesn't but the something isolated it competent any And Okay. there? this you're and units X, unit that's point,

Corey Hessen

X say bit a that than design What different is units. would unit other I is the the

the impact different other it on would what X unit so units. is than And on be those

Michael Lapides

Thanks. much it, guys. you. it? Got Thank appreciate

Francois Poirier

Thanks, Michael.

Operator

comes question Kania go Alex next Wolfe Please Our Research. from of ahead.

Alex Kania

just the Thanks. of today term question. any the about and you it's I But improve the investment just portfolio footprint, trying that know, history of your of to sold lot or you energy and management. guess there just, like, long the thinking transition kind rehabilitation new into or opportunities Are divested are are one Tennessee about respect I overall think new help portfolio strategy? product to of assets rest you if whatnot cleaner. maybe had with a fund make could in the transitional investments? the be to the kind existing that that It'll feel theme of

Don Marchand

Hi, Alex, it's Don here.

our look source think looking started you've capital over funding And cheapest recycle internal the past I versus that. of -- we we shown to count an the and of look growth. several at years. we us to projects new I here seen think adeptness we’re capacity, the a growth here. willingness our share And Whenever for minimize for

scour capacity, look So our fund billion now. year asset we're $X anything the which we to $X beyond stuff is That's range. to into internal to the portfolio sale a probably will in pretty good opportunities said, for continue and the

cognizant optionality be consequences. a embedded has there. to piece alluded a the taking the from has and earlier, value and system detracts and pipelines certain to network and have that We Stan and components half our to the out value in assets network got the overall The this a where actually across Tracy dozen or alluded we've

magnitude looking nothing we're something at jumping it's evaluate. but look we is will But for a we think an something any we'll right at, candidate were of anytime out So, capacity, that. now internal beyond there investing it's

Alex Kania

Thanks. Best luck. Great.

Don Marchand

you. Thank

Francois Poirier

Thanks, Alex.

Operator

over call to Ladies TC session. Relations Poirier. will please ahead. now Energy. If Investor I the any go there turn Poirier. this are the contact further questions, Mr. concludes and Please question-and-answer Francois gentlemen, at

Francois Poirier

Thank you.

during financial half the XXXX, operational translated first summary, to our for record in the excellence and strong So demand commitment results. services our of into

solid billion build earnings, capital takes. other and irreplaceable prosper $XX generated or record flow long internally With growth and growing direction of of to we sheet, track an per positioned our cash our well program irrespective dividends organic expect As balance we are and extensive numerous share. footprint, technical advance expertise, to secure cash opportunities, a substantial pace on we asset the energy transition

Looking to sustainability, continue signposts. our will focus to working according values on and quickly signals and forward, to responding safety, we market

is I down will as closing, CFO after on call. July X the stepping this years He like last quarterly XX, to would November acknowledge retire XX before conference and Don's company. that Now, is on with

capital, concludes market to and company's disciplined shifts. industry he strength, team, energy entire really approach I'm closely our support the senior strength, have on to will maintain soon. our as capital our and strategic with execute executing financial and the us growth, with executive behalf behalf a And respected significant speaking of my risk in while to a very you has That confident much As financial our team, working and will allocation in be joining been major and be standing for management initiatives deeply North fun now interest forward for thanks Don significant played it. our and we Energy role member and Don, premier and to of infrastructure preferences decisions America's President your the our Hunter you, and navigating years, success making Joel a of to today. continue TC has events doing long look appreciate XX Board of company future. again we're remarks. in August our the to Thank and a ongoing on direction, of on key our on Joel CFO. Vice We X, Don Executive with Directors. On role raising assuming contribution and vision ability

Operator

conference today's call. concludes This

may day. You have Thank pleasant disconnect for lines. your and you participating a

TC Energy (TRP) 30 Jul 212021 Q2 Earnings call transcript