TC Energy (TRP) Investor Update summary

Strategic positioning and business fundamentals

• Operates a critical energy infrastructure corridor connecting resilient Canadian crude supply to major U.S. refining markets, with a supply push and demand pull model and enduring fundamentals.

• 88% of EBITDA is contracted with a weighted average contract life of 7.5 years; 96% of revenue is from investment-grade customers, minimizing risk exposure.

• System serves the two largest U.S. refining markets (PADD 2 and PADD 3), with expectations of continued growth in Canadian heavy crude demand.

• Recent debt offering was significantly oversubscribed, strengthening financial position ahead of legal separation.

• Board and management team assembled with deep sector expertise and strong governance focus.

Growth projects and operational performance

• Keystone system throughput has increased, with 585,000 bpd contracted and 35,000 bpd for spot, supported by high system operating factor (SOF) of 95%.

• Recent capital-efficient projects include Port Neches Link and Houston Link, enhancing connectivity and customer optionality.

• Blackrod Connection Project, a CAD 250 million investment, is underway and expected in service by 2026, underpinning near-term growth.

• Intra-Alberta pipelines with 20-year contract terms support stable cash flows and position for future oil sands growth.

• Safety and asset integrity are top priorities, with world-class pipeline integrity programs and improved safety metrics.

Financial strategy and capital allocation

• Initial net debt to EBITDA ratio is ~5x, with a target to reduce to 4.5x in 3-4 years and 4x longer term.

• $7.9 billion in long-term debt raised, with maturities spread over 3-30 years and a weighted average interest rate of 5.68%.

• Dividend policy prioritizes stability and sustainability, with an inaugural quarterly dividend of CAD 0.50/share and future increases contingent on payout ratio reduction.

• $500 million in discretionary growth projects planned over four years, funded from free cash flow.

• Trading to commence on TSX and NYSE in early October, with market guidance for 2025 to be provided early next year.