TC Energy (TRP) Q3 2024 earnings summary

Executive summary

• Achieved strong Q3 2024 results, with comparable EBITDA up 6% year-over-year to $2.8 billion and net income of $1.5 billion, reversing a net loss in Q3 2023.

• Completed the spinoff of the Liquids Pipelines business (South Bow) on October 1, 2024, reducing long-term debt by $7.6 billion and closing $1.6 billion in asset sales.

• Southeast Gateway pipeline project in Mexico is progressing ahead of schedule, with capital costs revised 11% lower to US$3.9–$4.1 billion and commercial in-service expected by mid-2025.

• 2024 net capital expenditures revised down 8% to $7.4–$7.7 billion, supporting balance sheet strength and deleveraging.

• Placed $1.2 billion of projects in service year-to-date, with $7 billion more expected in 2024 and $8.5 billion in 2025.

Financial highlights

• Q3 2024 comparable EBITDA increased 6% year-over-year to $2.8 billion; comparable earnings were $1.1 billion ($1.03/share), up from $1.0 billion ($1.00/share) in Q3 2023.

• Net income attributable to common shares was $1.5 billion ($1.40/share) in Q3 2024, compared to a net loss of $197 million (–$0.19/share) in Q3 2023.

• Q3 2024 revenues were $4.1 billion, up from $3.9 billion in Q3 2023; net cash provided by operations was $1.9 billion.

• Capital spending for Q3 2024 was $2.1 billion, down from $3.3 billion in Q3 2023.

• Dividend declared for Q4 2024: $0.8225 per common share; dividend yield stands at 5.6% with 24 consecutive years of increases.

Outlook and guidance

• 2024 comparable EBITDA expected at the upper end of the $11.2–$11.5 billion range; post-spinoff, $9.9–$10.1 billion.

• Net capital expenditures for 2024 revised to $7.4–$7.7 billion, with $6–$7 billion annual target for 2025 and beyond.

• On track to achieve year-end debt-to-EBITDA target of 4.75x, down from 5.1x at 2023 year-end.

• Dividend growth target of 3–5% annually, supported by strong cash flows and lower leverage.

• 2025 will see $8.5 billion of assets placed in service, driving EBITDA growth into 2026.