TC Energy (TRP) Q4 2024 earnings summary

Executive summary

• Achieved best safety performance in five years and 6% comparable EBITDA growth from continuing operations in 2024.

• Completed the spinoff of the Liquids Pipelines business into South Bow in October 2024; results now reported as discontinued operations.

• Placed $7 billion of assets into service in 2024, with major projects like Southeast Gateway completed 13% under budget and Coastal GasLink declared commercial in-service.

• Achieved significant deleveraging, with year-end 2024 debt-to-EBITDA at 4.8x, down from 5.1x in 2023.

• Increased the quarterly dividend by 3.3% to $0.85 per share, marking the 25th consecutive annual increase.

Financial highlights

• Full-year 2024 comparable EBITDA from continuing operations reached $10.05 billion, up from $9.47 billion in 2023.

• Q4 2024 comparable earnings from continuing operations were $1.1 billion ($1.05/share), down from $1.2 billion ($1.15/share) in Q4 2023.

• Net income attributable to common shares for 2024 was $4.6 billion ($4.43/share), up from $2.8 billion ($2.75/share) in 2023, including discontinued operations.

• Net cash provided by operations for 2024 was $7.7 billion, with capital spending of $7.9 billion.

• Closed $1.6 billion in net proceeds from asset sales, including PNGTS and TGNH transactions.

Outlook and guidance

• 2025 comparable EBITDA projected at $10.7–$10.9 billion, with targeted annual net capital expenditures of $5.5–$7 billion.

• 2025 comparable EPS from continuing operations expected to be lower than 2024 due to higher depreciation, lower interest income, and higher tax rates.

• 2027 target EBITDA of $11.7–$11.9 billion, implying a 5–7% three-year CAGR.

• Dividend growth outlook of 3–5%, with a current annualized dividend of $3.40 per share.

• Plan to bring approximately $8.5 billion of assets into service in 2025, including Southeast Gateway.