TC Energy Corporation Reports Strong Fourth Quarter and Full-Year 2024 Results
TC Energy Corporation has released its fourth-quarter and full-year 2024 financial results, marking a period of strategic execution, financial growth, and operational milestones. François Poirier, TC Energy’s President and Chief Executive Officer, highlighted the company’s commitment to safety, operational excellence, and project execution as key drivers of success.
“For the full year 2024, comparable EBITDA from continuing operations increased approximately six per cent, and segmented earnings from continuing operations increased approximately 56 per cent compared to 2023,” Poirier stated. “Reaching mechanical completion 13 per cent under budget on the Southeast Gateway pipeline project is a monumental milestone for the company and for Mexico, reinforcing our unwavering focus on project execution.”
A significant highlight for TC Energy was the approval of a 3.3 per cent increase in its quarterly dividend, representing the 25th consecutive year of dividend growth. The quarterly dividend for the period ending March 31, 2025, will be $0.85 per common share, or $3.40 per share on an annualized basis.
Financial Highlights
(All figures are unaudited and in Canadian dollars unless otherwise noted.)
Following the spinoff of its Liquids Pipelines business into South Bow on October 1, 2024, TC Energy reported its Liquids Pipelines results as a discontinued operation.
Fourth Quarter 2024 Financial Results (Continuing Operations):
- Comparable earnings: $1.1 billion or $1.05 per common share (compared to $1.2 billion or $1.15 per common share in Q4 2023).
- Net income attributable to common shares: $1.1 billion or $1.03 per common share (compared to $1.2 billion or $1.20 per share in Q4 2023).
- Comparable EBITDA: $2.6 billion (compared to $2.7 billion in Q4 2023).
- Segmented earnings: $1.9 billion (compared to $2.0 billion in Q4 2023).
Full-Year 2024 Financial Results (Continuing Operations):
- Comparable EBITDA: $10.0 billion (compared to $9.5 billion in 2023).
- Segmented earnings: $8.0 billion (compared to $5.1 billion in 2023).
Full-Year 2024 Financial Results (Including Liquids Pipelines Contribution for Nine Months):
- Comparable earnings: $4.4 billion or $4.27 per common share (compared to $4.7 billion or $4.52 per common share in 2023).
- Net income attributable to common shares: $4.6 billion or $4.43 per common share (compared to $2.8 billion or $2.75 per share in 2023).
- Comparable EBITDA: $11.2 billion (compared to $11.0 billion in 2023).
- Segmented earnings: $8.7 billion (compared to $6.1 billion in 2023).
The 3.3 per cent increase in TC Energy’s dividend is aligned with the company’s financial performance and post-spinoff dividend allocation strategy.
2025 Outlook for Continuing Operations
TC Energy has provided a positive financial outlook for 2025, driven by new projects and strategic initiatives.
- Comparable EBITDA is expected to be between $10.7 billion and $10.9 billion.
- Earnings per share (EPS) for continuing operations in 2025 is projected to be slightly lower than 2024 due to factors including:
- Lower Allowance for Funds Used During Construction (AFUDC) related to the Southeast Gateway pipeline, expected to be placed in service on May 1, 2025.
- Reduced interest income due to lower cash balances and interest rates.
- Increased depreciation rates for the NGTL System following a five-year negotiated revenue requirement settlement.
- Higher effective tax rates and reduced capitalized interest following the Coastal GasLink pipeline commercial in-service.
Capital Expenditures:
- Expected to range between $6.1 billion and $6.6 billion on a gross basis.
- Net capital expenditures, after accounting for non-controlling interests, are expected to be between $5.5 billion and $6.0 billion.
Operational Highlights
Natural Gas Pipelines:
- Canada: Deliveries averaged 25.6 Bcf/d, up 7% year-over-year.
- NGTL System: Set a new record of 17.7 Bcf/d on February 9, 2025.
- Canadian Mainline: Fourth-quarter deliveries averaged 6.3 Bcf/d, up 11% year-over-year.
- United States: Average daily flows reached 27.0 Bcf/d, with an all-time record of 37.9 Bcf/d on January 20, 2025.
- ANR: Reached an all-time record of 10.0 Bcf on January 20, 2025.
- Mexico: Average daily flows were 2.7 Bcf/d, with the Sur de Texas pipeline setting a single-day record of over 1.7 Bcf/d.
Power and Energy Solutions:
- Bruce Power: Achieved 99% availability in Q4 2024.
- Cogeneration power plant fleet: Achieved 98% availability due to fewer forced outages and successful planned outages.
Project Highlights
- Liquids Pipelines Business Spinoff: Completed successfully on October 1, 2024.
- Southeast Gateway Pipeline: Mechanical completion achieved 13% under budget on January 20, 2025. In-service date set for May 1, 2025.
- Coastal GasLink Pipeline: Declared commercial in-service in November 2024, allowing for toll collections retroactive to October 1, 2024.
- Pulaski and Maysville Projects: Approved to support full coal-to-gas conversion at two power plants, each adding 0.2 Bcf/d of capacity. In-service expected in 2029 at an estimated cost of US$0.7 billion.
- Southeast Virginia Energy Storage Project: Approved as an LNG peaking facility in Virginia, with an expected in-service date of 2030 and an estimated cost of US$0.3 billion.
- GTN XPress Project: Placed into service in December 2024 at a cost of US$0.1 billion.
- Bruce Power Expansion: Stage 3a of Project 2030 will add 90 MW, with TC Energy’s share of capital estimated at $175 million. The project aims to increase Bruce Power’s site capacity to 7,000 MW.
- Ontario Pumped Storage Project: In partnership with the Saugeen Ojibway Nation, TC Energy is advancing pre-development work, following the Ontario government’s investment of up to $285 million for feasibility studies.
