Q2 2025 TC Energy Corp Earnings Call Transcript
Key Points
- TC Energy Corp (TRP) reported a 12% year-over-year increase in comparable EBITDA for the second quarter of 2025.
- The company has increased its 2025 comparable EBITDA outlook to $10.8 billion to $11 billion, representing an approximately 9% increase over 2024.
- TC Energy Corp (TRP) has completed or placed into service approximately $5.8 billion of capacity projects, including Southeast Gateway and East Lateral XPress Project.
- The company has a robust origination pipeline, engaging in commercial conversations with over 30 counterparties across the data center value chain.
- TC Energy Corp (TRP) has achieved an average unlevered after-tax IRR of approximately 12% for its sanctioned projects year-to-date, indicating strong project returns.
- The company faces potential challenges in maintaining its 4.75 leverage target by the end of 2026, despite strong project execution.
- There is uncertainty regarding the step-up in rates for the Columbia Gas settlement, as details will only be provided in the final filing.
- Lower equity earnings from Sur de Texas due to the strengthening peso and higher income tax expense impacted the Mexico business.
- Alberta power prices averaged approximately $40 per megawatt hour in the second quarter, which is lower than previous periods.
- The company must balance its capital allocation between Canadian and US projects, with US projects currently offering higher risk-adjusted returns.
Thank you for standing by. This is the conference operator. Welcome to the TC Energy second-quarter 2025 results conference call. (Operator Instructions) The conference is being recorded. (Operator Instructions)
I would now like to turn the conference over to Gavin Wylie, Vice President of Investor Relations. Please go ahead.
Thanks very much, and good morning. I'd like to welcome you to TC Energy's 2025 second quarter conference call. Joining me are Francois Poirier, President and Chief Executive Officer, Sean O'Donnell, Executive Vice President and Chief Financial Officer, along with other members of our senior leadership team. Francois and Sean will begin today with some comments on our financial results and operational highlights. A copy of this slide presentation is available on our website under the Investors section.
Following opening remarks, we'll take questions from the investment community. Please limit yourself to two questions. And if you're a member of the media, contact our media
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