However, the bottom line decreased from 99 cents reported in the year-ago period. This year-over-year decline can be attributed to weak results in the Canadian Natural Gas Pipelines and U.S. Natural Gas Pipelines segments.
This North America’s energy infrastructure provider's quarterly revenues of $2.6 billion outpaced the Zacks Consensus Estimate by $130 million. However, the figure decreased 17.8% year over year. TC Energy’s comparable EBITDA was C$2.6 billion, slightly down from C$2.7 billion in the previous year.
In addition, TRP’s board of directors declared a quarterly dividend of 85 Canadian cents per common share for the quarter ending March 31, 2025. This represents a 3.3% increase from the previous quarter and the dividend will be payable on March 31 to shareholders of record as of March 14. This dividend increase followed the company’s proportional allocation post-spinoff, bringing the annualized dividend to C$3.40 per share.
In the fourth quarter of 2024, Bruce Power achieved an impressive 99% availability. The cogeneration power plant fleet also performed well, reaching 98% availability, thanks to a decrease in forced outages and the successful completion of planned maintenance.
TC Energy Corporation price-consensus-eps-surprise-chart | TC Energy Corporation Quote
The company’s Canadian Natural Gas Pipelines deliveries averaged 25.6 billion cubic feet per day (Bcf/d), indicating a 7% increase compared with the fourth quarter of 2023. On Feb. 9, 2025, total NGTL System deliveries set a new record of 17.7 Bcf/d. Additionally, the company’s Canadian Mainline deliveries for the fourth quarter averaged 6.3 Bcf/d, up 11% compared with the same period in 2023.
U.S. Natural Gas Pipelines reported a comparable EBITDA of C$1 billion, indicating a 2% decrease from the prior-year quarter’s actual. This was caused by a decline in U.S. dollar-denominated EBITDA from U.S. Natural Gas Pipelines, mainly due to the sale of PNGTS on Aug. 15, 2024. Additionally, lower realized earnings from the U.S. natural gas marketing business, caused by reduced margins, and lower equity earnings from Iroquois contributed to this decrease. Moreover, the figure missed our estimate of C$1.2billion.
Mexico Natural Gas Pipelines reported a comparable EBITDA of C$234 million, up 12.5% from the year-ago quarter’s reported figure of C$208 million. The figure exceeded our estimate of C$135 million.
This increase was driven by higher U.S. dollar-denominated EBITDA from Mexico Natural Gas Pipelines, mainly due to higher equity earnings from Sur de Texas, which benefited from peso-denominated financial exposure and lower income tax expense.
The company’s Mexico Natural Gas Pipelines saw average flows of 2.7 Bcf/d. On Nov. 20, 2024, the Sur de Texas pipeline set a new single-day flow record, surpassing 1.7 Bcf/d. This achievement highlights the pipeline's vital role as a key import route for U.S. natural gas production into Mexico.
Power and Energy Solutions registered a comparable EBITDA of C$341 million, up 28.2% from the year-ago quarter’s level of C$266 million. This was driven by a higher Power and Energy Solutions EBITDA, mainly due to increased contributions from Bruce Power. This growth was a result of higher generation, a higher contract price and reduced outage costs. The figure also beat our estimation of C$231.1 million.
As of Dec. 31, 2024, TC Energy’s capital investments amounted to C$2.3 billion.
TRP had cash and cash equivalents worth C$2.6 billion and long-term debt of C$45 billion, with a debt-to-capitalization of 60% as of the same date.
TC Energy expects the comparable EBITDA outlook for 2025 continuing operations to range from C$10.7-C$10.9 billion, driven by new projects such as the Southeast Gateway pipeline and full-year contributions from projects placed in service in 2024.
The company anticipates higher contributions from the NGTL System, due to the five-year negotiated revenue requirement settlement, though these will be partially offset by reduced generation from Bruce Power because of the Unit 4 Major Component Replacement (“MCR”).
TRP also expects comparable earnings per common share (EPS) for 2025 from continuing operations to be lower than in 2024, primarily due to the net impact of higher comparable EBITDA, lower AFUDC from the Southeast Gateway pipeline, reduced interest income, higher depreciation rates on the NGTL System, higher effective tax rates and decreased capitalized interest related to the Coastal GasLink pipeline.
The company anticipates CapEx to be between C$6.1 billion and C$6.6 billion on a gross basis, or C$5.5 billion to C$6 billion on a net basis, after accounting for amounts attributable to non-controlling interests.
TRP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Spinoff Transaction Completion: The company successfully completed the spinoff of its Liquids Pipelines business (the Spinoff Transaction) on Oct. 1, 2024.
Southeast Gateway Pipeline Project: On Jan. 20, 2025, TRP achieved mechanical completion of the Southeast Gateway pipeline project and remains aligned with the CFE to finalize the remaining project activities, aiming for a May 1, 2025, in-service date.
Coastal GasLink Pipeline: In November 2024, the company declared the Coastal GasLink pipeline commercial in-service, which enabled toll collection from customers retroactive to Oct. 1, 2024.
Columbia Gulf System Projects: The company also approved the Pulaski and Maysville projects on the Columbia Gulf System. These mainline extension projects are designed to support full coal-to-gas conversion at two existing power plants and will provide a combined capacity of 0.2 Bcf/d for gas-fired generation. The projects are expected to be completed by 2029, with a total estimated cost of $0.7 billion.
Southeast Virginia Energy Storage Project: Additionally, the company approved the $0.3 billion Southeast Virginia Energy Storage Project, an LNG peaking facility located in southeast Virginia. This facility will help support an existing LDC’s growing winter peak day load, reduce peak day pricing exposure and enhance operational flexibility on the Columbia Gas system, with an anticipated in-service date in 2030.
GTN XPress Project: The company successfully placed the $0.1 billion GTN XPress project into service in December 2024.
Bruce Power Project 2030: Bruce Power has announced Stage 3a of Project 2030, which will provide approximately 90 MW of incremental capacity at the site. TC Energy’s share of the required capital for this stage is approximately C$175 million and no incremental capital call will be requested by Bruce Power. Once completed, Project 2030 is expected to optimize existing units, increasing Bruce Power’s peak output to 7,000 MW, all of which will be sold under its long-term contract with the IESO.
Bruce Power Unit 4 Major Component Replacement: On Jan. 31, 2025, the company removed Bruce Power’s Unit 4 from service to commence its MCR program. The final cost and schedule estimate for Unit 5's MCR was submitted to the IESO on the same date.
Ontario Pumped Storage Project: Lastly, TC Energy, in collaboration with prospective partners Saugeen Ojibway Nation, will advance pre-development work on the Ontario Pumped Storage Project. This follows the Ontario Government’s announcement on Jan. 24, 2025, to invest up to C$285 million to complete detailed cost estimates and environmental assessments to determine the project’s feasibility.
While we have discussed TRP’s fourth-quarter results in detail, let us take a look at three other key reports of this space.
Oil and gas equipment and services provider Liberty Energy LBRT reported a fourth-quarter 2024 adjusted net income of 10 cents per share, which marginally beat the Zacks Consensus Estimate of 9 cents, due to a year-over-year decrease in costs and expenses. However, the bottom line underperformed the year-ago quarter’s reported figure of 54 cents, due to poor equipment and service execution, along with lower activity.
As of Dec. 31, Liberty had approximately $20 million in cash and cash equivalents. The pressure pumper’s long-term debt of $190.5 million represented a debt-to-capitalization of 8.8%.
Another oil and gas equipment and services provider Halliburton Company HAL posted a fourth-quarter 2024 adjusted net income per share of 70 cents, same as the Zacks Consensus Estimate but below the year-ago quarter’s profit of 86 cents (adjusted). The numbers indicated softer activity in the region of North America, partly offset by improved fluid work in the Gulf of Mexico.
As of Dec. 31, 2024, the company had approximately $2.6 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.4. The company generated $1.5 billion of cash flow from operations in the fourth quarter, leading to a free cash flow of $1.1 billion.
Energy infrastructure provider Kinder Morgan KMI reported fourth-quarter adjusted earnings per share of 32 cents, shy of the Zacks Consensus Estimate of 33 cents. The lower-than-expected quarterly earnings were primarily due to decreased volumes on certain systems, asset divestitures and lower crude, CO2 and NGL volumes. KMI’s fourth-quarter DCF was $1.3 billion, up from $1.2 billion a year ago.
As of Dec. 31, 2024, Kinder Morgan reported $88 million in cash and cash equivalents. Its long-term debt amounted to $29.8 billion at the quarter-end. For 2025, Kinder Morgan anticipates a net income of $2.8 billion, up 8% from the prior-year level, and an adjusted EPS of $1.27, up 10%. The company expects to declare dividends of $1.17 per share, up 2% from the prior-year figure. It also anticipates budgeted adjusted EBITDA of $8.3 billion, up 4% from the previous-year level.
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