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Image source: The Motley Fool. Thursday, July 30, 2026 at 8:30 a.m. ET President and Chief Executive Officer - Francois Poirier Executive Vice President and Chief Financial Officer - Sean O'Donnell Vice President, Investor Relations - Gavin Wylie Need a quote from a Motley Fool analyst? Email [email protected] Operator: Thank you for standing by. This is the conference operator. Welcome to the TC Energy Second Quarter 2026 Results Conference Call. [Operator Instructions] The conference call is being recorded. [Operator Instructions]. I would now like to turn the conference over to Mr. Gavin Wylie, Vice President, Investor Relations. Please go ahead. Gavin Wylie: Thank you. I'd like to welcome you to TC Energy's Second Quarter 2026 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 operational and financial highlights. A copy of the slide presentation is available on our website under the Investors section. Following their remarks, we'll take questions from the investment community. We ask that you please limit yourself to 2 questions. And if you're a member of the media, please contact our media team. Today's remarks will include forward-looking statements that are subject to important risks and uncertainties. For more information, please see the reports filed by TC Energy with Canadian securities regulators and with the U.S. Securities and Exchange Commission. Finally, we'll refer to certain non-GAAP measures that may not be comparable to similar measures presented by other entities. A reconciliation is contained in the appendix of this presentation. With that, I'll now turn the call to Francois. Francois Poirier: Thanks, Gavin, and good morning, everyone. I'd like to begin today with an update on the strong momentum we continue to see across our businesses. We're capitalizing on the competitive advantages afforded by our incumbent footprint in some of the highest growth markets in North America and converting strong demand into high-return growth projects. Our consistent focus on safety and execution excellence is the foundation that delivers reliable service, it wins new business, and it ultimately drives higher financial performance that continues to create long-term shareholder value. For the first half of 2026, we've made meaningful progress on our development pipeline. We placed approximately $2 billion of assets into service, largely on time and on budget or better, and we expect to place approximately $3.5 billion into service by the end of the year. Including approximately $700 million of new natural gas pipeline projects we announced this quarter, we've now sanctioned $3 billion of growth projects at a weighted average unlevered after-tax IRR of approximately 12%. Our late-stage pending approval bucket now stands at approximately $7 billion, up $1 billion from last quarter. This portfolio reflects multiple projects in advanced stages of commercial discussions with large anchor customers and now includes our Crossroads project, where we have executed precedent agreements subject to Board approval with multiple anchor customers and are in advanced discussions with several other potential shippers. We continue to evaluate opportunities to expand the project scope with additional shippers and expect to sanction the project in the fourth quarter of this year. Looking further out, we have over $20 billion of additional projects in advanced stages of origination that align with our targeted 5 to 7x build multiple range, further supporting our long-term growth visibility. Collectively, this progress reinforces our ability to grow our capital investments while maintaining our disciplined approach to project execution, risk-adjusted returns and balance sheet strength. Our expanding capital backlog is anchored by fundamental demand growth driven by the next wave of LNG, accelerating power and data center load, LDC reliability and connectivity between low-cost supply and high-value markets, each aligning to a strategic pillar of our portfolio. Our latest outlook now points to an approximately 51 Bcf per day of incremental North American natural gas demand by 2035, and that's a 40% increase over 2025 levels and represents an 11 Bcf a day increase from our original outlook. Accelerating power demand accounts for more than half of this increase and now represents approximately 16 Bcf per day of incremental growth through 2035. Importantly, nearly 70% of this demand growth is concentrated in the U.S. Heartland, Alberta and Mexico, regions where TC Energy has a strong incumbent position and significant existing infrastructure. Additionally, customers are increasingly prioritizing supply diversity and reliability, and by 2035, more than 60% of North American natural gas production will originate from TC Energy connected basins, primarily Appalachia and the WCSB. Why are we growing our backlog and capturing growth? In the majority of premium markets we serve, we are the incumbent, often the largest provider, and that allows us to develop cost competitive expansions, converting this strong fundamental backdrop into our growing capital backlog. Our extensive footprint and our integrated storage capability and long-standing customer relationships allow us to develop innovative commercial solutions that meet evolving customer needs. Today's project announcements are a clear example of these advantages in action, reflecting growing demand from natural gas-fired power generation and data center development. The 2 U.S. projects on our Columbia system were sanctioned at a weighted average build multiple of approximately 5.8x, demonstrating the quality of our opportunity set. And in Canada, we continue to serve growing customer demand through our multiyear growth program with the latest expansion project on our NGTL system. Across our systems, we continue to see high-quality, low-risk and highly executable opportunities with more to come. Fundamentals in Canada are strengthening and customer demand continues to validate our strategy. Our outlook calls for over 8 Bcf per day of additional Canadian natural gas demand through 2035, driven by next-wave LNG, including Coastal GasLink Phase 2, industrial growth and evolving power and data center load. Our extensive natural gas franchise is uniquely positioned to capture this growth with the NGTL system serving as the primary conduit connecting Western Canadian supply to expanding markets within Alberta and across North America. The market signals we're seeing today reinforce this view. Our recent 2029 Greater Edmonton area offering closed fully subscribed and our 2030 to 2032 intra-Alberta offering saw record amounts of participation by data center developers. Given the strong customer interest, we are exploring opportunities to expand this offering to better meet customer demand. With additional receipt and export offerings currently in market, we will look to convert visible demand into incremental projects across our Canadian assets. Our focus is straightforward: understand customer demand, invest where the market is growing at competitive returns and continue to deliver low-risk repeatable performance. On to Bruce Power. We are seeing similar momentum in Ontario power markets, where power demand is expected to grow significantly over the coming decades. Against this backdrop, Bruce Power continued execution excellence is strengthening its ability to competitively serve this growing demand. As a testament to this, Bruce Power returned Unit 3 to service following its major component replacement more than 7 months ahead of the ISO schedule and approximately 15% below the cost of Unit 6. The result was driven by a strong focus on innovation and a repeatable stage-build approach, capturing learnings from each refurbishment to improve productivity, reduce risk and enhance execution certainty. Disciplined upfront planning and design maturity continue to improve cost, schedule and execution certainty across the program. New technologies and automation have already provided meaningful productivity gains, including our Unit 4 recently achieving the most efficient CANDU defuel on record. The Bruce Power story continues to resonate strongly, and I'd encourage anyone looking for a deeper dive to review the Bruce Power investor teach-in available on our website. And with that, I'll turn it over to Sean to walk through the numbers. Sean O'Donnell: Thanks, Francois. Good morning, everybody. As we walk through the second quarter financial results, I'll also touch on how our strong asset performance, continued project delivery excellence and commercial optimization are each contributing to the upper end of our 2026 EBITDA outlook range. Overall, TC delivered a 12% year-over-year growth in comparable EBITDA, marking another solid quarter of contributions by each of our business units. Our natural gas pipeline business has performed extremely well with daily average flows up 3% across our 3-country network as compared to this same quarter last year, driven by strong customer utilization and high levels of operational availability. In Power and Energy Solutions, Bruce Power achieved 99% availability in an exceptionally strong quarter following the return of Unit 3 in June from its major component replacement outage that Francois mentioned. On the right-hand side, you'll see that each business increased its comparable EBITDA contribution compared to the same quarter last year. In Canada Gas, EBITDA increased by $38 million or 4%, primarily due to higher flow-through depreciation on the NGTL and Canadian Mainline systems, along with higher incentive earnings on the NGTL system. In the U.S., EBITDA increased by $129 million or 12% due to additional contract sales and higher earnings from ANR and Columbia Gas. In our Mexico business, EBITDA increased by $90 million or 28%, driven by higher earnings related to the May '25 in-service date of Southeast Gateway, as well as higher earnings from [ Sur de Texas ]. Finally, in Power and Energy Solutions, EBITDA increased by $60 million or 20%, due to higher contributions from Bruce Power, reflecting the early return of Unit 3, strong availability and an annual price increase. Overall, it was a great quarter, supported by high system availability and performance across our pipeline assets and a particularly strong contribution from Bruce Power. Turning to our comparable EBITDA outlook, we are now targeting the upper end of our 2026 range of $11.6 billion to $11.8 billion, reflecting the strong operational performance our teams have delivered year-to-date and our high degree of confidence in our execution plans for the balance of the year. Looking ahead to 2028, we continue to target comparable EBITDA of $12.6 billion to $13.1 billion, representing an approximate 6% annualized midpoint growth from our 2025 results. On the right-hand side of the page, we've highlighted several of the key financial tailwinds that are contributing to both our 2026 and 2028 outlook, including many of the same drivers that we've benefited from in 2025. The key drivers include continued strong asset availability, expected rate case schedules, disciplined project execution and continued commercial and technical innovation and optimizations across the portfolio. As Francois highlighted, the depth of our project backlog continues to grow, which is extending the visibility of our development pipeline well beyond 2030. We've introduced a new feature to our net capital expenditure outlook this quarter, so we'll walk through the key data points for you to understand where the project backlog stands. First, as Francois mentioned, we sanctioned approximately $3 billion of growth projects year-to-date, including today's announcements. Second, we've grown our pending approval bucket in gray to approximately $7 billion, up from $6 billion last quarter. And finally, our $20-plus billion backlog of projects in origination, we've added the gray hash bars to our annual capital outlook to provide greater visibility into potential timing of these projects and a new pie chart to the right to highlight the demand drivers that are influencing the current composition of this segment of our project backlog. It's worth highlighting on the pie chart that nearly 2/3 of our origination backlog is associated with power generation. That's consistent with our year-over-year increased natural gas demand outlook that Francois mentioned earlier on Slide 6. As a general statement on FID timing, I'd say that we're looking to advance opportunities as early as possible, but expect that the sustained growth in our investment pace to occur in 2029, 2030 and beyond. While some of the FID timelines on our origination pipeline will remain dynamic, our approach to underwriting will remain disciplined. Any annual increase in our pacing of capital allocation will be underpinned by strong risk-adjusted returns, continued outstanding performance by our project delivery teams on cost and schedule and our commitment to maintaining our balance sheet strength and our 4.75x leverage target. Finally, we've released this year's report on sustainability. Report provides a comprehensive overview of our sustainability performance and progress in support of our strategic priorities. A few highlights I'd like to draw your attention to. TC has reduced methane emissions intensity by 24% since 2019, while increasing throughput by 20% and growing our comparable EBITDA in our natural gas business by 57% over the same time frame. Our report provides details on the planned pathways to further advance our methane intensity target of a 40% to 55% reduction by 2035 from 2019 levels in a manner that supports asset competitiveness and strong financial performance. And finally, to evidence the effectiveness of our early and deep engagement with indigenous communities and their meaningful community and economic participation in our projects, I'm pleased to share that we've invested $5.4 billion with indigenous and native American businesses from 2021 through 2025. I encourage you to visit the report on our website to learn more. With that, I'll pass the call back to Francois. Francois Poirier: Thanks, Sean. We continue to see the benefits of our disciplined strategy and clear set of strategic priorities. Across the business, we've delivered strong performance with second quarter comparable EBITDA increasing 12% year-over-year. And today, we now expect to be at the upper end of our 2026 comparable EBITDA outlook range. Additionally, the quarter's achievements from the return of Bruce Power Unit 3 more than 7 months ahead of schedule to the sanctioning of approximately $3 billion of growth projects year-to-date further reinforces our confidence in the outlook for the business. I'd like to leave you with this. Our confidence is driven not only by the scale of the opportunities we see ahead, but by our ability to consistently execute. Through safety, operational and project execution excellence, we will continue to find innovative commercial solutions to meet evolving customer needs, increase the return on our existing assets, secure new capital projects and consistently deliver solid financial performance. Operator, we're now ready to take questions. Operator: [Operator Instructions] And our first question for today will come from Theresa Chen with Barclays. Theresa Chen: Would you elaborate on what you're seeing in terms of demand from your customers in Alberta, in particular, whether it be data center related or just looking at the numerous large-scale WCS crude egress projects that are currently under development, supporting robust outlook for oil sands production growth and incremental demand for natural gas as well or from a demand pull perspective on LNG exports. How are these dynamics impacting your ability to negotiate creative tolling structures with Canadian producers, given already constrained gas takeaway capacity? Francois Poirier: This is Francois. I'll just say at a very high level, then I'll pass it on to Tina. A dynamic in Alberta is similar to the dynamic across our footprint. And as you saw, we've increased our outlook to 51 Bcf a day of growth across the continent by 2035. A growing portion of that gas demand is coming from power generation. And lots of that opportunity is certainly in Alberta, but also in the U.S. Heartland. And of course, we have strong incumbency in both those regions. So over to you, Tina. Tina Faraca: Yes. Thanks, Francois. Theresa, specific to your question about Canada, we are seeing growth across multiple sectors. Francois mentioned in his opening remarks about 8 to 10 Bcf of incremental demand. For us to address that demand, we have approximately half a dozen service offerings in the market totaling about 1 Bcf per day of capacity, spanning both receipt and delivery sides of NGTL and covering intra-Alberta and export points. So these offerings serve as a really helpful marker on the demand signal and directly inform our conversations on our next phase of growth for NGTL. Near-term demand targeted through the 2029 Greater Edmonton area offering, we saw a very strong market uptake on that, and we have 2030 to 2032 phased expansion that's going to unlock over 1 Bcf of intra-basin and egress opportunities. So we're seeing strong interest in the offerings with demand across both egress and intra-basin, and we're using this market data to inform our discussions on the next phase of growth across Canada. Theresa Chen: And maybe turning to the Heartland in the U.S. Congratulations on the precedent agreements on Crossroads, and we look forward to FID in the fourth quarter. Would you be able to share any color at this point related to the ultimate size and perhaps relevant economics on the project and maybe subsequent expansion opportunities within the same corridor given the outsized interest you're seeing currently? Tina Faraca: Theresa, this is Tina again. As we mentioned, we are really pleased to have signed a precedent agreement with a large anchor customers for our Crossroads expansion, expect to sanction that in the fourth quarter of this year. We're seeing significant market activity taking place across the Midwest region, which is supportive of broader investment thesis for us. We're seeing about 5 to 6 Bcf of demand growth across the Midwest, representing about a 2 Bcf year-over-year growth expectation out through 2035. We're the largest operator across several Midwest states, including Ohio, Wisconsin, Michigan, Indiana, and our footprint provides really strong delivery presence into those key demand centers. And from a competitive standpoint, incumbency and integration really matter in this market. So with our Columbia and our Crossroads, Northern Border, Great Lakes systems together give us a highly advantaged footprint. From the perspective of the Crossroads expansion, we would progress that through the next phase of discussions and sanctioning, and that will fall within our 5 to 7x build multiple. Operator: The next question will come from Praneeth Satish with Wells Fargo. Praneeth Satish: Just on the backlog changes. So you increased the pending project backlog by about $1 billion this quarter and then the potential backlog by $5 billion. I guess, can we assume that the increase to the pending project backlog is basically the Crossroads project? And then the $5 billion increase to the origination backlog, I mean, that's quite significant. Any more detail you can provide in terms of the type of projects being added? I think, Sean, you mentioned 2/3 is power gen. But any more clarity in terms of the split between U.S., NGTL, Bruce Power and Mexico that you can share? Sean O'Donnell: Yes. Praneeth, it's Sean. I'll take that. Thank you for a good question. We've got a lot of growth capital showing up in a lot of slides. Let me break it down for you a little bit. On your pending approval question, the way to think about that on Page 7, we show about $700 million that's been sanctioned. So $700 million moved from pending into sanctioned. And then when you go back to 13, you've seen that our pending has moved up. And yes, that is round numbers, largely Crossroads. And I would tell you it's going to be slightly north of $1 billion, but round numbers, you're exactly right. To the second part of your question on the potential project inventory, what we're calling origination in our new chart on Page 13. Yes, look, we felt it important to include actually on the slide this quarter because it is growing quite quickly. As you noted, $20 billion this year on origination in years, as you can see on the hashed bar chart and then a large portion of that is falling outside of 2030 and beyond. The largely power, as we said, 2/3, and then geographically, the way -- the rule of thumb I would give you on that $20 billion is about 2/3 of that is U.S. within that customer segment bar charts. And then to Francois's comments earlier, we have quite a bit of activity across NGTL on both the producer and the demand side. So about 1/3 of that capital is right now penciled for the Canadian markets. Praneeth Satish: Got it. That's very helpful. And then maybe switching gears. You've talked about using AI to optimize your pipeline network, which I think is actually one of the more compelling AI use cases that we've seen so far in midstream. Can you give us an update, I guess, on that initiative at large and the results that you've seen so far? How much of the system is currently covered by the pilot that you're doing? What are the benefits that you're realizing today? And then how should we think about potentially scaling that pilot across the rest of your system? Can those gains be kind of linearly applied and the timeframe to get there? Francois Poirier: Praneeth, it's Francois. I'll take that one. I appreciate the question. Something we're really excited about ourselves. Look, we have proof-of-concept initiatives going across the organization. I would say, on a fairly small segments of pipe, 100 kilometers here, 100 kilometers there type of thing. No, you cannot linearly extrapolate because we picked some of the lowest-hanging fruit areas where we thought there would be a greater potential. Maybe a little bit of color on how we're doing this. Our teams across the company compete for the capital to implement the AI solutions in their regions. So they have to present business cases. They have to commit to outcomes and then they get an allocation of capital. That's a good, strong fundamental way with accountabilities to deliver outcomes to figure out what the potential is. We're really at the very front end of that process. It takes time to have people sort of understand that's how we want to do things. And so we only have a near-term target for 2026 of $100 million of AI-related incremental EBITDA, and we're on track for achieving that this year, about halfway there with 2 quarters behind us. We expect to be able to articulate that potential in more detail hopefully by our November timeframe all the way out to, let's say, 2030, but we need to let this process where the teams provide the business cases and compete for capital inform that for us. So it's still a little bit early to provide that kind of detail, but stay tuned. Our intention when we do provide that detail is to do it with lots of supporting proof points and information. Operator: The next question will come from Aaron MacNeil with TD Cowen. Aaron MacNeil: You've launched several NGTL in Alberta area open seasons ahead of establishing a long-term framework for future growth investments. When customers are bidding in these projects today, are they effectively underwriting projects based on a tentative new regulatory and return construct? Or is the ultimate return framework for those investments still to be determined? Francois Poirier: It's still to be determined. The open seasons, Aaron, we're undertaking are to gauge at a much more detailed and granular fashion the level of demand for service and broken down specifically into different regions and service areas. As Tina mentioned, we're seeing more demand, and we're actually looking to potentially upsize some of the intra-Alberta offerings that we're undertaking. We are in parallel with that, having discussions with our customers about an investment framework. And it's still in the early stages of those discussions, but we hope to have some progress to report by the end of the year. Aaron MacNeil: Okay. Great. You touched on the free cash flow inflection at Bruce Power in the update a few weeks ago. But based on your internal forecasting, what level of annual growth capital do you believe TC Energy could fund organically in 2029 and 2030 while sort of maintaining your targeted leverage metrics? And how should investors think about the funding plan if all those opportunities in your pipeline come to fruition? Sean O'Donnell: Aaron, it's Sean. I'll take that question, a good one, and thank you for pulling forward the Bruce teaching, and that's an important hinge here to understand the growth capital in GasCo. I would -- let me describe the framework that we're using a 3-part framework, and we can drill into it a little bit. Funding growth capital, 3-part framework. First one is, look, the commitment to the 4.75 leverage or better, that's a firm commitment, right? And our organic deleveraging plan over the last couple and the next couple of years are going to set us up very well for that '29, '30 kind of ramp on growth capital that you're seeing. And it brings us really to the timing of that funding need. Could be '29, could be '30, but I think you're also getting a sense for what kind of the '30s are going to look like. And let me now hinge back to that Bruce slide. The critical years for the Bruce MCR program are 2031 and 2032 when the final 2 units complete their MCR program. So -- and what Bruce unlocks for us is another $2 billion to $3 billion a year of growth capital, right? So that 2031, 2032 is an incredibly powerful addition from Bruce. So we've got this 2- or 3-year window between 2029 and call it, 2030 or 2031 that we're really solving for to support Tina and Greg. And the hierarchy of funding sources as we look at that 3-year window, '29 to '31 before Bruce really kicks in is, obviously, it's just compounding the EBITDA gains that we're delivering quarter-over-quarter for you, that in parallel with driving the best projects into our sanction buckets. The best build multiples obviously create the best amount of cash flow. And look, if we have such growth in that '29, '30, '31 window that there is a funding gap, we've got a couple of levers that we can pull, right? Obviously, from a -- whether it be capital rotation or any other kind of capital market. But what we are -- we have 2 or 3 years to solve for, how tall does that growth capital go? How many years before the Bruce cash flow kicks in? And then ultimately, what is the lowest cost of capital the year before on a dollar per share basis. That's the framework. And I think, like I said, over the next year or 2 as we really see what '29 and '30 are going to look like, that's the amount of time we have to solve for that least cost, best dollar per share funding solution. Operator: The next question will come from Jeremy Tonet with JPMorgan. Jeremy Tonet: Just wanted to come back to Canada -- Canadian growth opportunities, if I could. It seems like there's a lot of opportunities as you outlined here. But just wondering if you could walk us through how it competes for capital, a lot of attractive opportunities in the U.S. The economics seem a bit better than what has been achieved in Canada historically. I just wondering the scope, the potential for improvements on either ROE, equity layer or otherwise, so that would attract your capital into Canada versus the U.S. as far as future growth projects are concerned. Francois Poirier: Thanks, Jeremy. Look, we're in the middle of these conversations with our shippers. We're doing a lot of listening. So I don't want to front-run any discussions we're having with them. What I will say is that it is a lower risk supportive regulatory framework in Canada than we have in the U.S. in terms of protections around capital, cost of debt, billing determinants, et cetera. And we also know that if we want higher returns, we're going to have to earn it. So we're working with our customers to talk through ways like through ancillary services or any cost savings that we're able to materialize can be shared to create a win-win. What's important here is to keep our focus on delivering to our customers what they need, which is growth intra-basin and growth to export points. And I do want and prefer to see some balance in our capital allocation from a geographic basis. It's not simply where does the highest IRR project discretely come from. You want some portfolio diversification for economic diversification from economies, from regulatory regimes, from policy environments. So we do keep that balance in mind in addition to the specific return of specific projects. So all those things go into the discussion, and we're doing a lot of listening right now. Jeremy Tonet: Understood. Appreciate the thoughts. And continuing on the lines of geographic diversification, I was wondering if we could go south 2 borders. And any thoughts you could share with regards to the strategy in Mexico going forward as far as the amount of exposure you want to have in the country, growth opportunities there and whether any type of Mexican monetization in the future still makes sense. Sean O'Donnell: Jeremy, it's Sean. I'll take that one. Look, I think part of what we're seeing in the Mexico portfolio, candidly, not dissimilar to what we're seeing in the U.S. at this point. Major trunk lines all built. We're seeing CFE in the last 2 years bring more generation online than they arguably have in over a decade. There's 10 gigawatts of gas-fired gen. I think 5 are commissioned already, one more pending this year, 3 gigawatts on our system. So as we've been talking about, that gas-fired -- largely gas-fired power market is growing into the pipeline capacity that we have built for it, we and others. So I think you just have that maturation cycle right now on gen growing into the pipe, but you're certainly seeing capital market and other kind of investors and strategics entering the space. So we like exactly what we have. We're not seeing any other materially large kind of investments being required anytime soon, but certainly kind of growing into the portfolio. So I'll kind of leave it at that because it's operating exactly as designed and exactly as we've kind of included in guidance in our outlook. Operator: The next question will come from Rob Hope with Scotia Bank. Robert Hope: It's good to see another increase in the pending approval backlog as well as the increase in the origination that you noted in the prepared remarks. You also did comment that the timing of FIDs is dynamic. Can you speak to how these projects are marching towards FID decisions? Just given the fact that we are seeing a number of kind of changing dynamics out there in the market and potentially some upside in these projects. So how are these projects kind of working through the funnel? And is the target still to have $8 billion of projects sanctioned this year? Francois Poirier: Rob, it's Francois. I'll take that, and I'll maybe take the back half of that question first. We typically sanction $3 billion to $4 billion a year of new projects. And we're halfway through the year, and we're already at the bottom end of that range. When you throw in the potential and our expectation of sanctioning Crossroads in the fourth quarter, which will be a sizable project on its own, plus some of the other irons we have in the fire in the U.S. and in Canada, there's a very good chance that we're going to be in that $6 billion to $8 billion of sanctioned capital for 2026, which would be a great outcome and achieve our stretch goals. With respect to the first part of your question. We -- I'm sorry. Tina Faraca: Yes, I'll take that first part. I think your question was related to what's required to get to sanctioning. And you think of the projects in origination, we talked already about Canada and some of the demand growth we're seeing there. In the U.S., we have under origination, as we've talked about before, about $14 billion of capital, 10 to 11 Bcf of capacity centered around power generation, data center demand, coal-to-gas conversions, et cetera. And we go through a rigorous process to sanction our projects, detailed conversations with our customers, ensuring we drive the highest value for our shareholders. The Crossroads expansion is next up, I believe, for sanctioning. We did talk today about our Central Virginia capacity project and our Clark project, which are important projects for us on our Columbia Gas and our Columbia Gulf systems. We are looking forward to developing more of those across the next couple of quarters and go through our process with discipline before we announce the projects. Francois Poirier: Yes. Sorry about that, Rob, in answering the second part of the question, I lost the thread on the first part, so Tina helped me out there. Robert Hope: Not a problem. And then just maybe as a follow-up, like we're seeing across the industry, everyone's growth expectations tilt higher. Can you maybe just provide kind of your views on supply chain, contractor availability and just the status of the market? Could we be entering into a bit more of a constrained supply chain? Tina Faraca: So I'll take that. We are actively monitoring all of our supply chain resources, be it actual equipment, contractor selection, human resources internally and externally. We take a very strategic approach to the supply chain process. To date for our pipeline projects, we have all of our pipeline equipment secured for everything that's been sanctioned to date. We are negotiating with many of our suppliers to ensure that all of our equipment is available in time for our projects to be in service based on the announcements that we put out. We take a very proactive approach to our contractor market as well in developing strategic alliances that allow us to keep some of our very top-tier contractors working from project to project. So we're very confident in our ability to execute our projects in light of the supply chain challenges, and we do not see any issues related to our in-service dates and having supply chain situations that would impact those dates. Operator: The next question will come from John Mackey with Goldman Sachs. John Mackay: Sean, you touched on this earlier, but I just want to focus on the strong 2Q results and the '26 guidance commentary. I know it's early, but any tailwinds you can talk about when framing up the 2028 guide that you have out there? Sean O'Donnell: John, yes, thanks for the question. Look, the ingredients on the tailwinds are fundamentally the same kind of year in and year out. It's a little bit hard to capture how much operating leverage we are getting out of every piece of equipment across 94,000 kilometers pipe and 650 bays storage. And when teams have availability that high and you've got the fundamental demand growth and a little bit of volatility in the market, this footprint is just -- candidly, it delivers and over-delivers in different ways in different years. So that's what I would tell you is the biggest tailwind. The other element that we're starting to see is we touched on commercial optimization and innovation. We -- look, we enjoy our 20-year take-or-pay contracts, but we're also seeing kind of on the innovation front is customer demand opportunities are shifting very rapidly. So when a customer sees a money-making opportunity, but they need to time shift or shape shift some of that 20-year take-or-pay stat contract, we've got capacity to move. We can move capacity. We can move regions in support of customer value capture opportunities and kind of take our fair share. And you're seeing that a little bit of that even in 2026, coupled with some weather in the first quarter. So those are really 2 big ones that are kind of driving EBITDA. And then as we get to '28, a couple of the other ones beyond the standard rate cases that we talked about that we generally had a pretty good track record on the last 2 years. The big one is just the continued place projects, yes simple -- which sounds simple. On time and at these 5 to 7 build multiples, that's a very powerful lever, right? And obviously, how much EBITDA per dollar invested we're driving. And so far, so good, right, on our '26 campaign, which is going to start showing up in '28 and potentially driving to the higher end if Tina's teams continue to do what they do. So that's kind of -- that's the high level on top of what Francois described is some of the technology and AI innovation that certainly is showing green shoots as well for us. John Mackay: Understood. So we spent a ton of time talking about Canada so far, but I want to ask one more. Now that you guys are seeing, let's say, a different type of customer coming in on the data center side, is there an opportunity for TC to invest outside of the NGTL regulatory framework, I guess, meaning specifically an ability to kind of capture potentially higher return type projects? Francois Poirier: Thanks, John. I'll start with that, and then I'll ask Greg to provide some commentary. Yes, the answer is yes. To the extent there's an opportunity to competitively meet a data center customers' needs through a short lateral that can be developed by our unregulated arm in a faster timeline at an attractive toll that helps them develop their project on the pace that they've dictated for their strategy. Those types of situations can present themselves. The other thing that's interesting is we're seeing with many of the regions in North America have bring your own power policies or large consumer rate classes to make sure that there's no inflationary impacts on other classes of customers. We're seeing a trend from data centers to longer PPAs and take-or-pay contracts for power that are starting to migrate to what I would call within the fairway of our risk preferences. So I don't think you should expect us to necessarily sanction tens of billions of dollars of behind-the-meter power projects, but there is an opportunity for us, particularly in Alberta. And perhaps I'll ask Greg to provide a little bit more detail. Greg Grant: Sure. Appreciate it, Francois. And I appreciate the question, John. In Alberta, just as a reminder, we have a very unique footprint as we start looking at, we have the power, we've been in the market for over 30 years. We have gas storage. We have unregulated gas. We have regulated gas. So when you think of a couple of weeks ago at Stampede, I haven't seen so many tech companies sponsoring the events, and we saw the first large data center announcement. That's the benefit of our footprint. And I think as we start to see more people coming, we have the lowest priced gas across North America. This will give us some of those opportunities to work across the verticals and figure out ways to Francois's point, how we're going to optimize the system and get our risk return levels where we compete with capital against the gas business. Operator: The next question will come from Maurice Choy with RBC capital markets. Maurice Choy: I wonder if you could just take us back to the high level where you've laid out that power generation and supply access has led to this revised 51 Bcf a day. When you look back at your original 40 Bcf a day estimate about 2 years ago, what has surprised you the most? And would there have been any initiatives you felt you would have pursued that perhaps you could pursue right now? Tina Faraca: Thanks for the question, Maurice. This is Tina. We have increased our demand forecast from last year to this year. I think it was 46 Bcf last year, 51 Bcf per day this year over the next 10 years. And that's primarily driven by LNG feed gas. We're seeing an increase there of about 28 Bcf per day. in power generation, 16 Bcf per day in the industrial sector, 4 Bcf per day of increase. The upside to our last forecast is primarily driven by the power generation sector. We now expect North American gas-fired generation to rise from prior outlooks of 54 Bcf per day to 60 Bcf per day by 2035. And there are a number of factors playing into that demand growth, including accelerated data center demand of about 15 Bcf, broader base electrification and coal conversions. And so a key element of that demand growth picture is that the demand is not uniform. What's important here is that demand favors the U.S. Heartland, Western Canada and Mexico, where we have incumbent positions of about 60% of the incremental demand growth is set to occur in states and provinces where we operate. And similarly, on the supply side, by 2035, about 60% of gas supply is expected to come from TC connected basins, notably a combined incremental 18 Bcf out of Appalachia and WCSB. So all this directly translates into the depth of our origination activities and our backlog. Sean O'Donnell: Maurice, it's Sean. I'll tack on to the front part of that question. Would we have done anything differently 2 years ago than today? And the answer to that is no. I think when you just break up Tina's point about all of that was LNG. Were we going to get into the LNG business seeing that growth? No. Were we going to serve the LNG business? Yes. I think power is sometimes the question. And for us, and hopefully explained today when we show our $20 billion backlog, when we're building at 5 to 7x in the core business with teams that are the best in the business doing that, that has been and remains the best value creation opportunity that we think we offer shareholders. So kind of staying the course and staying focused. Same strategy, same answers today as they would have been 2 years ago. Hopefully, that makes sense. Maurice Choy: That does make sense. Maybe I can finish off with a question on just the broad theme of data centers. There's obviously been a lot of headlines about stakeholder pushbacks on data centers in various parts of the U.S. Just at a very high level, have you seen any impact on how your customers approach signing pipeline deals with you? Francois Poirier: I'll take that one, Maurice. I think it's fair to say that, as I mentioned before, with some of the policies from PUCs and governments in various jurisdictions around bring your own power or different rate categories to make sure there isn't cross-subsidization of rates. The market, the data center developers, the hyperscalers are learning as they go along. Obviously, energy provision is a very important gating item for them to implement their strategies. When we look at the U.S. Heartland, for example, approximately 15 states, there are only 2 or 3 that actually have explored putting a pause on data center development. In 2 of those states, those were rejected. And in the third, it's under consideration, but doesn't seem to be carrying lots of momentum. So I would say that data center issue you mentioned is region-specific. And as we look at our footprint, we haven't seen it slow down the growth of our development pipeline. The comment earlier that was referred to about sanctioning projects is dynamic is because our customers, the utilities have to themselves be dynamic to compete for load and make sure that they're being responsive to stakeholders' considerations and questions as they go through. Oftentimes, that might impact the timing of sanctioning as opposed to whether or not a project will be sanctioned. So lots in there to unpack, but I think for us, it really hasn't slowed down our view on our long-term growth prospects. Operator: The next question will come from Robert Catellier with CIBC. Robert Catellier: It's been a constructive call. I just wanted to follow up on Bruce here a bit. I noticed in the press release, you had that additional funding for the impact assessment and the predevelopment work, which I think is not only appropriate but necessary. My question here is, is that enough to get you to FID? And maybe you can refresh us on timelines for the technology decision and the ultimate FID. Greg Grant: Sure. I'll take that directly, Robert, it's Greg. First, I actually wanted to give a shout-out while I have the mic. We had great performance of our teams, both at Bruce and our power team from an operational perspective. You would have seen the announcement that Unit 3 came on early to Francois's comments. But I also wanted to add because this will lead into the Bruce conversation, we continue to see Unit 6 post refurbishment running at less than 1%, which is world-class and world-leading. So this is the type of performance that really gives us comfort as we start to look at Bruce expansion and the value of our Bruce management team. The next tranche of funding of $300 million is going to cover us effectively until we get closer to the end of the decade. You mentioned a couple of the pieces of work that we're doing. This is pre-feed activities. This is technology selection, early engineering and external engagement and consultation. We'll look to continue the technology selection piece of that looking into next year likely before you start to see a selection on there. But overall, still very excited about the opportunity. This is the best nuclear site in Canada. We have the skilled labor and supply chain locked up. It's over 95% Canadian. So continue to really focus on bringing that project forward and across the line. Robert Catellier: I think on Unit 6, I mean 1% off-line time, correct? Greg Grant: Sorry, I just missed that, Robert. Robert Catellier: Yes, I think you said it's operating at 1%. I think you mean that as the outage time. Greg Grant: The forced outage rates. 2003, 1%. Robert Catellier: Sorry, I just want to go back to the question that Theresa started us off with about egress options in Canada. I think it's safe to say policy is encouraging for oil sands production growth, although, that is yet to fully materialize. My ask of you is, what do you think is possible? Should we, as a nation, be successful in growing oil sands production and what that would mean for egress requirements for natural gas. Presumably, oil sands production is going to lead to more on, say, drilling and associated gas, and it seems like that could be a bottleneck in the whole flywheel. So what do you think is going to be required longer term for egress coming out of Canada to accommodate the oil sands? Francois Poirier: Robert, it's Francois. I'll take that. I wouldn't necessarily point to egress by LNG only as the source of absorbing associated gas. As we saw with the advent of data centers in the province, there's lots of in-country load growth potential. And of course, we have coming out of NGTL, we call our U.S. pipes, the catcher's mitt for that gas in the Pacific Northwest through Northern Border into the Midwest and then into Ontario and points east. So I would foresee us expanding all of our systems in all directions and be able to accommodate the incremental associated gas to produce the condensate that's necessary for increased oil sands production. Case in point, our mainline settlement was approved recently by the regulator, that will add about 350 million cubic feet a day of capacity for a $200 million capital investment, which is extremely efficient. And that's just one proof point or example of how we're going to be able to move gas through the whole system to absorb incremental production. Of course, we would love to see more LNG export off the West Coast. We're encouraged with developments on LNG Canada Phase 2. From the sidelines, reading what's happening on the Ksi Lisims project is also encouraging. And I would hope to see more to come, the next wave of LNG export beyond those projects in the 2030s. Robert Catellier: Yes, I agree. I wasn't suggesting it was just LNG. I think it's going to have to be all of the above. Operator: The next question will come from Ben Pham with BMO capital. Benjamin Pham: I wanted to go back to the $20 billion plus projects in origination. And I'm wondering how do you think that pie chart will evolve in the coming years in terms of the size of the opportunity and the mix of the demand drivers? Sean O'Donnell: Ben, it's Sean. I'll take that. In terms of what will that pie chart look like, right, as just quarter-over-quarter, we verbally were kind of seeing a $15 billion number just earlier this year, and we felt compelled to show you now the $20 billion plus, just given how much capital formation we're starting to see in the early 2030s. Look, we're hopeful, right, that, that number still continues to grow. The fundamentals, particularly in Tina's business on the pipeline side are certainly suggestive of this new normal of what we're seeing on a run rate. I'd say it's probably a little bit early to kind of call what exactly that number is on a sustained basis or a plateaued basis, but I do think the breakdown that we're showing you is certainly a power-dominated kind of portfolio in the post 2030. So give us another quarter or 2, but we're going to attempt to kind of refine this for you as best we can as the dynamic element that we mentioned kind of firms up here over the next 6 to 12 months. Benjamin Pham: Got it. And Sean, you also mentioned looking at or factoring the Bruce Power inflection that bridge in the late decade, looking at sources of capital to bridge that. I'm curious maybe to ask then, are you able to rank order your sources of capital today, same with hybrids, partnerships, even common equity? And then to that point, how do you think about the balancing of prefunding this rising CapEx versus waiting and assessing at a future point of time? Sean O'Donnell: Yes. This is my favorite thing to work on, Ben. Supporting Tina and Greg with funding growth capital. Look, the hierarchy that we described, look, at the end of the day is ultimately -- we have a dollar per share cap that we measure absolutely everything against. And the benefit of what we're seeing kind of in the market right now, set EBITDA side. That's obviously our top priority in terms of hierarchy. As you start to look at capital rotation or investment grades or hybrids or anything else, all of those capital markets are -- and I'll throw private credit in there. They're incredibly constructive, right? We're at all-time tights on every market that we're in. And increasingly, you're seeing even private credit in the 5%, 6 kind of percent range inside of our hybrids, certainly well inside of our common. So it's just that -- we have a lot of options and a lot of levers in a couple of years to kind of figure that out. So that's exactly -- we're going to take our time and watch that $20 billion pie chart develop and kind of a year ahead, probably no rush, no forcing function to have us do anything sooner than absolutely necessary to support the growth capital, particularly '29 and '30. So I think 2028 will really be the year where you start to see us kind of put things in motion depending on what '29 and '30 and then Bruce and '31 look like, what that balancing capital solve might look like. Operator: Ladies and gentlemen, this concludes the question-and-answer session. If there are any further questions, please contact Investor Relations at TC Energy. I would now like to turn the call over to Mr. Gavin Wiley for any closing remarks. Please go ahead. Gavin Wylie: Operator, thank you very much, and thank you for everyone for participating this morning with your great questions. We may not have gotten through all the questions, so please do reach out to the Investor Relations team. We're always happy to help. Again, thank you for your interest in TC Energy, and we look forward to our next update in early November. Thank you. Operator: This brings to a close today's conference call. You may disconnect your lines. Thank you for your participation, and have a pleasant day. Before you buy stock in Tc Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tc Energy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Tc Energy. The Motley Fool has a disclosure policy. TC Energy (TRP) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

TC Energy Corporation TRP reported second-quarter 2026 adjusted earnings of 68 cents per share, beating the Zacks Consensus Estimate of 61 cents by 11.48%. Adjusted earnings per share in Canadian cents rose 15.3% year over year, supported by higher contributions across all four operating segments. Canada-based oil and gas storage and transportation company’s quarterly revenues of $2.86 billion beat the Zacks Consensus Estimate of $2.75 billion by 4.12% and increased 5.6% year over year. TC Energy Corporation price-consensus-eps-surprise-chart | TC Energy Corporation Quote Comparable EBITDA advanced 12% to C$2.95 billion, aided by strong pipeline utilization and Bruce Power availability. TRP’s board of directors declared a quarterly dividend of 87.75 Canadian cents per common share for the quarter ending Sept. 30, 2026, equivalent to $3.51 on an annualized basis. The common share dividend is payable on Oct. 30 to its shareholders of record on Sept. 29, 2026. Canadian Natural Gas Pipelines generated comparable EBITDA of C$961 million, up 4.1% from C$923 million in the year-ago quarter. The improvement primarily reflected higher flow-through depreciation on the NGTL and Canadian Mainline systems, along with increased incentive earnings on NGTL. U.S. Natural Gas Pipelines’ comparable EBITDA increased 11.8% to C$1.22 billion. Mexico Natural Gas Pipelines delivered C$409 million, up 28.2%, driven by contributions from the Southeast Gateway pipeline and higher earnings from Sur de Texas. Power and Energy Solutions’ comparable EBITDA climbed 19.9% to C$361 million on stronger Bruce Power results. Canadian Natural Gas Pipelines’ deliveries averaged 24.2 billion cubic feet per day (Bcf/d), up 1% year over year. Canadian Mainline Western receipts averaged 4.6 Bcf/d, representing a 4% increase from the prior-year quarter. U.S. pipeline flows increased 5% to 27 Bcf/d, while deliveries to liquefied natural gas facilities rose 13% to 3.9 Bcf/d. Mexico pipeline flows declined 5% to 3.4 Bcf/d, primarily due to pipeline flow adjustments. Deliveries to Mexican power-generation facilities remained unchanged at 1.4 Bcf/d. Bruce Power achieved 98.5% availability during the quarter and recorded no forced outage days. Its Unit 3 reactor returned to service following a major component replacement project more than seven months ahead of the schedule committed to Ontario’s Independent Electricity System Operator. The Unit 3 refurbishment also cost 15% less than the Unit 6 program. Bruce Power expects to return approximately C$150 million to Ontario ratepayers because of the favorable project performance. Meanwhile, TC Energy’s cogeneration power plant fleet recorded availability of 89.6%, reflecting planned spring outages. TRP sanctioned C$700 million of projects during the second quarter, bringing total projects approved in 2026 to approximately C$3 billion. The company also increased its pending-approval portfolio to roughly C$7 billion and identified more than C$20 billion of additional projects in origination. New projects include the Central Virginia Capacity expansion, with an estimated cost of $300 million, and the $100-million Clark project. These U.S. developments are supported by 20-year take-or-pay contracts and have a weighted-average build multiple of approximately 5.8 times. TC Energy also approved C$100 million of expansion facilities on the NGTL system. The company placed approximately C$1.8 billion of projects into service during the first six months of 2026. These included the Bison XPress project, Bruce Power Unit 3 and capacity additions on the NGTL system. Capital spending totaled C$1.12 billion in the second quarter, down from C$1.38 billion a year earlier. Net cash provided by operations increased to C$2.22 billion from C$2.17 billion, while comparable funds generated from operations rose to C$2 billion from C$1.96 billion. The company had cash and cash equivalents worth C$277 million and long-term debt of C$14.71 billion, with a debt-to-capitalization of 62.7% as of the same date. Management now expects comparable EBITDA to reach the upper end of its C$11.6-C$11.8 billion guided range. Comparable earnings per share are still projected to exceed the 2025 level. Net capital expenditures are expected between C$5.5 billion and C$6 billion. TRP continues to target comparable EBITDA of C$12.6-C$13.1 billion in 2028. Management cited strong asset availability, rate-case outcomes, project execution, commercial optimization and technology initiatives as key drivers. The company remains committed to achieving its long-term debt-to-EBITDA target of 4.75 times. TC Energy raised its forecast for incremental North American natural gas demand through 2035 to be 51 Bcf/d, representing a 40% increase from 2025 levels. Power generation accounts for more than half of the latest forecast increase, reflecting growing electricity and data-center requirements. This Zacks Rank #3 (Hold) company is also advancing artificial intelligence initiatives designed to improve pipeline operations. Management expects these efforts to contribute C$100 million of incremental EBITDA in 2026 and indicated that it was roughly halfway toward that target after the first two quarters. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. While we have discussed TRP’s second-quarter results in detail, let us take a look at three other key reports in this space. Houston, TX-based oil and gas equipment and services provider Halliburton HAL posted second-quarter 2026 adjusted net income per share of 55 cents, marginally beating the Zacks Consensus Estimate of 54 cents. Halliburton’s outperformance was backed by year-over-year revenue growth. However, the bottom line was flat compared with the prior-year level. As of June 30, 2026, Halliburton had approximately $2 billion in cash and cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization of 39%. Fort Worth, TX-based oil and gas exploration and production company Range Resources Corporation RRC reported second-quarter 2026 adjusted earnings of 79 cents per share, up 19.7% from 66 cents a year ago. Range Resources’ bottom line topped the Zacks Consensus Estimate of 56 cents by 41.1%. Strong quarterly results are driven by higher production and improved price realization. The company’s net debt was $880.8 million at June 30, 2026, down 28% from $1.22 billion at year-end 2025. Range Resources repurchased $78 million of shares and paid $24 million in dividends during the quarter. Houston, TX-based oil and gas storage and transportation company Kinder Morgan, Inc. KMI reported second-quarter 2026 adjusted earnings of 37 cents per share, beating the Zacks Consensus Estimate of 31 cents by 19.35%. Earnings increased 32.1% from 28 cents per share in the year-ago quarter. Strong quarterly results benefited from broad-based segment growth, led by higher natural gas transportation and gathering volumes. Natural gas transport volumes rose 7%, while gathering volumes increased 26%. As of June 30, 2026, Kinder Morgan reported $89 million in cash and cash equivalents. Kinder Morgan’s net debt stood at $32.03 billion at quarter-end. The net debt-to-adjusted EBITDA ratio improved to 3.6X from 3.8X at the end of 2025. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TC Energy Corporation (TRP) : Free Stock Analysis Report Halliburton Company (HAL) : Free Stock Analysis Report Range Resources Corporation (RRC) : Free Stock Analysis Report Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in TC Energy Corporation? Here are five stocks we like better. TC Energy expects 2026 comparable EBITDA at the upper end of its CAD 11.6 billion–CAD 11.8 billion guidance range after second-quarter EBITDA rose 12% year over year. Growth was supported by higher pipeline utilization, new projects and strong Bruce Power performance. The company placed approximately CAD 2 billion of assets in service during the first half and expects another CAD 3.5 billion by year-end, while its late-stage project pipeline grew to CAD 7 billion. Management also cited rising North American gas demand, forecasting a 40% increase by 2035, particularly from power generation and data centers. TC Energy reaffirmed its leverage target of 4.75 times or better and plans to prioritize EBITDA growth and high-return projects before Bruce Power’s refurbishment program generates an expected CAD 2 billion–CAD 3 billion of annual growth capital after 2031–2032. The company also remains on track for CAD 100 million in AI-related incremental EBITDA in 2026. 3 Boring Infrastructure Stocks That Could Beat the Market in 2026 TC Energy (NYSE:TRP) said it expects to reach the upper end of its 2026 comparable EBITDA guidance range after reporting 12% year-over-year growth in second-quarter comparable EBITDA, supported by higher pipeline utilization, contributions from projects placed in service and strong performance at Bruce Power. The company is targeting comparable EBITDA at the upper end of its previously disclosed CAD 11.6 billion to CAD 11.8 billion range for 2026. It maintained its 2028 target of CAD 12.6 billion to CAD 13.1 billion, which it said represents approximately 6% annualized growth at the midpoint from 2025 results. → Microsoft Just Flipped the AI Spending Narrative Overnight Bet on These 3 High-Yield Stocks as Natural Gas Demand Grows Chief Financial Officer Sean O'Donnell said daily average flows across TC Energy's three-country natural gas pipeline network rose 3% from the prior-year quarter, reflecting customer utilization and operational availability. Bruce Power achieved 99% availability during the quarter following the June return of Unit 3 from a major component replacement outage. Comparable EBITDA increased across all four of the company's operating businesses: Canada Gas: EBITDA increased CAD 38 million, or 4%, due primarily to higher flow-through depreciation on the NGTL and Canadian Mainline systems and higher incentive earnings on NGTL. U.S. Natural Gas Pipelines: EBITDA rose CAD 129 million, or 12%, on additional contract sales and higher earnings from ANR and Columbia Gas. Mexico: EBITDA increased CAD 90 million, or 28%, reflecting earnings from the May 25 in-service date of Southeast Gateway and higher earnings from Certateos. Power and Energy Solutions: EBITDA rose CAD 60 million, or 20%, driven by Bruce Power's Unit 3 return, strong availability and an annual price increase. → 2 Unique Space ETFs That Could Upend the Industry Equitrans Midstream Surges 40% On Debt Ceiling Deal President and Chief Executive Officer François Poirier said Bruce Power returned Unit 3 to service more than seven months ahead of the Independent Electricity System Operator schedule and at an approximately 15% lower cost than Unit 6. He said the results reflected a repeatable refurbishment approach, planning and the use of technology and automation. TC Energy placed approximately CAD 2 billion of assets in service in the first half, largely on time and on budget or better, and expects to place another approximately CAD 3.5 billion in service by year-end. The company has sanctioned CAD 3 billion of growth projects year to date, including about CAD 700 million of natural gas pipeline projects announced during the quarter. Those sanctioned projects carry a weighted average unlevered after-tax internal rate of return of approximately 12%, according to management. → MarketBeat Week in Review – 07/27- 07/31 The company's late-stage pending-approval project bucket increased to approximately CAD 7 billion from CAD 6 billion in the prior quarter. O'Donnell said the increase was largely related to the Crossroads project, which he described as slightly more than CAD 1 billion. TC Energy has signed precedent agreements with multiple anchor customers and expects to sanction Crossroads in the fourth quarter. Its projects in origination now exceed CAD 20 billion, with roughly two-thirds associated with U.S. projects and about two-thirds tied to power generation. Management said much of that potential capital is expected beyond 2030, with sustained growth in investment pace anticipated in 2029 and later. Poirier said TC Energy's latest forecast calls for approximately 51 billion cubic feet per day of incremental North American natural gas demand by 2035, a 40% increase from 2025 levels and 11 Bcf per day above its original outlook. Power demand accounts for more than half of the increase, with about 16 Bcf per day of incremental growth expected through 2035. Nearly 70% of the projected demand growth is concentrated in the U.S. Heartland, Alberta and Mexico, regions where the company already operates substantial infrastructure. Management said its Canadian outlook includes more than 8 Bcf per day of additional demand by 2035, driven by LNG, industrial activity, power demand and data centers. Tina Faraca, executive vice president and chief operating officer for Natural Gas Pipelines, said TC Energy has about half a dozen offerings in the market totaling roughly 1 Bcf per day of capacity across NGTL receipt and delivery points, including intra-Alberta and export service. Faraca said the company's 2029 Greater Edmonton Area offering was fully subscribed, while its 2030-2032 intra-Alberta offering received record participation from data center developers. TC Energy is considering expanding that offering. In the U.S. Midwest, Faraca said the company sees five to six Bcf per day of demand growth through 2035 and views its Columbia, Crossroads, Northern Border and Great Lakes systems as an integrated and advantaged footprint. The Crossroads expansion is expected to fall within TC Energy's targeted five-to-seven-times build multiple range. Management said it remains in discussions with Canadian customers regarding a framework for future NGTL growth investments. Poirier said the company expects to report progress by the end of the year, while noting that the return framework remains to be determined. O'Donnell reaffirmed TC Energy's commitment to a leverage target of 4.75 times or better. He said the company expects Bruce Power's major component replacement program to unlock an additional CAD 2 billion to CAD 3 billion annually in growth capital after the final two units complete their refurbishment work in 2031 and 2032. For the period before that cash-flow inflection, management said it will prioritize EBITDA growth and high-return sanctioned projects while retaining options including capital rotation and capital-market financing if a funding gap emerges. O'Donnell said the company expects 2028 to be the period when it begins taking steps to support potential capital needs in 2029 and 2030. Poirier also said TC Energy is on track to achieve its near-term target of CAD 100 million in AI-related incremental EBITDA in 2026. The company is currently running proof-of-concept initiatives on relatively small pipeline segments and expects to provide a more detailed outlook on the opportunity by November. TC Energy (NYSE: TRP) is a North American energy infrastructure company headquartered in Calgary, Alberta. Formerly known as TransCanada, the company rebranded as TC Energy to reflect its broad presence across Canada, the United States and Mexico. TC Energy develops, owns and operates a diversified portfolio of energy infrastructure assets that play a central role in the transportation and delivery of energy across the continent. The company's principal businesses include long‑distance natural gas transmission, liquids (crude oil) pipelines, natural gas storage and power generation. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "TC Energy Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Comparable EBITDA grew 12% year-over-year in Q2 2026, driven by strong asset performance across all business units. Sanctioned approximately $3 billion of growth projects year-to-date with a weighted average unlevered after-tax IRR of about 12%. Bruce Power returned Unit 3 to service more than 7 months ahead of schedule and 15% below the cost of Unit 6, demonstrating execution excellence. Increased the late-stage pending approval project backlog to approximately $7 billion, up from $6 billion last quarter, including the Crossroads project. Now targeting the upper end of the 2026 comparable EBITDA outlook range of $11.6 to $11.8 billion, reflecting strong operational performance and confidence in execution plans. The long-term regulatory and return framework for future NGTL investments in Canada remains undetermined, creating uncertainty for project underwriting. Funding for the anticipated growth capital ramp in 2029-2030 requires a bridge solution before Bruce Power's cash flow inflection in 2031-2032. The timing of final investment decisions (FID) on the $20 billion origination backlog remains dynamic and subject to customer and regulatory developments. Data center development faces regional stakeholder pushback in some US states, which could slow the pace of project sanctioning. Supply chain and contractor availability are being actively monitored, though no current issues are seen, the market could become more constrained as industry growth accelerates. Here are the key highlights from the TC Energy Corp (NYSE:TRP) Q2 2026 earnings call, presented as Q&A pairs. Warning! GuruFocus has detected 12 Warning Signs with TRP. Is TRP fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on the demand you are seeing from customers in Alberta, particularly regarding data centers, LNG exports, and oil sands production, and how this impacts your ability to negotiate tolling structures?A: (Francois Poirier, President and CEO; Tina, Executive Vice President) The dynamic in Alberta mirrors the broader North American trend, with a growing portion of gas demand coming from power generation. We are seeing growth across multiple sectors, with an incremental demand of 8 to 10 Bcf/d. We have approximately half a dozen service offerings in the market totaling about 1 Bcf/d of capacity. The 2030 to 2032 phased expansion is expected to unlock over 1 Bcf of intra-basin and egress opportunities, and we are using this strong market data to inform the next phase of growth across Canada. Q: Congratulations on the precedent agreements for the Crossroads project. Can you share any color on the ultimate size, economics, and subsequent expansion opportunities within the same corridor?A: (Tina, Executive Vice President) We are pleased to have signed precedent agreements with large anchor customers for the Crossroads expansion and expect to sanction the project in the fourth quarter of this year. We are seeing significant market activity across the Midwest, with about 5 to 6 Bcf of demand growth representing a 2 Bcf year-over-year expectation out to 2035. Our Columbia, Crossroads, Northern Border, and Great Lakes systems give us a highly advantaged footprint. The project will fall within our targeted 5 to 7 times build multiple. Q: You increased the pending project backlog by about $1 billion and the potential origination backlog by $5 billion. Can you provide more detail on the type of projects being added and the geographic split?A: (Sean, CFO) The increase in the pending approval backlog is largely the Crossroads project, which is slightly north of $1 billion. The $20 billion origination backlog is growing quickly, with a large portion falling outside of 2030. About two-thirds of this backlog is power generation-related. Geographically, about two-thirds is in the US, and about one-third is penciled for the Canadian market, primarily on the NGTL system. Q: Can you give an update on your AI initiatives, the results seen so far, and how we should think about scaling the pilot across the rest of the system?A: (Francois Poirier, President and CEO) We have proof-of-concept initiatives on small segments of pipe. We have a near-term target for 2026 of $100 million of AI-related incremental EBITDA and are on track, being about halfway there. We expect to be able to articulate the potential in more detail by our November timeframe, as teams compete for capital to implement AI solutions, which will inform the broader potential. Q: You've launched several NGTL open seasons ahead of a long-term regulatory framework. Are customers underwriting projects based on a tentative new construct, or is the ultimate return framework still to be determined?A: (Francois Poirier, President and CEO) The ultimate return framework is still to be determined. The open seasons are to gauge the level of demand for service in a more detailed fashion. In parallel, we are having discussions with our customers about an investment framework. These discussions are in the early stages, but we hope to have some progress to report by the end of the year. Q: What level of annual growth capital do you believe TC Energy could fund organically in 2029 and 2030 while maintaining your targeted leverage metrics?A: (Sean, CFO) Our funding framework has three parts. First is a firm commitment to our 4.75x leverage target. Second, the Bruce Power MCR program is critical, as it will unlock another $2 to $3 billion a year of growth capital in 2031 and 2032. This creates a 2-3 year window (2029-2031) to solve for funding before Bruce cash flow kicks in. The hierarchy of funding sources includes EBITDA gains, driving the best build multiples, and if there is a funding gap, we have levers like capital rotation. We have time to find the least-cost, best dollar-per-share solution. Q: Given the attractive opportunities in the US, how does Canada compete for capital, and is there potential for improvement on ROE or equity weight to attract capital there?A: (Francois Poirier, President and CEO) We are in the middle of these conversations with our shippers. The regulatory framework in Canada is lower risk with protections around capital and cost of debt. We know we have to earn higher returns, so we are working with customers on ways to share cost savings to create a win-win. Importantly, we want portfolio diversification across economies and regulatory regimes, so we keep that balance in mind alongside the specific returns of projects. Q: Can you speak to how the projects in your growing backlog are marching towards FID decisions, and is the target still to have $8 billion of projects sanctioned this year?A: (Francois Poirier, President and CEO; Tina, Executive Vice President) We typically sanction $3 to $4 billion a year. We are already at the bottom end of that range for the year. With the expected sanctioning of Crossroads in the fourth quarter, plus other irons in the fire in the US and Canada, there is a very good chance we will be in the $6 to $8 billion range for 2026, achieving our stretch goal. The process to get to FID is rigorous, involving detailed conversations with customers to ensure we drive the highest value for shareholders. Q: You mentioned the strong 2Q results and the 2026 guidance commentary. Can you talk about the tailwinds framing up the 2028 guide?A: (Sean, CFO) The key tailwinds are the same year in and year out, primarily the operating leverage we get from high asset availability across our 94,000 km of pipe and 650 Bcf of storage, combined with fundamental demand growth. We are also seeing benefits from commercial optimization and innovation, where we can move capacity to support customer value capture. For 2028, the big driver is the continued placement of projects on time and at 5 to 7 times build multiples, which is a powerful lever for EBITDA growth. QFor the complete transcript of the earnings call, please refer to the full earnings call transcript.

Solid execution and asset performance support higher end of 2026 financial outlook$0.7 billion of new growth projects sanctioned in second quarter, totaling approximately $3 billion of low-risk, accretive growth projects announced in 2026 CALGARY, Alberta, July 30, 2026 (GLOBE NEWSWIRE) -- TC Energy Corporation (TSX, NYSE: TRP) (TC Energy or the Company) released its second quarter results today. François Poirier, TC Energy’s President and Chief Executive Officer commented, "Driven by safe and reliable operations, we delivered strong financial results in the first half of 2026 and now expect to be at the upper end of our 2026 comparable EBITDA1 outlook range of $11.6 to $11.8 billion. Our performance continues to underscore the strength of our diversified portfolio and our ability to consistently deliver low-risk, repeatable results.” Poirier continued, "Over the past six months, we have sanctioned approximately $3 billion of new growth projects across our North American natural gas portfolio, including the announcement today of three natural gas pipeline projects. Two of these projects expand our U.S. natural gas footprint and are expected to deliver a weighted average build multiple2 of approximately 5.8 times, supported by 20-year take-or-pay contracts. In Canada, the third project represents another step in expanding the NGTL System to serve growing customer demand through our Multi-Year Growth Plan (MYGP). Together, these investments reflect our disciplined approach to advancing capital-efficient, low-risk growth opportunities that create long-term value for shareholders." Financial Highlights (All financial figures are unaudited and in Canadian dollars unless otherwise noted) Second quarter 2026 financial results from continuing operations: TC Energy’s Board of Directors declared a quarterly dividend of $0.8775 per common share for the quarter ending September 30, 2026 2026 outlook: ____________________ 1 Comparable EBITDA, comparable earnings and comparable earnings per common share are non-GAAP measures used throughout this news release. These measures do not have any standardized meaning under GAAP and therefore are unlikely to be comparable to similar measures presented by other companies. The most directly comparable GAAP measures are Segmented earnings, Net income attributable to common shares and Net income per common share, respectively. We do not forecast Segmented earnings. For more information on non-GAAP measures, refer to the Non-GAAP and Supplementary financial measure section of this news release.2 Build multiple is a non-GAAP ratio calculated by dividing capital expenditures by comparable EBITDA. Weighted average build multiple is calculated across all projects based on each project's capital expenditures. Please note our method for calculating build multiple may differ from methods used by other entities. Therefore, it may not be comparable to similar measures presented by other entities. For more information on non-GAAP measures and the supplementary financial measure, refer to the Non-GAAP and Supplementary financial measure section of this news release.3 Net capital expenditures are adjusted for the portion attributed to non-controlling interests and is a supplementary financial measure used throughout this news release. For more information on non-GAAP measures and the supplementary financial measure, refer to the Non-GAAP and Supplementary financial measure section of this news release. Operational Highlights Canadian Natural Gas Pipelines deliveries averaged 24.2 Bcf/d, up one per cent compared to second quarter 2025 U.S. Natural Gas Pipelines daily average flows were 27.0 Bcf/d, up five per cent compared to second quarter 2025 Mexico Natural Gas Pipelines flows averaged 3.4 Bcf/d, lower than second quarter 2025 primarily attributed to adjustments to pipeline flows Bruce Power achieved 98.5 per cent availability in second quarter 2026, with no forced outage days in the quarter Cogeneration power plant fleet achieved 89.6 per cent availability in second quarter 2026, primarily reflecting spring planned outages. Project Highlights Sanctioned $0.7 billion of low-risk, in-corridor expansion projects including: For the six months ended June 30, 2026, we placed approximately $1.8 billion of projects into service: Advanced multiple NGTL service offerings, including the recently completed Greater Edmonton Area delivery offering, ongoing delivery opportunities for 2030–2032 across intra-Alberta markets, and the Empress/McNeill borders, representing approximately 1.0 Bcf/d of marketed delivery capacity Canadian Mainline received approval from the Canada Energy Regulator for a four-year negotiated settlement for the period from January 2027 through December 2030 Advanced U.S. rate case settlements on ANR and Great Lakes. ANR filed a settlement with FERC in May 2026, which FERC approved in July 2026, and Great Lakes filed a settlement with FERC in June 2026, for which approval is anticipated in the fourth quarter of 2026 ____________________ 1 Build multiple is a non-GAAP ratio calculated by dividing capital expenditures by comparable EBITDA. Please note our method for calculating build multiple may differ from methods used by other entities. Therefore, it may not be comparable to similar measures presented by other entities. For more information on non-GAAP measures and the supplementary financial measure, refer to the Non-GAAP and Supplementary financial measure section of this news release. Comparable funds generated from operations is a non-GAAP measure used throughout this news release. This measure does not have any standardized meaning under GAAP and therefore is unlikely to be comparable to similar measures presented by other companies. The most directly comparable GAAP measure is net cash provided by operations. For more information on non-GAAP measures, refer to the Non-GAAP and Supplementary financial measure section of this news release. Capital spending reflects cash flows associated with our Capital expenditures, Capital projects in development and Contributions to equity investments. Refer to Note 4, Segmented information of our Condensed consolidated financial statements for additional information. CEO MessageThroughout the first half of 2026, TC Energy continued to demonstrate strong execution, driven by safe and reliable operations. As a result, we delivered solid financial results and now expect to be at the upper end of our 2026 comparable EBITDA outlook range of $11.6 to $11.8 billion. For the second quarter, comparable EBITDA increased 12 per cent and segmented earnings increased 11 per cent compared to the same period in 2025, reflecting the strength of our diversified portfolio and disciplined execution. As we continue to connect energy across North America, we remain focused on maximizing the value of our assets through safety and operational excellence, while executing our selective portfolio of growth projects. These results reinforce the strength and resilience of our low-risk business model and our ability to deliver solid growth and repeatable performance. Compelling North American market fundamentals continue to reinforce our long-term growth outlook for TC Energy. Our latest natural gas demand forecast estimates approximately 51 Bcf/d of demand growth from 2025 to 2035, driven primarily by LNG exports, gas-fired power generation and industrial growth. Our incumbent position across Western Canada, the U.S. Heartland and Mexico positions us to capture this demand through low-risk, capital-efficient growth opportunities that connect competitive supply to high-quality demand markets across North America. The strength of these underlying market fundamentals continues to translate into tangible growth opportunities across our U.S. Natural Gas Pipelines business. In June 2026, we approved two expansion projects on our Columbia Gas and Columbia Gulf systems that further strengthen our position in high-growth power markets and support increasing demand from gas-fired generation including data centre development. The Central Virginia Capacity project is expected to provide up to 0.4 Bcf/d of capacity and has anticipated in-service dates of 2028 and 2030, while the Clark project is designed to provide up to 0.3 Bcf/d of capacity with an anticipated in-service date of 2028. Together, these projects represent approximately US$0.4 billion of capital investment, are backed by 20-year take-or-pay contracts and are expected to deliver a weighted average build multiple of approximately 5.8x, reflecting our disciplined approach to advancing low-risk, in-corridor expansions. In Western Canada, demand across the NGTL System footprint remains strong, with multiple delivery and receipt service offerings underway representing up to approximately 1.0 Bcf/d of incremental system throughput. Growth is being supported by emerging power generation opportunities, including data centre-related load growth, as well as industrial development, LNG demand, and oilsands expansions. These trends reinforce the strategic importance of the NGTL System in connecting Western Canadian supply to growing demand markets. Reflecting this momentum, the Greater Edmonton Area offering, launched in March 2026 for up to approximately 0.26 Bcf/d of delivery service, was fully subscribed, demonstrating robust customer demand across the system. Disciplined project execution continues to strengthen our financial position and support our long-term outlook. Year to date, we have placed approximately $1.8 billion of projects into service. In the U.S., we placed the Bison XPress project in service with a total project cost of approximately US$0.4 billion, of which our share is US$0.2 billion, strengthening Northern Border system reliability and adding up to approximately 0.3 Bcf/d of capacity to support growing regional transportation demand. On the NGTL System, the Berland River compressor unit became operational on July 14, 2026 following completion of the third-party power transmission connection. Together with the Valhalla North section, which was placed in service in the third quarter of 2025, the project provides approximately 400 MMcf/d of incremental capacity to the NGTL System. Looking ahead to the second half of 2026, we expect to place approximately $1.6 billion of capital into service, which we expect to be largely on time and on budget or better, while remaining on track to achieve our long-term target of 4.75x debt-to-EBITDA.1 Bruce Power delivered an important milestone in the quarter. Unit 3 MCR, which began refurbishment in March 2023, was declared commercially operational on June 12, 2026, ahead of schedule and within budget. Most notably among several innovations, the Unit 3 MCR marked the first time robotic tools were used on a reactor face to rebuild a CANDU reactor. Bruce Power and its partners also set a CANDU refurbishment record for calandria tube removal by completing it 11 days ahead of schedule. Unit 4 MCR continues to track on time and on budget. In addition, the Ontario IESO approved an additional $300 million in funding to advance Bruce C impact assessment and pre-development work, including First Nations and community engagement, workforce planning, and site preparation. We believe that Bruce Power’s consistent execution track record continues to position the asset to deliver stable, enduring value while meeting Ontario’s growing need for affordable, non-emitting and reliable power. Finally, we released our 2026 Report on Sustainability. The report demonstrates how sustainability is integrated into our business and supports long-term value creation through disciplined execution, measurable progress on our commitments and transparent reporting, as we navigate a changing energy landscape. Key highlights include: Delivered our strongest safety performance in five years, with continued improvement in High Energy Serious Injury and Fatality rate and zero significant process safety events, reflecting disciplined operations and risk management Reduced methane emissions intensity by 24 per cent between 2019 and 2025 while increasing natural gas throughput by 20 per cent and comparable EBITDA in our natural gas business by 57 per cent over the same period Outlined potential pathways to advance our 40 to 55 per cent methane intensity reduction target by 2035 with accountability reinforced through alignment with executive compensation Through early and ongoing Indigenous engagement, secured 36 letters of support ahead of regulatory filings as we progress various projects under our NGTL System Multi-Year Growth Plan. Together, our results through the first half of 2026 demonstrate the strength of TC Energy’s strategy, the durability of our low-risk business model and the value of our differentiated natural gas and power footprint. We remain focused on safely delivering reliable energy, executing our portfolio of growth projects, maintaining financial strength and agility, and creating long-term value for our shareholders. ____________________ 1 Debt-to-EBITDA is a non-GAAP ratio. Adjusted debt and adjusted comparable EBITDA are non-GAAP measures used to calculate debt-to-EBITDA. For more information on non-GAAP measures, refer to the non-GAAP measures of this news release. These measures do not have any standardized meaning under GAAP and therefore are unlikely to be comparable to similar measures presented by other companies. DividendsTC Energy’s Board of Directors declared a quarterly dividend of $0.8775 per common share for the quarter ending September 30, 2026, equivalent to $3.51 on an annualized basis. The common share dividend is payable on October 30, 2026, to shareholders of record at the close of business on September 29, 2026. The Board of Directors also declared dividends on the outstanding Cumulative First Preferred Shares (preferred shares). Information related to the preferred shares dividends are available on our website under TC Energy – Shareholder Information. Teleconference and WebcastWe will hold a teleconference and webcast on Thursday, July 30, 2026 at 6:30 a.m. (MT) / 8:30 a.m. (ET) to discuss our second quarter 2026 financial results. Presenters will include François Poirier, President and Chief Executive Officer; Sean O'Donnell, Executive Vice-President and Chief Financial Officer; and other members of the executive leadership team. Members of the investment community and other interested parties are invited to participate by calling 1-833-752-3826 (Canada/U.S. toll free) or 1-647-846-8864 (International toll). No passcode is required. Please dial in 15 minutes prior to the start of the call. Alternatively, participants may pre-register for the call here. Upon registering, you will receive a calendar booking by email with dial in details and a unique PIN. This process will bypass the operator and avoid the queue. Registration will remain open until the end of the conference call. A live webcast of the teleconference will be available on TC Energy's website at TC Energy — Events and presentations or via the following URL: https://www.gowebcasting.com/14394. The webcast will be available for replay following the meeting. A replay of the teleconference will be available two hours after the conclusion of the call until midnight ET on Thursday, Aug. 6, 2026. Please call 1-855-669-9658 (Canada/U.S. toll free) or 1-412-317-0088 (International toll) and enter passcode 2418450. The unaudited interim Condensed consolidated financial statements and Management’s Discussion and Analysis (MD&A) are available on our website at www.TCEnergy.com and will be filed today under TC Energy's profile on SEDAR+ at www.sedarplus.ca and with the U.S. Securities and Exchange Commission on EDGAR at www.sec.gov. About TC EnergyWe are a leader in North American energy infrastructure, spanning Canada, the U.S. and Mexico. For over 75 years, we have proudly connected the world to the energy it needs. Every day, we move more than 30 per cent of the natural gas used across the continent and connect LNG exports to global markets—powering communities and industries. Complemented by strategic ownership and low-risk investments in power generation, our infrastructure delivers affordable, reliable and sustainable energy across North America. We carry forward a legacy of nation-building energy infrastructure and strong partnerships. By working with communities, businesses and leaders across our extensive energy network, we create opportunities today and for generations to come. TC Energy’s common shares trade on the Toronto (TSX) and New York (NYSE) stock exchanges under the symbol TRP. To learn more, visit us at TCEnergy.com. Forward-Looking InformationThis release contains certain information that is forward-looking and is subject to important risks and uncertainties and is based on certain key assumptions. Forward-looking statements are usually accompanied by words such as "anticipate", "expect", "believe", "may", "will", "should", "estimate" or other similar words. Forward-looking statements in this document may include, but are not limited to, statements related to expectations with respect to expected comparable EBITDA, comparable earnings in total and per common share and the sources and drivers thereof, expectations with respect to anticipated capital expenditures and net capital expenditures and the timing thereof, expectations with respect to identified approved and future projects, including associated capital expenditures, timelines, in-service dates, and outcomes, expectations with respect to completed projects and expected impacts thereof, expectations regarding benefit-sharing or cost-sharing arrangements in respect of our power generation assets, expectations on rate case settlements and timing of approved settlement terms, expectations with respect to our ability to deploy capital at targeted build multiples and achieve expected returns on invested capital, expectations with respect to the approximate value of projects to be placed in-service in subsequent years, expectations with respect to our strategic priorities, and the execution thereof, expectation on the value of and risk profile of our incremental growth projects, expectations with respect to our ability to maximize the value of our assets through safety and operational excellence, expectations regarding financial ratio targets such as debt-to-EBITDA, expectations with respect to our environmental and sustainability targets, including our methane emissions intensity reduction target, expectations on long-term value creation, expected cost and schedules for planned projects, including projects under construction and in development, expectations about energy demand levels and drivers thereof and our ability to meet expected energy demand, expectations regarding the competitive positioning and long-term value contribution of specific assets and our ability to capture growth opportunities, expectations about our ability to execute our identified portfolio of growth projects and ensure financial strength and agility, our ability to deliver low-risk, solid growth and repeatable performance, expected industry, market and economic conditions, and ongoing trade negotiations, including their expected impact on our business, customers and suppliers. Our forward-looking information is subject to important risks and uncertainties and is based on certain key assumptions. Forward-looking statements and future-oriented financial information in this document are intended to provide TC Energy security holders and potential investors with information regarding TC Energy and its subsidiaries, including management's assessment of TC Energy's and its subsidiaries' future plans and financial outlook. All forward-looking statements reflect TC Energy's beliefs and assumptions based on information available at the time the statements were made and as such are not guarantees of future performance. As actual results could vary significantly from the forward-looking information, you should not put undue reliance on forward-looking information and should not use future-oriented information or financial outlooks for anything other than their intended purpose. We do not update our forward-looking information due to new information or future events, unless we are required to by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from the anticipated results, refer to the most recent Quarterly Report to Shareholders and the 2025 Annual Report filed under TC Energy's profile on SEDAR+ at www.sedarplus.ca and with the U.S. Securities and Exchange Commission at www.sec.gov and the "Forward-looking information" section of our Report on Sustainability which is available on our website at www.TCEnergy.com. Non-GAAP and Supplementary Financial MeasureThis release contains references to the following non-GAAP measures: comparable EBITDA, comparable earnings, comparable earnings per common share and comparable funds generated from operations. It also contains references to debt-to-EBITDA, a non-GAAP ratio, which is calculated using adjusted debt and adjusted comparable EBITDA, each of which are non-GAAP measures. These non-GAAP measures do not have any standardized meaning as prescribed by GAAP and therefore may not be comparable to similar measures presented by other entities. These non-GAAP measures are calculated by adjusting certain GAAP measures for specific items we believe are significant but not reflective of our underlying operations in the period. These comparable measures are calculated on a consistent basis from period to period and are adjusted for specific items in each period, as applicable except as otherwise described in the Condensed consolidated financial statements and MD&A. Refer to: (i) each business segment for a reconciliation of comparable EBITDA to segmented earnings (losses); (ii) Consolidated results section for reconciliations of comparable earnings and comparable earnings per common share to Net income attributable to common shares and Net income per common share, respectively; and (iii) Financial condition section for a reconciliation of comparable funds generated from operations to Net cash provided by operations. Refer to the Non-GAAP Measures section of the MD&A in our most recent quarterly report for more information about the non-GAAP measures we use. The MD&A is included with, and forms part of, this release. The MD&A can be found on SEDAR+ at www.sedarplus.ca under TC Energy's profile. With respect to non-GAAP measures used in the calculation of debt-to-EBITDA, adjusted debt is defined as the sum of Reported total debt, including Notes payable, Long-term debt, Current portion of long-term debt and Junior subordinated notes, as reported on our Consolidated balance sheet as well as Operating lease liabilities recognized on our Consolidated balance sheet and 50 per cent of Preferred shares as reported on our Consolidated balance sheet due to the debt-like nature of their contractual and financial obligations, less Cash and cash equivalents as reported on our Consolidated balance sheet and 50 per cent of Junior subordinated notes as reported on our Consolidated balance sheet due to the equity-like nature of their contractual and financial obligations. Adjusted comparable EBITDA is calculated as the sum of comparable EBITDA from continuing operations and comparable EBITDA from discontinued operations excluding Operating lease costs recorded in Plant operating costs and other in our Consolidated statement of income and adjusted for Distributions received in excess of (income) loss from equity investments and a Loan from affiliate as reported in our Consolidated statement of cash flows which we believe is more reflective of the cash flows available to TC Energy to service our debt and other long-term commitments. Beginning in 2025, we entered into a subordinated demand revolving credit facility to borrow funds from the Sur de Texas joint venture and received proceeds totaling $111 million during the year. We believe that debt-to-EBITDA provides investors with useful information as it reflects our ability to service our debt and other long-term commitments. See the Reconciliation section for reconciliations of adjusted debt and adjusted comparable EBITDA for the years ended Dec. 31, 2023, 2024 and 2025. This release contains references to build multiple, which is non-GAAP ratio which is calculated using capital expenditures and comparable EBITDA, of which comparable EBITDA is a non-GAAP measure. We believe build multiple provides investors with a useful measure to evaluate capital projects. This release also contains references to net capital expenditures, which is a supplementary financial measure. Net capital expenditures represent capital costs incurred for growth projects, maintenance capital expenditures, contributions to equity investments and projects under development, adjusted for the portion attributed to non-controlling interests in the entities we control. Net capital expenditures reflect capital costs incurred during the period, excluding the impact of timing of cash payments. We use net capital expenditures as a key measure in evaluating our performance in managing our capital spending activities in comparison to our capital plan. ReconciliationThe following is a reconciliation of adjusted debt and adjusted comparable EBITDA1. Adjusted debt and adjusted comparable EBITDA are non-GAAP measures. The calculations are based on management methodology. Individual rating agency calculations will differ. 50 per cent debt treatment on $2.3 billion of preferred shares as of Dec. 31, 2025. 50 per cent equity treatment on $12.1 billion of junior subordinated notes as of Dec. 31, 2025. U.S. dollar-denominated notes translated at Dec. 31, 2025, USD/CAD foreign exchange rate of 1.37. Comparable EBITDA from continuing operations and Comparable EBITDA from discontinued operations are non-GAAP financial measures. See the Forward-looking information and Non-GAAP measures sections in our 2025 Annual Report for more information. Comparable EBITDA from discontinued operations represents nine months of Liquids Pipelines earnings in 2024 compared to a full year of earnings in 2023. Refer to the Discontinued operations section in our 2024 Annual Report for additional information. Download full report here: tcenergy.com/siteassets/pdfs/investors/reports-and-filings/annual-and-quarterly-reports/2026/tce-2026-q2-quarterly-report.pdf Media Inquiries:Media [email protected] or 800.608.7859 Investor & Analyst Inquiries:            Investor [email protected] or 800.361.6522

TC Energy (TRP) came out with quarterly earnings of $0.68 per share, beating the Zacks Consensus Estimate of $0.61 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.48%. A quarter ago, it was expected that this energy infrastructure company would post earnings of $0.7 per share when it actually produced earnings of $0.72, delivering a surprise of +2.86%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. TC Energy, which belongs to the Zacks Alternative Energy - Other industry, posted revenues of $2.86 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.13%. This compares to year-ago revenues of $2.71 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. TC Energy shares have added about 22.3% since the beginning of the year versus the S&P 500's gain of 6.9%. While TC Energy has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for TC Energy was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.60 on $2.74 billion in revenues for the coming quarter and $2.74 on $11.39 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Alternative Energy - Other is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Enlight Renewable Energy Ltd. (ENLT), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This company is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of +600%. The consensus EPS estimate for the quarter has been revised 2.9% lower over the last 30 days to the current level. Enlight Renewable Energy Ltd.'s revenues are expected to be $188.39 million, up 39.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TC Energy Corporation (TRP) : Free Stock Analysis Report Enlight Renewable Energy Ltd. (ENLT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The oil and energy sector enters the second-quarter 2026 earnings season after a quarter shaped by heightened geopolitical tensions, supply disruptions and sharp swings in commodity prices. The conflict involving Iran tightened global oil supplies, lifting crude prices and creating a supportive backdrop for many exploration, production and oilfield service companies. At the same time, resilient demand from LNG exports and power generation added to the industry's momentum. While favorable commodity prices are expected to support revenues and profitability, company-specific factors such as production levels, operating costs and regional exposure are likely to influence individual results. With most energy companies yet to report, investors are watching closely to see which stocks can capitalize on the volatile market environment and deliver earnings that exceed expectations. The second quarter of 2026 unfolded against a backdrop of intense geopolitical volatility, as Middle East supply disruptions, a short-lived mid-June easing in oil prices due to diplomatic breakthroughs, and shifting OPEC+ strategies shaped energy markets. During the second quarter of 2026, West Texas Intermediate (WTI) crude averaged $95.75 per barrel, considerably higher than $64.63 in the same period last year. Given oil’s sensitivity to geopolitical risks, supply shocks and macroeconomic trends, this increase reflects tightening global supply conditions following the Middle East conflict and the disruption of flows through the Strait. Brent crude rose more sharply than WTI, largely because it tends to react more strongly to Middle East shipping risk as it is tied more closely to seaborne crude markets. However, natural gas prices slumped, with Henry Hub averaging $2.95 per million British thermal units (MMBtu) versus $3.19 a year earlier. Natural gas prices declined year over year in the second quarter of 2026 due to robust domestic production, comfortable storage inventories and mild spring weather following an earlier winter spike. The oil and energy sector enters the second-quarter 2026 earnings season with expectations of a sharp rebound, supported by a stronger commodity price environment, disciplined capital spending and resilient upstream performance. According to the latest Zacks Earnings Trends report, roughly 12.5% of companies in the sector have reported, and the initial performance has been notably strong. When incorporating both reported numbers and forward estimates to form the sector’s blended outlook, the sector's second-quarter earnings are projected to increase 126.9% year over year, marking one of the strongest earnings growth rates among all S&P 500 sectors and outstandingly above the prior year’s growth of just 3.6%. Revenues are expected to rise 16.7%, significantly outpacing the broader market's projected 12% growth, reflecting improved pricing dynamics and healthy demand across much of the energy value chain. In light of this context, let’s explore how the following oil and energy companies are shaping up ahead of their second-quarter earnings reports on July 30 and how they’re poised to tackle the challenges they face. Our proprietary model indicates that a company needs to have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Let’s explore four prominent companies and evaluate how they are positioned before their second-quarter earnings release. TechnipFMC plc FTI is slated to report second-quarter results before the market opens. In the last reported quarter, the company’s adjusted earnings per share of 64 cents beat the Zacks Consensus Estimate of 57 cents. FTI beat the earnings estimates in each of the trailing four quarters, delivering an average surprise of 21.1%. This is depicted in the chart below: TechnipFMC plc price-eps-surprise | TechnipFMC plc Quote Our proven model does not conclusively predict an earnings beat for TechnipFMC this time around. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for FTI’s second-quarter earnings and revenues is pegged at 80 cents per share and $2.7 billion, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here. On the other hand, Pembina Pipeline Corporation PBA is scheduled to report quarterly earnings after market close. Our proven model does not conclusively predict an earnings beat for Pembina Pipeline this time around. This is because it has an Earnings ESP of -9.28% and a Zacks Rank #4 (Sell) at present. The Zacks Consensus Estimate for Pembina Pipeline’s second-quarter earnings is pegged at 49 cents per share, indicating 4.3% growth from the prior-year reported figure. PBA beat the earnings estimates in two of the trailing four quarters, missed in one and was in line in one, delivering an average negative surprise of 1.4%. This is depicted in the chart below: Pembina Pipeline Corp. price-eps-surprise | Pembina Pipeline Corp. Quote TC Energy Corporation TRP is scheduled to report quarterly earnings before the market opens. Our proven model predicts an earnings beat for TC Energy this time around. This is because it has an Earnings ESP of +3.80% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for TC Energy’s second-quarter earnings is pegged at 59 cents per share, indicating flat performance from the prior-year reported figure. TRP’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 4%. This is depicted in the chart below: TC Energy Corporation price-eps-surprise | TC Energy Corporation Quote Finally, Shell plc SHEL is scheduled to report quarterly earnings before the market opens. Our proven model does not predict an earnings beat for Shell this time around. This is because it has an Earnings ESP of +6.79% and a Zacks Rank #4 at present. The Zacks Consensus Estimate for SHEL’s second-quarter earnings is pegged at $3.02 per ADS, indicating a 112.7% rise from the prior-year reported figure. SHEL’s earnings beat the Zacks Consensus Estimate thrice in the last four quarters while missing once, delivering an average surprise of 14.5%. This is depicted in the chart below: Shell PLC Unsponsored ADR price-eps-surprise | Shell PLC Unsponsored ADR Quote Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TechnipFMC plc (FTI) : Free Stock Analysis Report TC Energy Corporation (TRP) : Free Stock Analysis Report Pembina Pipeline Corp. (PBA) : Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research