Group 1 - TC Energy predicts that Canada may become the largest liquefied natural gas (LNG) exporter to Asia [1]

分组1 - TC Energy reported quarterly earnings of $0.59 per share, exceeding the Zacks Consensus Estimate of $0.56 per share, but down from $0.69 per share a year ago, representing an earnings surprise of +5.36% [1] - The company posted revenues of $2.71 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 6.15%, compared to year-ago revenues of $2.99 billion [2] - Over the last four quarters, TC Energy has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] 分组2 - The stock has added about 1.1% since the beginning of the year, underperforming the S&P 500's gain of 8.2% [3] - The current consensus EPS estimate for the coming quarter is $0.60 on revenues of $2.65 billion, and for the current fiscal year, it is $2.58 on revenues of $10.65 billion [7] - The Zacks Industry Rank for Alternative Energy - Other is currently in the bottom 35% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - Total revenues for the three months ended June 30, 2025, increased to CAD 3,744 million, up 12.5% from CAD 3,327 million in the same period of 2024[1] - Net income attributable to common shares for the three months ended June 30, 2025, was CAD 833 million, a decrease of 13.5% compared to CAD 963 million in the same period of 2024[1] - Comprehensive income attributable to controlling interests for the six months ended June 30, 2025, was CAD 1,348 million, down from CAD 2,625 million in the same period of 2024[5] - For the three months ended June 30, 2025, net income attributable to controlling interests was CAD 861 million, a decrease of 13.0% from CAD 990 million in the same period of 2024[14] - For the six months ended June 30, 2025, total revenues were CAD 7,367 million, compared to CAD 6,836 million in 2024, indicating a year-over-year increase of 7.8%[56][58] Operational Metrics - Cash generated from operations for the six months ended June 30, 2025, was CAD 3,532 million, down 4.5% from CAD 3,697 million in the same period of 2024[7] - Operating costs for Q2 2025 were CAD 1,449 million, compared to CAD 1,331 million in Q2 2024, an increase of 8.9%[37] - Capital expenditures for the first half of 2025 totaled CAD 2,669 million, up from CAD 2,868 million in the same period of 2024, indicating a decrease of 6.9%[44] - The company reported a net income from continuing operations of CAD 2,177 million for the first half of 2025, compared to CAD 2,172 million in the same period of 2024, reflecting a marginal increase[44] Assets and Liabilities - Total assets as of June 30, 2025, were CAD 116,837 million, a decrease from CAD 118,243 million as of December 31, 2024[11] - Long-term debt as of June 30, 2025, was CAD 43,340 million, slightly down from CAD 44,976 million as of December 31, 2024[11] - The accumulated deficit increased to CAD (5,741) million as of June 30, 2025, compared to CAD (2,839) million at the end of June 2024[14] - Total equity decreased to CAD 37,380 million as of June 30, 2025, down from CAD 40,494 million at the end of June 2024[14] Discontinued Operations - The company reported a net loss from discontinued operations of CAD 29 million for the three months ended June 30, 2025, compared to a net income of CAD 159 million in the same period of 2024[1] - Revenues from discontinued operations were CAD 0 for the three months ended June 30, 2025, compared to CAD 758 million in the same period of 2024[31] - Cash provided by operations from discontinued operations was CAD 3 million for the three months ended June 30, 2025, down from CAD 223 million in the same period of 2024[34] Dividends and Shareholder Returns - The company declared dividends on common shares amounting to CAD 883 million for the three months ended June 30, 2025, down from CAD 996 million in the same period of 2024[7] - The company declared a quarterly dividend of CAD 0.85 per common share for the three months ended June 30, 2025, down from CAD 0.96 in 2024[72] Investment and Financing Activities - The company’s net cash used in investing activities for the six months ended June 30, 2025, was CAD 3,222 million, compared to CAD 3,538 million in the same period of 2024[7] - Long-term debt issued in the first half of 2025 included CAD 1,000 million in medium-term notes at an interest rate of 4.58% and US$1 billion in senior unsecured notes with rates of 5.44% and 5.96%[66] - Long-term debt repaid during the same period included US$1,000 million in senior unsecured notes at an interest rate of 4.50%[67] Other Comprehensive Income - For the three months ended June 30, 2025, the company reported an Other Comprehensive Loss of CAD 1,058 million, primarily due to foreign currency translation losses of CAD 1,049 million[74] - The six months ended June 30, 2025 also saw an Other Comprehensive Loss of CAD 1,106 million, with significant contributions from foreign currency translation losses of CAD 1,090 million[77] - The company’s total Other Comprehensive Income (Loss) for the three months ended June 30, 2025, included a reclassification of CAD 38 million from AOCI[80] Risk Management - The company has implemented strategies to manage market risk and counterparty credit risk, which are critical for maintaining shareholder value[84] - The company recorded an expected credit loss (ECL) provision expense of CAD 106 million for the three months ended June 30, 2025, compared to a recovery of CAD 3 million in the same period of 2024[88] - As of June 30, 2025, the balance of the ECL provision was CAD 163 million, a significant increase from CAD 59 million at December 31, 2024[89] Legal and Regulatory Matters - Coastal GasLink LP claims damages of approximately $560 million against Macro Spiecapag Coastal GasLink Joint Venture for delays and costs, while MSJV counterclaims for $480 million[143] - TC Energy's allocated share of damages from the Columbia Pipeline Acquisition lawsuit is estimated at $350 million, but the Delaware Supreme Court reversed the liability finding against TC Energy[145] - The carrying value of guarantees related to Bruce Power and Sur de Texas pipelines is included in Other long-term liabilities, with potential exposure totaling CAD 227 million as of June 30, 2025[149]

Core Insights - TC Energy Corporation has reported a strong second quarter for 2025, with an increase in comparable EBITDA and segmented earnings, leading to an upward revision of its 2025 financial outlook to a range of $10.8 to $11.0 billion [1][8] - The company has announced $4.5 billion in new growth projects over the past nine months to meet increasing customer demand for natural gas infrastructure [1][13] - Operational excellence and safety remain a priority, with the company tracking approximately 15% below budget on capital projects expected to be placed into service this year [1][12] Financial Highlights - Comparable earnings for Q2 2025 were $0.8 billion or $0.82 per common share, compared to $0.8 billion or $0.79 per common share in Q2 2024 [4] - Net income attributable to common shares was $0.9 billion or $0.83 per common share, up from $0.8 billion or $0.78 per common share in Q2 2024 [4] - Comparable EBITDA for Q2 2025 was $2.6 billion, an increase from $2.3 billion in Q2 2024 [4] Operational Highlights - Canadian Natural Gas Pipelines deliveries averaged 23.4 Bcf/d, a 5% increase compared to Q2 2024 [4] - The NGTL System set a new record with receipts of 15.5 Bcf on April 13, 2025 [4] - Bruce Power achieved 98% availability in Q2 2025, while the cogeneration power plant fleet achieved 93.4% availability [4] Project Highlights - The Southeast Gateway pipeline is now in service, with toll collection from the Comisión Federal de Electricidad (CFE) starting in May 2025 [9] - The East Lateral XPress project was placed in service in May 2025, enhancing capacity to U.S. Gulf Coast LNG export markets [12] - A positive final investment decision (FID) was reached on $0.4 billion of expansion projects as part of the Multi-Year Growth Plan, with in-service dates expected in 2027 [6][13] Strategic Outlook - The company maintains a disciplined strategy focused on low-risk, high-value opportunities across North America, with a commitment to annual net capital expenditures of $6.0 to $7.0 billion [14] - The ongoing demand for natural gas infrastructure is driven by LNG exports, coal-to-gas conversions, and data center developments [13] - TC Energy aims for a 3% to 5% annual dividend growth target while managing to a long-term debt-to-EBITDA ratio of 4.75 times [14]

Core Viewpoint - TC Energy Corporation will hold a teleconference and webcast on July 31, 2025, to discuss its second quarter financial results [1][2]. Group 1: Teleconference Details - The teleconference will feature TC Energy's President and CEO François Poirier, CFO Sean O'Donnell, and other executive leadership team members discussing financial results and company developments at 6:30 a.m. MT / 8:30 a.m. ET [2]. - Participants can join the call by dialing 1-833-752-3826 (Canada/U.S. toll free) or 1-647-846-8864 (International toll) without a passcode, and are encouraged to call in 15 minutes prior to the start [3]. - A live webcast will be available on TC Energy's website, and a replay of the teleconference will be accessible two hours after the call until midnight ET on August 7, 2025 [4]. Group 2: Company Overview - TC Energy is a team of over 6,500 energy problem solvers, specializing in connecting the world to necessary energy through a unique network of natural gas infrastructure assets [5]. - The company operates in moving, generating, and storing energy, delivering it to homes and businesses in North America and globally through LNG exports, complemented by strategic ownership in power generation [5]. - TC Energy's common shares are traded on the Toronto (TSX) and New York (NYSE) stock exchanges under the symbol TRP [6].

Core Insights - TC Energy Corporation has begun collecting tolls from the Comisión Federal de Electricidad (CFE) for the Southeast Gateway pipeline and has received timely payment for May [1] - The Southeast Gateway pipeline, with a capacity of 1.3 Bcf/d and spanning 715 kilometers, was completed approximately 13% under the original cost estimate of US$3.9 billion [2][8] - The successful completion of the pipeline demonstrates the commitment of TC Energy, CFE, and the Ministry of Energy (SENER) to support Mexico's growing energy demands and economic development [3] - The Mexican government plans to add around 8.5 gigawatts of new capacity from natural gas power plants, positioning the Southeast Gateway pipeline as a crucial asset in this initiative [4] Company Overview - TC Energy operates a vast network of natural gas infrastructure, employing over 6,500 energy professionals to connect global energy needs [5] - The company is involved in moving, generating, and storing energy, delivering it to homes and businesses across North America and through LNG exports [5] - TC Energy's common shares are traded on the Toronto (TSX) and New York (NYSE) stock exchanges under the symbol TRP [6]

Core Points - TC Energy Corporation announced the conversion of 104,778 Series 3 Shares into Series 4 Shares and 1,822,829 Series 4 Shares into Series 3 Shares, effective June 30, 2025 [1][2] - Following the conversions, TC Energy will have 11,715,228 Series 3 Shares and 2,284,772 Series 4 Shares outstanding, both listed on the Toronto Stock Exchange [2] - Series 3 Shares will pay a fixed dividend of 4.102% annually for five years starting June 30, 2025, while Series 4 Shares will pay a floating dividend starting at 3.924% for the first quarter [2][3] - Shareholders will have the option to convert their shares again on July 2, 2030, and every five years thereafter [4] Company Overview - TC Energy operates a vast network of natural gas infrastructure and is involved in energy generation and storage, serving homes and businesses in North America and globally through LNG exports [5] - The company's common shares are traded on both the Toronto Stock Exchange and the New York Stock Exchange under the symbol TRP [6]

Group 1: Oil Price Volatility - Crude oil prices have experienced significant fluctuations in 2025, starting with WTI at $72 per barrel and Brent at $75, before dropping over 10% due to fears of a global recession, increased OPEC+ output, and weakening demand from China [1][10] - Macroeconomic pressures, such as slowing global growth and disappointing trade data from China, are negatively impacting demand, while OPEC+ has ramped up production unexpectedly [3][10] - Geopolitical factors, including U.S.-China trade talks, continue to influence short-term oil price movements [3][4] Group 2: Investment Opportunities in Energy Stocks - Large-cap, high-yield energy stocks like Canadian Natural Resources Limited (CNQ), Kinder Morgan (KMI), and TC Energy Corporation (TRP) are recommended for stability amid market volatility, offering steady dividend payouts and operational resilience [2][5][6] - These companies, valued at over $10 billion, provide dependable cash flows and resilient business models, making them attractive for income-focused investors [5][6][8] Group 3: Company Profiles - **Canadian Natural Resources (CNQ)**: One of Canada's largest independent oil and gas producers with a market capitalization of approximately $66 billion, CNQ has a quarterly dividend payout of 58.75 Canadian cents, yielding 5.2% annually [11][12][13] - **Kinder Morgan (KMI)**: A major energy infrastructure company with a market cap of around $63 billion, KMI operates extensive pipelines and storage facilities, offering a quarterly dividend of 29.25 cents, resulting in a 4.2% yield [14][15] - **TC Energy (TRP)**: A leading energy infrastructure firm with a market cap of about $53 billion, TRP operates a significant natural gas pipeline network and pays a quarterly dividend of 85 Canadian cents, yielding 4.7% [16][17]

Core Viewpoint - TC Energy Corporation will not redeem its Cumulative Redeemable First Preferred Shares, Series 3 and Series 4 on June 30, 2025, allowing shareholders to choose between retaining their shares or converting them to the other series with different dividend rates [1][2]. Summary by Category Dividend Rates - Holders of Series 3 Shares can retain their shares and receive a fixed annual dividend rate of 4.102% for the period from June 30, 2025, to July 2, 2030 [1]. - Holders of Series 4 Shares can retain their shares and receive a floating quarterly dividend rate of 3.924% for the three-month period starting June 30, 2025, with the rate reset every quarter [2]. Conversion Options - Series 3 Shareholders can convert their shares to Series 4 Shares and receive the floating quarterly dividend rate of 3.924% [1]. - Series 4 Shareholders can convert their shares to Series 3 Shares and receive the fixed quarterly dividend rate of 4.102% [2]. Conversion Process - Beneficial owners must communicate with their broker by 5 p.m. (EST) on June 16, 2025, to exercise their conversion rights [3]. - If no notice is provided by the deadline, shareholders will retain their respective shares and receive the applicable new dividend rate [4]. Conditions for Conversion - If TC Energy determines that there will be less than one million Series 3 Shares outstanding after June 30, 2025, all remaining Series 3 Shares will convert to Series 4 Shares on a one-for-one basis [5]. - Conversely, if there are less than one million Series 4 Shares outstanding, all remaining Series 4 Shares will convert to Series 3 Shares on a one-for-one basis [5]. Future Conversion Opportunities - Holders of Series 3 and Series 4 Shares will have the opportunity to convert their shares again on July 2, 2030, and every five years thereafter as long as the shares remain outstanding [6].

Group 1 - Canadian pipeline investors have two major options: TC Energy Corporation and Enbridge Inc, both headquartered in Calgary, Alberta, Canada [1] - TC Energy Corporation trades under the symbol TRP, while Enbridge Inc trades under the symbol ENB on American exchanges [1] Group 2 - Robert F. Abbott has been managing investments since 1995 and has experience with options trading since 2010 [2] - Abbott is a freelance writer and has created a website aimed at new and intermediate mutual fund investors [2] - He holds a Bachelor of Arts and a Master of Business Administration (MBA) degree [2]