TC Energy Beats on Q4 Earnings & Revenues, Raises Dividend

Core Insights - TC Energy Corporation (TRP) reported fourth-quarter 2024 adjusted earnings of 75 cents per share, exceeding the Zacks Consensus Estimate of 68 cents, driven by strong performance in Mexico Natural Gas Pipelines and Power and Energy Solutions segments [1] - However, the earnings decreased from 99 cents in the same quarter last year, attributed to weak results in Canadian and U.S. Natural Gas Pipelines segments [2] Financial Performance - Quarterly revenues reached $2.6 billion, surpassing the Zacks Consensus Estimate by$130 million, but decreased by 17.8% year over year [3] - Comparable EBITDA was C$2.6 billion, slightly down from C$2.7 billion in the previous year [3] Dividend Declaration - The board declared a quarterly dividend of 85 Canadian cents per common share for the quarter ending March 31, 2025, representing a 3.3% increase from the previous quarter, bringing the annualized dividend to C$3.40 per share [4] Segment Performance - Canadian Natural Gas Pipelines reported a comparable EBITDA of C$851 million, down 17.7% year over year, primarily due to lower earnings from Coastal GasLink [6] - U.S. Natural Gas Pipelines reported a comparable EBITDA of C$1 billion, a 2$234 million, up 12.5% year over year, driven by higher equity earnings from Sur de Texas [9] - Power and Energy Solutions registered a comparable EBITDA of C$341 million, up 28.2$2.3 billion, with cash and cash equivalents of C$2.6 billion and long-term debt of C$45 billion, resulting in a debt-to-capitalization ratio of 60% [12] 2025 Guidance - The company expects comparable EBITDA for 2025 to range from C$10.7 billion to C$10.9 billion, driven by new projects and full-year contributions from projects placed in service in 2024 [13] - Anticipated CapEx for 2025 is between C$6.1 billion and C$6.6 billion on a gross basis [16] Key Developments - The spinoff of the Liquids Pipelines business was completed on October 1, 2024 [17] - The Southeast Gateway pipeline project achieved mechanical completion on January 20, 2025, with an in-service date targeted for May 1, 2025 [17] - The Coastal GasLink pipeline was declared commercial in-service in November 2024 [18]