Financial Data and Key Metrics Changes - Comparable EBITDA increased by 10% year over year, reaching $2.7 billion in the third quarter [34] - The company expects 2025 net capital expenditures to be at the low end of the $5.5 billion-$6 billion range, with a long-term target of 4.75 times debt to EBITDA [7][36] - The company reaffirmed its 2025 outlook for comparable EBITDA growth of 7%-9% from 2024 to 2025 [36] Business Line Data and Key Metrics Changes - The natural gas pipelines segment saw a 13% increase in EBITDA, while the power and energy solutions segment experienced an 18% reduction [34] - Bruce Power achieved 94% availability, aligning with the expected annual availability in the low 90% range for full year 2025 [34] - The U.S. natural gas business recorded a 15% increase in LNG flows, setting a new peak delivery record of 4 bcf per day [32] Market Data and Key Metrics Changes - In Canada, natural gas demand from power generation has increased by 80% over the past five years [15] - The Mexican government plans to add 8 gigawatts of new installed natural gas capacity by 2030, with TC Energy's assets positioned to support this growth [9] - The natural gas forecast has been revised 5 bcf a day higher, anticipating a 45 bcf a day increase in demand by 2035 [9] Company Strategy and Development Direction - The company is focused on low-risk, high-return growth, emphasizing brownfield in-corridor expansions [11][41] - A disciplined approach to capital allocation is maintained, ensuring investments maximize returns and long-term value for shareholders [12][41] - The company is leveraging technological innovations and operational excellence to enhance project execution and capital efficiency [21][23] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the supportive regulatory environment across North America, which is expected to facilitate project delivery [8] - The company anticipates continued strong performance driven by increasing demand for natural gas and power generation [36][41] - Management highlighted the importance of human capital and execution excellence in maintaining growth momentum [46][70] Other Important Information - The company sanctioned $5.1 billion in new projects over the last 12 months, with a weighted average build multiple of 5.9 times [6][12] - The company is the only midstream operator with significant interest in nuclear power generation, positioning it uniquely in the energy market [10][14] Q&A Session Summary Question: Long-term EBITDA growth trajectory - Management indicated that if current return levels are maintained, mid-single-digit CAGR growth could continue beyond 2028 [44] Question: Potential for increased capital expenditure - Management stated that while the current target is $6 billion, there may be opportunities to exceed this level depending on project execution and market conditions [46] Question: Size and complexity of projects - Management noted that projects are becoming larger but remain straightforward, with average project sizes around $500 million [52] Question: Project backlog and capacity - Management confirmed that they have not turned down any projects due to capital constraints and expect to maintain a robust project backlog [55] Question: Strategic decision to focus on transmission - Management explained that focusing on transmission allows for lower-risk, compelling returns while meeting the needs of utility customers [59]

Financial Data and Key Metrics Changes - Comparable EBITDA increased by 10% year-over-year, reaching $2.7 billion in the third quarter [31] - The company expects 2025 net capital expenditures to be at the low end of the $5.5 billion-$6 billion range, with a long-term target of 4.75x debt to EBITDA [7][39] - The company generated over $5 billion in new high-quality executable projects sanctioned over the last 12 months [10][12] Business Line Data and Key Metrics Changes - The U.S. natural gas business saw LNG flows increase by 15% this quarter, setting a new peak delivery record of 4 bcf per day [30] - Bruce Power achieved 94% availability, contributing to the overall performance of the power and energy solutions segment [31] - EBITDA from the natural gas pipelines network increased by 13%, while the power and energy solutions segment saw an 18% reduction [31] Market Data and Key Metrics Changes - Natural gas demand from power generation in Alberta increased by 80% over the past five years [14] - The company is positioned to supply 20% of Mexico's gas-to-power plants and will feed 80% of new public tender natural gas generation projects entering service over the next five years [15] - The natural gas forecast has been revised 5 bcf a day higher, now calling for a 45 bcf a day increase in natural gas demand by 2035 [9] Company Strategy and Development Direction - The company is focused on maximizing asset value through safety and operational excellence while leveraging commercial and technological innovation [39] - The strategy includes prioritizing low-risk, high-return growth and maintaining financial strength and agility [39] - The company aims to capitalize on the growing demand for power generation and data centers, with a pipeline of origination opportunities exceeding 7 billion cu ft per day [17] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the supportive regulatory environment in Canada and the U.S., which is expected to streamline project delivery [8] - The company anticipates continued strong performance with year-over-year growth of 6%-8% expected in 2026 [33] - Management highlighted the importance of human capital and execution excellence in maintaining project performance [44][66] Other Important Information - The company has sanctioned an additional $5.1 billion of primarily brownfield projects, predominantly in the U.S. natural gas pipeline business unit [35] - The company is leveraging AI and technology to enhance operational efficiency and reduce emissions [20][21] - The Bruce Power Major Component Replacement program is expected to extend reactor life until at least 2064, improving availability and financial results [24][28] Q&A Session Summary Question: Long-term EBITDA growth trajectory - Management indicated that if current return levels remain, mid-single-digit CAGR growth could be sustained beyond 2028 [41][42] Question: Potential for increased capital expenditure - Management stated that while the current target is $6 billion, there may be opportunities to scale up if project execution remains strong and human capital is sufficient [43][44] Question: Size and complexity of projects - Management clarified that while projects are becoming larger, they remain straightforward in execution, with an average project size around $500 million [49][50] Question: Project backlog and capacity - Management confirmed that they have not turned down any projects due to capital constraints and expect to grow their backlog alongside EBITDA growth [51][53] Question: Strategic decision to focus on transmission - Management explained that focusing on transmission allows for lower-risk, compelling returns while meeting the needs of utility customers [57] Question: Status of Bruce C project - Management reported progress towards FID for Bruce C, with ongoing assessments and funding discussions [58][60] Question: Rate cases and potential toll increases - Management confirmed that several rate cases are in process, with conservative estimates included in forecasts [63] Question: Challenges with contractors and market pressures - Management noted that while industry backlogs are building, they have not faced material impacts yet and are actively monitoring suppliers [64][66]

Core Viewpoint - The company emphasizes the importance of its pipeline construction, driven by both upstream natural gas resource increases and downstream market development, to enhance energy security and reliability in the region [2] Group 1: Pipeline Construction and Development - The pipeline project from Yulin to Xi'an aims to connect new gas sources and fill the pipeline gap in eastern Shaanxi, expanding market demand along the route [2] - The project is expected to improve interconnectivity and flexibility in gas source allocation across the Guanzhong region and the entire province [2] - Continuous advancement of this project is deemed essential for implementing provincial energy development plans and ensuring long-term energy security [2]

Core Insights - The completion of the Turpan to Zhongwei section of the West-to-East Gas Pipeline Phase IV and the main welding of the Hulin-Changchun natural gas pipeline marks a significant advancement in China's energy infrastructure [1] - The country's natural gas transmission capacity has surpassed 400 billion cubic meters, indicating a substantial enhancement in pipeline gas transmission capabilities [1] - By 2025, over 2,000 kilometers of new pipelines are expected to be constructed, adding 25 billion cubic meters of transmission capacity, in line with the 14th Five-Year Plan's target of 16,500 kilometers [1] - Since the beginning of the 14th Five-Year Plan, more than 13,000 kilometers of oil and gas pipelines have been built, bringing the total length to over 190,000 kilometers, with daily gas supply capacity reaching 1.11 billion cubic meters [1] - A comprehensive national gas network is being established, connecting east to west and north to south, as well as linking to overseas sources [1]

Core Points - The Shandong Provincial Development and Reform Commission has issued the "Shandong Natural Gas Pipeline Transportation Price Management Measures," transitioning the pricing management from fixed standards to a mechanism-based approach to promote high-quality development in the industry [1][2] - The new pricing management will implement a maximum price limit for natural gas pipeline transportation, with three pricing models based on different pipeline types: "same network same price" for provincial main pipelines, "same enterprise same price" for inter-city pipelines, and "same city same price" for intra-city pipelines [1][2] Pricing Model Changes - Previously, the pricing model for natural gas pipeline transportation was based on "one line one price" or "one enterprise one price," but the new measures introduce a standardized pricing approach for provincial main pipelines and adjust the pricing model for intra-city pipelines [2] - Cities will select representative enterprises based on load rates and gas transmission volumes to determine local benchmark prices, with participating enterprises adhering to these benchmark prices while non-participating enterprises will have their prices calculated based on specific rules [2] - Cities with similar benchmark price levels will be grouped into the same pricing zone, and both inter-city and intra-city pipelines within that zone will follow the benchmark pricing policy [2] Transitional Measures - For existing pipeline operating enterprises that experience significant price adjustments under the benchmark pricing policy, a reasonable transition period will be established, not exceeding one regulatory cycle (3 years) [2] - The pricing method will be based on "permitted costs + reasonable returns," determining the maximum allowable income by assessing permitted costs, regulatory permitted returns, and tax factors [2]

Company Overview - The company is a Hong Kong-based investment holding firm engaged in oil and gas-related businesses, operating through four main segments: crude oil trading, crude oil terminal services, ship leasing services, and natural gas pipeline transportation services [9]. Financial Performance - The company's revenue and net profit growth rates have shown fluctuations over the years, with significant changes noted in the first half of 2025 [11][16]. - In the first half of 2025, the average return on equity was 3.5%, a decrease of 0.88 percentage points compared to the same period last year [21]. Revenue Composition - The revenue composition for the first half of 2025 indicates a total revenue of 3.075 billion HKD from crude oil terminal and storage services [13][14]. - The revenue growth rates for the years 2021 to 2025 show varying trends, with specific attention to the changes in revenue and net profit [11][14]. Asset and Liability Changes - As of the first half of 2025, significant changes in assets include a 2.53% decrease in long-term equity investments and a 252.74% increase in receivables [28]. - On the liabilities side, there was a 248.2% increase in payables, indicating a shift in the company's financial structure [32]. Financial Ratios - The company reported a current ratio of 15.15 and a quick ratio of 15.14 in the first half of 2025, reflecting a strong liquidity position [35]. - The historical asset-liability ratio has shown a downward trend, with the latest figure being 2.33% [34].

Core Viewpoint - The National Development and Reform Commission and the National Energy Administration have issued guidelines to improve the pricing mechanism for domestic natural gas pipeline transportation, aiming to enhance regulatory oversight and operational efficiency in the industry [1][2]. Group 1: Pricing Mechanism - The pricing for domestic natural gas pipeline transportation will be set by provincial development and reform departments, with a principle of not delegating pricing authority [1]. - A unified pricing model will be implemented, transitioning from "one line one price" and "one enterprise one price" to either zonal pricing or a unified provincial price, facilitating integration with inter-provincial pricing mechanisms [1]. - The pricing will be determined based on a "permitted cost plus reasonable return" method, with specific parameters outlined for pricing [1]. Group 2: Construction and Management - Provincial energy authorities are required to take charge of the planning for domestic natural gas pipelines, optimizing layout and reducing transportation layers to avoid redundant construction [2]. - There will be a focus on strict investment project reviews to control unnecessary intermediate links that hinder effective resource utilization, promoting centralized operations to enhance pipeline efficiency [2]. - The guidelines also address reducing supply costs and regulating market order to promote fairness and openness in the industry [2].

Core Viewpoint - The article discusses the recent guidelines issued by the National Development and Reform Commission and the National Energy Administration aimed at improving the pricing mechanism for domestic natural gas pipeline transportation, promoting efficiency, and reducing costs for end-users [3][4]. Pricing Mechanism - The guidelines establish a unified pricing model for provincial natural gas pipeline transportation, transitioning from "one line one price" and "one enterprise one price" to either zonal pricing or a unified provincial price [4]. - The previous pricing model led to significant discrepancies in transportation fees within provinces, affecting the cost for similar downstream users [4]. - The new pricing approach aims to align provincial natural gas transportation prices with cross-provincial pricing mechanisms, contributing to a "national network" [4]. Cost Structure - The pricing will be determined based on "permitted costs plus reasonable returns," with pipeline asset depreciation set at a 40-year principle and permitted return rates not exceeding the 10-year government bond yield plus 4 percentage points [4][5]. - Analysts estimate that the permitted return rate for provincial transportation will be around 6%, which is lower than the 7%-8% return rates for most cross-provincial transportation [5]. Impact on the Industry - The new regulations are expected to lead to a decrease in provincial transportation fees, benefiting downstream users by lowering costs and stimulating demand [5]. - The guidelines encourage upstream gas suppliers to engage in direct sales with urban gas companies and large users, which could streamline the supply chain and reduce costs [5][6]. Market Dynamics - The changes are anticipated to enhance the vitality of the end-user gas market and improve demand-side management for urban gas companies [6]. - Large users, such as chemical plants and gas power plants, may bypass urban gas distribution by directly accessing provincial mainline pipelines, significantly lowering procurement costs and increasing the demand for natural gas as a substitute for coal and oil [6].

Core Viewpoint - The National Development and Reform Commission and the National Energy Administration have issued guidelines to transition from "one line one price" and "one enterprise one price" to a unified pricing model for natural gas pipeline transportation within provinces, aiming to facilitate the integration into a national network [2][4]. Pricing Mechanism - The new pricing mechanism will implement a unified pricing model for provincial natural gas pipeline transportation, moving towards either zonal pricing or a province-wide uniform price to align with inter-provincial pricing mechanisms [2][4]. - The pricing will be determined based on a "permitted cost plus reasonable return" method, with provincial development and reform departments conducting strict cost audits [2][3]. Pricing Parameters - The depreciation period for natural gas pipeline assets is set at 40 years, and safety production costs must be fully accounted for to ensure stable operation [3]. - The permitted return rate will be determined considering pipeline construction needs and user affordability, generally not exceeding the 10-year government bond yield plus 4 percentage points [3]. Regulatory Framework - The pricing will undergo periodic reviews and dynamic adjustments, with a regulatory cycle of three years, allowing for early reviews if significant changes occur in assets, costs, or gas volumes [3]. - The guidelines emphasize the importance of safety production costs to enhance the focus on pipeline safety in various provinces [3]. Industry Impact - The guidelines will facilitate easier comparisons for enterprises when selecting different paths and service providers, as they allow for zonal or single pricing for provincial pipelines [3]. - The integration of provincial pipelines into the national network system is expected to lay the groundwork for a unified national operation in the future [4].

Core Viewpoint - The document outlines guidelines for improving the pricing mechanism of natural gas pipeline transportation within provinces, aiming to enhance industry efficiency and promote high-quality development [3]. Group 1: Pricing Authority and Model - Provincial development and reform departments are responsible for setting natural gas pipeline transportation prices, with no further delegation of pricing authority [4]. - A unified pricing model will be implemented, transitioning from "one line one price" and "one enterprise one price" to either zonal pricing or a province-wide uniform price, facilitating integration with inter-provincial pricing mechanisms [5]. Group 2: Price Level Determination - Pricing will be based on a "permitted cost plus reasonable return" method, with a focus on cost monitoring and considering gas throughput to determine transportation prices [6]. - The depreciation period for pipeline assets is set at 40 years, and the permitted return rate should not exceed the 10-year government bond yield plus 4 percentage points [6]. - A regulatory cycle for price adjustments is established at three years, with provisions for early reviews if significant changes occur [7]. Group 3: Pipeline Planning and Investment Management - Provinces are encouraged to enhance the management of natural gas pipeline construction and operation, ensuring economic viability and efficient operation [8]. - Investment projects must be carefully reviewed to avoid unnecessary intermediate links and ensure effective resource utilization [9]. Group 4: Reducing Supply Chain Costs - Efforts will be made to evaluate and compress supply chain costs, encouraging direct purchasing between upstream suppliers and end-users [10]. - The document emphasizes the need to eliminate unnecessary supply chain layers and regulate service pricing strictly [10]. Group 5: Market Order Regulation - Pipeline operators must adhere to government pricing policies and avoid circumventing regulations through alternative fees [11]. - The document mandates fair access to pipeline facilities and outlines the need for strict supervision of pricing practices to maintain market order [11]. Group 6: Implementation and Monitoring - Provinces are required to compile a comprehensive list of natural gas pipelines subject to government pricing and continuously update it [12]. - A systematic evaluation of pipeline planning and pricing management will be conducted to ensure compliance with the new guidelines [12].