Q1 2025 TC Energy Corp Earnings Call

You May press Star then one on your telephone keypad should you need assistance during the conference call you May signal, an operator by pressing Star then zero.

I would now like to turn the conference over to Gavin Bailey, Vice President Investor Relations. Please go ahead.

Speaker Change: Thanks, very much and good morning, I'd like to welcome you to TC Energy's 2025 first quarter conference call joining me our freshwater for Ya, President and Chief Executive Officer, Sean Odonnell Executive Vice President and Chief Financial Officer, along with other members of our senior leadership team.

Speaker Change: <unk> Shawn will begin today with some comments on our financial results and operational highlights.

Speaker Change: The slide presentation that will accompany their remarks is available on our website under the investors section.

Francois Poirier: by leveraging our continental expertise in natural gas and power generation. TC Energy stands ready to support North America's role as a trusted energy partner.

Speaker Change: Following their remarks, we will take questions from the investment community. We ask that you limit yourself to two questions and if you remember of the media. Please contact our media team.

Speaker Change: 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 Exchange Commission.

Francois Poirier: Now turning to our first quarter results, and we are off to a strong start. We are proud to report that our safety incident rates continue to trend at five-year lows. Our resilient business model has continued to deliver strong results despite the volatility in the broader market, and we continue to see multiple drivers for future growth. In April, we filed Section 4 rate cases with FERC on both A&R and Great Lakes to increase their respective maximum transportation rates.

Speaker Change: Finally during the presentation, we'll refer to certain non-GAAP measures that provide additional information on Tc Energy's operational and financial performance.

Speaker Change: However, these measures may not be comparable to similar measures presented by other entities a reconciliation of various GAAP and non-GAAP measures is contained in the appendix of the presentation with that I will turn it over to Francois.

Francois: Thanks, Kevin and good morning.

Thank you for standing by this is the conference operator.

Francois: Before we begin the formal presentation.

Francois Poirier: Additionally, we approved the U.S. $0.9 billion Northwoods Project to expand our ANR We continue to expect net capital expenditures for 2025 to be between $5.5 and $6 billion, and we remain on track to place $8.5 billion of assets into service this year. In aggregate, those projects are currently tracking to approximately 15% below budget. With ongoing strong EBITDA and capital expenditure performance, we are reaffirming our overall 2025 outlook that continues to enhance our financial strength and flexibility.

Speaker Change: On behalf of TC Energy I offer my congratulations to the newly elected Prime Minister of Canada, Mark Carney.

Welcome to the TC Energy first quarter 2025 results conference call.

All participants are in listen only mode and the conference is being recorded.

Speaker Change: Canadians have never been more United in the belief that its abundant energy is key to economic sovereignty and prosperity.

After the presentation, there will be an opportunity to ask questions.

Joined the question queue, you May Press Star then one on your telephone keypad.

Speaker Change: As matters are top priority, we urge the new government to grow the energy sector and established a clear predictable regulatory framework for timely infrastructure development approvals.

Do you need assistance during the conference call you May signal, an operator by pressing Star then deal.

I would now like to turn the conference over to Gavin Bailie, Vice President Investor Relations. Please go ahead.

Speaker Change: The energy sector stands ready to collaborate with the new government on critical infrastructure projects that will benefit all Canadians. These.

Speaker Change: Thank you very much and good morning, I'd like to welcome you to TC Energy's 2025 first quarter conference call joining me are freshwater.

Speaker Change: These investments will position, Canada, as a reliable global energy supplier, while creating substantial economic benefits nationwide.

Sean O'donnell: Chief Executive Officer, Sean O'donnell.

Francois Poirier: The Southeast Gateway Project is complete and ready for service. The project was completed in under three years from a final investment decision. and was delivered 13% below our original budget.

Speaker Change: <unk>, Vice President and Chief Financial Officer, along with other members of our senior leadership team.

Tc energy: By leveraging our continental expertise in natural gas and power generation Tc energy stands ready to support North America's role as a trusted energy partner.

Speaker Change: Freshwater and Sean will begin today with some comments on our financial results and operational highlights.

Speaker Change: Copy of the slide presentation that will accompany their remarks is available on our website under the investors section.

Francois Poirier: Monumental. I would once again like to thank the Ministry of Energy, our customer the CFE, and our dedicated teams for their unwavering commitment to this project. The project is contracted until 2055 and once placed into service will represent a significant inflection point in our long-term cash flow profile. Our partner and customer, the CFE, has agreed to the contracted rate and accepted all requirements for in-service. We are just waiting on approval for our regulated rates from the National Energy Commission, or CNE, which only applies to interruptible service. Now, while 100% of our capacity is contracted with the CFE and we have no requests for interruptible service, approval of the regulated rate is normal course prior to commencing service.

Tc energy: Now turning to our first quarter results and we are off to a strong start we are proud to report that our safety incident rates continued to trend at five year lows.

Speaker Change: Following their remarks, we will take questions from the investment community. We ask that you limit yourself to two questions and if you remember of the media. Please contact our media team.

Speaker Change: 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 Exchange Commission.

Tc energy: Our resilient business model has continued to deliver strong results. Despite the volatility in the broader market and we continue to see multiple drivers for future growth.

Tc energy: In April we filed a section four rate cases with FERC on both.

Speaker Change: Finally during the presentation, we'll refer to certain non-GAAP measures provide additional information on Tc Energy's operational and financial performance.

Tc energy: And great lakes to increase their respective maximum transportation rates. Additionally, we approved the U S zero point $9 billion, North Woods project to expand our Anr system.

Speaker Change: These measures may not be comparable to similar measures presented by other entities a reconciliation of various GAAP and non-GAAP measures is contained in the appendix of the presentation with that I will turn it over to <unk>.

Tc energy: We continue to expect net capital expenditures for 2025 to be between five five and $6 billion and we remain on track to place $8 5 billion of assets into service this year.

Speaker Change: Thanks, Kevin and good morning.

Speaker Change: Before we begin the formal presentation.

Speaker Change: And behalf of TC energy I offer my congratulations to the newly elected Prime Minister of Canada, Mark Carney.

Francois Poirier: C&E has not expressed any material concerns or questions. And based on our conversations with the Ministry of Energy and the C&E, our expectation is to receive C&E approval by the end of May. Receipt of this approval is the final step to achieving in service on Southeast Gateway. We continue to have strong alignment with President Scheinbaum's Plan Mexico 2030 that aims to attract over U.S. $270 billion in investments through public-private partnerships. with a substantial focus on energy infrastructure. The Southeast Gateway Pipeline is a critical component of this plan. Looking at the map on the left, this plan includes 8.5 gigawatts of capacity from 14 new natural gas plants proposed by the CFE, of which 10 sit within our strategic corridor.

Tc energy: In aggregate those projects are currently tracking to approximately 15% below budget.

Speaker Change: Canadians have never been more United in the belief that its abundant energy is key to economic sovereignty and prosperity.

With ongoing strong EBITDA and capital expenditure performance, we are reaffirming our overall 2025 outlook that continues to enhance our financial strength and flexibility.

Speaker Change: As a matter as a top priority we urged the new government to grow the energy sector and established a clear predictable regulatory framework for timely infrastructure development approvals.

Tc energy: The southeast Gateway project is complete and ready for service the.

Speaker Change: The energy sector stands ready to collaborate with the new government on critical infrastructure projects that will benefit all Canadians.

Tc energy: The project was completed in under three years from a final investment decision.

Speaker Change: These investments will position, Canada, as a reliable global energy supplier, while creating substantial economic benefits nationwide.

Tc energy: And was delivered 13% below our original budget.

Tc energy: A monumental achievement.

Tc energy: I would once again like to thank the ministry of energy, our customer the Cfe and our dedicated teams for their unwavering commitment to this project.

Speaker Change: By leveraging our continental expertise in natural gas and power generation.

Speaker Change: We see energy stands ready to support North America's role as a trusted energy partner.

Speaker Change: Now turning to our first quarter results and we are off to a strong start.

Francois Poirier: Shifting to the U.S., we have been working towards a meaningful announcement relating to data centers for some time, and today, we have sanctioned our Northwoods project, a U.S. $900 million expansion of our A&R pipeline system. This 0.4 BCF per day expansion is expected to enter service in 2029 and will serve new gas-fired electric generation to support demand from data centers and economic development in the U.S. Midwest. Importantly, the Northwards project is backed by a 20-year take-or-pay contract with an investment-grade utility and achieves an estimated EBITDA build multiple of approximately six times. The map on the right highlights the repeatability of these Northwoods-type projects, which are low-risk, and In Corridor Growth as seen on our A&R slide.

Speaker Change: We are proud to report that our safety incident rates continued to trend at five year lows.

Speaker Change: Our resilient business model has continued to deliver strong results. Despite the volatility in the broader market and we continue to see multiple drivers for future growth.

Tc energy: We are just waiting on approval for our regulated rates from the National Energy Commission or <unk> E, which only applies to interruptible service.

Speaker Change: In April we filed a section four rate cases with FERC on both Anr and great lakes to increase their respective maximum transportation rates. Additionally, we approved the U S zero point $9 billion, North Woods project to expand our Anr system.

Now, while 100% of our capacity is contracted with the Cfe and we have no request for interruptible service approval of the regulated rate is normal course prior to commencing service.

Tc energy: The CME has not expressed any material concerns or questions and based on our conversations with the ministry of energy and the CNA. Our expectation is to receive <unk> approval by the end of May.

Speaker Change: We continue to expect net capital expenditures for 2025 to be between five and a half and $6 billion and we remain on track to place eight and a half a billion dollars of assets into service this year.

Tc energy: Receipt of this approval is the final step to achieving in service on southeast Gateway.

Speaker Change: In aggregate those projects are currently tracking to approximately 15% below budget.

Tc energy: We continue to have strong alignment with president Shine bounds planned Mexico 2030 that aims to attract over U S $270 billion in investments through public private partnerships with a substantial focus on energy infrastructure.

Francois Poirier: And I would extend this opportunity. to other areas where we are seeing on Columbia and other assets across several different customer groups. This exemplifies the value of our footprint and our income.

Speaker Change: With ongoing strong EBITDA and capital expenditure performance, we are reaffirming our overall 2025 outlook that continues to enhance our financial strength and flexibility.

Speaker Change: The South East Gateway project is complete and ready for service the.

Speaker Change: The project was completed in under three years from a final investment decision.

Tc energy: Looking at the map on the left this plan includes eight five gigawatts of capacity from 14, new natural gas plants proposed by the Cfe of which 10 sit within our strategic corridors.

Francois Poirier: The Bruce Power Major Component Replacement Program is the cornerstone of our strategy to enhance the reliability and availability of our nuclear assets. In April, we sanctioned the Unit 5 MCR, following approval of its cost and schedule estimate from the ISO. This $1.1 billion investment in emissionless nuclear energy adds significant long-term value by extending the life of Unit 5 by over 35 years. And alongside the MCR program, our Project 2030 at Bruce aims to substantially boost its net peak output through the end of the decade and nearly double our equity income by 2035. Project 2030 is projected to increase Bruce Power's capacity from its 2019 base of 6.4 gigawatts to over 7 gigawatts through three stages in a cost-effective manner.

Speaker Change: And was delivered 13% below our original budget.

Speaker Change: Monumental achievement.

Speaker Change: I would once again like to thank the ministry of energy, our customer the Cfe and our dedicated teams for their unwavering commitment to this project.

Tc energy: Shifting to the U S. We have been working towards a meaningful announcement relating to data centers for some time and today, we have sanctioned our north Woods project.

Speaker Change: The project is contracted until 2055 and once placed into service will represent a significant inflection point in our long term cash flow profile.

Tc energy: <unk> $900 million expansion of our Anr pipeline system.

Speaker Change: Our partner and customer Cfe has agreed to the contracted rate and accepted all requirements for in service.

Tc energy: This 0.4 Bcf per day expansion is expected to enter service in 2029 and will serve new gas fired electric generation to support demand from data centers and economic development in the U S. Midwest.

Speaker Change: We are just waiting on approval for our regulated rates from the National Energy Commission or C. N E, which only applies to interruptible service.

Importantly, the north where its project is backed by a 20 year take or pay contract with an investment grade utility and achieved an estimated EBITDA build multiple of approximately six times.

Speaker Change: Now, while 100% of our capacity is contracted with the Cfe and we have no request for interruptible service approval of the regulated rate is normal course prior to commencing service.

Francois Poirier: And together, these programs are integral to our strategy of delivering long-lived value through disciplined investment.

Tc energy: The map on the right highlights the repeat ability of these northwood type projects, which are low risk and.

Speaker Change: The C. Any has not expressed any material concerns or questions and based on our conversations with the ministry of energy and the C. N E. Our expectation is to receive see any approval by the end of May.

Francois Poirier: On this next chart, which you've seen before, illustrating our growth visibility through the end of the decade. Over the past six months, and including the Bruce Unit 5 MCR and the Northwoods Project announcements today, we've successfully added approximately $4 billion of long-term contracted projects with compelling build multiples in the 5 to 7 times range, with no commodity price or volumetric risk. Given the strength of our origination pipeline, we have line of sight to an increased cadence of project announcements in the second half of this year and into 2026. These projects will predominantly have capital spend and in-service dates toward the end of the decade.

Tc energy: And in corridor growth as seen on our Anr system.

Tc energy: And I would extend this opportunity.

Tc energy: Two other areas, where we are seeing on Colombia, and other assets across several different customer groups.

Speaker Change: Receipt of this approval is the final step to achieving in service on southeast Gateway.

Speaker Change: We continue to have strong alignment with president Shai Inbounds planned Mexico 2030 that aims to attract over U S $270 billion in investments through public private partnerships with a substantial focus on energy infrastructure.

Tc energy: This exemplifies the value of our footprint and our incumbency.

Tc energy: The Bruce power major component replacement program is the cornerstone of our strategy to enhance the reliability and availability of our nuclear assets.

Speaker Change: The South East Gateway pipeline is a critical component of this plan.

Tc energy: In April we sanctioned the unit five MCR following approval of its cost and schedule estimate from the ISO.

Speaker Change: Looking at the map on the left this plan includes eight and a half gigawatts of capacity from 14, new natural gas plants proposed by the Cfe of which 10 sit within our strategic corridors.

Tc energy: This $1 $1 billion investment in emission less nuclear energy adds significant long term value by extending the life of unit five by over 35 years.

Francois Poirier: which aligns with our financial capacity and further extends the duration of our growth portfolio. I will also add that of the recently sanctioned projects, a portion of the spend is in 2025 and 2026, which is expected to enhance our 2027 comparable EBITDA outlook, highlighting our ability to bring forward short cycle to cash projects. We are well positioned to deliver on our value proposition of solid growth, low risk, and repeatable performance.

Tc energy: And alongside the MCR program or project 2030 at Bruce aims to substantially boost its net peak output through the end of the decade and nearly double our equity income by 2035.

Speaker Change: Shifting to the U S. We have been working towards a meaningful announcement relating to data centers for some time and today, we have sanctioned our north Woods project.

Speaker Change: U S $900 million expansion of our Anr pipeline system.

Tc energy: Project 2030 is projected to increase Bruce Power's capacity from its 2019 base of six four gigawatts to over seven gigawatts through three stages in a cost effective manner.

Speaker Change: This 0.4 Bcf per day expansion is expected to enter service in 2029 and will serve new gas fired electric generation to support demand from data centers and economic development in the U S. Midwest.

Sean O'donnell: And now, I'll turn the call over to Sean. Thanks, Francois. Good morning, everybody. From an operational standpoint, TC continued to see strong demand in the first quarter. On the left-hand side, we highlight a number of volume increases and new records set across our three pipeline business units this quarter. TC has actually set 13 all-time delivery records since early 2024. On a TC-wide basis, throughput increased 6% in the quarter, which underscores the exceptional safety and operational performance from all of our teams. The key themes I'd like for you to take away from this slide are, first, our teams are continuously finding ways to improve system efficiency.

And together these programs are integral to our strategy of delivering long lived value through disciplined investment.

Speaker Change: Importantly, the north where its project is backed by a 20 year take or pay contract with an investment grade utility and achieved an estimated EBITDA build multiple of approximately six times.

Tc energy: On this next chart, which you've seen before illustrating our growth visibility through the end of the decade.

Tc energy: Over the past six months and including the Bruce unit, five MCR and the North Woods project announcements today, we successfully added approximately $4 billion of long term contracted projects with compelling build multiples in the five to seven times range with no commodity price or <unk>.

Speaker Change: The map on the right highlights the repeat ability of these northwood type projects, which are low risk and.

Speaker Change: And in corridor growth as seen on our Anr system.

Speaker Change: And I would extend this opportunity.

Speaker Change: Two other areas, where we are seeing on Colombia, and other assets across several different customer groups.

Tc energy: New metric risk.

Tc energy: Given the strength of our origination pipeline.

Sean O'donnell: And second, those capacity increases are being immediately taken up by the robust customer demand we're seeing across our footprint. In our power and energy solutions business, Bruce achieved 87% availability in line with our Q1 plan, which included the planned outage on Unit 5. We continue to expect availability to be in the low 90% range for full year 2025. The MCR execution has been outstanding, as the Bruce team returned Unit 6 on time and on budget, and is similarly tracking the plan on Unit 3. With that exceptional MCR track record, Bruce is now upgrading two units per year for the next five years, which will accelerate the station's operating efficiency and capacity increases that Francois mentioned earlier.

Tc energy: We have line of sight to an increased cadence of project announcements in the second half of this year and into 2026.

Speaker Change: This exemplifies the value of our footprint and our incumbency.

Speaker Change: The Bruce power major component replacement program is the cornerstone of our strategy to enhance the reliability and availability of our nuclear assets.

Tc energy: These projects will predominantly have capital spend and in service dates toward the end of the decade.

Tc energy: Which aligns with our financial capacity and further extend the duration of our growth portfolio.

Speaker Change: In April we sanctioned the unit five MCR following approval of its cost and schedule estimate from the ISO.

Tc energy: I will also add that of the recently sanctioned projects a portion of the spend is in 2025, and 2026, which is expected to enhance our 2027 comparable EBITDA outlook, highlighting our ability to bring forward short cycled the cash projects.

Speaker Change: This $1 $1 billion investment in emission less nuclear energy adds significant long term value by extending the life of unit five by over 35 years.

Speaker Change: And alongside the MCR program or project 2030 at Bruce aims to substantially boost its net peak output through the end of the decade and nearly double our equity income by 2035.

Tc energy: We are well positioned to deliver on our value proposition of solid growth low risk and repeatable performance.

Sean O'donnell: Shifting to the EBITDA bridge on the right, I'll discuss some of the variances versus the first quarter of 2024. First, Canada gas EBITDA increased due to higher depreciation and taxes on NGTL, offset by lower interest expense from our successful refinancings earlier this year. I'd like to highlight that our regulated cost of service framework ensures that all of these costs are fully recovered. Additionally, Coastal GasLink saw higher contributions following the pipeline's commercial in-service date last October. In the U.S., we saw incremental growth and modernization investments go into service this quarter, in addition to a stronger U.S.

Sean Odonnell: And now I'll turn the call over to Sean.

Speaker Change: Project 2030 is projected to increase Bruce Power's capacity from its 2019 base of six four gigawatts to over seven gigawatts through three stages in a cost effective manner.

Sean Odonnell: Thanks, Randall and good morning, everybody.

Sean Odonnell: From an operational standpoint, Tc continued to see strong demand in the first quarter.

Sean Odonnell: On the left hand side, we highlight a number of volume increases and new records set across our three pipeline business units this quarter.

Speaker Change: And together these programs are integral to our strategy of delivering long lived value through disciplined investment.

Sean Odonnell: <unk> is actually set 13, all time delivery records since early 2024.

Sean Odonnell: On a Tc wide basis throughput increased 6% in the quarter, which underscores the exceptional safety and operational performance from all of our teams in the field.

Speaker Change: On this next chart, which you've seen before illustrating our growth visibility through the end of the decade.

Speaker Change: Over the past six months and including the Bruce unit, five MCR and the North Woods project announcements today, we successfully added approximately $4 billion of long term contracted projects with compelling build multiples in the five to seven times range with no commodity price or <unk>.

Sean O'donnell: dollar. These increases were partially offset by the divestiture of Portland Natural in 2024. Our Mexico business remained largely in line with the first quarter of 2024, but did benefit from a stronger U.S. dollar exchange rate in the quarter. Lastly, our Power and Energy Solutions business experienced lower contributions from Bruce, given we now have Units 3 and 4 undergoing their MCR and the planned outage on Unit 5. This decrease was partially offset by a higher average realized price of $106 per megawatt hour. is up $12 per megawatt hour relative to the first quarter of 2024. Our Alberta CoGen fleet continued to deliver exceptional performance with 98% availability.

Sean Odonnell: The key themes I'd like for you to take away from this slide are first our teams are continuously finding ways to improve system efficiency.

Sean Odonnell: And second those capacity increases are being immediately taken up by the robust customer demand, we're seeing across our footprint.

Sean Odonnell: And our power and energy solutions business, Bruce achieved 87% availability in line with our Q1 plan, which included the planned outage on unit five.

Speaker Change: New metric risk.

Speaker Change: Given the strength of our origination pipeline.

Speaker Change: We have line of sight to an increased cadence of project announcements in the second half of this year and into 2026.

Sean Odonnell: We continue to expect availability to be in the low 90% range for full year 2025.

Speaker Change: These projects will predominantly have capital spend and in service dates toward the end of the decade.

Sean Odonnell: The MCR execution has been outstanding as the Bruce team returned unit fixed on time and on budget and is similarly tracking to plan on unit three.

Speaker Change: Which aligns with our financial capacity and further extends the duration of our growth portfolio.

Sean Odonnell: With that exceptional MCR track record Bruce is now upgrading two units per year for the next five years, which will accelerate the stations operating efficiency and capacity increases that Francois mentioned earlier.

Speaker Change: I will also add that of the recently sanctioned projects a portion of the spend is in 2025, and 2026, which is expected to enhance our 2027 comparable EBITDA outlook, highlighting our ability to bring forward short cycled the cash projects.

Sean O'donnell: which maximizes our capacity payments, although EBITDA was partially offset by lower Alberta power prices that averaged approximately $40 per megawatt hour in the quarter. Finally, natural gas storage contributions were lower relative to the exceptional quarter that business had in early 2020.

Sean Odonnell: Shifting to the EBITDA bridge on the right I'll discuss some of the variances versus the first quarter of 2024.

Sean Odonnell: <unk>, Canada gas EBITDA increased due to higher depreciation and taxes on N. G. T L offset by lower interest expense from our successful refinancings earlier this year.

Sean O'donnell: On this slide, we have a refreshed view of our funding plan that remains largely unchanged from what we showed at Investor Day. Given the high probability of the Bruce MCRs proceeding, we had included the Unit 5 MCR in our funding plan prior to sanctioning. In addition, the majority of the capital spent on Northwoods is weighted to the back end of the decade. Our updated plan requires about $31 billion in funding over the next three years that will be largely funded by $24 billion of internally generated cash flow. We continue to expect the remaining $7 billion in funding to come from capital markets without the need to issue equity.

Speaker Change: We are well positioned to deliver on our value proposition of solid growth low risk and repeatable performance.

Sean Odonnell: I'd like to highlight that our regulated cost of service framework ensures that all of these costs are fully recovered through tolls. Additionally.

Sean O'donnell: And now I'll turn the call over to Sean.

Sean O'donnell: Thanks, Francois and good morning, everybody.

Sean O'donnell: From an operational standpoint, <unk> continued to see strong demand in the first quarter on.

Sean Odonnell: Additionally, coastal gasoline saw higher contributions following the pipelines commercial in service date last October.

Sean O'donnell: On the left hand side, we highlight a number of volume increases and new records set across our three pipeline business units this quarter.

Sean Odonnell: In the U S. We saw incremental growth and modernization investments go into service. This quarter. In addition to a stronger U S dollar.

Sean O'donnell: <unk> is actually set 13, all time delivery records since early 2024.

Sean Odonnell: These increases were partially offset by the divestiture of Portland natural in 2024.

On a Tc wide basis throughput increased 6% in the quarter, which underscores the exceptional safety and operational performance from all of our teams in the field.

Sean Odonnell: Our Mexico business remained largely in line with the first quarter of 2024, but did benefit from a stronger U S dollar exchange rate in the quarter.

Sean O'donnell: As we continue to optimize our capital expenditures, we expect to deliver approximately $1.3 billion of total capital reductions in 2026 and 2027. It is this ongoing capital optimization and strong operational performance that allow us the flexibility to fund our incremental.

Sean O'donnell: The key themes I'd like for you to take away from this slide are first our teams are continuously finding ways to improve system efficiency and second those capacity increases are being immediately taken up by the robust customer demand, we're seeing across our footprint.

Sean Odonnell: Lastly, our power and energy solutions business experienced lower contributions from Bruce given we now have units three and four undergoing their MCR and the planned outage on unit five.

Sean O'donnell: Turning to our financial outlook, we are reaffirming our 2025 through 2027 EBITDA outlook that we provided last quarter. Our guidance continues to reflect the effectiveness of our long-term contracting strategy in the face of the commodity volatility that we're all facing. Our 2025 comparable EBITDA outlook remains at $10.7 to $10.9 billion, which represents a 7% to 9% increase over our 2024 results. Looking out to 2027, we continue to target $11.7 to $11.9 billion, which implies a 5 to 7% three-year growth rate. That again highlights the predictability of our base business and our underlying demand for capacity on our I'll remind you that our base case outlook uses an average USD CAD exchange rate of 1.35, which is lower than the spot exchange rates we've seen year-to-date.

Sean Odonnell: This decrease was partially offset by a higher average realized price of $106 per megawatt hour, which is up $12 per megawatt hour relative to the first quarter of 2024.

Sean O'donnell: And our power and energy solutions business, Bruce achieved 87% availability in line with our Q1 plan, which included the planned outage on unit five.

Sean Odonnell: Our Alberta, Cogent fleet continued to deliver exceptional performance with 98% availability, which maximizes our capacity payments, although EBITDA was partially offset by lower Alberta power prices that average approximately $40 per megawatt hour in the quarter.

Sean O'donnell: We continue to expect availability to be in the low 90% range for full year 2025.

Sean O'donnell: The MCR execution has been outstanding as the Bruce team returned unit fixed on time and on budget and is similarly tracking to plan on unit three.

Sean Odonnell: Finally, natural gas storage contributions were lower relative to the exceptional quarter that business had an early 2024.

Sean O'donnell: With that exceptional MCR track record Bruce is now upgrading two units per year for the next five years, which will accelerate the stations operating efficiency and capacity increases that Francois mentioned earlier.

Sean Odonnell: On this slide we have a refreshed view of our funding plan that remains largely unchanged from what we showed at Investor day.

Sean O'donnell: Shifting to the EBITDA bridge on the right I'll discuss some of the variances versus the first quarter of 2024.

Sean Odonnell: Given the high probability of the Bruce MCR is proceeding we had included the unified MCR and our funding plan prior to sanctioning.

Sean O'donnell: Canada gas EBITDA increased due to higher depreciation and taxes on N E T L offset by lower interest expense from our successful refinancings earlier this year.

Sean Odonnell: In addition, the majority of the capital spend on Northwood is weighted to the back end of the decade.

Sean O'donnell: We have provided sensitivities on the slide showing potential for incremental EBITDA of approximately 200 million if exchange rates were achieved a full year average of 1.40. I'll reiterate that we systematically hedge our U.S. dollar net income to insulate our comparable earnings from FX volatility. So we do not expect a material impact related to foreign exchange on our 2025 comparable earnings. Longer term, on an unhedged basis, a penny change in USD CAD corresponds to roughly a penny change in comparable EPS.

Sean Odonnell: Our updated plan requires about 31 billion in funding over the next three years that will be largely funded by $24 billion of internally generated cash flow.

Sean O'donnell: I'd like to highlight that our regulated cost of service framework ensures that all of these costs are fully recovered through tolls.

Sean O'donnell: Additionally, coastal gas link saw higher contributions following the pipelines commercial in service date last October.

Sean Odonnell: We continue to expect the remaining $7 billion in funding to come from capital markets without the need to issue equity.

Sean O'donnell: In the U S. We saw incremental growth and modernization investments go into service. This quarter. In addition to a stronger U S dollar.

Sean Odonnell: As we continue to optimize our capital expenditures, we expect to deliver approximately $1 3 billion of total capital reductions in 2026 and 2027 it.

Sean O'donnell: These increases were partially offset by the divestiture of Portland natural in 2024.

Sean O'donnell: Moving to the right side of the room. We've summarized several other factors that could impact our EBITDA outlook. For the purposes of our base case outlook, we tend to build in conservative assumptions on rape case settlements, such as the active cases on Columbia, A&R, and Great Lakes that Francois mentioned. We also have ongoing revenue enhancement and cost optimization initiatives across the organization that have the potential to drive additional upskills. We continue to target availability improvements on our power generating assets, particularly Bruce, where the refurbishments are already paying dividends in operating performance. Continuing to place projects into service on schedule and under budget remains a top priority and value driver, which provides a tailwind to capital efficiency and EBITDA performance.

Sean Odonnell: It is this ongoing capital optimization and strong operational performance that allow us the flexibility to fund our incremental growth.

Sean O'donnell: Our Mexico business remained largely in line with the first quarter of 2024, but did benefit from a stronger U S dollar exchange rate in the quarter.

Sean Odonnell: Turning to our financial outlook, we are reaffirming our 2025 through 2027 EBITDA outlook that we provided last quarter.

Lastly, our power and energy solutions business experienced lower contributions from Bruce given we now have the units three and four undergoing their MCR and the planned outage on unit five.

Sean Odonnell: Our guidance continues to reflect the effectiveness of our long term contracting strategy in the face of the commodity volatility that we're all seeing.

Sean O'donnell: This decrease was partially offset by a higher average realized price of $106 per megawatt hour, which is up $12 per megawatt hour relative to the first quarter of 2024.

Sean Odonnell: Our 2025 comparable EBITDA outlook remains at $10 seven to $10 9 billion, which represents a 7% to 9% increase over our 2024 results.

Sean O'donnell: Our Alberta, Cogent fleet continued to deliver exceptional performance with 98% availability, which maximizes our capacity payments, although EBITDA was partially offset by lower Alberta power prices that average proximately $40 per megawatt hour in the quarter.

Sean Odonnell: Looking out to 2027, we continue to target a 11, 7% to $11 9 billion, which implies a 5% to 7% three year growth rate.

Sean Odonnell: Again highlights the predictability of our base business and our underlying demand for capacity on our systems.

Francois Poirier: I'll note that under our current expectation of receiving approval from C&E by the end of May, we do not expect an impact on our 2025 outcome. With our 97% EBITDA underpinned by rate regulated or take or pay contracts, we remain insulated from increased price and volume risk that we're currently seeing in the market. This resilience has enabled us to grow our dividend for 25 consecutive years. which remains a core component of our shareholder value process.

Sean O'donnell: Finally, natural gas storage contributions were lower relative to the exceptional quarter that business had an early 2024.

Sean Odonnell: I'll remind you that our base case outlook uses an average USD CAD exchange rate of 1.35, which is lower than the spot exchange rates, we've seen year to date.

Sean O'donnell: On this slide we have a refreshed view of our funding plan that remains largely unchanged from what we showed at Investor day.

Sean Odonnell: We have provided sensitivities on slide showing potential for incremental EBITDA of approximately $200 million. If exchange rates were achieved a full year average of 1.40.

Sean O'donnell: Given the high probability of the Bruce MCR is proceeding we had included the unified MCR and our funding plan prior to sanctioning.

Sean Odonnell: I'll reiterate that we systematically hedge our U S dollar net income to insulate our comparable earnings from FX volatility.

Francois Poirier: With that, I will pass the call back to Francois. Thanks, John. As I mentioned before, our focus remains on the key factors that have brought us success. Number one, maximizing the value of our assets through safety and operational. Secondly, executing on our selective portfolio of growth projects, including bringing $8.5 billion of assets into service in 2025. And third, ensuring financial strength and flexibility. It's by adhering to these priorities that we'll continue to deliver solid growth, low-risk, and repeatable performance year after year.

Sean O'donnell: In addition, the majority of the capital spend on Northwood is weighted to the back end of the decade.

Sean Odonnell: So we do not expect a material impact related to foreign exchange on our 2025 comparable earnings.

Sean O'donnell: Our updated plan requires about 31 billion in funding over the next three years that will be largely funded by $24 billion of internally generated cash flow.

Sean Odonnell: Longer term on an unhedged basis, a penny change in USD CAD corresponds to roughly a penny change in comparable EPS.

Sean O'donnell: We continue to expect the remaining $7 billion in funding to come from capital markets without the need to issue equity.

Sean Odonnell: Moving to the right side of the page, we summarize several other factors that could impact our EBITDA outlook.

Sean O'donnell: As we continue to optimize our capital expenditures, we expect to deliver approximately $1 3 billion of total capital reductions in 2026 and 2027 it.

Sean Odonnell: For the purposes of our base case outlook, we tend to build and conservative assumptions on rate case settlements such as the active cases on Colombia, Anr and great Lakes that Francois mentioned.

Sean O'donnell: It is this ongoing capital optimization and strong operational performance that allow us the flexibility to fund our incremental growth.

Sean Odonnell: We also have ongoing revenue enhancement and cost optimization initiatives across the organization that have the potential to drive additional upside.

Operator: Operator, we will now take questions from the conference call. Thank you.

Sean O'donnell: Turning to our financial outlook, we are reaffirming our 2025 through 2027 EBITDA outlook that we provided last quarter.

Operator: We will now begin the question and answer session. To join the question queue, you may press star then 1 on your telephone keypad. You will hear a tone acknowledging your request.

Sean Odonnell: We continue to target availability improvements on our power generating assets, particularly Bruce where the refurbishments are already paying dividends and operating performance.

Sean O'donnell: Our guidance continues to reflect the effectiveness of our long term contracting strategy in the face of the commodity volatility that we're all seeing.

Operator: Please limit your question to two, and if you should have additional questions, please re-enter the queue. If you are using a speakerphone, please pick up your handset before pressing any keys.

Sean Odonnell: Continuing to place projects into service on schedule and under budget remains a top priority and value driver, which provides a tailwind to capital efficiency and EBITDA performance.

Sean O'donnell: Our 2025 comparable EBITDA outlook remains at 10, 7% to $10 9 billion, which represents a 7% to 9% increase over our 2024 results.

Operator: To withdraw your question, please press star, then two.

Sean Odonnell: I'll note that under our current expectation of receiving approval from <unk> by the end of May we do not expect an impact on our 2025 outlook.

Sean O'donnell: Looking out to 2027, we continue to target a 11, 7% to $11 9 billion, which implies a 5% to 7% three year growth rate that again highlights the predictability of our base business and our underlying demand for capacity on our systems.

Praneeth Satish: The first question comes from Praneeth Satish with Wells Fargo. Please go ahead.

Sean Odonnell: With our 97% EBITDA underpinned by rate regulated or take or pay contracts. We remain insulated from increased price and volume risk that we're currently seeing in the market.

Sean Odonnell: This resilience has enabled us to grow our dividend for 25 consecutive years, which remains a core component of our shareholder value proposition.

Sean O'donnell: I'll remind you that our base case outlook uses an average USD CAD exchange rate of 1.35, which is lower than the spot exchange rates, we've seen year to date.

Francois: With that I will pass the call back to Francois.

Sean O'donnell: Have provided sensitivities on the slides showing potential for incremental EBITDA of approximately $200 million. If exchange rates were achieved a full year average of 1.40.

Sean Odonnell: Thanks, Sean as.

Sean Odonnell: As I mentioned before our focus remains on the key factors that are brought US success number one maximizing the value of our assets through safety and operational excellence.

Francois Poirier: Praneeth, it's Francois. You know, what got us here in the really solid place we're in is the value of our footprint. It's a strategic advantage. We are definitely seeing accelerated set of opportunities for low-risk, higher-return opportunities. What I'd say, though, is that the focus, firstly, would be on our human capital and our ability to continue to deliver the project execution performance that has provided us with delivering projects for 2025 on all $8.5 billion at about 15% below the original plan. That's going to be, if and when we want to contemplate going above a $6 billion annual number, we're going to be focusing first on making sure that we've got the human capital and the bench to execute well on our projects.

Sean O'donnell: Reiterate that we systematically hedge our U S dollar net income to insulate our comparable earnings from FX volatility.

Sean Odonnell: Secondly, executing on a selective portfolio of growth projects, including bringing eight $5 billion of assets into service in 2025.

Sean O'donnell: We do not expect a material impact related to foreign exchange on our 2025 comparable earnings.

Sean Odonnell: And third ensuring financial strength and flexibility.

Sean O'donnell: Longer term on an unhedged basis, a penny change in USD CAD corresponds to roughly a penny change in comparable EPS.

Sean Odonnell: It's by adhering to these priorities that will continue to deliver solid growth low risk.

Sean O'donnell: Moving to the right side of the page, we summarize several other factors that could impact our EBITDA outlook.

Sean Odonnell: And repeatable performance year after year.

Speaker Change: Operator, we will now take questions from the conference call.

Sean O'donnell: For the purposes of our base case outlook, we tend to build and conservative assumptions on rate case settlements such as the active cases on Colombia, Anr and great Lakes that Francois mentioned.

Sean Odonnell: Thank you.

Sean Odonnell: We will now begin the question and answer session to join the question queue. You May Press Star then one on your telephone keypad.

Sean O'donnell: We also have ongoing revenue enhancement and cost optimization initiatives across the organization that have the potential to drive additional upside.

Sean Odonnell: Here too and acknowledging your request.

Sean Odonnell: Please limit your question to two and if you should have additional questions. Please reenter the queue.

Sean O'donnell: We continue to target availability improvements on our power generating assets, particularly Bruce where the refurbishments are already paying dividends and operating performance.

Sean Odonnell: If youre using a speakerphone please pick up your handset before pressing any Keith.

Sean Odonnell: Italia question. Please press Star then two.

Francois Poirier: I don't expect that to occur for the 2025 or the 2026 year. I think the 4.75 debt debit is a firm commitment on our part. And right now, all of the growth that we see is in the next, you know, half of the year and into 2026. is still filling out the white space below the $6 billion number in our in our chart on slide nine, given the fact that it's foreign service states that are near the end of the decade. But to the extent we have the opportunity to consider later in the decade, Projects that deliver very attractive returns.

Sean O'donnell: Continuing to place projects into service on schedule and under budget remains a top priority and value driver, which provides a tailwind to capital efficiency and EBITDA performance.

Speaker Change: The first question comes from Bonnie to be with Wells Fargo. Please go ahead.

Bonnie: Thanks, Good morning.

Speaker Change: First question here, just given your what looks like a very strong origination pipeline for U S gas projects and and and good returns. How are you thinking about capex and potentially going to the high end of your 6% to $7 billion annual range is that something you would consider if it could be done in a in a leverage neutral.

Sean O'donnell: I'll note that under our current expectation of receiving approval from <unk> by the end of May we do not expect an impact on our 2025 outlook.

Sean O'donnell: With our 97% EBITDA underpinned by rate regulated or take or pay contracts. We remain insulated from increased price and volume risk that we're currently seeing in the market.

Bonnie: Manner and staying below the $4 75.

Sean O'donnell: This resilience has enabled us to grow our dividend for 25 consecutive years, which remains a core component of our shareholder value proposition.

Francois: It's francois.

Francois: What what got US here in the the really solid place. We're we're in is the.

Francois: With that I will pass the call back to Francois.

Francois Poirier: We will consider those but first from a human capital standpoint and then secondly Living Within Our Means, and consider what all the funding alternatives are at that point.

Francois: Thanks, Sean.

Francois: As I mentioned before our focus remains on the key factors that are brought US success number one maximizing the value of our assets through safety and operational excellence.

Francois: The value of our footprint.

Francois:

Francois: It's a strategic advantage, it's so and we are definitely seeing accelerated.

Francois: Set of opportunities for lower risk higher return opportunities, what I'd say, though is that the focus firstly would be on our human capital and our ability to continue to deliver the project execution performance that has provided us with you know delivering projects for 2025 on all eight and a half billion that about.

Francois Poirier: Got it, that's helpful.

Francois: Secondly, executing on a selective portfolio of growth projects, including bringing $8 $5 billion of assets into service in 2025, and third ensuring financial strength and flexibility.

Praneeth Satish: And then just maybe a few kind of clarifying questions here on Southeast Gateway. So looks like CFE has signed off, you're waiting for CNE approval. Can you just clarify what the payment mechanics could look like once the project is operational? What would the effective date of the project be? Would it be end of May as it stands now? And when would you actually receive payments where it would start to show up in EBITDA? Is that also end of May or would that take another month or so? And then finally, can you move forward with in-service of the pipeline without CNE approval or is that a gating item for service to start?

Francois: It's by adhering to these priorities that will continue to deliver solid growth low risk.

Francois: 15% below the original plan so.

Francois: And repeatable performance year after year.

Francois: That's gonna be if and when we want to contemplate.

Speaker Change: Operator, we will now take questions from the conference call.

Francois: You know going above a $6 billion annual number we're gonna be focusing first on making sure that we've got the human capital.

Francois: Thank you.

Francois: We will now begin the question and answer session to join the question queue. You May Press Star then one on your telephone keypad, you will hear two and acknowledging your request.

Francois: And the the bench to execute well on our projects I don't expect that to occur for the 25 or the 2026 a year.

Tina Faraca: Thank you.

Francois: Please limit your question did you and if you should have additional questions. Please re enter the queue.

Tina Faraca: This is Tina. We're really excited to have the project completed and to have CFE support on that project. We mentioned in our release we are waiting on just one final regulatory approval and expect to have that no later than the end of If we get that approval, then we will roll into our...

Francois:

Francois: I think the 475 debt to EBITDA is a firm commitment on our part.

Francois: If youre using a speakerphone please pick up your handset before pressing any Keith.

Francois: Your question. Please press Star then two.

Francois: And right now all of the growth that we see is.

Speaker Change: The first question comes from Bonnie.

Francois: And the next half.

Speaker Change: With Wells Fargo. Please go ahead.

Francois: Half of the year and into 2026.

Francois: There's still filling out the white space below the $6 billion number.

Speaker Change: Thanks, Good morning.

Speaker Change: First question here, just given your what looks like a very strong origination pipeline for U S gas projects and and and good returns. How are you thinking about capex and potentially going to the high end of your 6% to 7 billion annual range is that something you'd consider if it could be done in a in a leverage neutral.

Tina Faraca: That is just per for our. forward to getting that project. And what I might add, Praneeth, to that is that... You know, we have a total adjustment mechanism that preserves the NPV of payments, which is, you know, a big reason why we don't expect an impact on our 2025 outlook, irrespective of when the in-service date occurs. And then to your, you know, Part B of that second question, we do need the CNE certificate for regulated rates in order to go into service.

Francois: <unk> and our chart on.

Francois: On slide nine given the fact that it's for in service dates that are near the end of the decade, but to the extent we have the opportunity to consider later in the decade.

Francois: Projects that deliver very attractive returns, we will consider those but first from a human capital standpoint, and then secondly.

Speaker Change: Manner and staying below the $4 75.

Francois:

Speaker Change: Great Thats Francois.

Francois: Living within our means and consider what all the funding alternatives are at that point.

Speaker Change: What what got US here in the the really solid place. We're we're in is the.

Francois: Got it that's helpful.

Francois: And then just maybe a few kind of clarifying questions here on southeast Gateway. So it looks like <unk> signed off Youre waiting for see any approval.

Speaker Change: The value of our footprint.

Speaker Change: <unk>.

Speaker Change: It's a strategic advantage, it's so and we are definitely seeing accelerated.

Tina Faraca: Thank you.

Francois: Can you just clarify what the payment mechanics could look like once the project is operational what.

Speaker Change: Set of opportunities for lower risk higher return opportunities, what I'd say, though is that the focus firstly would be on our human capital and our ability to continue to deliver the project execution performance that has provided us with delivering projects for 2025 on all eight and a half billion that about.

Jeremy Tonet: The next question comes from Jeremy Tonet with J.P. Morgan. Please go ahead.

Francois: What would the effective date of the project being would it be end of May as it stands now and when would you actually received payments where it would start to show up in EBITDA is that also end of may or would that take another month or so and then finally can you move forward with in service of the pipeline without see any approval or is that.

Jeremy Tonet: Hi, good morning. Um, in the States, we hear a lot about, you know, data centers across, you know, different regions. I was wondering, you know, we don't quite hear as much on the Alberta outlook there. And it seems with the cheap resource, the the policy focus, there would be a lot of opportunity there, particularly as it relates to, you know, behind the meter. And just wondering, you know, your your thoughts there, what that could mean for TC, given the NGTL footprint that really dominates. Thanks, Jeremy.

Speaker Change: 15% below the original plan so.

Speaker Change: That's gonna be if and when we want to contemplate.

A gating item for service to start thank you.

Speaker Change: Going above a $6 billion annual number we're going to be focusing first on making sure that we've got the human capital.

Tina: Hi, Puneet this is Tina.

Speaker Change: We're really excited to have.

Tina: Project completed and to have see cfe support on that project.

Speaker Change: And the the bench to execute well on our projects I don't expect that to occur for the 25 or the 2026 a year.

Tina: As mentioned in our release.

Tina: Our waiting on just one final regulatory approval and expect to have that no later than the end of the month.

Francois Poirier: I'll start and I'll pass it over to Tina. You know, if you look at our strategy, just contrasting the US and Canada, as you alluded to, in the US, we're really focusing predominantly in front of the meter, we connect to eight of the 10 largest LDCs in the US. We're starting to see a significant inbound flow of requests for service, so there's really no need for us to focus behind the meter in the U.S. other than perhaps strictly from a pipeline perspective.

Speaker Change:

Speaker Change: I think the 475 debt to EBITDA is a firm commitment on our part.

Tina: Once we get that approval, then we will roll into our normal invoicing cycle.

Speaker Change: And right now all of the growth that we see.

Tina: And that is just per our agreement with Cfe. So typically a 30 day.

Speaker Change: And the next.

Tina: Flat on invoicing and looking forward to getting that project fully commercialized and what I might add to that is that.

Speaker Change: Half of the year and into 2026.

Speaker Change: Still filling out the white space below the $6 billion number.

Tina: We have a tolling adjustment mechanism that preserves the NPV of payments, which is a big reason why we don't expect an impact on our 2025 outlook irrespective of when the in service date occurs.

Speaker Change: In our in our chart.

Speaker Change: On slide nine given the fact that it's for in service dates that are near the end of the decade, but to the extent we have the opportunity to consider later in the decade.

Francois Poirier: It's a little bit different in Canada. This is a little bit more of a, if you build it they will come kind of approach, so we are working with producers, developers as well, to see what the solution set might look like, and perhaps Tina and Greg can provide a little bit of additional color on how we would be looking to more of a full service approach. I'll start with the gas pipeline side.

Speaker Change: Projects that deliver very attractive returns, we will consider those but first from a human capital standpoint, and then secondly.

Tina: And then to your part B of that second question.

Tina: We do need the C. Any certificate for our regulated rates in order to go into service.

Speaker Change:

Speaker Change: Living within our means and consider what all the funding alternatives are at that point.

Tina: Thank you.

Jeremy Tonet: The next question comes from Jeremy Tonet.

Speaker Change: Got it that's helpful.

Speaker Change: And then just maybe a few kind of clarifying questions here on southeast Gateway. So it looks like <unk> signed off Youre waiting for see any approval.

Tina: J P. Morgan. Please go ahead.

Speaker Change: Hi, good morning.

Tina: Good morning.

Tina: Hum.

Francois Poirier: TransCanada as Francois. and other SIFT developers and producers. And as you know, our systems transport about 80. So we are really well positioned to capture data center load as it materializes. And from a pipeline perspective, we're working with our counterparties Transcripts provided by Transcription Outsourcing, LLC.

Speaker Change: Can you just clarify what the payment mechanics could look like once the project is operational what.

Tina: In the states, we hear a lot about.

Tina: Data centers across different regions. I was just wondering you know we don't quite hear as much on the Alberta outlook, there and it seems with the.

Speaker Change: What would the effective date of the project being would it be end of May as it stands now and when would you actually receive payments where it would start to show up in EBITDA is that also end of may or would that take another month or so and then finally can you move forward with in service of the pipeline without see any approval or is that.

Tina: The cheap resource.

Tina: The policy focus.

Tina: There would be a lot of opportunity there, particularly as it relates to.

Tina: Behind the meter and just wondering.

Tina: Your thoughts there what that could mean for T C. Given the <unk> footprint that really dominates.

Speaker Change: A gating item for service to start thank you.

Speaker Change: Hi, Puneet this is Tina.

Tina: Dominates.

Speaker Change: We're really excited to have.

Tina: Yeah.

Tina: Thanks, Jeremy I'll start and I'll pass it over to Tina.

Speaker Change: Project completed and to have C C a T.

Tina: If you look at our strategy just contracting the U S and Canada as you alluded to.

Speaker Change: Support on that project as mentioned in our release, we are waiting on just one final regulatory approval and expect to have that no later than the end of the month.

Greg Grant: Sure, thanks. It's Greg Grant here. I mean, as we've seen globally, there's been unprecedented need for electricity and the EI data center front is continuing to enhance that. We've been operating gas transmission storage power in Alberta for decades. So I think that uniquely positions us on how we can quickly bring some of these services to fruition here to help alleviate that need. And then just a point of current fact, just in Alberta here, we have about a queue of about 12 gigawatts just on data centers. So when you think about the size of the existing grid of Alberta, which is about 12, you know, that could double it just in of itself.

Tina: In the U S. We're really focusing predominantly in front of the meter we connect to eight of the 10 largest L. D. CS in the U S.

Speaker Change: Once we get that approval, then we will roll into our normal invoice.

Tina: We're starting to see significant inbound flow of requests for service. So theres really no need for us to focus behind the meter in the U S. Other than perhaps.

Speaker Change: Invoicing cycle.

Speaker Change: That is just per our agreement with Cfe. So typically earn at 30 days.

Speaker Change: Dawn on invoicing and looking forward to getting that project fully commercialized and what I might add to that is that.

Tina: Strictly from a pipeline perspective, it's a little bit different in Canada.

Tina: A little bit more of a if you build it they will come kind of approach. So we are working with.

Speaker Change: We have a tolling adjustment mechanism that preserves the NPV of payments.

Speaker Change: Which is a big reason why we don't expect an impact on our 2025 outlook irrespective of when the in service date occurs.

Speaker Change: Producers are.

Speaker Change: Developers as well to see what the solution set might look like and perhaps Tina and Greg can provide a little bit of additional color on how we would be looking to more of a full service approach.

Speaker Change: And then to your part B of that second question.

Greg Grant: So we are looking at opportunities, as Tina mentioned, where we can leverage our experience on the gas and power side in a complementary solution.

Speaker Change: We do need the C. Any certificate for our regulated rates in order to go into service.

Speaker Change: Start with the gas pipeline side.

Francois Poirier: But I just want to be clear, Francois did mention in the last quarter, we are not looking to start an IPP. We're going to be very thoughtful in our approach, and of course we must compete for capital amongst all the other great opportunities that we've already talked about. So we'll continue to look at ways we can offer that support to our customers, but we'll be very selective in doing that. Got it.

Speaker Change: Canada as well.

Speaker Change: Thank you.

Speaker Change: That's why I mentioned, we are in.

Speaker Change: Conversations with several different entities, including data center developers and producers.

Speaker Change: The next question comes from Jeremy Tonet.

Speaker Change: J P. Morgan. Please go ahead.

Speaker Change: And as you know our system's transported about 80% of the WCS the production and the tea season.

Speaker Change: Hi, good morning.

Speaker Change: Good morning.

Speaker Change: Hum.

Speaker Change: In the states, we hear a lot about.

Speaker Change: About 70% of Ontario, and 98%.

Speaker Change: Data centers across different regions I was wondering we don't quite hear as much on the Alberta outlook, there and it seems with.

Speaker Change: So we are really well positioned to capture data center load as it materializes.

Francois Poirier: Very helpful. Thank you for that.

Jeremy Tonet: And just trying to reconcile, I guess, you know, the CapEx outlook for 2025 here. I think you're trending, you know, really under budget there. And just wondering if this means you're looking at the low end of the range? Or is it not the low end of the range because you're able to fill in, I guess, these, you know, new incremental attractive projects, as you just outlined?

Speaker Change: And from a pipeline perspective, we are working with our Counterparties.

Speaker Change: The cheap resource.

Speaker Change: The policy focus.

Speaker Change: And whether the optimal locations are too from a siding perspective.

Speaker Change: There would be a lot of opportunity there, particularly as it relates to.

Speaker Change: And in some of these locations power is necessary and I'll turn it over to Greg to talk about kind of how we're thinking about it from that perspective.

Speaker Change: Behind the meter and just wondering.

Speaker Change: Your thoughts there what that could mean for T C. Given the <unk> footprint that really dominates.

Greg: Sure. Thanks, it's a great Grand tier.

Speaker Change: As we've seen globally, there's been unprecedented need for electricity in the data center front is continuing to enhance fast.

Speaker Change: Dominates.

Speaker Change: Yeah.

Speaker Change: Thanks, Jeremy I'll start and I'll pass it over to Tina.

Francois Poirier: Good morning. We were clear 2025, bringing $8.5 billion into service this year, we're going to be elevated relative to our 4.75 target. We were pretty clear about that yesterday. We are above 4.75 in 2025.

Speaker Change: If you look at our strategy just contracting the U S and Canada as you alluded to.

Speaker Change: We've been operating gas transmission storage power in Alberta for decades, So I think that uniquely positions us on how we can quickly bring some of these services to fruition here to help alleviate that need and then just a point of current fact, just in Alberta share railroader Q of about <unk>.

Speaker Change: In the U S. We're really focusing predominantly in front of the meter we connect to eight of the 10 largest ldcs in the U S.

Speaker Change: We're starting to see significant inbound flow of requests for service.

Francois Poirier: And then you start to see really the full effect of $8.5 billion of capital in full year 26, really, and STP being the biggest driver though. So it's 26 And in terms, Jeremy, of where we fall inside the range, when we put our plan together, you know, in late 2024 for the 2025 year, we already have some of those savings or coming in under budget baked in. So you should not infer, because we're planning on bringing projects in well under the original board sanctioned capital amounts, that that will necessarily on its own drive us to the lower end of that range.

Speaker Change: So theres really no need for us to focus behind the meter in the U S. Other than perhaps.

Speaker Change: 12, Gigawatts just on data centers.

Speaker Change: So when you think about the size of the existing grid of Alberta, which is about 12 <unk>.

Speaker Change: Strictly from a pipeline perspective, it's a little bit different in Canada.

Speaker Change: Double it just in of itself.

Speaker Change: A little bit more of a if you build it they will come kind of approach. So we are working with.

Speaker Change: So we are looking at opportunities as Tina mentioned, where we can leverage our experience on the gas and power side in a complementary solution.

Speaker Change: Producers are.

Speaker Change: Developers as well to see what the solution set might look like and perhaps Tina and Greg can provide a little bit of additional color on how we would be looking to more of a full service approach.

Speaker Change: But just wanted to be clear Francois did mentioned in the last quarter. We are not looking to start an IPP, we're going to be very thoughtful in our approach.

Speaker Change: And of course, we must compete for capital amongst all the other great opportunities that we've already talked about so we'll continue to look at ways that we can offer that support to our customers, but we'll be very selective in doing that.

Speaker Change: Start with the gas pipeline side.

Speaker Change: Canada as well.

Francois Poirier: And as you can surmise, if we have opportunities for short cycle projects to add cash flow, to the extent we can do so and stay within our budget, we'll always consider those.

Speaker Change: That's why I mentioned, we are in various conversations with several different entities, including data center developers and producers.

Speaker Change: Got it very helpful. Thank you for that.

Speaker Change: And as you know our system's transported about 80% of the WCS the production and the tea season.

Speaker Change: And just trying to reconcile I guess.

Speaker Change: The capex outlook for twenty-five here I think youre trending you know really are under budget there.

Speaker Change: About 70% of Ontario, and 98%.

Francois Poirier: So we're confident in the five and a half to six, where we'll fall within that range, we'll have to see as the year unfolds and any other, you know, short cycle opportunities that present them. Got it. Very helpful.

Speaker Change: So we are really well positioned to capture data center load as it materializes.

Speaker Change: And just wondering if this means you're looking at the low end of the range.

Speaker Change: And from a pipeline perspective, we are working with our counterparties to determine whether the optimal locations are too from a siding perspective.

Speaker Change: Or is it not the low end of the range because you're able to fill in I guess these new incremental attractive projects as you just I want.

Rob Hope: Thank The next question comes from Rob Hope with Scotiabank. Please go ahead. Morning, everyone.

Speaker Change: And in some of these locations power is necessary and I'll turn it over to Greg to talk about kind of how we're thinking about it from that perspective.

Sean Odonnell: Hey, Jeremy it's Sean Good morning, we were cleared 2025, bringing eight $5 billion into service. This year, we're going to be elevated relative to our $4 75 target.

Rob Hope: Regarding the increased line of sight to higher project announcements over the next year, is this just a function of potential projects moving further down the contracting path and you have now visibility on contracts being signed? And when you take a look at these projects, are they mainly data center related? Or, you know, is there a good mix of coal to gas analogy as well?

Greg: Sure. Thanks, it's a great Grand tier.

Speaker Change: As we've seen globally.

Sean Odonnell: Pretty clear about that Investor day so.

Speaker Change: It's been unprecedented need for electricity in the data center front is continuing to enhance that.

Sean Odonnell: We are about $4 five in 2025, and then you start to see really the full effect of $8 $5 billion of capital in full year, 'twenty, six really and STP being the biggest driver of those so is 26, where we started to see the deleveraging that in 'twenty five.

Speaker Change: We've been operating gas transmission storage power in Alberta for decades, So I think that uniquely positions us on how we can quickly bring some of these services to fruition here to help alleviate that need and then just a point of current fact, just in Alberta here were able butter Q of about <unk>.

Tina Faraca: Good morning, this is Tina. And yes, we've been really working to understand the pipeline as it's been developing. And where we're focused right now is Progressing projects that, although not limited to just one demand element of overall growth, power generation has really become a bright spot for us and where we're quite active. And that's just taken a bit of time. progress and determine how we're going to best serve that load. And so that's why we're seeing some of this pick up quite a bit. So across our broader suite of that opportunity set, we we see the coal to gas conversions, data center demand, and then incremental just power generation for increased electrification.

Jeremy Tonet: Right sorry, Jeremy.

Jeremy Tonet: And in terms of Jeremy of where we fall inside the range when we put our plan together.

Jeremy Tonet: In late 2024 for the 2025 year, we already have some of those savings.

Speaker Change: 12, Gigawatts just on data centers.

Speaker Change: So when you think about the size of the existing grid of Alberta, which is about 12.

Jeremy Tonet: Savings or coming in under budget baked in so you should not infer because we're planning on bringing projects in well under the original board sanction capital amounts that that will necessarily on its own drive us to the lower end of that range and as your <unk>.

Speaker Change: You know that could double it just in of itself.

Speaker Change: So we are looking at opportunities as Tina mentioned, where we can leverage our experience on the gas and power side in a complementary solution.

Speaker Change: But just wanted to be clear Francois did mentioned in the last quarter. We are not looking to start an IPP, we're going to be very thoughtful in our approach.

Jeremy Tonet: As you can surmise, if we have opportunities for short cycle projects to add cash flow.

Speaker Change: And of course, we must compete for capital amongst all the other great opportunities that we've already talked about so we'll continue to look at ways that we can offer that support to our customers, but we'll be very selective in doing that.

Tina Faraca: So right now we are working with counterparties in the amount of about 25 gigawatts of new opportunities. That translates to almost 6 BCF per day in various stages of development. As those projects progress, they all look and feel like our previous projects, highly creditworthy counterparties, long-term take-or-pay commitments, and in the five to seven times . Rob, these are not our... Our guidance to you around the cadence of additional projects is not just based on a macro backdrop, it's based on... A series of specific projects in which we are in late stages of negotiations and development.

Jeremy Tonet: To the extent, we can do so and stay within our budget, we'll always consider those so we're confident.

Jeremy Tonet: And the five five to six where we will fall within that range, we'll have to see as the year unfolds and any other short cycle opportunities that present themselves.

Speaker Change: Got it very helpful. Thank you for that.

Speaker Change: And just trying to reconcile I guess.

Jeremy Tonet: Got it very helpful. Thank you.

Speaker Change: The capex outlook for 'twenty five here.

Speaker Change: I think youre trending really under budget there.

Speaker Change: The next question comes from Rob Hope with Scotia Bank. Please go ahead.

Speaker Change: And just wondering if this means you're looking at the low end of the range or is it not the low end of the range because you're able to fill in I guess these new incremental attractive projects as you just don't want.

Good morning, everyone regarding the increased line of sight to hire project announcements over the next year is this just a function of potential projects moving further down the contracting path and you have now visibility on on.

Speaker Change: Hey, Jeremy it's Sean Good morning, we were cleared 2025, bringing $8 $5 billion into service. This year, we're gonna be elevated relative to our $4 75 target.

Speaker Change: Contracts being signed and when you take a look at these projects are they mainly data center related or is there a good mix of coal to gas and LNG as well.

Rob Hope: I appreciate that colour.

Rob Hope: And then maybe as a follow up, in terms of data centre or power related projects, you know, can we use Northwoods as a template, meaning looping, compression, maybe a little bit of a lateral with, we'll call it $1 to $2 billion Canadian as the sweet spot? Yes, when we think about our strategy, particularly in the US, as we've mentioned before, we are focused on serving the data center load through our existing utility. Thank you.

Keena: Good morning, this is keena and.

Speaker Change: Pretty clear about that Investor day, so the.

Speaker Change: Yes, we've been really working to understand the pipeline as its been developing.

Speaker Change: We are about $4 five in 2025, and then you start to see really the full effect of $8 $5 billion of capital in full year 'twenty six really an S.

Keena: And where we're focused right now is.

Speaker Change: And the biggest driver of those so it's 26, where we start to see the deleveraging that in 'twenty five.

Keena: Progressing projects that although not limited to just one demand element of overall growth.

Jeremy Tonet: Right, sorry, Jeremy and.

Keena: Power generation is really become a bright spot for us and where we're quite active and thats just taken a bit of time to progress and determine how we're going to best serve that load and so that's why we're seeing some of that pick up quite a bit.

Jeremy Tonet: And in terms of Jeremy of where we fall inside the range when we put our plan together.

Jeremy Tonet: <unk>.

Jeremy Tonet: Late 2024 for the 2025 year, we already have some of those.

Jeremy Tonet: Savings.

Keena: So across our broader suite of that opportunity set we see the coal to gas conversions datacenter demand and then incremental just power generation for increased electrification. So right now we are working with our counterparties and the amount of about 25 gigawatts of new opportunities.

Jeremy Tonet: Or coming in under budget baked in so you should not infer because we're planning on bringing projects in well under the original board sanction capital amounts that that will necessarily on its own drive us to the lower end of that range and as your as you can.

Theresa Chen: The next question comes from Theresa Chen with Barclays. Please go ahead. Morning.

Keena: That translates to almost six Bcf per day in various stages of development and as those projects progress.

Jeremy Tonet: Surmise, if we have opportunities for short cycle projects to add cash flow.

Theresa Chen: I'd like to go back to the increased cadence of project announcements through the remainder of 2025 and understand better what is driving this momentum. Have there been any valiant learnings coming out of your commercial discussions? Since you've been involved in more of them as time goes on, that better positions TC Energy to win in a competitive environment, which would hopefully translate to filling the backlog beyond 2025. Or is this project always going to be yours based on your, I think, Francois, the word used was incumbency of your asset positions?

To the extent, we can do so and stay within our budget, we will always consider those so.

Keena: They all look and feel like our previous projects highly credit worthy Counterparties counterparties long term take or pay commitments and in the five to seven times build multiple.

Jeremy Tonet: We're confident in the five five to six where we will fall within that range, we will have to see as the year unfolds and any other short cycle opportunities that present themselves.

Keena: These are not our.

Keena: Our guidance to you around the cadence of additional projects is not just based on a macro backdrop. It's based on a series of specific projects in which we are in late stages of negotiations and development.

Jeremy Tonet: Got it very helpful. Thank you.

Rob Hope: The next question comes from Rob Hope with Scotia Bank. Please go ahead.

Rob Hope: Good morning, everyone regarding the increased line of sight to hire project announcements over the next year is this just a function of potential projects moving further down the contracting path and you have now visibility on on.

Speaker Change: Okay I appreciate that color.

Theresa Chen: I would love to understand the thoughts behind that.

Speaker Change: And then maybe as a follow up in terms of data center or power related projects can we use north woods as a template, meaning looping and compression maybe a little bit of a lateral.

Francois Poirier: Theresa, Francois, I'll take this one. you know, as We connect to 8 of the 10 largest LDCs in the United States, and our strategy in the U.S. is predominantly focused on in front of the meter business. A lot of these utilities have to have a competitive process, so in many of these instances, even when you have incumbency, they have to make sure that they ensure competitive tension. Having said that, The utilities have to be very careful also and mindful of making sure that their... Considering. The rate impacts across all customer classes as they think about adding significant data center load, for example.

Contracts being signed and when you take a look at these projects are they mainly data center related or is there a good mix of coal to gas and LNG as well.

Speaker Change: With we'll call it $1 billion to $2 billion Canadian is the sweet spot.

Tina: Good morning, this is Tina and.

Speaker Change: Yes, when we think about our strategy, particularly in the U S. As we've mentioned before we are focused on serving the data center load through our existing utility.

Speaker Change: Yes, we've been really working to understand the pipeline as its been developing.

Speaker Change: And where we're focused right now is.

Speaker Change: System, and leveraging our footprint to do that so brownfield in corridor formidable constructed projects are where we're focused and I think when we rollout to add further projects in the future youre going to see a repeatable do you have that.

Speaker Change: Progressing projects that although not limited to just one demand element of overall growth.

Speaker Change: Power generation is really become a bright spot for us and where we're quite active and thats just taken a bit of time to progress and determine how we're going to best serve that load and so that's why we're seeing some of this pick up quite a bit.

Speaker Change: Thank you.

Francois Poirier: And so it's taken them a bit more time to sort through that. And what we've seen since the early part of this year is they have now sorted through quite a bit of that. And we're ready to put their plans into place and coming to us, and I'm sure others, and talking about. So that's the dynamic that has unfolded. And again, our footprint is strategic. And it allows for repeatable growth because we're located in parts of the country and have incumbency in the Midwest and also in places like Virginia, where there are large clusters of data centers under development.

Speaker Change: The next question comes from pathogen.

Speaker Change: So across our broader suite of that opportunity set we.

Speaker Change: Please go ahead.

Speaker Change: See the coal to gas conversions data center demand and then incremental just power generation for increased electrification. So right now we are working with our Counterparties and the amount of about 25 gigawatts of new opportunities and that translates to almost six bcf per day in various stages of development and as those.

Speaker Change: Good morning, I'd like to go back to the increased cadence of project announcements through the remainder of 2025 and.

Speaker Change: Understand better what is driving this momentum and doesn't any savings of earnings coming out of your commercial discussions since you've been involved in more of them as time goes on that better positions Tc energy to win in a competitive environment, which would hopefully translate to filling the backlog beyond two.

Speaker Change: Projects progress.

Speaker Change: I'll look and feel like our previous projects highly credit worthy Counterparties counterparties.

Speaker Change: Long term take or pay commitments and in the five to seven times build multiple Rob These are not our.

Speaker Change: 25.

Speaker Change: Or is this.

Speaker Change: Projects are always going to be yours based on Europe, and I think the word you use with incumbency of your asset positions and would love to understand you know its past behind us.

Speaker Change: Our guidance to you around the cadence of additional projects is not just based on a macro backdrop. It's based on a series of specific projects in which we are in late stages of negotiations and development.

Francois Poirier: Got it.

Francois Poirier: Thank you.

Greg Grant: And turning to the nuclear side of things beyond the near to medium term, would you be able to provide an update on the status of Brucey and the environmental assessment that's happening there? Yeah, I'd be happy to.

Francois: At <unk> Francois I'll take I'll take this one.

Speaker Change: You know as <unk>.

Francois: We connect to eight of the 10 largest.

Speaker Change: Okay I appreciate that color.

Speaker Change: And then maybe as a follow up in terms of data center or power related projects can we use north was a template, meaning looping and compression maybe a little bit of a lateral.

Francois: LDC in the United States and our strategy in the U S is predominantly focus on in front of the meter business.

Greg Grant: It's Greg, Theresa. Brucey continues with the development work that we had talked about last quarter. Through the impact and environmental assessment, we're engaging with local and Partners on OPS, the Saugeen Ojibway Nation, there's very strong alignment. This fits with the Ontario government's goals of adding almost a... that supports their 75% increase in power demand here by the end of the year. And I also just want to remind everybody that we actually have federal support as well. We did receive the $50 million for Men Are Can. I'm going to expand this so it's good to see the alignment across.

A lot of these utilities have to have a competitive process so and in many of these instances even when you have incumbency.

Speaker Change: We'll call it $1 billion to $2 billion Canadian is the sweet spot.

Francois: They have to make sure that they ensure competitive tension.

Speaker Change: Yes, when we think about our strategy, particularly in the U S. As we've mentioned before we are focused on serving the data center load through our existing utility system.

Francois: Having said that utilities.

Francois: Utilities have to be very careful also and mindful of making sure that they're considering.

Speaker Change: System, and leveraging our footprint to do that so brownfield in corridor formidable constructed projects are where we're focused and I think when we rollout further projects in the future you're going to see a repeatable do you have that.

Francois: The rate impacts across all customer classes as they think about adding significant data center load for example, and so it's taken them a bit more time to.

Francois: To sort through that and what we've seen since the early part of this year.

Francois: As they have now sorted through quite a bit of that and we're ready to put their plans into place and coming to us and I'm sure others and talking about them.

Speaker Change: Thank you.

Speaker Change: The next question comes from pathogen.

Greg Grant: And lastly, I would just add, we do believe we have a great... Locational Advantage on Bruce. It's a phenomenal management team that continues to be able to invest billions of dollars on time and on budget. So we think Brucey is the next best option for expansion on Ontario. Thank you.

Speaker Change: Lastly, please go ahead.

Francois: Getting capacity on our system. So that's the dynamic that has unfolded.

Speaker Change: Good morning, I'd like to go back to the increased cadence of project announcements to meet the remainder of 2025.

Francois: And.

Francois: Again, our footprint is strategic.

Francois: And it allows for repeatable growth because were.

Speaker Change: Understand better what is driving this momentum and there isn't any savings of earnings.

Francois: Located in parts of the country.

Francois: And have incumbency.

Speaker Change: How about your commercial discussions since you've been involved in more of them as time goes on that better positions Tc energy to win in a competitive environment, which would hopefully translate to filling the backlog beyond 2025.

Francois: In the Midwest and also in places like Virginia, where there are large clusters of data centers under development.

Erin Recknell: The next question comes from Erin Recknell with the TD Cohen. Please go ahead.

Francois Poirier: Good morning, all. down the road in order to maintain that guidance, just given the robust opportunity set, or is that not a... Maybe I'll start, Aaron. It's Francois.

Speaker Change: Got it thank you and turning to.

Speaker Change: The nuclear side of things beyond the near to medium term.

Speaker Change: Or is this once these projects are always going to be yours based on Europe, and I think the word you used was incumbency of your asset positions.

Speaker Change: Would you be able to provide.

Speaker Change: Date on the status of <unk> and the environmental assessment, what's happening there.

Speaker Change: Love to understand you know its possible.

Teresa: Yeah, I'd be happy to Gregg Teresa.

Francois: <unk> Francois I'll take I'll take this one.

Speaker Change: Bruce.

Speaker Change:

Speaker Change: With the development work that we had talked about last quarter are through the impact and environmental assessment, we're engaging with local and indigenous communities, including.

You know as.

Francois Poirier: I'll pass it over to Sean to give you a little bit more in terms of specifics. And what I'll just touch on in Mexico is our goals have not changed. Our first objective is to make sure all of our projects are flowing gas. and secondly, our cash flowing. We expect that to happen for all the pipes that we have in construction. by the end of 2025 or thereabouts.

Speaker Change: We connect to eight of the 10 largest.

Speaker Change: LDC in the United States and our strategy in the U S is predominantly focused on in front of the meter business. A lot of these utilities have to have a competitive process. So and in many of these instances even when you have incumbency.

Speaker Change: Our partners on OPM, the saga unit jewelry nation.

Speaker Change: There's very strong alignment.

Speaker Change: And this expansion that this fits with the Ontario government schools are adding almost 18.

Speaker Change: They have to make sure that they ensure competitive tension.

Speaker Change: 18, gigawatts of nuclear power to the grid Ah.

Speaker Change: Having said that.

Speaker Change: That supports their 75% increase in power demand here by the end of 2050 and also just wondering mind everybody that we actually have federal support as well we did receive the $50 million for mentor can and helping expand this really it's good to see the alignment across multiple jurisdictions and lastly, I would just.

Speaker Change: Utilities have to be very careful also and mindful of making sure that they're considering.

Francois Poirier: Find us on VDR South – site provided by Tronic Langley.com Our business in Mexico, North America is an intercontinental. We are the only gas transmission company that's in all three countries. We want to make sure that if we contemplate a divestiture of a portion of Mexico, it is at a value that is fair value and matches up with our view of the intrinsic value of the asset. So we're going to be patient. We're not going to rush that. We are focused on... heading towards a 10% of consolidated EBITDA over time for Mexico. I view Mexico as less of a source of deleveraging and more in terms of optimizing the portfolio.

Speaker Change: The rate impacts across all customer classes as they think about adding significant data center load for example, and so it's taken them a bit more time to.

Speaker Change: To sort through that and what we've seen since the early part of this year as they have now sorted through quite a bit of that and we're ready to put their plans into place and coming to us and I'm sure others and talking about them.

Speaker Change: We do believe we have a great existing locational advantage on Bruce.

Speaker Change: We have a phenomenal management team that continues to be able to invest billions of dollars on time and on budget. So we think Bruce C is the next best option for expansion on Ontario.

Speaker Change: Getting capacity on our system. So that's the dynamic that has unfolded.

Speaker Change: Thank you.

Speaker Change: Again, our footprint is strategic.

Speaker Change: The next question comes from Aaron Macneil with TD Cowen. Please go ahead.

Speaker Change: And it allows for repeatable growth because were.

Aaron MacNeil: Hi, Good morning, all thanks for taking my questions can you speak to the commitment for $6 billion to $7 billion in net capital expenditures and what role.

Speaker Change: Located in parts of the country.

Speaker Change: And have incumbency.

Speaker Change: In the Midwest and also in places like Virginia, where there are large clusters of data centers under development.

Aaron MacNeil: Selling down your interest in Mexico might play down the road in order to maintain that guidance just given the robust opportunity set or is that.

Sean O'donnell: So I wanted to give you that color before I handed it over to Sean. Yeah, thanks, Aaron. You know, as Francois said, you know, we have, there's multiple paths that we have to both fund the growth and achieve leverage targets and capital rotation, as you would expect, is always one of those and inside a capital rotation, more partnerships, probably than rotation is kind of our view of the world now, just just given the value of assets and incumbency. But it's, we've got a couple of years on this, and we've got a couple of levers. So it's it's one of several, but we're also waiting, as Francois said, we've got projects come on online, ahead of plan ahead of budget this year, we've got, we've got costs and capital initiatives internally.

Speaker Change: Got it thank you and turning to.

Aaron MacNeil: Not a factor in your view.

Speaker Change: The nuclear side of things beyond the near to medium term would you be able to provide.

Speaker Change: Maybe I'll start Erinn, it's Francois pass it over to Sean to give you a little bit more in terms of specifics and what I'll just touch on it in Mexico as are our goals have not changed our first.

Speaker Change: Date on the status of <unk> and the environmental assessment, what's happening there.

Speaker Change: Yeah, I'd be happy to Greg trees.

Speaker Change: Objective is to make sure all of our projects are flowing gas and then secondly are cash flowing.

Speaker Change: Bruce.

Speaker Change: With the development work that we had talked about last quarter through the impact and environmental assessment.

Speaker Change: We expect that to happen for all of the pipes that we have in <unk> and construction mm mm.

Speaker Change: We're engaging with local and indigenous communities, including.

Speaker Change: Our partners on OPM the saga in the nation.

Speaker Change: By the end of 2025 or thereabouts, depending on timing of.

Speaker Change: Theres very strong alignment.

Speaker Change: On <unk>, south and some of the land.

Sean O'donnell: And all those ingredients over the next 12 to 24 months are going to inform how exactly we fund and how much growth we fund.

Speaker Change: In this expansion this fits with the Ontario government schools are adding almost <unk>.

Speaker Change: Land acquisition, we're waiting for.

Speaker Change: And so this is really a first half of 2026 type of effort, we're going to be patient, we see a lot of value in our business in Mexico, North Americas Intercontinental system, and we're the only gas transmission company. That's in all three countries.

Speaker Change: 18, gigawatts of nuclear power to the grid.

Sean O'donnell: Different Lovers.

Speaker Change: Supports through 75% increase in power demand here by the end of 2050 and also just wondering mind everybody that we actually have federal support as well we did receive the $50 million from inner can and helping expand this really it's good to see the alignment across multiple jurisdictions and lastly, I would just add.

Francois Poirier: Switching to Canada, Francois, you've been a public advocate for more Canadian LNG projects. You also signed the Build Canada Now open letter to Mark Carney yesterday. So now that we have clarity in terms of the elect- Regulatory Office. Thanks for that question, Aaron. First, I'd underscore that, you know, between the liberal and conservative members of Parliament, we have over 300, um... Members. Supported Infrastructure Growth and Acceleration of Access to our Coast to Diversify our Customer Base, Reducing our Dependence on the United States, etc., etc. I've been very clear on the need for acceleration of timelines.

Speaker Change: We want to make sure that if we contemplate divestiture.

Speaker Change: A portion of Mexico.

Speaker Change: We do believe we have a great existing locational advantage on Bruce.

Speaker Change: It is at a value that is fair value and matches up with our view of the intrinsic value of the asset. So we're gonna be patient, we're not going to rush that.

Speaker Change: We have a phenomenal management team that continues to be able to invest billions of dollars on time and on budget. So we think Bruce C is the next best option for expansion on Ontario.

Speaker Change: We are focused on them.

Speaker Change:

Speaker Change: Heading towards a 10% of consolidated EBITDA overtime for Mexico, I view, Mexico is less of a source of deleveraging and more in terms of optimizing the portfolio. So I wanted to give you that color before I hand, it over to Sean.

Speaker Change: Thank you.

Speaker Change: The next question comes from Aaron Macneil with TD Cowen. Please go ahead.

Aaron MacNeil: Hi, Good morning, all thanks for taking my questions can you speak to the commitment.

Sean Odonnell: Yeah. Thanks Aaron.

Speaker Change: Or $6 billion to $7 billion in net capital expenditures and what role.

Sean Odonnell: <unk> said, we have there's multiple paths that we have to both fund the growth and achieved leverage targets and capital rotation. As you would expect is always one of those and inside of capital rotation.

Speaker Change: Selling down your interest in Mexico might play down the road in order to maintain that guidance just given the robust opportunity set or is that.

Francois Poirier: The letter from Industry, which was reiterated yesterday, is also very clear on in order to do that. and we look forward to collaborating with the federal government and cabinet ministers. to make that happen.

Speaker Change: More partnerships, probably then rotation is kind of our view of the world now just given the value of of assets in incumbency, but it's we've got a couple of years on this and we've got a couple of levers. So it's one of several but we're also waiting as Francois said, we've got projects come on online head of plan ahead of budget. This year, we've got we've got costs in cap.

Speaker Change: Not a factor in your view.

Sean O'donnell: Maybe I'll start Erinn, it's Francois pass it over to Sean to give you a little bit more in terms of specifics and what I'll just touch on it in Mexico as are our goals have not changed our first.

Sean O'donnell: <unk> is to make sure all of our projects are flowing gas and then secondly are cash flowing.

Francois Poirier: For us. In terms of LNG to the West Coast, we are optimistic about the prospects for Phase 2 of LNG Canada, but I'll be clear that that is LNG Canada's decision, our obligation. to deliver a bona fide class three estimate on the expansion that they will factor into their FID decision. which I believe will be coming at some point in 2026.

Speaker Change: Little initiatives internally and all of those ingredients over the next 12 to 24 months are going to inform how exactly we fund and how much growth we fund.

Sean O'donnell: We expect that to happen for all of the pipes that we have in construction.

Sean O'donnell:

Speaker Change: With each of those different levers, but thank you.

Sean O'donnell: By the end of 2025 or thereabouts, depending on timing of AR and VR South some of the land.

Speaker Change: Expense switched.

Speaker Change: Switching to Canada, Francois you've been a public advocate for more Canadian LNG projects, including LNG, Canada Phase. Two you also signed the build Canada now open letter to Mark Carney yesterday. So now that we have clarity in terms of the election outcome, what regulatory obstacles do you think the Canadian industry needs to own.

Sean O'donnell: <unk>, we're waiting for.

Sean O'donnell: And so this is really a first half of 2026 type of effort, we're going to be patient, we see a lot of value in our business in Mexico, North Americas Intercontinental system, and we're the only gas transmission company Thats in all three countries.

Francois Poirier: In terms of prospects for additional pipelines to the West Coast, there are a number of other projects in development and construction, the Silisms project. We sold them. Our PRDT project is in early stages of construction. I expect that that one has very strong prospects for moving forward.

Speaker Change: Come to get a positive.

Speaker Change: LNG, Canada phase III.

Sean O'donnell: We want to make sure that if we contemplate divestiture.

Speaker Change: Further Canadian LNG development more broadly.

Erin: Thanks for that question Erin.

A portion of Mexico.

Erin: First I'd underscore that between the Liberal and conservative members of Parliament, we have over 300.

Sean O'donnell: It is at a value that is fair value and matches up with our view of the intrinsic value of the asset. So we're going to be patient, we're not going to rush that.

Erin: Members, who supported infrastructure.

Francois Poirier: There are a number of other projects that are in construction. Cedar LNG is proceeding very, very well in terms of our contribution, which is the lateral and the meter station for the HIZLA and Pembina to proceed with their projects. Political Will and leadership and clarity of regulations with clear and enforceable timelines is what we're going to need as an industry to make sure we prosecute this opportunity successfully.

Sean O'donnell: We are focused on.

Erin: Growth and acceleration of.

Sean O'donnell:

Sean O'donnell: Heading towards a 10% of consolidated EBITDA over time for Mexico, I view, Mexico is less of a source of deleveraging and more in terms of optimizing the portfolio. So I wanted to give you that color before I hand, it over to Sean.

Erin: Access to our coast to diversify our customer base, reducing our dependence on the United States et cetera et cetera.

Erin: I've been very clear on the need for acceleration of timelines are the letter from industry, which was reiterated yesterday is also very clear on the needs.

Sean O'donnell: Yeah. Thanks Aaron.

Sean O'donnell: <unk> said, we have there's multiple paths that we have to both fund the growth and achieved leverage targets and capital rotation. As you would expect is always one of those inside of capital rotation more partnerships, probably then rotation that's kind of our view of the world now just given the value of assets and incumbency, but it's.

Erin: In order to do that.

Erin: And we look forward to collaborating with them the federal government and the cabinet ministers.

Erin: To make that happen for us in terms of LNG to the West Coast. We are optimistic about the prospects for phase two of LNG, Canada, but let's be clear that that is LNG Canada's decision our obligation is to deliver a boe.

Maurice Choy: The next question comes from Maurice Choy with RBC. Please go ahead. Thanks, and good morning, everyone.

Sean O'donnell: We've got a couple of years on this and we've got a couple of levers. So it's one of several but we're also waiting as Francois said, we've got projects come on online ahead of plan ahead of budget. This year, we've got we've got cost and capital initiatives internally and all of those ingredients over the next 12 to 24 months are going to inform how exactly we fund it.

Maurice Choy: Just following up on those comments about permitting reform, if I could just zoom in specifically to TC Energy, is this reform a gating factor to help unlock new gas infrastructure projects for you in Canada? And so is this merely CGL, or are there other ones being contemplated? Or is it more of a broad call to action that will spur more activity in the basin, motivating better volumes on NGTL and the mainline?

Erin: <unk> class III estimate on the expansion that they will factor into their decision, which I believe it will be coming at some point in 2026.

Sean O'donnell: How much growth we fund.

Sean O'donnell: Each of those different levers, but thank you.

Sean O'donnell: Switching to Canada, Francois you've been a public advocate for more Canadian LNG projects, including LNG, Canada Phase. Two you also signed the build Canada now open letter to Mark Carney yesterday. So now that we have clarity in terms of the election outcome what regulatory.

Erin: In terms of prospects for additional pipelines to the West coast. There are a number of other projects in development and construction of <unk> project we.

Francois Poirier: Maurice, it's broader, I would say, so the latter characterization... We see an opportunity for the basin's productivity to grow, healthy producer-customers. are good for the industry, and actually, TC Energy benefits from that. And whether we are expanding CGL or we are expanding NGTL to serve other pipelines that are going to the coast, that benefits us and benefits the industry.

Erin: Sold them or PR GT project is.

Erin: Is in early stages of construction Ah I expect that that one has very strong prospects for moving forward and there are a number of other projects that are in construction Cedar LNG is proceeding very very well in terms of.

Sean O'donnell: <unk> do you think the Canadian industry needs to overcome to get a positive Elena.

Sean O'donnell: LNG, Canada phase II.

Sean O'donnell: Further Canadian LNG development more broadly.

Sean O'donnell: Thanks for that question Erin.

Sean O'donnell: First I'd underscore that between the Liberal and conservative members of Parliament, we have over 300.

Erin: Our contribution which is the lateral in the meter station.

Francois Poirier: I did mention on the prior call that based on the opportunities that we have today, that the lion's share of our discretionary capital wants to flow to the U.S. That's where we see the highest risk-adjusted return. But having said that, having more competition. from customers for service and capacity on our systems in all three countries. Just enhances our opportunity set and allows us to deliver the greatest value for our shareholders by having more competition for our capacity.

Sean O'donnell: Members, who supported infrastructure growth and acceleration of.

Erin: In order to for the highest end pembina to to proceed with their projects. So it's just.

Sean O'donnell: So access to our coast to diversify our customer base, reducing our dependence on the United States et cetera et cetera.

Erin: Political will.

Erin: And leadership and clarity of regulations with clear and enforceable timelines as what we're going to need as an industry to make sure. We prosecute this opportunity successfully.

Sean O'donnell: I've been very clear on the need for <unk>.

Sean O'donnell: Acceleration of timelines are.

Sean O'donnell: The letter from industry, which was reiterated yesterday is also very clear on the needs.

Speaker Change: Understood. Thanks, I'll turn it back.

Speaker Change: The next question comes from Mike Carroll with RBC. Please go ahead.

Sean O'donnell: In order to do that.

Sean O'donnell: And we look forward to collaborating with the federal government and cabinet ministers.

Mike Carroll: Thanks, and good morning, everyone. Just following up on those comments about permitting reform, if I could just zoom and not specifically to Tc energy.

Sean O'donnell: To make that happen for us.

Maurice Choy: Upside to the 2027 Comparable EBITDA Guidance. from New Project. not just from FX. If that's a fair statement, do you see that as being, you know, reinforcing the five to seven percent CAGR moving you to the upper end of that range? Or is it more about moving above that range?

Speaker Change: This is true for them.

Sean O'donnell: In terms of LNG to the West Coast, we are optimistic about the prospects for phase two of LNG, Canada, but let's be clear that that is LNG Canada's decision our obligation is to.

Speaker Change: <unk> factor to help unlock new gas infrastructure projects for you in Canada.

Speaker Change: And so this is.

Speaker Change: Nearly CTO or are there other ones being contemplated or is it more of a broad call to action that will spur more activity in the basin motivating better volumes on NGL in mainline.

Sean O'donnell: Deliver a bonafide class III estimate on the expansion that they will factor into their decision.

Sean O'donnell: Hey, Maurice, it's Sean. I'll take that question to start. Look, you heard in Francois' comment that the execution success we had in 2024 is continuing into 2025 on time under budget. It's a little early in the year. So bear with us. We're being cautious as to how we reflect that in our estimates. But yes, we were confident that that, you know, that trend and capability, as Francois talked about, the team is getting it and has gotten it for the last few years. And that needs to carry through to 2025 and 2026.

Speaker Change: Or is it <unk>.

Sean O'donnell: Which I believe will be coming at some point in 2026.

Speaker Change: <unk> are I would say so the ladder characterization.

Speaker Change: <unk>.

Speaker Change: We see an opportunity for the basin its productivity to grow healthy producer customers.

Sean O'donnell: In terms of prospects for additional pipelines to the West coast. There are a number of other projects in development and construction of <unk> project, we saw.

Speaker Change: Are good for the industry and actually TC energy benefits from that and whether we are expanding <unk> or we are expanding and GTO to serve other pipelines that are going to the coast that benefits us and benefits the industry I did mentioned on the prior call that based on the opportunity set we have today.

Sean O'donnell: Sold them or PR GT project.

Sean O'donnell: In early stages of construction.

Sean O'donnell: I expect that that one has very strong prospects for moving forward.

Sean O'donnell: But we need to show you the proof before we're willing to kind of reflect any changes and guidance on that.

Sean O'donnell: There are a number of other projects that are in construction Cedar LNG is proceeding very very well in terms of.

Speaker Change: Hey.

Speaker Change: The lion's share of our discretionary capital wants to flow to the U S. That's where we see the highest risk adjusted returns.

Sean O'donnell: Perfect, thank you very much.

Sean O'donnell: Our contribution which is the lateral in the meter station.

Speaker Change: But having said that having more competition.

Ben Pham: The next question comes from Ben Pham with BMO. Please go ahead. All right, thanks. Good morning. Just come back to the Canadian election. Is there anything beyond policy reform that you could be expecting on that front that could potentially benefit your Canadian business? And is there anything else beyond the Western Canadian footprint in terms of growth opportunities like in East to West? Expansion. Is there anything on the East Coast? So, Ben, our focus has been more westbound than eastbound. We have an important customer base. through our main line in Ontario and Quebec, where we do see increased energy demand, increased electricity demand, which does translate into increased natural gas demand.

Sean O'donnell: In order to for the highest end pembina to to proceed with their projects. So it's just.

Speaker Change: From customers for service and capacity on our systems in all three countries.

Speaker Change: Just enhances our opportunity set and allows us to deliver the greatest value for our shareholders by having more competition for our capacity.

Sean O'donnell: Political will.

Sean O'donnell: And leadership and clarity of regulations with clear and enforceable timelines as what we're going to need as an industry to make sure. We prosecute this opportunity successfully.

Speaker Change: This doesn't make sense.

Speaker Change: Sure.

Speaker Change: Another comment you made.

Sean O'donnell: Thanks, I'll turn it back.

Speaker Change: It sounds like there is.

Speaker Change: Upside to the 2027 comparable EBITDA guidance from new projects.

Speaker Change: The next question comes from Mike Carroll with RBC. Please go ahead.

Speaker Change: Thanks, and good morning, everyone. Just following up on those comments about permitting reform, if I could just zoom and not specifically to Tc energy.

Speaker Change: Just from FX.

Speaker Change: That's a fair statement do you see that.

Speaker Change: That's being.

Speaker Change: Reinforcing the 7% CAGR I'm moving to the upper end of that range.

Speaker Change: Three forum, a gating factor to help unlock new gas infrastructure projects for you in Canada and there is still.

Speaker Change: Is it more about moving above that range.

Sean Odonnell: Hey, Morris as Sean I'll take that question to start.

Speaker Change: Nearly CTO or are there other ones being contemplated or.

Speaker Change: Look you heard in France, while his comment that the execution success. We had in 2024 is continuing into 2025.

Francois Poirier: You've seen throughputs on our main line increase, you know, quarter one of 2025 compared to the first quarter of last year. So it does present growth opportunities for us across the entire country. In terms of, in addition to policy change, what needs to happen, if I understood your question correctly, We are going to need to go out and compete for the business. So it's a bit of a cultural change where we're going to need to see more collaboration between governments, the private sector, and Indigenous leaders to make sure that we're providing policy stability and certainty to attract capital from.

Speaker Change: Or is it more of a broad call to action that will spur more activity in the basin motivating better volumes on NGL in the mainline.

Speaker Change: On the on time under budget, it's little early in the year. So.

Speaker Change: Or is it broader.

Speaker Change: With us we're being cautious as to how we reflect that in our estimates, but yes, we were confident that that you know.

Speaker Change: I'd say, so the latter characterization.

Speaker Change: Yeah.

Speaker Change: We see an opportunity for the basin productivity to grow healthy producer customers.

Speaker Change: Did that trend in capabilities Francois you talked about the team is getting it and has gotten over the last two years and that that needs to carry through to 25 and 26, but we need to show you. The proof before we're willing to kind of reflect any changes in guidance on that.

Speaker Change: Are good for the industry and actually TC energy benefits from that and whether we are expanding <unk> or we are expanding <unk> to serve other pipelines that are going to the coasts that benefits us and benefits the industry I did mentioned on the prior call that based on the opportunity set we have today.

Speaker Change: Perfect. Thank you very much.

Speaker Change: The next question comes from Ben Pham with BMO. Please go ahead.

Francois Poirier: from LNG customers. So we're optimistic that can happen. As I said, Both the Liberal and Conservative parties were advocating for accelerated development of pipeline infrastructure, which we think This is a great macro backdrop for a company like this.

Speaker Change: Alright, Thanks, good morning, just domestic.

Speaker Change: Hey.

Speaker Change: The lion's share of our discretionary capital wants to flow to the U S. That's where we see the highest risk adjusted returns.

Speaker Change: Election Susan.

Speaker Change: Anything beyond policy reform that.

Speaker Change: You could be expecting on that front that could potentially benefit your Canadian business.

Speaker Change: But having said that having more competition.

Speaker Change: From customers for service and capacity on our systems in all three countries.

Speaker Change: Is there anything else beyond the western Canadian footprint in terms of growth opportunities like an east to west.

Speaker Change: Just enhances our opportunity set and allows us to deliver the greatest value for our shareholders by having more competition for our capacity.

Francois Poirier: Okay, got it.

Sean O'donnell: Second question on Mexico and the... maybe more specifically on PEMEX and their quarter. Are you, are you effectively quite insulated from what's happening there, whether it's your existing assets or, or timing on, on the soft project? Hey, Ben, it's Sean. Yeah, we're our contracts just to be clear in Mexico are 100% with CFE that that is our customer that is an investment grade national utility. We have no commercial arrangements whatsoever with Pemex. So I'd probably just clarify that and leave the question unless there's something I'm Yeah, it's just a more indirect impact than anything in Mexico.

Speaker Change: Expansions or anything on the east coast.

Speaker Change: So then our focus has been more westbound and eastbound.

Speaker Change: This doesn't make sense.

Speaker Change: Image off with another comment you made.

Speaker Change: We have an important customer base.

Speaker Change: It sounds like there was.

Speaker Change: Through our mainline in Ontario, and Quebec.

Speaker Change: Upside to the 2027 comparable EBITDA guidance from new projects.

Speaker Change: Where we do see.

Speaker Change: Increased energy demand increased electricity demand, which does translate into increased natural gas demand <unk>.

Speaker Change: Just from FX.

Speaker Change: That's a fair statement do you see that.

Speaker Change: It's being.

Speaker Change: <unk> seen throughput on our mainline increase.

Speaker Change: Reinforcing the 5% to 7% CAGR I'm moving to the upper end of that range.

Speaker Change: Quarter, one of 2025 compared to the first quarter of last year. So it does prevent present growth opportunities for us.

Speaker Change: Is it more about moving above that range.

Speaker Change: Hey, Morris, it's Sean I'll take that question to start.

Speaker Change: Across the entire country in terms of in addition to policy change what needs to happen.

Speaker Change: Look you heard in France, while his comment that the execution success. We had in 2024 is continuing into 2025.

Sean O'donnell: Like there's, there's nothing, what's happening in Pan-Mex is not going to do just the timing. Implications of SOFR just brought in an African government and credit and everything just to get more indirect impact indirect.

If I understood your question correctly.

Speaker Change: On the on time under budget, it's little early in the year. So.

Speaker Change:

Speaker Change: We are going to need to go out and compete for the business. So it's a bit of a cultural change where we're going to need to see more collaboration between governments and the private sector and indigenous leaders to make sure that we're providing.

Speaker Change: Bear with us, we're being cautious as to how we reflect that in our estimates, but yes, we were confident that that.

Francois Poirier: Okay, I'll offer you a little bit of a follow-up. The growth plan that CFE very recently laid out is not about PEMEX. It's about providing electricity and upgrading fuel oil plants throughout the entire country. It's not about PEMEX. It's about modernizing grid and plant and bringing power to various parts of the country. And that's independent of PEMEX entirely. So we'd be happy to follow up offline on that, but we're an entirely CFE kind of focused customer, partner and customer in that regard. Okay.

Speaker Change: Did that trend in capabilities Francois you talked about the team is getting it and has gotten over the last two years and that's that needs to carry through to 25 and 26, but we need to show you. The proof before we're willing to kind of reflect any changes in guidance on that.

Speaker Change: Policy stability and certainty to attract capital from.

Speaker Change: From LNG customers. So we're optimistic that could happen as I said.

Speaker Change: Both the Liberal and conservative parties, we're advocating for accelerated development of pipeline infrastructure, which we think is a great macro backdrop for a company like Tc.

Speaker Change: Perfect. Thank you very much.

Speaker Change: The next question comes from Ben Pham with BMO. Please go ahead.

Ben Pham: Alright, Thanks, good morning, just going back to <unk>.

Speaker Change: Election season.

Francois Poirier: All right. Thank you.

Ben Pham: Anything beyond policy reform that.

Speaker Change: Okay got it.

Speaker Change: And second question on Mexico.

John Mackay: The next question comes from John Mackay with Goldman Sachs. Please go ahead. Thanks, John.

You could be expecting on that front that could potentially benefit your Canadian business.

Speaker Change: Yes.

Speaker Change: More specifically on Pemex in third quarter.

Ben Pham: Is there anything else beyond the western Canadian footprint in terms of growth opportunities like an east to west.

Speaker Change: Are you are you in fact quite insulated from what's happening there, whether it's your existing assets or our timing on on a small project.

Ben Pham: Expansions or anything on the east coast.

So.

Ben Pham: So then our focus has been more westbound and eastbound.

Speaker Change: Hey, Ben it's Sean Yes, we're our contracts just to declare in Mexico are 100% with Cfe that that is our customer that has an investment grade national utility, we have no commercial arrangements whatsoever with Pemex.

Ben Pham: We have an important customer base.

Ben Pham: Through our mainline in Ontario, and Quebec.

Ben Pham: Where we do see it.

Tina Faraca: This is Tina. As I mentioned before, although we have focus across multiple growth areas, right now, where we're very active is in the power generation space related to serving natural gas demand for those sectors, including incremental generation, data centers and coal to gas. They're across multiple systems. We're seeing interest in Ohio, Virginia, Kansas, Indiana, Illinois, Louisiana, Nevada, et cetera. It's really the power of our footprint is really showing up here related to where these opportunities are progressing. We will see likely more activity on some of our larger assets, which are ANR and Columbia and Columbia Gulf, given the corridor of where this power generation activity is occurring.

Speaker Change: So I'd, probably just clarify that and leave the question unless there's something I missed for Ya.

Ben Pham: Increased energy demand increased electricity demand, which does translate into increased natural gas demand <unk>.

Speaker Change: Yes, I was just thinking more.

Speaker Change: Indirectly impact.

Speaker Change: This thing in Mexico, I guess, yes.

Ben Pham: <unk> seen throughput on our mainline increase.

Speaker Change: And I think what's happening Pemex is not going to do.

Ben Pham: Quarter, one of 2025 compared to the first quarter of last year. So it does prevent present growth opportunities for us.

Speaker Change: Just the timing.

Speaker Change: Implications of salt.

Speaker Change: This brought it on African governments, and credit and everything just thinking more indirect impact in direct.

Ben Pham: Across the entire country in terms of in addition to policy change what needs to happen.

Speaker Change: Okay I'll offer you a little bit of a follow up.

Ben Pham: If I understood your question correctly.

Speaker Change: The growth plan that Cfe very recently laid out it is not about pemex, its about providing electricity and in upgrading fuel oil plants throughout the entire country is not about Pemex is about modernizing grid and plat and bringing power to various parts of the country and that's independent of Pemex.

Ben Pham:

Ben Pham: We're going to need to go out and compete for the business. So it's a bit of a cultural change where we're going to need to see more collaboration between the governments and the private sector and indigenous leaders to make sure that we're providing.

Ben Pham: Policy stability and certainty to attract capital from.

Speaker Change: Entirely so we'd be happy to follow up offline on that but.

Tina Faraca: whether that be coal to gas, new electrification, or data center load. Also, if you if you look at some of where our large utilities are centered across our assets, you can expect that as their loads be able to also provide service to them from that perspective. Also, from a basin perspective, where this gas would be coming from. You may be familiar that we're attached to some very large basins, whether that's the WCSB, Appalachia, and Hainesville. And so many of our projects would be sourcing from those basins that we're already connected to, and that, in some cases, we have a very large incumbent.

Speaker Change: We are an entirely cfe kind of focused customer partner and customer in that regard not pemex.

Ben Pham: From LNG customers. So we're optimistic that could happen as I said.

Speaker Change: Okay alright, thank you.

Ben Pham: Both the Liberal and conservative parties, we're advocating for accelerated development of pipeline infrastructure, which we think is a great macro backdrop for a company like Tc.

Speaker Change: The next question comes from John Kim with Goldman Sachs. Please go ahead.

John Kim: Hey, good morning team. Thanks for the time I just want to go back to those six Bcf a day of potential projects being talked about.

John Kim: Any way to frame that as effectively kind of in basin, and the Marcellus and Utica versus out of basin, either Virginia, or Midwest and for that latter group, how you'd be thinking about effectively getting incremental supply to those new demand sources.

Ben Pham: Okay got it.

Ben Pham: And second question on Mexico.

Ben Pham: Yes.

Ben Pham: More specifically on Pemex in third quarter.

Speaker Change: Are you are you in fact quite insulated from what's happening there, whether it's your existing assets or our timing on on a small project.

Tina Faraca: I appreciate that. Thank you.

John Mackay: And second question for me, maybe just Sean, going to your comments on, you know, I guess, partnering on new projects to kind of manage the capital needs and keep watching the leverage level. You just talk a little bit more about what that what that means. Is that kind of like what we saw in Columbia, where you, you know, effectively sell down an interest, but maintain operational control? Is it selling a stake in a project specifically? Or is it? I don't know, maybe what you're doing with Williams on Socrates, right, kind of indirectly partnering with someone using, you know, your assets and something else they're going to build?

Thanks, John This is Tina yeah, as I mentioned before although we have focused across multiple growth areas right now where we're very active is in the power generation space related to serving natural gas demand for those sectors, including incremental generation.

Speaker Change: So.

Sean O'donnell: Hey, Ben it's Sean Yes, we're our contracts just to be clear in Mexico are 100% with Cfe that that is our customer that has an investment grade national utility, we have no commercial arrangements whatsoever with Pemex.

Sean O'donnell: So I'd, probably just clarify that and leave the question unless there's something I missed for Ya.

Speaker Change: Data centers in coal to gas.

Speaker Change: There there across multiple systems, we're seeing interest in <unk>.

Sean O'donnell: Yes, I was just thinking more.

Sean O'donnell: Indirect impact.

Sean O'donnell: This thing in Mexico ideas.

Speaker Change: Ohio, Virginia, Kansas, Indiana, Illinois, Louisiana, Nevada.

Sean O'donnell: And I think what's happening Pemex is not going to do.

Sean O'donnell: Just the timing.

Speaker Change: It's really the power of our footprint is really showing up here related to where these opportunities are progressing.

Sean O'donnell: Implications of salt.

Sean O'donnell: It's brought it on African governments, and credit and everything just thinking more indirect impact in direct.

Sean O'donnell: Yeah, John, good question. Look, I think, candidly, the bias is probably shifting a little bit to partnerships, right? We don't like selling assets that have all this kind of embedded optionality and growth and finding partners that are willing to value that help us grow it and help us, you know, Not pressure the balance sheet to capture this growth. That's likely, that's likely the avenue, especially with, you know, some of the larger projects kind of towards the end of the decade, you heard Greg talk about.

Speaker Change: We will see likely more activity on some of our larger assets, which our anr and Columbia and Columbia Gulf given the corridor, where the power is generation activities occurring.

Speaker Change: Okay I'll offer you a little bit of a follow up.

Speaker Change: The growth plan that Cfe very recently laid out it is not about pemex, its about providing electricity and in upgrading fuel oil plants throughout the entire country is not about Pemex is about modernizing grid and plant.

Speaker Change: That would be coal to gas the electrification or data center load.

Speaker Change: Also if you look at some of where our large utilities are centered across our assets you can expect that as their loads increase we.

Speaker Change: And bringing power to various parts of the country and that's independent of Pemex entirely so we'd be happy to follow up offline on that but.

Speaker Change: We would be able to also provide service to them from that perspective.

Sean O'donnell: And what I might add to that, John, is... In Canada, if we're looking at pursuing data center opportunities where it's more of a discreet greenfield project or a set of assets, that does lend itself well to partnership, particularly with Indigenous communities. We have a very clear roadmap for greenfield infrastructure development in Canada now. We feel it's very important to involve Indigenous communities from day one in that, and not only in terms of consultation and design, but as partners. In a circumstance where we're looking at a new system or a new project that can be ring-fenced.

Speaker Change: We are an entirely cfe kind of focused customer partner and customer in that regard not pemex.

Speaker Change: Also from the basin perspective, where this gas will be coming from you may be familiar that were attached to some very large basins, whether that's the WCS be on Appalachia, and haynesville and so many of our projects would be sourcing from those basins that were already connected to and that in <unk>.

Speaker Change: Okay alright, thank you.

John Mccain: The next question comes from John Mccain with Goldman Sachs. Please go ahead.

Speaker Change: Hey, good morning team. Thanks for the time I just want to go back to those six Bcf a day of potential projects being talked about.

Speaker Change: Cases, we have that very large incumbency with.

Speaker Change: Any way to frame that as effectively kind of in basin, and the Marcellus and Utica versus out of basin, either Virginia, or Midwest and for that latter group, how you'd be thinking about effectively getting incremental supply to those new demand sources.

Speaker Change: I appreciate that thank you and second question for me, maybe just Sean going to your comments on.

Speaker Change: I guess partnering on new projects to kind of manage the capital needs and keep watching the leverage level. You can just talk a little bit more about what that what that means is that it sounded like what we saw on Columbia, where you effectively sell down an interest but may not maintain operational control is it selling its stake in a project.

Sean O'donnell: That would be, I think... That makes sense.

Speaker Change: Thanks, John This is Tina yeah, as I mentioned before although we have focused across multiple growth areas right now where we're very active is in the power generation space related to serving natural gas demand for those sectors, including incremental generation.

Keith Stanley: Appreciate the time. Thank you.

Speaker Change: Specifically or is it.

Keith Stanley: The next question comes from Keith Stanley with Wolf Research. Please go ahead. Hi, good morning. Wanted to follow up on the data center strategy. The Williams Project in Ohio is obviously right by Columbia and presumably sources gas from Columbia. Recognize you're more focused on front of the meter for the U.S., but can you maybe give any thoughts on why that wasn't a fit for you as a project? And then when you're looking at potential integrated solutions in Canada, inclusive of power, what criteria are you looking at in terms of contract duration and returns to get into that business?

Speaker Change: And then maybe what Youre doing with Williams on Socrates right kind of indirectly partnering with someone using.

Speaker Change: Data centers in coal to gas.

Speaker Change: Your assets and someone else lurgan adults. Thanks.

Speaker Change: There there across multiple systems, we're seeing interest in <unk>.

Speaker Change: Yes, John Good question look I think candidly the bias is probably shifting a little bit the partnerships right.

Ohio, Virginia, Kansas, Indiana, Illinois, Louisiana, Nevada.

Speaker Change: We don't like selling assets that have all of this is kind of embedded optionality and growth of finding partners that are willing to value that and help us grow it.

Speaker Change: It's really the power of our footprint is really showing up here related to where these opportunities are progressing.

Speaker Change: And help us.

Speaker Change: We will see likely more activity on some of our larger assets, which our anr and Columbia and Columbia Gulf given the corridor, where the power is generation activities occurring.

Speaker Change: Not pressure the balance sheet to capture this growth that's likely that's likely the avenue.

Speaker Change: Especially with some of the larger projects kind of towards the end of the decade, you heard Gregg talk about.

Speaker Change: And what I might add to that John is.

Keith Stanley: Yeah, thanks, Keith, for that question. We have a great corridor through Ohio where a lot of that data center load is appearing and certainly we will Participate where it makes sense for us from a capacity perspective, and or perhaps short laterals as necessary, but keeping the focus as well on the larger connections that would be through our utility-based cuts. So it's really a risk preference for us. We want to see long-term contracts. at a 5 to 7 times build multiple, and we have a very long runway of those types of projects.

Speaker Change: That would be coal to gas the electrification or data center load.

Speaker Change: In Canada, we're looking at pursuing datacenter opportunities, where it's more of a discrete greenfield project or a set of assets that does lend itself well to partnership, particularly with indigenous communities.

Also if you look at some of where our large utilities are centered across our assets you can expect that as their loads increase we.

Speaker Change: We would be able to also provide service to them from that perspective.

Speaker Change: Also from a basin perspective, where the gas will be coming from you may be familiar that were attached to some very large basins, whether that's the WCS be in Appalachia, and haynesville and so many of our projects would be sourcing from those basins that were already connected to and that and some.

Speaker Change:

Speaker Change: We have a very clear roadmap for Greenfield infrastructure development in Canada now we feel it's very important to involve indigenous communities from day one in that.

Speaker Change: And not only in terms of consultation and design, but as partners. So.

Greg Grant: I'll turn it over to Greg for... Sure. Happy to add a little bit on to that, Keith. We talked a bit about the demand we're seeing, obviously, on the power side. And as you think about return and contracting, we already have an amazing pipeline. that low rest. High of returning opportunities. So I just say, as we think about branching into those complimentary solutions, we're going to continue to test it against the existing Okay, thank you for that.

A circumstance, where we're looking at a new system or a new project that can be ring fenced.

Speaker Change: Cases, we have that very large incumbency with.

Speaker Change: I appreciate that thank you and second question for me, maybe just Sean going to your comments on you know.

Speaker Change: That would be I think a different approach.

Speaker Change: I guess partnering on new projects to kind of manage the capital needs and keep watching the leverage level you just talk a little bit more about what that what that means is that kind of like what we saw on Columbia, where you effectively sell down of interest, but it may not maintain operational control is it selling its stake in a project.

That makes sense I appreciate the time thank you.

Speaker Change: Beth.

Speaker Change: The next question comes from Keith Stanley.

Speaker Change: Please go ahead.

Keith Stanley: Hi, Good morning wanted to follow up on the data center strategy.

Keith Stanley: The Williams project in Ohio is obviously right by Colombia, and presumably sources gas from Colombia Rec.

Speaker Change: Pacifically or is it.

Speaker Change: I don't know, maybe what youre doing with Williams on Socrates right kind of indirectly partnering with someone using.

Greg Grant: And on Northwoods, I'm just curious on any more details you can share on the project. Are you de-bottlenecking a particular area on A&R? Are you building a lateral for new power, just, you know, new pipe, compression, just any any more specifics on the project? Yeah, thanks. So we're really excited that we announced that project today on our A&R system, 400 million cubic feet a day, $900 million, five to seven times build multiple. As I mentioned before, it's just right in our fairway of how we like to progress projects. So expanding our existing infrastructure, this is focused on Midwest demand, and will be likely just combination of looping and compression activities to increase capacity into that region.

Speaker Change: Recognize youre more focused on front of the meter for the U S. But can you maybe give any thoughts on why that wasn't a fit for you as a project and then when Youre looking at potential integrated solutions in Canada inclusive of power.

Speaker Change: Your assets and someone else lurgan adults. Thanks.

Yes, John Good question look I think candidly the bias is probably shifting a little bit the partnerships right.

Speaker Change: Criteria are you looking at in terms of contract duration and returns to get into that business.

Speaker Change: We don't like selling assets that have all of this kind of embedded optionality and growth of finding partners that are willing to value that and help us grow it.

Speaker Change: Yes, thanks, Keith for that question.

And help us.

Speaker Change: Not pressured the balance sheet to capture this growth that's likely that's likely the avenue.

Speaker Change: We have a great corridor through Ohio, where a lot of that data center load is appearing and certainly we will.

Speaker Change: Especially with some of the larger projects kind of towards the end of the decade, you heard Greg talk about.

Speaker Change: Participate where it makes sense for us from a capacity perspective, and or perhaps short laterals as necessary by keeping the focus as well on the larger connections that would be through our utility based customers.

Speaker Change: And what I might add to that John is.

Speaker Change: In Canada, we're looking at pursuing datacenter opportunities, where it's more of a discrete greenfield project or a set of assets that does lend itself well to partnership, particularly with indigenous communities.

Greg Grant: And we have a really strong record of progressing those types of projects. on time and on budget.

Speaker Change: So it's really a risk preference for us we want to see long term contracts.

Speaker Change: I had a five to seven times build multiple.

Speaker Change: And we have a very long runway of those types of projects.

Speaker Change:

Robert Catellier: The next question comes from Robert Catellier with CIDC Capital Markets. Please go ahead. Hi, good morning. I have two questions here. First, there was an attempt to improve permitting in the US through alternative arrangements for NEPA compliance. What's TC Energy's take on this? And specifically, do you have an appetite to elect to have projects reviewed under these alternative arrangements?

Speaker Change: We have a very clear roadmap for Greenfield infrastructure development in Canada now we feel it's very important to involve indigenous communities from day one in that.

Greg: Turn it over to Greg for questions on that.

Speaker Change:

Speaker Change: Sure.

Speaker Change: Happy to add a little bit on to that and we talked a bit about the demand. We're seeing obviously on the on the power side and as you think about return and contracting we already have an amazing pipeline.

Speaker Change: And not only in terms of consultation and design, but as partners. So.

Speaker Change: In a circumstance, where we're looking at a new system or a new project that can be ring fenced.

Speaker Change: That low risk.

Speaker Change: Higher returning opportunities. So I would just say as we think about branching into those complementary solutions, we're going to continue to test it against the existing footprint.

Speaker Change: That would be I think a.

Tina Faraca: Hi, Robert, this is Tina. You know, with respect to general permitting reform, you know, at the macro level, we're seeing a number of executive orders that focus on streamlining and simplifying regulation of overall permitting process. So we're firmly in favor of anything that achieves this in a pragmatic and durable way. Right now, what we really need to see is congressional action that puts these orders into law. And so we're really focused as an industry in clarifying that timing and certainty of progress through legislative action. And without that, we will have to just follow our current regulations as we progress the process.

Speaker Change: <unk> approach.

Speaker Change: That makes sense I appreciate the time thank you.

Speaker Change: Beth.

Speaker Change: Yeah.

Speaker Change: Okay. Thank you for that and on North Woods I'm, just curious on any more details you can share on the project are you Debottlenecking of particular area on Anr are you building a lateral for new power just new pilot compression just any any more specifics on the project.

Speaker Change: The next question comes from Keith Stanley with Wolfe Research. Please go ahead.

Speaker Change: Hi, Good morning wanted to follow up on the data center strategy.

Speaker Change: The Williams project in Ohio is obviously right by Colombia, and presumably sources gas from Colombia.

Speaker Change: Recognize youre more focused on front of the meter for the U S. But can you maybe give any thoughts on why that wasn't a fit for you as a project and then when Youre looking at potential integrated solutions in Canada inclusive of power.

Speaker Change: Yeah. Thanks, So we're really excited that we announced that project today on our Anr system 400 million cubic feet, a day and $900 million five to seven times build multiple.

Speaker Change: As I mentioned before it's just right in our fairway as of how we'd like to progress projects. So expanding our existing infrastructure. This is focused on Midwest demand.

Speaker Change: Criteria are you looking at in terms of contract duration and returns to get into that business.

Francois Poirier: Yeah, that makes a lot of sense.

Francois Poirier: And then just maybe to summarize a lot of what we've heard today, just can you summarize how the volatility caused by trade policy and the Canadian election results impact where you're finding the best risk adjusted returns? And maybe as a follow up, do you think tariffs have any implications for growth in Mexico and your plans for an eventual fall down there. Yeah, Robert, it's Francois. I'll address that question. As we said before, we don't take volumetric or commodity price risk. our pipeline projects. And so in the near term, there's No impact, and I think as demonstrated today by our strong and very predictable financial results with the volatility that we've seen over the last few months.

Speaker Change: Yes, thanks, Keith for that question.

Speaker Change: And we'll be likely just combination of looping and compression activities to increase capacity into that region and we have a really strong record of progressing those types of projects.

Speaker Change: We have a great corridor through Ohio, where a lot of that data center load is appearing and certainly we will.

Speaker Change: Participate where it makes sense for us from a capacity perspective, and or perhaps short laterals as necessary, but keeping the focus as well on the larger connections that would be through our utility based customers.

Speaker Change: On time and on budget.

Speaker Change: Thank you.

Speaker Change: The next question comes from Robert Kelly.

Speaker Change: <unk> capital markets. Please go ahead.

Speaker Change: So it's really a risk preference for us we want to see long term contracts.

Speaker Change: Hey, good morning, two questions here first there was an attempt to improve permitting in the U S through alternative arrangements for NEPA compliance Whats Tc Energy's take on this specifically do you have an appetite to a lifetime projects reviewed under these alternative arrangements.

Speaker Change: I had a 5% to seven times build multiple.

Speaker Change: And we have a very long runway of those types of projects.

Greg: Turn it over to Greg for questions on that.

Speaker Change:

Speaker Change: Sure.

Speaker Change: Happy to add a little bit onto that you know we talked a bit about the demand. We're seeing obviously on the on the power side and as you think about return and contracting we already have an amazing pipeline.

Tina: Hi, Robert this is Tina.

Tina: With respect to general permitting reform you know at the macro level, we are seeing a number of executive orders that focus on streamlining and simplifying regulation of all overall permitting process. So we are firmly in favor of anything that achieved this in a pragmatic and durable way.

Francois Poirier: Longer term, we're focused on our ability to deliver our projects on time and on budget or better, and some of these tariffs The tariffs that have been applied could apply some inflationary pressure on raw materials and things of that nature. Right now, when we look at our capital spend in Canada, its predominately at Bruce and we have 95% Canadian Domiciled Supply Chain. For our projects that are underway in the United States, it's almost exclusively, certainly in terms of major components of supply, a U.S. domestic supply chain. And in Mexico, you know, we front-end loaded. Several years of capital into the SGP project.

Speaker Change: That low risk.

Speaker Change: High returning opportunities. So I'd, just say as we think about branching into those complementary solutions, we're going to continue to test it against the existing footprint.

Tina: Right now what we really need to see his congressional action that puts these actions these orders into law and so we're really focused as an industry in in clarifying that that timing uncertainty of progress through legislative action.

Speaker Change: Yeah.

Speaker Change: Okay. Thank you for that and on North Woods I'm, just curious on any more details you can share on the project are you Debottlenecking, a particular area on anr or you're building a lateral for new power just new pilot compression just any any more specifics on the project.

Tina: Without that we will have to just follow our current rate regulations as we progressed the projects.

Tina: Yeah.

Yeah. Thanks, So we're really excited that we announced that project today on our Anr system 400 million cubic feet, a day and $900 million five to seven times build multiple.

Tina: Florida.

Tina: And then just maybe to summarize.

Tina: A lot of what we've heard today just can you summarize how the volatility caused by trade policy and the Canadian election results impact, where you're finding the best risk adjusted returns.

Speaker Change: As I mentioned before it's just right in our fairway as of how we'd like to progress projects. So expanding our existing infrastructure. This is focused on Midwest demand.

Francois Poirier: So while we are looking at with our partner and customer, the CFE, a long-term planning scenario where there will be a need for additional capacity on a number of their systems. um... don't see that happening in the immediate future and so it should not have an impact on uh... On the composition of our portfolio and it should not create pressure for us to look for a partner or some other way of monetizing Mexico before we feel we're going to get fair value. Right, so if I take this all in, it doesn't sound like the risk adjusted returns have really changed.

There's a follow up do you think.

Tina: Tariffs.

Tina: Have any implications for growth in Mexico, and your plans for an eventual slowdown there.

Speaker Change: And we will be likely just combination of looping and compression activities to increase capacity into that region and we have a really strong record of progressing those types of projects.

Tina: Yeah, Robert It's Francois I'll I'll address that question.

Tina: As we've said before we don't take volumetric or commodity price risk on.

Speaker Change: On time and on budget.

Speaker Change: Thank you.

Tina: Our pipeline projects and so in the near term.

Speaker Change: The next question comes from Robert Gabelli.

Tina: There is no impact and I think as demonstrated today by our strong and very predictable financial results with the volatility that we've seen over the last few months.

Speaker Change: We see capital markets. Please go ahead.

Robert Gabelli: Hi, Good morning, two questions here first there was an attempt to improve permitting in the U S through alternative arrangements for NEPA compliance Whats Tc Energy's take on this and specifically do you have an appetite to elect tower projects reviewed under these alternative arrangements.

Tina: Longer term, we're focused on our ability to deliver our projects on time and on budget or better and some of these tariffs.

Francois Poirier: So you're still finding good opportunities pretty much across the portfolio, but maybe with the best opportunities still in the US, is that the way to look at it? Thank you. Yes, that's exactly right, Robert. We look at our discretionary capital, and as I said, it wants to flow to the highest risk-adjusted returns. That's definitely the U.S. I expect it to continue to be the U.S. for the next several quarters. until and if we see progress on permitting and other matters in Canada. to compete for capital. But even then, it's going to have to compete for capital internally with projects in other jurisdictions.

Tina: Hi, Robert this is Tina.

Tina: With respect to general permitting reform at the macro level, we are seeing a number of executive orders that focus on streamlining and simplifying regulation. Although overall permitting process. So we are firmly in favor of anything that achieved this in a pragmatic and durable way.

Tina: The tariffs that have been applied could.

Tina: Apply some inflationary pressure on raw materials and things of that nature.

Tina: Right now when we look at our capital spend in Canada, it's predominantly at Bruce and we have a 95% Canadian domiciled supply chain for our projects that are underway in the United States, It's almost exclusively.

Tina: Right now what we really need to see his congressional action that puts these acts these orders into law and so we're really focused as an industry in in clarifying that that timing uncertainty of progress through legislative action.

Tina: Certainly in terms of major.

Tina: Components of supply.

Tina: U S domestic <unk>.

Tina: Supply chain and in Mexico, We front end loaded them several years of capital into it.

Francois Poirier: Okay, thank you.

Tina: Without that we will have to just follow our current rate regulations as we progress the projects.

Operator: Ladies and gentlemen, this concludes the question and answer session. If there are any further questions, please contact Investor Relations at TC Energy.

Tina: The STP projects so.

Tina: Yeah.

Tina: Florida.

Tina: While we are looking at them with our partner and customer the Cfe.

Tina: And then just maybe to summarize.

Gavin Wylie: I will now turn the call over to Gavin Wylie for any closing remarks. Please go ahead. Yeah, once again, thank you everyone for your participation this morning and your interest in TC Energy. As the operator stated, if we didn't get to your question today, please feel free to reach out this morning. It's either myself or the Investor Relations team will be happy to get back to you first thing.

Tina: A lot of what we've heard today just can you summarize how the volatility caused by trade policy and the Canadian electric results impact, where you're finding the best risk adjusted returns.

Tina: Our long term planning scenario, where there will be a need for.

Tina: Additional capacity on.

Tina: A number of their systems.

Speaker Change: As a follow up do you think.

Tina: I don't see that happening in the immediate future and so it should not have an impact on them on.

Tina: Tariffs.

Gavin Wylie: So thanks again for your interest, thanks again for the time this morning, and we look forward to our next update in late June.

Tina: Have any implications for growth in Mexico, and your plans for an eventual slowdown there.

Tina: The composition of our portfolio.

And it.

Tina: Yeah, Robert It's Francois I'll I'll address that question.

Tina: It should not create pressure for us to look for a partner or some other way of monetizing Mexico before we feel that we're going to get fair value.

Operator: This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

Speaker Change: As we've said before we don't take volumetric or commodity price risk on.

Tina: Right.

Speaker Change: Our pipeline projects and so in the near term.

Tina: Thats, all and it doesn't sound like.

Tina: The risk adjusted returns have really changed we're still finding good opportunities pretty much across the portfolio, but maybe with the.

Speaker Change: There is no impact and I think as demonstrated today by our strong and very predictable financial results with the volatility that we've seen over the last few months.

Tina: The opportunity is still in the U S.

Tina: Got it.

Robert: Yes, yes, that's exactly right Robert.

Speaker Change: Longer term, we're focused on our ability to deliver our projects on.

Speaker Change: We look at our discretionary capital and as I said, it wants to Florida to the highest risk adjusted returns that's definitely the U S. I expect it to continue to be the U S for the next several quarters.

Speaker Change: On time and on budget or better and some of these tariffs.

Speaker Change: The tariffs that have been applied could you know.

Speaker Change: Until and if we see progress on permitting and other.

Speaker Change: Apply some inflationary pressure on raw materials and things of that nature.

Speaker Change: Other matters in Canada to compete for capital, but even then it's going to have to compete for capital internally with projects in other jurisdictions.

Speaker Change: Right now when we look at our capital spend in Canada, it's predominantly at Bruce and we have about 95% Canadian domiciled supply chain for our projects that are underway in the United States, It's almost exclusively.

Speaker Change: Okay. Thank you.

Speaker Change: And then gentlemen, this concludes the question and answer session. If there any further questions. Please contact investor relations at Tc energy.

Speaker Change: Certainly in terms of major.

Speaker Change: Components of supply.

Speaker Change: U S domestic.

Ill turn the call over to Kevin Riley for any closing remarks. Please go ahead.

Speaker Change: Supply chain and in Mexico, We front end loaded I'm sorry.

Kevin Riley: Once again, thank you everyone for your participation. This morning, and your interest in TC energy as the operator stated if we didn't get to your question today. Please.

Speaker Change: Several years of capital into them the STP project so.

Speaker Change: While we are looking at them with our partner and customer the Cfe a law.

Kevin Riley: Please feel free to reach out this morning, it's either myself or the Investor relations team will be happy to get back to you first thing. So thanks again for your interest. Thanks again for the time. This morning, and we look forward to our next update in late July.

Speaker Change: Long term planning scenario, where there will be a need for it.

Speaker Change: Additional capacity on.

Speaker Change: A number of their systems.

Kevin Riley: This brings to a close today's conference call. You may disconnect. Your lines. Thank you for participating and have a pleasant day.

Speaker Change: I don't see that happening in the immediate future and so it should not have an impact on on.

Speaker Change: On the composition of our portfolio.

Speaker Change: And it.

Speaker Change: It should not create pressure for us to look for a partner or some other way of monetizing Mexico before we feel that we're going to get fair value.

Speaker Change: Right. So they take this all then it doesn't sound like.

Speaker Change: The risk adjusted returns have really changed we're still finding good opportunities pretty much across the portfolio, but maybe with the.

Speaker Change: The opportunity is still in the U S.

Speaker Change: Got it.

Robert Gabelli: Yes, yes, that's exactly right Robert.

Robert Gabelli: We look at our discretionary capital and as I said, it wants to Florida to the highest risk adjusted returns that's definitely the U S. I expect it to continue to be the U S for the next several quarters.

Robert Gabelli: Until and if we see progress on permitting and other.

Robert Gabelli: Other matters in Canada.

Robert Gabelli: To compete for capital, but even then it's going to have to compete for capital internally with projects in other jurisdictions.

Speaker Change: Okay. Thank you.

Speaker Change: Ladies and gentlemen. This concludes the question and answer session. If there are any further questions. Please contact investor relations at Tc energy.

Speaker Change: Ill turn the call over to Kevin Riley for any closing remarks. Please go ahead.

Speaker Change: Once again, thank you everyone for your participation. This morning, and your interest in TC energy as the operator stated if we didn't get to your question today. Please.

Speaker Change: Please feel free to reach out this morning, it's either myself or the Investor relations team will be happy to get back to you first thing. So thanks again for your interest. Thanks again for the time. This morning, and we look forward to our next update in late July.

This brings to a close today's conference call. You may disconnect. Your lines. Thank you for participating and have a pleasant day.