TransCanada to Highlight Sustainable Long-term Growth at Investor Day; Dividend Expected to Increase 8 to 10 Per Cent Annual...
13 November 2018 - 10:00PM
News Release – TransCanada Corporation (TSX, NYSE: TRP)
(TransCanada) will host its annual Investor Day in Toronto today
where it will provide a financial update and review strategic plans
for its natural gas pipelines, liquids pipelines and energy
businesses in Canada, the United States and Mexico.
“Our $94 billion portfolio of energy infrastructure assets are
expected to generate record financial results in 2018 underpinned
by strong market fundamentals,” said Russ Girling, TransCanada’s
president and chief executive officer. “Looking forward, we will
continue to advance $36 billion in commercially secured projects
through 2023 that will expand and extend our asset footprint across
North America.”
As those projects enter service, TransCanada expects comparable
earnings before interest, taxes, depreciation and amortization
(EBITDA) to grow to approximately $10 billion in 2021, a 35 per
cent increase when compared to comparable EBITDA of $7.4 billion in
2017. Significantly, 95 per cent of comparable EBITDA is expected
to come from regulated assets or long-term contracts.
At the same time, the company continues to methodically advance
more than $20 billion of projects under development. They include
Keystone XL and Bruce Power life extensions as well as numerous
other organic growth opportunities that are expected to emanate
from TransCanada’s five operating businesses across North
America.
“Based on the confidence we have in our business plans, we
expect to grow our common share dividend at an average annual rate
of eight to 10 per cent through 2021,” added Girling. “Notably, our
dividend outlook is supported by expected growth in earnings and
cash flow and in line with our historically strong dividend
coverage ratios.”
On November 1, 2018, TransCanada announced that its Board of
Directors declared a quarterly dividend of $0.69 per common share
for the quarter ending December 31, 2018. The quarterly amount
equates to $2.76 per common share on an annualized basis and
represents a 10 per cent increase over the amount declared in 2017.
TransCanada’s Board of Directors has increased the common share
dividend in each of the last eighteen years, from $0.80 per common
share in 2000 to $2.76 per common share in 2018. The current common
share dividend equates to a dividend yield of approximately 5.3 per
cent based on the closing price of TransCanada’s common shares on
the Toronto Stock Exchange on November 12, 2018.
“With approximately $10 billion of new projects expected to
enter service by early 2019, we are well positioned to fund the
remainder of our secured capital program through internally
generated cash flow, access to capital markets and further
portfolio management activities,” concluded Girling. “We view the
issuance of common shares under our At-The-Market Equity Program as
being complete at this time but expect to operate our Dividend
Reinvestment Program for some portion of 2019. This will allow us
to continue to prudently fund our significant capital program in a
manner that is consistent with achieving targeted credit metrics
that support our strong credit ratings. Going forward we will
continue to evaluate share count growth against further portfolio
management activities.”
Today’s investor event will be webcast beginning at 8 a.m. EST
(6 a.m. MST). Interested parties may participate in the webcast
available on TransCanada’s website at
https://www.transcanada.com/events or via the following URL:
http://www.gowebcasting.com/9781.
A copy of the presentation and the webcast, which will be
archived and accessible for replay, will be available on the
website.
With more than 65 years' experience, TransCanada is a leader in
the responsible development and reliable operation of North
American energy infrastructure including natural gas and liquids
pipelines, power generation and gas storage facilities. TransCanada
operates one of the largest natural gas transmission networks that
extends more than 91,900 kilometres (57,100 miles), tapping into
virtually all major gas supply basins in North America. TransCanada
is a leading provider of gas storage and related services with 653
billion cubic feet of storage capacity. A large independent power
producer, TransCanada owns or has interests in approximately 5,700
megawatts of power generation in Canada and the United States.
TransCanada is also the developer and operator of one of North
America's leading liquids pipeline systems that extends
approximately 4,900 kilometres (3,000 miles), connecting growing
continental oil supplies to key markets and refineries.
TransCanada's common shares trade on the Toronto and New York stock
exchanges under the symbol TRP. Visit www.transcanada.com to
learn more, or connect with us on social media.
Forward Looking Information This release
contains certain information that is forward-looking and is subject
to important risks and uncertainties (such statements are usually
accompanied by words such as "anticipate", "expect", "believe",
"may", "will", "should", "estimate", "intend" or other similar
words). Forward-looking statements in this document are intended to
provide TransCanada security holders and potential investors with
information regarding TransCanada and its subsidiaries, including
management's assessment of TransCanada's and its subsidiaries'
future plans and financial outlook. All forward-looking statements
reflect TransCanada's beliefs and assumptions based on information
available at the time the statements were made and as such are not
guarantees of future performance. Readers are cautioned not to
place undue reliance on this forward-looking information, which is
given as of the date it is expressed in this news release, and not
to use future-oriented information or financial outlooks for
anything other than their intended purpose. TransCanada undertakes
no obligation to update or revise any forward-looking information
except as required by law. For additional information on the
assumptions made, and the risks and uncertainties which could cause
actual results to differ from the anticipated results, refer to the
Quarterly Report to Shareholders dated October 31, 2018 and the
2017 Annual Report filed under TransCanada's profile on SEDAR at
www.sedar.com and with the U.S. Securities and Exchange
Commission at www.sec.gov.
Non-GAAP Measures This news release contains
references to non-GAAP measures, including comparable earnings,
comparable earnings per common share, comparable EBITDA, comparable
distributable cash flow, comparable distributable cash flow per
common share and comparable funds generated from operations, that
do not have any standardized meaning as prescribed by U.S. GAAP and
therefore are unlikely to be comparable to similar measures
presented by other companies. These non-GAAP measures are
calculated on a consistent basis from period to period and are
adjusted for specific items in each period, as applicable except as
otherwise described in the Condensed consolidated financial
statements and MD&A. For more information on non-GAAP measures,
refer to TransCanada's Quarterly Report to Shareholders dated
October 31, 2018.
Media Inquiries:Grady Semmens403.920.7859 or
800.608.7859
TransCanada Investor & Analyst
Inquiries:David Moneta / Duane Alexander403.920.7911 or
800.361.6522
TC Energy (TSX:TRP)
Historical Stock Chart
From Mar 2024 to Apr 2024
TC Energy (TSX:TRP)
Historical Stock Chart
From Apr 2023 to Apr 2024