ANR & GLGT Shipper Meeting July 25, 2019 | Lake Geneva, WI
2019 ANR & GLGT Shipper Meeting Welcome & Safety Moment Erik Anderson| Manager, Long Term & Storage Marketing
Golf Course Safety
Today’s Agenda 1. Welcome & Safety Moment • Erik Anderson 2. TC Energy Commercial Update • Jas Bertovic 3. Pricing & Marketing Update • Colin Lindley 4. NGTL & Canadian Mainline Update • Ashley Stowkowy 5. Business Development Update • Jim Downs, Roger Williams 6. Operations Update • Monica Edwards 7. Activities / Adjourn • Erik Anderson
Forward-looking information This presentation includes certain forward-looking information, including future -- oriented well as globally. You can read more about these risks and others in our April 26, 2018 financial information or financial outlook, which is intended to help current and potential Quarterly Report to Shareholders and 2017 Annual Report filed with Canadian securities investors understand management’s assessment of our future plans and financial outlook, regulators and the SEC and available at TCEnergy.com. and our future prospects overall. Statements that are forward-looking are based on certain As actual results could vary significantly from the forward-looking information, you should assumptions and on what we know and expect today and generally include words like not put undue reliance on forward-looking information and should not use future-oriented anticipate, expect, believe, may, will, should, estimate or other similar words. information or financial outlooks for anything other than their intended purpose. We do not Forward-looking statements do not guarantee future performance. Actual events and update our forward-looking statements due to new information or future events, unless we results could be significantly different because of assumptions, risks or uncertainties related are required to by law. to our business or events that happen after the date of this presentation. Our forward- This presentation contains reference to certain financial measures (non-GAAP measures) looking information in this presentation includes statements related to future dividend that do not have any standardized meaning as prescribed by U.S. generally accepted growth and the future growth of our core businesses. accounting principles (GAAP) and therefore may not be comparable to similar measures Our forward-looking information is based on certain key assumptions and is subject to risks presented by other entities. These non-GAAP measures may include Comparable Earnings, and uncertainties, including but not limited to: Our ability to successfully implement our Comparable Earnings per Common Share, Comparable Earnings Before Interest, Taxes, strategic priorities and whether they will yield the expected benefits; the operating Depreciation and Amortization (Comparable EBITDA), Funds Generated from Operations, performance of our pipeline and energy assets; amount of capacity sold and rates achieved Comparable Funds Generated from Operations, Comparable Distributable Cash Flow (DCF) in our pipeline businesses; the availability and price of energy commodities; the amount of and Comparable DCF per Common Share. Reconciliations to the most closely related GAAP capacity payments and revenues from our energy business; regulatory decisions and measures are included in this presentation and in our April 26, 2018 Quarterly Report to outcomes, including those related to recent FERC policy changes, outcomes of legal Shareholders filed with Canadian securities regulators and the SEC and available at proceedings, including arbitration and insurance claims; performance and credit risk of our TCEnergy.com. counterparties; changes in market commodity prices; changes in the regulatory environment; changes in the political environment; changes in environmental and other laws and regulations; competitive factors in the pipeline and energy sectors; construction and completion of capital projects; costs for labour, equipment and materials; access to capital markets, including the economic benefit of asset drop downs to TC PipeLines, LP; interest, tax and foreign exchange rates, including the impact of U.S. Tax Reform; weather cyber security; technological developments; and economic conditions in North America as
New Name, Same Reliable Service Delivering the energy people need, every day. Responsibly. Collaboratively. With Integrity. Safely. 6
2019 ANR & GLGT Shipper Meeting TC Energy U. S. Commercial Update Jasmin Bertovic | Vice President, Marketing & Optimization
Update – U.S. Natural Gas Pipelines leadership Stan Ch Chapman Executive vice president and president Troy Tally Josh Gibbon Russ Mahan James Eckert Jasmin Bertovic Millie Moran VP, Gas Pipeline VP, Regulatory and VP, Business Sr VP, Gas Operations VP, Marketing VP, Gas Operations Projects Strategy Development
Update – Commercial Marketing organization Jas Be Ja Bertovic VP, Commercial Marketing (Vacant) Cheryl Dobbins Colin Lindley John Richardson Jon Howe Director, Business Manager, Pricing Director, Marketing West Director, Marketing East Director, Short-term Marketing Optimization GTN/N.Baja/Tuscarora/ TCO, Columbia Gulf, GTN/N.Baja/Tuscarora NBPL PNGTS, Hardy Mitch Meyer Lonnie Lozano Storage Colin Strom Sean McDonald NBPL TCO/Columbia Gulf Bill Fonda Diana Roberts Mitch Meyer Colin Strom ANR/GLGT Adam Lakhani ANR/GLGT Lonnie Lozano Erik Anderson Dan Junek Kyle Bundy Amy Sowa
TC Energy transformation 2000 2019 Total assets* Capital program* Total assets* Capital program* = $20 billion = $0.5 billion = $94 billion = $36 billion
Advancing $30-billion secured capital program* *Certain projects are subject to various conditions including corporate and regulatory approvals. For purposes of this illustration, maintenance capital is excluded.
World energy demand growing 2018 by source 2040 by source 599 quadrillion BTUs 739 quadrillion BTUs 129 quads 63% increase 79 quads 17% 229 quads 13% 31% 200 quads 33% 28 38 quads quads 5% 5% 161 quads 27% 161 quads 22% 131 quads 182 quads 22% 25% 39% increase Source: EIA Energy Outlook 2018
U.S. gas demand grows at reduced rate 2018 by source 2040 by source 100 quadrillion BTUs 103 quadrillion BTUs 44% increase 13 quads 9 quads 13% 9% 40 quads 37 quads 40% 8 36% 7 quads quads 8% 7% 11 quads 13 quads 10% 13% 30 quads 35 quads 30% 34% 17% increase Source: EIA Energy Outlook 2018
Projected 31 Bcf/d demand increase by 2030 Nor orth th Amer erica Res/com 2018 2018 To Asia 101. 101.5 Bcf Bcf/d Industrial Power gen Other Nor orth th Amer erica To Asia 2030 2030 LNG 132. 132.0 Bcf Bcf/d To Asia To Europe Dom Domestic dem demand d incr increase ses s at at a a 1.2% 1.2% gro growth rat ate; LN LNG expo xports incr increas ase gro growth rat ate e to o 2.2% 2.2% Source: TCE USNG internal forecast
LNG exports, electric generation & industrials drive growth Lo Lower-48 de demand gr growth 100 00 90 90 14 14 14 14 14 14 11 11 80 80 5 70 70 27 27 26 26 26 26 25 25 22 22 60 60 cf/d 50 50 Bcf 40 40 32 32 32 32 29 29 30 30 30 30 30 30 20 20 22 22 22 22 21 21 21 21 22 22 10 10 0 201 019 202 025 203 030 203 035 204 040 Res/com Electric gen Industrial LNG exports Source: EIA 2019 Annual Energy Outlook
TC Energy’s footprint centered around two of the three largest North American supply basins WCSB Over 100 Ov 100+ yea ears s of of rec ecoverable su supply 16.1 16. 18.8 18. 21.2 21. • North America has 2.3% CAGR 4,10 4,100 Tcf of technically recoverable reserves Rockies • >1,000 Tcf un under 8.9 8. 8. 8.8 8. 8.5 $4/MMBtu $4/M Mid-Con Appalachia • >200 Tcf at t $0 $0 cost cos San Juan 12. 12.2 12.2 12. 12. 12.8 2.2 2. 1.6 1. 1. 1.5 Total N.A. Permian NA LNG Imports • ~1,000 Tcf located in 0.28 0. 28 0. 0.30 30 28.1 28. 37.9 37. 42.4 42. 0. 0.26 26 Ap Appala lach chia, , WCSB, and 3.5% CAGR Gulf Coast Permian 8. 8.3 17.7 17. 19.6 19. 7.3% CAGR 98.4 98. 120.7 120. 131. 131.8 22.2 22. 23. 23.4 25. 25.5 Mexico 4.1 4. 2.5% CAGR 2. 2.9 2.9 2. 2018 2025 2030 *All in Bcf/d Sou ource ce: TCE USNG Internal Forecast, Potential Gas Committee
TC Energy poised to capture next wave of growth *Dots represent opportunities on an asset and do not necessarily indicate a discrete project
2019 ANR Energy Insights Survey • Overall participation rate of 42 percent • 182 surveys completed – 101 anonymous • 28 anonymous surveys by phone (38%) • 73 anonymous surveys online (40%) 2018 2018 2019 2019 Inc Increase Phon hone intervie iews 58 73 15 Internet sur In surveys 91 109 18 Tot otal 149 182 33
2019 ANR Energy Insights Survey Overall ll Averages by y Module le 10 8.8 8.7 9 8.4 8.4 Service Provided 8.3 8.3 8.3 8.2 8.2 8.2 8.2 8.1 8.1 8.1 8.1 8.1 8.1 8 8 7.8 7.7 7.7 8 7.5 7.5 7.4 7.4 7.4 7.3 7 5.8 6 5.2 5 of Ser 4 Level of 3 2 Le 1 0 2017 2018 2019
Recommend
More recommend
