TC Energy beats profit estimates as natural gas, power demand surges

By Pooja Menon

Feb 13 (Reuters) - Canadian pipeline operator TC Energy TRP.TO beat analysts' estimates for fourth-quarter profit on Friday, helped by record natural gas flows across its North American network as soaring power demand from data centers boosted volumes.

Major pipeline operators are doubling down on expectations of rising natural gas demand as LNG export facilities expand, and cryptocurrency miners and artificial-intelligence systems ramp up electricity use.

Executives on a post-earnings call said they expect North American natural gas demand to increase by 45 billion cubic feet per day (bcfpd) from 2025 to 2035.

The company expects an additional C$12 billion of projects in origination, focused on brownfield, in-corridor expansions, which leverage its footprint to support investment-grade utility customers, they said. Its shares rose 1.8% in morning trading.

Calgary-based TC Energy placed C$8.3 billion of projects into service in 2025 and expects to place nearly C$4 billion into service this year. It anticipates full-year capital expenditure to be between C$6.0 billion and C$6.5 billion.

Jefferies analysts said the pace of final investment decisions would be critical and, while FIDs in the quarter were low, the backlog and new open seasons could support acceleration in 2026.

The company in January closed a non-binding open season for 0.5 bcfpd on its Columbia Gas Transmission system near Columbus, Ohio, attracting 1.5 bcfpd of total bids, three times the proposed project capacity.

Canadian natural gas pipeline deliveries averaged 27.2 bcfpd during the quarter, up 5% from a year earlier. U.S. pipeline flows rose 9.5% to 29.6 bcfpd, while deliveries to LNG facilities jumped 21% to 3.9 bcfpd.

The company raised its quarterly dividend by 3.2% to C$0.8775 per share. It posted an adjusted per-share profit of 98 Canadian cents, above analysts' average expectations of 92 Canadian cents, according to data compiled by LSEG.

($1 = 1.3619 Canadian dollars)