Canada's TC Energy Q4 EBITDA rises 13% on power demand from data centers

Overview

• Canada energy infrastructure firm's Q4 comparable EBITDA rose 13% yr/yr

• Q4 segmented earnings rose 15% yr/yr

• Company announced 3.2% dividend increase, marking 26th consecutive yr of growth

Outlook

• TC Energy expects 2026 comparable EBITDA between C$11.6 bln and C$11.8 bln

• Company anticipates 2026 capital expenditures of C$6.0 bln to C$6.5 bln

• TC Energy sees 2026 net capital expenditures at C$5.5 bln to C$6.0 bln

Result Drivers

• SAFETY AND RELIABILITY - Strong safety performance and asset reliability led to 15 flow records and significant financial gains, per CEO François Poirier

• NATURAL GAS DEMAND - Record power demand from data centers and LNG exports drove all-time delivery records in U.S. and Canadian pipeline systems

• EXPANSION PROJECTS - Sanctioned $0.6 bln in expansion projects, reflecting confidence in future growth and disciplined capital allocation

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the oil & gas transportation services peer group is "buy"

• Wall Street's median 12-month price target for TC Energy Corp is C$80.00, about 4.3% below its February 12 closing price of C$83.59

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nGNX4HSXjY

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