- TC Energy (TRP +2.3%) rallies after reporting stronger than expected Q4 earnings, helped in part by lower operating costs for its U.S. natural gas pipelines.
- Q4 adjusted earnings rose to C$1.1B (US$867.3M), or C$1.15/share, from C$970M, or C$1.03/share, in the year-ago quarter.
- Q4 comparable EBITDA slipped 0.6% Y/Y to C$2.3B.
- Earnings from TC's U.S. and Canadian natural gas pipelines rose more than 9% each in the quarter.
- The company says it expects to take a "substantive" non-cash charge against Q1 earnings due to the decision by President Biden to revoke the presidential permit for its Keystone XL pipeline, but it is not yet sure of the size.
- While the Keystone XL decision was disappointing, "we have a large and diversified asset base that continues to perform extremely well and are advancing $20B of secured capital projects," TC Energy CEO Francois Poirier says.
- TC expects its C$6.6B Coastal Gaslink pipeline in British Columbia to be in service by 2023 with costs forecast to "increase significantly," citing "scope increases, permit delays and the impacts from COVID-19."
- The company also raised its quarterly dividend to C$0.87/share from C$0.81.