“`html
TC Energy Reports First-Quarter Earnings for 2025
TC Energy Corporation (TRP) announced its first-quarter 2025 adjusted earnings of 66 cents per share, falling short of the Zacks Consensus Estimate of 70 cents. This represents a decline from 92 cents in the same quarter last year, attributed to weaker performance in the Power and Energy Solutions segment.
The company reported quarterly revenues of $2.5 billion, which missed the Zacks Consensus Estimate by $18 million and reflects a 19.8% year-over-year decrease.
TC Energy’s comparable EBITDA was C$2.7 billion, a slight increase of 1% from the previous year, and exceeded our model estimate by 2.4%.
Additionally, TRP’s board announced a quarterly dividend of 85 Canadian cents per common share for the period ending June 30, 2025. This dividend will be paid on July 31, 2025, to shareholders on record as of the close of business on June 30.
TC Energy Corporation Price, Consensus and EPS Surprise
TC Energy Corporation price-consensus-eps-surprise-chart | TC Energy Corporation Quote
Segment Performance Overview
Canadian Natural Gas Pipelines reported a comparable EBITDA of C$890 million, an increase of 5.2% year-over-year. This growth is largely due to higher flow-through costs and better contributions from Coastal GasLink. The figure also beat our forecast of C$887.1 million.
Deliveries from Canadian Natural Gas Pipelines averaged 27.6 billion cubic feet per day (Bcf/d), marking an 8% increase compared to the first quarter of 2024. The NGTL System achieved a record of 17.8 Bcf on February 18, 2025, while Canadian Mainline receipts averaged 5 Bcf/d, a 14% rise from the same period last year.
U.S. Natural Gas Pipelines also saw a rise in comparable EBITDA, reporting C$1.4 billion, which is a 4.7% increase from the previous year and above our estimate of C$1.1 billion.
The U.S. Natural Gas Pipelines recorded daily average flows of 31 Bcf/d, a 5% increase from the first quarter of 2024, with GTN achieving a record 3.2 Bcf on February 19, 2025. Additionally, LNG facility deliveries averaged 3.5 Bcf/d, also up 5% compared to the prior year.
Mexico Natural Gas Pipelines reported a comparable EBITDA of C$233 million, up 8.9% from C$214 million in the previous year. However, this figure did not meet our expectation of C$265.7 million.
Flows from Mexico Natural Gas Pipelines averaged 3.1 Bcf/d, a 6% increase from the first quarter of 2024, with a new daily flow record of 4.1 Bcf set on March 31, 2025.
Power and Energy Solutions experienced a decline in comparable EBITDA to C$224 million, a 30% drop from C$320 million in the prior year. This was largely due to lower contributions from Bruce Power, which is undergoing the Unit 4 Major Component Replacement (MCR), and decreased power prices in Canadian markets.
Bruce Power reported 87% availability during the first quarter of 2025, while TC Energy’s cogeneration fleet achieved 98.6% availability due to fewer outages and efficient maintenance scheduling.
Financial Health and Guidance
As of March 31, 2025, TC Energy’s capital investments totaled C$1.8 billion. The company held cash and cash equivalents of C$2 billion and long-term debt of C$45 billion, yielding a debt-to-capitalization ratio of 61.1%.
Looking ahead, TC Energy aims to bring around C$8.5 billion in projects online in 2025, including the Southeast Gateway pipeline project. The company is on track regarding timelines and is managing costs effectively below initial projections, focusing on high-return initiatives.
The company expects comparable EBITDA for 2025 to be in the range of C$10.7 billion to C$10.9 billion. Earnings per common share are projected to remain aligned with guidance provided in the 2024 Annual Report, although lower than last year’s levels. Capital expenditures are anticipated to fall between C$6.1 billion and C$6.6 billion gross, and C$5.5 billion to C$6 billion net.
Project Updates
The Southeast Gateway pipeline is now ready for service, with Comisión Nacional de Energía (CNE) approving the contracted rate and all requirements for its launch. Final rate approval from the CNE is expected by the end of May, paving the way for the pipeline’s operation.
With 100% of capacity contracted with CFE and no requests for interruptible service, the pipeline—capable of carrying 1.3 Bcf/d over 715 kilometers—was completed approximately 13% below the original cost estimate.
Additionally, the Northwoods project, which expands the company’s ANR system, has received approval and is designed to deliver 0.4 Bcf/d capacity to meet the demand for natural gas-fired electricity generation.
“`
Midwest Economic Developments Highlighted by Key Financial Reports
The U.S. Midwest continues to grow economically, focusing on upcoming projects like data centers. Notably, a major initiative is set to be operational by late 2029 at an estimated cost of around $0.9 billion, with projected returns promising a build multiple between five and seven times.
Unit 5 MCR Developments
On April 2, 2025, the Ontario Independent Electricity System Operator approved the final cost and schedule for the Unit 5 MCR, valued at C$1.1 billion. This project expects to begin in the fourth quarter of 2026, aiming for a return to service in early 2030.
Transportation Rate Adjustments
ANR and GLGT have each submitted Section 4 Rate Cases to the Federal Energy Regulatory Commission (FERC), seeking increases to their maximum transportation rates. These changes are anticipated to take effect on November 1, 2025, pending refunds. The companies plan to engage in a collaborative process to reach mutually beneficial agreements with customers through settlement discussions.
Earnings Snapshot
While TC Energy Corporation (TRP) has reported its first-quarter earnings in detail, several other key players in the sector have also released their financial results.
Liberty Energy (LBRT)
Liberty Energy reported an adjusted net income of 4 cents per share for the first quarter of 2025, slightly above the Zacks Consensus Estimate of 3 cents. Despite operational efficiencies and enhanced utilization of frac and wireline fleets, this result fell short compared to the previous year’s profit of 48 cents due to decreased service activity.
As of March 31, Liberty had approximately $24.1 million in cash and cash equivalents, with long-term debt totaling $210 million, resulting in a debt-to-capitalization ratio of 9.6%.
Halliburton Company (HAL)
Halliburton reported an adjusted net income of 60 cents per share for the first quarter of 2025, matching Zacks’ expectations but down from 76 cents reported the year prior. Despite a year-over-year revenue decline of 6.7% to $5.4 billion, this figure exceeded the Zacks Consensus Estimate of $5.3 billion, highlighting mixed regional performance.
As of March 31, Halliburton held approximately $1.8 billion in cash and cash equivalents, with $7.2 billion in long-term debt, reflecting a debt-to-capitalization ratio of 40.8%.
Baker Hughes (BKR)
Baker Hughes reported first-quarter 2025 adjusted earnings of 51 cents per share, surpassing the Zacks Consensus Estimate of 47 cents and improving from the prior year’s level of 43 cents.
By March 31, Baker Hughes had cash and cash equivalents of $3.277 billion, while its long-term debt stood at $5.969 billion, resulting in a debt-to-capitalization ratio of 25.9%.
Overall, the financial reports from these companies underscore a dynamic oil and gas sector, revealing both challenges and opportunities for growth in the Midwest region.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
