Alberta-based TC Energy last week reported third-quarter 2019 net earnings of $739 million, or 79 cents per share, Kallanish Energy reports, which compares to net income of $928 million, or $1.02 per share in Q3 2018.
Net cash provided by operations was $1.6 billion.
“During the third quarter of 2019, our diversified portfolio of regulated and long-term contracted assets continued to perform very well,” said president and CEO Russ Girling, in a statement.
Assets sales have no impact on earnings per share
“Despite significant asset sales that have accelerated the strengthening of our balance sheet, comparable earnings per share increased 4% compared to the same period last year while comparable funds generated from operations of $1.8 billion were 15% higher,” he said.
“The increases reflect the robust performance of our legacy assets and contributions from approximately $8.2 billion of growth projects that have entered service to-date in 2019. These increases were partially offset by lower contributions from approximately $3.4 billion of assets that were monetized during the first nine months of the year,” he said.
The company is continuing to develop the Keystone XL oil pipeline and the Bruce Power nuclear power plant life extension. That and other growth could boost dividend growth by 8% to 10% through 2021, the company said.
West Path Delivery Program announced
In related news, TC Energy announced the West Path Delivery Program, an expansion of its NOVA Gas Transmission and Foothills Systems in western Canada.
The $1.2 billion project will connect with the $335 million GTN Xpress Project previously announced by TC Pipelines LP to deliver natural gas to downstream markets.
“The West Path Delivery Program, along with the GTN Xpress Project, further enhances connections of the Western Canadian Sedimentary Basin to high-value downstream markets,” said Girling, in a statement.
Moving natural gas to southwest Alberta
The project will move natural gas to southwest Alberta and to connected markets. The $1.2 billion project brings the company’s investment in the western Canada basin to $10 billion, Girling said.
The project is based on about 258 million cubic feet per day of new firm service contracts with terms that exceed 30 years, the company said. The new pacts will commence between Q4 2022 and Q4 2023, it noted.
The project includes 74 miles (119 kilometers) of new pipelines and associated facilities.
Applications for approvals to construct and operate the facilities are expected to be filed in 2020, and construction could begin as early as Q4 2021, pending approvals, TC Energy said.
TC Energy formerly was known as TransCanada.
