TC Energy Delivers Steady Q1 with Project Milestones and Pipeline Expansion

On May 1, TC Energy (TSX:TRP)(NYSE: TRP) reported its Q1 2025 numbers, for the period ending March 31. Its comparable earnings per share totaled $0.95, which were down slightly from $1.02 in the prior-year period, amid a stable operating environment. Net income remained essentially flat at $1.0 billion, supported by record-setting pipeline throughput across its gas network.

Pipeline Strength Drives Operational Momentum

Natural gas pipeline throughput across North America hit new records, with Canada’s NGTL system delivering 17.8 Bcf on a single day and the U.S. GTN system setting a high of 3.2 Bcf. LNG facility deliveries rose 5% year-over-year to 3.5 Bcf/d. Notably, the Southeast Gateway pipeline in Mexico is ready for service, pending final regulatory rate approval. Constructed 13% below budget, the 1.3 Bcf/d project is fully contracted and positions TC Energy to benefit from Mexico’s expanding natural gas demand

Strategic Projects Highlight Growth Pipeline

TC Energy greenlit two major long-term projects. The Northwoods project will expand the ANR system in the U.S. Midwest by 0.4 Bcf/d to meet growing electric generation demand, notably from data centers, at an estimated cost of US$0.9 billion. Meanwhile, Bruce Power’s $1.1 billion Unit 5 refurbishment was formally approved and is set to begin in late 2026. These capital investments align with TC Energy’s strategy of pursuing high-return, low-risk infrastructure tied to long-term contracts.

Investor Takeaway

With $8.5 billion of projects scheduled to enter service this year and 97% of EBITDA underpinned by regulated or contracted assets, TC Energy maintains strong cash flow visibility. The reaffirmed dividend of $0.85 per share (annualized $3.40) signals continued commitment to income-focused shareholders. TRP suits long-term income investors seeking stability, as well as those looking for regulated growth exposure in the North American energy transition.

Year to date, shares of TC Energy are up around 5% (its five-year returns are up around 16%). And the stock also pays a dividend which yields 4.8%. Currently, it trades at 17 times its trailing earnings. The company’s next earnings report is expected to come out in late July/early August.

Key Terms

ANR refers to ANR Pipeline Company, a U.S.-based natural gas pipeline system owned by TC Energy. It transports natural gas from producing regions like Texas, Oklahoma, and the Gulf Coast to the U.S. Midwest and Great Lakes regions, and includes both interstate transmission and storage infrastructure.

Bcf stands for billion cubic feet, a unit of measurement used in the natural gas industry to quantify large volumes of gas. It’s commonly used to describe pipeline capacity, production, and daily deliveries.

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric used to evaluate a company’s operating performance by focusing on profitability from core business operations, excluding the effects of financing decisions, tax strategies, and non-cash accounting items.

GTN refers to the Gas Transmission Northwest pipeline system, a major natural gas pipeline owned by TC Energy. It transports natural gas from Alberta, Canada, through the U.S. states of Idaho, Washington, and Oregon, delivering it to markets in the Pacific Northwest and California.

LNG stands for liquefied natural gas, which is natural gas that has been cooled to approximately -162°C (-260°F) to convert it into a liquid form. This process significantly reduces its volume, making it more efficient to store and transport, especially for overseas shipping where pipelines are not feasible.

NGTL stands for Nova Gas Transmission Ltd., a wholly owned subsidiary of TC Energy. It operates a vast natural gas pipeline system primarily in Alberta and northeastern British Columbia, serving as a key hub for gathering and transporting natural gas from Western Canadian producers to domestic and export markets.