By Adriano Marchese

TC Energy has outlined a number of growth initiatives that will tap into the growing demand for natural gas and support above average adjusted earnings growth.

The Calgary, Alberta-based energy company said that it now expects above-average comparable earnings before interest, taxes, depreciation and amortization growth rate of about 5% to 7% through 2027. For 2025, the company expects this to come in at between 10.7 billion Canadian dollars ($7.63 billion) and C$10.9 billion.

TC Energy noted that nearly all of its comparable Ebitda outlook continues to be underpinned by rate-regulation and long-term take-or-pay contracts.

In this light, the company has planned four new growth projects totalling about C$1.5 billion of gross capital expenditures as it looks to capture the increasing demand for natural gas and nuclear power generation.

The first initiatives are two sanctioned projects on its Columbia Gulf system, the $400 million Pulaski Project and the $400 million Maysville Project which are full coal-to-gas conversion at two existing power plants and provide supply for incremental gas-fired generation.

The company has also set aside $300 million for its Southeast Virginia Energy Storage Project, an liquefied natural gas peaking facility in southeast Virginia that will serve an existing local distribution company to meet growing winter peak day load.

Lastly, the company will invest about C$175 million into the nuclear facility in Ontario, Bruce Power, of which it is a co-owner, to increase site peak output to 7,000 megawatts.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

November 19, 2024 06:39 ET (11:39 GMT)

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