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Canadian oil and gas pipeline company TC Energy Corp TRP-T said on Tuesday it expects adjusted core earnings for 2024 to be 5 per cent to 7 per cent higher than 2023.

While global natural gas prices have slumped compared to last year, prices are still high enough for companies to produce profitably, boosting demand for pipelines.

TC Energy’s capital expenditure is expected to be between $8-billion and $8.5-billion next year, lower than its estimated cost of $12-billion to $12.5-billion in 2023.

It said it also expects comparable core profit in 2023 to be 8 per cent higher than last year’s $9.90-billion.

The company, best known for its Keystone oil pipeline, is undergoing an overhaul. In July, it said it would spin off its liquids business to focus on transporting natural gas, and sold a 40 per cent interest in its Columbia Gas Transmission and Columbia Gulf Transmission pipelines for $5.3-billion to Global Infrastructure Partners (GIP).

Calgary, Alberta-based TC Energy had said in November it was open to joint ventures in Mexico and Canada as part of the pipeline operator’s $3-billion divestiture program, looking to limit annual net capital expenditures to between $6-billion and $7-billion post-2024.

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