TC Energy Corporation

Rate-regulated tolls on the NGTL System and Mainline and multi-year take-or-pay contracts across U.S. and Mexico segments produced 98% of FY2025 comparable EBITDA of $11.0 billion from contracted or regulated sources, sustained through multiple rate cycles. Multi-year rate framework settlements on NGTL and long-duration take-or-pay arrangements provide forward cash flow visibility well above the contracted revenue threshold at which pipeline visibility becomes structural.

Following the October 2024 South Bow spinoff, TC Energy operates four segments: Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines, Mexico Natural Gas Pipelines, and Power and Energy Solutions. All four concentrate on natural gas-adjacent infrastructure with no crude oil, chemical, or consumer-facing exposure, and Canadian Pipelines contributes the majority of segmented EBITDA.

TC Energy operates in Canada, the United States, and Mexico, providing three-country exposure that is above single-market infrastructure peers. Canada contributes the majority of segmented EBITDA via the NGTL System and Mainline, with the U.S. natural gas network as a meaningful secondary base and Mexico's Southeast Gateway pipeline (commercial since May 2025) as a smaller but growing contributor.

Existing regulated pipelines generate strong per-unit operating leverage, with incremental gas volumes adding minimal variable cost on built infrastructure. Growth requires multi-billion capital deployment: TC Energy guided to $6.0-6.5 billion in net capex for FY2026 and a similar annual rate through 2030, meaning any revenue expansion is inseparable from proportional new capital commitment.

Natural gas transmission is mission-critical, non-discretionary infrastructure underpinning home heating, electricity generation, and industrial processes across North America. With 98% of FY2025 comparable EBITDA derived from rate-regulated or long-term take-or-pay contracts, TC Energy's revenue sits at the contractually durable end of the energy sector, with no material spot-market or transactional exposure.