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TC Energy Q2 Earnings and Revenues Beat Estimates, Both Decline Y/Y
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Key Takeaways
TRP's Q2 earnings beat estimates at 59 cents per share but declined from 69 cents a year earlier.
All four segments saw EBITDA growth, led by a 32.6% gain in Power and Energy Solutions.
Southeast Gateway pipeline began toll collection in May; East Lateral XPress entered service.
TC Energy Corporation (TRP - Free Report) reported second-quarter 2025 adjusted earnings of 59 cents per share, which beat the Zacks Consensus Estimate of 56 cents. This can be attributed to the better performance of all four segments of the company. However, the bottom line decreased from 69 cents in the year-ago period.
This energy infrastructure provider's quarterly revenues of $2.7 billion also beat the Zacks Consensus Estimate of $2.5 billion. However, the figure decreased 9.4% year over year.
TC Energy Corporation Price, Consensus and EPS Surprise
TC Energy’s comparable EBITDA was C$2.6 billion for the reported quarter, up 12% from the year-ago period. However, the figure missed our model estimate by 3.8%.
In addition, TRP’s board of directors declared a quarterly dividend of 85 Canadian cents per common share for the period ending Sept. 30, 2025. The dividend will be paid on Oct. 31 to its shareholders on record as of the close of business on Sept. 29, 2025.
TRP’s Segmental Information
Canadian Natural Gas Pipelines reported a comparable EBITDA of C$923 million, up 9.1% from the year-ago quarter’s level. This was driven by increased contributions from Coastal GasLink following its in-service date last October and higher flow-through regulated costs. However, the figure missed our estimate of C$979 million.
The company reported that Canadian Natural Gas Pipelines deliveries averaged 23.4 billion cubic feet per day (Bcf/d), which increased 5% year over year. Total NGTL System deliveries reached a new record of 15.5 Bcf on April 13, 2025. Furthermore, Canadian Mainline receipts averaged 4.4 Bcf/d, indicating a 7% rise compared with the year-ago quarter.
U.S. Natural Gas Pipelines reported a comparable EBITDA of C$1.1 billion, indicating an 8.6% increase from the prior-year quarter’s actual, driven by the settlement in principle and the application for higher transportation rates on Columbia Gas, which became effective on April 1. However, the figure missed our estimate by C$47.9 million.
The company reported that its U.S. Natural Gas Pipelines’ daily average flows reached 25.7 Bcf/d, in line with the prior-year period. Additionally, deliveries to LNG facilities averaged 3.5 Bcf/d, up 6% compared with the year-ago quarter.
Mexico Natural Gas Pipelines reported a comparable EBITDA of C$319 million, up 11.5% from the year-ago quarter’s reported figure of C$286 million due to higher earnings in TGNH, primarily related to the completion of the Southeast Gateway pipeline. Moreover, the figure beat our estimate of C$275.5 million.
The company reported that Mexico Natural Gas Pipelines flows averaged 3.6 Bcf/d, up 3% year over year. Additionally, a new daily flow record of 4.4 Bcf was set on April 22, 2025.
Power and Energy Solutions registered a comparable EBITDA of C$301 million, up 32.6% from the year-ago quarter’s level of C$227 million. This increase was primarily due to higher contributions from Bruce Power, indicating an increased generation output and a higher average realized price of C$110 per megawatt hour. The figure is up C$8 per megawatt hour relative to the second quarter last year. However, the metric missed our estimation of C$332.9 million.
The company reported that Bruce Power achieved 98% availability in the second quarter of 2025. This was primarily due to the company’s investments in the major component replacement program that is enhancing both reliability and availability. TC Energy also achieved 93.4% availability in its cogeneration power plant fleet in second-quarter 2025.
TRP’s Expenditure and Balance Sheet
As of June 30, 2025, TC Energy’s capital investments amounted to C$1.4 billion.
TRP had cash and cash equivalents worth C$1.4 billion and long-term debt of C$43.3 billion, with a debt-to-capitalization of 59% as of the same date.
TRP’s 2025 Guidance
The Zacks Rank #3 (Hold) company expects comparable EBITDA for 2025 to be between C$10.8 billion and C$11 billion, marking an increase from the previously announced C$10.7 billion and C$10.9 billion. TRP expects comparable earnings per common share to remain consistent with the guidance provided in its 2024 Annual Report, though lower than the prior-year levels. The company also expects to maintain its capital expenditures to total between C$6.1 billion and C$6.6 billion on a gross basis and C$5.5 billion and C$6 billion on a net basis, remaining unchanged from the previous quarter.
The Southeast Gateway pipeline is now operational, and toll collection from Comisión Federal de Electricidad (“CFE”) began in May 2025. In July 2025, the newly formed Comisión Nacional de Energía approved regulated rates for potential future interruptible users on the Southeast Gateway pipeline, beyond the CFE.
The East Lateral XPress project, an expansion of the Columbia Gulf system to supply the U.S. Gulf Coast LNG export markets, entered service in May 2025, with a total investment of approximately US$0.3 billion.
On July 1, 2025, Columbia Gas informed the Federal Energy Regulatory Commission that it reached a settlement-in-principle in the Section 4 Rate Case. The final agreement, expected by fourth-quarter 2025, is anticipated to result in rates higher than those initially filed, pending final approval.
Capacity has been increased on the Maysville and Pulaski mainline extension projects along Columbia Gulf to support rising regional demand, including growth from data center developments.
A positive Final Investment Decision was made for $0.4 billion in expansion projects under the Multi-Year Growth Plan. These projects, set to begin service in 2027, aim to meet growing demand and new supply needs on the NGTL System.
Important Earnings at a Glance
While we have discussed TRP’s second-quarter results in detail, let us take a look at three other key reports in this space.
The leading U.S.-based natural gas producer, Expand Energy Corporation (EXE - Free Report) , reported second-quarter 2025 adjusted earnings per share of $1.10, which missed the Zacks Consensus Estimate of $1.14. However, the company’s bottom line surpassed the year-ago adjusted profit of 1 cent, fueled by strong production and higher natural gas price realization.
Expand Energy’s ‘natural gas, oil and NGL’ revenues of $2 billion missed the Zacks Consensus Estimate by $74 million. However, the top line was outstandingly higher than the year-ago figure of $378 million.
As of June 30, 2025, the company had $731 million in cash and cash equivalents. Expand Energy had a long-term debt of $5.1 billion, reflecting a debt-to-capitalization of 22.2%.
The Denver, CO-based oil and gas exploration and production company,Ovintiv Inc. (OVV - Free Report) , reported second-quarter 2025 adjusted earnings per share of $1.02, which missed the Zacks Consensus Estimate of $1.04. The bottom line also decreased from the year-ago level of $1.24. This underperformance was due to weaker oil price realizations and a 4% year-over-year increase in expenses during the quarter.
The company’s total revenues of $2.3 billion increased 1.3% from the year-ago quarter’s figure and beat the Zacks Consensus Estimate by 18.8%. Higher contributions from sales of purchased products and strong gains from hedging drove the revenue growth.
As of June 30, the company had cash and cash equivalents worth $20 million and long-term debt of $4.4 billion. Its debt-to-capitalization was 29.7%.
The Houston, TX-based oil and gas equipment and services company,Oceaneering International, Inc. (OII - Free Report) , reported an adjusted profit of 49 cents per share for the second quarter of 2025, beating the Zacks Consensus Estimate of 42 cents. Moreover, the bottom line surpassed the year-ago quarter’s reported figure of 28 cents. This was due to year-over-year strong operating income from its segments.
Total revenues were $698.2 million, which was in line with the Zacks Consensus Estimate. The top line increased approximately 4.4% from the year-ago quarter’s $668.8 million, due to the strong revenue contribution from its segments.
As of June 30, 2025, OII had cash and cash equivalents worth $434 million and $497.5 million, respectively, along with a long-term debt of about $484.6 million. The debt-to-total capital was 36.4%.
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TC Energy Q2 Earnings and Revenues Beat Estimates, Both Decline Y/Y
Key Takeaways
TC Energy Corporation (TRP - Free Report) reported second-quarter 2025 adjusted earnings of 59 cents per share, which beat the Zacks Consensus Estimate of 56 cents. This can be attributed to the better performance of all four segments of the company. However, the bottom line decreased from 69 cents in the year-ago period.
This energy infrastructure provider's quarterly revenues of $2.7 billion also beat the Zacks Consensus Estimate of $2.5 billion. However, the figure decreased 9.4% year over year.
TC Energy Corporation Price, Consensus and EPS Surprise
TC Energy Corporation price-consensus-eps-surprise-chart | TC Energy Corporation Quote
TC Energy’s comparable EBITDA was C$2.6 billion for the reported quarter, up 12% from the year-ago period. However, the figure missed our model estimate by 3.8%.
In addition, TRP’s board of directors declared a quarterly dividend of 85 Canadian cents per common share for the period ending Sept. 30, 2025. The dividend will be paid on Oct. 31 to its shareholders on record as of the close of business on Sept. 29, 2025.
TRP’s Segmental Information
Canadian Natural Gas Pipelines reported a comparable EBITDA of C$923 million, up 9.1% from the year-ago quarter’s level. This was driven by increased contributions from Coastal GasLink following its in-service date last October and higher flow-through regulated costs. However, the figure missed our estimate of C$979 million.
The company reported that Canadian Natural Gas Pipelines deliveries averaged 23.4 billion cubic feet per day (Bcf/d), which increased 5% year over year. Total NGTL System deliveries reached a new record of 15.5 Bcf on April 13, 2025. Furthermore, Canadian Mainline receipts averaged 4.4 Bcf/d, indicating a 7% rise compared with the year-ago quarter.
U.S. Natural Gas Pipelines reported a comparable EBITDA of C$1.1 billion, indicating an 8.6% increase from the prior-year quarter’s actual, driven by the settlement in principle and the application for higher transportation rates on Columbia Gas, which became effective on April 1. However, the figure missed our estimate by C$47.9 million.
The company reported that its U.S. Natural Gas Pipelines’ daily average flows reached 25.7 Bcf/d, in line with the prior-year period. Additionally, deliveries to LNG facilities averaged 3.5 Bcf/d, up 6% compared with the year-ago quarter.
Mexico Natural Gas Pipelines reported a comparable EBITDA of C$319 million, up 11.5% from the year-ago quarter’s reported figure of C$286 million due to higher earnings in TGNH, primarily related to the completion of the Southeast Gateway pipeline. Moreover, the figure beat our estimate of C$275.5 million.
The company reported that Mexico Natural Gas Pipelines flows averaged 3.6 Bcf/d, up 3% year over year. Additionally, a new daily flow record of 4.4 Bcf was set on April 22, 2025.
Power and Energy Solutions registered a comparable EBITDA of C$301 million, up 32.6% from the year-ago quarter’s level of C$227 million. This increase was primarily due to higher contributions from Bruce Power, indicating an increased generation output and a higher average realized price of C$110 per megawatt hour. The figure is up C$8 per megawatt hour relative to the second quarter last year. However, the metric missed our estimation of C$332.9 million.
The company reported that Bruce Power achieved 98% availability in the second quarter of 2025. This was primarily due to the company’s investments in the major component replacement program that is enhancing both reliability and availability. TC Energy also achieved 93.4% availability in its cogeneration power plant fleet in second-quarter 2025.
TRP’s Expenditure and Balance Sheet
As of June 30, 2025, TC Energy’s capital investments amounted to C$1.4 billion.
TRP had cash and cash equivalents worth C$1.4 billion and long-term debt of C$43.3 billion, with a debt-to-capitalization of 59% as of the same date.
TRP’s 2025 Guidance
The Zacks Rank #3 (Hold) company expects comparable EBITDA for 2025 to be between C$10.8 billion and C$11 billion, marking an increase from the previously announced C$10.7 billion and C$10.9 billion. TRP expects comparable earnings per common share to remain consistent with the guidance provided in its 2024 Annual Report, though lower than the prior-year levels. The company also expects to maintain its capital expenditures to total between C$6.1 billion and C$6.6 billion on a gross basis and C$5.5 billion and C$6 billion on a net basis, remaining unchanged from the previous quarter.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
TRP’s Project Highlights
The Southeast Gateway pipeline is now operational, and toll collection from Comisión Federal de Electricidad (“CFE”) began in May 2025. In July 2025, the newly formed Comisión Nacional de Energía approved regulated rates for potential future interruptible users on the Southeast Gateway pipeline, beyond the CFE.
The East Lateral XPress project, an expansion of the Columbia Gulf system to supply the U.S. Gulf Coast LNG export markets, entered service in May 2025, with a total investment of approximately US$0.3 billion.
On July 1, 2025, Columbia Gas informed the Federal Energy Regulatory Commission that it reached a settlement-in-principle in the Section 4 Rate Case. The final agreement, expected by fourth-quarter 2025, is anticipated to result in rates higher than those initially filed, pending final approval.
Capacity has been increased on the Maysville and Pulaski mainline extension projects along Columbia Gulf to support rising regional demand, including growth from data center developments.
A positive Final Investment Decision was made for $0.4 billion in expansion projects under the Multi-Year Growth Plan. These projects, set to begin service in 2027, aim to meet growing demand and new supply needs on the NGTL System.
Important Earnings at a Glance
While we have discussed TRP’s second-quarter results in detail, let us take a look at three other key reports in this space.
The leading U.S.-based natural gas producer, Expand Energy Corporation (EXE - Free Report) , reported second-quarter 2025 adjusted earnings per share of $1.10, which missed the Zacks Consensus Estimate of $1.14. However, the company’s bottom line surpassed the year-ago adjusted profit of 1 cent, fueled by strong production and higher natural gas price realization.
Expand Energy’s ‘natural gas, oil and NGL’ revenues of $2 billion missed the Zacks Consensus Estimate by $74 million. However, the top line was outstandingly higher than the year-ago figure of $378 million.
As of June 30, 2025, the company had $731 million in cash and cash equivalents. Expand Energy had a long-term debt of $5.1 billion, reflecting a debt-to-capitalization of 22.2%.
The Denver, CO-based oil and gas exploration and production company,Ovintiv Inc. (OVV - Free Report) , reported second-quarter 2025 adjusted earnings per share of $1.02, which missed the Zacks Consensus Estimate of $1.04. The bottom line also decreased from the year-ago level of $1.24. This underperformance was due to weaker oil price realizations and a 4% year-over-year increase in expenses during the quarter.
The company’s total revenues of $2.3 billion increased 1.3% from the year-ago quarter’s figure and beat the Zacks Consensus Estimate by 18.8%. Higher contributions from sales of purchased products and strong gains from hedging drove the revenue growth.
As of June 30, the company had cash and cash equivalents worth $20 million and long-term debt of $4.4 billion. Its debt-to-capitalization was 29.7%.
The Houston, TX-based oil and gas equipment and services company,Oceaneering International, Inc. (OII - Free Report) , reported an adjusted profit of 49 cents per share for the second quarter of 2025, beating the Zacks Consensus Estimate of 42 cents. Moreover, the bottom line surpassed the year-ago quarter’s reported figure of 28 cents. This was due to year-over-year strong operating income from its segments.
Total revenues were $698.2 million, which was in line with the Zacks Consensus Estimate. The top line increased approximately 4.4% from the year-ago quarter’s $668.8 million, due to the strong revenue contribution from its segments.
As of June 30, 2025, OII had cash and cash equivalents worth $434 million and $497.5 million, respectively, along with a long-term debt of about $484.6 million. The debt-to-total capital was 36.4%.