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2013 Annual Meeting Presentation


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2013 Annual Meeting Presentation

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2013 Annual Meeting Presentation

  1. 1. 11
  2. 2. Developing North America’s Energy Future2
  3. 3. Forward-Looking Information & Non-GAAP MeasuresThis presentation includes certain forward looking information to help current and potential investors understand management’s assessment ofour future plans and financial outlook, and our future prospects overall. Statements that are forward-looking are based on certain assumptionsand on what we know and expect today and generally include words like anticipate, expect, believe, may, will, should, estimate or othersimilar words. Forward-looking statements do not guarantee future performance. Actual events and results could be significantly differentbecause of assumptions, risks or uncertainties related to our business or events that happen after the date of this presentation. Our forward-looking information is based on the following key assumptions: inflation rates, commodity prices and capacity prices, timing of financings andhedging, regulatory decisions and outcomes, foreign exchange rates, interest rates, tax rates, planned and unplanned outages and the use ofour pipeline and energy assets, integrity and reliability of our assets, access to capital markets, anticipated construction costs, schedules andcompletion dates, acquisitions and divestitures.Our forward looking information is subject to risks and uncertainties, including but not limited to: our ability to successfully implement ourstrategic initiatives and whether they will yield the expected benefits, the operating performance of our pipeline and energy assets, economicand competitive conditions in North America and globally, the availability and price of energy commodities, regulatory decisions and outcomes,outcomes of legal proceedings, including arbitration, changes in the political environment, changes in environmental and other laws andregulations, construction and completion of capital projects, labour, equipment and material costs, access to capital markets, interest andforeign exchange rates, weather, cybersecurity and technological developments. You can read more about these risks and others in our mostrecent Quarterly Report to Shareholders and 2012 Annual Report filed with Canadian securities regulators and the U.S. Securities andExchange Commission (SEC) and available at should not put undue reliance on forward-looking information and should not use future-oriented information or financial outlooks foranything other than their intended purpose. We do not update our forward-looking statements due to new information or future events, unlesswe are required to by law.This presentation contains reference to certain financial measures (non-GAAP measures) that do not have any standardized meaning asprescribed by U.S. generally accepted accounting principles (GAAP) and therefore may not be comparable to similar measures presented byother entities. These non-GAAP measures may include Comparable Earnings, Comparable Earnings per Share, Earnings Before Interest,Taxes, Depreciation and Amortization (EBITDA), Comparable EBITDA, Earnings Before Interest and Taxes (EBIT), Comparable EBIT,Comparable Interest Expense, Comparable Interest Income and Other, Comparable Income Taxes and Funds Generated from Operations.Reconciliations to the most closely related GAAP measures are included in our most recent Quarterly Report to Shareholders filed withCanadian securities regulators and the SEC and available at
  4. 4. A Leading North American Energy Infrastructure CompanyEnterprise valueof $59 billionThree corebusinesses:• Natural GasPipelines• Energy• Oil Pipelines4
  5. 5. TransCanada Employees4,900 dedicatedemployees in:• Seven Provinces• 31 States• Mexico5
  6. 6. Natural Gas Pipelines• 68,500 kilometresof pipeline• Delivering 20 percent of NorthAmerica’s gassupply• Third-largestnatural gas storageprovider6
  7. 7. Energy• Canada’s largestprivate sectorpower generator• 21 power facilitiesoperating or indevelopment• Generating capacity11,800 MW, enoughfor 12 million homes7
  8. 8. Oil Pipelines• Keystone delivers20 per cent ofCanadian oil to• Growing upstreamsystem to connectwellheads torefineries• Pursuing EnergyEast Pipeline toconnect Westernproducers withEastern markets8
  9. 9. Developing North America’s Energy FuturePlaced $13 billion of new assets into service in last three years9
  10. 10. 2012 and Q1 2013 Financial Highlights10
  11. 11. North America’s Energy Infrastructure Requirements11
  12. 12. Changing Energy Landscape – Three Themes• Abundant natural gas supply• Growing oil supply• Shift away from coal-fired power 12
  13. 13. Great challenges, Great opportunityChanging Energy Landscape13
  14. 14. Vision for the Future• Secured $16 billion in new projects in the past year• $25 billion for completion by 2020 14
  15. 15. • Coal-fired powergeneration is the#1 source ofelectricity in theU.S. and #1 sourceof GHGs.• Emissions from oilsands only 3.5 percent of U.S. coalfleetMoving Off Coal15
  16. 16. Bruce Power• World’s largest nuclear power facility• 6,300 MW of emission-free energy• 25 per cent of Ontario’s power supplyTransCanada Energy Projects16
  17. 17. Cartier Wind• Canada’s largest wind farm• 590 MW under 20-year PPA with Hydro QuebecTransCanada Energy Projects17
  18. 18. Canadian Solar• $476-million investment• 86 MW in nine projects• Revenues expected to begin in 2013TransCanada Energy Projects18
  19. 19. Napanee Generating Station• $1-billion investment• 900 MW combined cycle, natural gas power plant• Expected to begin operation by 2018TransCanada Energy Projects19
  20. 20. Shale Gas Rising• Unconventionalgas productionhas shifted supplyand demand• Lower prices andnew productionhave increasedcompetition forgas pipelines20
  21. 21. • Shift towardsshort-haul, short-term contracts• Comprehensiverestructuring ofMainline tollsand servicesChallenges for our Natural Gas Pipelines21
  22. 22. Growing Natural Gas Supply & Demand$13 billion in new natural gas pipeline projects22
  23. 23. MexicoUS$1.9 billion in new projects contracted23
  24. 24. British Columbia LNGTwo proposed LNG pipelines acrossNorthern British Columbia - $9 billion24
  25. 25. • $650 million inupgrades to NGTLSystem last year• $2 billion more by2015NGTL Expansion25
  26. 26. Oil Production Booming• Crude oilproduction togrow three millionbbl/d by 202026
  27. 27. Displacing offshoreimports:• U.S. Gulf Coastimports 4.5 millionbbl/d• Eastern Canadaimports 700,000bbl/d• U.S. East Coastimports 900,000bbl/dWhere Will the Oil Go?27
  28. 28. • Began operation in July 2010• Safely delivered more than 400 million barrels to U.S. markets• EBITDA grew to more than $700 million in 2012Keystone Pipeline28
  29. 29. • US$2.5-billionproject• Construction is 70per cent complete• Will begintransporting700,000 bbl/dwhen placed inservice at the endof this yearGulf Coast Pipeline29
  30. 30. Keystone XL• More thanUS$5.3-billionproject• 830,000 bbl/dcapacity• Potential todisplace more than10 per cent ofAmerican overseascrude imports30
  31. 31. Grand Rapids & Northern Courier• Connectinggrowing oil sandsproduction• $2.5 billion in newprojectsunderpinned bylong-term contracts• Expected in service2014-201731
  32. 32. • Converting Mainlinecapacity to oil service• Up to 850,000 bbl/d toMontreal, Québec Cityand Saint John• Very strongcommercial interestand political support• Target in service byend of 2017, subjectto successful openseason and regulatoryapprovalEnergy East Pipeline Project32
  33. 33. $25 billion of Commercially-Secured Projects33
  34. 34. EBITDA Outlook34
  35. 35. Dividends per Common Share35
  36. 36. Committed to Safety & Responsible Development36
  37. 37. Conclusion37
  38. 38. 38