TransCanada Reports Solid Third Quarter Results From Its Three Core Businesses

Press Release

CALGARY, ALBERTA–(Nov. 4, 2014) – TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) today announced net income attributable to common shares for third quarter 2014 of $457 million or $0.64 per share compared to $481 million or $0.68 per share for the same period in 2013. Comparable earnings for third quarter 2014 were $450 million or $0.63 per share compared to $447 million or $0.63 per share for the same period last year. TransCanada’s Board of Directors also declared a quarterly dividend of $0.48 per common share for the quarter ending December 31, 2014, equivalent to $1.92 per common share on an annualized basis.

“Our three core businesses generated solid earnings and cash flow during the quarter,” said Russ Girling, TransCanada’s president and chief executive officer. “Contributions from new assets like the Keystone Gulf Coast Extension and the Tamazunchale Extension in Mexico, along with strong results from Bruce Power, highlight the benefits of a diversified and growing portfolio of pipeline and power assets. We are also pleased to have announced an additional $4.7 billion of new capital projects highlighting the organic growth opportunities that are tied to our unparalleled asset footprint.”

Since the beginning of 2014, we have captured $6.6 billion of capital projects related to our Canadian regulated natural gas pipeline assets. This includes $2.7 billion of new investment associated with the NGTL System, $2 billion of expansions and facility modifications to the Canadian Mainline in Ontario and the previously announced $1.9 billion Merrick Mainline Pipeline Project. With these additions, our capital program now totals $46 billion of commercially secured projects, essentially all of which are backed by long-term contracts or cost of service business models. This growth portfolio includes $24 billion of liquids pipelines, $20 billion of natural gas pipelines and $2 billion of power generation facilities. We continue to advance this unprecedented slate of growth initiatives, with many currently proceeding through their respective regulatory processes. Over the remainder of the decade, subject to required approvals, this blue-chip portfolio of contracted energy infrastructure is expected to generate significant sustainable growth in earnings, cash flow and dividends.

On October 1, 2014, we closed the sale of our remaining 30 per cent interest in Bison Pipeline LLC (Bison) to our master limited partnership, TC PipeLines, LP (the Partnership) for cash proceeds of US$215 million. This transaction underscores our commitment to drop down all of our remaining U.S. natural gas pipeline assets to the Partnership on a more sizable and more frequent basis over the coming quarters and years. This will provide us with significant cash proceeds and is an important element of funding our unprecedented growth portfolio, while enhancing the size and diversity of the Partnership’s asset base, positioning it with visible, high quality future growth.

Looking forward, our current asset base and financial strength positions us well to generate significant long-term shareholder value through execution of our industry-leading capital program and our commitment to continuously evaluate our approach to capital allocation.

Read More: http://www.transcanada.com/news-releases-article.html?id=1892654&t=

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