Mr. Francois Poirier reports

TC ENERGY REPORTS STRONG FIRST QUARTER 2023 RESULTS

TC Energy Corp. has released its first quarter 2023 results.

Francois Poirier, TC Energy's president and chief executive officer, commented: "First quarter 2023 results continue to demonstrate the resiliency of our business and our ability to generate sustainable cash flow growth while advancing our clearly defined funding program. Comparable EBITDA [earnings before interest, taxes, depreciation and amortization] was $2.8-billion, up 16 per cent from the first quarter of 2022, and segmented earnings were $2.2-billion, compared to $1.2-billion in the first quarter of 2022. Our priorities for 2023 are clear -- safely and reliably deliver essential energy across North America, advance our critical energy infrastructure projects and successfully execute our asset divestiture program to accelerate deleveraging objectives."

Highlights:

• First quarter 2023 results were underpinned by strong utilization and demand for the company's assets and services:
  • NGTL system total deliveries averaged 14.5 billion cubic feet per day, up compared with the first quarter of 2022.
  • Throughput across United States natural gas pipelines averaged 28.5 Bcf/d, with several assets performing at near-record levels during peak demand.
  • U.S. natural gas pipelines achieved a new all-time record for deliveries to liquefied natural gas export facilities.
  • Alberta cogeneration power plant fleet reached 100-per-cent peak-price availability in February.
  • Bruce Power achieved 95-per-cent availability.
• First quarter 2023 financial results:
  • Net income attributable to common shares of $1.3-billion, or $1.29 per common share, compared with $400-million, or 36 cents per common share, in the first quarter of 2022. Comparable earnings of $1.2-billion, or $1.21 per common share, compared with $1.1-billion, or $1.12 per common share, in 2022.
  • Segmented earnings of $2.2-billion compared with segmented earnings of $1.2-billion in 2022, and comparable EBITDA of $2.8-billion compared with $2.4-billion in 2022.
• TC Energy reaffirmed its 2023 financial outlook, with comparable EBITDA expected to be 5 per cent to 7 per cent higher than 2022.
• The company declared a quarterly dividend of 93 cents per common share for the quarter ending June 30, 2023.
• Dividend reinvestment and share repurchase plan participation rate amongst common shareholders was approximately 38 per cent, resulting in $363-million reinvested in common equity from the dividends declared on Feb. 13, 2023.
• TC Energy is continuing to advance its industry-leading secured capital program, placing $1.4-billion of projects in service in the first quarter of 2023 and on track to place $6.0-billion in service during 2023.
• Canadian natural gas pipelines brought $1.1-billion of projects in service in the first quarter of 2023, enabling 700 million cubic feet per day of additional market access, with an incremental 500 MMcf/d expected in the second quarter of 2023.
• The company placed the Port Neches Link pipeline system in service in March, 2023, providing last-mile connectivity to key demand markets.
• TC Energy acquired the 155-megawatt Fluvanna wind farm for $99-million (U.S.) in cash, before postclosing adjustments, in Scurry county, Texas. The company also entered into an agreement to acquire the 148 MW Blue Cloud wind farm for $125-million (U.S.) in cash, before postclosing adjustments, in Bailey county, Texas. The closing of the Blue Cloud acquisition is pending regulatory approval.
• The company received Federal Energy Regulatory Commission approval for the ANR Section 4 rate case on April 11, 2023.
• Bruce Power unit 3 was removed from service on March 1, 2023, to begin its major component replacement (MCR) outage, with return to service expected in 2026.

Operational excellence drives 16-per-cent increase in first-quarter comparable EBITDA

First quarter 2023 results were underpinned by the strong demand for the company's assets and its ability to safely and reliably deliver essential energy services across North America. Comparable EBITDA was $2.8-billion, up 16 per cent compared with the first quarter of 2022, and segmented earnings were $2.2-billion, compared with $1.2-billion in the first quarter of 2022. Comparable earnings per share for the quarter was $1.21, up eight per cent compared with $1.12 in the first quarter of 2022. Net income per common share was $1.29, up from 36 cents in the first quarter of 2022.

Reaffirming 2023 outlook and dividend declaration

The company reaffirms its 2023 comparable EBITDA growth outlook of 5 per cent to 7 per cent relative to 2022, while comparable earnings per common share are expected to be modestly higher than 2022, showcasing the resiliency and sustainability of its earnings and cash flows. In addition, the company expects capital spending in 2023 to continue to be $11.5-billion to $12.0-billion. TC Energy's 2023 outlook reflects its commitment to driving long-term growth and value for shareholders. Based on the confidence of its business and growth outlook, TC Energy's board of directors declared a quarterly dividend of 93 cents per common share for the quarter ending June 30, 2023, equivalent to $3.72 per common share on an annualized basis. The company expect to continue to grow the common-share dividend at an annual rate of 3 per cent to 5 per cent, enabling shareholders to benefit from the company's growth and success in the coming years.

Focusing on project execution -- advancing industry-leading secured capital program

Major project execution continues to be a central priority, and during the quarter, the company made meaningful progress on the Coastal GasLink and Southeast Gateway pipeline projects, as well as advancing its MCR program at Bruce Power. The company continue to advance its $34-billion secured capital program and has placed $1.4-billion of its planned $6.0-billion of projects in service in 2023, further supporting comparable EBITDA growth and deleveraging objectives.

Bruce Power achieved 95-per-cent availability during the quarter. On March 1, unit 3 was removed from service to begin its MCR outage. In addition, the unit 6 MCR is proceeding on budget and schedule, and is now in the final stages of the installation phase, which will be followed by commissioning. Unit 6 is expected to return to service in the fourth quarter of 2023, while unit 3 has an expected return to service date in 2026.

The Southeast Gateway pipeline project, the company's second offshore pipeline project in Mexico, continues to track to cost and schedule, with a targeted in service date of mid-2025. As a result of the company's strategic partnership with the Comision Federal de Electricidad (CFE), the first critical milestones were achieved in early 2023 with the acquisition of land for the main offshore pipe landfalls and compressor stations, as well as obtaining key federal environmental authorizations and local permits. The company anticipates commencing onshore construction for its compressor stations this summer, and offshore pipe installation toward the end of 2023. Critical long-lead items and the offshore vessel have been secured, pipe and equipment are being delivered, and approximately 70 per cent of total project costs are under fixed-price contracts. Once complete, TC Energy expects that the project will play a critical role in advancing a reliable and secure energy transition in key demand centres in southeast Mexico.

Over the winter construction season, the Coastal GasLink project progressed in line with the company's revised cost and schedule, and is now approximately 87 per cent complete. The entire project route has been cleared, grading is approximately 99 per cent complete, welding is approximately 95 per cent complete, and TC Energy continues to target mechanical completion in late 2023. Construction has progressed through the winter on plan, and the compressor station at Wilde Lake has commenced commissioning work, including the recent introduction of natural gas as part of the transition of the facility to operations. Despite the high-elevation and winter conditions, TC Energy safely completed the excavation of Cable Crane Hill ahead of schedule and is now installing the final pipe through this critical path section. More than 85 per cent of all classified water crossings on the project are now complete, and in the first quarter alone, TC Energy safely completed the Clore River, Crystal, Lamprey and Owen Creek crossings. To date, over 567 kilometres of the approximately 670 km pipeline have been backfilled, with restoration activities under way in many areas. At this stage, the majority of the long-linear pipeline installation is complete, and activity is shifting toward discrete work fronts with high criticality. The company continues to systematically mitigate the remaining execution risks and remains focused on executing the project on time and with the highest standards of safety, quality and environmental protection. At this time, there is no change to the comprehensive cost and schedule risk analysis described in the company's 2022 annual report.

Following the December, 2022, Milepost 14 incident on the Keystone pipeline system, approximately 98 per cent of the released volume has been recovered, and cleanup is approximately 90 per cent complete. The Keystone pipeline system is operating at a reduced pressure, while continuing to deliver contracted volumes of approximately 585,000 barrels per day. A root-cause failure analysis has been conducted by an independent third party, and findings have been posted to the company's website. TC Energy's focus remains on the safe operations of the system and remediation.

Progressing TC Energy's $5-billion-plus asset divestiture program while maintaining its low-risk business profile

TC Energy's team remains laser focused on execution and managing capital spending while advancing its $5-billion-plus asset divestiture program to accelerate its deleveraging target and provide a source of financing for high-quality growth opportunities. TC Energy's asset divestiture program is under way, and the company will be in a position to provide more details as the program progresses.

The company continues to optimize system availability and throughput, while simultaneously looking for new ways to maximize the value of its existing assets. The North American energy mix continues to evolve, which will allow the company to expand and extend its existing services and originate additional low-carbon solutions while living within its means. TC Energy's diverse and strategically positioned portfolio and all-of-the-above strategy will meet society's needs, regardless of the pace or direction of the energy transition. Going forward, TC Energy will remain steadfast in prioritizing project execution, deleveraging and capital discipline, while safely and reliably delivering the energy people need every day.

Teleconference and webcast

The company will hold a teleconference and webcast on Friday, April 28, 2023, at 6:30 a.m. MT (8:30 a.m. ET) to discuss its first quarter 2023 financial results and company developments. Presenters will include: Francois Poirier, president and chief executive officer; Joel Hunter, executive vice-president and chief financial officer; and other members of the executive leadership team.

Members of the investment community and other interested parties are invited to participate by calling 1-800-319-4610. No passcode is required. Please dial in 15 minutes prior to the start of the call. A live webcast of the teleconference will be available on TC Energy's website.

A replay of the teleconference will be available two hours after the conclusion of the call until 12 a.m. ET on May 5, 2023. Please call 1-855-669-9658 and enter passcode 9998.

The unaudited interim condensed consolidated financial statements and management's discussion and analysis are available on the company's website and will be filed today under TC Energy's profile on SEDAR and with the U.S. Securities and Exchange Commission on EDGAR.

About TC Energy Corp.

TC Energy is a team of greater than 7,000 energy problem solvers working to move, generate and store the energy North America relies on. Today, the company is taking action to make that energy more sustainable and more secure. TC Energy is innovating and modernizing to reduce emissions from its business. And, the company is delivering new energy solutions -- from natural gas and renewables to carbon capture and hydrogen -- to help other businesses and industries decarbonize, too. Along the way, TC Energy invests in communities and partners with its neighbours, customers and governments to build the energy system of the future.

We seek Safe Harbor.