TC Energy Corporation TRP reported second-quarter 2026 adjusted earnings of 68 cents per share, beating the Zacks Consensus Estimate of 61 cents by 11.48%. Adjusted earnings per share in Canadian cents rose 15.3% year over year, supported by higher contributions across all four operating segments.
Canada-based oil and gas storage and transportation company’s quarterly revenues of $2.86 billion beat the Zacks Consensus Estimate of $2.75 billion by 4.12% and increased 5.6% year over year.
Comparable EBITDA advanced 12% to C$2.95 billion, aided by strong pipeline utilization and Bruce Power availability.
TRP’s board of directors declared a quarterly dividend of 87.75 Canadian cents per common share for the quarter ending Sept. 30, 2026, equivalent to $3.51 on an annualized basis. The common share dividend is payable on Oct. 30 to its shareholders of record on Sept. 29, 2026.
TRP's Segment EBITDA Advances
Canadian Natural Gas Pipelines generated comparable EBITDA of C$961 million, up 4.1% from C$923 million in the year-ago quarter. The improvement primarily reflected higher flow-through depreciation on the NGTL and Canadian Mainline systems, along with increased incentive earnings on NGTL.
U.S. Natural Gas Pipelines’ comparable EBITDA increased 11.8% to C$1.22 billion. Mexico Natural Gas Pipelines delivered C$409 million, up 28.2%, driven by contributions from the Southeast Gateway pipeline and higher earnings from Sur de Texas. Power and Energy Solutions’ comparable EBITDA climbed 19.9% to C$361 million on stronger Bruce Power results.
TC Energy's Pipeline Volumes Improve
Canadian Natural Gas Pipelines’ deliveries averaged 24.2 billion cubic feet per day (Bcf/d), up 1% year over year. Canadian Mainline Western receipts averaged 4.6 Bcf/d, representing a 4% increase from the prior-year quarter.
U.S. pipeline flows increased 5% to 27 Bcf/d, while deliveries to liquefied natural gas facilities rose 13% to 3.9 Bcf/d. Mexico pipeline flows declined 5% to 3.4 Bcf/d, primarily due to pipeline flow adjustments. Deliveries to Mexican power-generation facilities remained unchanged at 1.4 Bcf/d.
TRP's Power Assets Deliver Strong Availability
Bruce Power achieved 98.5% availability during the quarter and recorded no forced outage days. Its Unit 3 reactor returned to service following a major component replacement project more than seven months ahead of the schedule committed to Ontario’s Independent Electricity System Operator.
The Unit 3 refurbishment also cost 15% less than the Unit 6 program. Bruce Power expects to return approximately C$150 million to Ontario ratepayers because of the favorable project performance. Meanwhile, TC Energy’s cogeneration power plant fleet recorded availability of 89.6%, reflecting planned spring outages.
TC Energy's Growth Backlog Expands
TRP sanctioned C$700 million of projects during the second quarter, bringing total projects approved in 2026 to approximately C$3 billion. The company also increased its pending-approval portfolio to roughly C$7 billion and identified more than C$20 billion of additional projects in origination.
New projects include the Central Virginia Capacity expansion, with an estimated cost of $300 million, and the $100-million Clark project. These U.S. developments are supported by 20-year take-or-pay contracts and have a weighted-average build multiple of approximately 5.8 times. TC Energy also approved C$100 million of expansion facilities on the NGTL system.
TRP’s Expenditure and Balance Sheet
The company placed approximately C$1.8 billion of projects into service during the first six months of 2026. These included the Bison XPress project, Bruce Power Unit 3 and capacity additions on the NGTL system.
Capital spending totaled C$1.12 billion in the second quarter, down from C$1.38 billion a year earlier. Net cash provided by operations increased to C$2.22 billion from C$2.17 billion, while comparable funds generated from operations rose to C$2 billion from C$1.96 billion.
The company had cash and cash equivalents worth C$277 million and long-term debt of C$14.71 billion, with a debt-to-capitalization of 62.7% as of the same date.
TC Energy's 2026 Outlook Strengthens
Management now expects comparable EBITDA to reach the upper end of its C$11.6-C$11.8 billion guided range. Comparable earnings per share are still projected to exceed the 2025 level. Net capital expenditures are expected between C$5.5 billion and C$6 billion.
TRP continues to target comparable EBITDA of C$12.6-C$13.1 billion in 2028. Management cited strong asset availability, rate-case outcomes, project execution, commercial optimization and technology initiatives as key drivers. The company remains committed to achieving its long-term debt-to-EBITDA target of 4.75 times.
TRP Targets Demand-Led Long-Term Growth
TC Energy raised its forecast for incremental North American natural gas demand through 2035 to be 51 Bcf/d, representing a 40% increase from 2025 levels. Power generation accounts for more than half of the latest forecast increase, reflecting growing electricity and data-center requirements.
This Zacks Rank #3 (Hold) company is also advancing artificial intelligence initiatives designed to improve pipeline operations. Management expects these efforts to contribute C$100 million of incremental EBITDA in 2026 and indicated that it was roughly halfway toward that target after the first two quarters. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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.
Houston, TX-based oil and gas equipment and services provider Halliburton HAL posted second-quarter 2026 adjusted net income per share of 55 cents, marginally beating the Zacks Consensus Estimate of 54 cents. Halliburton’s outperformance was backed by year-over-year revenue growth. However, the bottom line was flat compared with the prior-year level.
As of June 30, 2026, Halliburton had approximately $2 billion in cash and cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization of 39%.
Fort Worth, TX-based oil and gas exploration and production company Range Resources Corporation RRC reported second-quarter 2026 adjusted earnings of 79 cents per share, up 19.7% from 66 cents a year ago. Range Resources’ bottom line topped the Zacks Consensus Estimate of 56 cents by 41.1%. Strong quarterly results are driven by higher production and improved price realization.
The company’s net debt was $880.8 million at June 30, 2026, down 28% from $1.22 billion at year-end 2025. Range Resources repurchased $78 million of shares and paid $24 million in dividends during the quarter.
Houston, TX-based oil and gas storage and transportation company Kinder Morgan, Inc. KMI reported second-quarter 2026 adjusted earnings of 37 cents per share, beating the Zacks Consensus Estimate of 31 cents by 19.35%. Earnings increased 32.1% from 28 cents per share in the year-ago quarter. Strong quarterly results benefited from broad-based segment growth, led by higher natural gas transportation and gathering volumes. Natural gas transport volumes rose 7%, while gathering volumes increased 26%.
As of June 30, 2026, Kinder Morgan reported $89 million in cash and cash equivalents. Kinder Morgan’s net debt stood at $32.03 billion at quarter-end. The net debt-to-adjusted EBITDA ratio improved to 3.6X from 3.8X at the end of 2025.
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TC Energy Corporation (TRP): Free Stock Analysis Report
Halliburton Company (HAL): Free Stock Analysis Report
Range Resources Corporation (RRC): Free Stock Analysis Report
Kinder Morgan, Inc. (KMI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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