Slides
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SECOND QUARTER 2026 CONFERENCE CALL J U L Y 3 0 , 2 0 2 6
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CALL PARTICIPANTS T C E N E R G Y S E C O N D Q U A R T E R 2 0 2 6 C O N F E R E N C E C A L L Greg Grant Executive Vice-President and President, Power and Energy Solutions Gavin Wylie Vice-President, Investor Relations and Sustainability François Poirier President and Chief Executive Officer Tina Faraca Executive Vice-President and Chief Operating Officer, Natural Gas Pipelines Sean O’Donnell Executive Vice-President and Chief Financial Officer
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Forward-looking information and non-GAAP/supplementary financial measures This release contains certain information that is forward -looking and is subject to important risks and uncertainties and is bas ed on certain key assumptions. Forward -looking statements are usually accompanied by words such as "anticipate", "expect", "beli eve", "may", "will", "should", "estimate" or other similar words. Forward -looking statements in this presentation may include, but are not limited to, statements related to expectations with respect to expected comparable EBITDA, comparable earnings in total a nd per common share and the sources and drivers thereof, expectations with respect to anticipated capital expenditures and net capit al expenditures and the timing thereof, expectations with respect to identified approved and future projects, including associat ed capital expenditures, timelines, in -service dates, targeted build multiple ranges and weighted average after -tax internal rates of retur n, expectations regarding the value and advancement of projects in our origination pipeline, expectations with respect to com pleted projects and expected impacts thereof, expectations regarding benefit -sharing or cost -sharing arrangements in respect of our power genera tion assets, expectations regarding the cost and schedule performance of the Bruce Power Major Component Replacement program, including cost efficiencies, expectations on rate case settlements and timing of approved settlement terms, expectations with respect to our ability to deploy capital at targeted build multiples and achieve expected returns on invested capital, expectat ions with respect to our strategic priorities, and the execution thereof, expectation on the value of and risk profile of our increment al growth projects, expectations with respect to our ability to maximize the value of our assets through safety and operational excellence, expectations regarding financial ratio targets, including our long -term debt -to-EBITDA, expectations with respect to our environ mental and sustainability targets, including our methane emissions intensity reduction target, expectations on long -term value c reation, expected cost and schedules for planned projects, including projects under construction and in development, expectations abou t energy demand levels and drivers thereof, including increased natural gas demand and demand from LNG exports, power generation and data centres, and our ability to meet expected energy demand, expectations regarding the competitive positioning and long -term value contrib ution of specific assets and our ability to capture growth opportunities, expectations about our ability to execute our identified portfolio of growth projects and ensure financial strength and agility, our ability to deliver low -risk, solid growth and repeatable performance, expected industry, market and economic conditions, and ongoing trade negotiations, including thei r expected impact on our business, customers and suppliers. Our forward -looking information is subject to important risks and uncertainties and is based on certain key assumptions. Forward -looking statements and future -oriented financial information in this document are intended to provide TC Energy security holder s and potential investors with information regarding TC Energy and its subsidiaries, including management's assessment of TC Energy 's and its subsidiaries' future plans and financial outlook. All forward -looking statements reflect TC Energy's beliefs and assumpt ions based on information available at the time the statements were made and as such are not guarantees of future performance. As actual results could vary significantly from the forward -looking information, you should not put undue reliance on forward -looking inform ation and should not use future -oriented information or financial outlooks for anything other than their intended purpose. We do not u pdate our forward -looking information due to new information or future events, unless we are required to by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from the anti cipated results, refer to the most recent Quarterly Report to Shareholders and the 2025 Annual Report filed under TC Energy's pr ofile on SEDAR+ at www.sedarplus.ca and with the U.S. Securities and Exchange Commission at www.sec.gov and the "Forward -looking information" section of our Report on Sustainability which is available on our website at www.TCEnergy.com . This presentation refers to certain non -GAAP measures, non -GAAP ratios and/or supplementary financial measures, namely: comparab le EBITDA, adjusted comparable EBITDA, comparable earnings, comparable earnings per share, adjusted debt, debt -to-EBITDA, build multiple, net capital expenditures and weighted average after -tax internal rate of return (ATIRR), each of which does not have a ny standardized meaning as prescribed by U.S. GAAP and therefore may not be comparable to similar measures presented by other entities. The most directly comparable measures presented in the financial statements are: (i) in respect of comparable EBITDA and adju sted comparable EBITDA, segmented earnings, (ii) in respect of comparable earnings and comparable earnings per common share (EPS ), net income (loss) attributable to common shares and net income (loss) per share, respectively and (iii) in respect of adjusted de bt, debt. Debt -to-EBITDA is a non -GAAP ratio, which is calculated using adjusted debt and adjusted comparable EBITDA, each of which are non-GAAP measures. Build multiple is non -GAAP ratio which is calculated using capital expenditures and comparable EBITDA, of whi ch comparable EBITDA is a non -GAAP measure. We believe debt -to-EBITDA ratios provide investors with a useful credit measure as they reflect our ability to service our debt and other long -term commitments. We believe build multiple provides investors with a useful measure to evaluate capital projects. For reconciliations and usefulness of comparable EBITDA to segmented earnings, comparable earnings to net income (loss) attributable to common shares and comparable earnings per share to net income per common share, refer to the applicable business segment in our management’s discussion and analysis (MD&A) for the applicable period, which se ctions are incorporated by reference herein and to the Appendices hereto. For composition and usefulness of net capital expenditures refer to the supplementary financial measures section in our MD&A for the applicable period, which sections are incorporated by reference herein and to the Appendices hereto. For the remaining reconciliations for non -GAAP measures, non -GAAP ratios and supp lementary financial measures, refer to the Appendices hereto. Refer to the non -GAAP measures section of the MD&A in our most recent quarterly report for more information about the non -GAAP measures we use, which section of the MD&A is incorporated by re ference. The MD&A can be found on SEDAR+ at www.sedarplus.ca under TC Energy’s profile. The presentation further refers to net capital expenditures and weighted average ATIRR, each of which are supplementary finan cial measures. Net capital expenditures represent capital costs incurred for growth projects, maintenance capital expenditures, contributions to equity investments and projects under development, adjusted for the portion attributed to non -controlling inter ests in the entities we control. Net capital expenditures reflect capital costs incurred during the period, excluding the imp act of timing of cash payments. We use net capital expenditures as a key measure in evaluating our performance in managing our capital spendin g activities in comparison to our capital plan. ATIRR represents the expected compound annual return of a project or investment, and prior to any assumption of debt and/or equity financing. Weighted average ATIRR is calculated across all projects based on ea ch project’s capital expenditures. We believe weighted average ATIRR and ATIRR are useful measures to evaluate expected project returns relative to established hurdle rates and/or alternative projects being considered for capital allocation purposes. This presentation contains statistical data, market research and industry forecasts that were obtained from third party sourc es, industry publications and publicly available information. We believe that the market and industry data presented throughout t his presentation is accurate and, with respect to data prepared by us or on our behalf, that our estimates and assumptions are re asonable, but there can be no assurance as to the accuracy or completeness thereof. The accuracy and completeness of the market and industry data presented throughout this presentation is not guaranteed and we make no representation as to the accuracy of su ch information. Although we believe it to be reliable, we have not independently verified any of the data from third -party sources referred to in this presentation or analyzed or verified the underlying studies or surveys relied upon or referred to by such sources, or ascertained the underlying economic and other assumptions relied upon by such sources and we make no representation as to the accuracy of such data. Actual outcomes may vary materially from those forecast in such reports or publications, and the prospect for m aterial variation can be expected to increase as the length of the forecast period increases. Market and industry data is subjec t to variations and cannot be verified due to limits on the availability and reliability of data inputs, the voluntary nature of the data gat hering process and other limitations and uncertainties inherent in any statistical survey. T C E N E R G Y S E C O N D Q U A R T E R 2 0 2 6 C O N F E R E N C E C A L L 3
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T C E N E R G Y S E C O N D Q U A R T E R 2 0 2 6 C O N F E R E N C E C A L L FRANÇOIS POIRIER President and Chief Executive Officer Incumbency fuels competitive advantage Converting demand into high - return growth Safety and execution excellence
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Advancing projects through the development pipeline Expanding capital backlog drives long-term EBITDA growth visibility (1) Comprised of multiple distinct programs with various targeted in-service dates beginning in 2026, subject to final company and regulatory approvals. (2) Unlevered after-tax internal rate of return (ATIRR) is a supplementary financial measure. Build multiple is a metric calculated by dividing expected capital expenditures by expected comparable EBITDA, which is a non-GAAP measure. Non-GAAP measures and supplementary financial measures do not have any standardized meaning under GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. See the forward-looking information and non-GAAP/supplementary financial measures slide at the front of this presentation and the Appendix for more information. (3) Pending approval reflects capital from 2026-2031. (4) Excludes pending approval. 5 P E N D I N G A P P R O V A LP R O J E C T A N N O U N C E M E N T SP L A C E D I N S E R V I C E ~$2 billion placed into service year-to-date ~$3.5 billion ~$7 billion of projects in pending approval(3) ~12% ~$3 billion sanctioned year-to-date FOR DISCUSSION PURPOSES OF THE TTFP - CONFIDENTIAL COMMUNICATION T C E N E R G Y S E C O N D Q U A R T E R 2 0 2 6 C O N F E R E N C E C A L L Targeting 5 – 7x build multiples (2) Advanced commercial discussions on multiple projects I N O R I G I N A T I O N $20+ billion of additional projects in origination(4) expected to be placed into service in 2026 weighted average ATIRR(2) Bruce Power MCR Unit 3 Berland River Leming Lake Bison XPress Central Virginia Capacity Clark Project MYGP(1) expansion facilities Appalachia Supply Project Other capital projects
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FOR DISCUSSION PURPOSES OF THE TTFP - CONFIDENTIAL COMMUNICATION T C E N E R G Y S E C O N D Q U A R T E R 2 0 2 6 C O N F E R E N C E C A L L (1) TC Energy internal data and forecast 2026. TC Energy connects growing demand with abundant supply North American natural gas demand growth outlook increased to 51 Bcf/d by 2035(1) Demand growth underpins TC Energy's expanding backlog POWER GENERATION +16 Bcf/d (2025 – 2035) SUPPLY ACCESS +51 Bcf/d (2025 – 2035) Over 60% of natural gas production is forecast to come from diverse, TC Energy-connected basins Over 100 years of abundant and economic North American natural gas supply at current production levels Accelerating power demand accounts for more than half of the 11 Bcf/d year-over-year forecast increase ~70% of natural gas-fired power demand growth to come from U.S. Heartland, Alberta and Mexico +11 Bcf/d North America natural gas outlook (1) Bcf/d +51 Bcf/d LNG Power Industrial Residential/commercial Other Year-over-year forecast increase 6
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New U.S. projects sanctioned at 5.8x weighted average build multiple(1) Operational flexibility with integrated pipe/storage Central Virginia Capacity ~US$0.3 billion capital cost 0.4 Bcf/d capacity 6.4x build multiple(1) 2028-2030E in-service 20 year take-or-pay contract Clark Project ~US$0.1 billion capital cost 0.3 Bcf/d capacity 4.4x build multiple 2028E in-service 20 year take-or-pay contract MYGP(2) expansion facilities ~$0.1 billion capital cost 10.1% regulated ROE(3) 2028E in-service Competitive advantages New project announcements T C E N E R G Y S E C O N D Q U A R T E R 2 0 2 6 C O N F E R E N C E C A L L Gillis Access Extension SE Virginia Energy Storage Pulaski Appalachia Supply Project Heartland Maysville Clark Project TCO Optimization Cedar Link Multi-Year Growth Plan expansion TC Energy assets Regional natural gas demand growth 2025 – 2035(4) Lower Higher Why we are growing our backlog and capturing growth Note: project locations shown for illustrative purposes. (1) Build multiple is a metric calculated by dividing expected capital expenditures by expected comparable EBITDA, which is a non-GAAP measure. Weighted average build multiple is calculated across all projects based on each project's capital expenditures. Non-GAAP measures do not have any standardized meaning under GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. See the forward-looking information and non-GAAP/supplementary financial measures slide at the front of this presentation and the Appendix for more information. (2) Comprised of multiple distinct programs with various targeted in-service dates beginning in 2026, subject to final company and regulatory approvals. (3) Return on equity on 40 per cent deemed common equity. (4) TC Energy internal data and forecast 2026. Northwoods Midwest Connector Bruce Power MCR Extensive footprint and market reach Dominant access to low-cost supply Innovative commercial offerings Newly announced In-flight TC Energy projects: Central Virginia Capacity 7
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(1) TC Energy internal data and forecast 2026. (2) 2031 NGTL Segment 4 FT-R Service Offering is ~500mmcf/d and 2031 NGTL FT-R Service Offering will not be limited. (3) As part of the TCPL 2027-2030 Mainline Settlement, TransCanada Pipelines Limited committed to recommending for company approval up to a maximum of $200M of Settlement Capacity Growth Capital for capacity subscribed through executed agreements. LNG Power Industrial Residential/ Commercial Other Intra-Alberta Export Receipt >0.5 Bcf/d(2) 2031E in-service Offerings ongoing and opening Q3 2026 775 TJ/d 2029 – 2032E in-service Offerings complete and ongoing 325 TJ/d + $0.2 billion growth capital(3) 2027 – 2032E in-service Offerings ongoing Fully subscribed 2029 Greater Edmonton Area Record data centre participation 2030-2032 Intra-Alberta Over 8 Bcf/d To be captured in potential future offerings T C E N E R G Y S E C O N D Q U A R T E R 2 0 2 6 C O N F E R E N C E C A L L Canadian natural gas demand outlook (1) Bcf/d +65% TC Energy assets Canadian natural gas demand growth supported by market signals 8
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(1) Adjustments due to asset management work not shown but occur every third year starting in 2016. Bruce Power execution driving meaningful efficiency gains 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Unit 6 Unit 3 Unit 4 Unit 7 Unit 8 Unit 5 MCR-related price increase(1)Actual (units 6 & 3) or IESO MCR schedule Unit 6 & 3 completion ahead of IESO schedule ~15% reduction in cost Unit 6 → Unit 3 FOR DISCUSSION PURPOSES OF THE TTFP - CONFIDENTIAL COMMUNICATION T C E N E R G Y S E C O N D Q U A R T E R 2 0 2 6 C O N F E R E N C E C A L L In service >7 months ahead of original IESO schedule with ~$150 million to be delivered back to Ontario ratepayers Key success factors Experienced workforce Bruce Power Unit 3 Major Component Replacement (MCR) Continuous learning Innovation and automation improve productivity Disciplined planning and governance Design maturity reduces execution risk Supply chain readiness Readiness review with strong decision gate mechanism Repeatable approach 9
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T C E N E R G Y S E C O N D Q U A R T E R 2 0 2 6 C O N F E R E N C E C A L L SEAN O’DONNELL Executive Vice-President and Chief Financial Officer Opportunity - driven capital allocation Tracking upper end of 2026 outlook Discipline in execution
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(1) Comparable EBITDA is a non-GAAP measure. See the forward-looking information and non-GAAP/supplementary financial measures slide at the front of this presentation and the Appendix for more information. (2) Represents NGTL System and Canadian Mainline net income. (3) Defined as the percentage of time the plant was available to generate power, regardless of whether it was running. Excludes MCR outage days. Q2 HIGHLIGHTS Operational excellence fuels 12% growth in comparable EBITDA(1) CANADIAN NATURAL GAS PIPELINES T otal system deliveries averaged 24.2 Bcf/d, up 1% vs. Q2 2025 Canadian Mainline Western receipts averaged 4.6 Bcf/d, up 4% vs. Q2 2025 Net income(2) +1% vs. Q2 2025 2,625 2,948 38 129 90 60 6 Q2 2025 Canadian Natural Gas Pipelines U.S. Natural Gas Pipelines Mexico Natural Gas Pipelines Power and Energy Solutions Corporate Q2 2026 +12% $Millions Comparable EBITDA U.S. NATURAL GAS PIPELINES Daily average flows of 27.0 Bcf/d, up 5% vs. Q2 2025 Deliveries to LNG facilities averaged 3.9 Bcf/d, up 13% vs. Q2 2025 Gillis Access set an all-time delivery record of 1.5 Bcf on July 3, 2026 Comparable EBITDA +12% vs. Q2 2025 MEXICO NATURAL GAS PIPELINES Daily average flows were 3.4 Bcf/d, down 5% vs. Q2 2025 Deliveries to natural gas-powered generation averaged 1.4 Bcf/d, in line with Q2 2025 Comparable EBITDA +28% vs. Q2 2025 POWER AND ENERGY SOLUTIONS Achieved Bruce Power availability(3) of 98.5% Cogeneration power plant fleet achieved 89.6% availability Comparable EBITDA +20% vs. Q2 2025 T C E N E R G Y 2 0 2 3 I N V E S T O R D A YT C E N E R G Y T C E N E R G Y S E C O N D Q U A R T E R 2 0 2 6 C O N F E R E N C E C A L L 11
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2025 2026E 2028E Comparable EBITDA(1) outlook $Billions Note: Forecast foreign exchange assumption USD/CAD: 1.36 - 1.39. (1) Comparable EBITDA is a non-GAAP measure. See the forward-looking information and non-GAAP/supplementary financial measures slide at the front of this presentation and the Appendix for more information. 11.0 11.6 – 11.8 12.6 – 13.1 Key drivers to comparable EBITDA outlook Revenue enhancements and rate case outcomes Government policies aiding new builds Bringing assets into service earlier Technological innovations, including AI-enabled solutions Capital and operational efficiencies Commercial marketing between natural gas and power Availability of our Power and Energy Solutions assets and Alberta power prices Foreign exchange movements (USD/CAD; USD/MXN) Operational and commercial excellence is converting execution gains into 2026 tailwinds FOR DISCUSSION PURPOSES OF THE TTFP - CONFIDENTIAL COMMUNICATION T C E N E R G Y S E C O N D Q U A R T E R 2 0 2 6 C O N F E R E N C E C A L L Canadian Natural Gas Pipelines U.S. Natural Gas Pipelines Mexico Natural Gas Pipelines Power and Energy Solutions Targeting upper end of 2026 outlook 12
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Net capital expenditures(1) T C E N E R G Y 2 0 2 3 I N V E S T O R D A YT C E N E R G Y T C E N E R G Y S E C O N D Q U A R T E R 2 0 2 6 C O N F E R E N C E C A L L Disciplined growth ensures financial strength and flexibility Future capital investment will be driven by project opportunities In origination(3) growth projects by demand driver through 2034 11% 17% 5% LNG Power generation Supply access LDC reliability Note: Forecast foreign exchange assumption USD/CAD: 1.36-1.39. (1) Net capital expenditures is adjusted for the portion attributed to non-controlling interests and is a supplementary financial measure. See the forward-looking information and non-GAAP/supplementary financial measures slide at the front of this presentation and the Appendix for more information. (2) Represents most advanced in origination projects and excludes pending approval. (3) Excludes sanctioned capital and pending approval. $Billions Canadian Natural Gas Pipelines U.S. Natural Gas Pipelines Mexico Natural Gas Pipelines Power and Energy Solutions Net capital expenditures pending approval Net capital expenditures in origination(2) $20+ billion 67% 13
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T C E N E R G Y 2 0 2 3 I N V E S T O R D A YT C E N E R G Y 2 0 2 5 E X P A N D E D Q 3 C A L LT C E N E R G Y T C E N E R G Y S E C O N D Q U A R T E R 2 0 2 6 C O N F E R E N C E C A L L 2025 Sustainability performance highlights Enabling solid growth, low risk and repeatable performance 24% $5.4 billion 66% ZERO Methane intensity reduction since 2019(1) while increasing throughput by 20% and growing Natural Gas Pipelines comparable EBITDA(2) by 57% Invested with Indigenous and Native American businesses from 2021 – 2025(3) Improvement in HSIF rate(4) in 2025 vs. 2024 while placing $8.3 billion of assets into service 15% under budget Significant process safety incidents(5) while achieving >97.1% asset availability (1) Target addresses Scope 1 methane emissions associated with our natural gas transmission and gas storage assets, expressed in tonnes of CH4 per Bcf. Target progress is measured under the operational control reporting boundary, relative to the 2019 baseline year intensity of 10.72 tonnes CH4/Bcf, which has been recalculated to align with the structural and methodological changes noted for the 2020 through 2023 reporting periods. (2) Comparable EBITDA is a non-GAAP measure. See the forward-looking information and non-GAAP/supplementary financial measures slide at the front of this presentation and the Appendix for more information. (3) Includes Tier 1 and Tier 2 Canadian Indigenous spend and U.S. Native American spend. (4) TC Energy defines high-energy serious injury and fatality (HSIF) as an incident involving a release of high energy (greater than 1,500 Joules of physical energy) without direct control, resulting in a life-threatening or life-altering injury. (5) Defined as unplanned or uncontrolled releases of hazardous material that result in severe consequences. They are a subset of Tier 1 process safety incidents. Refer to Report on Sustainability for more information. 14
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(1) Major, critical, or catastrophic events. (2) Comparable EBITDA is a non-GAAP measure. Debt-to-EBITDA is a non-GAAP ratio calculated using adjusted debt and adjusted comparable EBITDA. Non-GAAP measures and ratios do not have any standardized meaning under U.S. GAAP and may not be comparable to similar measures presented by other companies. See the forward-looking informationand non-GAAP/supplementary financial measures slide and the Appendix for more information. (3) Relative to original IESO schedule. MAXIMIZE THE VALUE OF OUR ASSETS THROUGH SAFETY AND OPERATIONAL EXCELLENCE • Announcing ~$0.7 billion of new growth projects primarily serving power generation and data centre demand • Launched multiple NGTL service offerings to support ~1 Bcf/d of incremental system throughput • Bruce Power Unit 3 returned to service >7 months ahead of schedule (3); Unit 4 tracking to cost and schedule EXECUTE OUR SELECTIVE PORTFOLIO OF GROWTH PROJECTS ENSURE FINANCIAL STRENGTH AND AGILITY Delivering on 2026 priorities • Targeting upper end of 2026E comparable EBITDA outlook of $11.6 – $11.8 billion • Advanced our methane intensity target while supporting system competitiveness and strong financial performance • On track to deliver long -term target of 4.75x debt-to-EBITDA(2) • Strong process safety performance with zero Tier 1(1) events year-to-date • Delivered ~12% comparable EBITDA(2) growth in Q2 2026 vs. Q2 2025 • Filed settlement agreement on Great Lakes and received FERC approval on ANR • Received CER approval of 2027 – 2030 settlement for Canadian Mainline T C E N E R G Y S E C O N D Q U A R T E R 2 0 2 6 C O N F E R E N C E C A L L 15
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T C E N E R G Y 2 0 2 3 I N V E S T O R D A YT C E N E R G Y F I R S T Q U A R T E R 2 0 2 5 C O N F E R E N C E C A L L Appendix Appendix B: Comparable EBITDA Appendix C: Net Income (loss) to comparable earnings Appendix D: Adjusted debt/adjusted comparable EBITDA (debt-to-EBITDA) Appendix E: Segmented earnings and comparable EBITDA Appendix F: Unlevered after-tax internal rate of return and Weighted average unlevered after-tax internal rate of return Non-GAAP reconciliations T C E N E R G Y S E C O N D Q U A R T E R 2 0 2 6 C O N F E R E N C E C A L L Appendix A: Year-over-year comparable earnings waterfall 16
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Appendix A – Year-over-year comparable earnings waterfall 848 984 323 11 Income tax (expense) recovery incl. in comparable earnings Preferred share dividends Q2 2026 -22 Interest income and other -15 FX gains (losses), net incl. in comparable earnings -27 AFUDCDepreciation and amortization -54 Q2 2025 Interest expense inlc. in comparable earnings -13 -66 Comparable EBITDA(1) -1 16% $Millions Comparable earnings(1) (1) Comparable EBITDA and comparable earnings are non-GAAP measures. See the forward-looking information and non-GAAP/supplementary financial measures slide at the front of this presentation and the Appendix for more information. Net (income) loss attributable to non- controlling interests incl. in comparable earnings 17
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(Millions of dollars) Appendix B – Non-GAAP reconciliations – Comparable EBITDA(1) (1) Comparable EBITDA and comparable earnings are non-GAAP measures. See the forward-looking information and non-GAAP/supplementary financial measures slide at the front of this presentation and the Appendix for more information. 18
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(1) Comparable earnings and comparable earnings per common share are non-GAAP measures. See the forward-looking information and non-GAAP/supplementary financial measures slide at the front of this presentation and the Appendix for more information. Appendix C – Non-GAAP reconciliations – Net Income (loss) to comparable earnings(1) (Millions of dollars, except per share amounts) 19
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Appendix D: Non-GAAP reconciliations – Adjusted debt/adjusted comparable EBITDA (debt-to-EBITDA) Adjusted debt and adjusted comparable EBITDA are non-GAAP measures used to compute the debt-to-EBITDA multiple. Each of adjusted debt and adjusted comparable EBITDA measures does not have any standardized meaning prescribed by U.S. GAAP and therefore, may not be comparable to similar measures presented by other companies. Adjusted debt is defined as the sum of Reported total debt, including Notes payable, Long-term debt, Current portion of long-term debt and Junior subordinated notes, as reported on our Consolidated balance sheet as well as Operating lease liabilities recognized on our Consolidated balance sheet and 50 per cent of Preferred shares as reported on our Consolidated balance sheet due to the debt-like nature of their contractual and financial obligations, less Cash and cash equivalents as reported on our Consolidated balance sheet and 50 per cent of Junior subordinated notes as reported on our Consolidated balance sheet due to the equity-like nature of their contractual and financial obligations. Adjusted comparable EBITDA is calculated as the sum of comparable EBITDA from continuing operations and comparable EBITDA from discontinued operations excluding Operating lease costs recorded in Plant operating costs and other in our Consolidated statement of income and adjusted for Distributions received in excess of (income) loss from equity investments and a Loan from affiliate as reported in our Consolidated statement of cash flows which we believe is more reflective of the cash flows available to TC Energy to service our debt and other long-term commitments. Beginning in 2025, we entered into a subordinated demand revolving credit facility to borrow funds from the Sur de T exas joint venture and received proceeds totaling $111 million during the year . We believe that debt-to-EBITDA provides investors with useful information as it reflects our ability to service our debt and other long-term commitments. 20
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(1) Adjusted debt and adjusted comparable EBITDA are non-GAAP measures. The calculations are based on management methodology. Individual rating agency calculations will differ. (2) 50 per cent debt treatment on $2.3 billion of preferred shares as of December 31, 2025. (3) 50 per cent equity treatment on $12.1 billion of junior subordinated notes as of December 31, 2025. U.S. dollar-denominated notes translated at December 31, 2025, USD/CAD foreign exchange rate of 1.37. (4) Comparable EBITDA is a non-GAAP measure. See the forward-looking information and non-GAAP/supplementary financial measures slide at the front of this presentation and the Appendix for more information. (5) Comparable EBITDA from discontinued operations represents nine months of Liquids Pipelines earnings in 2024 compared to a full year of earnings in 2023. Appendix D: Non-GAAP reconciliations – Adjusted debt/adjusted comparable EBITDA(1) (debt-to-EBITDA) (Millions of dollars) 21
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Comparable EBITDA(1) outlook ($Billions) Note: Forecast foreign exchange assumption USD/CAD: 1.36-1.39. (1) Comparable EBITDA is a non-GAAP measure. See the forward-looking information and non-GAAP/supplementary financial measures slide at the front of this presentation and the Appendix for more information. Comparable EBITDA Appendix E: Non-GAAP reconciliations – Segmented earnings and comparable EBITDA(1) 22
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Appendix F: Non-GAAP measures – Unlevered after-tax internal rate of return and Weighted average unlevered after-tax internal rate of return Unlevered after-tax internal rate of return represents the expected compound annual return of a project or investment, and prior to any assumption of debt and/or equity financing. Unlevered after-tax internal rate of return may be calculated using different assumptions depending on the project or business segment. Unlevered after-tax internal rate of return is a supplementary financial measure which does not have any standardized meaning under U.S. GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. See the forward-looking information and non-GAAP measures slide at the front of the presentation for more information. Weighted average unlevered after-tax internal rate of return is calculated across all projects based on each project’s capital expenditures. We believe both Weighted average unlevered after-tax internal rate of return and Unlevered after-tax internal rate of return are useful measures to evaluate expected project returns relative to established hurdle rates and/or alternative projects being considered for capital allocation purposes. 23