says it is splitting into two separate companies, spinning off its liquids pipelines business from its natural gas and low-carbon energy operations.
The Columbia deal was the first in a program that TC Energy announced last fall to sell off its non-core assets and minority interests, to help fund expansion goals without accruing large amounts of debt. That includes the Coastal GasLink pipeline in British Columbia, which has an expected cost that hasTC Energy said Thursday that the decision to split its operations into two entities comes as a result of a two-year strategic review.
TC Energy’s earnings before interest, taxes, depreciation and amortization on its liquids pipeline business was $286-million in the second quarter of 2023, or 12 per cent of the company’s total, according to a recent analyst note from CIBC. Its gas pipelines, power and storage business EBITDA was $2.1-billion in the same quarter.
“We have determined that as two separate companies we can better execute on these distinct opportunity sets to unlock shareholder value,” he said.