TRP: RBC Imagine™: B-E-A-utiful

Research evidence excerpt

TRP: RBC Imagine™: B-E-A-utiful

TC Energy Corporation

Target/Upside/Downside Scenarios Investment summary

We expect TC Energy to outperform other energyTC Energy Corporation

infrastructure companies in our coverage universe for the

120 125 Weeks 12FEB24 - 03JUL26 following reasons:

TARGETTARGET 104.00104.00

100 CURRENTCURRENT 94.7194.71 • Embedded value in the platform. We believe the market

90 continues to value the cash flow stability and long-

80 term growth potential of TC Energy, particularly in an

60 environment where there is a heightened focus on

50 infrastructure that supports energy resilience and secular

40 load growth. Backed by an improved project execution

150m platform, as exemplified by the recent Southeast Gateway

100m

50m project completion that was on time and under budget, we

2024 2025 2026

F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J see the company being able to deliver its targeted growth

TRP CN Rel. S&P/TSX COMP IDX MA 40 weeks while adhering to its financial guardrails, including meeting

Source: Bloomberg and RBC Capital Markets estimates for Target its 4.75x debt/EBITDA objective.

Valuation • We believe TC Energy has an attractive and unique

Our $104.00 per share price target is based on roughly 15x EV/ portfolio of low-risk, utility-like assets that can be

EBITDA or 25x 2027E P/E forward multiples. On EV/EBITDA, attractive for many investors. Following the spin-off, TC

the valuation reflects a range of 10.5-17x for TC Energy's Energy’s assets consist primarily of low-risk regulated or

assets, with the Mexico natural gas pipeline and non-Bruce long-term contracted natural gas pipelines in Canada,

Power assets within the Power and Energy Solutions segment the U.S. and Mexico (connecting natural gas from supply