TC Energy Corporation (NYSE:TRP) Q4 2022 Earnings Call Transcript

And once we work through that, at that time, we’ll be getting with FINSA on a path towards how we return the system back to baseline operations. And I — at this point in time, I don’t have a time frame that I can communicate on that. But we’ll continue to be transparent as we’ve been up to date, and we’ll continue to update our website. And we’ll keep our customers and all stakeholders up-to-date as new developments occur. With regards to your question around the cost estimates, so — to complete this work, we recorded a liability of $480 million, which is our current cost estimate of the total cost, both to repair the site and to complete all the environmental remediations. We do have appropriate insurance coverage in place for these types of events, and we’re working with our insurances on this.

And it’s probable that the majority of the estimated costs are going to be eligible for full recovery.

Operator: Our next question comes from Robert Kwan of RBC Capital Markets. Please go ahead.

Robert Kwan: I can come back to CGL. And Bevin, so you talked about a lot about the winter construction activities. Are those the only — or are those the biggest critical path items, i.e., by the time you get to June and July or put differently, the Q2 reporting in August that you’ve got pretty much a very good picture on timing and costs? Or are there other critical path items in the summer and into the fall? And what would those be?

Francois Poirier: So Robert, where we’ve moved to a part of the project now or a point in the project with 84% complete that we’re not executing large spreads, hundreds of kilometers of pipeline. We’re really in a series of crossings, tie-ins, hydro testing, discrete scopes of work that we’ve been able to, A, contract appropriately; B, put mitigation plans where we brought in additional tie-in type crews, other kind of specialty expertise to help us accomplish these discrete scopes of work. They are throughout the project. So there’s not a day that goes by that is not critical. We are reliant on one or two scopes of work. We have to execute as we have been safely and efficiently through the entire year. So our focus is relentless on this. There’s not one or two critical path items that are going to stop as we just have to remain focused on executing the plan that’s in front of us today.

Robert Kwan: If I can turn and finish with asset sales here. So you’ve got the messaging where you are at the 5 plus. I’m just wondering, you talked about being able to get to 5 times by the end of 2023. Does that plan in terms of your internal numbers and the discussions you’ve had with the rating agencies. I know that gets you to that 5 times, you’re messaging that and then your 2026 4.75 target, but does it adequately manage the metrics in the years in between, leading up to ’26 based on, again, your numbers versus the rating agency targets in your discussions with them?