Costs related to the project had prompted TC Energy to raise its 2022 capital expenditure forecast to about C$9.5 billion (US$7.07 billion) in November. It now expects “a material increase” in the project’s funding requirements, too, as the company continues to grapple with rising labor costs and shortages.
The pipeline is about 80% complete with mechanical in-service expected by the end of next year, TC Energy said.
The company expects adjusted core earnings for 2023 to be 5% to 7% higher than the previous year.
Despite the challenging macro environment, about 95% of the projected adjusted core earnings are under long-term take-or-pay contracts which insulate it against rising inflation and interest rates, the company said.
“Although Phase One of Coastal GasLink has been challenged by cost performance, we do not expect any impact on the sustainability of our dividend growth rate of 3% to 5% or our ability to accelerate our deleveraging target from 2026,” CEO François Poirier said in a statement.
2023-02-01 - With the Lario Permian deal closed, Diamondback wraps up a pair of fourth-quarter 2022 deals in which it purchased private Midland Basin operators for a total of about $3.3 billion.
2023-01-04 - Solaris’ new electrical blender has higher up time than its traditional counterparts, while a mobile bucket elevator speeds up the sand delivery process
2023-02-03 - Miniature quartz gauge measures reservoir conditions through cement in real time.
2022-11-21 - Changing capital cost models make e-frac systems within reach for more operators, according to Baker Hughes’ Steve Goldstein.
2023-01-06 - Bi-directional communications give operators more data about the downhole environment, allowing them to make better decisions in real-time.