Leverage Ratios and Deleveraging Plan
Q: Where do you see leverage in 2025 vs. 4.75% target?
A: With recent asset sales of $2.6 billion " , strong EBITDA performance, and CapEx trending to the lower end at $8 billion " , we're largely below the 4.75x debt-to-EBITDA target for 2024. " For 2025, we have partial-year benefits from assets going into service. To address this interim period, we have three levers: improving EBITDA performance, outperforming our capital spend plan, and considering additional divestitures if valuations are compelling. "

NGTL Settlement's EBITDA Impact
Q: Walk us through NGTL settlement's EBITDA uplift?
A: The NGTL settlement brings an EBITDA increase of around $200 million " , comprising $150 million from accelerated depreciation and $50 million from incentive mechanisms. " The $150 million was largely included in our plan, while the $50 million represents additional upside as incentives are realized. "

Asset Sales and Valuation Multiples
Q: Does NGTL sale set a 12x floor multiple for assets?
A: Yes, but it varies by asset. " NGTL's full cost-of-service regulation leads to low cash flow volatility, garnering attractive valuations as seen in the recent transaction. " The M&A market is robust due to strong fund flows and monetary easing. " We anticipate continued robust multiples, adjusting for asset classes and risk profiles. "

Columbia Verdict and Deleveraging
Q: How does the $400M verdict affect deleveraging?
A: We intend to appeal the court's decision " , with the process likely extending into 2025. " We can accommodate any required judgment or cash outlay while meeting our deleveraging objectives. " We're optimistic about a favorable outcome based on the case merits. "

Payout Ratio Strategy
Q: Thoughts on reducing payout ratios over time?
A: Our goal is to focus on reducing payout ratios in the second half of the decade. " Currently, we're concentrating on putting $16 billion of assets into service between 2024 and 2025. " After completing this, we'll assess our financial position and aim to reduce payout ratios over the long run. "

Early Completion of Southeast Gateway
Q: Could early SGP completion aid deleveraging?
A: Our plan is for Southeast Gateway to enter service mid-2025. " We're exploring bringing it into service early to enhance EBITDA performance. " It's early days, but ahead-of-schedule execution would help address partial-year leverage metrics in 2025. "

NGTL Settlement Details
Q: Is the $150M depreciation included in guidance?
A: Yes, the $150 million increased depreciation was largely included in our existing plan. " The additional $50 million from incentives represents upside as those mechanisms are realized. "

Growth Opportunities in Mexico
Q: Thoughts on growth in Mexico post-SGP?
A: We're bullish on Mexico's role in North American gas markets. " Completing projects like Southeast Gateway positions us for attractive, low-risk opportunities. " However, we aim to manage our Mexico exposure, currently around 15% of consolidated EBITDA " , and would seek to lower this before significant new investments.

Data Center Prospects
Q: Elaborate on data center opportunities in Canada?
A: Canada has around 300 data centers today, with load expected to increase by 1 to 2 gigawatts by decade's end. " In the U.S., over 60% of the 300 new data centers are within 50 miles of our pipelines. " We're well-positioned to serve this growing demand, building projects at 6x to 8x build multiples. "

Outlook for Storage Assets
Q: Outlook for commercial development of storage?
A: We're one of North America's largest storage operators, with around 650 Bcf under operation. " Demand remains strong, with storage capacity 100% contracted for eight consecutive years. " Over 80% of our storage is subscribed by LDC customers for reliability. " We expect this trend to continue, focusing on rate-regulated, integrated storage solutions. "