CALGARY, Alberta –July 31, 2008 – (TSX: TRP) (NYSE: TRP)
Second Quarter Highlights
(All financial figures are unaudited and in Canadian dollars unless noted otherwise)
• Net income for second quarter 2008 of $324 million ($0.58 per share) compared to $257 million
($0.48 per share) for the same period in 2007, an increase of approximately 21 per cent on a per share basis
• Comparable earnings for second quarter 2008 of $316 million ($0.57 per share) compared to
$241 million ($0.45 per share) for the same period in 2007, an increase of approximately 27 per
cent on a per share basis
• Funds generated from operations for second quarter 2008 of $676 million compared to $596
million for the same period in 2007, an increase of approximately 13 per cent
• Dividend of $0.36 per common share declared by the Board of Directors
• Proceeded with plans for a 500,000 barrel per day expansion and extension of the Keystone
crude oil pipeline system from western Canada to the U.S. Gulf Coast
• Construction began on the initial phase of Keystone that will serve markets in the U.S. Midwest
• Portlands Energy Centre went into service in simple-cycle mode on time and on budget
Pipelines:
• The approximately US$7 billion Keystone Gulf Coast expansion project was announced, that is
expected to provide additional capacity in 2012 of 500,000 barrels per day (bbl/d) from western Canada to the U.S. Gulf Coast, near existing terminals in Port Arthur, Texas. Keystone is a 50/50 partnership between TransCanada and ConocoPhillips. Construction of the facilities is
anticipated to commence in 2010 following the receipt of the necessary regulatory approvals.
When completed, the expansion will increase the commercial design of the Keystone pipeline
system from 590,000 bbl/d to approximately 1.1 million bbl/d. Keystone has secured long-term commitments for approximately 830,000 bbl/d for an average term of 18 years.
Construction began on the initial phase of the Keystone pipeline including facilities in Canada
and the U.S., which will transport 590,000 bbl/d of crude oil from Hardisty, Alberta to U.S.
Midwest markets. Deliveries to Wood River and Patoka, Illinois are expected to commence in
late 2009, with deliveries to Cushing, Oklahoma anticipated in late 2010. The initial phase is
expected to cost approximately US$5.2 billion.
• The Alaska House of Representatives voted in favour of granting TransCanada a license to build the Alaska pipeline. A positive Alaska Senate vote is a necessary condition for the issuance of the license. A vote by the Senate is anticipated by August 2, 2008. This major natural gas pipeline project would connect stranded U.S. natural gas reserves to Alaskan and Lower 48 consumers.
• TransCanada filed an application with the National Energy Board (NEB) to establish federal
jurisdiction over the Alberta System. The NEB announced it would hold an oral hearing
commencing in November 2008 with a decision expected in first quarter 2009. Federal
regulation would enable the Alberta System to extend across provincial borders, providing
integrated service to Alberta and British Columbia customers, and Northern gas producers.
• TransCanada concluded a non-binding open season to gauge interest for new natural gas
transportation service connecting the Horn River and Montney/Groundbirch areas in British
Columbia to TransCanada’s Alberta System. TransCanada has received requests for gas
transmission service exceeding 1 bcf/d for each area by 2012. It is anticipated TransCanada will
complete a binding open season in the next several months.
• TransCanada continued to pursue opportunities to move an increasing supply of natural gas
from the U.S. Rocky Mountains to growing markets using existing assets through proposals like
Sunstone, Pathfinder, and Northern Border’s proposed Bison project.
Second Quarter Highlights
(All financial figures are unaudited and in Canadian dollars unless noted otherwise)
• Net income for second quarter 2008 of $324 million ($0.58 per share) compared to $257 million
($0.48 per share) for the same period in 2007, an increase of approximately 21 per cent on a per share basis
• Comparable earnings for second quarter 2008 of $316 million ($0.57 per share) compared to
$241 million ($0.45 per share) for the same period in 2007, an increase of approximately 27 per
cent on a per share basis
• Funds generated from operations for second quarter 2008 of $676 million compared to $596
million for the same period in 2007, an increase of approximately 13 per cent
• Dividend of $0.36 per common share declared by the Board of Directors
• Proceeded with plans for a 500,000 barrel per day expansion and extension of the Keystone
crude oil pipeline system from western Canada to the U.S. Gulf Coast
• Construction began on the initial phase of Keystone that will serve markets in the U.S. Midwest
• Portlands Energy Centre went into service in simple-cycle mode on time and on budget
Pipelines:
• The approximately US$7 billion Keystone Gulf Coast expansion project was announced, that is
expected to provide additional capacity in 2012 of 500,000 barrels per day (bbl/d) from western Canada to the U.S. Gulf Coast, near existing terminals in Port Arthur, Texas. Keystone is a 50/50 partnership between TransCanada and ConocoPhillips. Construction of the facilities is
anticipated to commence in 2010 following the receipt of the necessary regulatory approvals.
When completed, the expansion will increase the commercial design of the Keystone pipeline
system from 590,000 bbl/d to approximately 1.1 million bbl/d. Keystone has secured long-term commitments for approximately 830,000 bbl/d for an average term of 18 years.
Construction began on the initial phase of the Keystone pipeline including facilities in Canada
and the U.S., which will transport 590,000 bbl/d of crude oil from Hardisty, Alberta to U.S.
Midwest markets. Deliveries to Wood River and Patoka, Illinois are expected to commence in
late 2009, with deliveries to Cushing, Oklahoma anticipated in late 2010. The initial phase is
expected to cost approximately US$5.2 billion.
• The Alaska House of Representatives voted in favour of granting TransCanada a license to build the Alaska pipeline. A positive Alaska Senate vote is a necessary condition for the issuance of the license. A vote by the Senate is anticipated by August 2, 2008. This major natural gas pipeline project would connect stranded U.S. natural gas reserves to Alaskan and Lower 48 consumers.
• TransCanada filed an application with the National Energy Board (NEB) to establish federal
jurisdiction over the Alberta System. The NEB announced it would hold an oral hearing
commencing in November 2008 with a decision expected in first quarter 2009. Federal
regulation would enable the Alberta System to extend across provincial borders, providing
integrated service to Alberta and British Columbia customers, and Northern gas producers.
• TransCanada concluded a non-binding open season to gauge interest for new natural gas
transportation service connecting the Horn River and Montney/Groundbirch areas in British
Columbia to TransCanada’s Alberta System. TransCanada has received requests for gas
transmission service exceeding 1 bcf/d for each area by 2012. It is anticipated TransCanada will
complete a binding open season in the next several months.
• TransCanada continued to pursue opportunities to move an increasing supply of natural gas
from the U.S. Rocky Mountains to growing markets using existing assets through proposals like
Sunstone, Pathfinder, and Northern Border’s proposed Bison project.
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