All financial figures are in Canadian dollars, unless noted otherwise.
Calgary, Alberta–(Newsfile Corp. – May 29, 2026) – Trans Mountain Corporation (“Trans Mountain” or TMC” or “the Company”) today announced its financial and operating results for the first quarter of 2026.
“Trans Mountain continues to play an important role in moving Canadian crude oil to global markets,” said Mark Maki, Chief Executive Officer of Trans Mountain. “In the first quarter, we delivered an average throughput of 737,000 barrels per day (bpd), or 83% of capacity. Utilization ramped up in the second quarter, running above 90% early in the quarter and expected to reach full capacity in June. We’re delivering on our 2026 plan with payments comprised of interest and dividends to our owner rising to $448 million in the first quarter versus $311 million in the same period last year. We’re on track to meet – or exceed – our financial and operational commitments for the year.”
First quarter results reflect several temporary market factors that affected year-over-year comparisons. The decrease in total throughput year over year reflects lower customer demand, driven by higher global oil tanker freight rates that reduced tanker loadings at Westridge, as well as customers’ maintenance activities and third-party disruptions in the period. These were short term in duration and demand for capacity on the system remains strong for the remainder of the year.
“In response to calls to increase capacity to the West Coast, we have an Open Season to increase firm transportation service underway, alongside optimization initiatives designed to increase capacity by 300,000 bpd. The first 90,000 bpd is anticipated to be in service early in 2027. We expect to hold open seasons for these initiatives later in 2026 and early 2027,” Maki added. “Our focus remains on disciplined execution and the safe, reliable operation of the system to meet customer needs and deliver sustained value for Canada.”
Financial Highlights:
- Adjusted EBITDA: First quarter Adjusted EBITDA was $552 million, compared to $568 million in the same period of the prior year. Revenue remained consistent year over year as lower throughput was offset by higher tolls, reflecting continued demand for capacity on the system. The decrease in Adjusted EBITDA was primarily driven by higher development costs related to short- and long-term initiatives to increase pipeline capacity.
- Net Income: First quarter net income was $97 million compared to $148 million in the same period of the prior year mainly due to higher depreciation and amortization expense of $62 million as well as increased development costs.
- Capital Return: During the first quarter an aggregate of $448 million was paid to Canada TMP Finance Ltd. (“TMP Finance”), the entity which holds the Government of Canada’s investment in TMC, consisting of $148 million in interest payments and $300 million in cash dividends. When combined with the $1.7 billion paid in 2025, Trans Mountain has returned $2.2 billion in cash to our owner since the completion of the expanded system in May 2024.
Operational Highlights:
- Throughput: During the first quarter, throughput averaged 737,000 bpd, including 419,000 bpd delivered to Westridge Marine Terminal, 73,000 bpd to BC delivery points and 245,000 bpd delivered to Washington State on the Puget Sound Pipeline. The average daily throughput for the prior year quarter was 757,000 bpd. Utilization for the quarter was 83%. The decrease in total throughput year over year reflects lower customer demand, driven by higher global oil tanker freight rates that reduced deliveries to Westridge, as well as customers’ maintenance activities in the period. TMC anticipates strong throughput for the remainder of the year.
- Vessel Traffic: For the first quarter, 66 vessels were loaded at Westridge Marine Terminal, a decrease of 16 vessels over the prior quarter of 2025. Since the commercial commencement of the expanded system on May 1, 2024, TMC has loaded 528 vessels at the Westridge Marine Terminal with 64% headed to Asia.
Financial and Operating Highlights:
| Three months ended March 31 | |||||||
| (millions of Canadian dollars, except throughput amounts) | 2026 | 2025 | |||||
| Revenues | 729 | 729 | |||||
| Adjusted EBITDA | 552 | 568 | |||||
| Net income | 97 | 148 | |||||
| Adjusted funds from operations | 386 | 400 | |||||
| Dividends declared | 250 | 193 | |||||
| Mainline deliveries (bpd) | 737,000 | 757,000 | |||||
| Utilization | 83% | 85% | |||||
Looking Forward
Open Season: During the quarter, TMC launched a binding Open Season to obtain incremental contracts for firm transportation service on its Pipeline system. The Open Season runs from April 7 through to June 2, 2026, providing shippers with an opportunity to secure firm service on existing capacity between Edmonton, Alberta and delivery locations in British Columbia.
Through this Open Season, Trans Mountain will make additional contracted capacity available, and expects to increase committed contracts from current levels of approximately 80% to 90% of the 890,000 bpd Trans Mountain Pipeline System. Following the close of the Open Season, Trans Mountain intends to file an application with the Canada Energy Regulator (“CER”) for the required approvals.
Toll Hearing: On November 30, 2023, the CER approved preliminary interim tolls for the expanded system, which remain in effect today. In October 2025, Trans Mountain requested, and the CER approved, an abeyance to suspend the current regulatory process to allow for discussions with its firm shippers to resolve concerns raised by the shippers regarding the interim tolls. Commercial discussions on a potential settlement agreement are ongoing.
Optimization Opportunities: TMC is advancing both short and long-term optimization projects aimed at increasing pipeline capacity by up to 300,000 bpd, increasing total system capacity from approximately 890,000 bpd to 1,190,000 bpd. Future projects include the Drag Reducing Agent (DRA) Project which is expected to increase throughput by approximately 90,000 bpd and be in service in early 2027, and the Mainline Optimization Project (“MOP”) which is expected to add approximately 210,000 bpd and be completed by the end of 2028. These operational enhancements to improve system capabilities are subject to final investment decisions and regulatory approval.
Summary of Quarterly Results:
The following is a summary of selected financial information of TMC for the last eight completed quarters:
| (millions of Canadian dollars, except throughput amounts) |
Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | ||||||||
| Revenues | 729 | 791 | 765 | 719 | 729 | 695 | 666 | 396 | ||||||||
| Adjusted EBITDA | 552 | 593 | 591 | 558 | 568 | 515 | 512 | 283 | ||||||||
| Net income (loss) | 97 | 131 | 127 | 150 | 148 | (37) | (68) | (48) | ||||||||
| Adjusted funds from operations | 386 | 407 | 418 | 394 | 400 | 138 | 92 | (63) | ||||||||
| Total payments to TMP Finance(1) | 448 | 663 | 314 | 314 | 416 | – | – | – | ||||||||
| Mainline deliveries (bpd) | 737,000 | 807,000 | 777,000 | 703,000 | 757,000 | 721,000 | 692,000 | 471,000 | ||||||||
| Utilization | 83% | 91% | 87% | 79% | 85% | 81% | 78% | 68%(2) |
(1) Includes dividends, interest payments and guarantee fees paid.
(2) Final line fill on the expanded line was completed in early May 2024, which impacted system utilization in the period.
Total payments to TMP Finance include contractual commitments for interest as well as discretionary payments.
See the full financial statements and management report documents for further information. The Company’s financial results are also included in Canada Development Investment Corporation’s (“CDEV”) consolidated quarterly financial statements. See Canada Development Investment Corporation’s Quarterly Report.
Forward-looking information
This news release contains certain statements that constitute forward-looking information within the meaning of applicable Canadian securities laws (“forward-looking information”). Forward-looking information is not historical fact, but instead represents the current expectations of TMC regarding future operating results and other future events relating to TMC, many of which, by their nature, are inherently uncertain and outside of the control of TMC. In some cases, forward-looking information can be identified by words or phrases such as “will”, “may”, “expect”, “anticipate”, “believe”, “intend”, “plan”, “seek”, “aim”, “potential”, “should”, “would” and similar words or expressions.
In particular, this news release contains forward-looking information including, but is not limited to: expectations regarding utilization, including the anticipated timing to reach full capacity; short and long-term optimization projects, including the expected increase in pipeline capacity resulting from such projects and timing for completion of DRA and MOP; operational enhancements on system capabilities; expectations regarding financial and operational commitments for the remainder of the year; demand for capacity for the remainder of the year; timing for open seasons in 2026 and 2027; availability of additional contracted capacity under the Open Season and expectations regarding contracted capacity following completion of the Open Season; regulatory approvals in connection with the Open Season, including the filing of an application with the CER; and anticipated strong throughput for the remainder of the year. Actual results could differ materially from those anticipated in the forward-looking information.
The forward-looking information in this news release is based on certain factors and assumptions that TMC has made in respect thereof as at the date of this news release regarding, among other things: market conditions; economic conditions; prevailing governmental policies; regulatory, tax and environmental laws and regulations; inflation rates and commodity prices, including future demand for energy; future demand for space on TMC’s pipeline system; regulatory processes; commercial negotiations; that all required regulatory and environmental approvals can be obtained on acceptable terms and in a timely manner; that any required commercial agreements can be reached in the manner and on the terms expected by TMC; that there are no unforeseen events preventing the performance of contracts or the completion of relevant projects, and that there are no unforeseen material costs relating to such projects; interest, tax and foreign exchange rates; future operating costs; and expected cash flows and availability of funds.
Although TMC believes the assumptions and other factors reflected in the forward-looking information are reasonable as of the date hereof, there can be no assurance that these assumptions and factors will prove to be correct and, as such, forward-looking information is not a guarantee of future performance. Forward-looking information is subject to a number of known and unknown risks and uncertainties that could cause actual events or results to differ materially, including, but not limited to: the regulatory environment and decisions, including the outcome of regulatory hearings and Indigenous and landowner consultation requirements; the available supply and price of energy commodities; fluctuations in operating results; TMC’s ability to successfully implement its strategic priorities; the operating performance of TMC’s pipelines and related assets; whether discussions with shippers will result in a negotiated settlement; performance and credit risk of TMC’s counterparties; labour and material shortages; the geopolitical environment; actions taken by governmental or regulatory authorities; changes in laws; the occurrence of unexpected events such as fires and severe weather conditions; cyber-attacks and other accidents or similar events and adverse general economic and market conditions or other risk factors, many of which are beyond the control of TMC.
The foregoing list of assumptions and risk factors should not be construed as exhaustive. The forward-looking information contained in this news release speaks only as of the date hereof. TMC does not undertake any obligation to publicly update or revise any forward-looking information contained herein, except as required by applicable laws. All forward-looking information contained in this news release is expressly qualified by this cautionary statement.
GAAP and Non-GAAP measures
We make use of certain financial measures that do not have a standardized meaning under U.S. GAAP because we believe they improve management’s ability to evaluate our operating performance and compare results between periods. These are known as non-GAAP measures and may not be similar to measures provided by other entities. The non-GAAP measures discussed above should not be considered as an alternative to or more meaningful than revenues, net income, operating income or other U.S. GAAP measures. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization and equity AFUDC) is a non-GAAP measure we use to evaluate our operating performance and is calculated from its most directly comparable U.S. GAAP measure, operating income but excludes the impact of financing decisions, non-cash depreciation and amortization, and non-cash equity AFUDC.
AFUDC (Allowance for Funds Used During Construction) is an amount recognized under U.S. GAAP by rate-regulated entities to reflect a return on the equity and debt components of capital invested in construction work in progress.
About Trans Mountain
Trans Mountain Corporation (together with its wholly-owned subsidiaries, “Trans Mountain”) operates Canada’s only pipeline system transporting oil products to the West Coast of Canada. Trans Mountain is a wholly owned entity of Canada TMP Finance Ltd., a subsidiary of Canada Development Investment Corporation (CDEV), the entity which holds the Government of Canada’s investment in TMC. Trans Mountain has nominal capacity to deliver 890,000 barrels of petroleum products each day through a pipeline system of more than 1,180 kilometres of pipeline in Alberta, British Columbia and 111 kilometres of pipeline in Washington State. Trans Mountain also operates a state-of-the-art loading facility, Westridge Marine Terminal, with three berths providing tidewater access to global markets. As a Federal Crown Corporation, Trans Mountain continues to build on more than 70 years of experience delivering operational and safety excellence through its pipeline system.
Contact information:
Media Relations
Toll-free 1 855 908 9734
media@transmountain.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/299432