All financial figures are in Canadian dollars, unless noted otherwise.
Calgary, Alberta–(Newsfile Corp. – August 28, 2026) – Trans Mountain Corporation (“Trans Mountain” or TMC” or “the Company”) announced today its financial and operating results for the second quarter of 2026.
“Trans Mountain was built to connect Canadian crude oil to global markets and generate long-term value for Canadians. The second quarter demonstrated that we’re doing exactly that,” said Mark Maki, Chief Executive Officer, Trans Mountain. “We delivered record throughput of 840,000 barrels per day during the quarter, representing 94% utilization, while maintaining our focus on safe and reliable operations. Strong performance enabled us to return $450 million to Canada during the quarter and $898 million in the first half of 2026, bringing total returns through interest payments and dividends to more than $2.6 billion since the expanded system entered service in May 2024.”
Second quarter results reflect continued strong demand for transportation service on the Trans Mountain System (“System”), with higher throughput and utilization contributing to increased revenues and Adjusted EBITDA. Demand for capacity remains strong as Trans Mountain advances commercial and operational initiatives designed to support future growth of the System.
“During the quarter, we also made significant progress on initiatives that will support the next phase of growth for the System,” said Maki. “The negotiated Settlement Agreement filed with the Canada Energy Regulator provides a clear path toward greater commercial certainty, while our optimization program positions us to add meaningful incremental capacity over the coming years. In addition, the proposed West Coast Oil Pipeline represents a significant opportunity to expand Canada’s energy infrastructure and support future export growth. Together, these initiatives strengthen the competitiveness of Canadian energy, support export growth and deliver long-term economic benefits for Canadians.”
Financial Highlights:
- Adjusted EBITDA: Second quarter Adjusted EBITDA was $606 million, compared to $558 million in the same period of the prior year. Revenue increased year over year due to higher throughput and tolls driven by the continued demand for capacity on the system. Year-to-date Adjusted EBITDA was $1,158 million compared to $1,126 million for the same period of the prior year.
- Net Income: Second quarter net income was $138 million compared to $150 million in the same period of the prior year and year-to-date net income was $235 million compared to $298 million for the same period in the prior year. The decrease in net income was mainly due to higher depreciation and amortization expense of $281 million versus $219 million of the prior year quarter as well as increased development costs of $20 million, partially offset by increased revenues.
- Capital Return: During the second quarter, an aggregate of $450 million was paid to Canada TMP Finance Ltd. (“TMP Finance”), the entity which holds the Government of Canada’s investment in TMC, consisting of $150 million in interest payments and $300 million in cash dividends. Year-to-date $898 million has been paid in dividends and interest payments, in comparison to $624 million year over year. When combined with the $1.7 billion paid in 2025, Trans Mountain has returned more than $2.6 billion in cash to TMP Finance since the completion of the expanded system in May 2024.
Operational Highlights:
- Throughput: During the second quarter, throughput averaged 840,000 barrels per day (bpd), including 510,000 bpd delivered to Westridge Marine Terminal, 96,000 bpd to BC delivery points and 234,000 bpd delivered to Washington State on the Puget Sound Pipeline. The average daily throughput for the prior year quarter was 703,000 bpd. Year-to-date throughput was 789,000 bpd compared to 730,000 bpd in the same period of the prior year. Utilization for the quarter was 94% bringing year-to-date utilization to 89%. The increase in throughput primarily reflects strong market demand, in part due to disruptions to global energy markets and the corresponding demand for Canadian crude oil.
- Vessel Traffic: For the second quarter, 82 vessels were loaded at Westridge Marine Terminal, an increase of 16 vessels over the prior quarter of 2026. Year-to-date 148 vessels were loaded. Since the commercial commencement of the expanded system on May 1, 2024, TMC has loaded 610 vessels at the Westridge Marine Terminal with 65% headed to Asia.
Financial and Operating Highlights:
| Financial Highlights | Three months ended June 30 |
Six months ended June 30 |
||||||||||
| (millions of Canadian dollars, except throughput amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Revenues | 808 | 719 | 1,537 | 1,448 | ||||||||
| Adjusted EBITDA(a) | 606 | 558 | 1,158 | 1,126 | ||||||||
| Net income | 138 | 150 | 235 | 298 | ||||||||
| Adjusted funds from operations(a) | 437 | 394 | 823 | 794 | ||||||||
| Dividends declared | 300 | 163 | 550 | 356 | ||||||||
| Mainline deliveries (bpd) | 840,000 | 703,000 | 789,000 | 730,000 | ||||||||
| Utilization | 94% | 79% | 89% | 82% | ||||||||
| (a) Adjusted EBITDA and adjusted funds from operations are non-GAAP financial measures. See “Non-GAAP Measures.” | ||||||||||||
Looking Forward
During and subsequent to the quarter, Trans Mountain advanced several significant commercial, regulatory and strategic milestones, including the following:
Settlement Agreement: Trans Mountain filed a negotiated Settlement Agreement with the Canada Energy Regulator (“CER”) regarding tolling, tariff and service-related matters on the -System. Following approximately 18 months of engagement and negotiations with shippers representing the substantial majority of contracted volumes on the System, the proposed Settlement Agreement would establish a long-term framework for tolls, tariffs and service and support implementation of firm capacity awarded through the 2026 Firm Contracting Open Season. Trans Mountain has requested CER approval by October 1, 2026 to support implementation of the new framework, which would facilitate the implementation of transportation service on the System on the terms and conditions contemplated in the Settlement. If approved, the Settlement Agreement would provide long-term commercial certainty and predictability for shippers and market participants.
Optimization Opportunities: TMC is advancing short- and long-term optimization initiatives aimed at increasing pipeline capacity by up to 300,000 bpd, from approximately 890,000 bpd to 1,190,000 bpd, subject to final investment decisions and regulatory approvals. Projects include the Drag Reducing Agent (“DRA”) Project, which is expected to increase throughput by approximately 90,000 bpd, and the Mainline Optimization Project (“MOP”), which is expected to add approximately 210,000 bpd by the end of 2028.
Open Season: Trans Mountain launched a binding open season (the Expansion Capacity Open Season), running from July 13 to August 10, 2026, for firm transportation service associated with the incremental capacity expected to be created through the MOP. Having received the first regulatory permit required to advance the program, the Company anticipates increasing nominal system capacity by approximately 90,000 bpd by the end of 2026.
Proposed West Coast Oil Pipeline: The Governments of Alberta and Canada announced plans to advance a proposed new oil pipeline connecting Bruderheim, Alberta, to the west coast of British Columbia through a partnership structure involving Trans Mountain Corporation, the Alberta Petroleum Marketing Commission and Pembina Pipeline Corporation. As part of the process, the Government of Alberta submitted a request for the project to be listed as a Project of National Interest by October 1, 2026. Trans Mountain has been identified to lead project development, construction and operations, subject to the negotiation of definitive agreements and applicable approvals.
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) | ||||||||||||||||||||||||
| Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |||||||||||||||||
| Revenues | 808 | 729 | 791 | 765 | 719 | 729 | 695 | 666 | ||||||||||||||||
| Adjusted EBITDA | 606 | 552 | 593 | 591 | 558 | 568 | 515 | 512 | ||||||||||||||||
| Net income (loss) | 138 | 97 | 131 | 127 | 150 | 148 | (37 | ) | (68 | ) | ||||||||||||||
| Adjusted funds from operations | 437 | 386 | 407 | 418 | 394 | 400 | 138 | 92 | ||||||||||||||||
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: the Settlement, including the expected effective date, the anticipated benefits of the Settlement to Trans Mountain, CER regulatory approval of the Settlement and potential timing of such approval; the proposed West Coast Oil Pipeline, including the ownership and governance structure thereof; the listing of the proposed West Coast Oil Pipeline as a Project of National Interest and expected timing for such listing; short and long-term optimization initiatives, including the expected increase in pipeline capacity resulting from such initiatives and timing for completion of DRA and MOP; operational enhancements on system capabilities; availability of additional contracted capacity under the Expansion Capacity Open Season and expectations regarding contracted capacity following completion of the Expansion Capacity Open Season; and regulatory approvals in connection with optimization initiatives, including the Expansion Capacity Open Season. 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; the failure to realize the anticipated benefits of the Settlement and optimization initiatives; 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.
Non-GAAP measures
Throughout this news release we make use of certain financial measures that are not specified, defined or determined in accordance with U.S. GAAP and which are not disclosed in TMC’s financial statements, as we believe such financial measures improve management’s ability to evaluate our operating performance and compare results between periods. These are known as non-GAAP financial measures and either exclude an amount that is included in, or include an amount that is excluded from, the composition of the most directly comparable financial measure specified, defined and determined in accordance with U.S. GAAP. Non-GAAP financial measures may not be similar to measures provided by other entities. The non-GAAP financial measures discussed above should not be considered in isolation or as an alternative to or more meaningful than revenues, net income, operating income, cash provided by operating activities or other U.S. GAAP measures.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization and equity AFUDC) is a non-GAAP financial 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.
Adjusted funds from operations is a non-GAAP financial measure we use for our financial capital allocation decisions and is calculated from its most directly comparable U.S. GAAP financial measure, cash provided by operating activities, but removes the impact of changes in non-cash working capital, sustaining capital expenditures and internal-use software expenditures.
A quantitative reconciliation of Adjusted EBITDA and adjusted funds from operations to the most directly comparable financial measure that is specified, defined and determined in accordance with U.S. GAAP is contained in the “Non-GAAP measures” section of TMC’s Management Report for the three and six month periods ended June 30, 2026 (the “Management Report”), which information is incorporated by reference in this news release. The Management Report is available on Trans Mountain’s website at www.transmountain.com.
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
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