SEDAR Interim Financial Statements

Condensed consolidated statement of income three months ended September 30 nine months ended September 30 (unaudited - millions of Canadian $, except per share amounts) 2025 2024 2025 2024 Revenues Canadian Natural Gas Pipelines 1,478 1,395 4,304 4,196 U.S. Natural Gas Pipelines 1,637 1,503 5,199 4,643 Mexico Natural Gas Pipelines 426 218 1,012 649 Power and Energy Solutions 161 242 544 706 Corporate 2 — 12 — 3,704 3,358 11,071 10,194 Income (Loss) from Equity Investments 345 444 980 1,108 Operating and Other Expenses Plant operating costs and other 1,151 1,109 3,343 3,212 Commodity purchases resold 54 47 153 135 Property taxes 215 207 657 613 Depreciation and amortization 701 628 2,050 1,896 2,121 1,991 6,203 5,856 Net Gain (Loss) on Sale of Assets — 572 — 620 Financial Charges Interest expense 847 777 2,534 2,340 Allowance for funds used during construction (55) (210) (417) (551) Foreign exchange (gains) losses, net (30) 38 (142) 78 Interest income and other (47) (61) (147) (204) 715 544 1,828 1,663 Income (Loss) from Continuing Operations before Income Taxes 1,213 1,839 4,020 4,403 Income Tax Expense (Recovery) from Continuing Operations Current 118 207 224 319 Deferred 127 100 651 380 245 307 875 699 Net Income (Loss) from Continuing Operations 968 1,532 3,145 3,704 Net Income (Loss) from Discontinued Operations, Net of Tax (204) 119 (233) 493 Net Income (Loss) 764 1,651 2,912 4,197 Net income (loss) attributable to non-controlling interests 127 168 408 498 Net Income (Loss) Attributable to Controlling Interests 637 1,483 2,504 3,699 Preferred share dividends 28 26 84 76 Net Income (Loss) Attributable to Common Shares 609 1,457 2,420 3,623 Amounts Attributable to Common Shares Net income (loss) from continuing operations 968 1,532 3,145 3,704 Net income (loss) attributable to non-controlling interests 127 168 408 498 Net income (loss) attributable to controlling interests from continuing operations 841 1,364 2,737 3,206 Preferred share dividends 28 26 84 76 Net income (loss) attributable to common shares from continuing operations 813 1,338 2,653 3,130 Net income (loss) from discontinued operations, net of tax (204) 119 (233) 493 Net Income (Loss) Attributable to Common Shares 609 1,457 2,420 3,623 Net Income (Loss) per Common Share - Basic and Diluted Continuing operations $0.78 $1.29 $2.55 $3.02 Discontinued operations ($0.20) $0.11 ($0.22) $0.47 $0.58 $1.40 $2.33 $3.49 Weighted Average Number of Common Shares (millions) Basic 1,040 1,038 1,040 1,038 Diluted 1,040 1,038 1,040 1,038 See accompanying Notes to the Condensed consolidated financial statements. TC Energy Third Quarter 2025 | 49 Condensed consolidated statement of comprehensive income three months ended September 30 nine months ended September 30 (unaudited - millions of Canadian $) 2025 2024 2025 2024 Net Income (Loss) 764 1,651 2,912 4,197 Other Comprehensive Income (Loss), Net of Income Taxes Foreign currency translation gains and losses on net investment in foreign operations 431 (240) (659) 457 Reclassification of foreign currency translation (gains) losses on net investment on disposal of foreign operations — (25) — (25) Change in fair value of net investment hedges — 1 1 (11) Change in fair value of cash flow hedges 24 5 (16) 33 Reclassification to net income of (gains) losses on cash flow hedges (21) (6) 17 (8) Reclassification to net income of actuarial (gains) losses on pension and other post-retirement benefit plans — — 1 — Other comprehensive income (loss) on --- equity investments (10) (8) (26) 56 424 (273) (682) 502 Comprehensive Income (Loss) 1,188 1,378 2,230 4,699 Comprehensive income (loss) attributable to non-controlling interests 362 43 56 739 Comprehensive Income (Loss) Attributable to Controlling Interests 826 1,335 2,174 3,960 Preferred share dividends 28 26 84 76 Comprehensive Income (Loss) Attributable to Common Shares 798 1,309 2,090 3,884 See accompanying Notes to the Condensed consolidated financial statements. 50 | TC Energy Third Quarter 2025 Condensed consolidated statement of cash flows three months ended September 30 nine months ended September 30 (unaudited - millions of Canadian $) 2025 2024 2025 2024 Cash Generated from Operations Net income (loss) 764 1,651 2,912 4,197 Depreciation and amortization 701 713 2,050 2,149 Goodwill and asset impairment charges and other — 21 — 21 Deferred income taxes 135 165 659 397 (Income) loss from equity investments (345) (461) (980) (1,158) Distributions received from operating activities of equity investments 339 362 1,091 1,343 Employee post-retirement benefits funding, net of expense 1 3 3 11 Net (gain) loss on sale of assets — (572) — (620) Equity allowance for funds used during construction (46) (139) (291) (359) Unrealized (gains) losses on financial instruments 131 (78) (133) 46 Expected credit loss provision (14) 4 88 (19) Foreign exchange (gains) losses, net – intercompany loan (76) 29 94 (53) Other 200 14 210 (30) (Increase) decrease in operating working capital 130 203 (251) (313) Net cash provided by operations 1,920 1,915 5,452 5,612 Investing Activities Capital expenditures (1,255) (1,756) (3,924) (4,668) Capital projects in development (2) (8) (12) (41) Contributions to equity investments (249) (345) (758) (888) Other distributions from equity investments — 509 5 539 Proceeds from sale of assets, net of transaction costs — 743 — 791 Deferred amounts and other (87) 2 (126) (126) Net cash (used in) provided by investing activities (1,593) (855) (4,815) (4,393) Financing Activities Notes payable issued (repaid), net (59) (1,137) 2,037 421 Long-term debt issued, net of issue costs 831 7,428 3,252 8,089 Long-term debt repaid (805) — (4,029) (1,662) Junior subordinated notes issued, net of issue costs 989 1,465 2,043 1,465 Dividends on common shares (885) (996) (2,623) (2,957) Dividends on preferred shares (29) (26) (85) (73) Common shares issued, net of issue costs 37 21 87 21 Disposition of equity interest, net of transaction costs — (7) — 419 Contributions from non-controlling interests — 11 — 16 Distributions to non-controlling interests and other (111) (303) (414) (669) Cash received from factoring arrangement (Note 13) 101 — 101 — Net cash (used in) provided by financing activities 69 6,456 369 5,070 Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents (16) (36) (5) 21 Increase (Decrease) in Cash and Cash Equivalents, Including Cash Balances Classified as Assets Held for Sale 380 7,480 1,001 6,310 Cash balances classified as assets held for sale — 34 — — Increase (Decrease) in Cash and Cash Equivalents 380 7,514 1,001 6,310 Cash and Cash Equivalents - Beginning of period 1,422 2,474 801 3,678 Cash and Cash Equivalents - End of period 1,802 9,988 1,802 9,988 Includes continuing and discontinued operations. Refer to Note 3, Discontinued operations, for additional information. See accompanying Notes to the Condensed consolidated financial statements. TC Energy Third Quarter 2025 | 51 Condensed consolidated b --- alance sheet (unaudited - millions of Canadian $) September 30, 2025 December 31, 2024 ASSETS Current Assets Cash and cash equivalents 1,802 801 Accounts receivable 2,474 2,611 Inventories 837 747 Other current assets 2,382 1,339 Current assets of discontinued operations 283 235 7,778 5,733 Plant, Property and Equipment net of accumulated depreciation of $36,551 and $35,397, respectively 71,233 77,501 Net Investment in Leases 8,235 2,477 Equity Investments 11,149 10,636 Restricted Investments 3,469 2,998 Regulatory Assets 2,906 2,682 Goodwill 13,222 13,670 Other Long-Term Assets 2,239 2,410 Long-Term Assets of Discontinued Operations 3 136 120,234 118,243 LIABILITIES Current Liabilities Notes payable 2,390 387 Accounts payable and other 4,887 5,297 Dividends payable 901 874 Accrued interest 831 828 Current portion of long-term debt 2,870 2,955 Current liabilities of discontinued operations 420 170 12,299 10,511 Regulatory Liabilities 5,767 5,303 Other Long-Term Liabilities 950 1,051 Deferred Income Tax Liabilities 7,540 6,884 Long-Term Debt 44,364 44,976 Junior Subordinated Notes 11,738 11,048 Long-Term Liabilities of Discontinued Operations — 110 82,658 79,883 EQUITY Common shares, no par value 30,199 30,101 Issued and outstanding: September 30, 2025 – 1,041 million shares December 31, 2024 – 1,039 million shares Preferred shares 2,499 2,499 Accumulated deficit (6,026) (5,241) Accumulated other comprehensive income (loss) 793 233 Controlling Interests 27,465 27,592 Non-Controlling Interests 10,111 10,768 37,576 38,360 120,234 118,243 Commitments, Contingencies and Guarantees (Note 14) Variable Interest Entities (Note 15) See accompanying Notes to the Condensed consolidated financial statements. 52 | TC Energy Third Quarter 2025 Condensed consolidated statement of equity three months ended September 30 nine months ended September 30 (unaudited - millions of Canadian $) 2025 2024 2025 2024 Common Shares Balance at beginning of period 30,158 30,002 30,101 30,002 Shares issued: Exercise of stock options 41 23 98 23 Balance at end of period 30,199 30,025 30,199 30,025 Preferred Shares Balance at beginning and end of period 2,499 2,499 2,499 2,499 Additional Paid-In Capital Balance at beginning of period — — — — Exercise and forfeitures of stock options (3) — (7) 4 Disposition of equity interests, net of transaction costs (5) — (5) (22) Reclassification of additional paid-in capital deficit to accumulated deficit 8 — 12 18 Balance at end of period — — — — Accumulated Deficit Balance at beginning of period (5,741) (2,839) (5,241) (2,997) Net income (loss) attributable to controlling interests 637 1,483 2,504 3,699 Common share dividends (885) (996) (2,653) (2,988) Preferred share dividends (29) (26) (82) (74) Spinoff of Liquids Pipelines business — — (542) — Reclassification of additional paid-in capital deficit to accumulated deficit (8) — (12) (18) Balance at end of period (6,026) (2,378) (6,026) (2,378) Accumulated Other Comprehensive Income (Loss) Balance at beginning of period 604 458 233 49 Other comprehensive income (loss) attributable to controlling interests 189 (148) (330) 282 Impact of non-controlling interest — — 348 (21) Spinoff of Liquids Pipelines business — — 542 — Balance at end of period 793 310 793 310 Equity Attributable to Controlling Interests 27,465 30,456 27,465 30,456 Equity Attributable to Non-Controlling Interests Balance at beginning of period 9,860 10,374 10,768 9,455 Net income (loss) attributable to non-controll --- ing interests 127 168 408 498 Other comprehensive income (loss) attributable to non-controlling interests 235 (125) (352) 241 Disposition of equity interests — (104) (348) 478 Contributions from non-controlling interests — 11 — 16 Distributions declared to non-controlling interests (111) (303) (365) (667) Balance at end of period 10,111 10,021 10,111 10,021 Total Equity 37,576 40,477 37,576 40,477 See accompanying Notes to the Condensed consolidated financial statements. TC Energy Third Quarter 2025 | 53 Notes to Condensed consolidated financial statements (unaudited) 1. BASIS OF PRESENTATION These Condensed consolidated financial statements of TC Energy Corporation (TC Energy or the Company) have been prepared by management in accordance with U.S. GAAP. The accounting policies applied are consistent with those outlined in TC Energy’s annual audited Consolidated financial statements for the year ended December 31, 2024, except as described in Note 2, Accounting changes. Capitalized and abbreviated terms that are used but not otherwise defined herein are identified in TC Energy’s 2024 Annual Report. These Condensed consolidated financial statements reflect adjustments, all of which are normal recurring adjustments that are, in the opinion of management, necessary to reflect fairly the financial position and results of operations for the respective periods. These Condensed consolidated financial statements do not include all disclosures required in the annual financial statements and should be read in conjunction with the 2024 audited Consolidated financial statements included in TC Energy’s 2024 Annual Report. Certain comparative figures have been adjusted to reflect the current period's presentation. On October 1, 2024, TC Energy completed the spinoff of its Liquids Pipelines business into the new public company, South Bow Corporation (South Bow) (the Spinoff Transaction). The historical results of the Liquids Pipelines business are presented as discontinued operations and have been excluded from continuing operations and segment disclosures for all periods presented. The Notes to the Condensed consolidated financial statements reflect continuing operations only, unless otherwise indicated. Prior to the spinoff, the operations of the Liquids Pipelines business were materially reported as the Company's Liquids Pipelines segment. Refer to Note 3, Discontinued operations for additional information. Earnings for interim periods may not be indicative of results for the fiscal year in certain of the Company’s segments primarily due to: • Natural gas pipelines segments – the timing of regulatory decisions and negotiated rate case settlements as well as seasonal fluctuations in short-term throughput volumes on U.S. pipelines and marketing activities • Power and Energy Solutions – the impacts of seasonal weather conditions on customer demand, market supply and prices of natural gas and power as well as maintenance outages in certain of the Company’s investments in electrical power generation plants and Canadian non-regulated natural gas storage facilities and marketing activities. In addition to the factors mentioned above, revenues and segmented earnings are impacted by fluctuations in foreign exchange rates, mainly related to the Company's U.S. dollar-denominated operations and Mexican peso-denominated exposure. Out-of-Period Adjustments During second quarter 2025, the Company recorded out-of-period adjustments to reclassify a pro rata portion --- of its net investment hedge losses recorded in Accumulated other comprehensive income (loss) (AOCI). The adjustments included (i) a reclassification of net investment hedge losses of $348 million from AOCI to Non-controlling interests (NCI) related to the sale of 40 per cent of Columbia Gas and Columbia Gulf on October 4, 2023, which was presented as Impact of non-controlling interest and Disposition of equity interests, respectively, in the Condensed consolidated statement of equity; and (ii) a reclassification of net investment hedge losses of $542 million related to the spinoff of the Company's Liquids Pipelines business that occurred on October 1, 2024 from AOCI to Accumulated deficit. The Company determined that the impact of these out-of-period adjustments was not material, individually or in the aggregate, to any previously reported quarterly or annual financial statements and was not material to the Company's Condensed consolidated financial statements. 54 | TC Energy Third Quarter 2025 Use of Estimates and Judgments In preparing these Condensed consolidated financial statements, TC Energy is required to make estimates and assumptions that affect both the amount and timing of recording assets, liabilities, revenues and expenses since the determination of these items may be dependent on future events. The Company uses the most current information available and exercises careful judgment in making these estimates and assumptions. In the opinion of management, these Condensed consolidated financial statements have been properly prepared within reasonable limits of materiality and within the framework of the Company’s significant accounting policies included in the annual audited Consolidated financial statements for the year ended December 31, 2024, except as described in Note 2, Accounting changes. During second quarter 2025, the Company completed the Southeast Gateway pipeline and recognized a net investment in sales-type lease asset. As part of this process, the Company was required to estimate the fair value of the asset. The fair value measurement involved significant judgments. Refer to Note 13, TGNH strategic alliance, for additional information. TC Energy Third Quarter 2025 | 55 2. ACCOUNTING CHANGES Changes in Accounting Policies for 2025 Income Taxes In December 2023, the FASB issued new guidance to enhance the transparency and usefulness of income tax disclosures through improvements to the rate reconciliation and income taxes paid information. The new guidance requires entities to disclose specific categories in the rate reconciliation and sets specific disaggregation requirements for reconciling items that meet certain thresholds. Additionally, entities are required to disclose disaggregated information on income taxes paid, income from continuing operations before tax and income tax expense from continuing operations. This new guidance is effective for the annual period beginning January 1, 2025. The guidance is applied prospectively with retrospective application permitted. The Company will reflect the new standard in income tax disclosures in the annual audited Consolidated financial statements for the year ended December 31, 2025 on a retrospective basis. Future Accounting Changes Disaggregation of Income Statement Expenses In November 2024, the FASB issued new guidance requiring additional disclosure on the nature of expenses included in the income statement. The new standard requires disclosures about specific t --- ypes of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The new guidance is effective for annual periods beginning January 1, 2027 and interim periods beginning January 1, 2028. Early adoption is permitted. The guidance is applied prospectively with retrospective application permitted. The Company is currently assessing the impact of the standard on the Company's financial statements. Internal-Use Software In September 2025, the FASB issued updated guidance for accounting for internal-use software costs. The updated guidance removes references to project development stages and outlines revised guidance for when capitalization begins for internal-use software costs. The guidance is effective for annual and interim periods beginning January 1, 2028. Early adoption is permitted as of the beginning of an annual reporting period. The guidance can be applied prospectively, retrospectively, or with a modified transition approach. The Company is currently assessing the impact of the standard on the Company's financial statements. 56 | TC Energy Third Quarter 2025 3. DISCONTINUED OPERATIONS Spinoff of Liquids Pipelines Business Presentation of Discontinued Operations Upon completion of the Spinoff Transaction on October 1, 2024, the Liquids Pipelines business was accounted for as a discontinued operation. The Company's presentation of discontinued operations includes revenues and expenses directly attributable to the Liquids Pipelines business. Income from Discontinued Operations three months ended September 30 nine months ended September 30 (unaudited - millions of Canadian $) 2025 2024 2025 2024 Revenues — 725 — 2,217 Income (Loss) from Equity Investments — 17 — 50 Operating and Other Expenses Plant operating costs and other 210 237 210 697 Commodity purchases resold — 135 — 387 Property taxes — 28 — 84 Depreciation and amortization — 85 — 253 Asset impairment charge — 21 29 21 210 506 239 1,442 Segmented Earnings (Losses) from Discontinued Operations (210) 236 (239) 825 Financial Charges Interest expense — 101 — 218 Interest income and other (14) (28) (14) (31) (14) 73 (14) 187 Income (Loss) from Discontinued Operations before Income Taxes (196) 163 (225) 638 Income tax expense (recovery) 8 44 8 145 Net Income (Loss) from Discontinued Operations, Net of Tax (204) 119 (233) 493 Assets and Liabilities of Discontinued Operations (unaudited - millions of Canadian $) September 30, 2025 December 31, 2024 ASSETS Current Assets Other current assets 283 235 283 235 Other Long-Term Assets 3 136 286 371 LIABILITIES Current Liabilities Accounts payable and other 420 170 420 170 Other Long-Term Liabilities — 110 420 280 TC Energy Third Quarter 2025 | 57 Cash Flows from Discontinued Operations three months ended September 30 nine months ended September 30 (unaudited - millions of Canadian $) 2025 2024 2025 2024 Net cash provided by (used in) operations 12 534 (41) 724 Net cash provided by (used in) investing activities — (81) 24 (89) Separation Agreement As part of the October 1, 2024 Spinoff Transaction, TC Energy and South Bow executed a series of agreements, including the Separation Agreement, which specified the separation of assets and liabilities between TC Energy and South Bow, and indemnified South Bow for 86 per cent of certain net liabilities and costs subject to a maximum liability to South Bow of $30 million in aggregate for the indemnified matters. In Septem --- ber 2025, TC Energy reached an agreement with South Bow with respect to liabilities TC Energy indemnified South Bow for under the Separation Agreement, releasing the Company from those liabilities. Inclusive of the recognition of the settlement, the net loss from discontinued operations, net of tax was $204 million for the three months ended September 30, 2025. In June 2025, TC Energy received $24 million related to certain recoveries under the Separation Agreement with South Bow. At this time, the Company also revised its estimated share of future recoveries, resulting in a $29 million impairment charge, which has been included in Net income (loss) from discontinued operations, net of tax in the Condensed consolidated statement of income. 58 | TC Energy Third Quarter 2025 4. SEGMENTED INFORMATION three months ended September 30, 2025 Canadian Natural Gas Pipelines U.S. Natural Gas Pipelines Mexico Natural Gas Pipelines Power and Energy Solutions (unaudited - millions of Canadian $) Corporate1 Total Revenues 1,478 1,637 426 161 2 3,704 Intersegment revenues2 — 23 — — (23) — 1,478 1,660 426 161 (21) 3,704 Income (loss) from equity investments 29 66 29 221 — 345 Operating costs2 (594) (656) (25) (163) 18 (1,420) Depreciation and amortization (380) (269) (23) (29) — (701) Segmented Earnings (Losses) 533 801 407 190 (3) 1,928 Interest expense (847) Allowance for funds used during construction 55 Foreign exchange gains (losses), net 30 Interest income and other 47 Income (Loss) from Continuing Operations before Income Taxes 1,213 Income tax (expense) recovery from continuing operations (245) Net Income (Loss) from Continuing Operations 968 Net Income (Loss) from Discontinued Operations, Net of Tax (204) Net Income (Loss) 764 Net (income) loss attributable to non-controlling interests (127) Net Income (Loss) Attributable to Controlling Interests 637 Preferred share dividends (28) Net Income (Loss) Attributable to Common Shares 609 Capital Spending3 Capital expenditures 304 854 81 10 6 1,255 Capital projects in development — — — 2 — 2 Contributions to equity investments — 36 — 213 — 249 304 890 81 225 6 1,506 1 Includes intersegment eliminations. 2 The Company records intersegment sales at contracted rates. For segmented reporting, these transactions are included as Intersegment revenues in the segment providing the service and Operating costs in the segment receiving the service. These transactions are eliminated on consolidation. Intersegment profit is recognized when the product or service has been provided to third parties or otherwise realized. 3 Included in Investing activities in the Condensed consolidated statement of cash flows. TC Energy Third Quarter 2025 | 59 three months ended September 30, 2024 Canadian Natural Gas Pipelines U.S. Natural Gas Pipelines Mexico Natural Gas Pipelines Power and Energy Solutions (unaudited - millions of Canadian $) Corporate1 Total Revenues 1,395 1,503 218 242 — 3,358 Intersegment revenues2 — 24 — — (24) — 1,395 1,527 218 242 (24) 3,358 Income (loss) from equity investments 7 68 79 290 — 444 Operating costs2 (557) (606) (37) (156) (7) 3 (1,363) Depreciation and amortization (350) (231) (23) (22) (2) 3 (628) Other segmented items — 572 — — — 572 Segmented Earnings (Losses) 495 1,330 237 354 (33) 2,383 Interest expense (777) Allowance for funds used during construction 210 Foreign exchange gains (losses), net (38) Interest income and other 61 Income (Loss) from Continuing Operations before Income Taxes 1 --- ,839 Income tax (expense) recovery from continuing operations (307) Net Income (Loss) from Continuing Operations 1,532 Net Income (Loss) from Discontinued Operations, Net of Tax 119 Net Income (Loss) 1,651 Net (income) loss attributable to non-controlling interests (168) Net Income (Loss) Attributable to Controlling Interests 1,483 Preferred share dividends (26) Net Income (Loss) Attributable to Common Shares 1,457 Capital Spending4 Capital expenditures 294 757 580 7 35 1,673 Capital projects in development — (1) — 9 — 8 Contributions to equity investments 173 — — 172 — 345 467 756 580 188 35 2,026 Discontinued operations 83 2,109 1 Includes intersegment eliminations. 2 The Company records intersegment sales at contracted rates. For segmented reporting, these transactions are included as Intersegment revenues in the segment providing the service and Operating costs in the segment receiving the service. These transactions are eliminated on consolidation. Intersegment profit is recognized when the product or service has been provided to third parties or otherwise realized. 3 Includes shared costs and depreciation previously allocated to the Liquids Pipelines segment. 4 Included in Investing activities in the Condensed consolidated statement of cash flows. 60 | TC Energy Third Quarter 2025 nine months ended September 30, 2025 Canadian Natural Gas Pipelines U.S. Natural Gas Pipelines Mexico Natural Gas Pipelines Power and Energy Solutions (unaudited - millions of Canadian $) Corporate1 Total Revenues 4,304 5,199 1,012 544 12 11,071 Intersegment revenues2 — 74 — 50 (124) — 4,304 5,273 1,012 594 (112) 11,071 Income (loss) from equity investments 97 217 60 606 — 980 Operating costs2 (1,675) (1,906) (191) (478) 97 (4,153) Depreciation and amortization (1,126) (767) (72) (85) — (2,050) Segmented Earnings (Losses) 1,600 2,817 809 637 (15) 5,848 Interest expense (2,534) Allowance for funds used during construction 417 Foreign exchange gains (losses), net 142 Interest income and other 147 Income (Loss) from Continuing Operations before Income Taxes 4,020 Income tax (expense) recovery from continuing operations (875) Net Income (Loss) from Continuing Operations 3,145 Net Income (Loss) from Discontinued Operations, Net of Tax (233) Net Income (Loss) 2,912 Net (income) loss attributable to non-controlling interests (408) Net Income (Loss) Attributable to Controlling Interests 2,504 Preferred share dividends (84) Net Income (Loss) Attributable to Common Shares 2,420 Capital Spending3 Capital expenditures 1,052 2,308 501 46 17 3,924 Capital projects in development — — — 12 — 12 Contributions to equity investments — 141 — 617 — 758 1,052 2,449 501 675 17 4,694 1 Includes intersegment eliminations. 2 The Company records intersegment sales at contracted rates. For segmented reporting, these transactions are included as Intersegment revenues in the segment providing the service and Operating costs in the segment receiving the service. These transactions are eliminated on consolidation. Intersegment profit is recognized when the product or service has been provided to third parties or otherwise realized. 3 Included in Investing activities in the Condensed consolidated statement of cash flows. TC Energy Third Quarter 2025 | 61 nine months ended September 30, 2024 Canadian Natural Gas Pipelines U.S. Natural Gas Pipelines Mexico Natural Gas Pipelines Power and Energy Solutions (unaudited - millions of Canadian $) Corporate1 Total Revenues 4,196 4,643 649 706 — --- 10,194 Intersegment revenues2 — 74 — 49 (123) — 4,196 4,717 649 755 (123) 10,194 Income (loss) from equity investments 18 260 209 621 — 1,108 Operating costs2 (1,677) (1,742) (74) (475) 8 3 (3,960) Depreciation and amortization (1,037) (710) (69) (75) (5) 3 (1,896) Other segmented items 10 610 — — — 620 Segmented Earnings (Losses) 1,510 3,135 715 826 (120) 6,066 Interest expense (2,340) Allowance for funds used during construction 551 Foreign exchange gains (losses), net (78) Interest income and other 204 Income (Loss) from Continuing Operations before Income Taxes 4,403 Income tax (expense) recovery from continuing operations (699) Net Income (Loss) from Continuing Operations 3,704 Net Income (Loss) from Discontinued Operations, Net of Tax 493 Net Income (Loss) 4,197 Net (income) loss attributable to non-controlling interests (498) Net Income (Loss) Attributable to Controlling Interests 3,699 Preferred share dividends (76) Net Income (Loss) Attributable to Common Shares 3,623 Capital Spending4 Capital expenditures 874 1,794 1,800 35 38 4,541 Capital projects in development — — — 41 — 41 Contributions to equity investments 350 — — 538 — 888 1,224 1,794 1,800 614 38 5,470 Discontinued operations 127 5,597 1 Includes intersegment eliminations. 2 The Company records intersegment sales at contracted rates. For segmented reporting, these transactions are included as Intersegment revenues in the segment providing the service and Operating costs in the segment receiving the service. These transactions are eliminated on consolidation. Intersegment profit is recognized when the product or service has been provided to third parties or otherwise realized. 3 Includes shared costs and depreciation previously allocated to the Liquids Pipelines segment. 4 Included in Investing activities in the Condensed consolidated statement of cash flows. 62 | TC Energy Third Quarter 2025 Total Assets by Segment (unaudited - millions of Canadian $) September 30, 2025 December 31, 2024 Canadian Natural Gas Pipelines 31,533 31,167 U.S. Natural Gas Pipelines 56,541 56,304 Mexico Natural Gas Pipelines 16,323 15,995 Power and Energy Solutions 10,657 10,217 Corporate 4,894 4,189 119,948 117,872 Discontinued Operations 286 371 120,234 118,243 TC Energy Third Quarter 2025 | 63 5. REVENUES Disaggregation of Revenues The following tables summarize total Revenues for the three and nine months ended September 30, 2025 and 2024: three months ended September 30, 2025 Canadian Natural Gas Pipelines U.S. Natural Gas Pipelines Mexico Natural Gas Pipelines Power and Energy Solutions Total (unaudited - millions of Canadian $) Revenues from contracts with customers Capacity arrangements and transportation 1,478 1,337 110 — 2,925 Power generation — — — 50 50 Natural gas storage and other1 — 261 39 104 404 1,478 1,598 149 154 3,379 Sales-type lease income — — 277 — 277 Other revenues2 — 39 — 7 46 1,478 1,637 426 161 3,702 Corporate revenues3 2 3,704 1 The Mexico Natural Gas Pipelines segment includes $34 million of revenues generated from non-lease components for the provision of operating and maintenance services with respect to sales-type leases on the in-service TGNH pipelines. 2 Includes income from the Company's marketing activities, financial instruments and $29 million of operating lease income. Refer to Note 12, Risk management and financial instruments, for additional information. 3 Revenues generated from the Transition Services Agreement with South Bow. three months ended Sep --- tember 30, 2024 Canadian Natural Gas Pipelines U.S. Natural Gas Pipelines Mexico Natural Gas Pipelines Power and Energy Solutions Total (unaudited - millions of Canadian $) Revenues from contracts with customers Capacity arrangements and transportation 1,391 1,264 110 — 2,765 Power generation — — — 49 49 Natural gas storage and other1,2 4 211 31 108 354 1,395 1,475 141 157 3,168 Sales-type lease income — — 77 — 77 Other revenues3 — 28 — 85 113 1,395 1,503 218 242 3,358 1 The Canadian Natural Gas Pipelines segment includes $4 million of fee revenues from an affiliate related to development and construction of the Coastal GasLink pipeline project, which is 35 per cent owned by TC Energy. 2 The Mexico Natural Gas Pipelines segment includes $24 million of revenues generated from non-lease components for the provision of operating and maintenance services with respect to sales-type leases on the in-service TGNH pipelines. 3 Includes income from the Company's marketing activities, financial instruments and $29 million of operating lease income. Refer to Note 12, Risk management and financial instruments, for additional information. 64 | TC Energy Third Quarter 2025 nine months ended September 30, 2025 Canadian Natural Gas Pipelines U.S. Natural Gas Pipelines Mexico Natural Gas Pipelines Power and Energy Solutions Total (unaudited - millions of Canadian $) Revenues from contracts with customers Capacity arrangements and transportation 4,304 4,129 333 — 8,766 Power generation — — — 170 170 Natural gas storage and other1 — 854 143 304 1,301 4,304 4,983 476 474 10,237 Sales-type lease income — — 536 — 536 Other revenues2 — 216 — 70 286 4,304 5,199 1,012 544 11,059 Corporate revenues3 12 11,071 1 The Mexico Natural Gas Pipelines segment includes $125 million of revenues generated from non-lease components for the provision of operating and maintenance services with respect to sales-type leases on the in-service TGNH pipelines. 2 Includes income from the Company's marketing activities, financial instruments and $88 million of operating lease income. Refer to Note 12, Risk management and financial instruments, for additional information. 3 Revenues generated from the Transition Services Agreement with South Bow. nine months ended September 30, 2024 Canadian Natural Gas Pipelines U.S. Natural Gas Pipelines Mexico Natural Gas Pipelines Power and Energy Solutions Total (unaudited - millions of Canadian $) Revenues from contracts with customers Capacity arrangements and transportation 4,182 3,939 327 — 8,448 Power generation — — — 203 203 Natural gas storage and other1,2 14 637 92 296 1,039 4,196 4,576 419 499 9,690 Sales-type lease income — — 230 — 230 Other revenues3 — 67 — 207 274 4,196 4,643 649 706 10,194 1 The Canadian Natural Gas Pipelines segment includes $14 million of fee revenues from an affiliate related to development and construction of the Coastal GasLink pipeline project, which is 35 per cent owned by TC Energy. 2 The Mexico Natural Gas Pipelines segment includes $73 million of revenues generated from non-lease components for the provision of operating and maintenance services with respect to sales-type leases on the in-service TGNH pipelines. 3 Includes income from the Company's marketing activities, financial instruments and $88 million of operating lease income. Refer to Note 12, Risk management and financial instruments, for additional information. TC Energy Third Quarter 2025 | 65 Contract Balances (unaudited - millions of Canadian --- $) September 30, 2025 December 31, 2024 Affected line item on the Condensed consolidated balance sheet Receivables from contracts with customers 1,561 1,452 Accounts receivable Contract assets 256 165 Other current assets Long-term contract assets 642 608 Other long-term assets Contract liabilities1 28 30 Accounts payable and other Long-term contract liabilities 1 — Other long-term liabilities 1 During the nine months ended September 30, 2025, $21 million (2024 – $42 million) of revenues were recognized that were included in contract liabilities at the beginning of the period. Contract assets and long-term contract assets primarily relate to the Company’s right to revenues for services completed but not invoiced at the reporting date on long-term committed capacity natural gas pipelines contracts. The change in contract assets is primarily related to the transfer to Accounts receivable when these rights become unconditional and the customer is invoiced, as well as the recognition of additional revenues that remain to be invoiced. Contract liabilities and long-term contract liabilities primarily represent unearned revenue for contracted services. Future Revenues from Remaining Performance Obligations At September 30, 2025, future revenues from long-term pipeline capacity arrangements and transportation as well as natural gas storage and other contracts extending through 2055 are approximately $30.6 billion, of which approximately $3.5 billion is expected to be recognized during the remainder of 2025. 6. INCOME TAXES Effective Tax Rates The effective income tax rates were 22 per cent and 16 per cent for the nine months ended September 30, 2025 and 2024, respectively. The increase in the effective income tax rate is primarily due to the impact of Mexico foreign exchange exposure and higher flow-through income taxes, partially offset by changes in geographic and business mix of earnings. 66 | TC Energy Third Quarter 2025 7. LONG-TERM DEBT Long-Term Debt Issued Long-term debt issued by the Company in the nine months ended September 30, 2025 included the following: (unaudited - millions of Canadian $, unless otherwise noted) Company Issue date Type Maturity date Amount Interest rate TransCanada PipeLines Limited February 2025 Medium Term Notes February 2035 1,000 4.58% ANR Pipeline Company September 2025 Senior Unsecured Notes September 2031 US 250 5.23% September 2025 Senior Unsecured Notes September 2035 US 350 5.69% Columbia Pipelines Operating Company LLC March 2025 Senior Unsecured Notes February 2035 US 550 5.44% March 2025 Senior Unsecured Notes February 2055 US 450 5.96% On October 10, 2025, Great Lakes Gas Transmission Limited Partnership issued a US$205 million unsecured term loan maturing in October 2028, bearing interest at a floating rate. Long-Term Debt Repaid/Retired Long-term debt repaid/retired by the Company in the nine months ended September 30, 2025 included the following: (unaudited - millions of Canadian $, unless otherwise noted) Company Repayment date Type Amount Interest rate TransCanada PipeLines Limited July 2025 Medium Term Notes 750 3.30% ANR Pipeline Company June 2025 Senior Unsecured Notes US 7 7.00% Nova Gas Transmission Ltd. May 2025 Medium Term Notes 87 8.90% Columbia Pipelines Operating Company LLC March 2025 Senior Unsecured Notes1 US 1,000 4.50% TC PipeLines, LP March 2025 Senior Unsecured Notes US 350 4.38% TC Energía Mexicana, S. de R.L. de C.V. Various Senior Unsecured Term Loan US 122 Floating 1 The no --- tes were fully repaid and retired in March 2025. Unamortized fair value adjustment of $3 million related to the acquisition of Columbia Pipeline Group Inc. was included in Interest expense in the Condensed consolidated statement of income. On October 14, 2025, TCPL retired US$92 million of senior unsecured notes bearing interest at a fixed rate of 7.06 per cent. Capitalized Interest In the three and nine months ended September 30, 2025, TC Energy capitalized interest related to capital projects of $2 million and $7 million, respectively (2024 – $66 million and $200 million, respectively). TC Energy Third Quarter 2025 | 67 8. JUNIOR SUBORDINATED NOTES Junior Subordinated Notes Issued Junior subordinated notes issued by the Company in the nine months ended September 30, 2025 included the following: (unaudited - millions of Canadian $, unless otherwise noted) Company Issue date Type Maturity date Amount Interest rate TransCanada PipeLines Limited August 2025 Junior Subordinated Notes February 2056 1,000 5.20% February 2025 Junior Subordinated Notes June 2065 US 750 7.00% In August 2025, TCPL issued $1.0 billion of junior subordinated notes maturing in 2056 with a fixed interest rate of 5.20 per cent per year until February 15, 2031. The rate on the junior subordinated notes will reset every five years commencing February 2031 until February 2056 to the then Five-Year Government of Canada Yield, as defined in the document governing the subordinated notes, plus 2.148 per cent per annum, subject to a rate-reset minimum. The junior subordinated notes are callable at TCPL's option at any time from November 15, 2030 to February 15, 2031 and on each interest payment and reset date thereafter at 100 per cent of the principal amount plus accrued and unpaid interest to the date of redemption. In February 2025, TCPL issued US$750 million of junior subordinated notes maturing in 2065 with a fixed interest rate of 7.00 per cent per year until June 1, 2030. The rate on the junior subordinated notes will reset every five years commencing June 2030 until June 2065 to the then Five-Year Treasury Rate, as defined in the document governing the subordinated notes, plus 2.614 per cent per annum. The junior subordinated notes are callable at TCPL's option at any time from March 1, 2030 to June 1, 2030 and on each interest payment and reset date thereafter at 100 per cent of the principal amount plus accrued and unpaid interest to the date of redemption. Subsequent Junior Subordinated Notes Issued In October 2025, TCPL issued US$370 million of junior subordinated notes, including the exercise of the over-allotment option, maturing in 2085 with a fixed interest rate of 6.25 per cent. The junior subordinated notes are callable at TCPL's option at any time on or after November 1, 2030 at 100 per cent of the principal amount plus accrued and unpaid interest to the date of redemption. Pursuant to the terms of each of the junior subordinated notes issued in 2025, TCPL has the option to defer payment of interest for one or more periods of up to ten years without giving rise to an event of default and without permitting acceleration of payment. TC Energy and TCPL would be prohibited from declaring or paying dividends during any deferral period. The junior subordinated notes are subordinated in right of payment to existing and future senior indebtedness and other obligations of TCPL. Junior Subordinated Notes Repaid/Retired In May 2025, TCPL exercised its option to fully --- repay and retire the US$750 million junior subordinated notes that had a maturity date of 2075, bearing interest at 5.88 per cent to TransCanada Trust (the Trust). The related unamortized debt issue costs of $11 million were included in Interest expense in the Condensed consolidated statement of income. All of the proceeds from the repayment were used by the Trust to fund the redemption price of the US$750 million in aggregate principal amount of outstanding Trust Notes - Series 2015-A, in May 2025 pursuant to their terms. 68 | TC Energy Third Quarter 2025 9. COMMON SHARES AND PREFERRED SHARES The Board of Directors of TC Energy declared quarterly dividends as follows: three months ended September 30 nine months ended September 30 (unaudited - Canadian $, rounded to two decimals) 2025 2024 2025 2024 per common share 0.85 1 0.96 2.55 1 2.88 per Series 1 preferred share 0.31 0.22 0.93 0.65 per Series 2 preferred share 0.28 0.42 0.91 1.28 per Series 3 preferred share 0.26 0.11 0.47 0.32 per Series 4 preferred share 0.24 0.38 0.79 1.16 per Series 5 preferred share 0.12 0.12 0.37 0.37 per Series 6 preferred share 0.27 0.39 0.82 1.20 per Series 7 preferred share 0.37 0.37 1.12 0.99 per Series 9 preferred share 0.32 0.24 0.95 0.71 per Series 10 preferred share 0.32 — 0.97 — per series 11 preferred share 0.21 0.21 0.42 0.42 1 The amount represents TC Energy's dividend declared following the Spinoff Transaction. On June 30, 2025, 104,778 Series 3 preferred shares were converted, on a one-for-one basis, into Series 4 preferred shares and 1,822,829 Series 4 preferred shares were converted, on a one-for-one basis, into Series 3 preferred shares. 10. OTHER COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Components of other comprehensive income (loss), including the portion attributable to non-controlling interests and related tax effects, were as follows: three months ended September 30, 2025 Before tax amount Income tax (expense) recovery Net of tax amount (unaudited - millions of Canadian $) Foreign currency translation gains and losses on net investment in foreign operations 420 11 431 Change in fair value of cash flow hedges 28 (4) 24 Reclassification to net income of (gains) losses on cash flow hedges (24) 3 (21) Other comprehensive income (loss) on equity investments (13) 3 (10) Other Comprehensive Income (Loss) 411 13 424 TC Energy Third Quarter 2025 | 69 three months ended September 30, 2024 Before tax amount Income tax (expense) recovery Net of tax amount (unaudited - millions of Canadian $) Foreign currency translation gains and losses on net investment in foreign operations (237) (3) (240) Reclassification of foreign currency translation (gains) losses on net investment on disposal of foreign operations (25) — (25) Change in fair value of net investment hedges 1 — 1 Change in fair value of cash flow hedges 7 (2) 5 Reclassification to net income of (gains) losses on cash flow hedges (8) 2 (6) Other comprehensive income (loss) on equity investments (10) 2 (8) Other Comprehensive Income (Loss) (272) (1) (273) nine months ended September 30, 2025 Before tax amount Income tax (expense) recovery Net of tax amount (unaudited - millions of Canadian $) Foreign currency translation gains and losses on net investment in foreign operations (657) (2) (659) Change in fair value of net investment hedges 1 — 1 Change in fair value of cash flow hedges (24) 8 (16) Reclassification to net income of (gains) losses on cash flow --- hedges 25 (8) 17 Reclassification to net income of actuarial (gains) losses on pension and other post-retirement benefit plans 1 — 1 Other comprehensive income (loss) on equity investments (33) 7 (26) Other Comprehensive Income (Loss) (687) 5 (682) nine months ended September 30, 2024 Before tax amount Income tax (expense) recovery Net of tax amount (unaudited - millions of Canadian $) Foreign currency translation gains and losses on net investment in foreign operations 455 2 457 Reclassification of foreign currency translation (gains) losses on net investment on disposal of foreign operations (25) — (25) Change in fair value of net investment hedges (14) 3 (11) Change in fair value of cash flow hedges 43 (10) 33 Reclassification to net income of (gains) losses on cash flow hedges (10) 2 (8) Other comprehensive income (loss) on equity investments 74 (18) 56 Other Comprehensive Income (Loss) 523 (21) 502 70 | TC Energy Third Quarter 2025 The changes in AOCI by component, net of tax, were as follows: three months ended September 30, 2025 Currency translation adjustments Cash flow hedges Pension and other post- retirement benefit plans adjustments Equity investments Total (unaudited - millions of Canadian $) AOCI balance at July 1, 2025 (14) (18) 23 613 604 Other comprehensive income (loss) before reclassifications1 196 24 — (10) 210 Amounts reclassified from AOCI — (21) — — (21) Net current period other comprehensive income (loss) 196 3 — (10) 189 AOCI balance at September 30, 2025 182 (15) 23 603 793 1 Other comprehensive income (loss) before reclassifications on currency translation adjustments is net of non-controlling interest gains of $235 million (2024 – losses of $125 million). nine months ended September 30, 2025 Currency translation adjustments Cash flow hedges Pension and other post- retirement benefit plans adjustments Equity investments Total (unaudited - millions of Canadian $) AOCI balance at January 1, 2025 (402) (16) 22 629 233 Other comprehensive income (loss) before reclassifications1 (306) (16) — (24) (346) Amounts reclassified from AOCI2 — 17 1 (2) 16 Net current period other comprehensive income (loss) (306) 1 1 (26) (330) Impact of non-controlling interest3 348 — — — 348 Spinoff of Liquids Pipelines business4 542 — — — 542 AOCI balance at September 30, 2025 182 (15) 23 603 793 1 Other comprehensive income (loss) before reclassifications on currency translation adjustments is net of non-controlling interest losses of $352 million (2024 – gains of $241 million). 2 Gains related to cash flow hedges reported in AOCI and expected to be reclassified to net income in the next 12 months are estimated to be $5 million ($4 million after tax) at September 30, 2025. These estimates assume constant commodity prices, interest rates and foreign exchange rates over time; however, the amounts reclassified will vary based on the actual value of these factors at the date of settlement. 3 AOCI adjustment attributable to the 40 per cent non-controlling equity interest in Columbia Gas and Columbia Gulf upon its sale on October 4, 2023. Refer to Note 1, Basis of presentation, for additional information. 4 AOCI adjustment attributable to the Spinoff Transaction on October 1, 2024. Refer to Note 1, Basis of presentation, for additional information. TC Energy Third Quarter 2025 | 71 Details about reclassifications out of AOCI into the Condensed consolidated statement of income were as follows: three months ended September 30 nine months ended --- September 30 Affected line item in the Condensed consolidated statement of income1 (unaudited - millions of Canadian $) 2025 2024 2025 2024 Cash flow hedges Commodities 2 11 17 19 Revenues (Power and Energy Solutions) Foreign exchange 25 — (33) — Interest expense and Foreign exchange gains (losses), net Interest rate (3) (3) (9) (9) Interest expense 24 8 (25) 10 Total before tax (3) (2) 8 (2) Income tax (expense) recovery 21 6 (17) 8 Net of tax Pension and other post-retirement benefit plans Amortization of actuarial gains (losses) — — (1) — Plant operating costs and other2 — — — — Income tax (expense) recovery — — (1) — Net of tax Equity investments Equity income (loss) — 5 2 15 Income (loss) from equity investments — (1) — (3) Income tax (expense) recovery — 4 2 12 Net of tax Currency translation adjustments Foreign currency translation gains on disposal of foreign operations — 15 — 15 Net gain (loss) on sale of assets — — — — Income tax (expense) recovery — 15 — 15 Net of tax 1 All amounts in parentheses indicate expenses to the Condensed consolidated statement of income. 2 These AOCI components are included in the computation of net benefit cost (recovery). Refer to Note 11, Employee post-retirement benefits, for additional information. 11. EMPLOYEE POST-RETIREMENT BENEFITS The components of the net benefit cost (recovery) recognized for the Company’s pension benefit plans and other post-retirement benefit plans were as follows: three months ended September 30 nine months ended September 30 Pension benefit plans Other post-retirement benefit plans Pension benefit plans Other post-retirement benefit plans (unaudited - millions of Canadian $) 2025 2024 2025 2024 2025 2024 2025 2024 Service cost1 25 26 — — 75 80 1 1 Other components of net benefit cost (recovery)1 Interest cost 41 39 4 4 122 116 11 11 Expected return on plan assets (62) (59) (4) (4) (187) (180) (12) (11) Amortization of past service costs — — — — — — (1) — Amortization of regulatory asset — — — — — — — (1) (21) (20) — — (65) (64) (2) (1) Net Benefit Cost (Recovery) 4 6 — — 10 16 (1) — 1 Service cost and other components of net benefit cost (recovery) are included in Plant operating costs and other in the Condensed consolidated statement of income. 72 | TC Energy Third Quarter 2025 12. RISK MANAGEMENT AND FINANCIAL INSTRUMENTS Risk Management Overview TC Energy has exposure to market risk and counterparty credit risk and has strategies, policies and limits in place to manage the impact of these risks on its earnings, cash flows and, ultimately, shareholder value. Counterparty Credit Risk TC Energy’s exposure to counterparty credit risk includes its cash and cash equivalents, accounts receivable, available-for-sale assets, the fair value of derivative assets, net investment in leases and certain contract assets in Mexico. Market events causing disruptions in global energy demand and supply may contribute to economic uncertainties impacting a number of TC Energy's customers. While the majority of the Company's credit exposure is to large creditworthy entities, TC Energy maintains close monitoring and communication with those counterparties experiencing greater financial pressures. Refer to TC Energy's 2024 Annual Report for more information about the factors that mitigate the Company's counterparty credit risk exposure. The Company reviews financial assets carried at amortized cost for impairment using the lifetime expected loss of the financial asset at initial recognit --- ion and throughout the life of the financial asset. TC Energy uses historical credit loss and recovery data, adjusted for management's judgment regarding current economic and credit conditions, along with reasonable and supportable forecasts to determine any impairment, which is recognized in Plant operating costs and other. For the three and nine months ended September 30, 2025, the Company recorded a recovery of $14 million and expense of $90 million, respectively (2024 – expense of $3 million and a recovery of $18 million, respectively) on the expected credit loss (ECL) provision before tax with respect to the net investment in leases associated with in-service TGNH pipelines. In second quarter 2025, the Company completed the Southeast Gateway pipeline. Refer to Note 13, TGNH strategic alliance, for additional information. At September 30, 2025, the balance of the ECL provision was $149 million (December 31, 2024 – $59 million) with respect to the net investment in leases associated with in-service TGNH pipelines. The ECL provision is driven primarily by a probability of default measure for the counterparty, which is calculated using information published by an external third party. Other than the ECL provision noted above, the Company had no significant credit losses at September 30, 2025, and there were no significant credit risk concentrations or amounts past due or impaired. TC Energy has significant credit and performance exposure to financial institutions that hold cash deposits and provide committed credit lines and letters of credit that help manage the Company's exposure to counterparties and provide liquidity in commodity, foreign exchange and interest rate derivative markets. TC Energy's portfolio of financial sector exposure consists primarily of highly-rated investment grade, systemically important financial institutions. TC Energy Third Quarter 2025 | 73 Net Investment in Foreign Operations The Company hedges a portion of its net investment in foreign operations (on an after-tax basis) with U.S. dollar-denominated debt and cross-currency interest rate swaps as appropriate. The fair values and notional amounts for the derivatives designated as a net investment hedge were as follows: September 30, 2025 December 31, 2024 (unaudited - millions of Canadian $, unless otherwise noted) Fair value1,2 Notional amount Fair value1,2 Notional amount U.S. dollar cross-currency interest rate swaps3 — — (11) US 100 1 Fair value equals carrying value. 2 No amounts have been excluded from the assessment of hedge effectiveness. 3 Net income (loss) included no realized gains or losses in the three months ended September 30, 2025 (2024 - net realized gains of less than $1 million) and net realized gains of less than $1 million in the nine months ended September 30, 2025 and 2024 related to the interest component of cross-currency swap settlements which are reported within Interest expense in the Condensed consolidated statement of income. The notional amounts and fair values of U.S. dollar-denominated debt designated as a net investment hedge were as follows: (unaudited - millions of Canadian $, unless otherwise noted) September 30, 2025 December 31, 2024 Notional amount 25,300 (US 18,200) 26,000 (US 18,000) Fair value 25,500 (US 18,300) 25,700 (US 17,800) Non-Derivative Financial Instruments Fair value of non-derivative financial instruments Available-for-sale assets are recorded at fair value which is calculated using quoted market prices --- where available in addition to the Company's LMCI equity securities which are classified in Level I of the fair value hierarchy. Certain other non-derivative financial instruments included in Cash and cash equivalents, Accounts receivable, Other current assets, Net investment in leases, Restricted investments, Other long-term assets, Notes payable, Accounts payable and other, Dividends payable, Accrued interest and Other long-term liabilities have carrying amounts that approximate their fair value due to the nature of the item or the short time to maturity. Credit risk has been taken into consideration when calculating the fair value of non-derivative financial instruments. Balance sheet presentation of non-derivative financial instruments The following table details the fair value of non-derivative financial instruments, excluding those where carrying amounts approximate fair value and would be classified in Level II of the fair value hierarchy: September 30, 2025 December 31, 2024 (unaudited - millions of Canadian $) Carrying amount Fair value Carrying amount Fair value Long-term debt, including current portion1,2 (47,234) (48,295) (47,931) (48,318) Junior subordinated notes (11,738) (11,748) (11,048) (10,824) (58,972) (60,043) (58,979) (59,142) 1 Long-term debt is recorded at amortized cost, except for US$3.0 billion (December 31, 2024 – US$2.8 billion) that is attributed to hedged risk and recorded at fair value. 2 Net income (loss) for the three and nine months ended September 30, 2025 included unrealized losses of $10 million and $140 million, respectively (2024 – unrealized losses of $222 million and $95 million, respectively) for fair value adjustments attributable to the hedged interest rate risk associated with interest rate swap fair value hedging relationships. 74 | TC Energy Third Quarter 2025 The following tables summarize additional information about the Company's restricted investments that were classified as available-for-sale assets and equity securities with readily determinable fair values: September 30, 2025 December 31, 2024 (unaudited - millions of Canadian $) LMCI restricted investments Other restricted investments1 LMCI restricted investments Other restricted investments1 Fair values of fixed income securities2,3 Maturing within 1 year — 82 — 33 Maturing within 1-5 years 35 250 3 256 Maturing within 5-10 years 1,796 4 1,578 — Maturing after 10 years — 15 — — Fair value of equity securities2,4 1,258 89 1,070 64 3,089 440 2,651 353 1 Other restricted investments have been set aside to fund insurance claim losses to be paid by the Company's wholly-owned captive subsidiary and, in 2025, funds have also been set aside to pay for certain active employee medical benefits. 2 Available-for-sale assets and equity securities with readily determinable fair values are recorded at fair value and included in Other current assets and Restricted investments on the Company's Condensed consolidated balance sheet. 3 Classified in Level II of the fair value hierarchy. 4 Classified in Level I of the fair value hierarchy. September 30, 2025 September 30, 2024 (unaudited - millions of Canadian $) LMCI restricted investments1 Other restricted investments2 LMCI restricted investments1 Other restricted investments2 Net unrealized gains (losses) in the period three months ended 119 (14) 107 7 nine months ended 192 (6) 217 12 Net realized gains (losses) in the period3 three months ended 13 21 13 1 nine months ended 1 21 (1) 2 1 Unrealized --- and realized gains (losses) arising from changes in the fair value of LMCI restricted investments impact the subsequent amounts to be collected through tolls to cover future pipeline abandonment costs. As a result, the Company records these gains and losses as regulatory liabilities or regulatory assets. 2 Unrealized and realized gains (losses) on other restricted investments are included in Interest income and other in the Condensed consolidated statement of income. 3 Realized gains (losses) on the sale of LMCI restricted investments are determined using the average cost basis. Derivative Instruments Fair value of derivative instruments The fair value of foreign exchange and interest rate derivatives has been calculated using the income approach which uses period-end market rates and applies a discounted cash flow valuation model. The fair value of commodity derivatives has been calculated using quoted market prices where available. In the absence of quoted market prices, third-party broker quotes or other valuation techniques have been used. The fair value of options has been calculated using the Black-Scholes pricing model. Credit risk has been taken into consideration when calculating the fair value of derivative instruments. Unrealized gains and losses on derivative instruments are not necessarily representative of the amounts that will be realized on settlement. In some cases, even though the derivatives are considered to be effective economic hedges, they do not meet the specific criteria for hedge accounting treatment or are not designated as a hedge and are accounted for at fair value with changes in fair value recorded in net income in the period of change. This may expose the Company to increased variability in reported earnings because the fair value of the derivative instruments can fluctuate significantly from period to period. TC Energy Third Quarter 2025 | 75 The recognition of gains and losses on derivatives for Canadian natural gas regulated pipeline exposures is determined through the regulatory process. Gains and losses arising from changes in the fair value of derivatives accounted for as part of rate-regulated accounting, including those that qualify for hedge accounting treatment, are expected to be refunded or recovered through the tolls charged by the Company. As a result, these gains and losses are deferred as regulatory liabilities or regulatory assets and are refunded to or collected from the rate payers in subsequent years when the derivative settles. Balance sheet presentation of derivative instruments The balance sheet classification of the fair value of derivative instruments was as follows: at September 30, 2025 Cash flow hedges Fair value hedges Held for trading Total fair value of derivative instruments1 (unaudited - millions of Canadian $) Other current assets Commodities2 13 — 330 343 Foreign exchange 7 — 38 45 Interest rate — 2 — 2 20 2 368 390 Other long-term assets Commodities2 3 — 80 83 Foreign exchange — — 6 6 Interest rate — 37 — 37 3 37 86 126 Total Derivative Assets 23 39 454 516 Accounts payable and other Commodities2 (2) — (332) (334) Foreign exchange — — (49) (49) Interest rate — (10) — (10) (2) (10) (381) (393) Other long-term liabilities Commodities2 (2) — (58) (60) Foreign exchange (39) — (9) (48) Interest rate — (28) — (28) (41) (28) (67) (136) Total Derivative Liabilities (43) (38) (448) (529) Total Derivatives (20) 1 6 (13) 1 Fair value equals carrying value. 2 Includes purchases and --- sales of power and natural gas. 76 | TC Energy Third Quarter 2025 at December 31, 2024 Cash flow hedges Fair value hedges Net investment hedges Held for trading Total fair value of derivative instruments1 (unaudited - millions of Canadian $) Other current assets Commodities2 18 — — 287 305 Foreign exchange — — — 42 42 18 — — 329 347 Other long-term assets Commodities2 9 — — 104 113 Foreign exchange — — — 9 9 9 — — 113 122 Total Derivative Assets 27 — — 442 469 Accounts payable and other Commodities2 (1) — — (291) (292) Foreign exchange — — (11) (183) (194) Interest rate — (21) — — (21) (1) (21) (11) (474) (507) Other long-term liabilities Commodities2 (1) — — (46) (47) Foreign exchange — — — (44) (44) Interest rate — (118) — — (118) (1) (118) — (90) (209) Total Derivative Liabilities (2) (139) (11) (564) (716) Total Derivatives 25 (139) (11) (122) (247) 1 Fair value equals carrying value. 2 Includes purchases and sales of power and natural gas. The majority of derivative instruments held for trading have been entered into for risk management purposes and all are subject to the Company's risk management strategies, policies and limits. These include derivatives that have not been designated as hedges or do not qualify for hedge accounting treatment but have been entered into as economic hedges to manage the Company's exposures to market risk. Non-derivatives in fair value hedging relationships The following table details amounts recorded on the Condensed consolidated balance sheet in relation to cumulative adjustments for fair value hedges included in the carrying amount of the hedged liabilities: Carrying amount Fair value hedging adjustments1 (unaudited - millions of Canadian $) September 30, 2025 December 31, 2024 September 30, 2025 December 31, 2024 Long-term debt (4,151) (3,935) (41) 98 1 At September 30, 2025 and December 31, 2024, adjustments for discontinued hedging relationships included in these balances were liabilities of $40 million and $41 million, respectively. TC Energy Third Quarter 2025 | 77 Notional and maturity summary The maturity and notional amount or quantity outstanding related to the Company's derivative instruments excluding hedges of the net investment in foreign operations was as follows: at September 30, 2025 Power Natural gas Foreign exchange Interest rate (unaudited) Net sales (purchases)1 10,334 45 — — Millions of U.S. dollars — — 6,537 2,950 Millions of Mexican pesos — — 16,250 — Maturity dates 2025-2044 2025-2032 2025-2030 2030-2034 1 Volumes for power and natural gas derivatives are in GWh and Bcf, respectively. at December 31, 2024 Power Natural gas Foreign exchange Interest rate (unaudited) Net sales (purchases)1 10,192 53 — — Millions of U.S. dollars — — 5,648 2,800 Millions of Mexican pesos — — 16,750 — Maturity dates 2025-2044 2025-2031 2025-2027 2030-2034 1 Volumes for power and natural gas derivatives are in GWh and Bcf, respectively. Unrealized and Realized Gains (Losses) on Derivative Instruments The following summary does not include hedges of the net investment in foreign operations: three months ended September 30 nine months ended September 30 (unaudited - millions of Canadian $) 2025 2024 2025 2024 Derivative Instruments Held for Trading1 Unrealized gains (losses) in the period Commodities2 (63) 21 (36) (36) Foreign exchange (68) 24 169 (78) Realized gains (losses) in the period Commodities 20 40 (18) 111 Foreign exchange 39 (58) 111 (105) Interest rate 1 — 6 — Derivative Instruments in --- Hedging Relationships Realized gains (losses) in the period Commodities 3 6 17 24 Foreign exchange 2 — 6 — Interest rate (8) (14) (24) (41) 1 Realized and unrealized gains (losses) on held-for-trading derivative instruments used to purchase and sell commodities are included on a net basis in Revenues. Realized and unrealized gains (losses) on foreign exchange and interest rate held-for-trading derivative instruments are included on a net basis in Foreign exchange (gains) losses, net and Interest expense, respectively, in the Condensed consolidated statement of income. 2 In the three and nine months ended September 30, 2025, unrealized gains of less than $1 million and $1 million, respectively, were reclassified to Net income (loss) from AOCI related to discontinued cash flow hedges (2024 - unrealized gains of $4 million). 78 | TC Energy Third Quarter 2025 Derivatives in cash flow hedging relationships The components of OCI (Note 10) related to the change in fair value of derivatives in cash flow hedging relationships before tax and including the portion attributable to non-controlling interests were as follows: three months ended September 30 nine months ended September 30 (unaudited - millions of Canadian $, pre tax) 2025 2024 2025 2024 Gains (losses) in fair value of derivative instruments recognized in OCI1 Commodities 3 7 4 43 Foreign exchange 25 — (28) — 28 7 (24) 43 1 No amounts have been excluded from the assessment of hedge effectiveness. Effect of fair value and cash flow hedging relationships The following table details amounts presented in the Condensed consolidated statement of income in which the effects of fair value or cash flow hedging relationships were recorded: three months ended September 30 nine months ended September 30 (unaudited - millions of Canadian $) 2025 2024 2025 2024 Fair Value Hedges Interest rate contracts1 Hedged items (44) (44) (133) (114) Derivatives designated as hedging instruments (8) (14) (24) (41) Cash Flow Hedges Reclassification of gains (losses) on derivative instruments from AOCI to Net income (loss)2,3 Commodities4 2 11 17 19 Foreign exchange5 25 — (33) — Interest rate1 (3) (3) (9) (9) 1 Presented within Interest expense in the Condensed consolidated statement of income. 2 Refer to Note 10, Other comprehensive income (loss) and accumulated other comprehensive income (loss), for the components of OCI related to derivatives in cash flow hedging relationships. 3 There are no amounts recognized in earnings that were excluded from effectiveness testing. 4 Presented within Revenues (Power and Energy Solutions) in the Condensed consolidated statement of income. In the three and nine months ended September 30, 2025, unrealized gains of less than one million and $1 million, respectively, were reclassified to Net income (Loss) from AOCI related to discontinued cash flow hedges (2024 - unrealized gains of $4 million). 5 Presented within Interest expense and Foreign exchange (gains) losses, net in the Condensed consolidated statement of income. TC Energy Third Quarter 2025 | 79 Offsetting of derivative instruments The Company enters into derivative contracts with the right to offset in the normal course of business as well as in the event of default. TC Energy has no master netting agreements; however, similar contracts are entered into containing rights to offset. The Company has elected to present the fair value of derivative instruments with the right to offset on a gross basis on the Condensed conso --- lidated balance sheet. The following tables show the impact on the presentation of the fair value of derivative instrument assets and liabilities had the Company elected to present these contracts on a net basis: at September 30, 2025 Gross derivative instruments Amounts available for offset1 Net amounts (unaudited - millions of Canadian $) Derivative instrument assets Commodities 426 (323) 103 Foreign exchange 51 (48) 3 Interest rate 39 (6) 33 516 (377) 139 Derivative instrument liabilities Commodities (394) 323 (71) Foreign exchange (97) 48 (49) Interest rate (38) 6 (32) (529) 377 (152) 1 Amounts available for offset do not include cash collateral pledged or received. at December 31, 2024 Gross derivative instruments Amounts available for offset1 Net amounts (unaudited - millions of Canadian $) Derivative instrument assets Commodities 418 (290) 128 Foreign exchange 51 (49) 2 469 (339) 130 Derivative instrument liabilities Commodities (339) 290 (49) Foreign exchange (238) 49 (189) Interest rate (139) — (139) (716) 339 (377) 1 Amounts available for offset do not include cash collateral pledged or received. With respect to the derivative instruments presented above, the Company provided cash collateral of $126 million and letters of credit of $89 million at September 30, 2025 (December 31, 2024 – $133 million and $59 million, respectively) to its counterparties. At September 30, 2025, the Company held cash collateral of less than $1 million and $77 million letters of credit (December 31, 2024 – less than $1 million and $75 million, respectively) from counterparties on asset exposures. 80 | TC Energy Third Quarter 2025 Credit-risk-related contingent features of derivative instruments Derivative contracts entered into to manage market risk often contain financial assurance provisions that allow parties to the contracts to manage credit risk. These provisions may require collateral to be provided if a credit-risk-related contingent event occurs, such as a downgrade in the Company’s credit rating to non-investment grade. The Company may also need to provide collateral if the fair value of its derivative financial instruments exceeds pre-defined exposure limits. Based on contracts in place and market prices at September 30, 2025, the aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position was $7 million (December 31, 2024 – $10 million), for which the Company has provided no collateral in the normal course of business. If the credit-risk-related contingent features in these agreements were triggered on September 30, 2025, the Company would have been required to provide collateral equal to the fair value of the related derivative instruments discussed above. Collateral may also need to be provided should the fair value of derivative instruments exceed pre-defined contractual exposure limit thresholds. The Company has sufficient liquidity in the form of cash and undrawn committed revolving credit facilities to meet these contingent obligations should they arise. Fair Value Hierarchy The Company’s financial assets and liabilities recorded at fair value have been categorized into three categories based on a fair value hierarchy. Levels How fair value has been determined Level I Quoted prices in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date. An active market is a market in which frequency and volume --- of transactions provides pricing information on an ongoing basis. Level II This category includes interest rate and foreign exchange derivative assets and liabilities where fair value is determined using the income approach and commodity derivatives where fair value is determined using the market approach. Inputs include published exchange rates, interest rates, interest rate swap curves, yield curves and broker quotes from external data service providers. Level III This category includes long-dated commodity transactions in certain markets where liquidity is low. The Company uses the most observable inputs available or alternatively long-term broker quotes or negotiated commodity prices that have been contracted for under similar terms in determining an appropriate estimate of these transactions. Where appropriate, these long-dated prices are discounted to reflect the expected pricing from the applicable markets. There is uncertainty caused by using unobservable market data which may not accurately reflect possible future changes in fair value. The fair value of the Company’s derivative assets and liabilities measured on a recurring basis, including both current and non-current portions, were categorized as follows: at September 30, 2025 Quoted prices in active markets (Level I) Significant other observable inputs (Level II)1 Significant unobservable inputs (Level III)1 (unaudited - millions of Canadian $) Total Derivative instrument assets Commodities 157 220 49 426 Foreign exchange — 51 — 51 Interest rate — 39 — 39 Derivative instrument liabilities Commodities (139) (229) (26) (394) Foreign exchange — (97) — (97) Interest rate — (38) — (38) 18 (54) 23 (13) 1 There were no transfers from Level II to Level III for the nine months ended September 30, 2025. TC Energy Third Quarter 2025 | 81 at December 31, 2024 Quoted prices in active markets (Level I) Significant other observable inputs (Level II)1 Significant unobservable inputs (Level III)1 (unaudited - millions of Canadian $) Total Derivative instrument assets Commodities 126 214 78 418 Foreign exchange — 51 — 51 Derivative instrument liabilities Commodities (116) (217) (6) (339) Foreign exchange — (238) — (238) Interest rate — (139) — (139) 10 (329) 72 (247) 1 There were no transfers from Level II to Level III for the year ended December 31, 2024. The Company has entered into contracts commencing in 2025 and 2026 to sell 50 MW of power with terms ranging from 15 to 20 years provided from specified renewable sources in the Province of Alberta. The fair value of these contracts is classified in Level III of the fair value hierarchy and is based on the assumption that the contract volumes will be sourced approximately 80 per cent from wind generation, 10 per cent from solar generation and 10 per cent from the market. The following table presents the net change in fair value of derivative assets and liabilities classified as Level III of the fair value hierarchy: three months ended September 30 nine months ended September 30 (unaudited - millions of Canadian $) 2025 2024 2025 2024 Balance at beginning of period 80 3 72 (11) Net gains (losses) included in Net income (loss)1 (52) 8 (36) 25 Transfers to Level II (3) 32 (5) 29 Settlements (3) — (8) — Foreign exchange 1 — — — Balance at end of period 23 43 23 43 1 For the three and nine months ended September 30, 2025, there were unrealized losses of $52 million and $36 million, respectively, recognized in Revenues attributed to derivatives --- in the Level III category that were held at September 30, 2025 (2024 – unrealized gains of $8 million and $25 million, respectively). 82 | TC Energy Third Quarter 2025 13. TGNH STRATEGIC ALLIANCE Mexico Natural Gas Pipelines Transportadora de Gas Natural de la Huasteca (TGNH) In August 2022, the Company announced a strategic alliance with Mexico's state-owned electric utility, the CFE, for the development of new natural gas infrastructure in central and southeast Mexico. In second quarter 2024, in accordance with the terms of the Company's strategic alliance, and in exchange for cash and non-cash consideration of $561 million (US$411 million), the CFE became a partner in TGNH with a 13.01 per cent equity interest. The transaction was accounted for as an equity transaction of which $588 million was recognized in Non-controlling interests and $21 million was recognized as AOCI attributable to the CFE’s non-controlling interest. The difference between these amounts and the consideration received was recorded as a reduction to Additional paid-in capital of $27 million. In September 2025, TC Energy entered into a factoring arrangement with the CFE and a major domestic bank in Mexico. Under the arrangement, TC Energy is factoring monthly invoices for services provided on the TGNH system from August to November 2025. Invoices are factored to the bank without recourse to TC Energy and TC Energy will continue to receive invoiced amounts within the contractual payment period. The factoring arrangement resulted in a lease modification for accounting purposes of the TGNH Transportation Service Agreement (TSA) with the CFE. As such, the Company reallocated contract consideration to the lease and non-lease components of the contract based on the updated operating and maintenance services stand-alone selling price for each non-lease component as of the date of modification. The change in allocation is accounted for prospectively. Under lease accounting, TC Energy has recorded factored amounts in Accounts payable and other on the Condensed consolidated balance sheet. Cash amounts from the factoring arrangement are included in Financing activities in the Condensed consolidated statement of cash flows. During third quarter 2025, TC Energy assigned and received payment for receivables having an aggregate face value of $101 million (US$73 million). Southeast Gateway Pipeline During second quarter 2025, the Company announced the completion of the Southeast Gateway pipeline. The Company determined that the pipeline is a sales-type lease between TGNH and the CFE that commenced when the asset was made available to the customer. The Company allocated the expected contract consideration to the non-lease component for the provisioning of operating and maintenance services based on the estimated stand-alone selling price using an expected cost plus margin approach which was determined at the inception of the agreement in 2022. The residual amount of consideration from this process was then allocated to the lease component. The Company’s estimate of future operating costs at the inception of the contract in 2022 influenced the allocation of contract consideration between lease and non-lease components. This estimate impacted the timing of income recognized under the contract and the calculation of the rate implicit in the lease. Under a sales-type lease, the Company derecognizes the underlying asset and records a net investment in lease equal to the present value --- of both the future lease payments and the estimated unguaranteed residual value of the leased asset. The future lease payments and the unguaranteed residual asset value are discounted at the rate implicit in the lease. This is the rate that causes the present value of lease payments and unguaranteed residual value to equal the fair value of the underlying asset. The difference between the carrying amount of the underlying asset and the lower of the fair value of the underlying asset and the sum of the lease receivable is recorded as selling profit or loss in the Condensed consolidated statement of income. The TGNH pipelines, which includes the Southeast Gateway pipeline, are rate-regulated and the tolls are designed to recover the cost of providing service. On this basis, the Company applied judgment to determine that, at the inception of the lease arrangement, the fair value of the underlying assets approximated the carrying value and the residual value approximated the TC Energy Third Quarter 2025 | 83 remaining carrying value at the end of the lease term. The Company estimated that if the assets were purchased at their carrying value, they would yield a return to the purchaser that is in line with current market participant expectations. The Company recorded a net investment in lease asset of $6.6 billion (US$4.8 billion) with no selling profit or losses recorded upon derecognition of the underlying asset. At June 30, 2025, the Company recorded an expected credit loss provision of $113 million in Plant operating costs and other, relating to the initial net investment in lease balance. 84 | TC Energy Third Quarter 2025 14. COMMITMENTS, CONTINGENCIES AND GUARANTEES Commitments Capital expenditure commitments at September 30, 2025 are consistent with the amounts reported at December 31, 2024, reflecting new contractual commitments entered into for construction on U.S. natural gas pipelines, primarily related to the construction costs associated with ANR and other pipeline projects, offset by completion of Southeast Gateway pipeline and normal course fulfillment of construction contracts. Contingencies TC Energy and its subsidiaries are subject to various legal proceedings, arbitrations and actions arising in the normal course of business. The Company assesses all legal matters on an ongoing basis, including those of its equity investments, to determine if they meet the requirements for disclosure or accrual of a contingent loss. It is the opinion of management that the ultimate resolution of such proceedings and actions will not have a material impact on the Company's consolidated financial position or results of operations. The following contingencies were concluded during the nine months ended September 30, 2025: Macro Spiecapag Coastal GasLink Joint Venture Coastal GasLink LP and Macro Spiecapag Coastal GasLink Joint Venture (MSJV) have reached a mutually acceptable resolution to their disputes. The settlement is not an admission of liability by either party and the parties have mutually released their respective claims in the arbitration. Details of the arbitration and the settlement are confidential and the settlement did not have a material impact on TC Energy’s financial statements. Pacific Atlantic Pipeline Construction Ltd. Coastal GasLink LP and Pacific Atlantic Pipeline Construction Ltd., one of the prime contractors on the Coastal GasLink pipeline, and their parent company Bonatti S.p.A, have reached a mutually acceptable re --- solution to their disputes. The settlement is not an admission of liability by either party and the parties have mutually released their respective claims in the arbitration. Details of the arbitration and the settlement are confidential, but it does include the retention by Coastal GasLink LP of the letter of credit funds drawn in 2024 and the settlement did not have a material impact on TC Energy's financial statements. 2016 Columbia Pipeline Acquisition Lawsuit In 2018, former shareholders of Columbia Pipeline Group Inc. (CPG) commenced a class action lawsuit related to the acquisition of CPG by TC Energy in 2016. In 2023, the Delaware Chancery Court (the Court) found that the former CPG executives breached their fiduciary duties, that the former CPG Board breached its duty of care in overseeing the sale process and that TC Energy aided and abetted those breaches. TC Energy's allocated share of damages was an estimated US$350 million, plus post-judgment interest. TC Energy appealed the decision to the Delaware Supreme Court and on June 17, 2025, the Supreme Court issued its decision reversing the Court’s finding of liability against TC Energy. On July 10, 2025, the Court granted the final order vacating its prior judgment and dismissing plaintiffs’ claims against TC Energy. As a result, this matter is now concluded in TC Energy’s favour with no liability. There is no further right of appeal. TC Energy Third Quarter 2025 | 85 Guarantees TC Energy and its partner on the Sur de Texas pipeline, IEnova, have jointly guaranteed the financial performance of the entity which owns the pipeline. Such agreements include a guarantee and a letter of credit which are primarily related to the delivery of natural gas. TC Energy and its joint venture partner on Bruce Power, BPC Generation Infrastructure Trust, have each severally guaranteed certain contingent financial obligations of Bruce Power related to a lease agreement and contractor and supplier services. The Company and its partners in certain other jointly-owned entities have either (i) jointly and severally, (ii) jointly or (iii) severally guaranteed the financial performance of these entities. Such agreements include guarantees and letters of credit which are primarily related to construction services and the payment of liabilities. For certain of these entities, any payments made by TC Energy under these guarantees in excess of its ownership interest are to be reimbursed by its partners. The carrying value of these guarantees has been included in Other long-term liabilities on the Condensed consolidated balance sheet. Information regarding the Company’s guarantees is as follows: September 30, 2025 December 31, 2024 (unaudited - millions of Canadian $) Term Potential exposure1 Carrying value Potential exposure1 Carrying value Bruce Power Renewable to 2065 88 — 88 — Sur de Texas Renewable to 2053 85 — 93 — Other jointly-owned entities to 2032 55 1 59 1 228 1 240 1 1 TC Energy's share of the potential estimated current or contingent exposure. 86 | TC Energy Third Quarter 2025 15. VARIABLE INTEREST ENTITIES Consolidated VIEs A significant portion of the Company’s assets are held through VIEs in which the Company holds a 100 per cent voting interest, the VIE meets the definition of a business and the VIE’s assets can be used for general corporate purposes. The consolidated VIEs whose assets cannot be used for purposes other than for the settlement of the VIE’s obligations, or are not considered --- a business, were as follows: (unaudited - millions of Canadian $) September 30, 2025 December 31, 2024 ASSETS Current Assets Cash and cash equivalents 208 311 Accounts receivable 840 839 Inventories 213 205 Other current assets 100 121 1,361 1,476 Plant, Property and Equipment 49,687 49,904 Equity Investments 977 865 Restricted Investments 1,157 950 Regulatory Assets 111 53 Goodwill 463 479 Other Long-Term Assets 98 59 53,854 53,786 LIABILITIES Current Liabilities Notes Payable 174 — Accounts payable and other 1,862 1,866 Accrued interest 212 202 Current portion of long-term debt 583 2,062 2,831 4,130 Regulatory Liabilities 1,474 1,232 Other Long-Term Liabilities 67 70 Deferred Income Tax Liabilities 8 7 Long-Term Debt 12,799 12,387 17,179 17,826 TC Energy Third Quarter 2025 | 87 Non-Consolidated VIEs The carrying value of non-consolidated VIEs and the maximum exposure to loss as a result of the Company's involvement with these VIEs are as follows: (unaudited - millions of Canadian $) September 30, 2025 December 31, 2024 Balance Sheet Exposure Equity investments Bruce Power 7,585 7,043 Coastal GasLink 852 1,006 Other pipeline equity investments 159 160 Off-Balance Sheet Exposure1 Bruce Power 2,250 1,877 Coastal GasLink2 265 265 Other pipeline equity investments — 2 Maximum Exposure to Loss 11,111 10,353 1 Includes maximum potential exposure to guarantees and future funding commitments. 2 TC Energy is contractually obligated to fund the capital costs to complete the Coastal GasLink pipeline by funding the remaining equity requirements of Coastal GasLink LP through incremental capacity on the subordinated loan agreement with Coastal GasLink LP until final costs are determined. In addition to the subordinated loan agreement, TC Energy has entered into an equity contribution agreement to fund a maximum of $37 million for its proportionate share of the equity requirements related to the Cedar Link project. 88 | TC Energy Third Quarter 2025