SEDAR Interim Financial Statements

Condensed consolidated statement of income three months ended March 31 (unaudited - millions of Canadian $, except per share amounts) 2026 2025 Revenues Canadian Natural Gas Pipelines 1,454 1,371 U.S. Natural Gas Pipelines 1,769 1,858 Mexico Natural Gas Pipelines 426 226 Power and Energy Solutions 211 162 Corporate 1 6 3,861 3,623 Income (Loss) from Equity Investments 337 305 Operating and Other Expenses Plant operating costs and other 1,037 1,010 Commodity purchases resold 73 50 Property taxes 194 224 Depreciation and amortization 723 678 2,027 1,962 Financial Charges Interest expense 838 840 Allowance for funds used during construction (39) (248) Foreign exchange (gains) losses, net — (43) Interest income and other (33) (51) 766 498 Income (Loss) before Income Taxes 1,405 1,468 Income Tax Expense (Recovery) Current 67 83 Deferred 187 210 254 293 Net Income (Loss) 1,151 1,175 Net income (loss) attributable to non-controlling interests 224 169 Net Income (Loss) Attributable to Controlling Interests 927 1,006 Preferred share dividends 28 28 Net Income (Loss) Attributable to Common Shares 899 978 Net Income (Loss) per Common Share Basic and diluted $0.86 $0.94 Weighted Average Number of Common Shares (millions) Basic 1,041 1,039 Diluted 1,042 1,040 See accompanying Notes to the Condensed consolidated financial statements. TC Energy First Quarter 2026 | 41 Condensed consolidated statement of comprehensive income three months ended March 31 (unaudited - millions of Canadian $) 2026 2025 Net Income (Loss) 1,151 1,175 Other Comprehensive Income (Loss), Net of Income Taxes Foreign currency translation gains and losses on net investment in foreign operations 364 (41) Change in fair value of net investment hedges — 1 Change in fair value of cash flow hedges 27 3 Reclassification to net income of (gains) losses on cash flow hedges (17) 1 Other comprehensive income (loss) on equity investments (9) (12) 365 (48) Comprehensive Income (Loss) 1,516 1,127 Comprehensive income (loss) attributable to non-controlling interests 401 149 Comprehensive Income (Loss) Attributable to Controlling Interests 1,115 978 Preferred share dividends 28 28 Comprehensive Income (Loss) Attributable to Common Shares 1,087 950 See accompanying Notes to the Condensed consolidated financial statements. 42 | TC Energy First Quarter 2026 Condensed consolidated statement of cash flows three months ended March 31 (unaudited - millions of Canadian $) 2026 2025 Cash Generated from Operations Net income (loss) 1,151 1,175 Depreciation and amortization 723 678 Deferred income taxes 187 210 (Income) loss from equity investments (337) (305) Distributions received from operating activities of equity investments 532 336 Employee post-retirement benefits funding, net of expense (4) 2 Equity allowance for funds used during construction (33) (164) Unrealized (gains) losses on financial instruments 188 17 Expected credit loss provision 19 (2) Foreign exchange (gains) losses, net – intercompany loan (59) 5 Other (23) (3) (Increase) decrease in operating working capital 259 (590) Net cash provided by operations 2,603 1,359 Investing Activities Capital expenditures (1,070) (1,560) Capital projects in development (4) (4) Contributions to equity investments (233) (245) Other distributions from equity investments — 5 Deferred amounts and other 43 68 Net cash (used in) provided by investing activities (1,264) (1,736) Financing Activities Notes payable issued (repaid), net 985 1,147 Long-term debt is --- sued, net of issue costs 6 2,427 Long-term debt repaid (510) (2,009) Junior subordinated notes issued, net of issue costs 496 1,054 Dividends on common shares (884) (855) Dividends on preferred shares (27) (28) Common shares issued, net of issue costs 62 30 Distributions to non-controlling interests and other (377) (220) Amounts related to factoring arrangement (226) — Loan from affiliate 32 — Net cash (used in) provided by financing activities (443) 1,546 Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents 19 (8) Increase (Decrease) in Cash and Cash Equivalents 915 1,161 Cash and Cash Equivalents - Beginning of period 168 801 Cash and Cash Equivalents - End of period 1,083 1,962 See accompanying Notes to the Condensed consolidated financial statements. TC Energy First Quarter 2026 | 43 Condensed consolidated balance sheet (unaudited - millions of Canadian $) March 31, 2026 December 31, 2025 ASSETS Current Assets Cash and cash equivalents 1,083 168 Accounts receivable 2,380 2,794 Inventories 857 782 Other current assets 2,503 2,375 Current assets of discontinued operations 5 197 6,828 6,316 Plant, Property and Equipment net of accumulated depreciation of $37,754 and $36,951, respectively 72,021 71,054 Net Investment in Leases 8,230 8,110 Equity Investments 11,435 11,358 Restricted Investments 3,563 3,502 Regulatory Assets 2,974 2,913 Goodwill 13,244 13,016 Other Long-Term Assets 2,533 2,482 120,828 118,751 LIABILITIES Current Liabilities Notes payable 2,223 1,200 Accounts payable and other 4,910 5,274 Dividends payable 933 901 Accrued interest 843 858 Current portion of long-term debt 1,424 1,545 Current liabilities of discontinued operations 169 181 10,502 9,959 Regulatory Liabilities 5,946 5,841 Other Long-Term Liabilities 1,087 1,034 Deferred Income Tax Liabilities 7,973 7,677 Long-Term Debt 45,411 45,247 Junior Subordinated Notes 12,751 12,094 83,670 81,852 EQUITY Common shares, no par value 30,287 30,218 Issued and outstanding: March 31, 2026 – 1,042 million shares December 31, 2025 – 1,041 million shares Preferred shares 2,255 2,255 Retained earnings (Accumulated deficit) (5,947) (5,925) Accumulated other comprehensive income (loss) 935 747 Controlling Interests 27,530 27,295 Non-Controlling Interests 9,628 9,604 37,158 36,899 120,828 118,751 Commitments, Contingencies and Guarantees (Note 13) Variable Interest Entities (Note 14) See accompanying Notes to the Condensed consolidated financial statements. 44 | TC Energy First Quarter 2026 Condensed consolidated statement of equity three months ended March 31 (unaudited - millions of Canadian $) 2026 2025 Common Shares Balance at beginning of period 30,218 30,101 Shares issued: Exercise of stock options 69 35 Balance at end of period 30,287 30,136 Preferred Shares Balance at beginning and end of period 2,255 2,499 Additional Paid-In Capital Balance at beginning of period — — Exercise and forfeitures of stock options (6) (2) Reclassification of additional paid-in capital deficit to accumulated deficit 6 2 Balance at end of period — — Accumulated Deficit Balance at beginning of period (5,925) (5,241) Net income (loss) attributable to controlling interests 927 1,006 Common share dividends (914) (884) Preferred share dividends (29) (26) Reclassification of additional paid-in capital deficit to accumulated deficit (6) (2) Balance at end of period (5,947) (5,147) Accumulated Other Comprehensive Income (Loss) Balance at beginning of period 747 233 Other comprehensive income --- (loss) attributable to controlling interests 188 (28) Balance at end of period 935 205 Equity Attributable to Controlling Interests 27,530 27,693 Equity Attributable to Non-Controlling Interests Balance at beginning of period 9,604 10,768 Net income (loss) attributable to non-controlling interests 224 169 Other comprehensive income (loss) attributable to non-controlling interests 177 (20) Distributions declared to non-controlling interests (377) (171) Balance at end of period 9,628 10,746 Total Equity 37,158 38,439 See accompanying Notes to the Condensed consolidated financial statements. TC Energy First Quarter 2026 | 45 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, 2025, 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 2025 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 2025 audited Consolidated financial statements included in TC Energy’s 2025 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 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. 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. 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 inf --- ormation 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, 2025, except as described in Note 2, Accounting changes. 46 | TC Energy First Quarter 2026 2. ACCOUNTING CHANGES 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 types 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 consolidated 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 consolidated financial statements. Hedge Accounting Improvements In November 2025, the FASB issued new guidance to further align hedge accounting with the economics of an entity's risk management activities. The amendments are intended to allow entities to achieve and maintain hedge accounting for highly effective hedges of forecasted transactions. The new guidance is effective for interim and annual reporting periods beginning January 1, 2027. Early adoption is permitted. The guidance is applied on a prospective basis for all hedging relationships that exist at the date of adoption. The Company is currently assessing the impact of the standard on the Company's consolidated financial statements. Government Grants In December 2025, the FASB established authoritative guidance on the recognition, measurement and presentation requirements for government grants received. The new guidance is effective for annual and interim periods beginning January 1, 2029. Early adoption is permitted. The guidance can be applied with a modified prospective, a modified retrospective, or a retrospective approach. The Company is currently assessing the impact of the standard on the Company's consolidated financial statements. TC Energy First Quarter 2026 | 47 3. DISCONTINUED OPERATIONS Spinoff of Liquids Pipelines Business For the three months ended March 31, 2026 and 2025, the Company did not recognize any income or loss from discontinued operations. For the three months ended March 31, 2026 net cash provided by operations of discontinued operations was $168 million (2025 – $56 million used i --- n operations). At March 31, 2026, the Company reported current assets of discontinued operations of $5 million (December 31, 2025 – $197 million) and current liabilities of discontinued operations of $169 million (December 31, 2025 – $181 million). 48 | TC Energy First Quarter 2026 4. SEGMENTED INFORMATION three months ended March 31, 2026 Canadian Natural Gas Pipelines U.S. Natural Gas Pipelines Mexico Natural Gas Pipelines Power and Energy Solutions (unaudited - millions of Canadian $) Corporate1 Total Revenues 1,454 1,769 426 211 1 3,861 Intersegment revenues2 — 26 — 54 (80) — 1,454 1,795 426 265 (79) 3,861 Income (loss) from equity investments 26 121 45 145 — 337 Operating costs2 (561) (585) (58) (176) 76 (1,304) Depreciation and amortization (410) (256) (24) (33) — (723) Segmented Earnings (Losses) 509 1,075 389 201 (3) 2,171 Interest expense (838) Allowance for funds used during construction 39 Foreign exchange gains (losses), net — Interest income and other 33 Income (Loss) before Income Taxes 1,405 Income tax (expense) recovery (254) Net Income (Loss) 1,151 Net (income) loss attributable to non-controlling interests (224) Net Income (Loss) Attributable to Controlling Interests 927 Preferred share dividends (28) Net Income (Loss) Attributable to Common Shares 899 Capital Spending Capital expenditures 357 676 20 13 4 1,070 Capital projects in development — — — 4 — 4 Contributions to equity investments — — — 233 — 233 357 676 20 250 4 1,307 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. TC Energy First Quarter 2026 | 49 three months ended March 31, 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 1,371 1,858 226 162 6 3,623 Intersegment revenues2 — 26 — — (26) — 1,371 1,884 226 162 (20) 3,623 Income (loss) from equity investments 30 98 34 143 — 305 Operating costs2 (511) (621) (25) (142) 15 (1,284) Depreciation and amortization (374) (252) (24) (28) — (678) Segmented Earnings (Losses) 516 1,109 211 135 (5) 1,966 Interest expense (840) Allowance for funds used during construction 248 Foreign exchange gains (losses), net 43 Interest income and other 51 Income (Loss) before Income Taxes 1,468 Income tax (expense) recovery (293) Net Income (Loss) 1,175 Net (income) loss attributable to non-controlling interests (169) Net Income (Loss) Attributable to Controlling Interests 1,006 Preferred share dividends (28) Net Income (Loss) Attributable to Common Shares 978 Capital Spending Capital expenditures 416 804 305 30 5 1,560 Capital projects in development — — — 4 — 4 Contributions to equity investments — 54 — 191 — 245 416 858 305 225 5 1,809 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. 50 | TC Energy First Quarter 2026 Total Assets by Segment (unaudited - millions of Canadian $) March 31, 2026 December 31, 2025 Canadian Natural Gas Pipelines 31,368 31,371 U.S. Natural Gas Pipelines 57,909 56,617 Mexico Natural Gas Pipelines 16,448 16,342 Power and Energy Solutions 10,782 10,764 Corporate 4,316 3,460 120,823 118,554 Discontinued Operations 5 197 120,828 118,751 TC Energy First Quarter 2026 | 51 5. REVENUES Disaggregation of Revenues The following tables summarize total Revenues for the three months ended March 31, 2026 and 2025: three months ended March 31, 2026 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 1,454 1,618 106 — 3,178 Power generation — — — 54 54 Natural gas storage and other1 — 324 73 93 490 1,454 1,942 179 147 3,722 Sales-type lease income — — 247 — 247 Other revenues2 — (173) — 64 (109) 1,454 1,769 426 211 3,860 Corporate revenues3 1 3,861 1 The Mexico Natural Gas Pipelines segment includes $67 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 Transportadora de Gas Natural de La Huasteca (TGNH) pipelines. 2 Includes the Company's marketing activities, financial instruments and $31 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 March 31, 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 1,371 1,528 113 — 3,012 Power generation — — — 62 62 Natural gas storage and other1 — 258 32 115 405 1,371 1,786 145 177 3,479 Sales-type lease income — — 81 — 81 Other revenues2 — 72 — (15) 57 1,371 1,858 226 162 3,617 Corporate revenues3 6 3,623 1 The Mexico Natural Gas Pipelines segment includes $26 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 the Company's marketing activities, financial instruments and $30 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. 52 | TC Energy First Quarter 2026 Contract Balances (unaudited - millions of Canadian $) March 31, 2026 December 31, 2025 Affected line item on the Condensed consolidated balance sheet Receivables from contracts with customers 1,665 1,822 Accounts receivable Contract assets 295 216 Other current assets Long-term contract assets 622 627 Other long-term assets Contract liabilities1 73 46 Accounts payable and other 1 During the three months ended March 31, 2026, $19 million (2025 – $13 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 primarily represent unearned revenue for contracted services. Future Revenues from Remaining Performance Obligations At March 31, 2026, future revenues from long-term pipeline capacity arrangements and transportation as well as natural gas storage and other contracts extending through 2055 are approximately $33.7 billion, of which approximately $5.7 billion is expected to be recognized during the remainder of 2026. 6. INCOME TAXES Effective Tax Rates The effective income tax rates were 18 per cent and 20 per cent for the three months ended March 31, 2026 and 2025, respectively. The decrease in the effective income tax rate is primarily due to the impact of Mexico foreign exchange exposure partially offset by a change in the geographic and business mix of earnings and higher flow-through income taxes. TC Energy First Quarter 2026 | 53 7. LONG-TERM DEBT Long-Term Debt Repaid/Retired Long-term debt repaid/retired by the Company in the three months ended March 31, 2026 included the following: (unaudited - millions of Canadian $, unless otherwise noted) Company Repayment date Type Amount Interest rate TransCanada PipeLines Limited February 2026 Medium Term Notes 241 8.29% TC Energía Mexicana, S. de R.L. de C.V. March 2026 Senior Unsecured Term Loan US 168 Floating Subsequent Debt Repayment On April 13, 2026, TCPL fully repaid and retired $400 million of medium term notes bearing interest at a fixed rate of 4.35 per cent. Capitalized Interest In the three months ended March 31, 2026, TC Energy capitalized interest related to capital projects of $4 million (2025 – $3 million). 54 | TC Energy First Quarter 2026 8. JUNIOR SUBORDINATED NOTES Junior Subordinated Notes Issued Junior subordinated notes issued by the Company in the three months ended March 31, 2026 included the following: (unaudited - millions of Canadian $, unless otherwise noted) Company Issue date Type Maturity date Amount Interest rate TransCanada PipeLines Limited February 2026 Junior Subordinated Notes August 2056 500 5.13% In February 2026, TCPL issued $500 million of junior subordinated notes maturing in 2056 with a fixed interest rate of 5.13 per cent per year until August 20, 2031. The rate on the junior subordinated notes will reset every five years commencing August 2031 until August 2056 to the then Five-Year Government of Canada Yield, as defined in the document governing the subordinated notes, plus 2.24 per cent per annum, subject to a rate-reset minimum. The junior subordinated notes are callable at TCPL's option at any time from May 20, 2031 to August 20, 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. Subsequent Junior Subordinated Notes Issued On April 17, 2026, TCPL issued US$500 million of junior subordinated notes maturing in October 2056 with a fixed interest rate of 6.13 per cent until October 17, 2031, and resetting every five years thereafter. The rate on the junior subordinated notes will reset every five years commencing October 2031 until October 2056 to the then current Five-Year Treasury Rate, as defined in the document governi --- ng the subordinated notes, plus 2.25 per cent per annum, subject to a rate-reset minimum. The junior subordinated notes are callable at TCPL's option at any time from July 17, 2031 to October 17, 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. On April 17, 2026, TCPL issued US$500 million of junior subordinated notes maturing in October 2056 with a fixed interest rate of 6.38 per cent until October 17, 2036, and resetting every five years thereafter. The rate on the junior subordinated notes will reset every five years commencing October 2036 until October 2056 to the then current Five-Year Treasury Rate, as defined in the document governing the subordinated notes, plus 2.12 per cent per annum, subject to a rate-reset minimum. The junior subordinated notes are callable at TCPL's option at any time from July 17, 2036 to October 17, 2036 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. Pursuant to the terms of the junior subordinated notes issued in 2026, 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. TC Energy First Quarter 2026 | 55 9. COMMON SHARES AND PREFERRED SHARES The Board of Directors of TC Energy declared quarterly dividends as follows: three months ended March 31 (unaudited - Canadian $, rounded to two decimals unless otherwise noted) 2026 2025 per common share 0.8775 0.85 per Series 1 preferred share 0.31 0.31 per Series 2 preferred share 0.26 0.33 per Series 3 preferred share 0.26 0.11 per Series 4 preferred share 0.22 0.29 per Series 5 preferred share 0.28 0.12 per Series 6 preferred share — 0.29 per Series 7 preferred share 0.37 0.37 per Series 9 preferred share 0.32 0.32 per Series 10 preferred share 0.28 0.34 On January 30, 2026, the remaining 1,929,407 Series 6 preferred shares were converted, on a one-for-one basis, into 1,929,407 Series 5 preferred shares and Series 6 preferred shares were delisted from the TSX at the close of markets on January 30, 2026. 56 | TC Energy First Quarter 2026 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 March 31, 2026 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 360 4 364 Change in fair value of cash flow hedges 36 (9) 27 Reclassification to net income of (gains) losses on cash flow hedges (22) 5 (17) Other comprehensive income (loss) on equity investments (13) 4 (9) Other Comprehensive Income (Loss) 361 4 365 three months ended March 31, 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 (40) (1) (41) Change --- in fair value of net investment hedges 1 — 1 Change in fair value of cash flow hedges 4 (1) 3 Reclassification to net income of (gains) losses on cash flow hedges 2 (1) 1 Other comprehensive income (loss) on equity investments (17) 5 (12) Other Comprehensive Income (Loss) (50) 2 (48) The changes in AOCI by component, net of tax, were as follows: three months ended March 31, 2026 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, 2026 22 (7) 101 631 747 Other comprehensive income (loss) before reclassifications1 187 27 — (11) 203 Amounts reclassified from AOCI2 — (17) — 2 (15) Net current period other comprehensive income (loss) 187 10 — (9) 188 AOCI balance at March 31, 2026 209 3 101 622 935 1 Other comprehensive income (loss) before reclassifications on currency translation adjustments is net of non-controlling interest gains of $177 million (2025 – losses of $20 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 $13 million ($10 million after tax) at March 31, 2026. 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. TC Energy First Quarter 2026 | 57 Details about reclassifications out of AOCI into the Condensed consolidated statement of income were as follows: three months ended March 31 Affected line item in the Condensed consolidated statement of income1 (unaudited - millions of Canadian $) 2026 2025 Cash flow hedges Commodities 5 4 Revenues (Power and Energy Solutions) Foreign exchange 20 (3) Interest expense and Foreign exchange gains (losses), net Interest rate (3) (3) Interest expense 22 (2) Total before tax (5) 1 Income tax (expense) recovery 17 (1) Net of tax Equity investments Equity income (loss) (2) 2 Income (loss) from equity investments — — Income tax (expense) recovery (2) 2 Net of tax 1 All amounts in parentheses indicate expenses to the Condensed consolidated statement of income. 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 March 31 Pension benefit plans Other post-retirement benefit plans (unaudited - millions of Canadian $) 2026 2025 2026 2025 Service cost1 22 25 — — Other components of net benefit cost (recovery)1 Interest cost 41 41 3 4 Expected return on plan assets (63) (63) (4) (4) Amortization of past service costs — — (1) — (22) (22) (2) — Net Benefit Cost (Recovery) — 3 (2) — 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. 58 | TC Energy First Quarter 2026 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 der --- ivative 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 2025 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 recognition 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 months ended March 31, 2026, the Company recorded an expense of $17 million (2025 – recovery of $2 million) on the expected credit loss (ECL) provision before tax with respect to the net investment in leases associated with in-service TGNH pipelines. At March 31, 2026, the balance of the ECL provision was $162 million (December 31, 2025 – $141 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 March 31, 2026, 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 First Quarter 2026 | 59 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 as appropriate. 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) March 31, 2026 December 31, 2025 Notional amount 23,900 (US 17,100) 25,700 (US 18,700) Fair value 23,800 (US 17,100) 25,800 (US 18,800) 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 an --- d 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: March 31, 2026 December 31, 2025 (unaudited - millions of Canadian $) Carrying amount Fair value Carrying amount Fair value Long-term debt, including current portion1,2 (46,835) (47,225) (46,792) (47,720) Junior subordinated notes (12,751) (12,641) (12,094) (12,061) (59,586) (59,866) (58,886) (59,781) 1 Long-term debt is recorded at amortized cost, except for $4.7 billion (December 31, 2025 – $4.0 billion) that is attributed to hedged risk and recorded at fair value. 2 Net income (loss) for the three months ended March 31, 2026 included unrealized gains of $26 million (2025 – unrealized losses of $88 million) for fair value adjustments attributable to the hedged interest rate risk associated with interest rate swap fair value hedging relationships. 60 | TC Energy First Quarter 2026 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: March 31, 2026 December 31, 2025 (unaudited - millions of Canadian $) LMCI restricted investments Other restricted investments1 LMCI restricted investments Other restricted investments1 Fair value of fixed income securities2,3 Maturing within 1 year — 121 — 94 Maturing within 1-5 years 41 256 26 251 Maturing within 5-10 years 1,861 4 1,846 4 Maturing after 10 years — 17 — 16 Fair value of equity securities2,4 1,271 92 1,252 94 3,173 490 3,124 459 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 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. March 31, 2026 March 31, 2025 (unaudited - millions of Canadian $) LMCI restricted investments1 Other restricted investments2 LMCI restricted investments1 Other restricted investments2 Net unrealized gains (losses) in the period (14) (6) 36 3 Net realized gains (losses) in the period3 — — (16) — 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 First Quarter 2026 | 61 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 March 31, 2026 Cash flow hedges Fair value hedges Held for trading Total fair value of derivative instruments1 (unaudited - millions of Canadian $) Other current assets Commodities2 19 — 418 437 Foreign exchange 7 — 28 35 Interest rate — 4 — 4 26 4 446 476 Other long-term assets Commodities2 6 — 119 125 Foreign exchange — — 1 1 Interest rate — 14 — 14 6 14 120 140 Total Derivative Assets 32 18 566 616 Accounts payable and other Commodities2 — — (507) (507) Foreign exchange — — (55) (55) Interest rate — (9) — (9) — (9) (562) (571) Other long-term liabilities Commodities2 — — (72) (72) Foreign exchange (31) — (9) (40) Interest rate — (52) — (52) (31) (52) (81) (164) Total Derivative Liabilities (31) (61) (643) (735) Total Derivatives 1 (43) (77) (119) 1 Fair value equals carrying value. 2 Includes purchases and sales of power and natural gas. 62 | TC Energy First Quarter 2026 at December 31, 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 — 371 384 Foreign exchange 9 — 42 51 Interest rate — 3 — 3 22 3 413 438 Other long-term assets Commodities2 2 — 122 124 Foreign exchange — — 15 15 Interest rate — 22 — 22 2 22 137 161 Total Derivative Assets 24 25 550 599 Accounts payable and other Commodities2 (1) — (341) (342) Foreign exchange — — (30) (30) Interest rate — (8) — (8) (1) (8) (371) (380) Other long-term liabilities Commodities2 (1) --- — (61) (62) Foreign exchange (51) — (2) (53) Interest rate — (34) — (34) (52) (34) (63) (149) Total Derivative Liabilities (53) (42) (434) (529) Total Derivatives (29) (17) 116 70 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 $) March 31, 2026 December 31, 2025 March 31, 2026 December 31, 2025 Long-term debt (4,711) (4,068) 4 (22) 1 At March 31, 2026 and December 31, 2025, adjustments for discontinued hedging relationships included in this balance was a liability of $39 million. TC Energy First Quarter 2026 | 63 Notional and maturity summary The maturity and notional amount or quantity outstanding related to the Company's derivative instruments was as follows: at March 31, 2026 Power Natural gas Foreign exchange Interest rate (unaudited) Net sales (purchases)1 10,359 55 — — Millions of U.S. dollars — — 6,592 3,200 Millions of Canadian dollars — — — 250 Millions of Mexican pesos — — 18,750 — Maturity dates 2026-2044 2026-2032 2026-2030 2030-2039 1 Volumes for power and natural gas derivatives are in GWh and Bcf, respectively. at December 31, 2025 Power Natural gas Foreign exchange Interest rate (unaudited) Net sales (purchases)1 10,221 26 — — Millions of U.S. dollars — — 6,342 2,950 Millions of Mexican pesos — — 15,750 — Maturity dates 2026-2044 2026-2032 2026-2030 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 March 31 (unaudited - millions of Canadian $) 2026 2025 Derivative Instruments Held for Trading1 Unrealized gains (losses) in the period Commodities (128) (75) Foreign exchange (60) 58 Realized gains (losses) in the period Commodities (249) (29) Foreign exchange 5 (8) Interest rate 1 2 Derivative Instruments in Hedging Relationships Realized gains (losses) in the period Commodities 11 9 Foreign exchange 2 1 Interest rate (3) (9) 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 in the Condensed consolidated statement of income. 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. 64 | TC Energy First Quarter 2026 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 were as follows: three mon --- ths ended March 31 (unaudited - millions of Canadian $, pre tax) 2026 2025 Gains (losses) in fair value of derivative instruments recognized in OCI Commodities 16 14 Foreign exchange 20 (10) 36 4 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 March 31 (unaudited - millions of Canadian $) 2026 2025 Fair Value Hedges Interest rate contracts1 Hedged items (52) (44) Derivatives designated as hedging instruments (3) (9) Cash Flow Hedges Reclassification of gains (losses) on derivative instruments from AOCI to Net income (loss)2 Commodities3 5 4 Foreign exchange4 20 (3) Interest rate1 (3) (3) 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 Presented within Revenues (Power and Energy Solutions) in the Condensed consolidated statement of income. 4 Presented within Interest expense and Foreign exchange (gains) losses, net in the Condensed consolidated statement of income. TC Energy First Quarter 2026 | 65 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 consolidated 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 March 31, 2026 Gross derivative instruments Amounts available for offset1 Net amounts (unaudited - millions of Canadian $) Derivative instrument assets Commodities 562 (464) 98 Foreign exchange 36 (36) — Interest rate 18 (8) 10 616 (508) 108 Derivative instrument liabilities Commodities (579) 464 (115) Foreign exchange (95) 36 (59) Interest rate (61) 8 (53) (735) 508 (227) 1 Amounts available for offset do not include cash collateral pledged or received. at December 31, 2025 Gross derivative instruments Amounts available for offset1 Net amounts (unaudited - millions of Canadian $) Derivative instrument assets Commodities 508 (367) 141 Foreign exchange 66 (48) 18 Interest rate 25 (5) 20 599 (420) 179 Derivative instrument liabilities Commodities (404) 367 (37) Foreign exchange (83) 48 (35) Interest rate (42) 5 (37) (529) 420 (109) 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 $159 million and letters of credit of $151 million at March 31, 2026 (December 31, 2025 – $93 million and $73 million, respectively) to its counterparties. At March 31, 2026, the Company held cash collateral of $3 million and $128 million of letters of credit (December 31, 2025 – less than $1 million and $102 million, respectively) from counterparties on asset exposures. Only cash collateral that has been transferred and held at the reporting date is included in collater --- al disclosures. Margin payable but not yet posted of $17 million at March 31, 2026 (December 31, 2025 – $4 million) represents a financial obligation and is excluded from provided cash collateral balances. 66 | TC Energy First Quarter 2026 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 March 31, 2026, the aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position was $8 million (December 31, 2025 – net liability of $5 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 March 31, 2026, 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 March 31, 2026 Quoted prices in active markets (Level I) Significant other observable inputs (Level II)1 Significant unobservable inputs (Level III)1 (unaud --- ited - millions of Canadian $) Total Derivative instrument assets Commodities 183 327 52 562 Foreign exchange — 36 — 36 Interest rate — 18 — 18 Derivative instrument liabilities Commodities (171) (403) (5) (579) Foreign exchange — (95) — (95) Interest rate — (61) — (61) 12 (178) 47 (119) 1 There were no transfers from Level II to Level III for the three months ended March 31, 2026. TC Energy First Quarter 2026 | 67 at December 31, 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 154 279 75 508 Foreign exchange — 66 — 66 Interest rate — 25 — 25 Derivative instrument liabilities Commodities (151) (252) (1) (404) Foreign exchange — (83) — (83) Interest rate — (42) — (42) 3 (7) 74 70 1 There were no transfers from Level II to Level III for the year ended December 31, 2025. The Company has entered into contracts which commenced 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 70 per cent from wind generation, 10 per cent from solar generation and 20 per cent from the market (December 31, 2025 – 80 per cent wind generation, 10 per cent solar generation and 10 per cent 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 March 31 (unaudited - millions of Canadian $) 2026 2025 Balance at beginning of period 74 72 Net gains (losses) included in Net income (loss)1 (20) (23) Transfers to Level II (3) (2) Purchases (2) — Settlements (2) (2) Balance at end of period 47 45 1 For the three months ended March 31, 2026, there were unrealized losses of $18 million recognized in Revenues attributed to derivatives in the Level III category that were held at March 31, 2026 (2025 – unrealized losses of $23 million). 68 | TC Energy First Quarter 2026 13. COMMITMENTS, CONTINGENCIES AND GUARANTEES Commitments Capital expenditure commitments include obligations related to the construction of growth projects and are based on the projects proceeding as planned. At March 31, 2026, TC Energy had approximately $1.3 billion of capital expenditure commitments (December 31, 2025 – approximately $0.8 billion) reflecting 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. Contingencies TC Energy and its subsidiaries are subject to various legal proceedings, arbitrations and actions arising in the normal course of business. While the final outcome of such legal proceedings and actions cannot be predicted with certainty, it is the opinion of management that the resolution of such normal course proceedings and actions will not have a material impact on the Company's consolidated financial position or results of operations. 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: March 31, 2026 December 31, 2025 (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 80 — 78 — Other jointly-owned entities to 2032 55 1 54 1 223 1 220 1 1 TC Energy's share of the potential estimated current or contingent exposure. TC Energy First Quarter 2026 | 69 14. 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 $) March 31, 2026 December 31, 2025 ASSETS Current Assets Cash and cash equivalents 181 167 Accounts receivable 931 989 Inventories 216 211 Other current assets 82 65 1,410 1,432 Plant, Property and Equipment 50,121 49,445 Equity Investments 1,036 979 Restricted Investments 1,189 1,150 Regulatory Assets 137 109 Goodwill 464 456 Other Long-Term Assets 164 93 54,521 53,664 LIABILITIES Current Liabilities Notes Payable 1,178 535 Accounts payable and other 1,500 1,703 Accrued interest 238 216 Current portion of long-term debt 583 575 3,499 3,029 Regulatory Liabilities 1,513 1,458 Other Long-Term Liabilities 57 51 Deferred Income Tax Liabilities 9 7 Long-Term Debt 14,117 13,904 19,195 18,449 70 | TC Energy First Quarter 2026 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 $) March 31, 2026 December 31, 2025 Balance Sheet Exposure Equity investments Bruce Power 7,746 7,780 Coastal GasLink 873 896 Other pipeline equity investments 158 158 Off-Balance Sheet Exposure1 Bruce Power 1,781 1,955 Coastal GasLink2 200 200 Maximum Exposure to Loss 10,758 10,989 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 e --- ntered 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. TC Energy First Quarter 2026 | 71