TransCanada PipeLines (TCPA) reports 2.4x interest coverage on debt
Rhea-AI Filing Summary
TransCanada PipeLines Limited reported supplemental earnings coverage information on a consolidated, unaudited basis for the twelve-month period ended June 30, 2026, prepared under US generally accepted accounting principles. Earnings from continuing operations before interest expense and income taxes were approximately $8.035 billion, versus interest obligations of approximately $3.382 billion, producing an earnings coverage ratio on long-term debt and current liabilities of 2.4 times, indicating how many times earnings covered interest requirements over that period.
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Key Figures
Earnings coverage ratio: 2.4 times
Interest obligations: $3.382 billion
Earnings before interest and income taxes: $8.035 billion
3 metrics
Earnings coverage ratio
2.4 times
Earnings coverage on long-term debt and current liabilities for twelve months ended June 30, 2026
Interest obligations
$3.382 billion
Interest obligations for twelve-month period ended June 30, 2026
Earnings before interest and income taxes
$8.035 billion
Earnings from continuing operations before interest expense and income taxes for twelve months ended June 30, 2026
Key Terms
Earnings coverage, continuing operations, US generally accepted accounting principles, long-term debt
4 terms
Earnings coverage financial
"Earnings coverage on long-term debt and current liabilities | 2.4 times"
continuing operations financial
"earnings from continuing operations before interest expense and income taxes"
Continuing operations are the parts of a company's business that it expects to keep running into the future, excluding divisions or activities it has sold, closed, or classified as discontinued. Investors watch continuing operations because they show the company’s core ability to generate revenue and profit over time — like evaluating the healthy, ongoing crops on a farm rather than one-off harvests from fields you've already sold.
US generally accepted accounting principles financial
"financial information prepared in accordance with US generally accepted accounting principles"
long-term debt financial
"Earnings coverage on long-term debt and current liabilities"
Long-term debt is money a company has borrowed that it does not have to repay for more than one year, such as bank loans or bonds. It matters to investors because these obligations require future interest and principal payments that can reduce cash available for growth or dividends; like a household mortgage, manageable long-term debt can finance expansion, but too much increases the risk that the company will struggle to meet payments.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What earnings coverage ratio did TransCanada PipeLines (TCPA) report for the year ended June 30, 2026?
TransCanada PipeLines reported an earnings coverage ratio of 2.4 times on long-term debt and current liabilities for the twelve-month period ended June 30, 2026, based on consolidated, unaudited US GAAP financial information.
What were TransCanada PipeLines (TCPA) interest obligations for the twelve months ended June 30, 2026?
For the twelve-month period ended June 30, 2026, TransCanada PipeLines had interest obligations of approximately $3.382 billion. This figure is used in calculating the company’s earnings coverage ratio on long-term debt and current liabilities.
How much did TransCanada PipeLines (TCPA) earn before interest and taxes for the period ended June 30, 2026?
Earnings from continuing operations before interest expense and income taxes were approximately $8.035 billion for the twelve-month period ended June 30, 2026. This amount provides the numerator in the company’s reported earnings coverage ratio.
Is the TransCanada PipeLines (TCPA) earnings coverage information audited?
The disclosed earnings coverage information is unaudited. It is calculated on a consolidated basis using financial data prepared in accordance with US generally accepted accounting principles for the twelve months ended June 30, 2026.
How is the TransCanada PipeLines (TCPA) earnings coverage ratio calculated?
The earnings coverage ratio is calculated by dividing earnings from continuing operations before interest and income taxes ($8.035 billion) by interest obligations ($3.382 billion), yielding 2.4 times for the twelve months ended June 30, 2026.