Balance Sheet

  • In 2006, TransCanada's shareholders' equity increased by $0.5 billion to $7.7 billion.

Net Income

  • In 2006, net income was $1,079 million or $2.21 per share compared to $1,209 million or $2.49 per share in 2005.

Net Earnings

  • In 2006, TransCanada's net income from continuing operations (net earnings) was $1,051 million or $2.15 per share compared to $1,209 million or $2.49 per share in 2005.
  • Excluding gains on sales of assets, TransCanada's net earnings increased $186 million in 2006 to $1,038 million or $2.12 per share compared to $852 million or $1.75 per share in 2005.

Investing Activities

  • In 2006, TransCanada invested approximately $2.0 billion in its Pipelines and Energy businesses.
  • In February 2007, the Company closed the acquisition of ANR and an additional 3.55 per cent interest in Great Lakes for approximately US$3.4 billion, subject to certain post-closing adjustments, including approximately US$488 million of assumed long-term debt.
  • In February 2007, TC PipeLines, LP (PipeLines LP) closed its acquisition of a 46.45 per cent interest in Great Lakes for approximately US$962 million, subject to certain post-closing adjustments, including approximately US$212 million of assumed long-term debt.

Financing Activities

  • In 2006, TransCanada issued $2.1 billion of long-term debt.
  • In January 2007, the Company filed a short form shelf prospectus in Canada and the U.S. to allow for the offering of up to $3.0 billion of common shares, preferred shares and/or subscription receipts.
  • In February 2007, the Company sold 39,470,000 subscription receipts at a price of $38.00 each. The gross proceeds of approximately $1.5 billion were used to partially finance the ANR acquisition. TransCanada granted the underwriters of the subscription receipts offering an option to purchase an additional 5,920,500 common shares at a price of $38.00 at any time up to and including March 16, 2007.
  • In February 2007, the Company entered into agreements for a US$2.2 billion one-year bridge loan facility and, through a wholly owned subsidiary, for a new US$1.0 billion credit facility. The Company utilized $1.5 billion and US$1.8 billion from these and existing facilities to partially finance the ANR acquisition as well as additional interests in PipeLines LP, described below. A portion of these advances were repaid on February 23, 2007 with proceeds from the subscription receipt offering.
  • In February 2007, PipeLines LP increased the size of its syndicated revolving credit and term loan agreement to US$950 million. Draws of US$126 million under this agreement were used to partially finance PipeLines LP's Great Lakes acquisition.
  • In February 2007, PipeLines LP completed a private placement offering of 17,356,086 common units at a price of US$34.57 per unit. TransCanada acquired 50 per cent of the units for US$300 million and invested an additional approximately US$12 million to maintain its general partner interest, increasing its total ownership to 32.1 per cent. The total private placement resulted in gross proceeds of approximately US$612 million which were used to partially finance PipeLines LP's Great Lakes acquisition.

Dividend

  • On January 29, 2007, the Board of Directors of TransCanada increased the quarterly dividend on the Company's outstanding common shares for the quarter ending March 31, 2007 by six per cent to $0.34 per share from $0.32 per share. This is the seventh consecutive annual increase in the common share dividend.
  • In January 2007, TransCanada's Board of Directors authorized the issue of common shares from treasury at a two per cent discount under the Company's Dividend Reinvestment and Share Purchase Plan (DRP), beginning with the dividend payable April 30, 2007 to shareholders of record at March 30, 2007.