TC Energy splitting into two companies, spinning off liquids business

Following a two-year strategic review, TC Energy’s board of directors has approved the energy giant’s plan to split into two separate companies.

In a news release on July 27, the company announced that it’s spinning off its “Liquids Pipelines business.” The “transaction” is expected to be completed on a tax-free basis in the second half of 2024.

“This transformative announcement sets us up to deliver superior shareholder value for the next decade and beyond,” President and CEO François Poirier said in the release.

“As we have become the partner of choice for a magnitude of accretive, high-quality opportunities, we have determined that as two separate companies we can better execute on these distinct opportunity sets to unlock shareholder value.”

Once the spin-off is complete, TC Energy will focus on natural gas infrastructure, nuclear, pumped hydro energy storage, and new energy opportunities.

The “Liquids Pipelines Company”, which will be led by Bevin Wirzba, will focus on enhancing the value of the company’s existing crude oil pipelines — including the Keystone pipeline system.

TC Energy added that the new entity will be headquartered in Calgary with an office in Houston, Texas.

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Splitting after reporting layoffs

TC Energy’s separation announcement comes roughly a month after the energy giant laid off an undisclosed number of employees.

However, the company isn’t alone. Several major North American companies, including Amazon, Microsoft, PVH, Rogers, Ritual, and Suncor Energy, are also scaling back their staffing levels as they continue to navigate challenging economic conditions.

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Termination agreements for TC Energy employees

TC Energy’s decision to split into two separate companies could result in some staff members losing their jobs.

In Canada, non-unionized employees at the energy giant are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many non-unionized employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

LEARN MORE
• Severance for provincially regulated employees
• Severance packages during mass layoffs
• Severance pay in a recession

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper severance if it falls short of what you are actually owed.

If you don’t receive the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.

In some cases, employers pressure staff into accepting poor severance packages, such as imposing a deadline for accepting the offer.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue a claim for full severance pay.