TC PipeLines, LP Announces 2016 Second Quarter Financial Results
(firmenpresse) - HOUSTON, TEXAS -- (Marketwired) -- 08/04/16 -- TC PipeLines, LP (NYSE: TCP) (the Partnership) today reported second quarter 2016 net income attributable to controlling interests of $54 million and distributable cash flow of $76 million.
"Our portfolio of long-term contracted assets continued to perform well in the second quarter. Demand for transportation on GTN was strong which provided an opportunity for incremental revenue while Great Lakes has benefited from additional contracted volumes," said Brandon Anderson, President of TC PipeLines, GP, Inc. "This solid performance, together with the accretion on the PNGTS acquisition, provides the basis for us to increase the distribution to our unitholders by six percent again this year which is consistent with our historical guidance."
Second Quarter 2016 Highlights (All financial figures are unaudited)
The Partnership''s financial highlights for the second quarter of 2016 compared to the second quarter of 2015 were:
Recent Developments
Cash Distributions - On July 21, 2016, the board of directors of our General Partner declared the Partnership''s second quarter 2016 cash distribution in the amount of $0.94 per common unit, payable on August 12, 2016 to unitholders of record as of August 1, 2016. The declared distribution reflects a $0.05 per common unit increase to the quarterly distribution and will include an Incentive Distribution Right (IDR) payment to our General Partner amounting to approximately $2 million.
Tuscarora - On July 15, 2016, Tuscarora filed a petition with the Federal Energy Regulatory Commission (FERC) requesting approval of the Stipulation and Agreement of Settlement (Tuscarora Settlement) that resolves the Section 5 rate review initiated by FERC in January 2016. Under the terms of the Tuscarora Settlement, Tuscarora''s system - wide unit rate will initially decrease by 16 percent, with an anticipated effective date of August 1, 2016. Unless superseded by a subsequent rate case or settlement, this rate will remain in effect for three years, after which time the unit rate will decrease an additional seven percent for an additional three years. The settlement does not contain a rate moratorium and Tuscarora is obligated to file to establish new rates no later than six years following the effective date of the initial settlement rates. While this new rate structure will reduce Tuscarora''s future cash flows, the achievement of rate certainty helps ensure predictable cash flows and enhances Tuscarora''s long term value.
Three Months Ended June 30, 2016 Results of Operations
For the three months ended June 30, 2016, net income attributable to controlling interests increased by $10 million compared to the same period in 2015 due to higher revenues from our wholly-owned subsidiaries together with higher equity earnings from unconsolidated affiliates partially offset by increased costs:
Transmission revenues - the $4 million increase was primarily due to the net effect of:
Earnings from equity investments - the $7 million increase was mainly attributable to:
Additionally, our EBITDA increased by $12 million compared to the same period in 2015 primarily due to higher transmission revenues on GTN and higher equity earnings from our equity investments.
Distributable cash flow increased by $10 million in the second quarter of 2016 compared to the same period in 2015 primarily due to the same factors that impacted our EBITDA.
Six months Ended June 30, 2016 Cash Flow Analysis
The Partnership''s net cash provided by operating activities increased by $19 million for the six months ended June 30, 2016 compared to the same period in 2015 primarily due to higher earnings.
The Partnership''s net cash used in investing activities decreased by $87 million as we invested a lesser amount for our recent acquisition of PNGTS compared to our investment during the same period in 2015. In 2015, we paid $264 million to acquire the remaining 30 percent interest in GTN compared to $193 million paid for the acquisition of a 49.9 percent interest in PNGTS in 2016. Additionally, we received higher net distributions in 2016 from our equity investments offset by higher capital expenditures in 2016 due to the timing of expenditures related to the construction of the Carty Lateral.
The Partnership''s net cash provided by financing activities decreased by $123 million in the six months ended June 30, 2016 compared to the same period in 2015 primarily due to the net effect of:
At June 30, 2016, the Partnership''s available borrowing capacity under its credit facility of $500 million was $250 million.
About TC PipeLines, LP
TC PipeLines, LP is a Delaware master limited partnership with interests in seven federally regulated U.S. interstate natural gas pipelines which serve markets in the Western, Midwestern and Eastern United States. The Partnership is managed by its general partner, TC PipeLines GP, Inc., a subsidiary of TransCanada Corporation (NYSE: TRP). For more information about TC PipeLines, LP, visit the Partnership''s website at .
Forward-Looking Statements
Certain non-historical statements in this release relating to future plans, projections, events or conditions are intended to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on current expectations and, therefore, subject to a variety of risks and uncertainties that could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, including, without limitation, the outcome of TransCanada''s MLP strategy review, the timing, terms and closing of future acquisitions of additional natural gas pipeline assets and the ability of these assets to generate ongoing value to our unitholders, potential of requests for rescission of certain sales of common units under the Partnership''s ATM program, competitive conditions in the natural gas industry, increases in operating and compliance costs, the outcome of rate proceedings, our ability to identify and complete expansion and growth opportunities, operating hazards beyond our control, availability of capital and market demand that the Partnership expects or believes will or may occur in the future. These and other factors that could cause future results to differ materially from those anticipated are discussed in Item 1A in our Annual Report on Form 10-K for the year-ended December 31, 2015 filed with the Securities and Exchange Commission (the SEC), as updated and supplemented by subsequent filings with the SEC. All forward- looking statements are made only as of the date made and except as required by applicable law, we undertake no obligation to update any forward-looking statements to reflect new information, subsequent events or other changes.
Non-GAAP Measures
This news release contains references to non-GAAP measures, including EBITDA and Distributable Cash Flow that do not have any standardized meaning as prescribed by GAAP and therefore are unlikely to be comparable to similar measures presented by other companies. Distributable cash flow information and EBITDA are performance measures presented to assist investors in evaluating our business performance. We believe these measures provide additional meaningful information in evaluating our financial performance and the cash generating performance of our assets. The non-GAAP measures presented as part of this release are provided as a supplement to GAAP financial results and are not meant to be considered in isolation or as substitutes for financial results prepared in accordance with GAAP. The calculation of EBITDA and Distributable Cash Flow are reconciled to Net Income, the most comparable GAAP measure, and are included as part of this release. For more information on non-GAAP measures, refer to our Annual Report on Form 10-K for the year-ended December 31, 2015 as filed with the SEC.
For more information refer to our Quarterly Report on Form 10-Q for the period ended June 30, 2016 as filed with the SEC.
Contacts:
Media Inquiries:
Mark Cooper/Terry Cunha
403.920.7859
800.608.7859
Unitholder and Analyst Inquiries:
Rhonda Amundson
877.290.2772
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Datum: 04.08.2016 - 06:00 Uhr
Sprache: Deutsch
News-ID 1450832
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