TC PipeLines, LP Announces 2015 Second Quarter Financial Results
(firmenpresse) - HOUSTON, TEXAS -- (Marketwired) -- 08/06/15 -- TC PipeLines, LP (NYSE: TCP) (the Partnership) today reported second quarter 2015 Partnership cash flows of $93 million and net income attributable to controlling interests of $44 million or $0.66 per common unit.
"Our portfolio of assets performed well in the second quarter. The long-term contracted nature of our business underpins our consistent results, especially during times of market volatility," said Steve Becker, President of TC PipeLines, GP, Inc. "Our cash available for distribution reflects higher seasonal revenues typical during the winter season. As well, our purchase of the remaining interests in both GTN and Bison produced higher year- over-year cash flows and earnings."
Second Quarter 2015 Highlights (All financial figures are unaudited)
The Partnership's financial highlights for the second quarter of 2015 compared to the second quarter of 2014 were:
Recent Developments
Cash Distributions - On July 23, 2015, the board of directors of our General Partner declared the Partnership's second quarter 2015 cash distribution in the amount of $0.89 per common unit, payable on August 14, 2015 to unitholders of record as of August 4, 2015.
GTN Settlement - On June 30, 2015, FERC approved GTN's rate settlement as filed on April 23, 2015. The rate settlement satisfies GTN's obligations from its 2011 rate settlement for new rates to be in effect on January 1, 2016 and the 2015 settlement will reduce rates on the mainline by 3 percent on July 1, 2015. In January 2016, GTN's rates will decrease a further 10 percent through December 31, 2019. Unless superseded by a subsequent rate case or settlement, GTN's rates will decrease an additional 8 percent for the period January 1, 2020 through December 31, 2021 when GTN will be required to establish new rates. We expect that GTN's near-term results will not be materially affected due to increased contracting and other revenue opportunities on the system.
Results of Operations
For the three months ended June 30, 2015, net income attributable to controlling interests increased by $7 million to $44 million compared to the second quarter of 2014. This increase was primarily due to increased earnings resulting from the acquisitions of the remaining 30 percent interest of each of Bison in October 2014 and GTN in April 2015.
Partnership cash flows increased to $93 million in the second quarter of 2015 compared to $77 million in the same period of 2014. The increase was primarily due to increased cash flow as a result of the acquisitions of the remaining 30 percent interests in the Bison and GTN pipelines.
Beginning the first quarter of 2016 and annually thereafter, our Partnership Cash Flows will be impacted by any distributions made to the Class B units. The Class B units issued by the Partnership to finance a portion of the 2015 GTN acquisition entitle TransCanada to a distribution based on 30 percent of GTN's annual distributions as follows: (i) 100 percent of distributions above $20 million through March 31, 2020; and (ii) 25 percent of distributions above $20 million thereafter.
The Class B distribution amount will initially be calculated to equal 30 percent of GTN's distributable cash flow for the nine months ending December 31, 2015, less $15 million.
Distributions paid in the second quarter of 2015 increased by $3 million compared to the same period in 2014 due to a $0.03 increase in the distribution per common unit in July 2014, as well as an increase in the number of common units outstanding resulting from the ATM equity issuance program.
Non-GAAP Measures
The Partnership uses the non-GAAP financial measures "Partnership cash flows" and "Partnership cash flows before General Partner distributions" as they provide measures of cash generated during the period to evaluate our cash distribution capability. Management also uses these measures as a basis for recommendations to our General Partner's board of directors regarding the distribution to be declared each quarter. Partnership cash flow information is presented to enhance investors' understanding of the way management analyzes the Partnership's financial performance.
Partnership cash flows include net income attributable to controlling interests, plus operating cash flows from our wholly-owned subsidiaries, and cash distributions received from our non-wholly owned subsidiaries and equity investments, less equity earnings from unconsolidated affiliates and consolidated subsidiaries' net income, plus net income attributable to non-controlling interests from consolidated subsidiaries, and net of distributions declared to the General Partner. Partnership cash flows before General Partner distributions represent Partnership cash flows prior to distributions paid to the General Partner. Distributions paid to the General Partner represent the cash distributions paid during the period with respect to its two percent interest plus an amount equal to incentive distributions.
Partnership cash flows and Partnership cash flows before General Partner distributions 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. For further details, see the reconciliation of non-GAAP measures in the Supplemental Schedule.
Conference Call
Analysts, members of the media, investors and other interested parties are invited to participate in a teleconference by calling 866.225.0198 on Thursday, August 6, 2015 at 10:30 a.m. central time (CDT)/11:30 a.m. eastern time (EDT). Steve Becker, President of the General Partner, will discuss the second quarter financial results and provide an update on the Partnership's business, followed by a question and answer session for the investment community and media. Please dial in 10 minutes prior to the start of the call. No pass code is required. A live webcast of the conference call will also be available through the Partnership's website at . Slides for the presentation will be posted on the Partnership's website under "Events and Presentations" prior to the webcast.
A replay of the teleconference will also be available two hours after the conclusion of the call and until 11 p.m. (CDT) and midnight (EDT) on August 13, 2015, by calling 800.408.3053, then entering pass code 7363759.
TC PipeLines, LP is a Delaware master limited partnership with interests in six federally regulated U.S. interstate natural gas pipelines which serve markets in the Western and Midwestern 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 timing, structure and closing of future dropdowns of TransCanada's remaining U.S. natural gas pipeline assets and the ability of these assets to generate ongoing value to our unitholders, 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, 2014 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.
Contacts:
Media Inquiries:
Mark Cooper/Davis Sheremata
403.920.7859/800.608.7859
Unitholder and Analyst Inquiries:
Rhonda Amundson
877.290.2772
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 06.08.2015 - 11:30 Uhr
Sprache: Deutsch
News-ID 411984
Anzahl Zeichen: 0
contact information:
Town:
HOUSTON, TEXAS
Kategorie:
Oil & Gas
Diese Pressemitteilung wurde bisher 151 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"TC PipeLines, LP Announces 2015 Second Quarter Financial Results"
steht unter der journalistisch-redaktionellen Verantwortung von
TC PipeLines, LP (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
