TC PipeLines, LP (TCP) reported earnings on Wed 2 May 2018 (b/o)

TC PipeLines, LP acquires, owns, and participates in the management of energy infrastructure businesses in North America. The company has interests in eight natural gas interstate pipeline systems that transport approximately 10.4 billion cubic feet per day of natural gas from producing regions and import facilities to market hubs and consuming markets primarily in the Western, Midwestern, and Eastern United States.

• Forward Dividend & Yield 4.00 (11.57%)
• Sector: Energy
• Industry: Oil & Gas Midstream
• Houston, Texas
• http://www.tcpipelineslp.com

  ** charts after earnings **

 

HOUSTON, May 02, 2018 (GLOBE NEWSWIRE) -- TC PipeLines, LP (TCP) (the Partnership) today reported first quarter 2018 net income to controlling interests of $96 million and distributable cash flow of $112 million. Additionally, in light of the March 15, 2018 actions by the Federal Energy Regulatory Commission (FERC) and their potential adverse impact on our Partnership’s cash flow, the board of directors of TC PipeLines GP, Inc., the Partnership’s general partner, declared the Partnership’s first quarter 2018 cash distribution of $0.65 per common unit payable on May 15, 2018 to unitholders of record as of the close of business on May 9, 2018. This represents a 35 percent reduction from the distribution declared for the previous quarter. The reduced distribution level allows the Partnership to retain a portion of the operating cash generated by its pipeline systems, to repay a portion of our debt to maintain prudent financial metrics and to fund near-term capital requirements in lieu of additional equity issuances.

“This has been a quarter of significant changes for the Partnership. Our assets performed very well during the period, generating increased earnings and cash flow compared to the same quarter a year ago,” said Nathan Brown, president of TC PipeLines GP, Inc. “The recent winter period was long and cold and our pipelines served their markets with natural gas to heat homes and provide power, a testament to our focus on safe and reliable operations.”

First Quarter Highlights (All financial figures are unaudited)

• Generated net income attributable to controlling interests of $96 million
• Paid cash distributions of $91 million including $15 million paid to Class B units
• Declared cash distributions of $0.65 per common unit, down from our fourth quarter 2017 distribution of $1.00 per common unit
• Generated EBITDA of $150 million and distributable cash flow of $112 million
• Raised net proceeds of approximately $40 million (prior to March 15, 2018) through the Partnership’s At-the-Market (ATM) equity issuance program and through General Partner contributions
• Received FERC approval for Great Lakes and Northern Border rate settlements
• FERC proposed changes related to a number of income tax matters with respect to pipeline ratemaking