TC PipeLines LP
) reported strong second-quarter 2014 results on the back of robust
performance by all of its pipeline assets.
The Calgary, Alberta-based master limited partnership (MLP) posted
second-quarter earnings per unit (EPU) of 58 cents, 45% higher than
the prior-year quarter level of 40 cents and also above the Zacks
Consensus Estimate of 55 cents.
Distribution & Cash Flows
TC PipeLines announced second-quarter cash distribution of 84 cents
per unit ($3.36 per unit annualized). The new distribution - 3.7%
higher sequentially - is the 15th consecutive yearly distribution
increase for the partnership. The distribution will be paid on Aug
14, to unitholders of record as of Aug 5.
The partnership's total cash flow during the reported quarter
increased about 83.3% from the year-ago quarter to $77.0 million.
The rise came on the back of additional cash distributions from TC
PipeLines' extra 45% interest in GTN and Bison each, acquired
during the third quarter of 2013.
TC PipeLines distributed $52.0 million during the quarter, up
almost 21.0% from the year-ago level, as a result of the rise in
the quarterly distribution in July last year. An increase in
outstanding common units following the May 2013 equity offerings,
also aided the results.
Pipeline Systems' Performance
The partnership's equity income from the Great Lakes was $2
Northern Border Pipeline:
Equity income from the Northern Border Pipeline was $16.0 million,
compared with $15 million in the year-ago quarter.
As of Jun 30, 2014, TC PipeLines had $135.0 million outstanding on
the $500.0 million senior credit facility. The partnership had
long-term debt (including current portion) of $1,484.0 million,
representing a debt-to-capitalization ratio of 45.6%.
Zacks Rank & Other Stock Picks
TC PipeLines currently carries a Zacks Rank #3 (Hold). This implies
that it is expected to perform in line with the broader U.S. equity
market over the next one to three months.
Meanwhile, one can consider better-ranked players from the same
industry such as Magellan Midstream Partners LP (
), NuStar Energy L.P. (
) and Enterprise Products Partners L.P. (
). All these stocks sport a Zacks Rank #1 (Strong Buy).
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