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TC PipeLines' (TCP) Beats Q1 Earnings on Solid Asset Base

Pipeline operator TC PipeLines LPTCP reported first-quarter 2016 earnings per unit (EPU) of $1.10 that beat the Zacks Consensus Estimate of 91 cents and improved from 88 cents earned in the year-ago quarter. Solid performance by the partnership's existing asset base along with the acquisition of Portland Natural Gas Transmission System ("PNGTS") supported the results.

TC Pipelines LP (TCP) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany

Quarterly transmission revenues of $86 million slipped 1.1% from the year-ago quarter level.

Distribution & Cash Flows

Late last month, TC PipeLines announced first-quarter 2016 cash distribution of 89 cents per unit ($3.56 per unit annualized). This represents a 6% year-over-year increase.

The partnership's total distributable cash flow jumped about 17.3% year over year to $95 million.

TC PipeLines distributed $60 million in the reported quarter, down from $55 million in the year-ago quarter.

Pipeline Systems' Performance

Great Lakes: The partnership incurred a loss of $15 million from equity investment, wider than the prior-year quarter loss of $11 million.

Northern Border Pipeline: Equity loss from this pipeline was $18 million, narrower than the prior-year quarter loss of $20 million.

Liquidity

As of Mar 31, 2016, TC PipeLines had a long-term debt (excluding current portion) of $2,059 million, which represents a debt-to-capitalization ratio of 65.3%.

Zacks Rank

Calgary, Alberta-based TC PipeLines currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the same space are Boardwalk Pipeline Partners, LP BWP , CONE Midstream Partners LP CNNX and Enable Midstream Partners, LP ENBL . Each of these players holds a Zacks Rank #2 (Buy).

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BOARDWALK PIPLN (BWP): Free Stock Analysis Report

CONE MIDSTREAM (CNNX): Free Stock Analysis Report

ENABLE MIDSTRM (ENBL): Free Stock Analysis Report

TC PIPELINES (TCP): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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