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

Pipeline operator TC PipeLines LP TCP 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. 

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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