Pipeline operator TC PipeLines LP reported third-quarter 2016 earnings per unit (EPU) of 65 cents that beat the Zacks Consensus Estimate of 61 cents. The figure, however, deteriorated from 70 cents recorded in the year-ago quarter. Higher transportation demand, solid performance by the partnership’s existing asset base along with synergies from the acquisition of Portland Natural Gas Transmission System (“PNGTS”) drove the results in the quarter.
Quarterly transmission revenues of $91 million missed the Zacks Consensus Estimate of $107 million. Nonetheless, the top line demonstrated a 7.1% improvement from the year-ago quarter level.
Distribution & Cash Flow
Late last month, TC PipeLines announced third-quarter 2016 cash distribution of 94 cents per unit ($3.76 per unit annualized), up 6% year over year. The distribution remained unchanged from the amount paid in second-quarter 2016.
The partnership’s total distributable cash flow rose about 16.7% year over year to $84 million.
TC PipeLines distributed $65 million in the reported quarter as against $59 million in the year-ago quarter.
Pipeline Systems’ Performance
Great Lakes: The partnership incurred a loss of $4 million from equity investment, wider than the prior-year quarter loss of $1 million.
Northern Border Pipeline: Equity loss at this pipeline totaled $18 million, wider than the prior-year quarter loss of $16 million.
Liquidity
As of Sep 30, 2016, TC PipeLines had long-term debt (excluding current portion) of $1,896 million, which represents a debt-to-capitalization ratio of 63.3%.
TC PIPELINES Price, Consensus and EPS Surprise
Zacks Rank & Key Picks
Calgary, Alberta-based TC PipeLines currently carries a Zacks Rank #3 (Hold).
Some better-ranked players from the broader energy sector include North Atlantic Drilling Limited , Ultra Petroleum Corp. and McDermott International Inc. . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last four quarters, North Atlantic Drilling posted an average positive earnings surprise of 148.4%.
Ultra Petroleum, on the other hand, posted an average positive earnings surprise of 65.91% in the last four quarters.
In the last four quarters, McDermott posted an average positive earnings surprise of 250.00%.
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Pipeline operator TC PipeLines LP reported third-quarter 2016 earnings per unit (EPU) of 65 cents that beat the Zacks Consensus Estimate of 61 cents. The figure, however, deteriorated from 70 cents recorded in the year-ago quarter. Higher transportation demand, solid performance by the partnership’s existing asset base along with synergies from the acquisition of Portland Natural Gas Transmission System (“PNGTS”) drove the results in the quarter.
Quarterly transmission revenues of $91 million missed the Zacks Consensus Estimate of $107 million. Nonetheless, the top line demonstrated a 7.1% improvement from the year-ago quarter level.
Distribution & Cash Flow
Late last month, TC PipeLines announced third-quarter 2016 cash distribution of 94 cents per unit ($3.76 per unit annualized), up 6% year over year. The distribution remained unchanged from the amount paid in second-quarter 2016.
The partnership’s total distributable cash flow rose about 16.7% year over year to $84 million.
TC PipeLines distributed $65 million in the reported quarter as against $59 million in the year-ago quarter.
Pipeline Systems’ Performance
Great Lakes: The partnership incurred a loss of $4 million from equity investment, wider than the prior-year quarter loss of $1 million.
Northern Border Pipeline: Equity loss at this pipeline totaled $18 million, wider than the prior-year quarter loss of $16 million.
Liquidity
As of Sep 30, 2016, TC PipeLines had long-term debt (excluding current portion) of $1,896 million, which represents a debt-to-capitalization ratio of 63.3%.
TC PIPELINES Price, Consensus and EPS Surprise
Zacks Rank & Key Picks
Calgary, Alberta-based TC PipeLines currently carries a Zacks Rank #3 (Hold).
Some better-ranked players from the broader energy sector include North Atlantic Drilling Limited , Ultra Petroleum Corp. and McDermott International Inc. . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last four quarters, North Atlantic Drilling posted an average positive earnings surprise of 148.4%.
Ultra Petroleum, on the other hand, posted an average positive earnings surprise of 65.91% in the last four quarters.
In the last four quarters, McDermott posted an average positive earnings surprise of 250.00%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand.Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>