Pipeline operator TC PipeLines LP reported second-quarter 2016 earnings per unit (EPU) of 76 cents that beat the Zacks Consensus Estimate of 61 cents. The figure also improved from 66 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.   
 

Quarterly transmission revenues of $89 million demonstrated a 5% improvement from the year-ago quarter level.    

Distribution & Cash Flow

Late last month, TC PipeLines announced second-quarter 2016 cash distribution of 94 cents per unit ($3.76 per unit annualized),  representing a 6% sequential increase.

The partnership’s total distributable cash flow rose about 17.6% year over year to $80 million.

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

Pipeline Systems’ Performance

Great Lakes: The partnership incurred a loss of $4 million from equity investment.

Northern Border Pipeline: Equity loss at this pipeline totaled $16 million, wider than the prior-year quarter loss of $15 million.  

Liquidity

As of Jun 30, 2016, TC PipeLines had long-term debt (excluding current portion) of $1,938 million, which represents a debt-to-capitalization ratio of 64.6%.   

TC PIPELINES Price, Consensus and EPS Surprise

TC PIPELINES Price, Consensus and EPS Surprise | TC PIPELINES Quote

Zacks Rank & Key Picks

Calgary, Alberta-based TC PipeLines currently carries a Zacks Rank #3 (Hold). Better-ranked players in the energy sector include Antero Resources Corporation (AR Quick QuoteAR - Free Report) , Antero Midstream Partners LP (AM Quick QuoteAM - Free Report) and Matador Resources Company (MTDR Quick QuoteMTDR - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy).

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