Welcome!

Microsoft Cloud Authors: Andreas Grabner, Stackify Blog, Liz McMillan, David H Deans, Automic Blog

News Feed Item

TC PipeLines, LP Announces Fourth Quarter 2012 Financial Results

HOUSTON, TEXAS -- (Marketwire) -- 02/08/13 -- TC PipeLines, LP (NYSE:TCP) (the Partnership) today reported fourth quarter 2012 Partnership cash flows of $51 million and net income of $30 million. For the year ended December 31, 2012, Partnership cash flows were $202 million and net income was $137 million.

"The Partnership's 2012 results reflect our solid contract-based business model where five of our six pipeline assets are largely insulated from near-term market fluctuations," said Steve Becker, president of TC PipeLines GP, Inc. "Great Lakes, however, generated lower results from a combination of expirations of longer-term contracts and lower demand for transportation services. Measures including the upcoming Great Lakes' rate case will provide an opportunity to mitigate the effects of changing market conditions."

"Over the past two years, we have completed rate cases with our shippers on Northern Border, GTN and Tuscarora which, although resulting in a minor revenue reduction, have increased cash flow stability for our unitholders. Our focus is on maintaining the long-term value of our portfolio and ensuring a stable asset base as the North American natural gas transmission industry strengthens," added Becker.

Full Year 2012 Highlights and Fourth Quarter Highlights (All financial figures are unaudited)

- Full Year Highlights


--  Partnership cash flows of $202 million 
--  Paid cash distributions of $169 million or $3.10 per common unit 
--  Increased quarterly cash distributions by 1.3 percent to $0.78 per
    common unit 
--  Net income of $137 million or $2.51 per common unit 

- Fourth Quarter Highlights


--  Partnership cash flows of $51 million 
--  Paid cash distributions of $43 million 
--  Declared cash distributions of $0.78 per common unit 
--  Net income of $30 million or $0.56 per common unit 
--  Received approval from FERC on Northern Border rate settlement 

The Partnership's financial highlights for the fourth quarter of 2012 and year ended December 31, 2012 compared to the same periods in 2011 were:


                                     Three months ended Twelve months ended 
(unaudited)                                December 31,        December 31, 
(millions of dollars except per                                             
 common unit amounts)                    2012      2011      2012      2011 
----------------------------------------------------------------------------
Partnership cash flows(a)(b)(c)            51        82       202       222 
Cash distributions paid                   (43)      (42)     (169)     (155)
Cash distributions paid per common                                          
 unit                                   $0.78    $ 0.77     $3.10    $ 3.04 
Net income(b)                              30        38       137       157 
Net income per common unit(d)           $0.56    $ 0.70     $2.51    $ 3.02 
Weighted average common units                                               
 outstanding (millions)                  53.5      53.5      53.5      51.1 
Common units outstanding at end of                                          
 period (millions)                       53.5      53.5      53.5      53.5 

Partnership cash flows in the fourth quarter of 2011 included one-time $28 million cash distributions from GTN and Bison, including a $20 million working capital adjustment related to the GTN acquisition in 2011. Excluding one time items, year over year cash flows were $51 million in the fourth quarter of 2012 versus $54 million in the fourth quarter of 2011. Similarly, on an annual basis, cash flows were $202 million in 2012 versus $202 million in 2011.

(a) Partnership cash flows is a non-GAAP financial measure. Refer to the section entitled "Partnership Cash Flows" for further detail.

(b) 25 percent interests in each of GTN and Bison were acquired in May 2011.

(c) Partnership cash flows for the three months ended December 31, 2011 included distributions from GTN and Bison related to prior periods. These distributions included $8 million related to undistributed second quarter cash flows and $20 million related to a working capital adjustment from the 2011 GTN acquisition.

(d) Net income per common unit is computed by dividing net income, after deduction of the General Partner's allocation, by the weighted average number of common units outstanding. The General Partner's allocation is computed based upon the General Partner's effective two percent general partner interest plus an amount equal to incentive distributions.

Recent Developments

On January 17, 2013, the board of directors of our General Partner declared the Partnership's fourth quarter 2012 cash distribution in the amount of $0.78 per common unit, payable on February 14, 2013 to unitholders of record as of January 29, 2013.

Great Lakes' long-haul capacity in the fourth quarter of 2012 was sold mostly under short-term contracts and at lower rates and volumes compared to the same period in 2011 resulting in transmission revenues being $14 million lower than the fourth quarter of 2011. This resulted in a $7 million reduction to the Partnership's equity earnings in the fourth quarter of 2012 compared to the fourth quarter of 2011. Great Lakes has a FERC-approved settlement agreement in place. It can file for new rates at any time, but must file no later than November 1, 2013.

In January 2013, the FERC gave final approval for Northern Border's settlement with shippers on transportation rates and other terms of service. The Northern Border settlement establishes maximum long-term transportation rates and charges on the Northern Border system effective January 1, 2013. Northern Border's reservation rates will be reduced by approximately 11 percent. Based on the current contracted capacity that will be directly impacted by the lower transportation rates and a lower composite depreciation rate, the Partnership's share of equity earnings in 2013 is expected to be reduced by approximately $10 million and the Partnership's cash flows in 2013 are expected to be reduced by approximately $10 million, as compared to 2012. Actual results from Northern Border will depend on a number of other factors.

Partnership Cash Flows

The Partnership uses the non-GAAP financial measures "Partnership cash flows" and "Partnership cash flows before General Partner distributions" as they provide measures of cash generated during the period to evaluate our cash distribution capability. Management also uses these measures as a basis for recommendations to our General Partner's board of directors regarding the distribution to be declared each quarter. Partnership cash flow information is presented to enhance investors' understanding of the way that management analyzes the Partnership's financial performance.

Partnership cash flows include cash distributions from the Partnership's equity investments, Great Lakes, Northern Border, GTN and Bison, plus operating cash flows from the Partnership's wholly-owned subsidiaries, North Baja and Tuscarora, net of Partnership costs and distributions declared to the General Partner.

Partnership cash flows and Partnership cash flows before General Partner distributions are provided as a supplement to GAAP financial results and are not meant to be considered in isolation or as substitutes for financial results prepared in accordance with GAAP.

Fourth Quarter 2012

Partnership cash flows decreased $31 million to $51 million in the fourth quarter of 2012 compared to $82 million in the same period of 2011. This decrease was primarily due to lower cash distributions from GTN and Great Lakes.

In the fourth quarter of 2011, GTN paid a one-time cash distribution of $20 million and GTN and Bison paid distributions of $5 million and $3 million, respectively, related to second quarter 2011 earnings. Great Lakes' fourth quarter 2012 distribution was $7 million lower than the same period last year due to lower transmission revenues.

The Partnership paid distributions of $43 million in the fourth quarter of 2012, an increase of $1 million compared to the same period in 2011 due to an increase of $0.01 per common unit paid beginning in the third quarter of 2012.

Net Income

Fourth Quarter 2012

Net income was $30 million in the fourth quarter of 2012 compared to $38 million in the same period in 2011. This change was primarily due to lower equity earnings from Great Lakes. Partially offsetting this, the Partnership's financial charges were lower in the fourth quarter of 2012 compared to 2011 due to lower levels of debt outstanding and lower interest rates.

Liquidity and Capital Resources

At December 31, 2012, there was $312 million outstanding on the Partnership's $500 million senior revolving credit facility leaving $188 million available for future borrowing. The Partnership was in compliance with the covenants of the credit agreement at December 31, 2012.

Conference Call

Analysts, members of the media, investors and other interested parties are invited to participate in a teleconference by calling 866.226.1792 on Friday, February 8, 2013 at 9 a.m. central standard time (CST)/10 a.m. eastern standard time (EST). Steve Becker, President of the General Partner, will discuss the fourth quarter and full year 2012 financial results and provide an update on the Partnership's business developments, followed by a question and answer session for the investment community and media. Please dial in 10 minutes prior to the start of the call. No pass code is required. A live webcast of the conference call will also be available through the Partnership's website at www.tcpipelineslp.com. Slides for the presentation will be posted on the Partnership's website under "Events and Presentations" prior to the webcast.

A replay of the teleconference will also be available beginning two hours after the conclusion of the call and until 11 p.m. (CST)/midnight (EST) on February 15, 2013, by calling 800.408.3053, then entering pass code 6220304.

TC PipeLines, LP is a Delaware master limited partnership with interests in 5,560 miles of federally regulated U.S. interstate natural gas pipelines which serve markets across the United States and Eastern Canada. This includes significant interests in Great Lakes Gas Transmission Limited Partnership and Northern Border Pipeline Company as well as 25 percent ownership interest in each of Gas Transmission Northwest LLC, and Bison Pipeline LLC. The Partnership also wholly owns North Baja Pipeline, LLC and Tuscarora Gas Transmission Company. The Partnership is managed by its general partner, TC PipeLines GP, Inc., an indirect wholly-owned subsidiary of the Partnership's sponsor, TransCanada Corporation (NYSE: TRP). TC PipeLines GP, Inc. also holds common units of TC PipeLines, LP. For more information about TC PipeLines, LP, visit the Partnership's website at www.tcpipelineslp.com.

Forward-Looking Statements

Statements in this release relating to future plans, projections, events or conditions are "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to a variety of factors that could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, including, without limitation, competitive conditions in the natural gas industry, increases in operating and compliance costs, the outcome of rate proceedings, our ability to identify and complete expansion and growth opportunities, operating hazards beyond our control, availability of capital and other events or developments that the Partnership expects or believes will or may occur in the future. These and other factors that could cause future results to differ materially from those anticipated are discussed in the Partnership's Annual Report on Form 10-K filed with the Securities and Exchange Commission.


                              TC PipeLines, LP                              
                              Financial Summary                             
                                                                            
Consolidated Statement of Income                                            
                                                                            
                                     Three months ended Twelve months ended 
(unaudited)                                December 31,        December 31, 
(millions of dollars except per                                             
 common unit amounts)                    2012      2011      2012      2011 
----------------------------------------------------------------------------
Equity earnings from unconsolidated                                         
 affiliates:                                                                
  Great Lakes                               4        11        27        60 
  Northern Border                          18        19        72        75 
  GTN (a)                                   4         5        19        12 
  Bison (a)                                 3         3        11         7 
Transmission revenues                      16        17        65        70 
Operating expenses                         (5)       (5)      (17)      (15)
General and administrative                 (1)       (1)       (6)       (9)
Depreciation                               (3)       (4)      (11)      (15)
Financial charges and other                (6)       (7)      (23)      (28)
                                    ----------------------------------------
Net income                                 30        38       137       157 
                                    ----------------------------------------
                                                                            
Net income allocation                                                       
Common units                               29        37       134       154 
General partner                             1         1         3         3 
                                    ----------------------------------------
                                           30        38       137       157 
                                    ----------------------------------------
                                                                            
Net income per common unit             $ 0.56    $ 0.70    $ 2.51    $ 3.02 
                                    ----------------------------------------
                                                                            
Weighted average common units                                               
 outstanding (millions)                  53.5      53.5      53.5      51.1 
                                    ----------------------------------------
                                                                            
Common units outstanding, end of the                                        
 period (millions)                       53.5      53.5      53.5      53.5 
                                    ----------------------------------------
                                                                            
(a) 25 percent interests in each of GTN and Bison were acquired in May 2011.
                                                                            
                              TC PipeLines, LP                              
                              Financial Summary                             
                                                                            
Consolidated Condensed Balance Sheet                                        
                                                                            
                                                                            
(unaudited)                                      December 31,   December 31,
(millions of dollars)                                    2012           2011
----------------------------------------------------------------------------
ASSETS                                                                      
Current assets                                             12             38
Investment in unconsolidated affiliates                 1,563          1,610
Other assets                                              423            434
                                              ------------------------------
                                                        1,998          2,082
                                              ------------------------------
                                                                            
----------------------------------------------------------------------------
LIABILITIES AND PARTNERS' EQUITY                                            
Current liabilities                                         8              6
Other liabilities                                           1              1
Long-term debt, including current portion                 688            742
Partners' equity                                        1,301          1,333
                                              ------------------------------
                                                        1,998          2,082
                                              ------------------------------
                                                                            
                              TC PipeLines, LP                              
                              Financial Summary                             
                                                                            
Non-GAAP Measures                                                           
Reconciliation of Net Income to Partnership Cash Flows                      
                                                                            
(unaudited)                          Three months ended Twelve months ended 
                                           December 31,        December 31, 
(millions of dollars except per                                             
 common unit amounts)                    2012      2011      2012      2011 
----------------------------------------------------------------------------
Net income(a)                              30        38       137       157 
Add:                                                                        
Cash distributions from Great                                               
 Lakes(b)                                  10        17        44        73 
Cash distributions from Northern                                            
 Border(b)                                 25        26        96        99 
Cash distributions from GTN(b)(c)           8        33        28        33 
Cash distributions from Bison(b)(c)         4         6        16         6 
Cash flows provided by Other Pipes'                                         
 operating activities                      12        11        49        52 
                                    ----------------------------------------
                                           59        93       233       263 
Less:                                                                       
Equity earnings from unconsolidated                                         
 affiliates                               (29)      (38)     (129)     (154)
Other Pipes' net income                    (8)      (10)      (36)      (41)
                                    ----------------------------------------
                                          (37)      (48)     (165)     (195)
                                    ----------------------------------------
Partnership cash flows before                                               
 General Partner distributions             52        83       205       225 
General Partner distributions(d)           (1)       (1)       (3)       (3)
                                    ----------------------------------------
Partnership cash flows                     51        82       202       222 
                                    ----------------------------------------
Cash distributions declared               (43)      (42)     (170)     (161)
Cash distributions declared per                                             
 common unit(e)                        $ 0.78    $ 0.77    $ 3.11    $ 3.06 
Cash distributions paid                   (43)      (42)     (169)     (155)
Cash distributions paid per common                                          
 unit(e)                               $ 0.78    $ 0.77    $ 3.10    $ 3.04 
                                    ----------------------------------------
                                                                            
                                                                            
(a) 25 percent interests in each of GTN and Bison were acquired in May 2011.
(b) In accordance with the cash distribution policies of the respective     
pipeline systems, cash distributions from Great Lakes, Northern Border, GTN 
and Bison are based on their respective prior quarter financial results.    
(c) Three months ended December 31, 2011 includes $25 million and $3 million
of distributions from GTN and Bison, respectively, related to prior periods.
(d) General Partner distributions represent the cash distributions declared 
to the General Partner with respect to its effective two percent General    
Partner interest plus an amount equal to incentive distributions.           
(e) Cash distributions declared per common unit and cash distributions paid 
per common unit are computed by dividing cash distributions, after the      
deduction of the General Partner's allocation, by the number of common units
outstanding.                                                                
                                                                            
Growth and Maintenance Capital Expenditures(a)(b)                           
                                                                            
                                    Three months ended   Twelve months ended
(unaudited)                               December 31,          December 31,
(millions of dollars)                  2012       2011       2012       2011
----------------------------------------------------------------------------
Maintenance Capital                       9          8         21         17
Growth Capital                            -         10          3         18
                                                                            
(a) Represents the Partnership's share of capital expenditures.             
(b) 25 percent interests in each of GTN and Bison were acquired in May 2011.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists looked at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deliver...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), provided an overview of various initiatives to certify the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldwide re...
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, discussed some of the security challenges of the IoT infrastructure and related how these aspects impact Smart Living. The material was delivered interac...
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The Internet giants are fully embracing AI. All the services they offer to their customers are aimed at drawing a map of the world with the data they get. The AIs from these companies are used to build disruptive approaches that cannot be used by established enterprises, which are threatened by these disruptions. However, most leaders underestimate the effect this will have on their businesses. In his session at 21st Cloud Expo, Rene Buest, Director Market Research & Technology Evangelism at Ara...
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
When growing capacity and power in the data center, the architectural trade-offs between server scale-up vs. scale-out continue to be debated. Both approaches are valid: scale-out adds multiple, smaller servers running in a distributed computing model, while scale-up adds fewer, more powerful servers that are capable of running larger workloads. It’s worth noting that there are additional, unique advantages that scale-up architectures offer. One big advantage is large memory and compute capacity...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA
SYS-CON Events announced today that Ayehu will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara California. Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infras...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business...
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 21st Int\ernational Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their ...
SYS-CON Events announced today that Cloud Academy named "Bronze Sponsor" of 21st International Cloud Expo which will take place October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara, CA. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud com...