Pipeline operator TC PipeLines LP TCP reported fourth-quarter 2016 earnings per unit (EPU) of 70 cents that missed the Zacks Consensus Estimate of 73 cents. Also, the figure deteriorated from 79 cents per unit recorded in the year-ago quarter.
Quarterly transmission revenues of $91 million missed the Zacks Consensus Estimate of $132 million. Nonetheless, the top line improved 2.2% from the year-earlier quarter level.
Distribution & Cash Flow
Late last month, TC PipeLines announced fourth-quarter 2016 cash distribution of 94 cents per unit ($3.71 per unit annualized), up 5.7% year over year. The distribution remained unchanged from the amount paid in third-quarter 2016.
The partnership's total distributable cash flow declined about 9.5% year over year to $67 million.
TC PipeLines, LP Price, Consensus and EPS Surprise
TC PipeLines distributed $66 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 $5 million from equity investment, narrower than the prior-year quarter loss of $18 million.
Northern Border Pipeline: Equity loss at this pipeline totaled $17 million, wider than the prior-year quarter loss of $16 million.
Liquidity
As of Dec 31, 2016, TC PipeLines had long-term debt (excluding current portion) of $1,835 million, which represents a debt-to-capitalization ratio of 61.6%.
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 Sunrun Inc. RUN, Delek Logistics Partners, L.P. DKL and Ultra Petroleum Corp. UPLMQ. 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, Sunrun posted an average positive earnings surprise of 134.7%.
In the second last quarter, Delek Logistics Partners posted a positive earnings surprise of 13.8%.
In the last four quarters, Ultra Petroleum posted a positive earnings surprise of 93.7%.
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