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TC PipeLines, LP Declares Quarterly Cash Distribution; Announces First Quarter Results
CALGARY, Alberta - April 21, 2003 - (Nasdaq: TCLP) - TC PipeLines, LP (the Partnership) today announced that the board of directors of its general partner has declared the Partnership's first quarter 2003 cash distribution in the amount of US$0.525 per unit. The first quarter distribution will be paid on May 15, 2003 to unitholders of record as of April 30, 2003.
The Partnership also reported first quarter 2003 net income of US$11.9 million or US$0.66 per unit, equaling net income reported for first quarter 2002.
The Partnership's first quarter 2003 cash generated from operations amounted to US$13.5 million, a 10% increase compared to first quarter 2002 cash generated from operations of US$12.3 million. The increase in cash flow reflects higher cash distributions received from Northern Border Pipeline and Tuscarora.
Financial Highlights
|
Three months ended March 31 |
|
2003 |
2002 |
| Cash Distributions Declared Per Unit (1) |
$0.525 |
$0.50 |
| Net Income |
11.9 |
11.9 |
| Per unit (2) |
$0.66 |
$0.66 |
| Cash Generated from Operations |
13.5 |
12.3 |
| Units Outstanding (millions) |
17.5 |
17.5 |
Net Income
The Partnership reported first quarter 2003 net income of US$11.9 million or US$0.66 per unit, equaling net income reported for first quarter 2002.
Equity income from Northern Border Pipeline amounted to US$11.0 million in first quarter 2003 compared to US$11.3 million for first quarter 2002. In first quarter 2003, Northern Border Pipeline incurred higher expenses related to electricity costs and taxes other than income compared to first quarter 2002. These decreases in Northern Border Pipeline's earnings were partially offset by lower interest expense, resulting from lower average interest rates, and higher revenues in first quarter 2003. Northern Border Pipeline's first quarter 2002 revenues were lower due to US$1.8 million of uncollected revenues (TC PipeLines' share is US$0.5 million) associated with the transportation capacity held by Enron North America (ENA), an Enron Corp. that filed for bankruptcy protection in December 2001. ENA no longer holds contracts for transportation capacity on the Northern Border pipeline system.
Equity income from Tuscarora amounted to US$1.3 million in first quarter 2003 compared to US$1.1 million for first quarter 2002. The increase is primarily due to incremental revenues from Tuscarora's expansion facilities, which were placed into service on December 1, 2002, partially offset by increased operations and maintenance expense and depreciation expense related to the new facilities.
The Partnership's first quarter 2003 general and administrative expenses of US$0.4 million were unchanged from first quarter 2002. Financial charges were less than US$0.1 million for first quarter 2003 compared to US$0.1 million for first quarter 2002, primarily due to a decrease in the Partnership's average debt balance outstanding.
Cash Flow
The Partnership reported first quarter 2003 cash generated from operations of US$13.5 million compared to US$12.3 million for first quarter 2002, reflecting higher cash distributions from both Northern Border Pipeline and Tuscarora. In first quarter 2003, the Partnership received a cash distribution from Northern Border Pipeline amounting to US$12.5 million compared to US$11.8 million for first quarter 2002. The increase is primarily due to lower interest expense incurred by Northern Border Pipeline. The Partnership also received a cash distribution from Tuscarora in first quarter 2003 amounting to US$1.5 million compared to US$1.0 million for first quarter 2002. The increase reflects Tuscarora's incremental cash inflows from new transportation contracts, including those related to Tuscarora's expansion facilities.
During first quarter 2003, the Partnership used US$4.1 million of its cash from operations to fund a portion of Tuscarora's expansion, which was partially offset by a US$0.8 million return of capital from Tuscarora. The Partnership paid an aggregate US$9.6 million of cash distributions to unitholders and its general partner, the equivalent of US$0.525 per unit, in first quarter 2003, compared to US$9.0 million, the equivalent of US$0.50 per unit, in first quarter 2002. Also in first quarter 2003, the Partnership made a US$3.0 million principal repayment on its revolving credit facility, reducing its debt outstanding to US$8.5 million at March 31, 2003.
Conference Call
The Partnership will hold a conference call Tuesday, April 22, 2003 at 4:00 p.m. (eastern). During this call, TC PipeLines, LP's senior executives will review the Partnership's first quarter 2003 results and discuss general developments and issues concerning the Partnership. Those interested in listening to the call may dial 1-800-273-9672. A replay of the conference call will also be available after the call until April 29, 2003 by dialing 1-800-408-3053 then entering passcode 1386508.
A live web cast of the conference call will also be available through the Partnership's website at www.tcpipelineslp.com. An audio replay of the call will be available on the website.
TC PipeLines, LP is a publicly held master limited partnership. It owns a 30% interest in Northern Border Pipeline Company, a Texas general partnership, and a 49% interest in Tuscarora Gas Transmission Company, a Nevada general partnership. Northern Border Pipeline, which is owned 70% by Northern Border Partners, L.P., a publicly traded master limited partnership controlled by affiliates of Enron Corp., owns a 1,249-mile United States interstate pipeline system that transports natural gas from the Montana-Saskatchewan border to markets in the midwestern United States. Tuscarora owns a 240-mile United States interstate pipeline system that transports natural gas from Oregon, where it interconnects with facilities of PG&E National Energy Group, Gas Transmission Northwest, to northern Nevada. TC PipeLines, LP is managed by its general partner, TC PipeLines GP, Inc., a wholly owned subsidiary of TransCanada PipeLines Limited. Subsidiaries of TransCanada also hold common and subordinated units of the Partnership representing an aggregate 31.41% limited partner interest in the Partnership. TransCanada also holds a minority general partner interest in Northern Border Partners, L.P. Common units of TC PipeLines, LP are quoted on the Nasdaq Stock Market and trade under the symbol "TCLP". For more information about TC PipeLines, LP, visit the Partnership's website at www.tcpipelineslp.com.
Click here to view TC PipeLines, LP's First Quarter Financial Highlights
Media Inquiries:
Hejdi Feick / Kurt Kadatz
(403) 920-7859
Unitholder and Analyst Inquiries:
David Moneta / Debbie Stein
Toll-free (877) 290-2772
investor_relations@tcpipelineslp.com
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