Columbia Pipeline Partners LP (CPPL) has reported its financial and operating results for 3Q16. The company reported net income attributable to limited partners of US$2.9 million, or US$0.05 per common unit, compared with net income attributable to limited partners of US$22.0 million, or US$0.22 per common unit in 3Q15.
CPPL reported net cash flows from operating activities of US$82.3 million, this compares with US$114.0 million in 3Q15. Additionally, the company reported net cash flows used for investing activities and net cash flows from (used for) financing activities of US$473.0 million and US$344.1 million, respectively, compared to US$41.7 million and US$151.5 million, respectively, in the prior-year period.
Its adjusted EBITDA of US$28.0 million for 3Q16 can be compared to with US$27.5 million in 3Q15. CPPL generated distributable cash flow of US$19.8 million for 3Q16, compared with US$20.8 million in the 3Q15. The company declared a distribution of US$0.1975 per unit on 1 November.
As previously announced on 17 March, Columbia Pipeline Group, Inc. (CPG) entered into an agreement to be acquired by a subsidiary of TransCanada Corporation (TransCanada).
Therefore, effective of 1 July, CPG became an indirect, wholly owned subsidiary of TransCanada. Upon completion of the transaction, TransCanada now owns the general partner of the CPPL.
3Q16 operating results
A comparison of operating results for 3Q16 to 3Q15 is summarised below.
Operating revenues increased by US$6.5 million. This increase was primarily due to higher demand margin revenue from growth projects placed into service, increased mineral rights royalty revenue and higher shorter term transportation services. These increases were partially offset by a decrease in trackers, which are offset in expense.
Operating expenses increased by US$134.7 million. The increase was primarily due to increased costs relating to the 1 July merger into the TransCanada group of companies, decreased gains on the conveyances of mineral interests, higher impairment charges, increased depreciation and amortisation, higher employee and administrative expenses, along with increased outside service costs. These changes were partially offset by a decrease in trackers, which are offset in revenue.
Equity earnings increased by US$0.7 million, primarily due to earnings generated by Millennium Pipeline Company, L.L.C.
Other income (deductions) for 3Q16 increased income by US$5.6 million, compared with an increase in income of US$1.8 million in the same period in 2015. The variance was primarily due to an increase in allowance for funds used during construction (AFUDC), partially offset by higher interest expense related to increased short-term borrowings.
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