TC Pipelines L P (NYSE:TCP) Q2 2019 Earnings Conference Call Transcript
Aug 01, 2019 • 05:30 pm ET
Good afternoon, ladies and gentlemen. Welcome to the TC PipeLines, LP 2019 Second Quarter Results Conference Call.
I would now like to turn the meeting over to Ms. Rhonda Amundson. Please go ahead, Ms. Amundson.
Thank you, and good afternoon everyone. Welcome to TC PipeLines' second quarter 2019 conference call. I'm joined today by our President, Nathan Brown; our VP and General Manager, Janine Watson; and our Principal Financial Officer, Chuck Morris.
Please note that a slide presentation will accompany their remarks and is available on our website at tcpipelineslp.com, where it can be found in the Investors section under the heading Events and Presentations. Nathan will begin the call today with a review of TC PipeLines 2019 second quarter results. Janine will provide a commercial update on the partnership's assets and our growth program, following which Chuck will provide a review of our financial results for the second quarter. Nathan will return and wrap up our remarks with a brief discussion of our growth strategies and close with some key takeaways. Following the prepared remarks, I will ask the conference operator to coordinate your questions.
Before we begin, I would like to remind you that certain statements made during this conference call will be forward-looking regarding future events and our future financial performance. All forward-looking statements are based on our beliefs, as well as assumptions made by and information currently available to us. These statements reflect our current views with respect to future events and are subject to various risks, uncertainties and assumptions as discussed in detail in our 2018 10-K as well as our subsequent filings with the Securities and Exchange Commission. If one or more of these risks or uncertainties materialize or if the underlying assumptions prove incorrect, actual results may differ materially from those described in the forward-looking statements.
Please also note that we use the non-GAAP financial measures EBITDA and distributable cash flow during our presentation. EBITDA is an approximate measure of our operating cash flow during the period and reconciles directly to net income. And distributable cash flow is presented to provide a measure of cash generated during the period to evaluate our cash distribution capability. These measures are provided as a supplement to GAAP financial results, and we provide a reconciliation to the most closely related GAAP measures in our SEC filings.
With that, I'll turn the call over to Nathan.
Thanks, Rhonda. Good afternoon, everyone, and thanks for joining us today. As outlined this afternoon in our news release and looking at Slide 4, I'm pleased to report TC PipeLines had a very good quarter with solid results and our portfolio of pipeline assets continued to perform as expected. We generated $55 million in net income during the second quarter of 2019, 25% lower than the $73 million we earned in the same period in 2018, largely due to the partial buyout of Bison's contracts in late 2018 together with lower rates on many of our pipelines following the 2018 FERC actions.