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SEC Filings
10-Q
PANHANDLE EASTERN PIPE LINE CO LP filed this Form 10-Q on 05/06/2016
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RESULTS OF OPERATIONS
 
 
Three Months Ended
March 31,
 
 
2016
 
2015
OPERATING REVENUES:
 
 
 
 
Transportation and storage of natural gas
 
$
136

 
$
149

Other
 
5

 
6

Total operating revenues
 
141

 
155

OPERATING EXPENSES:
 
 
 
 

Cost of natural gas and other energy
 
1

 
2

Operating and maintenance
 
50

 
53

General and administrative
 
10

 
12

Depreciation and amortization
 
32

 
35

Total operating expenses
 
93

 
102

OPERATING INCOME
 
48

 
53

OTHER INCOME (EXPENSE):
 
 
 
 

Interest expense, net
 
(13
)
 
(13
)
Equity in earnings of unconsolidated affiliates
 

 
4

Interest income — affiliates
 
16

 

Other, net
 
1

 
(1
)
Total other income (expense), net
 
4

 
(10
)
INCOME BEFORE INCOME TAX EXPENSE
 
52

 
43

Income tax expense
 
16

 
12

NET INCOME
 
$
36

 
$
31

Panhandle natural gas volumes transported (TBtu):
 
 
 
 

PEPL
 
164

 
167

Trunkline
 
133

 
202

Sea Robin
 
25

 
27

Operating Revenues. Operating revenues decreased for the three months ended March 31, 2016 compared to the same period in the prior year primarily due to the transfer of one of the pipelines at Trunkline that was taken out of service in advance of being repurposed from natural gas service to crude oil service.
Equity in earnings of unconsolidated affiliates. Equity in earnings of unconsolidated affiliates decreased for the three months ended March 31, 2016 compared to the same period in the prior year due to the exchange of the Company’s investment in ETP for a note receivable from a subsidiary of ETP effective September 1, 2015. The earnings for the three months ended March 31, 2015 reflects the Company’s earnings related to its investment in ETP.
Interest Income - Affiliates. Interest income from affiliates increased for the three months ended March 31, 2016 compared to the same period in the prior year due to the note receivable with a subsidiary of ETP and a note receivable with ETP, effective September 2015 and February 2016, respectively.
Income Taxes. For the three months ended March 31, 2016, the statutory rate differed from the effective rate primarily due to $2 million of net state income tax adjustments. The effective tax rate exceeded the statutory rate for the three months ended March 31, 2015 primarily due to $4 million of net state income tax benefits related to prior period adjustments.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Item 3, Quantitative and Qualitative Disclosures About Market Risk, has been omitted from this report pursuant to the reduced disclosure format permitted by General Instruction H to Form 10-Q.

10

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