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SEC Filings
10-K
PANHANDLE EASTERN PIPE LINE CO LP filed this Form 10-K on 02/23/2018
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Results of Operations
 
Years Ended December 31,
 
2017
 
2016
OPERATING REVENUES:
 
 
 
Transportation and storage of natural gas
$
460

 
$
494

Other
20

 
20

Total operating revenues (1)
480

 
514

OPERATING EXPENSES:
 
 
 
Cost of natural gas and other energy
3

 
2

Operating and maintenance
199

 
209

General and administrative
36

 
39

Depreciation and amortization
127

 
130

Impairment losses
389

 
771

Total operating expenses
754

 
1,151

OPERATING LOSS
(274
)
 
(637
)
OTHER INCOME (EXPENSE):
 
 
 
Interest expense, net
(46
)
 
(49
)
Interest income - affiliates
10

 
26

Other, net
2

 
1

Total other expense, net
(34
)
 
(22
)
LOSS BEFORE INCOME TAX BENEFIT
(308
)
 
(659
)
Income tax benefit
(263
)
 
(13
)
NET LOSS
$
(45
)
 
$
(646
)
Natural gas volumes transported (TBtu): (2)
 
 
 
PEPL
636

 
609

Trunkline
525

 
480

Sea Robin
73

 
85

(1) 
Reservation revenues comprised 91% and 89% of total operating revenues for the years ended December 31, 2017 and 2016, respectively.
(2) 
Includes transportation deliveries made throughout the Company’s pipeline network.
The following is a discussion of the significant items and variances impacting the Company’s net income during the periods presented above:
Operating Revenues. Operating revenues decreased for the year ended December 31, 2017 compared to the prior year on Panhandle and Trunkline due to lower customer demand driven by weak spreads and mild weather and on Sea Robin due to producer maintenance and production declines.
Impairment Losses. The Company recorded $389 million impairment losses for the year ended December 31, 2017, which is comprised of $262 million goodwill impairment related to Trunkline primarily due to decreases in projected future revenues and cash flows and $127 million fixed asset impairment for Sea Robin due to lower utilization and expected further decrease in projected future cash flows. For the year ended December 31, 2016, the Company recorded a $133 million impairment related to Sea Robin property, plant and equipment and goodwill impairments of $590 million and $48 million related to PEPL and Sea Robin, respectively, primarily due to decreases in projected future revenues and cash flows driven by declines in commodity prices and changes in the markets that these assets serve.
Interest income - affiliates. The decrease for the year ended December 31, 2017 compared to the prior year is primarily due to the settlement of a note receivable from a subsidiary of ETP in August of 2016.
Income Taxes. The change in the effective rate for the year ended December 31, 2017 was primarily due to the reduction in the federal corporate income rate per the “Tax Cuts and Jobs Act,” as discussed in Note 2 to our consolidated financial

17

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