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SEC Filings
10-Q
PANHANDLE EASTERN PIPE LINE CO LP filed this Form 10-Q on 05/10/2018
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
(Tabular dollar amounts are in millions)
The information in Item 2 has been prepared pursuant to the reduced disclosure format permitted by General Instruction H to Form 10-Q. Accordingly, this Item 2 includes only management’s narrative analysis of the results of operations and should be read in conjunction with (i) our historical consolidated financial statements and accompanying notes thereto included elsewhere in this Quarterly Report on Form 10-Q and (ii) our Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on February 23, 2018.
RESULTS OF OPERATIONS
 
 
Three Months Ended
March 31,
 
 
2018
 
2017
OPERATING REVENUES:
 
 
 
 
Transportation and storage of natural gas
 
$
142

 
$
123

Other
 
7

 
5

Total operating revenues
 
149

 
128

OPERATING EXPENSES:
 
 
 
 

Cost of natural gas and other energy
 
1

 
1

Operating and maintenance
 
47

 
51

General and administrative
 
9

 
10

Depreciation and amortization
 
30

 
31

Total operating expenses
 
87

 
93

OPERATING INCOME
 
62

 
35

OTHER INCOME (EXPENSE):
 
 
 
 

Interest expense, net
 
(11
)
 
(12
)
Interest income — affiliates
 

 
4

Other, net
 
1

 
(1
)
INCOME BEFORE INCOME TAX EXPENSE
 
52

 
26

Income tax expense
 
18

 
12

NET INCOME
 
$
34

 
$
14

 
 
 
 
 
Panhandle natural gas volumes transported (TBtu):
 
 
 
 

PEPL
 
196

 
160

Trunkline
 
149

 
129

Sea Robin
 
16

 
22

Operating Revenues. Operating revenues increased for the three months ended March 31, 2018 compared to the same period in the prior year on the Panhandle and Trunkline pipelines due to higher customer demand driven by colder weather.
Operating Expenses. Operating expenses decreased for the three months ended March 31, 2018 compared to the same period in the prior year due to lower allocated costs and system gas activity.
Interest income - affiliates. Interest income - affiliates decreased for the three months ended March 31, 2018 compared to the same period in the prior year primarily due to the settlement of a note receivable from a subsidiary of ETP in November 2017.
Income Taxes. The change in income tax expense for the three months ended March 31, 2018 compared to the same period in the prior year was primarily due to an increase in income before income tax expense offset by a reduction in the federal corporate income rate per the “Tax Cuts and Jobs Act.”


11

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