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SEC Filings
10-Q
PANHANDLE EASTERN PIPE LINE CO LP filed this Form 10-Q on 08/09/2018
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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
 
 
Six Months Ended
June 30,
 
 
2018
 
2017
OPERATING REVENUES:
 
 
 
 
Transportation and storage of natural gas
 
$
273

 
$
223

Other
 
10

 
9

Total operating revenues
 
283

 
232

OPERATING EXPENSES:
 
 
 
 

Cost of natural gas and other energy
 
2

 
2

Operating and maintenance
 
101

 
97

General and administrative
 
18

 
17

Depreciation and amortization
 
60

 
63

Total operating expenses
 
181

 
179

OPERATING INCOME
 
102

 
53

OTHER INCOME (EXPENSE):
 
 
 
 

Interest expense, net
 
(18
)
 
(23
)
Interest expense — affiliates
 
(3
)
 

Interest income — affiliates
 

 
8

Other, net
 
2

 
1

INCOME BEFORE INCOME TAX EXPENSE
 
83

 
39

Income tax expense
 
27

 
17

NET INCOME
 
$
56

 
$
22

 
 
 
 
 
Panhandle natural gas volumes transported (TBtu):
 
 
 
 

PEPL
 
401

 
306

Trunkline
 
310

 
250

Sea Robin
 
35

 
37

Operating Revenues. Operating revenues increased for the six months ended June 30, 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 as well as capacity sold at higher rates.
Interest expense, net. Interest expense, net decreased for the six months ended June 30, 2018 compared to the same period in the prior year due to repayment of Panhandle’s $300 million 6.20% Senior Notes in November 2017 and its $400 million 7.00% Senior Notes in June 2018.
Interest expense - affiliates. Interest expense - affiliates increased for the six months ended June 30, 2018 compared to the same period in the prior year primarily due to the issuance of notes payable to a subsidiary of ETP.
Interest income - affiliates. Interest income - affiliates decreased for the six months ended June 30, 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.

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