TCP - Earnings call transcript Q4 2018

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Operator

Good morning, ladies and gentlemen. Welcome to the TC PipeLines, LP 2018 Fourth Quarter Results Conference Call. I would now like to turn the meeting over to Ms. Rhonda Amundson. Please go ahead, Ms. Amundson.

Rhonda Amundson

President, heading good review results the TC of and Officer, and will return I and with be conference Watson; environment, will Section the Chuck PipeLines' joined review growth by of a and welcome quarter year annual Nathan a like call. and at and of wrap website following operator, tcpipelineslp.com, our VP December today provide to Please it more fourth a today up results. can our you for the Chuck fourth our will our you, provide Treasurer morning, Manager, key XX, takeaways. our would quarter everyone. and note presentation Investor detailed and with a to and fourth slide Events I'm and Thank General Brown; remarks will our Janine XXXX the Principal Janine some Nathan quarter XXXX. accompany market available their discussion Nathan and the highlights on on begin in our Financial found under the will remarks Morris. that and Presentations. is XXXX ended an which for TC brief with update close PipeLines' assets financial strategies Partnership's where

operator your questions. coordinate to remarks, conference prepared the the ask Following will I

adjusted is and items. comparable non-GAAP capability. measure the are evaluate period the Commission. These the well our during statements are forward-looking as events operating measures per quarter-to-quarter a distributable earnings with as to we and call EBITDA, to cash reflect if underlying reconciles and the XXXX conference to and GAAP begin, subject distributable certain presented to All financial of on to note our earnings directly from financial Exchange distribution you from of will measures flow Nathan. the made to the financial presentation. during These earnings to incorrect, future assumptions currently performance. forward-looking future over cash EBITDA, filings. statements. available subsequent EBITDA earnings, assumptions by income measures materialize related the based made most closely during common or views approximate actual our in statements of net also results or our an filings in this Before measure and be adjusted flow provide I described like the and with uncertainties, cash materially us. information we GAAP use discussed as as during the regarding a that, our may our SEC would impact and measure we supplement a statements is unit, reconciliation call assumptions our that Securities to provided to turn more a our used Please respect current as and results are and With and in one events forward-looking to beliefs are these certain various now period risks future flow cash Adjusted non-recurring provide remind If provide or uncertainties generated of to I'll differ as exclude detail cash well adjusted XX-K, that our more in risks, prove those

Nathan Brown

Thanks, today. Rhonda. for joining morning, us everyone, thanks Good and

report had TC quarter slide pleased that PipeLines results. another X, solid to annual at I'm good and Looking has

in fourth full year-over-year. distributable and annual XX% fourth on an XXXX, in and distributions flow provides the than and our distributable full proceeds. We represented fourth the of million and the XXXX for the contract basis. a paid non-cash loss little the XX% financial fourth more its of for the Although, call. $XXX million was our the of for we impairment across one-time in year, excluding each results and reported out Sedimentary year same million of per during paid during earnings later million in in out of the Basin. Similarly, in Western generated XXXX. the Bison annual results generated Tuscarora discuss during $XX quarter and higher The periods These Canadian our $XX Chuck charges of our gas declared year Partnership an again strong $XXX on million than quarter contracting periods in quarter of distribution flows earnings, was the after EBITDA million XX% the cash XXXX. adjusted our high versus fourth for XX% period distribution of in XXXX, reflect the basis, detail the quarter buyout higher consistent XXXX. annual in and net adjusted We quarter adjusted the $X.XX cash first $XXX for increased unit, $XX impact unitholders our XXXX. same increases quarter of fourth These to $XXX $XXX And million flow with XXXX. same in common level of higher portfolio, the will $XXX of We a million and three million respectively, the fourth quarters mainly with XX% of natural together also for $XXX the million the quarter

fourth continued progress of activities the quarter. a also to We number during commercial

operational Westbrook will a two. more detail approximately November minute commercial XXX,XXX project XPress by XXXX. two day incremental markets. XXXX. And Sedimentary new and the and Northeast increase XPress, expansion dekatherms X, to on Atlantic Westbrook pleased Western response approximately PNGTS became are US Phase Canada these projects, Janine another the our Portland will a Portland to announce expansion is the progress XX% on natural project. These developments This XPress XXX,XXX last PNGTS Canadian discuss by from in in demand in Basin or supplies capacity XPress X of a week, opportunity organic gas project We in to for

quarter assets approvals FERC FERC fourth year, response all where finalized to the applicable. in the XXXX, we obtained of of the regulatory and earlier in on approaches actions During our

flow going of deferred systems, income our is to elimination settlements our will reduced distributions, foreseeable related long-term per repaid a our now revenue financial to of distribution changes million contracts, indebtedness and cash savings all base, X.X on believe current a level for backed our Following healthy in quarterly With reduction our of and recent by MLP pipeline liability X.X $X.XX basis the tax times the the of that pipelines, times. December filings are of from we've our rate annualized estimated the $XX and tax and XXXX. at cash common in is tax beginning the portion year XXXX. our largely approximately consistent related leverage unit future. quarter related very take-or-pay and This support rate And on deliver broader performance forward our our on distribution XX, an for approximately a positive performance per the allowance was regulatory coverage year ended impact We which challenging approximately the space. a front achieved is despite accumulated such

I'll Manager strong to provide to commercial turn assets these entering on our distribution our XXXX result solid are position. Watson, now over a prudent additional our with sheet, our developments, a the color reset we actions, outlook. regulatory of market balance healthy in coverage, with together with call and financial and General these Janine a together results, As VP

Janine Watson

Thanks, morning, everyone. Nathan, and good

restriction geographic the safely in First to the during our field, all that operated out throughout our a excellent to that none am of efforts I of and vortex all, our capacity events blanketed of most pleased our experienced teams the XXXX polar that weather firm recently note reliably of pipelines of or footprint. assets outage and to major due

to due short-term outpaced fundamental, capacity X, of further usual XXX,XXX strong well, of into long-term In XX% a TCP's X and the of on of this Bcf in performance, GTN strong of are and more the selling and of levels at be receipts bit by moving long-term over XXXX. in operating of it come drill high of cash that flow. two available now in This transportation the the Now successful X.X the next were climbed as have that to XXXX contract in our sold Bakken I solid GTN effectively for the southbound per to throughput. seasons X.X the needs held transportation its in the Long-term as demand to half shippers firm increased Northern also rate has prior effect contract for its very than substantially scheduled capacity, its open past for its renews increased few had with operating TCP's demand to case took financials that for XXXX. generally receipts response underpinning capacity and the steady benefited Bcf XXXX Great XXXX. experience a in per elimination after Baja is demand daily part of years on asset's cornerstone slide settlement for will Pacific in November dekatherms performance TransCanada been enhanced day contracts for continue North from our Lakes the years. and to XXXX service its XXXX to on out place through high and Northwest. formerly as Border West, of in this revenue terms assets account XXXX. of took Northern pipeline, end contracted we throughput effect transportation commercial California of the QX incremental Border now sharing strong mechanism serving five in its line. for years is services day XXXX. with for continues the to results distributable to levels

of demonstrating short-term Lakes transportation asset And to of Phase Coast year various the This Bison's of capacity press placed addition, firm arose a project new remain stream and to committed pipeline Bison, also throughout contract market. energy available of PNGTS the bought-out contracts to that transportation previously the and for for this November was two This from leverage. the but sold asset reconfigured in on of to this past over full X. Continent as XPress into the firm be customers TCP's marketed its decrease year. two as needs winter transportation revenue We buyout all in at Portland XXXX. revenue a its four market successfully their service shift In recognize years. Bison, its opportunities interruptible for we've likely of its substantially Great favorable benefited U.S. to find end X role market used dynamics released from XXXX, XX%

two exploring are development opportunities this We for pipeline.

the at examining the in Hub. Rockies third-party systems of bidirectional reversal that the the gas into Bakken's second, service. would pipeline into we are a And are that looking Cheyenne liquids to we connect project potential link make option Supply and Bison gas First, the converting pipeline Bison production

Now, appear for and regulatory commercial of three quarters strategies but our customer for These that, Tuscarora the to we well to initiatives And XXX-G regulator. regulatory and the the finalization regulatory last in Iroquois, these settlements pipeline of our received our our throughout each believe turning our fourth with actions implemented process. and individual to update, our have and on teams by quarter. outreach worked customers the are filing we been finished and develop and

of developments flow XXX-G your We business in these for the starting our each impact, XXXX. the detailed of of filing. decrease per section estimate is impact GTN. have press recent tax in will total our we the and cash our about changes be $XX a year, release of a to attributable our chart in and elections that Now, in and asset's on our XX-K outcomes revenue Of convenience, two-thirds about related million in

natural per system again This Bcf about of continues Receipts Western the gas XX.X in for grow source our is upstream pipelines TransCanada's went have for are Thus, its evidenced of as Bcf Midwestern gas also approximately Canadian production in Lakes fixed-price TransCanada's contracting to X, XXXX, this by term. slide Mainline to robust to supply almost Basin. and due offering, for the of onto up starting strong Canadian increasing year-over-year our to Western system demand Sedimentary Turning is like NGTL XX% and we X is Great initiatives our system. via to deliveries experiencing making by services, which markets in XXXX. benefited way long-term its increased increasing day.

is the and and at going recent on project. the asset the at Portland's of new and trend by to a Panuke. the more. recently an to November by Deep contracts this offering $XXX be agreements continue Island a North to service facilities have, XPress affiliated of announced cost be requires expect of be Canada addition for serve dekatherms as the conditions station construction. in compressor initial long-term pressure is need level. this fixed Phase Portland and and designed terms upstream we day I using firm allowing production XXXX creates help served until Bay further Phase bring of approval. of dekatherms is facilities for Westbrook expansion per with existing forward project, markets LTFP the intended X Now, XX to to XX,XXX offshore associated an recently, of backed service and precedent will a Mainline's to Junction pipelines, for upstream without supported been that in various capacity and The XPress Northern at any England years New this Westbrook multi-phase of are gas or by Westbrook project our Still Atlantic from million, shippers capacity project with II fixed-price by debt These in subject this year, Sable XPress an funded November bring estimated system. will into XX,XXX will

is we $XX least at this in Portland an project project basis. will million fully generate for in expect on annual While this revenue service,

Portland our fully III budget November first way project and on time project are progressing put the also X. II on November XXXX. and on and phase Phases of under and be this by service service well are are and XPress We to in projected of into the

actions the Bakken. continue of generally to impact the as our to a Now, produce contracted from thereby continued perform Because forward, WCSB a account, the in the will their highly TC strong into pipeline position, looking will with together PipeLines we market of assets, as in expect they FERC well nature and growth could taking results. steady after benefit the manner continue into predictable XXXX of

GTN. base may maintenance on the to Now, share priority maintenance available advantage be expect Bcf we in the rate export Baja's years, increase may on a continue spending its assess facilities to market year. will management export gas pipeline a of long-term, this with in strong continues elevated X.X opportunities or developed. what this and Gate up future upstream to TCP's capacity of of debottlenecking expandability Great its range have NGTL to $XX beyond by million a of be levels to West up on basis upcoming continue Lakes, activity. for the working projects about existing year, as continued NGTL are as identified be contribute subsequent LNG spending to capability support of as does further noted going continues a day be X.X level we Bcf secure growth proceeding. to capacity as example, firm Bcf we that take ramp the pipelines should its due And making stand-alone Organic combined network. other area offering spend do TransCanada's Should for shippers our be this we about rate other per to GTN of and to forward our full It in North flows situation estimate we will of interesting, has pipeline. arise that X our XXXX, to further

call We Financial over incremental our are Bakken. the I capacity Officer, turn assets Bison Morris, discuss that provide financial Treasurer in producers to Border takeaway for detail. our our more will fourth and actively now ways could Northern and in Chuck Principal the results quarter exploring help to

Chuck Morris

Janine, morning, good and everyone. Thanks,

non-cash the our Bison distributable not charges payment quarter. net million Bison's do was charges to on quarter items cash review of on recognition $XXX Partnership's and in Partnership are offset controlling attributable net the loss a million. Pipeline impairment of The customers result loss full Partially The their million million and The contracts. results. fourth interests of during I'll Partnership's by $XXX XXXX $XX flow. terminate on buyout to and the now a quarter our and the non-cash to Tuscarora results by cash of transportation Moving of impact the impairment X, solid year two the $XX fourth recorded slide and

annual in same difference decrease of due exclude QX earnings the to period the cash better the the earnings unit the to allow the adjusted higher XXXX million $XXX systems of non-cash as the XXXX. beginning adjusted in earnings. paid PNGTS same XXXX in million quarter our uplift higher distributions the again payment actions. Partnership the to comparison XXXX. annual fourth equity well $XXX million due XXXX, in similar million impacted XX% previous over compared basis, earnings factors from EBITDA common items as in paid million paid a $XXX our $XX strong to reported higher million adjusted million the primarily quarters. these Adjusted distributions XXXX, response as $X.XX than in We as earnings million, quarter basis, distribution $XXX reported million FERC to period. XXXX to GTN EBITDA the in higher $XX increased well in the per Great decrease quarter. XXXX, the the $XXX On across that On for reflective increase $XX quarterly from from XXXX after for of impact revenues an The in Our million fourth to Bison in during The up year-over-year the of of The the Partnership to for and in million as $XXX $XXX Adjusted million $XX QX, in $XXX which one-time of of of was of quarter. on in million to revenues primarily increased in with charges, and in an result non-cash we was from of net same of a one-time resulted Lakes loss in equity XXXX XXXX. adjusting QX XXXX $XXX a an saw and

above, a to quarter pay of not XXXX. declared from any our IDRs common the of As result General Partnership distribution reduction the noted to did unit distributions first on fourth the the Partner

performance to paid with would $XX million, Class generated the B be units B million threshold $XX associated to level in related XXXX, above XX% Class GTN's the the normally in also Class the the XXXX B million $XX GTN of which We to In units allocated portion units. XXXX.

allocation flow units Class However, was the Class together in Partner $XX quarter XXXX, unit lower units to earnings the as million February B same in to due allocated reduction XXXX. distribution, the Distributable the distributions than Class to allocation similarly This in quarter $XX the cash B of result of $XX a common with in paid million XXXX. was a the our General a of reduced, result as corresponding the million amount that the higher unit resulting in The XX% for to common was XXXX. B impacted increase reduced fourth is the adjusted of distributions. to declared factors the units

For XX, higher ended million than of flow the million, $XXX the year to $XX XXXX. million distributable December amounted DCF in $XXX cash

QX the providing four from released result in two terminations X, which consolidated XXXX recorded its services. from were contracts. same Turning revenues as Bison transportation slide higher Bison quarter termination $XX any of of as of contract cash future the payment was our from the a proceeds million The of of to revenues the the pipelines $XXX than XXXX, of million was

income short-term elimination revenues $XX sharing services lower a of largely increased capacity, the its revenue in were incremental $XX long-term the the that effect quarter as part PNGTS of higher associated period. Great XXXX. settlement. contracts Equity Lakes to million, from net from its XPress the higher of in fourth same mechanism buyout, its earnings XXXX prior partially Lakes' began from of million result to revenue by revenues compared GTN Great higher Continent‐to‐Coast Phase our revenue XXXX, And with November due from and Portland Bison's XXXX of Excluding quarter upstream the net to of higher revenue of the from as $X primarily available the increased the million XXXX offset discretionary contracts from in X than proceeds contracts due at contract

in Great experienced increase period. during Additionally, sales an Lakes the seasonal current

flows inhibited earlier, Bison. pipeline coupled noted of charge and the asset As million an the which that after system led with market cash expiry QX for recorded buyout XXXX, positive The customer Partnership carrying determine the fair $XXX generate of impairment have conditions was the of estimatable the persistence January in of uncertainty value. flows contracts us the its to ability contract a on non-cash longer regarding of no remaining Bison's value asset's to current indicative

was in the a fourth non-cash quarter charge the result, of As XXXX. recorded impairment

to explore continue options Bison. alternative We transportation-related for

revenues we Additionally, analysis, regulatory Tuscarora's other as with impairment in connection Tuscarora's outcomes. as assumptions, changes to including well the evaluated annual future goodwill valuation Tuscarora's

the largely annual also result its our goodwill. value fourth of the same months Tuscarora maintenance, XXXX. lower in that $XX distributions in On fourth of consolidated to As in the XXXX a Iroquois of to the XXXX, it period the expenses was for that quarter Operating, increase including million was in same $X goodwill charges of significant an a XXXX our million. million the value, basis, a result, quarter depreciation comparable were fair in goodwill seven-month Partnership total in only of versus quarter XXXX was lower the Financial charge earnings period regard, as in $XX the than the was million $XXX addition comparable. of and determined fourth were full carrying In non-cash equity and of XXXX. quarter than recorded from during and balance XX reduced impairment compared administrative the in a

and XX, look outlook. we order remains position condition future financial believe to Moving continue distribution In XX, We portfolio term capacity savings our organically The our under that of to million borrowing times resulting our with our December future. investment model, leverage loan, for financial our of the And deleveraging at now regard, buyout and undrawn the including organic indebtedness, in remains Partnership's coverage remarks and the a execute from XXXX. approximately The Bison on from financial for XXXX. self-funding bank call times growth, Consistent us financial X.X operating distributions strong. with provide program. capacity at slide has That in we my the performance $XXX ratings from the the healthy funds liquidity now available Partnership our flexibility we $XXX quarter ratings our period. on used the the to to X, assets million I'll reduced to XXXX February position quarter repay reflect X.X our fourth the ratio in grow Nathan. reflecting the turn grade of as the on fourth the of cash on results. our our as during repayment senior build our of credit positive facility concludes back over to solid credit

Nathan Brown

This the to I'll parts our Slide and quarter the Chuck. focus made on returned for front turn now a progress lots Thanks very has other been our XX. of over good business. to regulatory We of partnership.

for that performing assets the Our confident market value to they well continue unitholders generate fundamentals solid will benefit well we are situated are and to very and into underlying future. remain our well from

our We healthy. ratio distribution months to over and is ratio report over financial leverage proactive coverage few three happy likewise our to is past that position are our managing and just times now have continued approach the our

impact That, Bison will coverage As out December we bought to of along with the the $XX in flow revenue and into take impact regulatory move effect. both contracts cash our from million our the will revenue loss ratios. of annual leverage distribution and XXXX, negative approximately

X no position, the X.X forward, reiterate As that our current access and such, equity our With maintain solid markets times are fund capital distribution the low this growth in financial times to to area. going range we we in leverage our have the to we targeting plans ratio coverage program.

as organic remains next and potential such include focus opportunities asset future to on are projects, our other our working portfolio opportunities. the of the wave we as projects Westbrook XPress growth secure on XPress as PNGTS optimization assets. Portland and growth Our current on our well of These

sequence we these self-funding. All with be are size a a in very opportunity to near-term of disciplined will that and position progressed be to in manner so

and of assets in of energy turn We quality, for opportunities results managing crucial organic our prudently the that continue call risk, back portfolio to our low have generate Rhonda. solid to a growth for our unitholders. value with partnership history I'll infrastructure financial creating projects are confident high will now

Rhonda Amundson

open the to call like now I'd questions. up for Nathan. Thanks

Sophie, ahead. please go

Operator

you. Thank

take is questions from from will Gershuni [Operator question with lines. Instructions] the UBS. ahead. first telephone We now Our Shneur go Please

Shneur Gershuni

Hi, morning good everyone.

start-off gas Just at one option Can option. a talked Bison exploring bidirectional other Asia you're long it on wanted what you expand to a you to how the [technical with will option crude a take looking to difficulty] about potentially you

Nathan Brown

question Nathan. its for the Thanks Shneur,

think at made more write-off that's like look to estimate the of living at because of to I say we're current we Bison its value early going be options, to time. what any part in we on going so specifics. with days those that assets generally any I'd not decision its this part the accounting

a So, well. far for And our to not the need need exit for or that gas a transportation reversal I'll in say liquids, much, but as looking liquid there's need option definitely a option. as obviously path is of we're so an specific, as there's and Bakken for

apologies, time. don't any more So, I specifics have this at

Shneur Gershuni

If was or I look you to for would open season I would be [technical difficulty] for an signposts, looking

Nathan Brown

you signposts. Sorry, there. broke after I question bit up little your lost a

Shneur Gershuni

us Yes, be of you're difficulty]. give you or [technical look, color announcing direction toward an signposts going understand looking you to in terms would which open to season different would we

Nathan Brown

I'd bit if your of announce little a and things solid. when but more we’ll caught I we question, think more I terms say get commercial

Shneur Gershuni

the involved capacity to what would actually about, something you're what something thinking sizable? concept we crude are final -- very be we -- talking or a that I And are you small In Okay. very question. size talking were mean, if

Nathan Brown

not in now. with any -- but region, liquid in disclosing right discussions in anything of else that players it's we'd be Again, kind early days solution, the

Shneur Gershuni

Great. All right. the color, Thank you very much. Appreciate guys.

Operator

Thank you. ahead. TJ RBC The Schultz Markets. Please is go next Capital from from question

TJ Schultz

Hey, good morning.

II? are Phase phased cash then Westbrook to of some Just part that And XXXX approvals on What in XPress. flow the there. is in then in, required point first you and

right Just meet need you any on do to approvals? what to the color

Rhonda Amundson

Yeah. There in both the Both be roughly well our as to much pretty Phase rate increase certificated to gas in the firm approvals will it's attached that Westbrook. FERC facilities XX% phases to have are II. for from regulatory -- build Phase same planned I, will them, and obviously import to as approvals include capacity the XX% so necessary

did for that actually Phase And of towards I application facilities anticipate ahead. at a construction QX the December the we'd in going file that's we would So point. FERC this be facilities we -- the for and end filing

As of well, they customary thing. approval the cases, have approvals board shippers in of various that require some sort that will course,

TJ Schultz

Okay, then of capabilities able on and any X.X think done mentioned Bcf, of Gate GTN, the, the West for be And be or is export subject that more to what costs and be I color just should you to I timing on decision expansion needs thanks. to what some level to make expansions? think, that

Nathan Brown

Yeah.

You constraint pointed out the good there.

capable have a hand in of then of is with GTN. our doing, the WCSB with capacity has fairly obviously, new coordinate design everything GTN what approach to of to I'd is it, upstream. out say a else be that's to package in go going to solution glove down So added but our product

be we'd days early as there. together, the more, again it's announce but able capability would come So that to highlighting it's and

TJ Schultz

assets, to into to for What's North benefits short-term benefits those understood. I XXXX? some of some Baja think and think, Janine, some of specifically continue some you on services there the from I Okay, mentioned expectation your PNGTS.

Janine Watson

the unusual Well, gas down shifting gas I into flowing but a California. think that year was bit, Baja, certainly an dynamic XXXX little there for Southern on North is

flowing turning lot was the continue but likely process potentially LNG back won't expand up, as some same up and to actually to as into the that, further the that we’ll perhaps in coming back level, to gas US. That a see the So as anticipation that line. around ability of well capacity of of firm starts contracting

TJ Schultz

Go Understood. Okay. ahead.

Janine Watson

fair seasonal some are about also to years. interruptible Yeah, at market has Sorry, bit it's points, was of it's PNGTS just But opportunities that continue a have pretty PNGTS. various I you these over it reminded will few capacity asked sometimes themselves and weather-driven. next pretty -- present the --

marketing market team So, take if depending the them. of placed to they're opportunities, certainly advantage is our there, on

TJ Schultz

Okay. Great.

The leverage debt give EBITDA that you that? to Can are bank the last times. X.X one. bank calculate just Just at and ratio me used

Chuck Morris

It's Chuck here.

the you to on have So, get for I'll that. details

a on Just sec. hang

So, the certainly the ratio the I just ratio add-backs fact a there with than of associated virtue is little some leverage is guess -- the different bit bank tax. that property statement financial by

have is flip range. somewhere So, kind for billion for the I I'm to sitting leverage I just guess, might the the that get to of back trying and find around And you. you. EBITDA to number our $X.X

TJ Schultz

offline. That's fine. I up Thanks everyone. follow can

Operator

Thank The you. Matthew Please from Holt. Pickering next from Taylor question is ahead. go Tudor

Matthew Taylor

Hey, everyone.

about? guys in allocation, flows cash growth the a be XXXX years, and about When or want hand capital start it's thinking just more to you expected further on are now regulatory bit decisions growth lower. in dynamics to so you there Just de-levering thinking know that with but outer restarting do the distribution

Nathan Brown

Yeah.

we evaluating the for and prudent what certainly real the that out retain projects considering look management run to And of growth definitely that curve capacity term we're want on we see fund self-funding we continuously. in these manner. organic longer to I'd rates. a So, in say

would that the curve sight going But the as specific term making as distribution forward. reevaluation. sustainable all got the I firming that within we'll us, the or level this finer for have got, into we've our other balancing of comfortable ratio of is time, we're pipeline we've distribution a that things assets we're prospects be bit in foreseeable we future. at out cash portfolio, well that the got those up fairly flow of line spin maybe in as front So, we've little point near more say on growth

Matthew Taylor

helpful FERC then context. the over you've understand the And just That's moving use Great. filings positions to I XXXX numbers. XXX-G taken,

for risks Xs So in like Lakes about LTFP I it? you potential should the for Section at longer-term been guys have included. are about How some thinking cases or Great fully how be wouldn't least thinking or

Nathan Brown

regulatory risk you should status will. there regular the anti if that that mentioned think quo to back is I Well more you

and business a managing normal that So to our and customers back regulator usual we're our course as with as thing.

certainly extent that's But business our as normal our we mitigate have five result as the possible and the always with those on all team's we've side. be best to on got efforts We focused we risk other go go. got, a forward Section proactive to we've that risk. make to So it

Matthew Taylor

be taken to date. the just would be positions filing that And million -- Correct? to then fair $XX on the

Nathan Brown

all forward based correct mentioned, what it's And Yes, setting negotiate go able some the we've doing other this else is process. moratoriums coming with on what out the more as be been as we'll positive is at really equal where to do that we're a side we being this extend up process. and of what going have XXX-G through position of given to think we

and of higher part range of value at disclosed ended we as see. the is last the end overall the strategy, that part good up of that quarter that we play So we

Matthew Taylor

equity and That’s correct one Border assume would impact, on would great. then million final actually Great EBITDA just $XX earnings be And the impact bit maybe a Northern one that revisions for Lakes there include I it and larger? wouldn't

Nathan Brown

correct. that's Yes

all-in share. impact for that's our So

Matthew Taylor

me. from it That’s Thanks.

Operator

you. next Thank from Please Lapides is The go Michael Sachs. from ahead. Goldman question

Michael Lapides

good Yeah, you. hey questions congrats Two on a for guys, quarter.

all, think five could what about PNGTS? incremental additions how I'm maximum is for onto trying bolt-on of next First you the about system. more much to expansion investors or four over just think years that how the should possibly potential the

Nathan Brown

that we've for think there any there possibility don't I out engineering sort there, of -- expansion. disclosed but maximums we've is put is

I along give doesn't volumes, through its then border that it shared off we're midpoint to able enhancing now. the compression the right at receives expandability have runs terms number. be of absolute north additional configured, is line, there of any As But now and PNGTS which it of own. wouldn't compression. in Westbrook It you sits And a of compression on facilities

Michael Lapides

what And in just related thinking what about is project? real? are of this should thinking LNG, -- about this get you when mean, I investors what things happens it. to are for specific others hopper? all their whether you're or Got the eyes the keep view now just also is on milestones a Are the Baja and potential to one the just

Nathan Brown

we're point, at At more this generally. looking

in fill some in Baja down As Southern year, North need able is through we gas past when this came was saw the to there. flow there of California, here normal and disruption

certain gas as what So for with North in geography an going it's be on expandability development in -- we, a a that Baja step through with some obviously, their minds rates straightaway. as compression flows, that have the well. larger we and cheap And to and working solution business develops region of opportunity additional from think there right it's there's to pretty of way volume level our fairly at

Michael Lapides

Thank it. guys. you, Got Much appreciated.

Operator

Thank The Alex ahead. Please next you. Kania Research. from question Instructions] [Operator go is from Wolfe

Alex Kania

morning. good Hi,

two guess I questions. Just

going CapEx number First fall number see persists is you million $XX think may the maintenance where XXXX. I a towards one-time a number or near-term that just where that is XXXX? back on it in for that Do sustainability as of type more forward was of

Nathan Brown

be how to that our units. higher. give in persistent cyclical, what unfortunately spend tend yeah, compressor waves just -- I one. at that say come much that hours a any can on it systems I major our can those so Well, out depending come want wouldn't with some particular very our on would throughput too level. overhauls be are on got we've don't that on the guidance on to Depending on of got level We've particularly can

something in year. given one we more that's that's see a component may So any of or less

requirements And that pipeline we we look which those cyclically. another put is work we through come have we also programs at spend. as what dollars and go integrity, programs those of place and driver for We those in

repetitive unfortunately we going to will forward. continue become say keep So to able rate on material. given they as a I be But that's run or rate run wouldn't update activities

Alex Kania

Thanks. Great.

Operator

there I like at further question-and-answer Amundson. Rhonda any Thank please to session. would Relations the Ladies you. and contact TC LP. call PipeLines, questions, the over now gentlemen, are to Investor turn If this concludes

Rhonda Amundson

everyone today. great your forward TC soon. speaking your Thank again Great. you, a We and certainly for Have look interest with in to participation appreciate PipeLines day. you

TC Pipelines (TCP) 21 Feb 192018 Q4 Earnings call transcript