Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. sophomore Avg
|
New words:
absent, advice, advocacy, agenda, Aid, allegedly, antitrust, ascertain, Avenue, Bachelor, Bar, BBB, Berkshire, bid, Biden, Bird, Blackstone, broad, broader, broadly, burden, burdened, campaign, capex, center, central, cessation, chain, collapse, collateral, commissioner, comparison, compel, composed, congressional, controversial, controversially, convenience, country, coupon, creative, Creditwatch, creditworthy, cut, cutting, cycle, deficit, demonstrate, demonstrating, density, dispute, Doctorate, dollar, Eagle, ease, Ecology, electrification, ensuing, EO, excuse, extinction, extreme, Fish, Fitch, fleet, footing, fractional, freeze, front, Fulbright, geothermal, globe, Gloria, Governor, ground, habitat, Hartl, Harvest, Hathaway, haze, heavily, Heeg, Holdco, idle, IFR, illegal, imperative, inadvertently, inconsistent, injury, insolvency, Instant, Intermediary, intervene, intervening, invalid, justice, justified, Keystone, Lancaster, lessen, Liquified, longstanding, Lottery, Louisville, macroeconomic, massive, Mayor, MBTA, medium, Mercantile, merged, migratory, Navigable, necessity, negligible, neighboring, Nitrogen, Norton, notch, noteworthy, NOx, NPRM, NWP, NYMEX, ODEQ, official, officially, ordinarily, outbreak, outweigh, oversupply, pandemic, paragraph, Park, Particulate, pause, Peggy, percentof, placement, posed, postponing, prearranged, precursor, predominantly, printing, promotion, prove, proxy, put, realm, recession, recommend, recommendation, recommended, reconsideration, recordkeeping, rectify, Reed, refrain, reissuance, reissue, reissued, reissuing, rejoin, rejoining, remarket, remarketed, repeated, research, residual, restructured, resumption, revocation, Rock, Rose, Schwarzman, Seattle, sensitive, sewage, sharp, Shell, shut, slate, slight, slowdown, Smith, social, Specialist, spotlight, spread, spring, stage, Stephen, streamline, strength, surviving, swiftly, switching, tabular, Tackle, tenure, thirty, throughput, tidal, timeframe, timetable, touted, traction, Treaty, turbine, uncontrolled, understood, unemployment, unintentionally, University, unknown, unpaid, unprecedented, urban, USACE, vacancy, Valve, viability, visibility, waiting, Wayne, week, WhiteWater, widespread, wildlife, wind, window, withdrawn, workforce, world, XL, XTO
Removed:
absorb, assigned, ASU, attempted, attribution, bond, bring, Buyer, claim, claimed, closure, commit, complemented, compute, concurrent, concurrently, consulting, create, disclaimed, division, Dominion, dropdown, educational, element, engineering, expanded, fall, family, Homeland, IDR, imminent, ineligible, judge, lessee, lessor, Mircan, Murphy, NGPA, NOVA, pattern, pooling, principally, processing, procurement, real, reconstructed, requesting, rescission, retrospectively, returned, revolver, ROU, sought, step, suit, TCPL, transition, Val, versa, VIE, volumetric, worked
Financial report summary
?Risks
- The amount of cash we have available for distribution to holders of our common units depends primarily on our cash flow, financial reserves and working capital borrowings, rather than on our profitability, which may prevent us from making distributions, even during periods in which we earn net income.
- Prolonged low oil and natural gas prices could result in supply and demand imbalances that impact availability of natural gas for transportation on our pipeline systems.
- Capital projects or future acquisitions that appear to be accretive may fail to materialize as anticipated or nevertheless reduce our cash available for distributions.
- Our indebtedness may limit our ability to obtain additional financing, make distributions or pursue business opportunities.
- If we are unable to obtain needed capital or financing on satisfactory terms to fund capital projects or future acquisitions, our ability to make quarterly cash distributions may be diminished or our financial leverage could increase.
- Any impairment of our goodwill, long-lived assets or equity investments will reduce our earnings and could negatively impact the value of our common units.
- We do not own a controlling interest in our equity investments in Northern Border, Great Lakes and Iroquois, which limits our ability to control these assets.
- We may experience changes in demand for our transportation services which may lead to an inability of our pipelines to charge maximum rates or renew expiring contracts.
- Rates and other terms of service for our pipeline systems are subject to approval and potential adjustment by FERC, which could limit the ability to recover all costs of capital and operations and negatively impact their rate of return, results of operations and cash available for distribution.
- If our pipeline systems do not make additional capital expenditures sufficient to offset depreciation expense, our rate base will decline and our earnings and cash flow could decrease over time.
- Our pipeline systems’ indebtedness and commitments may limit their ability to borrow additional funds, make distributions to us or capitalize on business opportunities.
- Our pipeline systems are subject to operational hazards and unforeseeable interruptions that may not be covered by insurance.
- Our pipeline systems may experience significant costs and liabilities related to compliance with FERC regulations and pipeline safety laws and regulations.
- Our pipeline systems are subject to federal, state and local environmental laws and regulations that could impose significant compliance-related costs and liabilities, or make the execution of our growth projects uneconomic or impossible.
- We do not have the same flexibility as corporations to accumulate cash and equity to protect against illiquidity in the future.
- Our Partnership Agreement restricts voting and other rights of unitholders owning 20 percent or more of our common units.
- We may issue additional common units and other partnership interests, without unitholder approval, which would dilute the existing unitholders’ ownership interests. In addition, issuance of additional common units or other partnership interests may increase the risk that we will be unable to maintain the quarterly distribution payment at current levels.
- Our common unitholders’ liability may not be limited if a court finds that unitholder action constitutes control of our business.
- Our General Partner has a limited call right that may require common unitholders to sell their common units at an undesirable time or price.
- Our Partnership Agreement replaces our general partner’s fiduciary duties to holders of our common units with contractual standards governing its duties.
- The NYSE does not require a publicly traded limited partnership like us to comply with certain of its corporate governance requirements.
- The credit and business risk profiles of our General Partner and TC Energy could adversely affect our credit ratings and profile.
- Costs reimbursed to our General Partner are determined by our General Partner and reduce our earnings and cash available for distribution.
- Changes in TC Energy’s costs or their cost allocation practices could have an effect on our results of operations, financial position and cash flows.
- Our tax treatment depends on our status as a partnership and exemption from entity level taxes for U.S. federal, state and local income tax purposes. If we were to be treated as a corporation or otherwise become subject to a material amount of entity level taxation for U.S. federal, state and local tax purposes, our cash available for distribution to unitholders and the value of our common units could be substantially reduced.
- The tax treatment of publicly traded partnerships or an investment in our units could be subject to potential legislative, judicial or administrative changes or differing interpretations, possibly applied on a retroactive basis.
- If the IRS were to contest the federal income tax positions we take, it may adversely impact the market for our common units, and the costs of any such contest would reduce our cash available for distribution to our unitholders.
- If the IRS makes audit adjustments to our income tax returns for tax years beginning after December 31, 2017, it (and some states) may assess and collect any taxes (including any applicable penalties and interest) resulting from such audit adjustment directly from us, in which case our cash available for distribution to our unitholders might be substantially reduced and our current and former unitholders may be required to indemnify us for any taxes (including any applicable penalties and interest) resulting from such audit adjustments that were paid on such unitholders’ behalf.
- Unitholders may be required to pay taxes on income from us even if they receive no cash distributions.
- Tax gains or losses on the disposition of common units could be different than expected.
- Unitholders may be subject to limitation on their ability to deduct interest expense incurred by us.
- Non-U.S. unitholders will be subject to U.S. taxes and withholding with respect to their income and gain from owning our common units.
- We treat a purchaser of our common units as having the same tax benefits without regard to the actual common units purchased. The IRS may challenge this treatment, which could adversely affect the value of the common units.
- We generally prorate our items of income, gain, loss and deduction between transferors and transferees of our common units each month based upon the ownership of our common units on the first day of each month, instead of on the basis of the date a particular unit is transferred. The IRS may challenge this treatment, which could change the allocation of items of income, gain, loss and deduction among our unitholders.
- A unitholder whose common units are the subject of a securities loan (e.g., a loan to a “short seller” to cover a short sale of units) may be considered to have disposed of those units. If so, he would no longer be treated for tax purposes as a partner with respect to those common units during the period of the loan and may recognize gain or loss from the disposition.
- We have adopted certain valuation methodologies that may result in a shift of income, gain, loss and deduction between the General Partner and the unitholders. The IRS may challenge this treatment, which could adversely affect the value of the common units.
- Unitholders will likely be subject to state and local taxes and return filing requirements in states where they do not live as a result of an investment in our common units.
- We are exposed to credit risk when a customer fails to perform its contractual obligations.
Management Discussion
- The ownership interests in our pipeline assets were our only material sources of income during the periods presented. Therefore, our results of operations and cash flows were influenced by, and reflect the same factors that influenced, our pipeline systems.
- (a)Adjusted earnings and Adjusted earnings per common unit are non-GAAP financial measures for which reconciliations to the appropriate GAAP measures are provided below.
- (b)Positive number represents a favorable change; bracketed or negative number represents an unfavorable change.