Natural Gas Pipelines

Results

Year ended December 31 (millions of dollars) 2011  2010  2009 
Canadian Natural Gas Pipelines      
Canadian Mainline 1,058  1,054  1,133 
Alberta System 742  742  728 
Foothills 127  135  132 
Other (TQM, Ventures LP) 50  50  59 
Canadian Natural Gas Pipelines Comparable EBITDA(1) 1,977  1,981  2,052 
Depreciation and amortization (722) (715) (714)
Canadian Natural Gas Pipelines Comparable EBIT(1) 1,255  1,266  1,338 
       
U.S. Natural Gas Pipelines (in U.S. dollars)      
ANR 312  314  300 
GTN(2) 131  171  170 
Great Lakes(3) 101  109  120 
TC PipeLines, LP(2)(4)(5) 101  99  90 
Iroquois 67  67  68 
Bison(5) 49  –  – 
Portland(6) 22  22  22 
International (Tamazunchale, Guadalajara, TransGas, Gas Pacifico/INNERGY)(7) 77  42  52 
General, administrative and support costs(8) (9) (31) (17)
Non-controlling interests(9) 202  173  153 
U.S. Natural Gas Pipelines Comparable EBITDA(1) 1,053  966  958 
Depreciation and amortization (267) (256) (276)
U.S. Natural Gas Pipelines Comparable EBIT(1) 786  710  682 
Foreign exchange (8) 24  105 
U.S. Natural Gas Pipelines Comparable EBIT(1) (in Canadian dollars) 778  734  787 
       
Natural Gas Pipelines Business Development Comparable EBITDA and EBIT(1) (52) (62) (62)
Natural Gas Pipelines Comparable EBIT(1) 1,981  1,938  2,063 
       
Summary:      
Natural Gas Pipelines Comparable EBITDA(1) 2,967  2,915  3,093 
Depreciation and amortization (986) (977) (1,030)
Natural Gas Pipelines Comparable EBIT(1) 1,981  1,938  2,063 
Specific items:      
Valuation provision for MGP(10) –  (146) – 
Dilution gain from reduced interest in TC PipeLines, LP(11) –  –  29 
Natural Gas Pipelines EBIT(1) 1,981  1,792  2,092 
(1) Refer to the Non-GAAP Measures section in this MD&A for further discussion of Comparable EBITDA, Comparable EBIT and EBIT.
(2) Results reflect TransCanada's direct ownership of 75 per cent of GTN effective May 2011 when 25 per cent was sold to TC PipeLines, LP, and 100 per cent prior to that date. GTN's results also include North Baja until July 2009, when North Baja was sold to TC PipeLines, LP.
(3) Represents TransCanada's 53.6 per cent direct ownership interest.
(4) Effective May 2011, TransCanada's ownership interest in TC PipeLines, LP decreased from 38.2 per cent to 33.3 per cent. Results reflect TransCanada's indirect effective ownership interest of 8.3 per cent in each of GTN and Bison effective May 2011. Effective November 18, 2009, TC PipeLines, LP's results reflected TransCanada's effective ownership in TC PipeLines, LP of 38.2 per cent. From July 1, 2009 to November 17, 2009, TransCanada's ownership interest in TC PipeLines, LP was 42.6 per cent. From January 1, 2009 to June 30, 2009, TransCanada's ownership interest in TC PipeLines, LP was 32.1 per cent.
(5) Results reflect TransCanada's direct ownership of 75 per cent of Bison effective May 2011 when 25 per cent was sold to TC PipeLines, LP and 100 per cent since January 2011 when Bison went into service.
(6) Portland's results reflect TransCanada's 61.7 per cent ownership interest.
(7) Includes Guadalajara effective June 2011.
(8) Represents General, Administrative and Support Costs associated with certain of the Company's pipelines, including $17 million for the start up of Keystone in 2010.
(9) Non-controlling interests reflects Comparable EBITDA for the 66.7 per cent and 38.3 per cent portions of TC PipeLines, LP and Portland, respectively, not owned by TransCanada.
(10) In 2010, the Company recorded a valuation provision of $146 million for its advances to the APG for the MGP.
(11) As a result of TC PipeLines, LP issuing common units to the public in July 2009, the Company's ownership interest in TC PipeLines, LP was reduced to 38.2 per cent from 42.6 per cent and a dilution gain of $29 million was realized.

Natural Gas Pipelines' Comparable EBIT was $1,981 million in 2011 compared to $1,938 million in 2010. Comparable EBIT in 2010 excluded a $146 million valuation provision for the Company's advances to the APG for the MGP. Comparable EBIT in 2009 was $2,063 million excluding the $29 million dilution gain resulting from TransCanada's reduced interest in TC PipeLines, LP, which occurred as a result of the public issuance of common units by TC PipeLines, LP in November 2009.

Wholly Owned Canadian Natural Gas Pipelines Net Income

Year ended December 31 (millions of dollars) 2011 2010 2009
Canadian Mainline 246 267 273
Alberta System 200 198 168
Foothills 22 27 23