Boardwalk Announces Second Quarter 2015 Results And Quarterly Distribution Of $0.10 Per Unit

Aug 03, 2015, 06:00 ET from Boardwalk Pipeline Partners, LP

HOUSTON, Aug. 3, 2015 /PRNewswire/ -- Boardwalk Pipeline Partners, LP, (NYSE: BWP) announced today that it has declared a quarterly cash distribution per common unit of $0.10 ($0.40 annualized) payable on August 20, 2015, to unitholders of record as of August 13, 2015.

The Partnership also announced its results for the second quarter ended June 30, 2015, which included the following items:

  • Operating revenues of $298.6 million for the quarter and $628.3 million for the six months ended June 30, 2015, a 2% increase and a 3% decrease from $293.4 million and $650.3 million in the comparable 2014 periods;
  • Net income attributable to controlling interests of $40.4 million for the quarter and $118.1 million for the six months ended June 30, 2015, a 30% decrease from $57.4 million and $167.6 million in each of the comparable 2014 periods;
  • Earnings before interest, taxes, depreciation and amortization (EBITDA) of $167.3 million for the quarter and $371.9 million for the six months ended June 30, 2015, a slight increase and a 4% decrease from $167.1 million and $387.5 million in the comparable 2014 periods; and
  • Distributable cash flow of $92.3 million for the quarter and $224.6 million for the six months ended June 30, 2015, a 26% decrease and a 21% decrease from $124.1 million and $285.9 million in the comparable 2014 periods.

Compared with the second quarter of 2014, the Partnership's operating revenues and EBITDA were favorably impacted by the receipt of insurance proceeds related to a business interruption claim at Boardwalk Louisiana Midstream and additional revenues resulting from the ongoing Gulf South rate case. Storage and parking and lending revenues continued to be negatively impacted by unfavorable market conditions. Operating expenses for the second quarter 2015 were higher compared to 2014 due to the timing of maintenance project activities. The 2014 period was favorably impacted by $4.5 million as a result of a legal settlement.

For the six-month period, the Partnership's operating revenues and EBITDA were negatively impacted by the relatively normal 2015 winter season compared to the unusually cold and sustained winter of 2014, although the impact was partly offset by the favorable effects of the second quarter items discussed above. Operating expenses for the six-month period were impacted by the items discussed above. The six-month period 2014 results included an impairment charge related to the terminated Bluegrass Project.

Capital Program

Growth capital expenditures were $80.9 million and maintenance capital expenditures were $55.4 million for the six months ended June 30, 2015.

Conference Call

The Partnership has scheduled a conference call for August 3, 2015, at 9:30 a.m. Eastern time to review the quarterly results, current market conditions and distribution amount. The earnings webcast may be accessed via the Boardwalk website at www.bwpmlp.com. Please access the website at least 10 minutes before the event begins to register and download and install any necessary audio software. Those interested in participating in the question and answer session of the conference call should dial (855) 793-3255 for callers in the U.S. or (631) 485-4925 for callers outside the U.S. The PIN number to access the call is 74493272.

Replay

An online replay will be available on the Boardwalk website immediately following the call.

Non-GAAP Financial Measures - EBITDA and Distributable Cash Flow

The Partnership uses non-GAAP measures to evaluate its business and performance, including EBITDA and distributable cash flow. EBITDA is used as a supplemental financial measure by management and by external users of the Partnership's financial statements, such as investors, commercial banks, research analysts and rating agencies, to assess the Partnership's operating and financial performance, ability to generate cash and return on invested capital as compared to those of other companies in the midstream portion of the natural gas and natural gas liquids industry. Distributable cash flow is used as a supplemental financial measure by management and by external users of the Partnership's financial statements to assess the Partnership's ability to make cash distributions to its unitholders and general partner.

EBITDA and distributable cash flow should not be considered alternatives to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with generally accepted accounting principles (GAAP). EBITDA and distributable cash flow are not necessarily comparable to similarly titled measures of another company.

About Boardwalk

Boardwalk Pipeline Partners, LP (NYSE: BWP) is a midstream master limited partnership that provides transportation, storage, gathering and processing of natural gas and liquids for its customers. Additional information about the Partnership can be found on its website at www.bwpmlp.com.

 

BOARDWALK PIPELINE PARTNERS, LP

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Millions, except per unit amounts)

(Unaudited)

For the Three Months Ended June 30,

For the Six Months Ended June 30,

2015

2014

2015

2014

Operating Revenues:

Transportation

$

256.9

$

245.7

$

546.5

$

550.0

Parking and lending

2.8

9.2

5.6

18.4

Storage

20.9

22.1

40.2

50.9

Other

18.0

16.4

36.0

31.0

Total operating revenues

298.6

293.4

628.3

650.3

Operating Costs and Expenses:

Fuel and transportation

23.6

29.9

50.6

62.9

Operation and maintenance

54.6

43.9

97.0

86.6

Administrative and general

31.8

30.5

62.4

57.3

Depreciation and amortization

81.0

69.6

162.6

138.8

Asset impairment

1.4

0.1

8.6

Net gain on sale of operating assets

(0.1)

(0.8)

(0.1)

(1.2)

Taxes other than income taxes

21.8

22.4

47.0

48.2

Total operating costs and expenses

212.7

196.9

419.6

401.2

Operating income

85.9

96.5

208.7

249.1

Other Deductions (Income):

Interest expense

45.9

40.2

91.1

81.1

Interest income

(0.1)

(0.2)

(0.2)

(0.3)

Equity losses in unconsolidated affiliates

0.5

86.6

Miscellaneous other income, net

(0.4)

(0.6)

(0.1)

Total other deductions

45.4

40.5

90.3

167.3

Income before income taxes

40.5

56.0

118.4

81.8

Income taxes

0.1

0.1

0.3

0.3

Net income

40.4

55.9

118.1

81.5

Net loss attributable to noncontrolling interests

(1.5)

(86.1)

Net income attributable to controlling interests

$

40.4

$

57.4

$

118.1

$

167.6

Net Income per Unit:

Net income per common unit

$

0.16

$

0.23

$

0.47

$

0.68

Weighted-average number of common units outstanding

250.3

243.3

247.3

243.3

Cash distribution declared and paid to common units

$

0.10

$

0.10

$

0.20

$

0.20

The following table presents a reconciliation of the Partnership's EBITDA and distributable cash flow to its net income, the most directly comparable GAAP financial measure, for each of the periods presented (in millions):

For the Three Months Ended June 30,

For the Six Months Ended June 30,

2015

2014

2015

2014

Net income

$

40.4

$

55.9

$

118.1

$

81.5

Net loss attributable to noncontrolling interests

(1.5)

(86.1)

Net income attributable to controlling interests

40.4

57.4

118.1

167.6

Income taxes

0.1

0.1

0.3

0.3

Depreciation and amortization

81.0

69.6

162.6

138.8

Interest expense

45.9

40.2

91.1

81.1

Interest income

(0.1)

(0.2)

(0.2)

(0.3)

 EBITDA

167.3

167.1

371.9

387.5

Less:

Cash paid for interest, net of capitalized interest

37.2

23.5

91.4

76.1

Maintenance capital expenditures

37.4

23.0

55.4

39.0

Add:

Bluegrass Project impairment, net of

   noncontrolling interest

10.0

Other (1)

(0.4)

3.5

(0.5)

3.5

Distributable Cash Flow

$

92.3

$

124.1

$

224.6

$

285.9

(1)

  Includes other non-cash items, such as the equity component of allowance for funds used during construction.

 

BOARDWALK PIPELINE PARTNERS, LP NET INCOME PER UNIT RECONCILIATION (Unaudited)

The following table provides a reconciliation of net income and the assumed allocation of net income to the common units for purposes of computing net income per unit for the three months ended June 30, 2015, (in millions, except per unit data):   

Total

Common Units

General Partner and IDRs

Net income

$

40.4

Declared distribution

25.6

$

25.1

$

0.5

Assumed allocation of undistributed net income

14.8

14.5

0.3

Assumed allocation of net income attributable to limited partner unitholders and general partner

$

40.4

$

39.6

$

0.8

Weighted-average units outstanding

250.3

Net income per unit

$

0.16

The following table provides a reconciliation of net income and the assumed allocation of net income to the common units for purposes of computing net income per unit for the three months ended June 30, 2014, (in millions, except per unit data):

Total

Common Units

General Partner and IDRs

Net income

$

55.9

Less: Net loss attributable to noncontrolling interests

(1.5)

Net income attributable to controlling interests

57.4

Declared distribution

24.8

$

24.3

$

0.5

Assumed allocation of undistributed net income

32.6

32.0

0.6

Assumed allocation of net income attributable to limited partner unitholders and general partner

$

57.4

$

56.3

$

1.1

Weighted-average units outstanding

243.3

Net income per unit

$

0.23

The following table provides a reconciliation of net income and the assumed allocation of net income to the common units for purposes of computing net income per unit for the six months ended June 30, 2015, (in millions, except per unit data):   

Total

Common Units

General Partner and IDRs

Net income

$

118.1

Declared distribution

51.1

$

50.1

$

1.0

Assumed allocation of undistributed net income

67.0

65.7

1.3

Assumed allocation of net income attributable to limited partner unitholders and general partner

$

118.1

$

115.8

$

2.3

Weighted-average units outstanding

247.3

Net income per unit

$

0.47

The following table provides a reconciliation of net income and the assumed allocation of net income to the common units for purposes of computing net income per unit for the six months ended June 30, 2014, (in millions, except per unit data):

Total

Common

Units

General Partner and IDRs

Net income

$

81.5

Less: Net loss attributable to noncontrolling interests

(86.1)

Net income attributable to controlling interests

167.6

Declared distribution

49.6

$

48.7

$

0.9

Assumed allocation of undistributed net income

118.0

115.6

2.4

Assumed allocation of net income attributable to limited partner unitholders and general partner

$

167.6

$

164.3

$

3.3

Weighted-average units outstanding

243.3

Net income per unit

$

0.68

 

INVESTOR CONTACTS: Molly Ladd Whitaker, 866-913-2122 Director of Investor Relations and Corporate Communications ir@bwpmlp.com

or

Jamie Buskill, 713-479-8082 Senior VP, Chief Financial and Administrative Officer and Treasurer

MEDIA CONTACT: Joe Hollier, 713-479-8670 Manager of Corporate Communications joe.hollier@bwpmlp.com

 

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SOURCE Boardwalk Pipeline Partners, LP



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