Dominion Midstream Partners Announces Third-Quarter 2015 Earnings

- Generated $19.8 million distributable cash flow for third-quarter 2015

- Declared $0.20 per unit quarterly distribution, a 7 percent increase above second-quarter

Nov 02, 2015, 07:31 ET from Dominion Midstream Partners

RICHMOND, Va., Nov. 2, 2015 /PRNewswire/ -- Dominion Midstream Partners, LP (NYSE: DM) reported unaudited net income attributable to the partnership of $18.0 million, or $0.28 per common limited partner unit for the three months ended Sept. 30, 2015.  Adjusted earnings before interest, income taxes, depreciation and amortization (Adjusted EBITDA) was $20.3 million and distributable cash flow was $19.8 million for the quarter.

On Sept. 29, 2015, Dominion Midstream acquired a 25.93% partnership interest in Iroquois Gas Transmission System, L.P., a Delaware limited partnership.  Iroquois owns and operates a 416-mile FERC regulated interstate natural gas transmission pipeline extending from the Canada-U.S. border through New York and Connecticut.

Dominion Midstream uses Adjusted EBITDA and distributable cash flow as the primary performance measurement of its earnings and results for public communications with analysts and investors.  Dominion Midstream also uses Adjusted EBITDA and distributable cash flow internally for budgeting, reporting to the Board of Directors and other purposes. Management believes Adjusted EBITDA and distributable cash flow provide a more meaningful representation of the company's financial performance.  

QUARTERLY DISTRIBUTION On Oct. 23, 2015, the Board of Directors declared a quarterly distribution of $0.20 per unit, payable Nov. 13, 2015, to unitholders of record at the close of business on Nov. 3, 2015.

CONFERENCE CALL TODAY Dominion Midstream and Dominion Resources will jointly host a third-quarter earnings conference call at 10 a.m. ET on Monday, Nov. 2.  Management will discuss its third-quarter financial results and other matters of interest to the financial community.

Domestic callers should dial (877) 410-5657. The passcode for the conference call is "Dominion."  International callers should dial (334) 323-9872.  Participants should dial in 10 to 15 minutes prior to the scheduled start time.  Members of the media also are invited to listen.

A live webcast of the conference call, including accompanying slides, will be available on the company's investor information page at www.dommidstream.com/investors.

A replay of the conference call will be available beginning about 1 p.m. ET Nov. 2 and lasting until 11 p.m. ET Nov. 12.  Domestic callers may access the recording by dialing (877) 919-4059.  International callers should dial (334) 323-0140.  The PIN for the replay is 77229545.  Additionally, a replay of the webcast will be available on the company's investor information page by the end of the day Nov. 2.

ABOUT DOMINION MIDSTREAM Dominion Midstream is a growth-oriented Delaware limited partnership formed by Dominion Resources, Inc., in March 2014 to own, operate, develop and acquire natural gas import, storage, regasification, transportation and related assets. It is headquartered in Richmond, Va. For more information about Dominion Midstream, visit its website at www.dommidstream.com.

 

Dominion Midstream Partners, LP Schedule A - Selected Financial Data* (Unaudited)

The Adjusted EBITDA and distributable cash flow measures presented below are not applicable to the three and nine month periods ended September 30, 2014.

Three Months Ended

Nine Months Ended

September 30,

September 30,

2015

2015

(millions)

Adjusted EBITDA

$                  20.3

$                  52.0

Adjustments to cash:

     Plus: Other taxes

1.3

2.5

     Plus: Deferred revenue

3.0

4.0

     Less: Amortization of regulatory liability

(0.7)

(1.4)

     Less: Maintenance capital expenditures

(3.6)

(6.0)

     Plus: Transition costs funded by Dominion

-

0.7

     Less: Interest expense and AFUDC equity

(0.5)

(0.9)

     Plus: Non-cash director compensation

-

0.1

Distributable Cash Flow

$                  19.8

$                  51.0

Distributions:

     Common unitholders

9.1

22.5

     Subordinated unitholder

6.4

18.0

Total distributions**

$                  15.5

$                  40.5

Coverage Ratio**

1.28x

1.26x

* The notes contained in Dominion Midstream's most recent quarterly report on Form 10-Q or  annual report on Form 10-K are an integral part of the Consolidated Financial Statements.

**Calculations include the 8,622,305 common units issued to affiliates of National Grid plc and New Jersey Resources Corporation on September 29, 2015, in connection with the acquisition of a 25.93% partnership interest in Iroquois. If excluded, total distributions would have been $13.8 million and $38.8 million with a coverage ratio of 1.43x and 1.31x for the three and nine months ended September 30, 2015 respectively. 

See schedules C and D for reconciliations of non-GAAP measures.

 

Dominion Midstream Partners, LP

Schedule B - Consolidated Statements of Income*

(Unaudited)

 Three Months Ended 

 Nine Months Ended 

 September 30, 

 September 30, 

2015

2014

2015

2014

(Predecessor)

(Predecessor)

(millions, except per unit data)

Operating Revenue

$      103.1

$            65.7

$      286.9

$          245.8

Operating Expenses

Purchased gas

23.4

2.4

52.8

55.5

Other operations and maintenance

13.8

7.0

43.1

28.2

Depreciation and amortization

9.9

7.8

30.4

23.5

Other taxes

7.3

5.7

20.0

16.8

Total operating expenses

54.4

22.9

146.3

124.0

Income from operations

48.7

42.8

140.6

121.8

Other income (expense)

0.2

(0.1)

0.6

(0.1)

Interest and related charges

0.1

-

0.3

-

Income from operations including noncontrolling interest before income taxes

48.8

42.7

140.9

121.7

Income tax expense

-

16.3

2.1

46.5

Net income including noncontrolling interest and DCG Predecessor

$        48.8

$            26.4

$      138.8

$            75.2

Less: Net income attributable to DCG Predecessor 1

-

2.3

Net income including noncontrolling interest

48.8

136.5

Less: Net income attributable to noncontrolling interest

30.8

89.1

Net income attributable to partners

$        18.0

$         47.4

Net income attributable to partners' ownership interest

  General partner's interest in net income

$             -

$         (0.7)

  Common unitholders' interest in net income

10.5

26.7

  Subordinated unitholder's interest in net income

7.5

21.4

Net income per limited partner unit (basic and diluted)

  Common Units

$0.28

$0.75

  Subordinated Units 

$0.24

$0.67

1Represents amounts for the period from January 31, through March 31, 2015.

* The notes contained in Dominion Midstream's most recent quarterly report on Form 10-Q or annual report  on Form 10-K are an integral part of the Consolidated Financial Statements.

 

Dominion Midstream Partners, LP

Schedule C - Reconciliation of EBITDA and Adjusted EBITDA to Net Income

(Unaudited)

The following table presents a reconciliation of EBITDA and Adjusted EBITDA to the most directly comparable GAAP financial measure for each period.  The Adjusted EBITDA measure is not applicable to the three and nine month periods ended September 30, 2014.

Three Months Ended

Nine Months Ended 

September 30,

September 30,

2015

2014

2015

2014

(millions)

Net income including noncontrolling interest and DCG Predecessor

$   48.8

$    26.4

$    138.8

$      75.2

Add:

     Depreciation and amortization

9.9

7.8

30.4

23.5

     Interest and related charges

0.1

-

0.3

-

     Income tax expense

-

16.3

2.1

46.5

EBITDA

$   58.8

$    50.5

$    171.6

$    145.2

     EBITDA attributable to DCG Predecessor

-

5.7

     EBITDA attributable to noncontrolling interest

38.5

113.9

Adjusted EBITDA

$   20.3

$      52.0

 

Dominion Midstream Partners, LP

Schedule D - Reconciliation of Distributable Cash Flow to Net Cash from Operating Activities*

(Unaudited)

The following table presents a reconciliation of distributable cash flow to the most directly comparable GAAP financial measure for the three and nine month periods ended September 30, 2015. The distributable cash flow measure is not applicable to the three and nine month periods ended September 30, 2014.

Three Months Ended

Nine Months Ended

September 30,

September 30,

2015

2015

(millions)

Net cash provided by operating activities

$                  70.9

$                195.6

Less:

     Cash attributable to noncontrolling interest

48.9

128.9

     Cash attributable to DCG Predecessor

-

10.4

Other changes in working capital and noncash adjustments

(1.7)

(4.3)

Adjusted EBITDA

20.3

52.0

Adjustments to cash:

     Plus: Other taxes

1.3

2.5

     Plus: Deferred revenue

3.0

4.0

     Less: Amortization of regulatory liability

(0.7)

(1.4)

     Less: Maintenance capital expenditures

(3.6)

(6.0)

     Plus: Transition costs funded by Dominion

-

0.7

     Less: Interest expense and AFUDC equity

(0.5)

(0.9)

     Plus: Non-cash director compensation

-

0.1

Distributable cash flow

$                  19.8

$                  51.0

* The notes contained in Dominion Midstream's most recent quarterly report on Form 10-Q or  annual report on Form 10-K are an integral part of the Consolidated Financial Statements.

HOW WE EVALUATE OUR OPERATIONS

Subsequent to the acquisition of DCG, we define distributable cash flow as Adjusted EBITDA less maintenance capital expenditures, less interest expense and adjusted for known timing differences between cash and income.  All periods presented have been calculated to reflect a consistent approach. 

 

SOURCE Dominion Midstream Partners



RELATED LINKS

http://www.dom.com