Columbia Pipeline Group Announces Closing of Equity Offering

Proceeds Provide CPG Greater Financial Flexibility and Funds Growth Strategy

Dec 07, 2015, 16:01 ET from Columbia Pipeline Group, Inc.

HOUSTON, Dec. 7, 2015 /PRNewswire/ -- Columbia Pipeline Group, Inc. (NYSE: CPGX) ("CPG") today announced the closing of its public offering of 71.5 million shares of common stock at a public offering price of $17.50 per share. In addition to the 71.5 million shares of common stock issued and sold at closing, 10.725 million shares of common stock were issued and sold at closing pursuant to the full exercise of the underwriters' option to purchase additional shares of common stock. The net proceeds from this offering, after deducting underwriting discounts and estimated offering expenses payable by CPG, were approximately $1.4 billion.

"CPG's successful equity offering eliminates the need for additional equity capital until 2017 and gives us the financial flexibility to be opportunistic in raising equity as we go forward and execute our business plan," said CPG Chairman and Chief Executive Officer Robert C. Skaggs, Jr.  Skaggs also reaffirmed CPG's 2015 EBITDA outlook of $680 million as well as 20 percent average annual EBITDA growth through 2020.  Also reaffirmed are both CPG and Columbia Pipeline Partners LP's (NYSE: CPPL) ("CPPL") previously announced average annual dividend and distribution growth rates through 2020 of 15 and 20 percent, respectively. 

CPG plans to use the net proceeds from the offering, together with cash flow from operations and available borrowings under its revolving credit facilities, for general corporate purposes, including to fully fund, directly or indirectly, the 2016 cash capital expenditure requirements of its subsidiaries. In addition, CPG may make an investment in, or participate in other funding arrangements with, CPPL, consistent with CPG's plans to grow the partnership. Pending such use, the net proceeds from the offering will be used to fully repay amounts outstanding under CPG's revolving credit facility and outstanding amounts under CPG's commercial paper program, with the remainder to be held as cash or invested in short term securities, or a combination of both.

Skaggs also noted that, while CPPL continues to represent the preferred long-term source of equity, the offering at CPGX was the optimal means by which to manage CPG's capital needs in a difficult capital market environment.

"The fundamentals of our core business and our growth strategy remain squarely on track, and today's successful equity offering allows the team to maintain its singular focus on the flawless execution of our business plan, including delivering our deep inventory of transformational investment opportunities on time and on budget.  The completion of that backlog is expected to result in a tripling of the net investment of the company by 2020," said Skaggs.

About Columbia Pipeline Group, Inc. Columbia Pipeline Group, Inc. operates approximately 15,000 miles of strategically located interstate pipeline, gathering and processing assets extending from New York to the Gulf of Mexico, including an extensive footprint in the Marcellus and Utica shale production areas.  Columbia Pipeline Group, Inc. also operates one of the nation's largest underground natural gas storage systems. Columbia Pipeline Group, Inc. is listed on the NYSE under the ticker symbol CPGX.

Forward-Looking Statements This release includes "forward-looking statements" within the meaning of federal securities laws, which are statements other than historical facts and that frequently use words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "plan," "position," "should," "strategy," "target," "will" and similar words. All forward-looking statements speak only as of the date of this release. Although CPG believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecasted in such statements. This release contains certain forward-looking statements that are based on current plans and expectations and are subject to various risks and uncertainties. CPG's business may be influenced by many factors that are difficult to predict, involve uncertainties that may materially affect actual results and are often beyond CPG's control. These factors include, but are not limited to, changes in general economic conditions; competitive conditions in our industry; actions taken by third-party operators, processors and transporters; the demand for natural gas storage and transportation services; our ability to successfully implement our business plan; our ability to complete internal growth projects on time and on budget; the price and availability of debt and equity financing; the availability and price of natural gas to the consumer compared with the price of alternative and competing fuels; competition from the same and alternative energy sources; energy efficiency and technology trends; operating hazards and other risks incidental to transporting, storing and gathering natural gas; natural disasters, weather-related delays, casualty losses and other matters beyond our control; interest rates; labor relations; large customer defaults; changes in the availability and cost of capital; changes in tax status; the effects of existing and future laws and governmental regulations; and the effects of future litigation. For a full discussion of these risks and uncertainties, please refer to the "Risk Factors" section of CPG's Registration Statement on Form 10 dated and filed with the Securities Exchange Commission on February 6, 2015, as amended and declared effective on June 2, 2015. All forward-looking statements included in this press release are expressly qualified in their entirety by such cautionary statements. CPG expressly disclaims any obligation to update, amend or clarify any forward-looking statement to reflect events, new information or circumstances occurring after the date of this press release except as required by applicable law.

SOURCE Columbia Pipeline Group, Inc.