HOUSTON, April 30, 2018
/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
May 17, 2018, to unitholders of
record as of May 10, 2018.
The Partnership also announced its results for the first quarter
ended March 31, 2018, which included the following items:
- Operating revenues of $335.4
million, a 9% decrease from $367.0
million in the comparable 2017 period. Excluding items
offset in fuel and transportation expense, operating revenues were
$331.0 million, a 5% decrease from
$347.8 million in the comparable 2017
period;
- Net income of $97.2 million, a
19% decrease from $119.3 million in
the comparable 2017 period;
- Earnings before interest, taxes, depreciation and amortization
(EBITDA) of $224.4 million, a 9%
decrease from $246.2 million in the
comparable 2017 period; and
- Distributable cash flow of $159.9
million, a 9% decrease from $176.1
million in the comparable 2017 period.
Effective January 1, 2018, the
Partnership implemented the new revenue recognition standard, which
did not have a material impact on operating revenues. Compared with
the first quarter of 2017, the Partnership's first quarter of 2018
results were unfavorably impacted primarily by contract
restructuring and market conditions related to the Partnership's
storage and PAL services.
Capital Program
Growth capital expenditures were $86.7
million and maintenance capital expenditures were
$24.2 million for the three months
ended March 31, 2018.
Conference Call
The Partnership has scheduled a live webcast and conference call
for April 30, 2018, 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 Conference
ID to access the call is 4269513.
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 as an approximation of net operating revenues generated
by the Partnership, that when realized in cash, will be available
to be distributed 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.
Tax Notification
This release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b). Brokers and nominees should
treat 100% of Boardwalk's distributions to foreign investors as
being attributable to income that is effectively connected with a
United States trade or business.
Accordingly, Boardwalk's distributions to foreign investors are
subject to federal income tax withholding at the highest applicable
tax rate.
About Boardwalk
Boardwalk Pipeline Partners, LP (NYSE: BWP) is a midstream
master limited partnership that primarily transports and stores
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 March 31,
|
|
2018
|
|
2017
|
Operating
Revenues:
|
|
|
|
|
|
Transportation
|
$
|
298.5
|
|
|
$
|
313.3
|
|
Storage, parking and
lending
|
|
25.1
|
|
|
|
28.8
|
|
Other
|
|
11.8
|
|
|
|
24.9
|
|
Total operating
revenues
|
|
335.4
|
|
|
|
367.0
|
|
Operating Costs and
Expenses:
|
|
|
|
|
|
Fuel and
transportation
|
|
4.4
|
|
|
|
19.2
|
|
Operation and
maintenance
|
|
46.4
|
|
|
|
40.4
|
|
Administrative and
general
|
|
32.1
|
|
|
|
35.1
|
|
Depreciation and
amortization
|
|
82.9
|
|
|
|
80.6
|
|
Gain on sale of
assets
|
|
(0.4)
|
|
|
|
—
|
|
Taxes other than
income taxes
|
|
29.3
|
|
|
|
27.4
|
|
Total operating costs
and expenses
|
|
194.7
|
|
|
|
202.7
|
|
Operating
income
|
|
140.7
|
|
|
|
164.3
|
|
Other Deductions
(Income):
|
|
|
|
|
|
Interest
expense
|
|
44.1
|
|
|
|
46.2
|
|
Interest
income
|
|
—
|
|
|
|
(0.1)
|
|
Miscellaneous other
income, net
|
|
(0.8)
|
|
|
|
(1.3)
|
|
Total other
deductions
|
|
43.3
|
|
|
|
44.8
|
|
Income before income
taxes
|
|
97.4
|
|
|
|
119.5
|
|
Income
taxes
|
|
0.2
|
|
|
|
0.2
|
|
Net income
|
$
|
97.2
|
|
|
$
|
119.3
|
|
Net Income per
Unit:
|
|
|
|
|
|
Net income per common
unit
|
$
|
0.38
|
|
|
$
|
0.47
|
|
Weighted-average
number of common units outstanding
|
|
250.3
|
|
|
|
250.3
|
|
Cash distribution
declared and paid to common units per common unit
|
$
|
0.10
|
|
|
$
|
0.10
|
|
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 March 31,
|
|
2018
|
|
2017
|
Net income
|
$
|
97.2
|
|
|
$
|
119.3
|
|
Income
taxes
|
0.2
|
|
|
0.2
|
|
Depreciation and
amortization
|
82.9
|
|
|
80.6
|
|
Interest
expense
|
44.1
|
|
|
46.2
|
|
Interest
income
|
—
|
|
|
(0.1)
|
|
EBITDA
|
224.4
|
|
|
246.2
|
|
Less:
|
|
|
|
Cash paid for
interest, net of capitalized interest (1)
|
40.2
|
|
|
44.7
|
|
Maintenance capital
expenditures
|
24.2
|
|
|
24.6
|
|
Other(2)
|
0.1
|
|
|
0.8
|
|
Distributable Cash
Flow
|
$
|
159.9
|
|
|
$
|
176.1
|
|
|
|
(1)
|
The three months
ended March 31, 2017, includes $1.5 million of payments related to
the settlement of interest rate derivatives.
|
|
|
(2)
|
Includes other
non-cash items, such as the net gain on sale of operating assets
and the related proceeds and 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 March 31, 2018, (in millions, except per unit
data):
|
Total
|
|
Common Units
|
|
General
Partner and
IDRs
|
Net income
|
$
|
97.2
|
|
|
|
|
|
|
|
Declared
distribution
|
|
25.5
|
|
|
$
|
25.0
|
|
|
$
|
0.5
|
|
Assumed allocation of
undistributed net income
|
|
71.7
|
|
|
|
70.3
|
|
|
|
1.4
|
|
Assumed allocation of
net income attributable to limited partner unitholders and general
partner
|
$
|
97.2
|
|
|
$
|
95.3
|
|
|
$
|
1.9
|
|
Weighted-average
units outstanding
|
|
|
|
|
250.3
|
|
|
|
|
Net income per
unit
|
|
|
|
$
|
0.38
|
|
|
|
|
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 March 31, 2017, (in millions, except per unit data):
|
Total
|
|
Common Units
|
|
General
Partner and
IDRs
|
Net income
|
$
|
119.3
|
|
|
|
|
|
|
|
Declared
distribution
|
|
25.5
|
|
|
$
|
25.0
|
|
|
$
|
0.5
|
|
Assumed allocation of
undistributed net income
|
|
93.8
|
|
|
|
91.9
|
|
|
|
1.9
|
|
Assumed allocation of
net income attributable to limited partner unitholders and general
partner
|
$
|
119.3
|
|
|
$
|
116.9
|
|
|
$
|
2.4
|
|
Weighted-average
units outstanding
|
|
|
|
|
250.3
|
|
|
|
|
Net income per
unit
|
|
|
|
$
|
0.47
|
|
|
|
|
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
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SOURCE Boardwalk Pipeline Partners, LP