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

HOUSTON, May 4, 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 May 21, 2015, to unitholders of record as of May 14, 2015.

The Partnership also announced its results for the first quarter ended March 31, 2015, which included the following items:

    --  Operating revenues of $329.7 million, an 8% decrease from $356.9 million
        in the comparable 2014 period;
    --  Net income attributable to controlling interests of $77.7 million, a 29%
        decrease from $110.2 million in the comparable 2014 period;
    --  Earnings before interest, taxes, depreciation and amortization (EBITDA)
        of $204.6 million, a 7% decrease from $220.4 million in the comparable
        2014 period; and
    --  Distributable cash flow of $132.3 million, an 18% decrease from $161.8
        million in the comparable 2014 period.

Compared with the first quarter of 2014, the Partnership's transportation and storage revenues were negatively impacted by the relatively normal 2015 winter season compared to the unusually cold and sustained winter of 2014. The 2014 period results also included an impairment charge related to the terminated Bluegrass Project.

Capital Program

Growth capital expenditures were $44.2 million and maintenance capital expenditures were $18.0 million for the quarter ended March 31, 2015.

Conference Call

The Partnership has scheduled a conference call for May 4, 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 21218946.

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 .


                                  BOARDWALK PIPELINE PARTNERS, LP

                            CONDENSED CONSOLIDATED STATEMENTS OF INCOME

                                (Millions, except per unit amounts)

                                             (Unaudited)


                                                      For the
                                               Three Months Ended
                                                   March 31,
                                                   ---------

                                               2015                    2014
                                               ----                    ----

    Operating Revenues:

    Transportation                                      $289.6                       $304.3

    Parking and lending                                  2.8                          9.2

    Storage                                             19.3                         28.8

    Other                                               18.0                         14.6
                                                        ----                         ----

    Total operating
     revenues                                          329.7                        356.9
                                                       -----                        -----

    Operating Costs and
     Expenses:

    Fuel and transportation                             27.0                         33.0

    Operation and
     maintenance                                        42.4                         42.7

    Administrative and
     general                                            30.6                         26.8

    Depreciation and
     amortization                                       81.6                         69.2

    Asset impairment                                     0.1                          7.2

    Net gain on sale of
     operating assets                             -                          (0.4)

    Taxes other than income
     taxes                                              25.2                         25.8
                                                        ----                         ----

    Total operating costs
     and expenses                                      206.9                        204.3
                                                       -----                        -----

    Operating income                                   122.8                        152.6
                                                       -----                        -----

    Other Deductions
     (Income):

    Interest expense                                    45.2                         40.9

    Interest income                                    (0.1)                       (0.1)

    Equity losses in
     unconsolidated
     affiliates                                   -                           86.1

    Miscellaneous other
     income                                            (0.2)                       (0.1)
                                                        ----                         ----

    Total other deductions                              44.9                        126.8
                                                        ----                        -----

    Income before income
     taxes                                              77.9                         25.8

    Income taxes                                         0.2                          0.2
                                                         ---                          ---

    Net income                                          77.7                         25.6

    Net loss attributable
     to noncontrolling
     interests                                    -                         (84.6)
                                                ---                          -----

    Net income
     attributable
     to
     controlling
     interests                                           $77.7                       $110.2
                                                         =====                       ======

    Net Income per Unit:

    Net income
     per unit                                            $0.31                        $0.44
                                                         =====                        =====

    Weighted-average
     number of units
     outstanding                                       244.3                        243.3

    Cash
     distribution
     declared and
     paid to
     common units                                        $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,
                                             ---------

                                       2015                 2014
                                       ----                 ----

    Net income                                   $77.7                    $25.6

    Net loss attributable to
     noncontrolling interests             -                      (84.6)
                                        ---                       -----

    Net income attributable to
     controlling interests             77.7                        110.2

    Income taxes                        0.2                          0.2

    Depreciation and amortization      81.6                         69.2

    Interest expense                   45.2                         40.9

    Interest income                   (0.1)                       (0.1)
                                       ----                         ----

     EBITDA                           204.6                        220.4

    Less:

    Cash paid for interest, net
     of capitalized interest           54.2                         52.6

    Maintenance capital
     expenditures                      18.0                         16.0

    Add:

    Bluegrass/Moss Lake project
     impairment,                          -                        10.0

       net of noncontrolling interest

    Other (1)                         (0.1)                           -

    Distributable Cash Flow                     $132.3                   $161.8
                                                ======                   ======

(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 March 31, 2015, (in millions, except per unit data):



                                Total       Common  General

                                                    Partner
                                             Units
                                                   and IDRs
                                                   --------

    Net income                        $77.7

    Declared distribution              25.5                  $25.0 $0.5
                                       ----

    Assumed allocation of
     undistributed net income          52.2                   51.1  1.1
                                       ----                   ----  ---

    Assumed allocation of net
     income attributable to
     limited                          $77.7                  $76.1 $1.6
        partner unitholders and
         general partner


    Weighted-average units
     outstanding                                       244.3

    Net income per unit                                $0.31

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, 2014, (in millions, except per unit data):


                                 Total        Common  General

                                              Units   Partner

                                                     and IDRs
                                                     --------

    Net income                          $25.6

    Less: Net loss
     attributable to
     noncontrolling interests          (84.6)
                                        -----

    Net income attributable
     to controlling interests           110.2

    Declared distribution                24.8                   $24.3 $0.5
                                         ----

    Assumed allocation of
     undistributed net income            85.4                    83.7  1.7

    Assumed allocation of net
     income attributable to
     limited                           $110.2                  $108.0 $2.2
         partner unitholders and
          general partner


    Weighted-average units
     outstanding                                         243.3

    Net income per unit                                  $0.44

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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SOURCE: Boardwalk Pipeline Partners, LP

Ҵý

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

PR Newswire

HOUSTON, May 4, 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 May 21, 2015, to unitholders of record as of May 14, 2015.

The Partnership also announced its results for the first quarter ended March31, 2015, which included the following items:

  • Operating revenues of $329.7 million, an 8% decrease from $356.9 million in the comparable 2014 period;
  • Net income attributable to controlling interests of $77.7 million, a 29% decrease from $110.2 million in the comparable 2014 period;
  • Earnings before interest, taxes, depreciation and amortization (EBITDA) of $204.6 million, a 7% decrease from $220.4 million in the comparable 2014 period; and
  • Distributable cash flow of $132.3 million, an 18% decrease from $161.8 million in the comparable 2014 period.

Compared with the first quarter of 2014, the Partnership's transportation and storage revenues were negatively impacted by the relatively normal 2015 winter season compared to the unusually cold and sustained winter of 2014. The 2014 period results also included an impairment charge related to the terminated Bluegrass Project.

Capital Program

Growth capital expenditures were $44.2 million and maintenance capital expenditures were $18.0 million for the quarter ended March31, 2015.

Conference Call

The Partnership has scheduled a conference call for May 4, 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 . 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 21218946.

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 .

BOARDWALK PIPELINE PARTNERS, LP

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Millions, except per unit amounts)

(Բܻ徱ٱ)



For the
Three Months Ended
March 31,


2015


2014

Operating Revenues:






Transportation

$

289.6



$

304.3


Parking and lending


2.8




9.2


Storage


19.3




28.8


Other


18.0




14.6


Total operating revenues


329.7




356.9


Operating Costs and Expenses:






Fuel and transportation


27.0




33.0


Operation and maintenance


42.4




42.7


Administrative and general


30.6




26.8


Depreciation and amortization


81.6




69.2


Asset impairment


0.1




7.2


Net gain on sale of operating assets





(0.4)


Taxes other than income taxes


25.2




25.8


Total operating costs and expenses


206.9




204.3


Operating income


122.8




152.6


Other Deductions (Income):






Interest expense


45.2




40.9


Interest income


(0.1)




(0.1)


Equity losses in unconsolidated affiliates





86.1


Miscellaneous other income


(0.2)




(0.1)


Total other deductions


44.9




126.8


Income before income taxes


77.9




25.8


Income taxes


0.2




0.2


Net income


77.7




25.6


Net loss attributable to noncontrolling interests





(84.6)


Net income attributable to controlling interests

$

77.7



$

110.2


Net Income per Unit:






Net income per unit

$

0.31



$

0.44


Weighted-average number of units outstanding


244.3




243.3


Cash distribution declared and paid to common units

$

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,


2015


2014

Net income

$

77.7



$

25.6


Net loss attributable to noncontrolling interests



(84.6)


Net income attributable to controlling interests

77.7



110.2


Income taxes

0.2



0.2


Depreciation and amortization

81.6



69.2


Interest expense

45.2



40.9


Interest income

(0.1)



(0.1)


EBITDA

204.6



220.4


Less:




Cash paid for interest, net of capitalized interest

54.2



52.6


Maintenance capital expenditures

18.0



16.0


Add:




Bluegrass/Moss Lake project impairment,

net of noncontrolling interest



10.0


Other (1)

(0.1)




Distributable Cash Flow

$

132.3



$

161.8











(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 March31, 2015, (in millions, except per unit data):



Total


Common

Units


General

Partner

and IDRs

Net income

$

77.7








Declared distribution


25.5



$

25.0



$

0.5


Assumed allocation of undistributed net income


52.2




51.1




1.1


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

$

77.7



$

76.1



$

1.6


Weighted-average units outstanding





244.3





Net income per unit




$

0.31





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 March31, 2014, (in millions, except per unit data):


Total


Common

Units


General

Partner

and IDRs

Net income

$

25.6








Less: Net loss attributable to noncontrolling interests


(84.6)








Net income attributable to controlling interests


110.2








Declared distribution


24.8



$

24.3



$

0.5


Assumed allocation of undistributed net income


85.4




83.7




1.7


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

$

110.2



$

108.0



$

2.2


Weighted-average units outstanding





243.3





Net income per unit




$

0.44





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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