BWP
$10.62
Boardwalk Pipeline Partners LP
($.35)
(3.19%)
Earnings Details
1st Quarter March 2018
Monday, April 30, 2018 6:00:00 AM
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Summary

Boardwalk Pipeline Partners LP (BWP) Recent Earnings

Boardwalk Pipeline Partners LP (BWP) reported 1st Quarter March 2018 earnings of $0.38 per share on revenue of $335.4 million. The consensus earnings estimate was $0.39 per share on revenue of $348.3 million. Revenue fell 8.6% compared to the same quarter a year ago.

Boardwalk Pipeline Partners LP operates in the midstream portion of the natural gas. The Company provides transportation, storage, gathering and processing services natural gas and NGL industry.

Results
Reported Earnings
$0.38
Earnings Whisper
-
Consensus Estimate
$0.39
Reported Revenue
$335.4 Mil
Revenue Estimate
$348.3 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Boardwalk Announces First Quarter 2018 Results And Quarterly Distribution Of $0.10 Per Unit

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

Boardwalk Pipeline Partners logo. (PRNewsFoto/Boardwalk Pipeline Partners, LP)

 

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SOURCE Boardwalk Pipeline Partners, LP