BWP
$17.44
Boardwalk Pipeline Partners LP
$.09
.52%
Earnings Details
1st Quarter March 2017
Monday, May 01, 2017 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 2017 earnings of $0.47 per share on revenue of $367.0 million. The consensus earnings estimate was $0.42 per share on revenue of $359.3 million. Revenue grew 6.4% on a year-over-year basis.

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
$0.47
Earnings Whisper
-
Consensus Estimate
$0.42
Reported Revenue
$367.0 Mil
Revenue Estimate
$359.3 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Boardwalk Announces First Quarter 2017 Results And Quarterly Distribution Of $0.10 Per Unit

Boardwalk Pipeline Partners, LP, (BWP) announced today that it has declared a quarterly cash distribution per common unit of $0.10 ($0.40 annualized) payable on May 18, 2017, to unitholders of record as of May 11, 2017.

The Partnership also announced its results for the first quarter ended March 31, 2017, which included the following items:

Operating revenues of $367.0 million, a 6% increase from $345.0 million in the comparable 2016 period. Operating revenues, less fuel and transportation expense, were $347.8 million, a 7% increase from $324.7 million in the comparable 2016 period;

Net income of $119.3 million, an 18% increase from $101.0 million in the comparable 2016 period;

Earnings before interest, taxes, depreciation and amortization (EBITDA) of $246.2 million, an 11% increase from $222.7 million in the comparable 2016 period; and

Distributable cash flow of $176.1 million, a 10% increase from $160.1 million in the comparable 2016 period.

Compared with the first quarter of 2016, the Partnership’s operating revenues in the first quarter of 2017 were favorably impacted by recently completed growth projects and an increase in the Partnership’s parking and lending and storage revenues from improved market conditions.

Capital Program

Growth capital expenditures were $108.9 million and maintenance capital expenditures were $24.6 million for the three months ended March 31, 2017.

Conference Call

The Partnership has scheduled a conference call for May 1, 2017, 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 5389383.

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 (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,
2017
2016
Operating Revenues:
Transportation
$
318.6
$
305.9
Parking and lending
5.4
4.1
Storage
23.4
21.0
Other
19.6
14.0
Total operating revenues
367.0
345.0
Operating Costs and Expenses:
Fuel and transportation
19.2
20.3
Operation and maintenance
40.4
43.4
Administrative and general
34.6
34.7
Depreciation and amortization
80.6
79.0
Taxes other than income taxes
27.4
26.0
Total operating costs and expenses
202.2
203.4
Operating income
164.8
141.6
Other Deductions (Income):
Interest expense
46.2
42.6
Interest income
(0.1)
(0.1)
Miscellaneous other income
(0.8)
(2.1)
Total other deductions
45.3
40.4
Income before income taxes
119.5
101.2
Income taxes
0.2
0.2
Net income
$
119.3
$
101.0
Net Income per Unit:
Net income per common unit
$
0.47
$
0.40
Weighted-average number of common units outstanding
250.3
250.3
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,
2017
2016
Net income
$
119.3
$
101.0
Income taxes
0.2
0.2
Depreciation and amortization
80.6
79.0
Interest expense
46.2
42.6
Interest income
(0.1)
(0.1)
EBITDA
246.2
222.7
Less:
Cash paid for interest, net of capitalized interest (1) 44.7
46.0
Maintenance capital expenditures
24.6
14.6
Other(2)
0.8
2.0
Distributable Cash Flow
$
176.1
$
160.1

(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 asset impairments, 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, 2017, (in millions, except per unit data):

Total
Common
General Partner
Units
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 $ 119.3
$
116.9
$
2.4
partner unitholders and general partner
Weighted-average units outstanding
250.3
Net income per unit
$
0.47

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, 2016, (in millions, except per unit data):

Total
Common
General Partner
Units
and IDRs
Net income
$ 101.0
Declared distribution
25.5
$
25.0
$
0.5
Assumed allocation of undistributed net income
75.5
74.0
1.5
Assumed allocation of net income attributable to limited $ 101.0
$
99.0
$
2.0
partner unitholders and general partner
Weighted-average units outstanding
250.3
Net income per unit
$
0.40

INVESTOR CONTACTS: Molly Ladd Whitaker, 866-913-2122Director of Investor Relations and Corporate Communicationsir@bwpmlp.com

or

Jamie Buskill, 713-479-8082Senior VP, Chief Financial and Administrative Officer and Treasurer

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SOURCE Boardwalk Pipeline Partners, LP

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