Boardwalk announces 4Q14 results

Boardwalk Pipeline Partners, LP, has declared a quarterly cash distribution per common unit of US$0.10 (US$0.40 annualised) payable on 26 February, 2015, to unitholders of record as of 19 February, 2015.

The Partnership also announced its results for the fourth quarter and year ended 31 December, 2014, which included the following items:

• Operating revenues of US$304.6 million for the quarter and US$1233.8 million for the year ended 31 December, 2014, a 3% decrease and a 2% increase from US$312.9 million and US$1205.6 million in the comparable 2013 periods.
• Net income attributable to controlling interests of US$36.8 million for the quarter and US$233.6 million for the year ended 31 December, 2014, an 89% increase and an 8% decrease from US$19.5 million and US$253.7 million in the comparable 2013 periods.
• Adjusted earnings before interest, taxes, depreciation and amortisation (adjusted EBITDA) of US$158.7 million for the quarter and US$687.6 million for the year ended 31 December, 2014, a 22% increase and a slight decrease from US$129.6 million and US$688.7 million in the comparable 2013 periods.
• Distributable cash flow of US$106.7 million for the quarter and US$449.4 million for the year ended 31 December, 2014, a 23% and 20% decrease from US$138.9 million and US$558.6 million in the comparable 2013 periods.

Compared with the fourth quarter of 2013, the Partnership's operating revenues, net of fuel and transportation expenses, were impacted by the effects of continued unfavourable market conditions on its storage and parking and lending revenues. Excluding the effects of asset impairment charges primarily from a goodwill impairment charge recognised in 2013, Adjusted EBITDA was also impacted by higher operating expenses primarily from increased maintenance spending, acquisition costs related to the acquisition of the Evangeline pipeline system as well as employee-related costs.

Operating results for the full year were impacted by the factors discussed above, colder winter weather experienced in the first half of 2014 and a US$10 million charge to net income attributable to controlling interests related to the Bluegrass project. The 2013 period was favourably impacted by a gain on the sale of operating assets of US$29.5 million, which generated US$60.7 million of distributable cash flow. Distributable cash flow for 2014 was impacted by higher maintenance capital expenditures as compared with 2013 and the purchase of storage base gas for the Partnership's pipeline systems.

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/11022015/boardwalk-announces-4q14-results/