Midstream service provider Boardwalk Pipeline Partners, LP has announced its results for the first quarter (ended March 31 2014).
Q1 2014 highlights
- Operating revenues totalled US$ 356.9 million, a 9% increase from US$ 328.5 million in the comparable 2013 period.
- Net income attributable to controlling interests stood at US$ 110.2 million, a 9% increase from US$ 101.4 million in Q1 2013.
- Adjusted earnings before interest, taxes, depreciation and amortisation (adjusted EBITDA) rose by 6% to US$ 220.4 million from US$ 208.7 million in the corresponding quarter in 2013.
- Distributable cash flow was US$ 161.8 million, a 4% increase from US$ 154.9 million in the comparable 2013 period.
- The company additionally declared a quarterly cash distribution per common unit of US$ 0.1 (US$ 0.4 annualised) payable on 15 May 2014, to unitholders of record as of 8 May 2014.
The company’s results were positively impacted by favourable revenues associated with the cold winter conditions and the recent completion of growth projects in Q1 2014. These were partially offset by lower firm transportation revenues due to contract expirations and renewals at lower rates and a charge recognised in Q1 2014 related to the Bluegrass Pipeline Project.
The company has been engaged with The Williams Companies, Inc. in the development process for the Bluegrass Project. The open season for capacity on the pipeline ended in Q1 2014 and although discussions with potential customers continued throughout the first quarter, the company has not obtained sufficient firm customer commitments. As a result the previously capitalised costs incurred for the project were expensed, resulting in a decrease to net income attributable to controlling interests of US$ 10 million in Q1 2014.
Growth capital expenditures were US$ 50.1 million and maintenance capital expenditures were US$ 16 million for the quarter ended 31 March 2014.
Adapted from press release by Rosalie Starling